Friday, 22 November 2019

The Mining Alliance Of Trust: Eric Sprott - Save Canadian Mining, Stop Predatory Short Sellers.




As you already know, the best game requires the fare rules and strict enforcement of them for the benefit of all parties p[articipating in the market place. Thank you, everybody, who started this extremely important action. Thank you, Eric Sprott, for your support of junior mining investors and companies. We need strong powerful leaders to build Canada in the modern investment hub for the real economic growth in the 21st century. 

Return to solid values during the uncertain times makes Gold shining bright and Energy rEVolution will power the rebuilding of the sustainable mining industry. We just cannot allow to miss this chance for all the hardworking people involved in our industry. Mining builds. Naked short selling is cancer killing our junior mining space and I am happy to join all these voices to stop it and build a healthy market in order not only to regain the trust of the investors but nurture the new generations of them.





The Mining Alliance Of Trust: Do Your Own Research - Avoid At All Costs Flying With Kamikaze Pilots.




It is time to return to our conversation about The Mining Alliance Of Trust. We have a lot of regulators in place who are helping to police and organise the market place in Canada. You can find them on my twitter feed. Among others are the British Columbia Securities CommissionInvestment Industry Regulatory Organisation of Canada and Ontario Securities CommissionEvery investor in junior mining must follow them and subscribe to their e-news. Every junior mining company must follow them and invest in a professional Corporate Secretary in order to avoid costly mistakes and not to build fortunes for lawyers instead of their company.

All regulators in Canada are doing a great job and sometimes they are catching bad actors who are too sloppy, but how many still manage to muddy the waters of junior mining for years? We cannot restore the trust and build up the new generation of investors with the existing system. The hard-working geologists who became Executives of Junior Mining Companies in order to pursue their dream do not have a relevant legal and business education and just words IIROC and BCSC on the letterhead can bring them a heart attack. 

On another hand "smooth criminals" wearing expensive ties continue to find their ways to separate investors and their money with "1000 and one" "relatively innocent scams" - buyer beware. This system is not perfect: the good hardworking guys are spending literally millions of dollars on compliance, lawyers and other red tape requirements while "smooth criminals" are gaming the system and still walking from one company to another in the Bay Street jungle. Retail investors are running in herds from one hot tip to another and losing all their money in the process. 

We can and must improve our market place altogether by amplifying this discussion which we started as our initiative as The Mining Alliance Of Trust. On one side, all regulators must be open to the market participants and help them first and advise how to organise efficiently the trustworthy business in junior mining. They should not just seek to punish those who get caught the first time in the crossroads of some innocent mistakes. On another side, companies must really embrace regulations. Here I must say, that from my personal experience, I have only very positive encounters with all regulators, they are all very open and ready to help. We have to make a few improvements just to make it more user-friendly.

The very simple and helpful idea can be the systematic friendly review of the Companies by the regulators in order not just to find what to punish for, but to help these companies properly present their projects and avoid any innocent mistakes. This system is already in place for news releases with IIROC and I do recommend all companies to use it by sending news releases always to IIROC first.




Another very important step can be done with the new industry standard for Corporate Secretaries in Canada. BRE-X scandal has brought us Qualified Person certifications and NI 43-101. But we will not be able to rebuild the trust of the junior mining industry in Canada and bring the new generation of investors if Vancouver will remain The Wild West of mining. I believe that in order to solve this situation Corporate Secretary must be licenced as Auditors and Lawyers. They must be signing every news release on Corporate Material Information Disclosure as QPs do when it is necessary on technical disclosure.




For example, TNR Gold has our Continuous Disclosure, Confidentiality and Insider Trading Policy approved by the Board and Communication Protocols in place when all our news releases are prepared and approved by Corporate Secretary, signed by QP when required and can be released only by Corporate Secretary after being approved by Executive Chairman. But companies and regulators can do only so much protecting investors. Investing is a job and must be taken seriously, it requires very specific skills, discipline and making your homework every day. Respect your money.

Everybody is talking super-smart during the cocktail parties about investing in mining but many are salivating about speculation and investing in the drill holes not in the companies in junior mining. Respect your money. #DYOR. Do Your Own Research and start with people and their history - avoid at all cost flying with kamikaze pilots. You have very different goals. The Same Boat must be the concept which is checked out first - should you even spend more time on your Due Diligence? 




