The Coming Battery Bonanza

Source: James Dines of The Dines Letter for Streetwise Reports   06/26/2017

James Dines, author of The Dines Letter, discusses the importance of graphite in the manufacture of lithium-ion batteries and highlights one graphite company he expects to have an edge.

Lithium Batteries for Autos and Home Storage

Someday, as sneaky years whisper past, batteries will be seen to have been a crucial wave of the investing future. Uses for lithium ion batteries (LIB) are expanding and will be the main technology for mobility and stationary storage for many years to come. LIB’s have been improved over the last 25 years, but it might take that long for any new battery design to pass through the development process to ensure they are safe for consumer use. Electrification of vehicles and the storage of green energy is driving massive growth in LIB cell manufacturing, forecast to increase 170% from today’s current capacity of 103 GwH to 278 GwH by 2021 to meet the demands of electrification of automotive vehicles. Also, lithium batteries will be used for stationary storage in houses; they would charge with wind or sunlight present, to be consumed later. Many will buy rooftop solar along with batteries. The 2015 world market value of lithium ion batteries was $18 billion and is forecast to double to $36 billion by 2025—which we personally believe will be much larger.

Auto sales in the US and Europe exceed 30 million and forecasts are that 20% of cars sold will be electric vehicles by 2025. This would require over 350 GwH produced a year by battery. By 2030 the annual sales of electric vehicles could be around 21 million, with an estimated 70-80-million electric vehicles on the road worldwide. Incidentally, China’s goal is to have 5-million electric cars by 2020, with each electric vehicle also needing around three times more copper than a regular car. China expects to need 50,000 tons more copper annually for these electric vehicles. Copper’s recent prices are now flat, and are at a critical juncture related to its trendlines.

There are over a half-dozen battery Gigafactories being considered in the US, and a further half-dozen in Europe, far in excess of current capacity. Tesla has built a plant with a 35 GwH capacity, intending to grow it to 150 GwH, while Northvolt is planning a gigaplant in Sweden. This will not be enough to match demand in Europe and America, so a further 50-100 GwH will be required on both sides of the Atlantic.

Stationary energy storage the likes of which are already taking shape by way of Tesla’s Powerwall, and Mercedes’ recent announcement of partnership with Vivint Solar, will provide home owners with the option to capture and store their solar energy and use it when wanted. These storage banks will be between 2.5 to 20 KwH and be incorporated into solar collection panels or shingles on roofs. This would create even larger demand for their components, as homeowner’s transition to some level of independence from the electric grid. Utility providers will also push for this transformation as it would reduce their aging infrastructure costs significantly by managing peak loads with in-home storage. Comparable industrial uses for solar storage are almost limitless.

The Dines Letter has long expected raw materials’ demand from the growing battery market to be significant. Key materials are lithium, graphite, cobalt, nickel, copper, silicon and aluminium. Lithium, cobalt and graphite are commodities that will come under especially sustained buying pressure. The majority is aware of lithium and cobalt, but many overlook very high-purity graphite, mistakenly regarding it as ordinary carbon—but which is crucial for the security of long-lasting power for distance travel in electric vehicles. Graphite will surely always be a part of the lithium ion battery. How much will be synthetic versus natural is the real debate.

At present the average dollar value of graphite in a Tesla 85Kw battery pack is around US$1,250 (50kg) broken down into $1,200 synthetic (40kg) and $50 natural (10kg) graphite. The cost of synthetic graphite is about $30k per ton. Natural graphite’s cost is closer to $10k per ton. The ability to reduce the raw-material cost in a Tesla battery pack is perhaps $500 per vehicle. It might not seem like a big savings, but when considering the almost 50-million new vehicles a year at a targeted 20% EV uptake, it equates to around $5 billion. Also noteworthy is that the same Tesla battery pack has $66 of lithium, $851 of cobalt and $146 of nickel (NMC Battery).

Graphite’s demand for 100 GwH will be (round numbers) 600,000 tons, with approximately 400,000 tons of synthetic and 200,000 tons of high-purity natural graphite. In a drive to reduce these input costs, more and more of this graphite will be “natural flake graphite,” if only because it is cheaper.

