What A Joke – Pretivm Initiates Inquiry Into Trading Of Its Shares





January 11, 2019
Dudley Pierce Baker
Founder – Editor

Today I saw this press release from Pretium Resources


VANCOUVER, British Columbia, Jan. 10, 2019 (GLOBE NEWSWIRE) — Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) reports that it has retained independent legal counsel to initiate an investigation of unusual trading activity in its shares.

About Pretivm

Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia

For further information contact:
Joseph Ovsenek                    Troy Shultz
President & CEO                    Manager, Investor Relations & Corporate Communications

Pretium Resources Inc.
Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street
PO Box 49334 Vancouver, BC V7X 1L4
(604) 558-1784
(SEDAR filings: Pretium Resources Inc.)


So, what is really going on?

This is not rocket science. Insiders (officers and directors) have been selling shares in PVG from May 17, 2018 through December 24, 2018.

8 insiders, all sellers in the open market have reported to authorities and via my subscription to INKResearch.com, I see it all.

Perhaps PVG does not need an attorney to investigate trading activity, just ask their own officers and directors why ‘they’ are selling.

Total shares valued at C$9,178,605 have been sold from May 17 – Dec 24, 2018.

Sellers are:
Ovsenek J.J.        –  President & CEO
Smith, D.               – Director
Paspalas, G.N.      – Lead Director
McNaughton, K.C. – VP & Chief Exploration Officer
Vip, T.                     – Executive, VP & CFO
Romero, M.A.         – Executive VP and Corporate Affairs & Sustainability
Quartermain, R.A.  – Executive Chairman
Board, W.               – VP, Geology & Chief Geologist

From my personal experience, when 1 or 2 insiders are selling, I don’t get too alarmed. But, when you have 8 insiders selling as in this situation, well, to me, something is going on (news) that has not yet been reported by the company. (Only time will tell)

I have never personally owned shares in PVG and do not have a short position, but I keep my eyes are hundreds of companies and the insider activity. I saw this selling going on a couple of months ago and thought about an article at that time. But with today’s press release I just had to do something.

Interesting to me that the press release above, stated for additional information contact,
Joseph Ovsenek, President & CEO.

Mr. Ovsenek is one of the insiders selling a total of 160,175 shares.

 I have always enjoyed following the insider trading activity on all of my personal positions and other high profile companies, like PVG.

Many times, insider buying can alert us to great opportunities and in this situation, insider selling at a minimum, must be a big caution flag, if not, an out right sell signal.

I am sure this article will get a lot of views and responses, but folks, it is what it is and I am only the messenger.

If you would like to know more about my services, visit the links above.

Stay alert…..


Why Inflation Is Here To Stay – The Case For Gold

January 3, 2019 @ 3:52 pm MARK SKOUSEN. Named one of the “Top 20 Living Economists,” Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.     “Fiat money and fiduciary credit are the pillar and post of our age of inflation.” — Hans F. Sennholz “The establishment of central banking removes the checks of bank credit expansion and puts the inflationary engine into operation.” — Murray N. Rothbard When the Federal Reserve was created in December 1913, it had two purposes: (1) To defend the gold standard and the dollar against inflation, and (2) To be a lender of last resort during a banking crisis. It turned out that in the first 30 years of the Fed, it kept its promise more with the #1 goal than the #2 goal. During the economic collapse of 1929-32, the Fed failed miserably to be a lender of … Continue reading

Morning INK :: CP CEO sold stock after lauding share buyback program (CP)

Note from Dudley Pierce Baker
I have maintained a subscription to INKResearch.com for many years allowing me to track insider trading in Canada and the U.S. markets. This is a general market comment from INK and I thought worthy of sharing with you.

INK Research

MORNING INK REPORT :: CP CEO sold stock after lauding share buyback program
January 3, 2019

Yesterday, we highlighted insider selling at Canadian National Railway (Cloudy; CNR) and said that it did not give us any comfort regarding the potential for railway stocks to avoid getting hit by economic slowdown fears. Today, we visit Canadian Pacific Railway where CEO activity gives us the outright chills about the outlook for the stock.

On October 17th, Canadian Pacific Railway (CP) announced its intention to launch a share repurchase program. In the accompanying press release, CEO Keith Creel said, “With the new share repurchase program, we are renewing our commitment to return cash to shareholders in a disciplined, opportunistic manner”. The TSX accepted the company’s notice for the buyback program two days later. In the following month, Mr. Creel sold $16.5 million in company shares after exercising options.

Generally, we have a hard time with the idea that it is in the best interest of shareholders to use cash to buyback shares when the stock is soaring near all-time highs and debt lingers on the balance sheet. When such buybacks are accompanied by insider selling, we view it as a negative sign. When one of those insiders selling is also a board member, it is a bigger negative. This is the type of behavior and attitudes we tend to see in frothy and toppy environments. Sometimes those tops take a long time to form. In this case, we will stick our necks out and suggest the top for CP stock is probably in for a long time.