You can find a lot of very important questions for your DD of the mining companies on the charts on this blog. The first and most important: Who are the principals and major shareholders? Are they miners, entrepreneurs or banksters? How long have they been in the mining business? Are they building the junior mining company or financial pyramid where the average investor is lost in the amount of the different debt instruments and "ticking time bomb of delayed dilution"? How management is treating shareholders? Has the company become the candy store for the "super smart" executives syphoning all money back to them as interest payments, fees and commissions? Is the company diluting existing shareholders like there is no tomorrow just to keep it "as going concern"? What is a business plan? What is the burn rate in order to reach the milestones of this business plan? Have the company become a "drilling paradise" when naive investors are waiting for a golden dream intersection while management is drilling through shareholders pockets - spending all the raised money on the drilling by owned by them geological services or drilling company? 





It looks like a lot of questions? But we are talking here about your money - does it deserve your respect? The entry point in any new investment will define the success of your investment. Start with people in order to weed out all the ones where you should not waste your time anymore. As Warren Buffett has brilliantly put it: "You can't make a good deal with a bad person", I think that we can Trust him on this one. 






Tuesday, 19 November 2019

Powered By Energy rEVolution: Bank Says China Inc Has Copper Timing Right.



Even the best charts, like the one from Graddhy, must be confirmed by the real money flowing in the beaten-down mining sector. I would like to share with you today Mining Journal report about new deal makers among copper industry insiders and ongoing M&A behind the trade war headlines:

"Investment bank Jefferies says while most equity investors have been unwilling to buy copper-miner shares because of cyclical risk and big diversified miners have also been reluctant to entertain copper M&A due to "a high level of risk aversion and a focus on austerity and capital returns", Chinese groups were doing deals in the space. 
"The timing is brilliant, in our view," Jefferies said."

All the best companies and the best copper projects will be taken care of and very soon. Energy rEVolution is moving forward in the fast lane. Mass media was literally flooded the last couple of months with major electric cars related announcements. This week Tesla Cyber Truck will be unveiled. Germany is going electric. Tesla Gigafactory number 4 will be located near Berlin and Gigafactory number 3 in Shanghai is already producing Tesla Model 3. Volkswagen is chasing Tesla with 60 Billion euro investments in EVs and even good old Ford is charging electric Mustang for the 21st-century race. 




All these great clean energy and electric cars developments require a lot of copper and lithium. The exponentially growing markets for electric cars and renewable energy are meeting our mining industry which was built in the last century. Major copper mines are 75 years old, the head grade is declining for years and new giant discoveries are few and far between. We are discussing it here at length and you can find more detailed research on the links below.





As usual, it is extremely important who is doing what among the real industry insiders. And they are buying and accumulating stakes in the best copper companies and looking at the best projects for future growth.




Barrick Gold made industry headlines a few weeks ago with its search for growth with "Strategic Copper" and we can see that behind the trade war headlines China Inc is moving methodically forward with its 50 years New Energy Plan. This plan requires military discipline and stealth execution in order to build secure supply lines for strategic metals like copper and lithium for the transition to the post-carbon economy. The question remains rhetorical: are we ready in the West for the Energy rEVolution with our fractured and outdated supply lines for critical metals with a total lack of necessary focus in order to build them between of the quarterly reports?


 


With all our followers we are paying very close attention to this very interesting situation. TNR Gold is holding NSR Royalty on the entire Los Azules Copper in San Juan, Argentina. The "sleeping giant" - as Rob McEwen calls it - is being developed by McEwen Mining. 





Even if not all our dreams will come to materialisation with this Barrick Gold strategic announcement, Los Azules is getting on the radar screens of the major financial players and we have another very important confirmation of our strategy in building green energy metals royalty holdings for TNR Gold. As always, do your own research and you will have to pick up the winners. On the links below you can find a lot of information which can help you with your homework. 





Tesla Energy rEVolution And The Golden Age For Copper: Kirill Klip GEM Royalty TNR Gold Copper Presentation November 2019.




"Always do your own research - I do not honestly know how to prepare to that sad end. In all other potential cases, I can only point out to my personal experience of making the best investments by buying when "blood was almost literally on the streets" like with Tenke Mining starting my acquisitions at CAD 40 cents during the civil war in DRC and following Lukas Lundin with his motto: "politics will change, resources in the best projects will stay". Later, Lukas made a lot of investors of Tenke Mining very happy during his buy out by Lundin Mining at CAD$20 dollars. I have followed him and found TNR Gold many years ago - now we have Los Azules Copper NSR Royalty among our other assets and building The Green Energy Metals Royalty and Gold Company."







Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. Do Your Own Research.





Mining Journal:

Bank Says China Inc Has Copper Timing Right.


Jiangxi Copper, which has been in talks with First Quantum about its Zambia copper assets, is a key stakeholder in new major First Quantum shareholder Pangaea Investment Management. PIM has 10.8% of First Quantum and an option to go to more than 16%.
Investment bank Jefferies says while most equity investors have been unwilling to buy copper-miner shares because of cyclical risk and big diversified miners have also been reluctant to entertain copper M&A due to "a high level of risk aversion and a focus on austerity and capital returns", Chinese groups were doing deals in the space.
"The timing is brilliant, in our view," Jefferies said.
"We do not believe Chinese state-backed companies are concerned about near term cyclical risk. Their focus is more likely on the strategic benefit of controlling large-scale copper resources for decades via acquisitions at low prices during a weak point in the cycle.
"Based on its accumulated equity interest in First Quantum, PIM/Jiangxi may be interested in making a move on all of First Quantum, which would include Cobre Panama as well as the Taca Taca project in Argentina and the Haquira project in Peru. While we do not believe a full takeover is likely, time will tell what the end game is, and FM shares should rerate as what had been a perceived disproportionate downside risk due to balance sheet concerns is now a disproportionate upside risk due to M&A potential."
Jefferies said Chinese companies had been very active in the DRC and Zambia, in particular.
In Zambia, First Quantum has 80% of emerging 235,000 tonnes-per-annum copper producer Kansanshi and 100% of Sentinel, ramping up to 250,000tpa.
"These are the largest copper mines in Africa, and an acquisition of a stake in these assets would greatly increase China's presence in the region," the bank said.
It describes copper as a "coiled spring" with a price highly leveraged to a pick-up in global industrial economic activity as new mine supply can't readily respond to stronger demand.
"The mechanism to balance the market will need to be price."


Friday, 15 November 2019

Gold In The USA, Alaskan Elephant Country: History Lessons - Debt Growing To The Sky, Round Bottoms And Secular Gold Bull Markets.

J.C. Parets


J.C. Parets provided us today with a brilliant history lesson on round bottoms. This time his beautiful charts are applied to our beloved Gold. We are discussing here fundamentals for the new young secular Gold Bull market at length. But a lot of people are very busy, cannot really read anymore and these colourful illustrations are hitting the nerve of those who are still on the quest for something different from fast food for brains served on the Bubble TV.



J.C. Parets 


Historical parallels are unmistakable, 1997 - 2002 round bottom for Gold coincided with the blow-off top of the Internet Bubble and following market crash with the most dangerous words in investing: "This time it's different".




Following up FED's emergency procedures in order to revitalise what was left of the economy in early 2000 have propelled Gold into the first great bull market of the 21st century.




This time around we have an even more interesting situation. All Central Banks are pumping money into the financial system as if it is already after the market crash even before it happened. And this time Central Banks are buying Gold at the same time because they know too well where it's all going from here. 




Global Village is finished, everybody will be for themselves swimming in the icy waters after this last party on Titanic. "The greatest bull market in history" is overextended. This tired bull is having panic attacks after every headline when the imminent "Chinese Salami" deal is not happening again. And he even himself is looking in total disbelief at "the greatest economy in the history" pumped by the QE4 and built on the growing unsustainable pile of debt.




Our new secular Gold Bull is very strong already, it was swimming against the tide of very strong and still rising US Dollar. POTUS is furious, demanding the negative rates as in Europe and will put all FED on trial for treason if the economy will choke up in the election cycle. Can you imagine how this young Gold Bull will be kicking with US dollar finally giving up and going down?    




This time not only all these factors will be driving the demand for Gold entering the potentially explosive stage of the investment cycle, but all prospective buyers will be facing the real problem while competing with Central Banks in order to increase their allocations to Gold. 




McKinsey calls it "The Gold Mining Reserve Crisis". Combination of these historical tectonic shifts in the demand and available supply can easily take out any question marks left about the new secular Gold Bull market as early as in the next few months. 




Nobody knows the future and you all will have to do your own research and pick up the winners. We at TNR Gold are very encouraged with all these recent developments in macroeconomy supporting the very healthy Gold Bull market for years to come and our position with Shotgun Gold project development in the great state of Alaska. All brave scientific observations must be confirmed by people who can put some money on the table to prove it in real life. I am personally following very closely billionaires who are not only buying Gold now but are coming to our Alaskan elephant country in a quest for the next Donlin Gold. You can find this story on the links below.





