Saturday, 18 January 2020

TNR Gold Royalty On Los Azules Copper With McEwen Mining: Copper Is Learning Mandarin Again - M&As In The Copper Space Could Surge In 2020.




Any bad peace is much better than the best war. After signing the trade war deal China is expected to be back on the buying spree of all best copper projects they can find. It is very important to mention here that during the signing ceremony POTUS indicated that now we have his own "Whatever It Takes" put for the markets. His comments about AIG "being left without life support during the Great Financial Crisis" will go far if you consider them together with his new nominations to the FED. 




There is still a big room for the QE pump of liquidity, particularly, if FED will be formally accused of treason and pronounced to be "the enemy of the state" for not allowing negative rates "like in Europe". 




Behind the scenes, copper M&A preparations were ongoing all the time and timing could not be better as we discussed. Now even Minister from Chile is talking about the artificially low prices of copper due to the trade war tensions and rumours are swirling about M&A deals being in the making once the major uncertainty is removed from the market. 




Financial Post is giving us a glance at these discussions in industry boardrooms and experts are sharing their views on the potential acquisition targets which are driving the valuations in the markets already. All rumours must be confirmed by the announcements and there is no need for the unwarranted speculation: even Barrick Gold is openly talking about the quest for "Strategic Copper" in search for the growth. We have discussed already how the mining world is really small.




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. 





"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production. 
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."

Now investors can do their own research and start putting the different pieces into their own valuation puzzle. Rob McEwen has prepared Los Azules to the potential major JV deal in the copper space. Agreements between Argentina and Chile are signed in order to advance the Los Azules project and the new road is being under feasibility study. The new approach by Rob McEwen which he has articulated in order to jump-start the development is making a huge difference for any potential partners:

"McEwen Mining conference call, Robert McEwen -- Chairman and Chief Owner
Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward."

Needless to say that any potential deal will bring the new valuation drivers for all parties involved: McEwen Mining and TNR Gold, as the project will be moving into the feasibility and construction stage. Development of Los Azules will provide enormous economic benefits for San Juan, which is ready to support this kind of responsible mining business for the benefit of proud people of Argentina. I have been calling Argentina the potential Energy Power House for many years, it can finally coming all together now.







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.





Financial Post:

M&As in the copper space could surge in 2020, especially if Chinese companies come to the party

"Copper open interest — or the amount of unsettled derivative contracts — is rising at fastest pace since 2016 U.S. election"



Thursday, 16 January 2020

Dr Ryan D Long: TNR Gold Corp. Analyst Call – Working Towards Securing Its Next Strategic Partner.



I would like to thank Dr Ryan D Long for his very professional write up on TNR Gold. I have appreciated our call and he has articulated and presented very well his analysis of our business model and his view on the potential of TNR Gold's assets in our portfolio. Management of TNR Gold has not reviewed or edited this article before publication. Please review legal disclaimers on my blog and TNR Gold website.




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.



Proactive:

TNR Gold Corp analyst call – working towards securing its next strategic partner.

Dr Ryan D Long

"Proactive's mining analyst, Dr Ryan Long takes a look at TNR’s royalty portfolio and Shotgun Gold Project.