Who might supply this graphite? No surprise, China controls battery-grade graphite, so automotive cell manufacturing is currently exclusive to Asia. For years, China has been quietly cornering the market for one element after another, over The Dines Letter’s bitter objections. We have not made a dent in our government’s awakening, but we will continue to firmly state the truth that not everything will always be available on the free market. China is rapaciously seeking a piratical, pernicious monopoly of elements, not controlled by US anti-monopoly laws, as are handicapped Americans. America is ruled by unsuspecting financial innocents in this regard.

As “The Original Rare Earth Bug,” we fought tooth and nail to block China, but unfortunately we did not get enough support, and now China controls over 90% of the world’s Rare Earths. Most politicians have no idea what those elements are used for, but might be shocked to discover we can’t build a rocket or missile without them, which might be inconvenient during a war with China. Indeed, even as we go to press, Rare Earth producer Molycorp, a recommendation The Dines Letter sold at an 89% profit before it went bankrupt, is being auctioned off. Who is among the bidders? China! Again relentlessly taking over the market for elements, buying every such asset available, while America dozes.

As procurement of these commodities become tighter, buyers would respond, as usual, by throwing money at the problem. But what if China nonetheless refuses to sell? Declaring these elements not for sale would be a bitter pill for America to swallow. Who would be blamed? At least we—and hopefully our subscribers—did our best to warn about a historic change in free-enterprise capitalism.

A key to the bull market in graphite is that many now depend on China for use in automotive batteries. China cut off Japan’s supply of Rare Earths when a conflict arose over the Senkaku boat collision on 7 Sep 2010, which would have closed down Japan’s automobile industry. Tesla, for example, would have to close down its Gigafactory without China’s graphite, and is thus likewise at its mercy. Furthermore, Europe also needs its own graphite, independent of China, and Leading Edge Materials(LEM), is an often overlooked source, dependably within the EU. According to an EU study, as of 2016, Norway is Europe’s next distant source, but accounting for only 9% of current supply. We will return to LEM below.

There are many other junior resource exploration companies with such carbon assets: in America, Mozambique, Sweden, Australia, Madagascar, and more. The majority of these junior resource companies usually have only an undeveloped property, with a small number of drill holes; they would need substantial investment capital and expertise to produce even a low-purity graphite, let alone the high-purity graphite required for the electric-vehicle battery market.

Now is the time to begin long-term accumulation of graphite stocks, to hold for the next few years, before the tidal wave of newly-awakened buyers arrive.

WHY I LIKE LEADING EDGE MATERIALS (LEM) in the graphite space?

LEM’s key physical asset is the full-scale, fully functional and fully permitted Woxna graphite mine and processing facility in Sweden. LEM aims to use the existing Swedish production capacity and large resource to produce and sell a high-value-added graphite product to LIB cell manufacturers. The potential for LEM is enormous as it could grow production capacity to meet the demands of this disruptive, emerging industry, and is already progressing well down the qualification process. The plant was an actual producer, though not producing now, and will be able to produce 10,000 tons per annum of flotation-grade graphite concentrate (95%C). Having both a mine and processing facility is a key differentiator compared with nearly all other public graphite companies.

Syrah Resources, an Australian graphite miner, claims to be very close to being operational but this is yet to be proven. All other graphite companies in the public space need in the order of US$50-$200 million to build a mine and plant to match what LEM already has. This does not take into consideration the additional work others must do in order to demonstrate they could actually produce battery-grade material (99.999%C) from the flotation concentrate. In a market currently supplied virtually exclusively by China, battery makers will surely seek to diversify their sources of supply.