Canadian Pacific Railway (CP)

Buys (000’s) Sells (000’s)
SEDI Market Volume (Last 10 Days) 2,000 0
Quoted Market Value $34,649,478,339
Insider Holdings $13,602,580
Holdings % of QMV 0.04%

On November 8th, Canadian Pacific Railways (CP) CEO Keith Creel exercised 60,000 Options at an exercise price of $115.78 and sold the same number of Common Shares in the public market at an average price of $275.23. The CEO currently holds 88 Common Shares on a direct holdings basis, and 2,322 Common Shares on an indirect holdings basis.

Also on November 8th, the company repurchased 40,000 Common Shares at $275.01. Since October 19th, Canadian Pacific Railway has reported repurchasing 1,222,200 Common Shares at an average price of $268.12.

The stock currently holds a cloudy INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment and price momentum which places it in the bottom 30% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out- or under-perform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations.

Number of TSX Companies with Sell/Buy Filings
Number of Venture Companies with Marker Trades
Last Trading Day’s TSX Most Active (January 2, 2019)
Issuer Name Symbol Trading
Executive Bias
Barrick Gold ABX 46,929 Buying
Aurora Cannabis ACB 9,813 Selling
Bombardier BBD.B 8,877 N/A
Aphria APHA 8,225 Buying
ProMetic Life Sciences PLI 6,808 Buying
Baytex Energy BTE 5,579 Buying
Encana ECA 5,546 Buying
Kinross Gold K 5,178 N/A
Manulife Financial MFC 4,945 Buying
Enbridge ENB 4,442 Buying
Last Trading Day’s Venture Most Active (January 2, 2019)
Issuer Name Symbol Trading
Executive Bias
Namaste Technologies N 7,891 Selling
Kalytera Therapeutics KALY 4,284 N/A
Auxly Cannabis Group XLY 2,948 N/A
Sokoman Iron SIC 2,437 Buying
CUV Ventures CUV 2,050 N/A
Rio2 RIO 1,901 Buying
OrganiGram Holdings OGI 1,746 Buying
HIVE Blockchain Tech HIVE 1,733 N/A
Adamera Minerals ADZ 1,724 Selling
CardioComm Solutions EKG 1,481 Buying
Last Trading Day’s TSX Price Gainers (January 2, 2019)
Issuer Name Symbol D/D Gain Insiders
Executive Bias
E-L Financial ELF $16.94 Buying
Canadian Tire CTC $11.90 Buying
Fairfax Financial Holding FFH $3.06 Buying
Canopy Growth WEED $2.67 Buying
Bausch Health Companies BHC $2.22 Selling
goeasy GSY $2.16 Buying
Senvest Capital SEC $1.99 N/A
Methanex MX $1.98 N/A
TransCanada TRP $1.66 Selling
Equitable Group EQB $1.65 N/A
Last Trading Day’s Venture Price Gainers (January 2, 2019)
Issuer Name Symbol D/D Gain Insiders
Executive Bias
Shaw Communications SJR.A $2.70 Selling
OrganiGram Holdings OGI $0.83 Buying
Cobalt 27 Capital KBLT $0.50 Buying
Galaxy Digital Holdings GLXY $0.40 Buying
Abitibi Royalties RZZ $0.32 Buying
Emerald Health Therapeuti EMH $0.27 N/A
Namaste Technologies N $0.24 Selling
Questor Technology QST $0.24 Buying
DiaMedica Therapeutics DMA $0.20 N/A
Millennial Lithium ML $0.20 Buying
Last Trading Day’s TSX Price Losers (January 2, 2019)
Issuer Name Symbol D/D Loss Insiders
Executive Bias
Constellation Software CSU 23.15 Selling
Boyd Group Income Fund BYD.UN 3.05 Selling
Morguard MRC 3.01 N/A
FirstService FSV 2.57 Selling
Restaurant Brands Intl LP QSP.UN 2.23 N/A
Shopify SHOP 1.68 Selling
Restaurant Brands Intl QSR 1.56 Buying
Linamar LNR 1.44 Buying
Nutrien NTR 1.34 Buying
Thomson Reuters TRI 1.33 Selling
Last Trading Day’s Venture Price Losers (January 2, 2019)
Issuer Name Symbol D/D Loss Insiders
Executive Bias
People Corp PEO 0.29 Selling
Frankly TLK 0.25 N/A
Jemtec JTC 0.19 N/A
SilverCrest Metals SIL 0.18 Buying
Candelaria Mining CAND 0.14 N/A
Probe Metals PRB 0.10 Buying
Novo Resources NVO 0.10 N/A
Pacific Booker Minerals BKM 0.10 Selling
Eastwood Bio-Medical Ca EBM 0.10 N/A
Last Trading Day’s TSX Percentage Gainers (January 2, 2019)
Issuer Name Symbol D/D %Gain Insiders
Executive Bias
First Mining Gold FF 42.86% Buying
ProMetic Life Sciences PLI 37.25% Buying
Granite Oil GXO 23.64% Buying
Profound Medical PRN 21.82% Buying
Faircourt Split Trust FCS.UN 21.53% N/A
Real Matters REAL 20.00% N/A
Fortune Minerals FT 20.00% Buying
Obsidian Energy OBE 17.65% Buying
TriMetals Mining TMI.B 15.38% N/A
Aptose Biosciences APS 15.38% Buying
Last Trading Day’s Venture Percentage Gainers (January 2, 2019)
Issuer Name Symbol D/D %Gain Insiders
Executive Bias
Mazarin MAZ.H 69.23% N/A
DeepMarkit MKT 50.00% N/A
Volcanic Gold Mines VG 50.00% Buying
Galaxy Digital Holdings GLXY 40.00% Buying
Aftermath Silver AAG.H 38.46% N/A
Mammoth Resources MTH 33.33% N/A
AurCrest Gold AGO 33.33% Selling
Nortec Minerals NVT 33.33% N/A
Stans Energy HRE 33.33% Buying
Pure Energy Minerals PE 33.33% N/A
Last Trading Day’s TSX Percentage Losers (January 2, 2019)
Issuer Name Symbol D/D %Loss Insiders
Executive Bias
Aberdeen International AAB -16.67% N/A
exactEarth XCT -13.46% N/A
DXI Energy DXI -12.50% N/A
SOPerior Fertilizer SOP -12.50% Buying
Xtra-Gold Resources XTG -10.47% N/A
Brompton Oil Split OSP -10.46% Buying
ENTREC ENT -9.68% Buying
Posera PAY -9.52% N/A
Scandium Int’l Mining SCY -9.52% N/A
Dundee DC.A -9.38% N/A
Last Trading Day’s Venture Percentage Losers (January 2, 2019)
Issuer Name Symbol D/D %Loss Insiders
Executive Bias
True North Gems TGX -60.00% N/A
TVI Pacific TVI -50.00% N/A
Waterfront Capital WFG.H -33.33% N/A
Quinto Resources QIT -28.57% N/A
Volt Energy VOLT -28.57% N/A
Strategic Oil & Gas SOG -25.00% N/A
Candelaria Mining CAND -23.73% N/A
High Mountain Capital BUZD.P -23.53% N/A
BTU Metals BTU -21.74% Buying
Toachi Mining TIM -21.05% N/A