TNR Gold Corp (CVE:TNR) is an exploration company focused on advancing projects to the resource stage before farming them out to strategic partners.
Kirill Klip is executive chairman of the company; he has more than twenty-five years of entrepreneurial experience, with extensive expertise in the banking, transportation, mining, telecommunications and internet industries. He was formerly a founder and director of International Lithium Corp, and an adviser to the board of Canada Zinc Metals.
TNR currently owns two royalties, both of which are located in Argentina. One is on the Mariana Lithium Project and one on the Los Azules Copper Project. TNR also owns a 90%-interest in the Shotgun Gold Project, located in Alaska, where the company is seeking a strategic partner (Figure1).
Figure 1: Location of TNR’s Projects
Source TNR Gold Corp
TNR currently holds a 1.8% net smelter royalty (NSR) in the Mariana Lithium project, located in the Salta Province of Argentina. The Mariana Project is owned by Ganfeng Lithium Co Ltd (82.754%) and International Lithium Corp (CVE:ILC), which has 17.246%. A preliminary economic assessment (PEA) of the project, completed in November 2018, demonstrated a post-tax net present value of C$192mln and a post-tax internal rate of return (IRR) of 20% using a 10% discount rate (NPV10).
While International Lithium Corp has the right to repurchase 0.9% of the NSR for US$900,000, there is no buy-back provision on the remaining 0.9%. The PEA highlighting average annual revenue of US$143mln over the 25-year mine life for the project and the 0.9% NSR being not subject to buy-back provisions could potentially yield over US$1mln per annum to TNR over 25 years.
TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production.
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years.
The Shotgun Gold Project is located in Southwestern Alaska. The project has an NI 43-101 compliant mineral resource estimate of 705,960 ounces of gold at a grade of 1.06 grams per tonne (g/t) gold. The deposit remains open at depth, below 150m, and along strike, so there is the potential to expand the size of the deposit through the exploration of the immediate area.
There are also many regional geochemical and geophysical targets within the area that have the potential to expand the scale of the project with additional work, making the project attractive to an incoming party.
During 2020 TNR expects to see a feasibility study published at the Los Azules project with a feasibility study at the Mariana project expected imminently. TNR is also continuing to seek a partner for its Shotgun Gold Project, so it promises to be an interesting year for the company."

Powered By Tesla Energy rEVolution: TNR Gold Los Azules Copper NSR Royalty Holding With McEwen Mining Presentation.



We have been talking about these megatrends, tectonic shifts in our society and signs for years, now it is finally happening. Talk is cheap, the money will tell all the story when they will take the position and only after that you will start hearing about "the next unbelievable opportunity". You know, what I am talking about here - I will provide the road maps and a lot of charts, as usual, but you will have to Do Your Own Research and pick up the winners. I know mine.




We have been discussing the very small and interconnected mining world here a lot, it helps us to manage our development risk and to navigate between booms and busts of the commodity cycles:

"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."







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 GEM Royalty Company Powered By Energy rEVolution: Rob McEwen Talks About Gold, Silver And Giant Los Azules Copper Project.




As we have discussed here, the total global mutual annihilation during the Mexican standoff was avoided and algos are driving market crazy to the all-time highs every other day based on the coming headlines. Yield curves are "uninverted" again, "Nothing's gonna stop us now" is blasting off and Gold was smacked on its head but with great difficulty this time. You remember: "fool me once ... and mission accomplished." 




Ray Dalio is throwing into the towel and just calling it as we all have been feeling for a very long time: "The world has gone mad and the system is broken". I would presume that this headline is not the breaking news for us here, but as usual, it is very important who is talking about it this time.




Our brave scientific thesis that QE is back is confirmed now, floodgates are wide open and election cycle pumping machine is blowing hot air in every bubble algos can find. POTUS has got his 3 FED rate cuts and is making his best "Chinese Salami Deal" possible to keep the Titanic Party going. The deal is coming one piece at the time and is all over the place, but as we have noted before: even the absence of war can ignite metals' rally. Copper is cooperating even if still quite hesitantly with our observations and invitation to participate in the fireworks as the main treat for the festive season. 




Social media, AI and algos are driving and following all this exercise at the same time, they can do a lot of things, but solid values are still out of their reach before robots will take over. (Hopefully, by that time we will be really filthy rich with our lithium holdings residing on a secluded island and it all will be not so important.) You cannot code Gold 2.0, print Copper and Lithium. I will throw for your judgement in a couple of years time another brave idea. 




I think that a lot of people will be very surprised how they could miss a generational opportunity of the unique entry point in the best Copper plays they can find now.  




As usual, please never be too excited by the headlines to be carried away from your money, do your own research and you will have to pick the winners. In our particular case, TNR Gold is building The Green Energy Metals Royalty and Gold Company and we have a very interesting update from Rob McEwen himself on Gold and giant Los Azules Copper project. GEM Royalty is holding 0.36% NSR Royalty on the entire Los Azules project and we are ready to meet "The Perfect Storm" in Copper with the blessing of Rob McEwen and his Midas touch this time. 





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."