LEM has chosen not to produce and sell floatation concentrate into the currently small European market at a marginal or zero profit. Instead the plant is run on an as-needed basis to produce floatation concentrates in sufficient quantities to use in high-purity, battery-grade, materials-test work. LEM right now has thousands of kilograms of concentrate to work with, which enables them to test larger-format batteries that satisfy the qualification expectations of future cell manufacturers. It is doubtful any other graphite company has this large amount of graphite concentrate material available to produce large numbers of large format-test cells. A junior miner, with only small amounts of drill-core samples, or a modest bulk sample, would not have enough material to demonstrate its graphite ability for cell manufacturers to trust. LEM recently completed the manufacturing of a series of battery cells similar to those used in the Tesla electric vehicle. LEM has used spherical natural high-purity graphite from its Woxna mine to produce “18650 format lithium ion cells.” These cells are the same format used by Panasonic in the Tesla battery pack. Tesla uses 7,104 of these 18650 cells in one battery pack. LEM has made sufficient anode material out of its high-purity graphite to make a further 20 of these 18650 cells for further testing by potential customers. Modest capital would be required to add on high-purity processing capabilities. We are not aware of any other graphite company to have this capacity. LEM is well on its way to be the first to supply new Gigafactories with this highly-sought after commodity. There are no Gigafactory-size battery cell manufacturers in Europe to date. There are some cell manufacturers that do make cells on a small scale, but they are not commercially viable. Total graphite consumption in Europe is less than one hundred tons of graphite annually. They only use synthetic graphite at present – more expensive and not environmentally friendly – but might change to natural flake when a big manufacturer leads the way. LEM is working with future cell manufacturers in Europe to provide a solution where more natural flake can be utilized at a lower cost and greener footprint. LEM is perhaps the only company actively pursuing this goal.

Our long-term recommendation of LEM is evidenced by our having owned some for many years. Put a small amount in the back of portfolios, or as a gift to a loved one, and forget about it for a few years. We can’t recall ever having sold any, and don’t plan to do so anywhere near these low prices.

James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of highly regarded books, including “Goldbug!,” in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines’ highly successful investment strategies have been praised by Barron’s, Financial Times, Forbes, Moneyline, and The New York Times, among others.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) James Dines: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Leading Edge Materials, Syrah Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: LEM:TSX.V; LEMIF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17523

Myopic Metals and Miner Miasma

Source: Michael J. Ballanger for The Gold Report   06/26/2017

“Generally accepted narrative” can get in the way of making investment decisions, says precious metals expert Michael Ballanger.

In recent day and weeks, I have slowly moved to the starboard side of the “Vessel of Public Opinion” where most seasoned veterans (aka “old guys”) usually wind up; that is to say that I am now officially “cynical” when it comes to the world of investing. Residing in cynicism usually has a few distinct advantages with one being the uncanny ability to have your “bullsh*t meter” on at all times while one glaring disadvantage is that you miss opportunities you might have taken when you were young(er) and eternally optimistic.

By example, I draw your attention to October 16, 1962, back to a time when the world stood on pins and needles as the two main nuclear superpowers came perilously close to a military engagement. Known as the Cuban Missile Crisis, for those of you who are too young or too ill-read or educated to know this, it was a twelve-day period that felt like months as President Kennedy stared across the green felt of the thermonuclear poker table at Soviet Premier Khrushchev and awaited that “blink” that would and could avert what many thought was going to be “The Big One.” I was nine years old and about to graduate from “House League” hockey in Malton, Ontario, to the “MTHL” when while driving to one of the bi-weekly games all over the Great Toronto Area I asked my father: “Dad, if the Americans and the Russians go to war, will that be the end of the world?”

The response I got back from him was one which I have remembered and carried all through my life and is one which illustrates a bias of hubris carried by our species throughout history. “Son,” he said, “first of all, the Yanks and the Russkis are too afraid to go to war because they know that there will be no winner and the secondly, even if there IS a war, the “WORLD” is never going to end. Mankind might get wiped off the face of the planet and a lot of animal and plant life with it but the planet will continue to adapt and adjust and it will still be alive long after man has departed.”

Kennedy and Khrushchev

That answer dovetails beautifully into my newly found cynicism because of its ability to bypass the “GAN” (“generally accepted narrative”) and addresses the biases that in today’s day and age have become engrained into one’s thinking and resultant behaviors. To wander through history believing that mankind is the ultimate determinant of life on earth is about has scientifically egotistical as it gets. It presumes that no matter what actions are taken to prevent global self-annihilation, mankind alone carries the power to alter the course.