Copyright © 2019 INK Research Corp. All rights reserved. It is a violation of copyright laws to reproduce all or part of this publication or service by email, or any other means without the permission of INK Research Corp. You should not attribute in any other publication, disseminate, or distribute information contained herein without the written consent of INK Research Corp. INK Edge® and INK Research® are registered trade-marks owned by INK Research Corp. SEDI ® is a registered trade-mark owned by the Alberta Securities Commission.

INK provides general information. INK is not an investment advisory service, a financial planner, an investment advisor nor a securities advisor. INK does not purport to tell people, or suggest to people, what they should buy or sell for themselves. Opinions and recommendations contained herein should not be construed as investment advice. Do not assume that any recommendations, insights, charts, theories, or philosophies will ensure profitable investment. Users should always consult with and obtain advice from their professional licensed financial advisor, including their tax advisor, to determine the suitability of any investment. INK recommends that anyone making an investment or trading securities do so with caution. Users should perform full due diligence and investigate any security fully before making an investment or before the execution of a security trade based upon information learned through INK. Investors should obtain annual reports and other company information to complete their own due diligence in any investment. Neither INK nor anyone affiliated with INK is responsible for any investment decision made. INK has made all reasonable efforts to ensure that all information provided is accurate at the time of inclusion; however, there may be inadvertent and occasional errors. INK makes no guarantee of accuracy or completeness. All information and opinion expressed herein is subject to change without notice. INK employees may have an ownership or investment interest in any stock mentioned in this service or on this website. There may be links on this site to third-party sites or pages, the contents of which are not verified, maintained, controlled or supervised by INK. INK is not responsible for and assumes no liability for the accuracy, completeness or timeliness of the information or contents of any linked sites or pages. The inclusion of any link by us does not imply that INK recommends, approves or endorses the linked site or pages.

