Dr. #Copper Has Clearly Broken Out. A 4 Handle Is Not Far Away $COPX https://bit.ly/MasterMetalsETF

#Mining & Metals ETF Charts

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MasterMetals

@MasterMetals

.@BMO Raising #Lithium prices on #EV Growth- Upgrades $SQM, $ALB to Outperform

BMO analyst Joel Jackson, known for being prudent on Lithium, turning more positive on the sector for the following reasons:

 

1-      Lithium prices are only starting to rise. See charts below.

2-      We now see prices for lithium carbonate going from $6,75k/t today to $7,5k/t in 2021 and then average $10,0k/t by 2023

3-      WE now see EV penetration to grow from 3.9% in 2020 to 5% in 2020 and 12% by 2025.

4-      Recent data have shown an acceleration with Chinese EV sales up 120% in November yoy and Europe tripling

5-      Joel also sees lithium supply basically not rising in 2021 before a supply boost in 2022/23. See charts below.

6-      Joel is now using 18X EV/EBITDA multiple targets up from 12X justified by: 1- 20% demand CAGR for lithium, 2- Scarcity of liquid investments in the space, 3- ALB’s lithium unit has traded at 18X for the past five years

7-      SQM and ALB trade at 30% discount to their SOTP. Details below and attached. Joel is upgrading SQM to Outperform.

 

#Gold’s recent sell off had less to do with fundamentals, and everything to do with clearing out the “jokers” who wanted to take delivery of their December Gold Contracts.

#Gold - Some #TechnicalAnalysis on the Current State of the Market 

Gold futures prices (paper gold) were able to cross on the upside the 200-day moving average (pink line). It all looks like the low of around US$ 1'760 per ounce may just have been an aberration and the result of technical selling by the Powers That Be, aka the PPT. It had nothing to do with fundamentals, and everything to do with clearing out all the jokers who wanted to take delivery of their December Gold Contracts. The MACD turned positive as it crossed  the red line.

What is needed now is a consolidation period in the next few weeks before year end, at which time Gold always outperforms? 

Attachment 2 displays the GDX (VanEck Vectors Gold  Miners ETF), the largest ETF investing in gold mining shares. The washout to around US$ 33 is probably the low in this short-term correction. The Relative Strength (upper chart) and the MACD (lower chart) have turned up. What we need here is a bottom formation over the next few weeks.

 

Attachment 3 shows where some gold producers are selling vs. implied premium/discount to spot gold.
 
Only B2Gold (BTO) is selling at a premium, while Lundin Gold (LUG), Pretium Resources(PVG) and Kirkland Lake Gold (KL) are close to neutral. All the rest are selling at a discount, and some at a heavy discount. The red figure represents the average, currently close to a 20% discount.
 
PG=Premier Gold, 
AR=Argonaut Gold, 
OGC=Oceana Gold,
KNT=K92 Mining, 
TXG=Torex Gold, 
GAU=Galiano Gold,
NGD=New Gold, 
CG=Centerra Gold, 
SSRM=SSR Mining,
EQX=Equinox Gold, 
DPM=Dundee  Precious Metals, 
AGI=Alamos Gold, 
GSS=Golden Star Resources.
 
The upper percentage figure is historically the high, and the lower percentage figure historically the lower level of trading in relation to the spot gold price. The blue diamond is the current status. 

(Source Scotiabank)

Attachment 4 shows the Point&Figure chart of the Philadelphia Gold &Silver Index (XAU). Contrary to the ARCA Gold Bugs Index (HUI), XAU also includes silver shares. It is used as a benchmark for gold funds to compare performance. The chart shows the sideways correction since August  (8 red figure).
 
 Attachment 5 displays the holdings.
 
It should always be remembered that at the heart of any successful strategy, is to buy low and sell high. Currently, we’re still in the Buy Low point of this Precious Metals Bull Market. 

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MasterMetals

@MasterMetals

#Copper's breakout is for real!

Dr. #Copper

Metals Charts (Weekly) 

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MasterMetals

@MasterMetals

#Implats Latest to Join high-flying #PGM focused #VC Fund #GreenTech

High-flying venture capital fund AP Ventures supports technologies making use of PGMs to help the world combat climate change.