Applying this to the current investment climate in 2017, I can imagine a kinder, gentler space before government interventions, before central bank purchases, before the Working Group on Capital Markets or the London Gold Pool or even the South Seas Bubble. I can picture a time before supercomputers and algorithms or Bitcoin when wealth was measured in farmland and horses and gold where governments were absent from the movement of goods and services and where capital gravitated to businesses deemed most efficient by virtue of free cash flow and profitability.

Like the U.S. Constitution or the Canadian BNA Act of 1867, it is the raw simplicity of the document that allows it to stand apart from tampering, insulated from the self-interests of those that would change its content. Similarly, this is where I find myself here in the summer of 2017. Instead of a freckle-faced kid asking about the likelihood of thermonuclear annihilation in 1962, there is a new question arising which is “Dad, what happens when the Federal Reserve and the European Central Bank and the Bank of Japan move to “normalize” their balance sheets?” Would it be that I could answer in the frame and tone of the man that answered MY question 55 years ago, the answer would be this:

“Son, first, the global central banks are NOT going to normalize their balance sheets because they know that to do so would mean sharply higher interest rates and the bubbles they have created since 1980 would all simultaneously POP and, second, to “normalize” their balance sheet means SELLING ALL OF THE SECURITIES THEY BOUGHT BETWEEN 2009 and TODAY and that is impossible for one reason—THERE IS NO ONE TO SELL THEM TO.”

The problem with making investment decisions using the GAN as gospel is that unless it fits within your pre-ordained investment thesis, you are anchored in a trap of misinformation and faulty assumptions. To wit, the Western investment community has now gotten to the stage where gold and silver have been completely invalidated as safe haven asset classes, having been replaced by stocks and ETFs and more recently, cryptocurrencies like Bitcoin. Through intervention and message management by way of a conflicted financial media and compromised regulatory regimes, gold and silver in the minds and actions of today’s Millennial money managers are no longer seen as legitimate stores of value because the GAN has enforced that message. However, just as the world is not going to “end” as the result of a thermonuclear war, gold and silver are not going to “end” as a result of a historically short period of dislocation of their roles as stores of value. Determining the series of events that will inevitably and conclusively reassert the safe haven status of our global society’s only true form of real money remains illusive but the certainty of outcome is, at least for me, not up for debate.

So when I listen to all of these young snapperheads on CNBC Power Lunch or Fast Break discussing Facebook or Tesla or Amazon and have targets set for the S&P 10, 15, 35 percent higher than today’s levels with nary a mention of gold and silver as alternative portfolio options, I am reminded of the days of October 16-28, 1962, and all I can do is think to myself how the GAN back then was so completely wrong both by way of the logic of building bomb shelters and in the logic of assuming one would want to actually live in a post-nuclear-war world. Analogously, to assume that the global central banks are going to “normalize” is a faulty assumption; to assume that stocks will climb “forever” because the central banks “have our backs” is too a faulty assumption; and to assume that gold and silver will never again assume their 5,000-year roles as “real money” is the most faulty of all GAN-led assumptions.

With that in mind, the sentiment out there is really in the tank and that, rather than “turning to the charts!” as the vast majority of armchair “analysts” would say, I prefer to ignore the charts and instead focus on sentiment and the RSI. As I pointed out in the last missive entitled “One Massive, Global, Serial Bubble“, the near-term price performance has recently seen higher highs and higher lows for gold and for the Gold Miners as represented by the GDXJ (VanEck Vectors Junior Gold Miners ETF) and its 3x’s-leveraged baby brother, the JNUG (Direxion Daily Junior Gold Miners Bull 3X ETF). As of 1:16 p.m. here at the end of the week, I have added 75% positions in the USLV (VelocityShares 3X Long Silver ETN) averaging $11.93 and 50% of the JNUG averaging $19.01. I intend to move to 100% positions in the USLV by the close and will probably move to a 50% margin position by early next week while simply topping up the JNUG quite possibly by the bell as well. (As I tweeted this morning shortly after announcing these moves “Amazing what four double Espressos and three ounces of Wild Turkey will make you do at 9:30 in the morning.”)