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December 14, 2018 - Surrey, BC

Larry W. Reaugh, President and Chief Executive Officer of American
Manganese Inc. (“American Manganese” or “AMY” or the “Company”), (TSX.V:
AMY | OTC US:  AMYZF | FSE:  2AM), is pleased to announce that the Company
has received the “Notice of Allowance” from the United States Patent and
Trade Mark Office for the Company’s lithium-ion battery recycling

The “Notice of Allowance” is formal notification indicating that the
examination of the invention has been completed by the US Patent and
Trademark Office and allowed for issuance as a patent.  The Company’s
attorney will be completing documentation and submitting fees for formal
issuance of the US Patent.  AMY CEO Larry W. Reaugh said, “Allowance of
this patent is a significant milestone for the Company as the invention is
now secured as a key asset that can be exclusively capitalized.”  The U.S.
Patent examiner deemed AMY’s technology is “novel” and “inventive” as it
enables the recycling of valuable cathode metals (namely cobalt, nickel,
manganese, aluminum and lithium) while converting these materials back to
fresh cathode materials for manufacture of new lithium-ion batteries.

“American Manganese recognized early on that significant growth in the
electric vehicle market will eventually lead to supply strains in materials
used to make lithium-ion batteries,” Mr. Reaugh noted, “and that effective
recycling of end of life lithium-ion batteries is a key aspect of achieving
a sustainable circular economy.”

According to Bloomberg New Energy Finance, forecasts show that electric
vehicle sales are “increasing from a record 1.1 million worldwide in 2017,
to 11 million in 2025 and then surging to 30 million in 2030” (see:
[1]Electric Vehicle Outlook).  In a Bloomberg Article dated December 4,
2018, “VW (Volkswagen) plans to launch fully or partly electric versions
across its lineup of more than 300 cars, vans, trucks and motorbikes by
2030”  (see:  [2]VW says the next generation of combustion cars will be its
last ). In a Reuters article dated December 11, 2018, “Daimler will buy
battery cells worth more than 20 billion euros ($23 billion) by 2030 as it
readies mass production of hybrid and electric vehicles” (see:  [3]Daimler
to buy $23 billion of battery cells for electric car drive )

With extensive experience in mining processes and technologies, American
Manganese contracted Kemetco Research to embark on a research program to
develop technology with the goal of capitalizing on the potential supply
strains of the metals used for manufacturing lithium-ion batteries, while
creating an important solution to the circular economy.

The Notice of Allowance of the US Patent is a significant milestone in
achieving this goal.  Key aspects described in the patent application are:
* Treatment of several cathode chemistries such as lithium cobalt oxide
(LCO), lithium nickel manganese cobalt oxide (NMC) and lithium nickel
cobalt aluminum oxide (NCA).

* Methods for achieving 100% recoveries of cobalt, nickel, manganese,
aluminum for all cathode chemistries tested.

* Method for achieving 100% lithium recovery by a novel locked cycle

AMY’s contractor, Kemetco Research, has been strategically focused on
developing AMY’s core technology into a highly efficient recycling process,
with plans to file for Continuing Patent Applications on work recently
completed that complements the current technology.  With the receipt of the
Notice of Allowance, AMY is ahead of known competitors in terms of IP
protection and positioned to lead the industry in electric vehicle battery

[4]About Kemetco Research Inc.

Kemetco Research is a private sector integrated science, technology and
innovation company. Their Contract Sciences operation provides laboratory
analysis and testing, field work, bench scale studies, pilot plant
investigations, consulting services, applied research and development for
both industry and government. Their clients range from start-up companies
developing new technologies through to large multinational corporations
with proven processes.

Kemetco provides scientific expertise in the fields of Specialty Analytical
Chemistry, Chemical Process and Extractive Metallurgy. Because Kemetco
carries out research in many different fields, it can offer a broader range
of backgrounds and expertise than most laboratories.

[5]About American Manganese Inc.

American Manganese Inc. is a critical metal company with a patent-pending
process for the recovery of metals from lithium-ion batteries such as
cobalt, lithium, nickel, manganese, and aluminum. Using a novel combination
of reagents and unit operations, AMY can provide 100%

extraction of cathode metals at battery grade purity. American Manganese
Inc. aims to capitalize on its patent-pending technology and proprietary
know-how to become the industry leader in recycling spent electric vehicle
lithium-ion batteries ([6]Please see the Company's July 25, 2018 Business
Plan for further details).

On behalf of Management

Larry W. Reaugh
President and Chief Executive Officer

Information Contacts:
Larry W. Reaugh
President and Chief Executive Officer
Telephone:  778 574 4444
Email: lreaugh@amymn.com


[7]    [8]View the company’s Video



[10]Check out our financing on the Stockhouse DealRoom



[13]View Larry’s latest Interview with Steve Darling – ProActive Investors

[14]American Manganese gets[15] [16]patent [17]allowance, [18]signs MOU
with Battery Safety Solutions


Neither the 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.  This news
release may contain “forward-looking statements”, which are statements
about the future based on current expectations or beliefs.  For this
purpose, statements of historical fact may be deemed to be forward-looking
statements.  Forward-looking statements by their nature involve risks and
uncertainties, and there can be no assurance that such statements will
prove to be accurate or true.  Investors should not place undue reliance on
forward-looking statements.  The Company does not undertake any obligation
to update forward-looking statements except as required by law.