Existing investors in the London-headquartered AP Ventures, which this year established a South African presence, include South Africa's Public Investment Corporation, Anglo American Platinum, the Toyota-linked Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium and Sumitomo.   

Now Implats joins high-flying PGMs-linked venture capital fund

JOHANNESBURG (miningweekly.com) – Platinum group metals (PGMs) mining and marketing company Impala Platinum (Implats) announced on Monday that it would be joining a high-flying venture capital fund that supports technologies making use of PGMs, which are helping the world to combat climate change.

Existing investors in the London-headquartered AP Ventures, which this year established a South African presence, include South Africa's Public Investment Corporation, Anglo American Platinum, the Toyota-linked Mirai Creation Fund, Mitsubishi Corporation, Plastic Omnium and the Sumitomo Corporation.

AP Ventures' investment strategy is focused on companies developing technologies which are capable of sustainably solving global challenges such as renewable energy integration and resource scarcity. A key area of focus is the decarbonisation of transport, mining and heavy industry, by the only fund of its kind offering investors access to these innovative, fast-growing companies built on the PGM properties.

See the whole story here: https://m.miningweekly.com/article/now-implats-joins-high-flying-pgms-linked-venture-capital-fund-2020-12-07/rep_id:5582?__twitter_impression=true 

Northern Dynasty $NDM has fallen 60 cents to 45.5 cents on +48.5 Million Shares on the blowback from Wednesday's decision by US to deny permits for #Pebble project in #Alaska -Stockwatch

 An appeal will be forthcoming, says Mr. Thiessen, the company's $506,000-a-year president and chief executive officer....

+US$800-million has been spent on Pebble in exploration and development expenses since a Cominco Ltd. geologist discovered the deposit in 1987. 

Northern Dynasty Minerals Ltd. (NDM), which fell 54 cents to 51 cents on 35.09 million shares yesterday, lost another 5.5 cents to 45.5 cents today on 13.49 million shares as the blowback continues from Wednesday's decision by the U.S. government to deny the company's request for permits that would have allowed the mammoth Pebble project in Alaska to proceed. 

#GOLD Getting Hammered with the Drop in $VIX Below 20!

$Gold (5 minute chart)

$VIX (1 minute chart)

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Great Results from @LundinGold $LUG in Q3; Achieves EPS of $0.20 After just 3 Quarters! #Gold #Ecuador #FDN

Very strong re-start of operations at its Fruta del Norte gold mine ("Fruta del Norte") following the temporary suspension in the second quarter due to the COVID-19 pandemic. 

Fruta del Norte produced 94,250 ounces ("oz") and sold 62,160 oz of gold, at a low cash operating cost of $632 per oz1 sold during the quarter. This resulted in net revenues of $119 million, income from mining operations of $62.8 million and cash flow from operations of $23.4 million.

Adjusted net earnings for the quarter were $45.8 million and $0.20 per share.

…

Going forward, the Company expects to generate net sale receipts and net operating cash flows well in excess of its known obligations due in the next twelve months.

Guidance for the second half of 2020 remains unchanged and gold production at Fruta del Norte for the fourth quarter of 2020 is estimated to be in the range of 60,000 to 75,000 oz. Production is expected to be lower in the fourth quarter compared to the third quarter due to a planned mill maintenance shutdown to expand the concentrate filter press capacity and lower feed grades, which are more reflective of the overall average resource grade. Total 2020 gold production is estimated to be between 200,000 and 220,000 oz.

AISC for the second half of 2020 is expected to range between $770 and $850 per oz of gold sold. AISC includes $10.4 million in sustaining capital, most of which is planned for the fourth quarter and is comprised of costs for the tailings dam raise which commenced in September, the purchase of surface mobile equipment and other efficiency improvement projects.

See the whole press release here:

https://mma.prnewswire.com/media/1330477/Lundin_Gold_Inc__Lundin_Gold_Reports_Q3_2020_Results.html

https://bit.ly/MasterMetals

.@RupertResources Bucking the Trend of the #Gold Stocks $RUP

 

Rupert Resources $RUP had a strong advance yesterday—and this in a severe downmarket in precious metals stocks. 

