?? The Tipster
CEO.CA Presents the Chairman's Briefing - Jan 12.?2023
“The tipster-promoter labours under the delusion that no human being breathes who can resist a tip if properly delivered. He studies the art of handing them out artistically”
―?Edwin Lefèvre,?Reminiscences of a Stock Operator
In Partnership With
Focused on exploring high potential projects in prime silver and gold regions of Mexico, Silver Wolf will begin drilling their Ana Maria project in 2023.Metals/Crypto Prices
Metals/Crypto Prices
Currently pressing multi-month highs, Gold appears to want more high ground. In?last week's Briefing, we stated,?The $1,825 resistance line is suddenly falling like it holds no sway. What was taut resistance at $1825 might now be the support line to watch as we claw our way into the first quarter of twenty-three.
Those with a technical eye—those who like their moving averages—are looking for a potential collision between the fifty and two-hundred-day SMAs (blue and red lines, above chart). Such a collision would trigger the aptly named?Golden Cross. We're nearing that crossover point.
The Producers are also flourishing, printing double-digit percentage gains since the calendar flipped over. A potential Golden Cross is also in play here, as per the widely followed GDX.
The reverse can be said for the US Dollar. What's bad for the Greenback is good for the metal.?We've been watching this bit of drama unfold?since the Dollar topped out in late September, stating,?The Greenback is holding to its historic highs, teasing us with minor breaks below the?50 period SMA, a level we've been watching for confirmation that a top is in. If the US Dollar breaks down substantially (and sustainably) below the fifty, the metal should start a new leg higher.
And waaaaay contrary to the Golden Cross discussed above, the Greenback appears to be in the grip of the dreaded?Death Cross. "Die, you worthless fiat turd!" someone just hollered out behind me...
Buttressing the stack of supportive fundamentals underpinning the metal, central banks around the globe added another 50 (net) tons to their reserves in November, driven in part by the first official purchase by China since 2019—Central Banks Add More Gold in November as China Joins Buying Spree.
China's CB accumulated 1,448 tons of the precious metal between 2002 and 2019 and then went mum. But there's speculation that they kept adding to their horde during their three-year period of silence—data compiled by the World Gold Council showed significant unreported increases in buying activity in Q3 of 2022.
In November, The People's Bank of China announced a 32-ton purchase.
Why are central banks stocking up on gold? We like?Bloomberg's take:
"Bullion does have one crucial advantage: unlike bonds, it doesn’t bind you into a relationship with an unreliable counterparty… In a world where you can trust no one, it makes sense to bulletproof yourself with metal.”
As per usual, the metals' short-term price action will be largely data-sensitive. On deck tomorrow (Jan. 12), the US Bureau of Labor Statistics is scheduled to release December's CPI, which is expected to show an easing of inflationary price pressure to 6.5% from a peak of 9.1% in June.
In Partnership With
Silver Wolf Exploration (TSXV: SWLF | OTCQB: SWLFF)?is focused on exploring high potential projects in prime silver and gold regions of Mexico with a focus on the flagship Ana Maria Property. The mineral claims are located 21 kilometres northwest of the City of Torreón and consists of 9 mining concessions encompassing 2,549 hectares.
The claims are located in area that is known for high grade carbonate replacement deposits (CRDs), and adjacent to many active or historic mining operations with historic workings on the property.
Silver Wolf’s technical team have worked on similar projects with a demonstrated understanding of the jurisdiction and local communities. The team has developed a propriety alteration model to identify the CRD and drill into the best part of the potential orebody. Silver Wolf will be drilling this project in 2023.
Learn more about Silver Wolf at?https://silverwolfexploration.com/?and join the CEO discussion at?www.ceo.ca/swlf.
Global Economic Woes
The World Bank just cut its global growth forecast from 3% to 1.7% for 2023. For 2024, the org expects growth of 2.7%—World Bank warns of a global recession.
“The combination of slow growth, tightening financial conditions, and heavy indebtedness is likely to weaken investment and trigger corporate defaults,” the World Bank said. “Urgent global action is needed to mitigate the risks of global recession and debt distress.”
Concerning this "heavy indebtedness" amidst "tightening financial conditions," the US government is in debt to the tune of $31 trillion. It continues borrowing and spending like there's no tomorrow, running massive deficits month after month—Debt Ceiling Risk Looms For Markets In 2023.
Currently the debt ceiling is a little under $31.4 trillion. U.S. government debt, which is not precisely comparable, since some debt is excluded from the debt ceiling calculation, stands at $31.3 trillion. Most estimates have the debt ceiling being reached in early 2023. We’re clearly getting close.
Corporations are also in a world of arrearage hurt, and the American consumer is buried under trillions of dollars in consumer debt, including more than $1 trillion in credit card dues.
Big sigh. Moving along...
领英推荐
Companies on our Radar Making Headlines
The story behind?Fruta del Norte?(FDN) is a rich one (scuse the pun). If you'll indulge us for a bit of history...