1. https://about.bnef.com/electric-vehicle-outlook/
3. https://ca.reuters.com/article/technologyNews/idCAKBN1OA0OG-OCATC
4. http://www.kemetco.com/
5. https://www.amymn.com/
7. https://www.youtube.com/watch?reload=9&v=R48CDcZ72qs&feature=youtu.be
8. https://www.youtube.com/watch?reload=9&v=R48CDcZ72qs&feature=youtu.be
9. https://americanmanganeseinc.com/deal-room
10. https://americanmanganeseinc.com/deal-room
11. https://americanmanganeseinc.com/deal-room
12. https://youtu.be/niRI-k1ChIY
13. https://youtu.be/niRI-k1ChIY
14. https://youtu.be/niRI-k1ChIY
15. https://youtu.be/niRI-k1ChIY
16. https://youtu.be/niRI-k1ChIY
17. https://youtu.be/niRI-k1ChIY
18. https://youtu.be/niRI-k1ChIY
19. https://youtu.be/niRI-k1ChIY

Two Investment Opportunities You Don’t Want To Miss

November 7, 2018 By Dudley Pierce Baker   Let’s face facts, these precious metals markets have been devastating over the last several years. Some of you receiving this email have been previous subscribers to my services. I understand your frustration but the times are a changing and it is time to be positioned to capitalize on the next big up move in the resource sector. In my personal portfolio which is viewable by my Gold and Lifetime Subscribers you can see all of my positions, whether common shares or stock warrants. I trust this information is valuable to subscribers and while I am not privy to exactly when these markets will turn strongly to the upside, however, I do know a good deal when I see one. And now I am seeing two awesome situations. My current subscribers are aware of these situations. Yes, two great deals with Gold companies … Continue reading

Technology Sector Set For A Rebound?

October 15, 2018 There has been quite a bit of chatter about the FANG stocks recently.  In fact, the entire Technology Sector has taken a beating over the past 30+ days.  Our research team, at Technical Traders Ltd., believes the Technology sector is setting up for a 15%+ price rebound from these recent lows and we want to alert our followers to be prepared for this move. Let’s start by taking a look at a 1 Month S&P Heat Map showing just how distressed certain sectors are in terms of price valuations.  The Brighter Red highlighted symbols represent a price decrease of at least -6.7% to well above -10% over the past 30 days.  It is pretty easy to see the entire Technology, Technology Services, Financial, and Consumer Goods sectors are all under some pricing pressure.  What interests us is we call the “capital shift” that has been taking place over the … Continue reading

O’Leary and Holmes Are both Right on Gold & Gold Stocks


Mr. Wonderful, Kevin O’Leary, and Frank Holmes recently took different side the gold(bullion) vs. gold stocks. Gold and gold stocks are two different asset classes and saying which one is better. One is a commodity (Gold) and the other is equity (Gold Stocks). It’s like comparing multiple championships winning athletes, Sydney Crosby (NHL), Lebron James (NBA), and Tom Brady (Football) and saying one of these players is the best athlete of all-time. Gold and gold stocks offer two different purposes for an investor’s portfolio.


You own gold in bullion form and keep it in storage as an insurance policy for your other financial assets. It acts as a counterbalance against other assets in your portfolio. Investors flock to gold as a “safe-haven” asset, just like cash because they aren’t willing to take on risk. Gold is like a cash position in your portfolio, you don’t get paid to own it. Think of Gold as another currency (cash position) that you have exposure too, and you can use it as a counterbalance against your riskier assets. If gold isn’t important, then why do Central Banks own it on their balance sheet? For investors, it’s a way of being your own Central Bank.

I have a 5% weighting in gold. The GLD and physical bullion. Which I store and pay for the storage. The value of the commodity is whatever it is every day. Kevin O’Leary (Kitco)

Kevin O’Leary isn’t the only one who has gold as a counterbalance in their portfolio. Here is what Ray Dalio of Bridgewater thinks about gold:

“We can also say that if… things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit, so if you don’t have 5% – 10% of your assets in gold as a hedge, we’d suggest that you relook at this.” – Ray Dalio

Egyptian billionaire Naguib Sawiris investing half his net worth in gold

“And people also tend to go to gold during crises and we are full of crises right now. Look at the Middle East and the rest of the world and Mr. Trump doesn’t help.” (Marketwatch)

JP Morgan

“Underweight equities, long duration, long gold, and long the yen as Fed policy slows the economy and real rates collapse.” JP Morgan via ZH


After the dollar-gold window was broken in the 1970’s gold trades more like a commodity because it isn’t pegged to the US dollar. That is why gold, has better matched the cycle of the commodity booms since that time. Will it be treated again like before? We think that “Yes, gold will more than likely be pegged in some form to a currency at some point in the future”. Will it be more like past gold standards? Maybe, history repeats, just not exactly the same as before. It could be in a digital format because that is the way the world is going. We aren’t sure. But we follow the worldview that there are cycles and history repeats. We think that the mantra, “This could never happen” means it can happen again and probably will happen, just in a different twist. Everything has a time when it gets center stage. Gold standards will come, and then they will go. For now gold trades more like a commodity.