The shares closed at CAD 5.41 (+$ 0.43 or 8.6%). 

Look at the performance of Rupert Resources versus GDX, the largest gold miners ETF. It has been outperforming gold stocks by milestones and the MACD (lower chart) indicates it will start to outperform further.

The excitement is all about the fantastic Ikkari gold discovery in Area 1.  There is no news, but the company releases drill results from the Ikkari gold discovery in Northern Finland, about every 3 weeks.  We should thus be expecting further drill results in the next week or so. 

The old Pahtavaara mine, currently on care & maintenance, around 20-25 km east of the gold discovery. The other picture is from the drilling site.

Agnico-Eagle Mines (AEM) operates 50 km to the northwest the Kittilä gold mine, the largest gold mine in Europe, with an estimated annual production of 200'000 ounces per year. AEM owns about 15% of the shares of Rupert Resources.

Cormark Securities published yesterday a report on Rupert Resources. The full report can be found here: https://drive.google.com/file/d/1HUMloKlUZ8O9sSkLIeudk96upJ6nv8rT/view?usp=drivesdk. 

MasterMetals

.@JPMorgan Remains King Of The #Gold Market Accounting For 1/3 Of All Trade In Gold Bars on #Comex in October, +40% in June

JPMorgan earned record revenue of around $1 billion so far this year from trading, storing and financing precious metals, vastly outperforming rival banks, reports Reuters.

The U.S. bank's revenue by mid-November accounts for at least half of the $1.7 billion to $2 billion the top 10 investment banks combined will make this year from precious metals, mostly gold, estimates consultancy McKinsey CIB Insights.

Its commodities division is on track to bring in more than $1.5 billion this year and could challenge Goldman Sachs for the title of top earner, the sources said.

Data from CME Group, which runs Comex, show JPMorgan's clients accounted for one-third of all trade in gold bars registered with the exchange in October, and more than two fifths in June.

Like other big banks, JPMorgan was able to get and ship metal cheaply and in large quantities when other, smaller traders could not, sources said.

See the whole article on Reuters here: https://www.reuters.com/article/us-precious-revenue-jpmorgan-exclusive-idUSKBN2831N5

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#RoscanGold $ROS Continues to Hit #Gold at Southern Mankouke: Intersects 5.35gpt Gold over 53m & 3.99gpt over 17m @GoldRoscan

Roscan Gold Intersects 5.35gpt Gold over 53m in DDH-79 at Southern Mankouke and 3.99gpt over 17m in Fresh Rock in DDH-77

Southern Mankouke - Diamond Drilling Highlights:

5.35 gpt gold over 53m from drill hole DDMAN20-79 from 126.5m
Including 7.78 gpt gold over 5m from 128.5m
And 12.5 gpt gold over 12m from 157.5m

And 2.52 gpt gold over 47m from drill hole DDMAN20-79 from 45.5m
Including 10.3 gpt gold over 6m from 72.5m

2.84 gpt gold over 40m from drill hole DDMAN20-70 from 114.5m
Including 6.23 gpt gold over 4m from 121.5m
And 7.06 gpt gold over 8m from 144.5m

13.9 gpt gold over 6m from drill hole DDMAN20-81 from 53.5m
Including 36.7 gpt gold over 2m from 56.5m

3.99 gpt gold over 17m from drill hole DDMAN20-77 from 166.3m
Including 8.43 gpt gold over 4m from 168.3m

Toronto, Ontario--(Newsfile Corp. - November 23, 2020) -  Roscan Gold Corporation (TSXV: ROS) (FSE: 2OJ) (OTC Pink: RCGCF) ("Roscan" or the "Company") is pleased to announce positive diamond drill results (Figure 1) from an additional 16 holes totaling 3,241 meters (m) at its Southern Mankouke Discovery. DDMan-20-79 (Figure 1 and Figure 2) intersected 5.35 gpt over 53m from 126.5m, including 12.5 gpt over 12m. Additionally, hole DDMan-20-77 intersected 3.99 gpt over 17m from 166.3m in Fresh Rock (Figure 3).

