Jack Chan’s Weekly Precious Metals Update

chanhui2-_1-23

Source: Streetwise Reports 01/23/2018

Technical analyst Jack Chan charts the latest movements in the gold and silver markets.

Our proprietary cycle indicator is up.

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.

chanhui2-_1-23
The gold sector is on a short-term buy signal. Short-term signals can last for days and weeks, and are more suitable for traders.

chancon_1-23

Speculation is in bull market values.

changoldbug_1-23
The pullback this week appears to be in the process of an inverted head & shoulder bottom.

chansilver_1-23
Silver is on a long-term buy signal.

chanslv_1-23
SLV is on a short-term buy signal, and short-term signals can last for days to weeks, more suitable for traders.

chansilvercon_1-23
Speculative longs are bouncing back sharply from the lowest level in years.

Summary
The precious metals sector is on major buy signal. The cycle is up, suggesting that the multimonth correction is now complete. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.

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

Coverage Initiated on ‘Clear Standout Within the Zinc Space’

Source: Streetwise Reports 01/23/2018

Kevin MacKenzie, an analyst with Canaccord Genuity, explained the rationale for adding this junior exploration company to his coverage universe.

In a Jan. 15 research note, analyst Kevin MacKenzie reported that Canaccord Genuity initiated coverage on Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) with a Speculative Buy rating and a CA$1 per share price target. (The stock is currently trading at around CA$0.70 per share.) Tinka Resources is advancing its 100%-owned Ayawilca polymetallic zinc project in central Peru.

The investment thesis for Tinka, MacKenzie explained, includes four major, favorable characteristics of the Ayawilca project:

1) It has a “sizable resource base,” MacKenzie wrote. The resource there, as of Tinka’s most recent (late 2017) estimate, was 42.7 million tons (42.7 Mt) grading 7.3% zinc equivalent (7.3% Zn eq), or 6% zinc. This reflects a 127% increase in tonnage over the 2016 resource estimate.

2) Its resource remains “open for expansion on multiple fronts,” said MacKenzie, and Tinka continues with exploration work. The company plans 15,000 meters (15,000m) of drilling in 2018. The recent zone 3 finding of 7.9% zinc and lead over 10.3m could significantly increase the resource base size. “We note that the Ayawilca project hosts multiple high-grade showings, which presents the potential for the discovery of additional centers of mineralization,” the analyst added.

3) It boasts “attractive” economics, noted MacKenzie, who detailed two of four potential project case models: base and upside B.

The base case yields an after-tax net present value 10% (NPV10%) of CA$220 million (CA$220M), an internal rate of return (IRR) of 23% and a 23-year mine life. This assumes a long-term zinc price of US$1.10 per pound and a resource base of 52 Mt grading 6.59% Zn eq plus 40% exploration upside for further resource expansion. It assumes a throughput of 6.5 thousand tons per day (6.5 Ktpd) and an initial capex of US$300M.

The upside case B highlights an after-tax NPV10% of CA$380M and an IRR of 26%. It is comprised of the base case but also incorporates processing of the tin resource (13Mt grading 0.65% tin equivalent), greater mill throughput (10 Ktpd) and an additional 30% in exploration. “We highlight Pucarumi and Yanapizgo as prospective targets within this context,” MacKenzie said.

4) Ayawilca stands out as a potential acquisition target in the zinc exploration space, MacKenzie indicated. This is due to the quality of the project’s assets, specifically size and grade, and its “ongoing discovery momentum.” As well, its location is ideal, in a well-developed mining jurisdiction in central Peru’s polymetallic belt, where numerous midtier to senior mining firms operate and several recent zinc mergers and acquisitions have taken place. “We view Tinka as potentially an attractive acquisition for such local operators as Nexa, Volcan and Trevali,” he said.