From McEwen Mining Q3 report:

Los Azules Project, Argentina (100% Interest)
During Q3, we continued to advance permitting efforts, preliminary engineering and cost estimating for the proposed low altitude all year access route.
From McEwen Mining Q3 CC transcript:

Christopher Stewart -- President and Chief Operating Officer

At our Los Azules copper project in Argentina our activity is focused on technical site investigations and permitting work. During the third quarter of 2019 we continued on preliminary engineering and developing cost estimates to advance the proposed low-altitude all-year-around Northern access route for Los Azules. The environmental baseline monitoring work continued along with other items which were identified as necessary to develop a conforming environmental impact assessment submission. The environmental work included geological mapping of the tailings to Amazon.

Jared Chase -- Private Investor -- Analyst
Good morning, Rob.
Robert McEwen -- Chairman and Chief Owner
Good morning, Jared.
Jared Chase -- Private Investor -- Analyst
I have been following you since Gold Corp, and the Timmins area reminds me a great deal of Red Lake. And since we had a nonrecurring problem this year, it will not be repeated. But my interest right now is Los Azules in Argentina, the 26th largest copper mine in the world. Now I didn't know, did you have any assessment of how much silver is in that mine? And to a lesser extent, gold? Because as you know that now, silver is a bi-product of other mines, like copper, lead, zinc, etc. Do you have an assessment how much silver is in that Los Azules mine?
Robert McEwen -- Chairman and Chief Owner
Yes, Jared. There's -- the resources are in the indicated and inferred category, and there's approximately 190 million ounces of silver, albeit it's low grade. There's 5.5 million ounces of gold, again, low grade. And then there is just under 30 billion pounds of copper.
Jared Chase -- Private Investor -- Analyst
That's a lot.
Robert McEwen -- Chairman and Chief Owner
It is a lot.
Jared Chase -- Private Investor -- Analyst
Now...
Robert McEwen -- Chairman and Chief Owner
Yes?
Jared Chase -- Private Investor -- Analyst
As you said, Rob, it's a wild card. But the other question is that these individuals that have been asking is operational. Now as a market person I'm interested in what you've done regarding a $300 million expense from Primero of $35 million CAD 167000 for a great deal in Timmins. That's what impresses me. Okay? Now based on Los Azules there's a few hungry people out there with a lot of money like China and Chile whose demands are adequated and even your partner of many years Hocschild have you been approached by these people? And secondly, could you really state the criteria that you require when you do a deal?
Robert McEwen -- Chairman and Chief Owner
Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward. The PEA that we prepared in 2015 with Hatch engineering envisioned a mine with a 36-year life. This deposit isn't in production. You mentioned the 26th largest. If it were to be in production today it would rank as the 26th largest. And based on the preliminary economic assessment, it would be producing in the first 13 years 415 million pounds of copper a year at $1.14 a pound which would put it in the lowest cost quartile for the industry globally. If -- I heard some projections yesterday about the growth of the Southeast Asian countries, which have a population of aggregate of about 2.4 billion people and China is about 1.3 billion. And at least this forecaster was looking and saying that in the next 10 years Southeast Asia, the Southeast Asian countries will have a GDP equal to China, even if they grow at half the rate China has been growing at. They're urbanizing. They're electrifying. They're going to be needing lots of base metals. Copper is going to be [Indecipherable]. So, I think the outlook for copper is good and China and the Southeast Asian countries are developing their own markets and it's no longer just the place where the Western world outsourced manufacturing. They have their own demands and their societies and economies are growing.
So Los Azules we advanced a lot this year. We got an agreement between Chile and Argentina. It's across the border. We've mapped out roots and had conversations with communities on either side of the border, one going out through Chile to the Pacific. The Northern route would -- dramatic that we've mapped out and are going to begin construction on either late this year or the beginning of next year will permit us to get in on a low-altitude -- lower-altitude route that would be opened 12 months of the year as opposed to what we currently have is a four to five-month window and then extremely expensive snow clearing and probably a very dangerous route in if we were to go in the existing way. So roots, we'll have a video out shortly, showing the mine and how it's going to develop the access. Happy to provide you with an update that we've provided. You want to send me an email or provide your email now? We'll put it up on the web, so that all can see it. And they can see how much work has been done there. What we've been doing is trying to take steps that would de-risk the project and make it more attractive to a potential joint venture partner.
Jared Chase -- Private Investor -- Analyst
Right
Robert McEwen -- Chairman and Chief Owner
A larger balance sheet than we have.