This very important discovery at Southern Mankouke has a strong magnetic signature and we plan to conduct a detailed interpretation of the recently completed air borne geophysical survey to assist in further drilling.

#Zinc @LME hits 18-month high of $2,793/t Friday-outperforming high-flying Dr. #Copper-on supply squeeze, even as stealth stocks build

Shanghai zinc trades like a steel derivative -

Zinc soars on supply squeeze even as stealth stocks build

Andy Home

(The opinions expressed here are those of the author, a columnist for Reuters)

LONDON (Reuters) - Zinc has emerged as the unlikely star performer in the London Metal Exchange (LME) base metals suite.

LME three-month zinc CMZN3 hit a fresh 18-month high of $2,793 per tonne on Friday and is even outperforming high-flying copper.

The trigger for the latest leap higher was news that the Gamsberg mine in South Africa is shuttered until further notice while a search continues for two miners missing after an accident.

This is another unexpected hit to a raw materials supply chain already wrecked by COVID-19 mine lockdowns.

Demand, meanwhile, is running strong in China, where zinc has been sucked into steel's bull orbit.

#Gold futures on #COMEX Are Meant For Trading- Not Delivery. Yet, Holders are asking for gold deliveries as if there was no tomorrow!!

YTD total of 215'114 deliveries means that COMEX has been forced to deliver more gold in the first 11 months of 2020 than in the entire 5-year period 2015-2019.

We have lately written on Gold Futures contracts on the COMEX in New York and how the big boys, with the help of the PPT (?), depressed the gold price. Attachment 2 displays the daily gold futures chart by Jim Wyckoff from Kitco. 

 

First of all, the COMEX futures market was never intended to be utilized as a physical delivery platform. Over the years, only around 1% of the outstanding contracts at the end demanded physical delivery.

 

For 2015 to 2019 total deliveries were 208'616 COMEX gold contracts. That's an average of 41'723 per year and a grand total of 648.86 metric tonnes of gold.

 

However, that changed this year, especially since April 2020. As attachment 1 indicates:

 

April - 31,666 contracts

June - 55'102

August - 49'026

October - 34'894

 

A year-to-date total of 215'114 deliveries means that the COMEX have been forced to deliver more gold in the first 11 months of 2020 than they had in the entire 5-year period 2015-2019.

 

As of November 18, there are still 247'965 Dec20 contracts still open. Of  course the vast majority of these will be closed and/or rolled forward. However, it can be assumed that another 50'000 contracts will ask for delivery. That would bring the year-end total near 265'000 contracts or a whopping 825 metric tonnes. That's more than the entire official gold holdings of Japan (765 t), the Netherlands (612 t) or India (557 t).

 

The question is: How long can they keep this up. Are we getting soon new rules? From Canada, we got already an answer. The product of Exchange Traded Receipt (ETR's) issued by the Canadian Mint, a government entity, where holders of ETR's could demand physical delivery from 10'000 ETR's on, got amended. Effective, November 2, 2020, the Mint will be permitted to provide ETR holders redeeming for physical gold bullion with substituted products in certain circumstances. They must see what is happening on the COMEX and they don't want to be in a situation where they are faced with an issue they cannot deal with it. 

 

The First Notice Day on the COMEX December gold futures contracts is Monday, November 30. The Phantom of the Opera hit hard already on Monday, November 9, driving the gold price down around US$ 100 per ounce. They took the excuse the announcement that an experimental COVID-19 vaccine was successful. Are we getting a second wave on the downside?

 

Source: Craig Hemke, TF Metals Report

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#Wallbridge $WM.to Intersects 5.07 g/t #Gold Au over 100.6 metres, including 29.03 g/t Au over 7.30 metres in the Tabasco-Cayenne Zones

Nice infill Hole! 

This high-grade core forms a central portion of the larger shear corridor which has so far been drilled over a strike length of 800 metres and a vertical depth of 1,000 metres.