Upcoming catalysts for Ayawilca are release of 1) further drill results from the 2017-2018 exploration drill program, 2) a maiden preliminary economic assessment (PEA), scheduled for Q2/18 and 3) the metallurgical results for the zinc and tin zones, slated for H1/18. “We view the release of the Ayawilca PEA as a potential rerating/derisking point for Tinka as the company continues to focus on expanding the project’s overall resource base,” MacKenzie purported.

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) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household 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: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.

Disclosures from Canaccord Genuity, Tinka Resources Ltd., Jan. 15, 2018

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research.

Required Company-Specific Disclosures (as of date of this publication):

Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Tinka Resources Ltd. in the next three months.

An analyst has visited the material operations of Tinka Resources Ltd. No payment was received for the related travel costs.

Up-to-date disclosures may be obtained at this website.

( Companies Mentioned: TK:TSX.V; TLD:FSE; TKRFF:OTCPK,
)

KER Politics – Mon 22 Jan, 2018

By Big Al Vice President Spence’s speech in Israel

CUFI Talking Points
Vice President Mike Pence’s
historic Knesset Speech

Vice President Mike Pence made a historic speech at the Knesset this morning. Speaking to Prime Minister Netanyahu and Israel’s lawmakers, the Vice President honored Israel’s upcoming 70th anniversary and 3,000 years of Jewish history in Jerusalem and the Holy Land.

This was the first time in 10 years that a senior US Administration official addressed the Knesset since President George W. Bush spoke there to mark Israel’s 60th anniversary in 2008. The Vice President boldly spoke of the spiritual and political ties between Israel and the United States, and the common bond between our two countries created by people who treasured freedom and the faith of Abraham. He left no daylight between Israel and the United States, a marked change from the speeches we have heard from US officials during the last administration.

We were excited to hear President Donald Trump’s speech in December when he recognized Jerusalem as Israel’s official capital, and announced that the administration would begin making plans to move the US embassy from Tel Aviv to Jerusalem. Today, the Vice President reaffirmed the decision of the United States to recognize Jerusalem, and he announced that the Embassy would complete its move by the end of 2019.

The Vice President spoke of his hope that we have entered a new era of the peace process, and said the President believes it is possible to achieve peace between the Palestinians and Israel with the help of Arab leaders. Instead of chastising Israel for the lack of peace, as the previous President and his administration did many times, Vice President Pence affirmed Israel’s efforts to achieve peace and provide freedom for people of all faiths.

In addition, the Vice President strongly condemned the disastrous Iran Deal and stated that President Trump has decided that he will no longer certify this bad deal. Vice President Pence stated that, unless the deal is fixed, the US will withdraw and resume sanctions against the regime in Tehran. He promised that the US will not allow Iran to attain a nuclear weapon, under any circumstances. And he offered the hand of friendship to Iran’s people, telling them the US is not their enemy, and that when the day comes that the people of Iran throw off the oppression of their regime the United States will stand with them.

This historic speech by Vice President Pence marks a dramatic new day in American foreign policy. It also shows that CUFI has a perfect opportunity to seize the moment and work with Congress and the Trump Administration to achieve political victories that will protect Israel for decades to come.

…read more

Source:: The Korelin Economics Report

The post KER Politics – Mon 22 Jan, 2018 appeared first on Junior Mining Analyst.

Aurubis buys Codelco’s shares in Deutsche Giessdraht

By analyst

By Reuters

Aurubis AG, Europe’s biggest copper smelter, said on Monday it had agreed to take 100 per cent control of German copper wire and rod maker Deutsche Giessdraht by acquiring the 40 per cent stake held by Chile’s Codelco.

Aurubis had held 60 per cent of Deutsche Giessdraht and Codelco held the remainder through German unit Codelco Kupferhandel GmbH.

The agreement will require the approval of German competition authorities, Aurubis said. The parties have agreed not to release the transaction price.

Deutsche Giessdraht produces about 240,000 tonnes of continuous cast wire rod copper rod annually and has about 110 employees at its plant in Emmerich.

