Month: August 2022

Letter — Stop gold mining to preserve the environment – Farmville  Farmville Herald

1. Gold dips nearly 1% as robust U.S. jobs data eases recession concerns  CNBC
2. Gold prices down as U.S. economy created 528K jobs in July  Kitco NEWS
3. Gold Drops After US Jobs Data Keeps Fed on Hawkish Track  Bloomberg
4. Gold ends lower as yields, dollar rebound after strong U.S. jobs report  MarketWatch
5. Gold Drops After Strong Jobs Report  The Wall Street Journal
6. View Full Coverage on Google News

Ending irrational fears and expectations in gold and silver  Kitco NEWS

World Series of Poker Player Charged With Spoofing Gold Market  Bloomberg

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Rising geopolitical tensions helped push gold prices up this week. The monetary metal ran to $1,800 an ounce on Thursday. As of this Friday recording, gold is pulling back some and comes in at $1,781 now – up 0.4% for the week.

Turning to the white metals, silver shows a weekly loss of 2.5% to bring spot prices to $20.08 an ounce. Platinum is up 3.6% since last Friday’s close to trade at $948. And finally, palladium prices are unchanged for the week to check in at $2,182 per ounce.

Saber rattling by the Chinese Communist Party stoked investor fears early in the week. CCP officials felt aggrieved by House Speaker Nancy Pelosi’s visit to Taiwan, which China claims as part of its territory. They performed provocative military exercises around the island.

But the Biden administration moved to appease the Chinese regime by vowing that it wouldn’t support independence for Taiwan.

Geopolitical analysts are speculating that Beijing might try to lash out against the United States economically. China and Russia now seemingly have incentive to work more closely together to undermine U.S. interests in international trade. That may ultimately mean trying to dethrone King Dollar as the world reserve currency.

Other countries are also trying to wean their economies off U.S. dollar dependence. An African nation notorious for its bouts of hyperinflation is now encouraging its citizens to save and transact in gold instead of dollars.

Yes, believe it or not, the central bank of Zimbabwe is now advocating for gold. Here’s a report from DW News:

News Reporter #1: $100 trillion, that’s one followed by 14 zeros, that is Zimbabwe’s biggest denomination note from 2008. That year, saw Zimbabwe in hyperinflation, hit one of the highest levels in history with the Zim dollar, essentially not even worth the paper it was printed on. Now, inflation is down to 200%, still one of the highest rates in the world. Zimbabwe’s Central Bank is introducing gold coins.

News Reporter #2: Zimbabwe’s new gold coin is named after the country’s world-famous Victoria Falls. The reserve bank is billing it as a magic bullet in the fight against the country’s inflation problems. The central of bank’s head says the aim is to provide Zimbabweans with a safe store of value and reduce demand for U.S. dollars.

Will Zimbabwe become a model for sound money adoption? Probably not.

The Zimbabwean economy is a mess and most Zimbabweans couldn’t afford to buy even a gram of gold, let alone a one-ounce coin. Moreover, the government isn’t likely to make its currency actually redeemable in precious metal.

But other governments around the world with much larger economies could take similar steps to promote gold as an alternative to U.S. dollars. Chief among them are Russia and China.

The U.S. Senate further irked Russia this week by voting to add Finland and Sweden to NATO. Critics warn the move could make World War III more likely.

In the meantime, the West continues to ramp up economic sanctions against Moscow. This week Switzerland announced sanctions on Russian gold. The move bans the importation of gold sourced from Russia.

While now locked out of Switzerland and other major financial hubs, Russia is unlikely to be deterred from engaging in precious metals transactions. It is a major producer of gold, platinum, and palladium.

Its central bank has been a major accumulator of gold. And since war-related sanctions were imposed, Russia has begun demanding that some of its trading partners pay in rubles or gold rather than dollars or euros.

The world monetary order could be in the process of re-centering around gold in a big way. When mutual trust among nations erodes, gold becomes the ultimate standard of value. It is universally recognized and entails no credit risk when exchanged in physical form.

The same can be said for silver, which is a more practical currency for ordinary citizens engaging in everyday transactions.

While a gold coin could in theory be used to buy gas or groceries, silver coins are handier for such purchases. One-ounce silver coins together with fractional sized silver can be used to closely match actual retail prices for goods and services.

