Multiweek Correction in Gold and Silver Markets Continues

Chan9-17HUI

Technical analyst Jack Chan charts gold and silver as the multiweek correction continues.

Our proprietary cycle indicator remains down.

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.

chan9-17HUI2
Gold sector is on a short-term sell signal. Short term signals can last for days and weeks, and are more suitable for traders.

chan9-17spec
Speculation remains near the all-time high.

chan9-17silver
Silver is on a long-term buy signal.

chan9-17SLV
SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

Summary
A bull market in gold and silver has been confirmed, but the cycle is down and a multiweek correction is in progress. Caution is advised.

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 interviews 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 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.
4) 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

Charts courtesy of Jack Chan

A Tehcnical Summary of the Past Week in Gold and Silver

chan9-17SLV2

Technical analyst Jack Chan charts the past week’s movements in the gold and silver markets.

GLD: on sell signal.

SLV: on sell signal.

chan9-17GDX
GDX: on sell signal.

chan9-17XGD
XGD.TO: on sell signal.

chan9-17CEF
CEF: on sell signal.

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USD: on buy signal, which is not friendly to the metals.

Summary
Long term—on a major buy signal
Short term—on sell signals
Gold sector cycle—is down

Investors should consider accumulating gold stocks/ETFs at the next cycle bottom as a correction is in progress.

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 interviews 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 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.
4) 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

Charts courtesy of Jack Chan

Deutsche Bank Initiates Coverage of Silver Wheaton

Citing a strong balance sheet and a large portfolio of diverse gold and silver streaming assets worldwide, Deutsche Bank has initiated coverage of Silver Wheaton with a Buy rating.

“We like the overall business model and believe the company is well positioned through the cycle,” research analysts Jorge Beristain and Chris Terry write in a Sept. 9 research report on Silver Wheaton Corp. (SLW:TSX; SLW:NYSE). “Silver Wheaton has a diverse asset base, proven management team and has access to long-term precious metals streams.”

The analysts make note of the company’s large portfolio, which includes 22 precious metals assets and includes streams from San Dimas (Primero Mining [P:TSX; PPP:NYSE]) and Salobo (Vale S.A. [VALE:NYSE]). In addition, the company has “a further 8 development projects in the portfolio.” Silver Wheaton lists the San Dimas, Peñasquito and Salobo mines, among others, as “cornerstone assets.”

“We forecast silver equivalent production of 54.7m oz in 2016 and 57m oz in 2017 which then has the potential to increase in forward years through deals and/or project development with minimal additional overhead,” the report states.

Deutsche Bank also notes that “Silver Wheaton has EBITDA margins of ~70%, long-life assets with potential for exploration upside and the ability to invest counter-cyclically versus traditional miners.”

In addition, the analysts view Silver Wheaton “as much lower risk alternative than mining company equities given the lack of cost movements and the ability to expand the portfolio with minimal additional corporate overhead. Against ETFs, Silver Wheaton offers the ability to share in exploration upside with mining companies and a growing dividend return.”

Commenting on the company’s performance over time, the analysts wrote, “Silver Wheaton has consistently outperformed the silver and gold price and silver equity indices as the company has continued to grow cashflow through the cycle and has completed deals counter-cyclical to the rest of the industry.”

Read what other experts are saying about:

Want to read more Gold Report interviews 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) Tracy Salcedo compiled this article for Streetwise Reports LLC. Tracy Salcedo provides services to Streetwise Reports as an independent contractor. 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: Silver Wheaton Corp. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

Additional Disclosures for this Content

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

The CME Read My Book

Cumulative inflation

Bob Moriarty of 321 Gold discusses the benefits of trading on the gold/silver ratio and gold/platinum spread, and the new contracts the CME is launching next month.

In Nobody Knows Anything I spend some time discussing the silver/gold ratio and the gold/platinum spread. Given an entry at a favorable time, both trades are low risk and high potential with gold and platinum or silver doing nothing more than regressing to the mean.

On September 15th, the CME announced new products coming October 24th including a silver/gold ratio contract and a gold/platinum spread contract. These new contracts will be the lowest cost way to do these trades. As I write, gold has a $286 premium to platinum and it takes 69.3 ounces of silver to buy one ounce of gold. The highest spread between gold and platinum was just after the Brexit vote in late June at $350. The silver/gold ratio hit 84:1 in March. These trades need no brains, only patience.

