‘Lean and Mean’ Is the Secret to Junior Mining Equity Success: Thibaut Lepouttre

The Gold Report: In January, you told The Gold Report that the price of gold is driven by market panic and inflation, neither of which looks imminent. If investors can’t expect higher gold prices in the near term, why should they be in this space? Thibaut Lepouttre: I’ve never been a goldbug but I see gold as a form of asset diversification. There’s nothing wrong with having some exposure to precious metals in a portfolio, both in the physical form and in the form of precious metals mining equities. Mining companies are much like any other company. You should find the ones that have free cash flow or have set their sights on positive cash flow, even when the gold price is range bound. It’s up to investors to make sure that they know what they own and understand the financial situation of those companies. TGR: How are you playing … Continue reading

Now Is the Time to Own the Oil & Gas Leaders: Keith Schaefer

The Energy Report: Keith, the first U.S. grassroots refinery in nearly 40 years just began operation in North Dakota. Is the growth in U.S. oil production going to catalyze refinery construction? Keith Schaefer: I’m going to say no. U.S. production has peaked and we’re doing just fine, so I don’t see any great need for more refineries right now. There was talk a couple of years ago, particularly in 2012–2013, that with unbridled shale oil growth we would need more refineries. But the producers have been more disciplined than anybody expected in the last three months, with the rig count declining sharply and then staying down. I think we’re going to see a drop in U.S. production, so I don’t see the need for any new refineries right now. The only thing that could change would be even more demand growth, which we’re seeing because of lower prices. Somebody might … Continue reading

Why Ricardo Carrión and Alberto Arispe Are Optimistic About Mining in Peru

The Gold Report: Canadian and Australian miners have realized a 25–30% premium due to the strong U.S. dollar. How has the U.S. dollar affected Peruvian miners? Ricardo Carrión: Peruvian miners have realized a similar benefit due to currency exchange. This factor has resulted in lower costs for the Peruvian industry. In addition, miners have also benefited from lower prices in oil. But the question is has this cost reduction offset lower metal prices, and the answer is no. Lots of companies are still struggling with current market conditions. TGR: How has the mining industry fared since President Ollanta Humala was elected in 2011? Alberto Arispe: Humala ran in 2011 on a radical, antimarket platform. Presidential elections in Peru use the runoff system, so in order to win a majority in the second round of voting, he had to moderate his tone and make alliances with more moderate parties. He then … Continue reading

The Next Gold Bull Market Starts Before October

The Next Gold Bull Market Starts Before October By Jeff Clark I’m going out on a limb: I think the next bull phase in the gold market gets underway before October. Why? China. But not due to runaway demand… At an International Monetary Fund (IMF) forum last month, China’s central bank governor, Zhou Xiaochuan, made it clear he believes the renminbi is “ready for reserve status.” It would be a huge step for the Chinese currency, starting with the fact that it would be added to the basket of currencies IMF member countries can include in their official reserves. Billions would be invested in it. What was the IMF’s reaction? “We welcome and share this objective,” said IMF Managing Director Christine Lagarde. “We are now working closely with the Chinese authorities in this regard,” added Director of Communications Gerry Rice. They didn’t say they would accept it, but then again, … Continue reading

Eric Coffin Pinpoints the Mining Companies with Resources that Are Right for Today’s Market

The Gold Report: At the subscriber investment summit in Toronto in March 2015, you had a talk titled “Life in a Zero Yield World.” What is wrong with that world? Eric Coffin: A zero yield world is the result of four or five years of central banks essentially buying the hell out of the bond market, which is what the European Central Bank (ECB) is doing right now. And buying those bonds, also known as quantitative easing (QE), drives down yields. QE has helped the U.S. and will probably help the European economies but it creates a lot of distortions. We tend to see a lot of money driven into high-risk areas, like heavily leveraged commodity and exchange-traded funds (ETF) bets and things like art and collectibles, because there are these large money pools that can raise capital at close to zero rates, and that tends to make people take … Continue reading

Gold Is Going To Start A New Bull Market

By Mike Swanson on Tue, 05/12/2015 – 06:43 Topics: Gold Investing and Gold Stocks All markets go through cycles and gold is going to start a new bull market before anyone realizes it. And right now everyone is asleep when it comes to gold. Gold last made a peak in 2011 and then had a crash drop in 2013 while the mining stocks had a big decline last year. Those losses have made gold bugs give up. I know markets can be hard for people. I got in gold and mining stocks last summer and had to get in and out for some losses. But if you were interested in gold in the past or own some you cannot give up now when something big is around the corner now. Almost no one is bullish on gold and despite talking about gold a lot I hardly ever even get emails about it. … Continue reading

Buy Silver or You Will Die!