"Gold Exploration Vital For Future Supply": Gold In The USA - Alaskan Elephant Country.





Wood Mackenzie brings attention to the unfolding "Gold Reserves Crisis" as McKinsey calls it. The growing demand for gold from Central Banks, institutional investors and retail is facing the peak gold production and collapsing gold reserves of the major mining companies. Everything is being set for "The Perfect Storm" in the gold market:

"Exploration budgets were slashed following the fall in the gold price from the highs that were reached in 2011/2012 and they have since failed to recover. The slight rebound in exploration spend we have seen over the past couple of years has largely been focused on brownfield projects and near-mine development. This has not been sufficient to replenish mined ounces and as such peak gold supply is now a very real possibility. Wood Mackenzie."



M&A activity will only redistribute the well known and already developed reserves. The industry needs new major discoveries which are very few and far between. Years of the Gold Bear market have not only burnt alive the whole generation of investors but made mining companies extremely cautious with any exploration and investment activities. All exploration budgets were cut to the bone. The industry suffered not only dramatically reduced exploration budgets, but the return on the money invested in exploration produced very few major discoveries.




After the recent wave of M&A activities among the major gold miners, mining companies are increasingly entering into the JVs with junior miners in order to develop the new resource base:

"To secure their longevity as pillars of the gold industry, we have seen heightened M&A activity and miners focusing on their core assets. Whilst this may help to bolster balance sheets through improved operational performance and realised “synergies”, it seemingly does little to address the problem the industry is facing with regards to how to sustain current production levels. We have, as of late, noticed an uptick in some majors opting to increase their footholds in a select few juniors with promising exploration opportunities.
Agnico Eagle, AngloGold Ashanti, Kinross and Newcrest are actively investing in, or entering into joint-ventures with junior gold companies to create long-term value. Wood Mackenzie"



News about Electrum Group partnering in the new venture with gold mining legends Rob McEwen and Eric Sprott for exploration in Alaska will ignite the new wave of interest to the juniors operating in Alaska. Alaska jumped to the 5th place among safe mining jurisdictions and giant 39 Moz Donlin Gold project is getting more and more attention. Electrum Group is the major shareholder of Nova Gold which is developing Donlin Gold in JV with Barrick Gold.




With gold prices reaching new highs this year some mining analysts are starting to apply the old metrics to value "gold in the ground" when comparing juniors and their projects. Nova Gold was trading as high as $2.4B reflecting its 50% stake in Donlin Gold. It gives more than $120 valuation per oz in the ground. All projects are different, but previous Gold Bull market valuations started at $20 per oz of the inferred resources - the very initial level of resources. New mining deals will give us a better sense of the valuations. Eric Sprott and Rob McEwen will make sure that Alaska is shining bright on the radars of investors now. Increased gold prices are making the great state of Alaska as one of the most attractive in the industry: "leverage in the place where you can keep the rewards". And their own gold price projections can bring real fireworks to the exploration opportunities. As always do your own research and you will have to pick up the winners.





TNR Gold is developing the Shotgun Gold project in the Alaskan elephant country near Donlin Gold mining district. On the links below you can find more information. Barrick Gold received crucial permits to advance Donlin Gold and this new developing mining district in the US can make the promise of "Gold In the USA" providing stable supply feasible again and it can become that solution to "The Gold Mining Reserve Crisis" McKinsey is talking about:
"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR Gold ("TNR") is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."




Tuesday, 12 November 2019

Barrick Gold Chief Eyes Growth In ‘Strategic’ Copper: “It Is More Strategic Than Cobalt, More Strategic Than Lithium. You Can’t Replace Copper On Conductivity. It Is A Modern Metal.”




Financial Times brings us the latest confirmation about the strategic value for red metal which is going green during the Energy rEVolution. Mark Bristow, CEO of Barrick Gold considers copper more strategic than cobalt or lithium for the modern world with ongoing electrification of our transportation and energy. You will find almost the same arguments presented in this article as we are discussing here: ageing mines which are facing rapid acceleration of the renewable sources of energy and electric cars. But, as always, it is the most important who is talking about it and now Barrick Gold brings copper into the mining industry headlines.