Aurubis announced a strategy in March 2017 which it said could include takeovers and expansion into other metals.

“Part of our new strategy is an expansion of our copper product capacity and this transaction fits into this,” an Aurubis spokeswoman said.

CEO Juergen Schachler said in December that Aurubis is placing a major focus on organic growth in its new corporate strategy but is still open to acquisitions.

Aurubis’ last acquisition was Luvata’s rolled copper operations in 2011.

Reporting by Michael Hogan; editing by Jason Neely.

The post Aurubis buys Codelco’s shares in Deutsche Giessdraht appeared first on MINING.com.

…read more

Source:: Infomine

The post Aurubis buys Codelco’s shares in Deutsche Giessdraht appeared first on Junior Mining Analyst.

Teck trades lower following mine explosion

By analyst

By Valentina Ruiz Leotaud

Shares in Teck Resources (TSX: TCK.A, TCK.B) (NYSE:TCK) dropped on Monday by 1.08% as reactions poured in following an explosion at its Elkview coal mine, located near Sparwood, British Columbia.

What the company dubbed as “a significant pressure event at the dryer” took place Wednesday afternoon in an area where coal is dried using a natural gas heating system. Interviewed by the Times Colonist, the president of United Steelworkers Local 9346, Alex Hanson, said that workers reported seeing a fireball being shot through vents in the sides and roof of the building.

However, in a media statement, Teck said no casualties were registered. “There were no adverse health or environmental impacts. Work is ongoing to assess the extent of the damage and the potential impact on production.”

But, according to The Free Press, workers want more detailed information. The media outlet cites Steve Kallies, Vice President and Health and Safety Chair for USW Local 9346, who said that the union has partnered with third-party experts and Teck management in order to determine the root cause of the accident. “Our union is deeply concerned for the health and safety of all the workers at our worksite,” he told the weekly newspaper.

In the meantime, Elkview is operating at a reduced production rate using unaffected facilities. “It is too soon to estimate the extent of any downtime or loss of production as a result of the event,” Teck’s brief reads.

The incident at the mine site, CIBC World Markets analyst Oscar Cabrera told the Times Colonist, “could cut Teck’s metallurgical coal production this year by 13 per cent to about 23.7 million tonnes, while mining and logistics costs will likely rise by about $1 per tonne and capital spending might increase by $100 million.”

Elkview is one of the five steelmaking coal operations owned by the Vancouver-based company in B.C.’s Elk Valley.

The post Teck trades lower following mine explosion appeared first on MINING.com.

…read more

Source:: Infomine

The post Teck trades lower following mine explosion appeared first on Junior Mining Analyst.

Irish diamond miner to expand in Finland

By analyst

By Valentina Ruiz Leotaud

Finland’s mining authority has granted Ireland’s Karelian Diamond Resources (AIM: KDR) a four-year exploration claim in the Kaavi region, located in the eastern part of the country. This license provides the holder with an exclusive right to apply for a mining permit.

The 28.84-hectare property is close to Karelian’s Lahtojoki mining operation, which is en route to becoming the first diamond mine in Europe, outside Russia. The new property covers an area near where kimberlite boulders were discovered last year. Such discovery, said the company Chairman Richard Conroy in a press release, suggest the presence of an undiscovered Kimberlite source.

“The most likely explanation for the source of this boulder is that it is derived from an undiscovered kimberlite up ice from the initial discovery site. Previous work on the mantle-derived indicator mineral compositions from the boulder material indicates a similar Archean diamond-bearing mantle has been sampled by this kimberlite,” the miner explained.

Karelian is in dire need of positive results. According to The Irish Times, losses for the Dublin-based firm in the year ended in May 2017 added up to approximately $504,000.

The post Irish diamond miner to expand in Finland appeared first on MINING.com.