Silver products need not be issued by a government mint such as the U.S. Mint in order to be used legally in barter transactions.

Some investors prefer to own Silver Eagles since they are considered to be legal tender. But Silver Eagles currently command exorbitant premiums over privately minted silver rounds along with silver coins minted by other countries.

Over the past couple years, the U.S. Mint has been perpetually failing to produce enough coins to keep up with demand. It blames a shortage of blanks for the backlog. Yet other mints around the world don’t seem to have a problem sourcing silver for minting.

The U.S. Mint has a statutory duty to produce coins in sufficient quantities to meet demand. But Mint officials apparently feel no particular urgency to fulfill their obligations to silver investors.

Our recommendation to silver stackers at this time is to avoid American Eagles and other U.S. Mint products that carry excessive premiums. Better values can be found in coins produced by other government mints, such as Canada and Australia. Even better values can be found in privately minted rounds and bars that sell for minimal premiums above spot when obtained through Money Metals Exchange.

Well, that will do it for this week. Be sure to check back next Friday for our next Weekly Market Wrap Podcast. Until then this has been Mike Gleason with Money Metals Exchange, thanks for listening and have a great weekend everybody.

Source: David Talbot   08/04/2022

Seabridge Gold Inc.’s copper-rich expansion at its KSM project in the Golden Triangle gets one analyst to raise his target price for the company.

Seabridge Gold Inc.’s (SEA:TSX; SA:NYSE.MKT) new preliminary economic assessment (PEA) laying out a copper-rich expansion to its KSM project in British Columbia will provide “considerable value” to the company, Red Cloud Securities analyst David Talbot wrote in an Aug. 4 research note.

As a consequence, Talbot maintained his Buy rating on the stock and raised his target price from CA$49.60 to CA$51 per share.

“This add-on project requires minimal infrastructure capital, as roads and other infrastructure, including a mill, would have already been built,” Talbot wrote.

The PEA covers the Iron Cap and Kerr deposits, part of Seabridge’s 100%-owned Golden Triangle project that also includes three other deposits covered by a preliminary feasibility study (PFS) released in June. It has a post-tax net present value at a 5% discount rate of $5.8 billion, an internal rate of return of 18.9%, and payback of 6.2 years. It also adds an additional 39 years to the existing 33-year life of KSM.

“While KSM is a world-class deposit, we believe it would likely need investment from a senior miner/strategic to help Seabridge overcome the capital spend and associated financial risk,” Talbot wrote. “Additional resources and potential production from copper-rich underground deposits help provide optionality to any potential partner.”

The 33-year PFS is to be followed by the 39-year PEA, but the analyst said it was likely some high-grade copper production “might be pulled forward to be blended with earlier production.”

The average annual production for the PEA is estimated at 368,000 ounces gold (Au), 366 million pounds copper (Cu), 1.8 million ounces silver (Moz Ag), and 0.4 million pounds molybdenum (Mo).

Initial capex for the PEA is estimated at $1.5 billion, with sustaining capital of $12.8 billion over the 39 years of the mine.

Development of the initial Iron Cap block cave will likely start in 2051, and open pit construction at Kerr could begin a year later, Talbot said.

The analyst said he based his Buy rating and increased target price on Red Cloud’s net asset value per share (NAVPS) estimate of CA$72.70 (formerly CA$62.03).

The NAVPS and target are predicated on the development of KSM, a successful joint-venture arrangement, project financing, and production by the first quarter of 2029, Talbot wrote.

[SMNLINSERT]

Disclosures

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 

Disclosures for Red Cloud Securities Inc., Seabridge Gold Inc., Aug. 4, 2022

Red Cloud Securities Inc. is registered as an Investment Dealer in all Canadian provinces and territories, and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document.

Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosure Details: The analyst has visited the head office of the issuer or has viewed its material operations. The issuer paid for or reimbursed the analyst for a portion or all of the travel expense associated with a visit.

Companies with Buy, Hold or Sell recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and are followed by “(S)” to reflect the higher degree of risk associated with it. Additionally, our target prices are set based on a 12-month investment horizon.

Dissemination: Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password.

Analyst Certification: The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: SEA:TSX; SA:NYSE.MKT,
)