Chapter 3
Deviation and Regression to the Mean

RELATIONSHIPS EXIST between both similar and dissimilar commodities. The ratio of the number of ounces of silver it takes to buy one ounce of gold varied from about 17:1 in January of 1980 to over 100:1 in early 1991. We view both metals as precious and having some aspects of money. But the ratio changes a lot and that creates an opportunity to profit without needing the ability to predict direction of price movement. You don’t need to speculate on the commodities going up or down, only that they regress to a mean.

And it’s not necessary for commodities to be similar. For some reason sugar and silver seem to move together much of the time. There is no necessity for a logical relationship in order for there to be an actual relationship.

To understand deviation from the mean, we first need some basic understanding of what makes prices change. That’s easy. The answer is inflation. But inflation distorts price information and while eventually everything goes up because of inflation, things go up at different rates because the market doesn’t know at any given time what the correct price is for anything and is constantly testing.

For each pair of commodities that we might seek to profit from there will be a different chart, but basically it’s all about deviation from the mean of inflation and regression to the mean.

Going back over the past 100 years, if we chose to use silver vs. gold as our means of investing for a profit, the ratio has varied from 17:1 to 100:1 but had a mean of 53:1. Do remember that the price of gold was fixed at $20.67 an ounce until Roosevelt took the public off the gold standard in 1933 and revalued gold at $35 in January of 1934. While the price of silver varied between 1934 and 1971, gold remained relatively constant until Nixon took us totally off the gold standard in August of 1971. Since that time both metals have traded freely and have offered numerous opportunities to profit.

Spot Gold vs Spot Silver

There are a number of different ways an investor could have capitalized during the period shown in the chart. The first clear signal was when the silver to gold ratio went above 85, in 1995. Since there are more options now, I’ll cover what the options were then.

Since you get many ounces of silver for each ounce of gold, one alternative for the punter is to sell gold and buy silver at the same time and in about the same dollar value. Twenty years ago pretty much the only choice was the use of commodity contracts. A ratio spread of buying silver/selling gold would have carried far less margin requirement than a naked position in either commodity. I’m going to use big numbers as an example but only because there were fewer options then.

A standard silver contract is 5,000 ounces and a standard gold contract is 100 ounces. On March 2, 1995 gold was $375 an ounce and silver was $4.40. The ratio of silver to gold was thus 85:1. There were also 1,000-ounce silver contracts available, so the thing to do would have been to short 100 ounces of gold and go long either 7,000 or 8,000 ounces of silver. Because of the reduced opportunities to trade various alternatives, you couldn’t match the dollar amounts perfectly.

What is most important to understand about trading on deviation from the mean is that you do not need to make a directional bet. While it was true that silver was cheaper relative to gold, it didn’t and doesn’t necessarily mean that silver was going to go higher. Regression to the mean only means that it should go higher relative to gold. You don’t really care if the metals go up or down, you only care that the relative value changes.

Another simple alternative would have been to just sell gold since it had deviated the most from the mean, and take the money from that to buy silver. That presumes the investor had a stash of gold.

The investor would have needed to stay in the investment for just about three years, for on February 6, 1998 gold went to $299 as silver hit $7.80 for a ratio of 38:1. So the investment above would have showed a profit of $76 an ounce for $7,600 on the gold short and $23,800 for the silver long. Obviously no one picks perfect tops and bottoms but what I’m trying to show is that by investing when ratios deviate from the mean, there can be a lot of profit.

If all the investor had done was to sell three ounces of gold in 1995 for a total of $1,125 and put that money into silver at $4.40, and then reversed the trade in 1998, he would have ended up with six ounces of gold in 1998. If you own gold, silver and platinum, you can continue to increase your total number of ounces at a relatively low risk. It’s all based on historical data, deviation from the mean and regression to the mean.

The trade offered a second entry point in December of 1996. As long as the investor understands that all he is betting on is regression to the mean, this second entry point was nearly as good as the first. Understand that when the spread passes 80 it doesn’t last long and there is no fundamental or technical reason for it to stay above 80. It’s going to regress to the mean and beyond.

There was another buy silver/sell gold signal in mid-2003 that lasted until early 2006. And another buy gold/sell silver signal in 2007 that reversed direction in late 2008.

In 2011 silver shot higher, to almost $50 an ounce. Entry into the buy gold/sell silver at 45 would have been unprofitable for a few months, but sure enough silver went back to a ratio of 84:1 to gold in March of 2016, offering yet another trade.