For all our followers it will be a very interesting situation. TNR Gold is holding NSR Royalty on the entire Los Azules Copper in San Juan, Argentina. The "sleeping giant" - as Rob McEwen calls it - is being developed by McEwen Mining. Rob McEwen has partnered with Eric Sprott and Electrum Group in the quest for the next Donlin Gold in Alaska - the giant gold project which is being developed by JV between Nova Gold and Barrick Gold. The new venture is making waves in the industry after first drilling results and bought financing last week. TNR Gold is advancing Shotgun Gold near the Donlin Gold in Alaska and looking for a strategic partner to grow together and now Barrick Gold is looking for strategic copper for growth. The mining world is really small once you start counting respectable people with money. 




Discussions about Freeport McMoran being the target of Barrick's copper ambitions will be addressed by professional journalists in the weeks ahead of us. I would like to point out here that Rob McEwen is looking for the strong JV partner to advance Los Azules Copper and has provided a very interesting update on the project and was talking about the truly unique entry point proposition for the potential partner and his vision how to move the giant venture forward. We can only dream for such a partner as Barrick Gold for our Royalty holding at TNR Gold in addition to Rob's Midas touch, but maybe such dreams are not totally out of this world after all.  




Barrick Gold is already well presented in Argentina, they always put asset quality before any jurisdiction challenges and Argentina is willing to move forward with the development of mining projects according to the confirmation from the new President during the meeting with major mining operators in the country. Barrick already has Pascua Lama project in San Juan which is unfortunately located right on the border of Argentina and Chile and even strategic partnership with the Chinese company has been lined up in order to advance this kind of scale opportunities in the region. 




Here Los Azules is coming as a very attractive target both in size and location. McEwen Mining was awarded PAE - a special protocol signed by Argentina and Chile this summer - which allows cooperation between two countries in order to advance this project. Move with Los Azules can provide Barrick with the opportunity to secure the project at the very attractive cost of entry in JV with McEwen Mining and reshape its strategic presence in South America while Pascua Lama can still remain a very expensive landscape exercise with angry Chilean farmers living below it. 




Even if not all our dreams will come to materialisation with this Barrick Gold strategic announcement, Los Azules is getting on the radar screens of the major financial players and we have another very important confirmation of our strategy in building green energy metals royalty holdings for TNR Gold. As always, do your own research and you will have to pick up the winners. On the links below you can find a lot of information which can help you with your homework. 





Tesla Energy rEVolution And The Golden Age For Copper: Kirill Klip GEM Royalty TNR Gold Copper Presentation November 2019.




"Always do your own research - I do not honestly know how to prepare to that sad end. In all other potential cases, I can only point out to my personal experience of making the best investments by buying when "blood was almost literally on the streets" like with Tenke Mining starting my acquisitions at CAD 40 cents during the civil war in DRC and following Lukas Lundin with his motto: "politics will change, resources in the best projects will stay". Later, Lukas made a lot of investors of Tenke Mining very happy during his buy out by Lundin Mining at CAD$20 dollars. I have followed him and found TNR Gold many years ago - now we have Los Azules Copper NSR Royalty among our other assets and building The Green Energy Metals Royalty and Gold Company."







Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. Do Your Own Research.




TNR Gold Los Azules Copper NSR Royalty Holding With McEwen Mining Presentation.





Red Metal Goes Green During Energy rEVolution: Growing EV Infrastructure To Drive Copper Demand For Decades Says Wood Mackenzie.




FT:

Barrick Gold chief eyes growth in ‘strategic’ copper

"Barrick Gold is looking for opportunities to grow its copper business through either exploration or acquisitions, according to its chief executive Mark Bristow. Copper is viewed as having the best fundamentals of any commodity, with demand tipped to rise over the medium term as the world shifts to cleaner energy just as supply is pressured by falling grades at ageing mines. As a result, most of the world’s big mining companies are trying to find ways to increase their exposure to the metal. “Where we have opportunities to secure or expand our copper footprint, we will,” Mr Bristow told the Financial Times in an interview. Hailing copper as a “strategic” metal, Mr Bristow said he was already looking at some exciting copper projects in South America but was also prepared to consider acquisitions. “It is more strategic than cobalt, more strategic than lithium. You can’t replace copper on conductivity. It is a modern metal,” he said. The added attraction of copper for Barrick is that it is often mined alongside gold in the Americas and shares common processing techniques. “It’s processing characteristics are identical to gold,” Mr Bristow said. “You can leach it, you can concentrate it, you can smelt it. It is a very uncomplicated process. It’s the same as gold and it comes with gold.”