JNUG chart

It took me the better part of five days to lure Fido out from under the tool shed after going off on one of my classic rampages where things get thrown, people get screamed at, television sets get assaulted and feelings get SERIOUSLY hurt. Sadly, I have been going to counseling for the better part of four years where my therapist is constantly prodding and pushing and pounding on me to “handle my emotions” such that I don’t “traumatize those around me,” so I nod and I smile and I generally embrace the idea of “modified behaviors” when all I really want to do is grab some banker by the throat and choke him.

Now, call me “unstable” or call me “out of line” or call me “seriously-bat-dangling-from-the-roof-of-the-cave” crazy, but writing about these gold market interventions such as I did in early June is actually an extremely taxing endeavor. Since the Great Financial Bailout of 2009, where U.S. taxpayers received hydrofluoric acid enemas while bankers rejoiced at the survival of their completely corrupt and compromised political and financial system, we the investing public are fed a debilitating diet of mainstream media slop with the “everything is awesome” meme a constant serving.

As a true devotee of SOUND MONEY PRINCIPLES and a lifelong believer in the value of gold and silver as generational stores of value, to have a graduate of some liberal arts university tell me to keep my emotions “in check” while criminal interventionalists reach into my children’s trust funds and steal their money is, shall we say, somewhat “disingenuous.” More to the point, that bullion bank traders are allowed and, in fact, encouraged to interfere in the precious metals markets is no different than allowing dogs like mine to roam through inner-city parks, taking large, violent chunks of flesh out of anything alive and moving. Offended? Good. Try watching bullion bank traders taking similarly large chunks of after-tax dollars from the accounts of millions of precious metals investors with not even the slightest of protest. Now, Fido is once again asleep at my feet after a two-day, $20/ounce rally in gold once again cementing the 100% inverse-correlation between bankster shenanigans and canine adoration.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts and images courtesy of Michael Ballanger.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17525

Thank You, GDXJ: Ultimate Rebalance Victim Trade

Source: Lior Gantz for The Gold Report   06/26/2017

Lior Gantz, editor of Wealth Research Group, discusses the GDXJ rebalance and its significance for one company.

The research for this moment started well before last week.

It goes back to May 3, when I obtained the estimated number of shares to be liquidated by the GDXJ ETF (VanEck Vectors Junior Gold Miners ETF) on a per-company basis by June 16.

What this scramble for junior mining shares really did was allow for a “takeover window” of 18–24 months going forward.

The ETF has basically liquidated out of juniors and bought mid-tier and large-cap miners instead. In essence, it breathed life and liquidity into the major producers at the expense of small-cap companies, and I absolutely love it, for this sector always comes alive and attracts funds with merger activity at higher levels, and that’s what is about to be unleashed.

Yesterday, it dawned on me that my calculations have been too conservative regarding one company in particular, and I want to show how this mining legend opened my eyes to the intrinsic value of my top suggestion for this merger mania: First Mining Finance Corp. (TSX:FF & US:FFMGF).

For one of the most serially successful mining businessman of our era—Keith Neumeyer, the founder of the company—resource investing is about generating revenues. Don’t get it mistaken: Keith is all about big, fat, and consistent cash flows and thick, monstrous margins.

First Mining Finance was Keith’s brainchild, and when we spoke last night, he summarized it this way: “Lior, just think of scooping up 25 brand new Boeing 747s in a country where there are currently no airports, so you’re getting them really cheap, knowing full well that they’re about to build 25 new runways and will need your planes. We bought proven properties for distressed prices during the bear years, and we now hold all the cards and have all the options because our properties are becoming more valuable as the gold price rises.”

The reason why I’m quickly accumulating shares right now is because the last financing, in which all the members of the management team participated, was done at CA$0.80. I want to lock in my position for less.

This is what will happen to unlock the intrinsic value and potential of their assets and generate revenues for the company:

  1. Joint ventures with cashed-up majors.
  2. Royalty deals.
  3. Streaming structures (the best business model ever).
  4. Spin-outs of properties for a premium and earn-in contracts.