Buy Silver or You Will Die! By Jeff Clark It’s the news everyone dreads—a call from the hospital. And it’s about one of the most important people in the world… Your mother. [Every ALL-CAPS ITEM below contains silver or is required in its use.] You hear the nurse talking urgently through your TELEPHONE and you realize it’s serious… You grab your REMOTE CONTROL and turn down the volume on your PLASMA TV that’s playing your favorite DVD movie. You push the BUTTON and the SPEAKERS go mute. You press “save” on the KEYBOARD of your COMPUTER. “Yes, she’s okay,” the nurse tells you. “But you need to come to the HOSPITAL right away.” That’s all you need to hear. You yell to your spouse and grab your CELLPHONE to call your siblings. “Is she alright?” your wife asks frantically. She was using the VACUUM CLEANER and WASHING MACHINE and didn’t … Continue reading

Four Canadian Juniors Poised to Gain in the Oil and Gas Recovery: Angelos Damaskos

The Energy Report: The prices of West Texas Intermediate (WTI) and Brent have recently rebounded to about $60 per barrel ($60/bbl) and $65/bbl, respectively. Where do you see them going for the rest of the year? Angelos Damaskos: The oil industry expects oil to recover to $75/bbl in the near term because this is the global marginal cost of production. The longer oil trades below that price level, we lose supply not only from the North American shale industry, but also from the longer-term producing projects: the Canadian tar sands and the Brazilian offshore basins. The oil price has recovered by 20–25% from January’s lows but remains 50% lower than last year’s highs. As a result, there has been a dramatic drop in income and earnings, which has been met with big cutbacks in capital expenditure (capex) and development drilling. The length of time oil trades below $75/bbl is a … Continue reading

Auryn’s Management Finds Success in the Prudent, Measured Approach

The Gold Report: Please give us an overview of Auryn Resources and its genesis. Shawn Wallace: Auryn Resources Inc. (AUG:TSX.V) is the third company that Auryn chairman Ivan Bebek and I have started. Previously we founded Keegan Resources and later Cayden Resources. Keegan became Asanko Gold Inc. (AKG:NYSE.MKT; AKG:TSX; ) and it merged with its neighbor, PMI Gold. While working with Asanko in Ghana, we met Auryn COO Michael Henrichsen, a brilliant structural geologist with Newmont Mining Corp. (NEM:NYSE). After Cayden was bought by Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), our team began a global search for an asset with three key attributes: it had to be a district-scale opportunity, which means a land package where multiple deposits could be developed in the same geological setting; it had to be situated in a stable jurisdiction where people get mining permits in a reasonable timeframe; and it had to be high … Continue reading

Five Mining Companies Joe Reagor Believes Are Ahead of the Curve

The Gold Report: What’s your gold price forecast for the rest of 2015? Joe Reagor: For the full year, our average price is $1,260 per ounce ($1,260/oz). If the U.S. dollar were to remain steady and not strengthen, gold could reach $1,300/oz by year-end. TGR: Gold was sold off heavily in the last week of April based on an anticipated interest rate hike by the Federal Reserve. Should the Fed actually raise the rate, how much of a negative effect will that have on gold and for how long? “Integra Gold Corp.’s Lamaque is a near-term production opportunity with a minimal capital budget and an after-tax IRR of over 50%.“ JR: It is commonly believed that rates will rise because the U.S. economy is improving, but we keep getting mixed signals. The most recent jobless claims were exceptionally good, but the Q1/15 GDP increase was only 0.2%. If we see … Continue reading