“It seems that Western investors are stubbornly sticking to the old playbook for gold: rising real interest rates translate into a lower gold price and therefore lead to net-negative gold sales.” Incrementum AG Gold Report — just published.
EMX Royalty | Ivanhoe Mines | Elemental-Altus Royalties | Kenorland Minerals | Blackrock Silver
- The miners and shippers that we follow, and their associated metals, are dropping further THURSDAY (updated) and rebounding FRIDAY after 4% TO 8% drops earlier in the week. Thick trading volumes in North America and in London. Hong Kong, Tokyo, Shanghai, Melbourne, too, earlier.
- A heads-up: Quick and worthy scan — a Bloomberg News piece about China’s stagnant wages, real estate morass and perhaps the curtain closing on the mainland’s economic dream. Here please.
- Copper, our sometimes China gauge, is dropping this week after a 3-month rally that took the industrial metal to $5.10 a pound from $3.60. Silver, gold are rumbled; platinum is the least offending of the losers thus far today.
- Until the Friday physical assets rebound in North America, the strongest March-May 2024 stock market gainers this week are among the largest losers: Ivanhoe Mines IVN IVPAF, Hudbay Minerals HBM, Lundin Mining LUN, First Quantum Minerals FM, Freeport McMoRan FCX — long list. [Please see earlier copper-etc report at The Calandra Report please.]
- I decided this week to add to our oversized holdings of Africa’s Ivanhoe Mines IVN IVPAF — after this report is published and one hopes before IVN rebounds from its 8% trimming. If I get the approx. $15,000 of added stock, we will be back to 81,000-plus shares. Update: I purchased another 1,050 shares of IVPAF. Then, another 100 shares a day later (Thursday). Ivanhoe Mines, I believe, is set up for accelerating copper (and zinc-copper from rehabbed Kipushi Mine) profits that will boost its Kamoa-Kakula (DRC Congo) margins, normalized profits and EBITDA to higher marks.
- Holding in there: late-charging royalty companies that were rebounding this week and last. Yes the gold, silver, copper roy-cos are falling, but not falling apart. Frederick Bell at Elemental-Altus Royalties tells me today from London.
“Encouraging signs in the royalty space with Shaun Usmar of Triple Flag Precious Metals TFPM ($3.5 billion) commenting in its news release. ‘The current deal environment is one of the busiest we have ever seen.’ When the larger deals come back for the senior royalty companies it presents a lot of opportunity for us.” — Fred Bell, Elemental-Altus ELE ELEMF
TCRs, I added to our ELE stake earlier this week, before its published quarter of $3.3 million of net revenue and 2,280 gold-equivalent ounces that went on the Elemental pile. Both double-digit gains that bode well for continued high-mark cash flows this year, next year — see report please.
Incrementum AG gold report: The Lichtenstein firm’s just published report, In Gold We Trust, runs more than 400 pages. TCRs, it has meaningful, long-trend graphs such as the emerging markets-gold one here, and West-vs.-East perspectives, and it is free.
A few of the miners we follow, and-or own, paid to sponsor the study: Victoria Gold VGCX, EMX Royalty EMX, Agnico Eagle AEM, Sprott CEF, McEwen Mining MUX, McEwen Copper, Ximen.
The report comes in English and in German with a “compact” edition:
In-Gold-We-Trust-Report-2024-Compact-Version-english.pdf
In-Gold-We-Trust-Report-2024-Compact-Version-deutsch.pdf
I look to make a few points about new strategic investors that are showing st private-placement offerings. In our small-co neck of the mining camps, they include an accelerating Kenorland Minerals KLD KLDCF — Centerra Gold; and Blackrock Silver BRC BKRFF — Eric Sprott et al.
I expect more of these ‘strategics’ this week and next.
KLD shares rose 8% after the report and continued up 2% Thursday.
Zach Flood, young geo-CEO at Kenorland, tells me today, “We’ve been working with Centerra for the past couple years in Québec and we align well on exploration strategies. The funds ($10 million CAD) will allow us to ramp up our greenfields initiatives over the next two years as we expand our presence in Ontario and Québec with a focus on gold.”
I have yet to purchase KLD shares but owned the company’s stock when Zach started Kenorland five years ago. The market value is below $60 million CAD.
— Thom Calandra
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Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.