When O’Leary says gold miners are horrible investments is a bit of hype and bluster.

O’Leary: “The history of mining has been abysmal… I don’t need to have a manager in the middle screwing up his capital cost allowance, not controlling his costs. (Kitco)

This is like saying all technology stocks are profitable like Apple.  

The gold sector has one major commonality with every other sector. They are all cyclical! The question is, what cycle do they follow? Gold mining stocks and gold are part of the larger commodity cycle. If you understand the cycle, you understand that there is a time to buy and a time to sell. Gold miners generate an incredible amount of free cash flow once the sector has bottomed. Why? Management teams are forced to really look at their costs and focus on generating profits because investors demand it. Just like after the Dotcom bust, investors started to demand revenue, not just user growth. Let me say that again…Revenue! Profits were demanded as well.

Kevin O’Leary is right when he says “More and more investors are thinking the way I do. They are thinking about return of capital.”

But you are seeing it some darling tech stocks right now, particularly in the private tech side focusing aggressively on growth. Look at Wayfair, an e-commerce company sells home goods online. Revenues have increased by more than 4X, yet $0 in profits over the past three years. 

During the last gold peak, investors demanded growth in terms of ounces at all cost from management, and in the bottom, investors reversed course and realized profits are essential for survival. You know its approaching a top when its ounces at all costs. The technology sector has recently been like this, companies like Tesla(TSLA), Wayfair (W), where it has been growth at all costs. As the tech cycle turns, investors will demand profits from these companies, not just customer growth on Wayfair and auto deliveries from Tesla. This is a 100% guarantee because investors will get spooked when the cycle turns and expect profits. Right now, investors have been rewarding gold miners for delivering on production and showing profitability. In 2017, gold miners delivered record dividends. Gold miners are set to show strong revenues in 2018 because of the continued elevated gold price above $1,300.

“Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money,” tweeted Musk


But there is more than one way to play the gold sector. I am always amazed, when I speak with portfolio managers and receive emails, they always bring up explorers, producers, and royalty stocks to invest in stocks. Seek where the profits are, and you will find the gold. Look at Apple, it generates the most profits in the cell-phone industry over the past 8 years, its revenue grew incredibly over that same time-period. So why not repeat the same process in the gold sector?

We think there is a better way to think about investing in gold & silver stocks, and commodity stocks in general. Does the company generate a percentage of their sales related to gold and silver? It opens you up to many different companies with exposure to other commodities or other industries. Seek companies that are growing revenue, but still, give you exposure to gold and silver.

We can see the day when companies that derive a percentage of their revenue from precious metals will be added to ETFs.

  • Mining Services
    • Major Drilling
    • KGHM
    • Swick Services
  • Financial Services
    • Sprott
    • GoldMoney
    • Canaccord Genuity
    • CME Group
  • Commodities Trading
    • Glencore
  • Refining & Distribution
    • Johnson Matthey
    • Umicore SA

Some of these companies are directly involved in operating mines, by providing useful services to the mining industry. While still being able to get exposure to the gold and silver. The additional value is you may be getting exposure to multiple commodities and in some case entirely different industries outside of mining that are growing.


Frank Holmes taking a more factor-based approach, with one-factor, focused on revenue growth. This factor is important because revenue growth attracts investor money.

.  “The royalty companies have done well and those stocks that basically show better revenue per share, reserves per share, production per share, they far outperform.” Holmes.

And if the company can grow revenue per share and/or cash flow per share this help share prices higher. Would you invest in a company that isn’t growing its revenue? This is why royalty stocks attract investors because they are able to grow revenue consistently over longer periods than the miners. The ability to add cash flowing royalties every year is like adding a new mine but a lot faster than a miner can.

Gold miners’ revenues are tied primarily to two items: 1. Production and 2. Gold Price. Investors are willing to pay up for anticipated growth in productionbecause a new mine is starting up or an existing mine is ramping up for further production. Investors are not willing to pay up for growth, they will sell. The higher the expected growth potential, the higher the anticipated returns. But, watch out if the company slips up. Investors will punish the share price like we recently saw with Pretium Resources and New Gold. When the commodity price is falling faster than the production growth, this will take down all stocks in the sectors. This is why it’s important to focus on higher quality companies, with low AISC or have high operating margins. It minimizes your risks on the downside because they can maintain dividends, and their revenue is less impacted.