The year was 2006. Down to only a few dollars in its treasury, Aurelian Resources, while testing a blind IP anomaly with the biz end of the drill bit, tagged a staggering 237 meters of 4.14 g/t gold and 8.5 g/t silver. That discovery hole was followed by 205 meters of 8.4 g/t gold, then by a truly staggering 189 meters of 24 g/t Au... results that likely had early-stage investors wheezing into brown paper bags.
Patrick Anderson, Aurelian’s president recalls: “We were nearly out of money…We had no audience. The phone calls weren’t being returned. That was very frustrating. The defining moment, of course, is when we made the discovery.?I checked (the assay results). Re-checked them. Called up the lab to make sure there weren’t any errors,”?Anderson recollects. “I was terrified, terrified that we screwed up somehow.”
With Aurelian common shares trading at mere pennies pre-discovery, Anderson would go on to surrender his flagship asset in?a deal valued at $1.2B. How can you not be romantic about Junior Exploration with anecdotes like this?
Flash forward a decade-plus, with FDN having changed hands one more time, the current deposit owner (Lundin Gold) dropped some compelling values the other day—Lundin Gold beats 2022 guidance with gold production of 476,329 ounces.
Having eclipsed production guidance for a second year in a row, Lundin reported fourth quarter 2022 gold production of 121,139 ounces from FDN, boosting total production to 476,329 ozs for the year, exceeding the high end of the its 2022 guidance of 460,000 oz. . Solid beat.
First Quantum Appeals
The drama surrounding Canadian mine builder First Quantum, and the Panamanian government, continues to wax with the former stating that it would need to suspend a "significant number" of jobs at its?Cobre Panama Mine?if the government forces it to halt operations—Canada's First Quantum could suspend Panama jobs due to gov't order to halt operations.
“If we have to reduce operations to care and maintenance mode, the company will need to take steps to reduce expenditure across the business. We could be forced to suspend a significant amount of our valued workforce.”
And now there's an appeal in the works as First Quantum seeks to thwart Panama's order to halt production at this colossal (copper) mine development project—First Quantum Aims to Appeal Panama Order to Halt Copper Mine.
If Panama locks the gates on First Quantum, even if it's just temporarily, where will they park these things?
Royal Gold Re-raises Cortez Complex Bet
Royal Gold recently made a move to consolidate its royalty position at the world-class?Cortez Gold Complex?owned by Nevada Gold Mines, a joint venture between Barrick Gold (61.5% owner and operator) and Newmont (38.5% owner)—Royal Gold bolsters royalty position at Nevada’s Cortez complex with US$204M deal.
Cortez—THE single largest gold-producing complex in the world —is underpinned by robust geology having produced roughly 27 million ounces since production began in 1969. The deal, valued at $240M, consists of a 0.24% gross royalty covering the producing Pipeline and Crossroads deposits and a 0.45% gross royalty covering the development stage Cortez Hills, Goldrush, Fourmile, and Robertson deposits.
“Cortez is a cornerstone asset for Royal Gold, and this acquisition increases and expands our interest at one of the world’s most prolific gold mines, which is operated by two of the leading companies in the gold business," stated Bill Heissenbuttel, president and CEO of Royal Gold, in a news release.
Thacker Pass Verdict on Deck
The challenges surrounding Lithium Americas'?Thacker Pass Project?in the mining-friendly state of Nevada have been covered in these pages extensively in recent months. Hailed as the largest lithium deposit in the U.S., it could generate enough annual production to match 2020's total global Li output and go a long way toward easing the country's dependence on fossil fuels. But fierce opposition to its development has it idling on the sidelines, awaiting the final say of Chief Judge Miranda Du of the federal court in Reno—Ruling in Thacker Pass lithium mine case expected within months.
Thacker's opponents include a rancher worried about his herd-sustaining groundwater, environmental groups taking issue with the scale of the development plan, and tribal members determined to preserve their ancestors' legacy, lifestyle, and land.
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Du’s options include: 1) overturning Trump’s 2021 decision to green-light the project, 2) upholding said 2021 decision, or 3) kicking it back to the regulators’ court for further review.?“I hope to have a written decision, well, in the next couple of months,”?the judge said.
Chief Judge Miranda Du of the federal court in Reno... No pressure. Put your thinking cap on and toss us a ruling.
Nice Try Hackers
After an extortion attempt by hackers via a ransomware attack at Copper Mountain's?Copper Mountain Mine?on December 27, the company recently announced that the threat is over—Copper Mountain Mining Provides Operational Update on Ransomware Attack.
On January 1, the Company resumed operations of the primary crusher at its Copper Mountain Mine and shortly thereafter, the Company resumed operations at the mill, which was preventatively shutdown following the attack. On January 4, the mill was at full production and the operation is currently being stabilized as the remaining business systems are fully restored.
Hits of the Week
British museum is to remove its most famous exhibit from display -- the skeleton of an 18th-century man popularly known as the "Irish Giant" -?Skeleton of man who dreaded becoming a museum exhibit will finally be removed from display.
Elon Musk has broken the world record for the largest loss of personal fortune in history -?Elon Musk's drop in fortunes breaks world record.