…read more

Source:: Infomine

The post Irish diamond miner to expand in Finland appeared first on Junior Mining Analyst.

PJX wants to buy another gold mine in B.C.

By analyst

By Valentina Ruiz Leotaud

Toronto-based PJX Resources announced it has acquired an option to earn 100% interest in the Gold Shear property, located 29 km southwest of Cranbrook, British Columbia.

According to a corporate press release, the property hosts the high-grade David gold occurrence and is adjacent to PJX’s Eddy property.

Historical data from the provincial Ministry of Energy Mines and Petroleum revealed that gold was first discovered in 1990 when an exposure of gold-mineralized quartz veining within a shear zone was chip sampled across 40 centimetres and assayed up to 144 grams per tonne gold.

Since there isn’t a recent resource estimate for this property, the miner quotes historical information from a 1991 report in the ministry’s archives as a reference of what might be found at Gold Shear. “Inferred resources for this zone are 96,000 tonnes grading 13.08 grams per tonne gold (uncut) or 7.11 grams per tonne gold (cut).”

Taking into account the fact that the place has not been explored since 1996, John Keating, President and CEO of PJX Resources, said that his company believes that untapped resources are significant. The strike length of the shear, the shallow depth of historical drilling, the good gold grades and apparent continuity of the David occurrence are the pieces of evidence that support such belief.

“Our plan is to compile all available historical data to help identify structural and other controls for gold mineralization and then drill to expand the gold zone or zones on strike and at depth,” Keating said.

The post PJX wants to buy another gold mine in B.C. appeared first on MINING.com.

…read more

Source:: Infomine

The post PJX wants to buy another gold mine in B.C. appeared first on Junior Mining Analyst.

Company Updates From Management – Mon 22 Jan, 2018

By Cory Anaconda Mining – PEA Update and Share Rollback

Anaconda Mining came out with two significant news releases last week. First news out was an updated PEA at the Goldboro Gold Project followed by a share consolidation of 4:1. Dustin Angelo, President and CEO of Anaconda joins me to recap the PEA and the key numbers that he found most significant. We also touch on the share consolidation and what investors can expect in terms of news flow.

I will be chatting again with the Anaconda team for a high level overview of the strategy. If you have any further questions please comment or email me at Fleck@kereport.com.

Click here to visit the Anaconda Mining website.

Download audio file (2018_01_22-Dustin-Angelo-Anaconda-Mining.mp3)

…read more

Source:: The Korelin Economics Report

The post Company Updates From Management – Mon 22 Jan, 2018 appeared first on Junior Mining Analyst.

The Greatest Long-Term Threat to Stocks

By Alexander Green Since it began on March 10, 2009, this has been a bull market of historic proportions.

It is the second-longest running in history. (The longest bull market – from October 11, 1990, to March 24, 2000 – lasted almost 10 years.) This one is fast approaching its ninth birthday.

Since the 2009 low, the S&P 500 is up 379% for a phenomenal 19% average annual return.

Alas, all good things must come to an end – and this bull market will too… eventually.

Some believe high valuations will be the killer. Yet history shows that high ratios of price to sales, earnings or book value rarely cause stocks to roll over.

The Fed’s determination to take interest rates higher is another threat. Indeed, rising rates are what has taken most bulls to the slaughterhouse in past cycles.

(Though optimists rightly point out that the market has already factored in three rate hikes for 2018.)

Yet there is a still greater threat to the long-term health of stocks – one that could lead to the mother of all bear markets. And while everyone is at least vaguely aware of it, few seem adequately concerned about it.

I’m talking about our gargantuan – and growing – federal debt and, in particular, the mind-boggling unfunded liabilities for Social Security, Medicare and Medicaid.

The current gap between the expected cost and the expected revenue for these three programs is $112 trillion – or more than $922,000 per taxpayer.

(For a graphic perspective, click here and take a gander at the red line at the bottom.)