You can see why royalty and streaming companies like Franco-Nevada and Royal Gold are so popular because they offer fairly consistent revenue per share and cash flow per share growth relative to gold miners.


Gold and gold stocks provide investors with two very different sets of risks and opportunities to protect and grow their wealth. You own gold primarily as an insurance policy against your portfolio and the financial system. You own gold stocks as a way to potentially increase your wealth by focusing on growth, management ownership and catalysts. Two different asset classes that are part of the overall portfolio. By understanding the cycle that they both follow, you can enjoy the ups and take money off the table when the crowd is all in.

Written by Paul Farrugia, BCom. Paul is the President & CEO of First Macro Capital. He helps his readers identify mining stocks to hold for the long-term. He provides a checklist to find winning gold and silver miner stocks and any commodity producer.

Get the exact checklist that Professionals use to find winning Gold mining producer stocks.
Apply this to any mining producer stock in under 30 minutes!

Great Panther Silver Reports First Quarter 2018 Financial Results

GREAT PANTHER SILVER LIMITED (TSX:GPR) (NYSE American:GPL) (“Great Panther”; or the “Company”) today reported financial results for the Company’s three months ended March 31, 2018. The full version of the Company’s unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) can be viewed on the Company’s website at www.greatpanther.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with International Financial Reporting Standards (“IFRS”), except as noted in the Non-GAAP Measures section of the MD&A. All dollar amounts are expressed in US dollars (“USD”), unless otherwise noted.

“Great Panther’s revenues were up 38% reflecting the normal operation of the Topia processing plant compared to the first quarter of last year when it was suspended for planned upgrades”, stated Jim Bannantine, President and CEO. “We continue to focus our efforts on advancing the Coricancha project, and we expect to release an economic study before the end of this quarter. Our balance sheet remains strong and our cash position increased to just over $60 million as we continue to fund Coricancha from the cash flows from our operations in Mexico.”


Q1 2018 Q1 2017 Change Q4 2017 Change
Tonnes milled 96,869 82,656 17% 98,396 -2%
Ag eq oz produced1 1,031,937 730,186 41% 1,065,773 -3%
Silver production – ounces 491,063 366,435 34% 514,218 -5%
Gold production – ounces 5,831 5,178 13% 5,931 -2%
Payable silver ounces 476,325 344,995 38% 516,078 -8%
Ag eq oz sold 971,189 680,984 43% 1,038,023 -6%
Cost per tonne milled2 $ 121 $ 88 38% $ 116 4%
Cash cost2 $ 5.39 $ 3.54 52% $ 7.25 -26%
Cash cost per Ag eq oz2 $ 12.76 $ 10.99 16% $ 13.18 -3%
All in Sustaining Cost (AISC)2 $ 12.33 $ 19.55 -37% $ 14.72 -16%
AISC per Ag eq oz2 $ 16.16 $ 19.10 -15% $ 16.89 -4%
(in 000’s, unless otherwise noted) Q1 2018 Q1 2017 Change Q4 2017 Change
Revenue $ 17,019 $ 12,371 38% $ 17,384 -2%
Mine operating earnings before non-cash items2 $ 5,225 $ 5,445 -4% $ 4,962 5%
Mine operating earnings $ 4,019 $ 4,662 -14% $ 3,755 7%
Net income (loss) $ (97) $ 3,040 -103% $ (1,918) 95%
Adjusted EBITDA2 $ 415 $ 2,134 -81% $ 904 -54%
Operating cash flows before changes in
non-cash net working capital $ 118 $ 894 -87% $ 618 -81%
Cash and short-term deposits at end of period $ 60,884 $ 53,158 15% $ 56,888 7%
Net working capital at end of period $ 67,076 $ 69,281 -3% $ 65,965 2%
Average realized silver price per oz3 $ 16.36 $ 19.33 -15% $ 16.86 -3%
Average realized gold price per oz3 $ 1,363 $ 1,297 5% $ 1,292 5%
Earnings (loss) per share – basic and diluted $ (0.00) $ 0.02 -100% $ (0.01) 100%
1 Silver equivalent ounces are referred to throughout this document. Ag eq oz are calculated using a 70:1 Ag:Au ratio and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations.
2 The Company has included the non-GAAP performance measures cost per tonne milled, cash cost, cash cost per Ag eq oz, AISC, AISC per Ag eq oz, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-GAAP Measures section of the MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.
3 Average realized silver price is prior to smelting and refining charges.


Revenue increased by $4.6 million or 38% compared to the first quarter of 2017. This was primarily attributable to an increase in metal sales volumes ($5.6 million effect) as there were negligible metal sales for Topia during the first quarter of 2017 due to the suspension of milling operations for plant upgrades, and an increase in gold prices ($0.4 millioneffect). This was partly offset by a decrease in silver prices ($1.4 million effect). The Company’s average realized silver price for the first quarter of 2018 was $16.36 per oz compared to $19.33 per oz during the first quarter of 2017.