James Elkins -- Private investor -- Analyst
Hi, Rob. This is Carl [Phonetic]. I haven't spoken to you for a couple of years but I've been with the company since it was called US Gold and I participated in the rights offering. And boy I'll tell you what, it's just us slicing down deals in 2011. I don't think I've ever been as worried about the finances to-date. Question for you, as last time we had the Argentina upset regarding the capital control. So we couldn't get money out. So I'm wondering if you're anticipating that to happen again. And secondly, most importantly, I want to know if you've changed your outlook for 5,000 ounces of gold or moved your timetable up a little bit that might help me our a lot. I'll listen for Rob sakes.
Robert McEwen -- Chairman and Chief Owner
Thank you. The Argentina -- currently, we're getting money out of Argentina. The election has just occurred. The new government will go in take power in January. The country is desperate for foreign currency, foreign reserves. They have an export tax on right now. They've been changing some of the banking rules. It hasn't restricted the outflow of cash at this point. I think the government is going to have to show signs and take steps to encourage foreign investment, which the country desperately needs. I'm hoping there's a -- and maybe it's a false hope, but a change in the approach of the government. The government that was defeated was pro-business, but they just found themselves. There was a slight of capital from the country and they had to grab export dollars wherever they could. It's difficult to predict what Argentina is going to do, but looking at their financial situation there, our Los Azules property is one of the large copper deposits -- one of the few large copper deposits, they want to see developed there.
If they're going to attract any foreign capital, they're going to have to be much more accommodating. And in terms of $5,000 yes. I still believe in that. You just look around the world, the amount of debt that's been put in place, the amount of money floating around. The -- if you want to call it, there's a bubble in everything right now, except for the precious metals. And it's coming."



Wednesday, 15 January 2020

Gold In The USA, The Alaskan Elephant Country: TNR Gold Shotgun Gold Project Presentation.



"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."






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.




Gold In The USA, The Alaskan Elephant Country: M&A Deals Are Driving Up The Valuation Of Gold In The Ground.



Finally, the industry is recovering and M&A deals are driving gold valuation in the ground. Years of deep cuts in the exploration budgets have left gold majors with dramatically decreasing mining reserves. McKinsey calls it "Gold Mining Reserves Crisis".




Now the most forward-looking companies are exploring for gold on the exchanges where reserves can be bought still cheaper and, what is more important, with more certainty than exploring for new gold discoveries in the ground. But the time of tax-loss selling and Christmas sales are over. The coming liquidity tide is lifting the boats and today I would like to look at the latest available charts and the valuation trends for gold oz in the ground.




"We have been talking about these megatrends, tectonic shifts in our society and signs for years, now it is finally happening. Talk is cheap, the money will tell all the story when they will take the position and only after that you will start hearing about "the next unbelievable opportunity". You know, what I am talking about here - I will provide the road maps and a lot of charts, as usual, but you will have to Do Your Own Research and pick up the winners. I know mine."




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 mining analysts are applying higher 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. Now, these charts from AuCu Consulting are showing different Averages starting from $42/oz for different stages of resource definition for Exploration Companies. 




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.




As we discussed before, the industry is facing "Gold Mining Reserves Crisis". The 1970s and 1980s were the golden years for gold exploration. "There was at least one 50 MOZ Au discovery each decade and at least ten 30 MOZ Au discoveries. From 2000 industry failed to find any 50 MOZ Au deposits or any 30 MOZ Au deposits." M&A deals are only redistributing the already well-known resources, the industry needs new major discoveries, but giants like Donlin Gold are only a few and far between. 




M&A deals are driving up gold in the ground valuations already and experts are forecasting the further consolidation in the industry. TNR Gold is developing Shotgun Gold project in the Alaskan Elephant country near the giant Donlin Gold project and is looking for a strategic partner to grow together. You can find more information about our Company on the links below.