One hundred and twelve trillion dollars is more than the world’s entire annual economic output. Yet we’re talking about the projected shortfall between expected outlays and tax revenues for just three U.S. entitlements.

And the figure is growing by trillions annually.

Many Americans believe the greatest political problem facing us today is radical polarization. The two parties can’t agree on what to have for lunch.

Yet Pulitzer Prize-winning political columnist George Will has an entirely different take, one with which I wholeheartedly agree.

He argues that the real threat isn’t divided ideologies. It’s just the opposite: consensus.

The consensus among representatives of both major parties is that year after year, in good times and bad, Americans should receive substantially more government goods and services than they pay for.

[iu-adbox]

Indeed, I’m convinced that one reason for Donald Trump’s upset victory in the 2016 election is that he ignored the usual conservative rhetoric about limited government, balanced budgets and fiscal responsibility – things Republican candidates love to promise but never deliver – and openly promised to spend more.

More for defense. More for infrastructure. More for veterans. More for police. More for “the wall.”

On top of this, he promised not to change Social Security or Medicare.

Trump also signed a tax bill that – while good for business, the economy and the stock market in the short term – will add a projected $1.5 trillion to the debt over the next decade.

At this point, you might reasonably ask, what’s the big deal about another measly trillion and …read more

Source:: Investment You

The post The Greatest Long-Term Threat to Stocks appeared first on Junior Mining Analyst.

KER Politics – Mon 22 Jan, 2018

By Big Al It appears that now criminals are able to run for political office. Can you believe this?

As if Americans don’t have enough problems dealing with the skewed views of progressives as to how the election of a president works and how that person operates in office – we are now looking forward (sort of) to the fact that a real traitor plans to run for the Senate. And it’s possible the left (read that Democrats) will support that candidacy and the individual might just win.

I can hardly wait to see how they’ll justify that. Then again, I can wait, and the whole scenario disgusts me.

There’s no doubt we live in a world that is changing around us and anyone who tries to hang on to “tradition” is fighting a losing battle. What was right is wrong. What was true is false. What was up is down. It never ends and just gets worse.

Treason used to be something regarded as reprehensible and, in fact, the guilty party was usually quickly dispatched, without too many, if any, formalities. There were no tears and no regrets.

The person, if referred to in history, did not have their life story burnished and changed for posterity. In those days, once a traitor, always a traitor.

It’s different now – case in point, Bradley Manning. Manning is an American soldier, a 21-year-old private first class, who, while serving in Iraq, stole thousands of classified files and leaked them to WikiLeaks and, in turn, to the Russians.

He was found out and charged with espionage, fraud and theft. He pleaded to some charges and faced trial on others, was found guilty and on Aug. 21, 2013, was sentenced to 35 years in prison, forfeiture of pay and a dishonorable discharge.

The end, right? Justice served, right?

Uh, no. Not in today’s world.

While in in midst of all those legalities, Bradley decided to go public with his belief that he was (is) transgender and wanted to have the government pay for his hormone treatments. Long story short, it happened. So now Bradley is no more, and in his place is Chelsea – a 5’2,” blue-eyed blond, female.

She was still in prison and garnering as many headlines as she was able to finesse – when the president at the time, Barack Obama, decided to put his two cents in and gain support from the transgender “community.”

On Jan. 17, 2017, Obama commuted her (his) sentence to time served (seven years) and, with that, Chelsea Manning was released from prison on May 17, 2017. She’s now 30.

So much for espionage.

That garnered a lot of headlines, and one might have thought that Manning would move along with her life and leave us alone.

Uh, no. Not in today’s world.

If you want to find out about her, Google the name. She’s there and described as – are you ready? – “an American activist and politician”! It does take your breath away.

What you also find out is that she has officially declared herself a candidate for the U.S. …read more

Source:: The Korelin Economics Report

The post KER Politics – Mon 22 Jan, 2018 appeared first on Junior Mining Analyst.