When the company signs these value-creating set-ups, shares will explode fast and hard, and you know it.

Project Valuations Vs. FF's Market Capitalization

The baffling anomaly Wealth Research Group found in the form of a pocket of “free money” is the fact that Springpole, the company’s premier Ontario, Canada, project containing millions of gold and silver inferred and indicated ounces in the ground, is worth more by itself than the total price you pay for the full package—the company’s 20+ projects and their $20M+ cash position.

This is an extreme value moment created by a one-time event that will never repeat: the GDXJ rebalance.

First Mining's Valuation vs. Gold Developers

Even when you compare it to a slew of its peer companies, you can’t shake the fact that all of their properties were acquired in the safest and most mining-friendly jurisdictions in North and Central America, with infrastructures in place, at incredibly attractive prices during the bear market years, and you’ve got Keith Neumeyer making the calls—an added value that puts the company on a much higher platform.

You want to own gold in the ground, but not only that.

What you really want is to own it now, without depleting the resource base until gold prices are much higher, at which point this NI 43-101 gold portfolio will be the envy of thousands of other gold juniors.

NI 43-101 Gold Resource Portfolio

Right now, you can buy First Mining Finance, pay only for Springpole and get 24 additional high-quality assets for free, along with a treasury of CA$23M and Keith Neumeyer at the helm.

This is served to you on a gold platter.

The company has just recently graduated to the TSX, making it much more liquid, stable and available for institutional buyers and released new assay results from one of its tier-1 projects.

Lior Gantz, an editor of Wealth Research Group, has built and runs numerous successful businesses and has traveled to over 30 countries in the past decade in pursuit of thrills and opportunities, gaining valuable knowledge and experience. He is an advocate of meticulous risk management, balanced asset allocation and proper position sizing. As a deep-value investor, Gantz loves researching businesses that are off the radar and completely unknown to most financial publications.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Lior Gantz: I, or members of my immediate household or family, own shares of the following companies referred to in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies referred to in this article: First Mining Finance has a marketing agreement with Wealth Research Group.. My company has a financial relationship with the following companies referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts and images courtesy of the author

( Companies Mentioned: FF:TSX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17524

King’s Wealth: Gold Stocks Playbook Part 2

Source: Tom Beck for The Gold Report   06/25/2017

This is Part 2 of the King’s Wealth: The Complete Gold and Silver Stocks Playbook, by Tom Beck, founder of Portfolio Wealth Global, that will continue over the next seven weeks.

In order to become a successful mining investor, you must understand the playbook.

Today will boil down the various stages in the lifecycle of a typical mining company.

There’s no logic in doing something that isn’t battle-tested—there’s only sense in sticking with what brings repeated and predictable results.

Portfolio Wealth Global always looks at the preliminary vision of the dealmakers to see the vision and plan of execution.

Be very cautious of under-deliverers and those who over-promise.

When we speak with management teams, the first question we ask is, “What’s your plan, and who are the executors of it?”

Here are the various typical stages all conventional companies go through:

The Discovery Curve

1. Generative exploration is a desktop study with minimal field work.

Field mapping, prospecting, and sampling programs are conducted on promising targets.

What to watch for at this point:
Most important are the caliber and quality of the geologists involved—you want professionals, who are committed to a conservative point of view and the facts, as opposed to dreamers.

Government connections are important to verify if the data available is trustworthy as well.

2. Primary exploration involves drilling out the target location to delineate likely zones of mineralization. Drill cuttings will be sent to the laboratory to assay for geochemical analysis. The main aim is to broadly define the limits of the mineral deposit.

Portfolio Wealth Global will be releasing our No. 1 exploration play this summer.

3. Once a mineral deposit is identified, evaluation begins with a scoping study and ends with a feasibility study, on which a final investment decision is usually made.

The evaluation stage is lengthy.

Prefeasibility and feasibility studies are comprehensive studies that consider the technical and economic viability of a mining project, including the mine design, production schedule, operating costs and expenses.

What to watch for at this point:
This stage tires and bores most investors.

Sell your position on high volume days during this part of the cycle.