These trades take years but returns of above 30-35 per cent are consistent and will remain so over the future. No matter what is happening in the economy, there is a relationship between the prices of gold and silver. While they may deviate from the mean, eventually they return to the mean.

We like to believe we can make profitable investments at no cost on our part but it’s simply not so. When you are using deviation from the mean and regression to the mean as a source of signal, you need the basic data to make intelligent decisions. I’ve been on the web for over twenty years in one form or another. The very best source of information that I am aware of for charts showing deviation and regression would be that of sharelynx.com, run by the incredible Nick Laird from Australia.

Nick gives new readers a three-week trial for free. If it gives you what you need, you have a choice of one year for $200 or two years for $360. A single trade would more than pay for your subscription.

Understanding deviation from the mean can be very valuable in other ways than just a single trade. For example I wrote a piece in early March of 2016 in which I pointed out that relative to commodities in general, the gold price was the highest it had been in history. Relative to 5,000 years of record keeping, commodities were cheaper in real terms than they had ever been. Platinum was selling at a $320 discount to gold, also a record low for platinum. Silver was selling at a ratio of 84 ounces for each ounce of gold. That was near the highest it had ever been. Oil had hit the highest ratio to gold it had ever been, at 48 barrels of oil to one ounce of gold. Even during the darkest days of the Great Depression oil was only 40 barrels per ounce. Clearly a few weeks ago we had a significant deviation from the mean.

Those are all signals. In the ten days since I wrote the piece and called gold expensive (in relative terms), platinum gained $45 on the spread, silver improved to an 80:1 ratio, and commodities shot up by 12 per cent. Oil advanced by an incredible 50 per cent in three weeks since its low at $26 a barrel. My point is not that I am so smart; I’m not any smarter than you. But all this information provides signals that will help you make more intelligent decisions about what to do with your money.

If an advisor isn’t going to share your pain, why should you give him any of the gain? It’s your money. The information is easy to find, and while the Internet is not the font of all wisdom, there is an incredible amount of valuable information if you will only learn to think and use the tools available to you.

It’s vital that average investors realize that most of the information available to them on the web is noise. Everything you get from the mainstream media is noise designed to confuse rather than enlighten. And I mean everything. The mainstream media is so far past its sell-by date they should all resign and get real jobs. There is good information on the web but you have to sift out all the garbage. Investing based on the information you get from understanding relationships between commodities is fairly consistent.

If you trade the silver/gold spread, buying gold and selling silver has worked four times in the last twenty years if you use a ratio of 45:1. Buying silver and selling gold has worked five times in the last 20 years if you use a ratio of 80:1 to sell the gold and buy the silver. These are boring trades that you enter and just go to sleep. A trading signal that works every time and comes along every two years or so is not a bad deal. Consistent returns of over 33 per cent add up over time.

Just as a matter of interest, silver has been above 80:1 lately as I write in March of 2016 and there’s a wonderful opportunity to profit. You can buy silver and not need the excuse of manipulation or a massive conspiracy to justify your investment.

For more investment advice that you can use forever, go to Amazon and spend $6.49 for a book other readers call the best book on investing they have ever read.

Bob and Barb Moriarty brought 321gold.com to the Internet almost 14 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 820 missions in Vietnam. He holds 14 international aviation records.

Want to read more Gold Report interviews 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 Bob Moriarty and not of Streetwise Reports or its officers. Bob Moriarty 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. Bob Moriarty was not paid by Streetwise Reports 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 Bob Moriarty

Five Ways to “Crash Proof” Your Portfolio Right Now

Five Ways to “Crash Proof” Your Portfolio Right Now By Justin Spittler The U.S. economy is running out of breath. As you probably know, the U.S. economy has been “recovering” since 2009. The current recovery, now seven years old, is one of the longest in U.S. history. It’s also one of the weakest. Since 2009, the U.S. economy has grown at just 2.1% per year, making this the slowest recovery since World War II. Last quarter, the economy grew at just 1.1%. We won’t know how the economy did during this quarter until late October. But we don’t expect good news, and that’s because signs of a stalling economy are everywhere. • They’re in the job market. The U.S. economy created 29,000 fewer jobs last month than economists expected. • They’re in corporate earnings. Profits for companies in the S&P 500 have been falling since 2014. • They’re even in the price of … Continue reading

Canadian Zeolite Commences Trading in the U.S. Market on the OTCQB

canadianzeolite
September 14, 2016
Vancouver, British Columbia, Canadian Zeolite Corp.
(the “Company”) (TSX.V: CNZ) (FSE: ZEON) is pleased to announce that the Company’s common shares will begin trading on the OTCQB, a U.S. based stock exchange, under the symbol “CNZCF” effective today. The Company’s shares will continue to be traded on the Toronto Venture Exchange under its existing symbol “CNZ”.