The increase in metal sales volume resulted in a corresponding increase in production costs for the first quarter of 2018, compared to the first quarter of 2017 (approximate $3.2 million increase). Production costs also increased in MXN terms as a result of mining narrower veins at the GMC (which causes more waste material to be mined), along with rate increases for mining contractors ($0.4 million effect). Another factor in the increase of production costs was the strengthening of the MXN against the USD which had the impact of increasing costs in USD terms by $0.8 million.

Mine operating earnings before non-cash items decreased by $0.2 million relative to the first quarter of 2017 as the $4.9 million increase in production costs exceeded the $4.6 million increase in revenue.

Amortization and depletion increased compared to the first quarter of 2017 due to depreciation of the new tailings filtration and handling facilities at Topia that were commissioned in the second quarter of 2017.

G&A expenses for the first quarter of 2018 increased 3% compared to the same period in 2017, primarily due to higher share-based compensation.

Exploration, evaluation and development (“EE&D”) expenses for the first quarter of 2018 increased $1.4 million or 70% compared to the same period in 2017, mainly due to $1.5 million of care and maintenance and project expenditures related to Coricancha, which was acquired on June 30, 2017. The first quarter of 2017 included $0.3 million of Coricancha pre-acquisition EE&D costs related to technical evaluation, integration planning and pre-closing legal and professional fees. The Company will continue to expense costs associated with the ongoing care and maintenance of Coricancha and any project costs associated with evaluating the return of Coricancha to production until such time as a positive decision is made to restart the mine. EE&D expenditures for the first quarter of 2018 also included $0.6 millionof additional corporate development costs, due to a higher level of activity associated with the evaluation of potential acquisitions.

Finance and other income (expense) primarily reflects interest income or expense and foreign exchange gains and losses. During the quarter ended March 31, 2018, the Company had foreign exchange gains of $0.7 million compared to $1.8 million in the first quarter of 2017. …read more

Societal Commentary – Wed 2 May, 2018

Total national costs of undocumented immigrants

Illegal Immigration hurts our country. Thanks GH

You want Big Al’s opinion? “It is illegal and that is pretty simple. Big Al does not support illegal activity.”
The Fiscal Burden of Illegal Immigration on United States Taxpayers

Report by Matt O’Brien and Spencer Raley | September 27, 2017 | View the Full Report (PDF)


A continually growing population of illegal aliens, along with the federal government’s ineffective efforts to secure our borders, present significant national security and public safety threats to the United States. They also have a severely negative impact on the nation’s taxpayers at the local, state, and national levels. Illegal immigration costs Americans billions of dollars each year. Illegal aliens are net consumers of taxpayer-funded services and the limited taxes paid by some segments of the illegal alien population are, in no way, significant enough to offset the growing financial burdens imposed on U.S. taxpayers by massive numbers of uninvited guests. This study examines the fiscal impact of illegal aliens as reflected in both federal and state budgets.

The Number of Illegal Immigrants in the US

Estimating the fiscal burden of illegal immigration on the U.S. taxpayer depends on the size and characteristics of the illegal alien population. FAIR defines “illegal alien” as anyone who entered the United States without authorization and anyone who unlawfully remains once his/her authorization has expired. Unfortunately, the U.S. government has no central database containing information on the citizenship status of everyone lawfully present in the United States. The overall problem of estimating the illegal alien population is further complicated by the fact that the majority of available sources on immigration status rely on self-reported data. Given that illegal aliens have a motive to lie about their immigration status, in order to avoid discovery, the accuracy of these statistics is dubious, at best. All of the foregoing issues make it very difficult to assess the current illegal alien population of the United States.

However, FAIR now estimates that there are approximately 12.5 million illegal alien residents. This number uses FAIR’s previous estimates but adjusts for suspected changes in levels of unlawful migration, based on information available from the Department of Homeland Security, data available from other federal and state government agencies, and other research studies completed by reliable think tanks, universities, and other research organizations.

The Cost of Illegal Immigration to the United States

At the federal, state, and local levels, taxpayers shell out approximately $134.9 billion to cover the costs incurred by the presence of more than 12.5 million illegal aliens, and about 4.2 million citizen children of illegal aliens. That amounts to a tax burden of approximately $8,075 per illegal alien family member and a total of $115,894,597,664. The total cost of illegal immigration to U.S. taxpayers is both staggering and crippling. In 2013, FAIR estimated the total cost to be approximately $113 billion. So, in under four years, the cost has risen nearly $3 billion. This is a disturbing and unsustainable trend. The sections below will break down and further explain these numbers at the federal, state, …read more

Source:: The Korelin Economics Report

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