4. Development of the project begins after the regulatory permits have been obtained. This involves the construction of the infrastructure required for a fully operational mine. Important components include site access and services, mining production, and crushing facilities and ore handling facilities.

What to watch for at this point:
Similar to the evaluation phase. Be a buyer on dips here, when everyone else throws in the towel. I’ve done that numerous times (even on the same stock) and doubled my money in months during the 2009-2011 market roars.

Make sure the project manager is an expert. So many things can make this project go over the budget—have you ever seen a builder on a residential property finish the work on time and within the budget? Rarely!

5. Production processes are different from case to case, but they typically involve controlled blasting, hauling, crushing, and processing of the mineral ore. The final product is then transported.

What to watch for at this point:
Here, what matters are the bottom line margins, and I also want to make sure my profits are used to either pay out a dividend or acquire more “juicy” projects, because current ones are depleting.

I also want the mine manager to be the absolute best.

Next week, I will show you the three unconventional mining business models.

Tom Beck is founder of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he’s officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers’ net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he’s invested in over a dozen countries, including real estate.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Statements and opinions expressed are the opinions of Tom Beck and not of Streetwise Reports or its officers. Tom Beck is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Tom Beck was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts provided by Portfolio Wealth Global

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17522

Jack Chan’s Weekly Precious Metals Update

Source: Jack Chan for The Gold Report   06/24/2017

Technical analyst Jack Chan charts the latest moves in the gold and silver markets, and believes the ongoing consolidation may end soon.

Our proprietary cycle indicator is down.

chanhui6-24
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

chanhui26-24
The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.

chanspec6-24
Both speculation and OI are supportive for overall higher prices.

chanspdr6-24
The trend in gold is up.

chanhui36-24
Prices bounced firmly off the lower support, and the multimonth consolidation may be ending soon.

chansilver6-24
Silver is on a long-term buy signal.

chanslv6-24
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

chansilverspec6-24
COT data is supportive for overall higher prices.

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation or editing so the author could speak independently about the sector. The author was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) Jack Chan: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model, which provides us the signals and set-ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion. We also provide coverage to the major indexes and oil sector.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

Charts courtesy of Jack Chan

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17521

Good News Pouring In for a British Columbia Miner

Source: The Gold Report   06/22/2017

Once again analysts are talking about this British Columbia mining company that just announced its first gold pour.

In a June 21 press release, Pretium Resources Inc. (PVG:TSX; PVG:NYSE) announced its 100% owned Brucejack Mine had its first gold pour and “that the flotation and gravity circuits are now operational. In addition, gold-silver flotation concentrate is being produced and bagged, with initial shipments scheduled.”

In a June 21 report, BMO Capital’s Andrew Kaip followed up on his May 1 report by explaining that “the focus for PVG now turns towards the ramp-up to commercial production. We currently model commercial production at the end of Q3/17, but note that following the announcement, PVG could declare commercial production earlier than expected.”

Kaip concluded by pointing out that “saleable shipments, even if for lower-grade material, will provide early-stage cash flow for the company. With Q2/17 results upcoming, financial reporting will provide an indication on how PVG is tracking towards its budget.” He rates Pretium as an Outperform with a target price of $19.50.

Eric Zaunscherb, an analyst with Canaccord Genuity, stated in a June 21 report that the gold pour “is a major milestone for the company as it has been working diligently to bring the project into commercial production, a declaration expected in the back half of this year.” Zaunscherb points out that in his May 1 report he highlighted “management’s view that the production of gold concentrate and doré in the coming weeks was on track; this current announcement is in line with expectations.”

Zaunscherb concludes “that the share-price dip of late is likely a good buying opportunity “and that “Pretium currently trades at a normalized P/NAV (5%) of 0.61x, a premium to covered development companies at 0.52x. In our opinion the premium is justified due to the project’s scalability (exploration upside), low sovereign risk and the potential appeal as an M&A target.” He maintains a Speculative Buy rating with a target price of $17.50.