OTC Markets Group Inc., located in New York, N.Y., operates the world’s largest electronic inter-dealer quotation system. It offers transparent trading to entrepreneurial and development stage companies that have met a minimum bid price test, are current in their financial reporting and have undergone an annual verification and management certification process. Their standards provide a strong baseline of transparency, as well as the technology and regulation to improve the information and trading experience for investors.

Ray Paquette, CEO stated, “as our business continues to expand, trading in the U.S. is an important next step for the Company’s corporate growth, allowing for greater visibility with U.S. investors and increasing the Company’s opportunities in global capital markets; all of which are in line with the Company’s objective to gain access to a broader investment community, strengthen its financing flexibility, and provide greater liquidity for its shareholders.”

Canadian Zeolite Is a producer of the natural occurring mineral zeolite from its quarry near Princeton, BC, Canada. Zeolite has many “Green Tech” applications and is widely used in multiple cross industry applications ranging from water purification to radioactive waste containment. Zeolite is also used in the areas of odor reduction for municipal composting, zeoponics and zeolitic fertilizers for greenhouse and outdoor growing mediums, animal feed supplement, road salt replacement and waste-water filtration.

On behalf of the Board of Directors

“Ray Paquette”

President & CEO

604.684.3301

www.canadianzeolite.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete contemplated work programs and the timing and amount of expenditures. Canadian Zeolite does not assume the obligation to update any forward-looking statement.

This Undervalued Royalty Company Has Room to Grow

Money manager Adrian Day profiles Osisko Gold Royalties, which has divested itself of its directly held exploration portfolio.

Osisko Gold Royalties Ltd. (OR:TSX 14.93) has decided to divest itself of most of its directly held exploration portfolio, optioning it to newly renamed Osisko Mining (formerly Oban Mining); it will retain rights to earn future royalties. The portfolio came from the acquisition of Virginia, and most of Virginia’s highly regarded exploration team will go with it. (Andre Gaumond, former CEO of Virginia, stays with Osisko Gold).

Osisko Gold Royalties (which we’ll refer to simply as “Osisko”) acquired Virginia primarily for its royalty on the Éléonore Mine, but originally talked of using its exploration projects to generate future royalties. But exploration is not a natural fit for a royalty company, which typically has low risk and low costs as hallmarks.

Renewed focus and lower costs
The move brings certain benefits. Osisko can focus on being a royalty company and likely be rewarded with better valuations; the Virginia exploration projects received very little value inside Osisko. It will reduce overhead for Osisko, making it a leaner royalty company (such as the other major royalty companies). The move rationalizes the exploration projects inside Osisko Mining where they will receive better attention; exploration was never Osisko’s focus. This will likely lead to more work earlier, and therefore—looking ahead—revenue-generating royalties for Osisko sooner.

Osisko is a strong sponsor of Osisko Mining, a 14% holder of the stock. It has also acquired significant stakes in other exploration companies, including Barkerville Gold Mines Ltd. (BGM:TSX.V) (33% owner) and Falco Resources Ltd. (FPC:TSX.V) (16%). With these sponsorships and large stakes, it typically acquires rights to future royalties.

Solid performance and lots of cash
Osisko continues to do well, with the three mines on which it holds royalties performing well; Éléonore’s ramp up is now on track after some surprises in the ore body. It also holds 51 non-producing royalties, including several royalty options, after a buying spree.

With cash of $439 million, Osisko has the second-strongest net cash position of the royalty companies. It is now looking for a major cash-flowing gold or silver asset, and the cash plus a line of credit of over $200 million puts Osisko is in a strong position to achieve this goal, perhaps by the end of the year (though at that size it will face competition from the big boys in the royalty sector).

In sum, Osisko has high-quality Canadian assets, a strong balance sheet, aggressive management, and a unique approach to the royalty business. It is also relatively inexpensive.