Fenelon Gold System In-fill and Expansion Drilling

The results from drill hole FA-20-181 reported today, fill in a large drilling gap in the core of the Tabasco-Cayenne zones and provide a strong, wide intersection with a much higher “metal factor” (grade multiplied by width = 510-gram metres of gold) than the nearest drill holes 40 to 60 metres away (see Figs. 1, 2 and 3):

FA-20-181	5.07 g/t Au (4.20 g/t Au Cut) over 100.6 metres, including
	6.32 g/t Au over 35.10metres, which further includes 16.26 g/t Auover 7.65 metres in the Tabasco Zone; and
	29.03 g/t Au (17.03 g/t Au Cut) over 7.30 metres in the Cayenne Zone

Wallbridge Intersects 5.07 g/t Au over 100.6 metres, including 29.03 g/t Au over 7.30 metres in the Tabasco-Cayenne Zones

"Given the outperformance of the last ten years, a #gold investor can no longer afford to ignore #Bitcoin"

Goldbug´s Achilles Heel as of October 15th, 2020. Source: Midas Touch Consulting, © Florian Grummes 2020

As in the last few months again and again in time announced, Bitcoin should and likely will substantially outperform gold. The two-and-a-half-year correction in the Bitcoin/Gold ratio ended this summer in favor of Bitcoin. Since then, Bitcoin has clearly outperformed gold and the Bitcoin/Gold ratio should be on its way towards 1:10. Given the outperformance of the last ten years, a gold investor can no longer afford to ignore Bitcoin.

Bitcoin/Gold Ratio

$RUP @RupertResources Drills 4.3g/t #Gold Over 158m From 152m, 3.9g/t Gold Over 141m From 239m and 7.5g/t Gold Over 52m at Ikkari

Rupert Resources Drills 4.3g/t Gold Over 158m From 152m, 3.9g/t Gold Over 141m From 239m and 7.5g/t Gold Over 52m at Ikkari

TORONTO -- (Business Wire) --

Rupert Resources Ltd (TSX-V: RUP) ("Rupert" or "the Company") reports new drill results of a further six holes from its ongoing exploration programme at the Ikkari discovery – part of the 100% owned Pahtavaara Project in the Central Lapland Greenstone Belt, Finland.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201112005584/en/

Figure 1. Location of new discoveries and base of till anomalies at Area 1 (Graphic: Business Wire)

The Company has confirmed extension to 290m depth of the central part of the Ikkari discovery (as identified to date) as well as demonstrating further broad zones of mineralisation in the east, with continuity of grade in these broad zones of mineralisation persisting towards surface, above previously reported results. Furthermore, multiple very high-grade mineralised gold zones have been identified.

Highlights

• Hole 120086 intersected 8.6g/t over 9m from 115m (89m vertical) and4.3g/t gold over 158m from 152m (115m vertical) including 11.1g/t gold over 11.4m*. 17 individual assays are greater than 10.0g/t gold. The hole targeted near-surface mineralisation above previously reported hole 120061 and confirms high-grade mineralisation over thick widths towards surface
• Hole 120094 intersected 3.9g/t gold over 141m from 239m (182m vertical) including 9.8g/t gold over 24m from 355m* (274m vertical) which is the deepest intercept to date and demonstrates high-grade continuity to this depth
• Hole 120089 intersected 6.4g/t gold over 63m from 134m (121m vertical) including 7.5g/t over 52m from 147m*and is a scissor hole to 120086, again confirming grade continuity across a broad zone in an eastern section of the 550m strike length. The hole also intersected a further 65m grading 2.8g/tfrom 244m
• Hole 120059extension intersected 3.1g/t Au over 68m from 273m (220m vertical) including 6.2g/t over 16m* further confirming a broad mineralised zone above previously reported hole 120071, which demonstrates thickness of the mineralised zone on this section (figure 3b)
  
  * highlights only - see tables 3 and 4 for details

James Withall, CEO of Rupert Resources commented "We continue to expand the mineralised envelope and the extremely high-grade results today over good widths at the eastern extent of the drilled strike of 550m demonstrate the robust nature of the Ikkari mineralising system. The higher-grade component at Ikkari is now shown to persist to at least 290m vertical. Drilling continues to test further step-outs at depth and to the east."

View the full release here: https://www.businesswire.com/news/home/20201112005584/en/