In a May 17 interview with Gold Report, Louis James, editor of the International Speculator, highlighted that Pretium “is on the verge of pouring its first bar of gold” and pointed out that regardless of critics worried about Pretium’s methods that the “bulk sample produced something like 60% more gold than was expected based on the model.” He summarized “that the company was not being risky or cavalier; in fact, it was being conservative” and thought that “we’re about to find out if I’m right.”

Pretium is currently trading at around $9.39.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pretium Resources Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: PVG:TSX; PVG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17520

Junior Miner Cracks a Strategic Tough Nut in British Columbia

Source: The Gold Report   06/21/2017

The acquisition of the Toughnut Project in British Columbia would provide strategic access to the Silver King Shear Zone adjacent to the explorer’s existing properties.

Prize Mining Corp. (PRZ:TSX.V), a junior miner that holds the Kena-Daylight project in southeastern British Columbia, just announced that it has signed an option agreement to acquire a 100% interest in the Toughnut property, which is contiguous to the west side of Daylight. The company is taking a district-wide approach to the area.

According to Prize Mining Corp., “the 1,010 hectare Toughnut claims strategically cover over 3.5km strike length of the Silver King shear including most of the mineralized land between Prize’s main Starlight-Daylight block and Prize’s Sand block to the northwest.”

Feisal Somji, president and CEO of Prize Mining stated, “This is a strategic acquisition for Prize Mining as we now control what we believe to be the most significant part of the mineralized Silver King shear zone. This parcel of land will play an important role in this summer’s exploration program as we prepare to drill this fall.”

Under the terms of the agreement, Prize will pay CA$150,000, issue 250,000 common shares and spend CA$750,000 on exploration over the next five years. There is a 2% net smelter royalty (NSR), of which Prize has the right to purchase one half for CA$2 million up to the date of commencement of commercial production.

Prize Mining reported that the Toughnut Showing, “which includes old pits, shafts and trenches, had grab samples from Pacific Sentinel in 1989 that returned 6.64 g/t, 8.65 g/t, and 32.8 g/t Au with associated silver ranging between 33 and 175 g/t Ag. Follow up diamond drilling by Valeterra Resource in 2010 returned a best intercept of 6.9 g/t Au and 143 g/t Ag over 2.0m, and 4.05 g/t Au over 8.0m in hole VTN10-005.”

The company also stated that the Gold Eagle Showing, which is located 500m north of the Toughnut Showing, “was drilled by US Borax in 1988 who reportedly returned a strongly anomalous intercept of 90 g/t Au over 1.53m (RC hole S88-43) (AR 19503). In 2010 Valterra Resources also drilled the property with its best results being 4.02 g/t Au and 9.52 g/t Ag over 24.33m (including 4.0m of 14.47 g/t Au and 3.46 g/t Ag). The zone has been tested to 73m and remains open and along strike and down dip.”

Prize Mining earlier reported that it had engaged TerraLogic Exploration to manage the 2017 Daylight exploration program. The company noted that the Daylight Property is a “contiguous land package located in the northwest corner of Prize’s approximately 8,000 hectare Kena Project. The Daylight Property hosts four historical producing gold mines: Starlight, Victoria, Great Eastern and Daylight. A detailed desktop compilation carried out by TerraLogic has identified and prioritized four highly prospective gold bearing zones based on previous field work including geochemistry, geophysics, prospecting, surface sampling, and limited diamond drilling.”

Veteran investor Chen Lin discussed Prize Mining in an article in The Gold Report on May 25, prior to the announcement of the option agreement: “I had a discussion with Prize Mining CEO Feisal Somji yesterday. If you recall, Mr. Somji built and sold Rio Alto during the recent downturn of the market. PRZ is his new baby, and it is a new kid in town for junior investors. PRZ has consolidated the district of Daylight in British Columbia for the first time. The company is going to drill the high-grade targets this summer. According to the historical mining results, the chance of high-grade discoveries (30-100 grams/ton gold over multiple meters) is high. Going forward, Mr. Somji plans to do ‘bulk sampling’ of the high-grade material starting in 2018, and send the samples to the Kinross mill nearby, which is running out of ore. This way he will be able to generate good cash flow to support building a mine there.”

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Prize Mining Corp., a company mentioned in this article.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17519