Osisko has underperformed, largely because it is a newer, less-diversified company, though it is catching up fast. It is now the cheapest in the sector (<1.4 x book, for example, compared with 2.2 to 3 times for the others); at this price we call it a buy. The stock is now listed on the New York Exchange—same symbol, OR—and although Toronto still has more volume, it is sufficiently liquid in New York for most investors. Osisko Gold Royalties (OR, NY, 11.49) is a strong buy.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”

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

Disclosure:

1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. 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. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Osisko Gold Royalties Ltd. 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. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

( Companies Mentioned: OR:TSX,
)

Drill Results Highlight Expansion of Gold Zone at Balmoral’s Bug Lake

Balmoral Resources has announced a “rapid increase in the width of the Bug South gold deposit,” leading one analyst following the Canadian exploration and development company to increase his target price.

In a research report following the Sept. 7 announcement, Barry Allan of Mackie Research noted that Balmoral Resources Ltd.’s (BAR:TSX; BALMF:OTCQX) drill results “have materially added to the resource potential of Bug Lake, causing us to increase the target price to $1.50 from $1.30 [per share].”

In his Sept. 7 report, Allan called the results from seven holes “excellent,” noting, “drilling continues to highlight good mineral potential” at Bug Lake South.

Also commenting on the Balmoral discovery in a Sept. 7 research report, Philip Ker of PI Financial stated, “Wide intervals of gold mineralization encountered at Bug South adds another near surface deposit and expands the potential across the Martiniere property.”

Ker also noted that “opportunities exist to further grow the mineralized zone with upcoming drill results which are presently pending final assays while mineralization remains open at depth and down plunge.”

Noting that gold is not the only “discovery” the company has made, Allan also commented on the initial resource for Balmoral’s Grasset nickel asset. The resource “lived up to our expectation and represent[s] a new nickel discovery that has achieved an initial critical mass. Importantly, the resource remains open to depth and along strike,” the analyst wrote.

“We are of the opinion BAR represents one of the best exploration companies in Canada,” Allan stated in his report.

According to Balmoral, “Thirty additional holes have now been completed on the Martiniere property with results pending and two drills active. Drilling will continue to focus on the expansion of the Bug South Gold Deposit in the near term.”

“We are impressed with the project developments across Martiniere,” Ker commented in his report, “and highlight that by adding yet another significant gold occurrence, Balmoral now has increasing options and targets to spread [its] efforts across.”

Commenting on his company’s progress in the Balmoral press release, President and CEO Darin Wagner stated, “The rapid expansion of the Bug South deposit and the strengthening of the mineralized system apparent from today’s results are potential game-changers for the Bug Lake South area.”

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC. Tracy Salcedo provides services to Streetwise Reports as an independent contractor. 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: Balmoral Resources Ltd. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

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( Companies Mentioned: BAR:TSX; BALMF:OTCQX,
)

Nemaska Lithium Discovers New Lithium-Bearing Zone at Whabouchi

Nemaska Lithium has expanded the drill program at its Whabouchi lithium project following discovery of a new lithium-bearing zone, leading analyst David Talbot of Dundee Capital Markets to reiterate the investment thesis for Dundee’s top lithium pick.

In its Sept. 6 press release, Nemaska Lithium Inc. (NMX:TSX; NMKEF:OTCQX) announced it had expanded its drill program “from 44 drill holes over 13,700 m to 50 holes over 17,000 m after [encountering] a new lithium bearing zone in the southwestern end of the planned pit area.” The new mineralized zone has been dubbed Doris.

In a Sept. 6 research report, David Talbot of Dundee Capital Markets wrote, “With this new discovery a bonus, Nemaska appears to be well on its way to achieving its three drilling objectives for this fall: 1) upgrade 4.79 MM t of in-pit inferred resources; 2) increase resource confidence between surface and 200m vertical depth; and 3) confirm continuity and potentially extend mineralization down to 500m vertical depth.”

Addressing his assertion that Doris could improve the economics of Nemaska’s project, Talbot wrote, “New shallow lithium mineralization potentially could positively impact the existing Feasibility Study (assays pending).”

In addition, the Doris Zone’s proximity to the existing Whabouchi pit means “it may be close enough to consider incorporating into early open pit production schedules,” according to Talbot.

In addition, the company stated that, thus far, the drill program at Whabouchi has “generally encountered mineralization where expected, further increasing the confidence in the existing block model, which has fundamentally held intact since its initial inception.”

Talbot reiterated Dundee’s Buy rating for Nemaska, with price target of CA$2.30.

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Disclosure:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC. Tracy Salcedo provides services to Streetwise Reports as an independent contractor. 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: Nemaska Lithium Inc. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. 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 families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.

Additional Disclosures for this Content

( Companies Mentioned: NMX:TSX; NMKEF:OTCQX,
)