Tuesday, November 21, 2017

Gold Investor Fatigue Is Going to Lead to a Rally of Epic Proportions


Rick agrees that there is capital misallocation on locating and extracting gold from the ground. Precious metals historically have been the most volatile part of the resource market. 

Reasons for this include the narrative around gold and silver being more interesting than say that of copper and coal. There is an allure to it. Thus there is a flaw in the way investors think. Investors that focus on precious metals likely do themselves a disservice. 

Gold itself has been strong this past year in spite of the dollar also being strong. This is unusual and encouraging. Investor fatigue in the gold sector is not the fault of gold it is the investor's fault as they have unrealistic expectations in regards to time. Gold stocks haven’t kept pace this year probably because they did so well in 2016. Gold may never be good enough to satisfy the wild interest of speculators but indeed good enough for contrarians to make a tidy sum. 

Mr. Rule discusses battery metals including nickel and why there are opportunities in the space. He likes cobalt as increased supply is unlikely to reduce the price. There is plenty of available lithium worldwide; however, that demand has increased faster than the processing capacity of the lithium industry. 

Rick feels that outside of urban areas electric vehicles are unlikely to reach operating cost parity with gasoline based cars. Electric cars are unlikely to be practical for long-range transport. Platinum and palladium need to see a global, sustained recovery that increases the number of vehicles sold. 

Since 2008 the market has been constrained worldwide. Demand could rise if China pushes for cleaner diesel fuel standards something they have discussed but so far failed to do.

- Source, Palisade Radio

Saturday, November 18, 2017

Forget the Noise, Look at the Fundamentals, Gold and Silver Are Going Higher


Eric reminisces about the early days of Sprott and where we are today in the gold market. He points out that Gold holds it's value, unlike fiat money. It’s hard at times to recognize that we are in fact in a bull market; however, we are as the TSXVenture Exchange has had an excellent rally over the past couple of years. Price increases in the gold market have a significant impact on the profit line of a company. 

Price is more important than production. We are in an exciting environment for speculation. Some things are speculative, and some investments are well reasoned sure bets with limited down-sides. 

Eric says to look for opportunities where you can get multiples on your money and where the downside risk is less than 50%. If you know you have a good investment than all you have to do is sit back and wait for it to play out. Mr. Sprott discusses several companies that he has a stake in and why he thinks they are good opportunities. 

It’s difficult when you have a winner to determine how much further a stock can go up. You need to look at how much higher it can go up and look for even better opportunities. Try not to get scared out of your trade. Eric doesn’t believe in technical analysis he prefers fundamentals. Company management shouldn’t be conservative when it comes to pricing things they should be realistic. 

As investors, we need to know what is going on. You want to see the future early and know where things are going today not next year. How do you find out what is going on? First of all, you listen very carefully, and you have to read things critically. Connect the dots. 

If the information is in the public domain, you can use it. Sometimes smart people are talking about companies and what they are into. You have to learn to use whatever you can, and the Internet can be a great resource.

- Source, Palisade Radio

Wednesday, November 15, 2017

The Commercials Have Dangerously Shorted Silver in Massive Quantities


With all the fundamental news and the data releases, gold and silver so far look to be set to eek out weekly gains here, and this encouraging, but Eric says that the commercials still aren’t done yet because the open interest is just too high.

There is discussion of the BLS Jobs Report released just today.

Eric and Craig also discuss the latest news of the Fed Chair nomination in Jerome Powell.

Eric points to signs of hyperinflation all around, namely as evidenced by a recent trip and the soaring cost of Bitcoin in fiat dollar terms.

Finally, there is discussion of the mining sector.

Eric is optimistic however, and he says that gold and silver investor’s day in the sun is still coming.


Thursday, November 9, 2017

Rick Rule: Gold Investor Fatigue Is Going to Lead to a Rally of Epic Proportions


Rick agrees that there is capital misallocation on locating and extracting gold from the ground. Precious metals historically have been the most volatile part of the resource market. Reasons for this include the narrative around gold and silver being more interesting than say that of copper and coal. There is an allure to it. Thus there is a flaw in the way investors think. Investors that focus on precious metals likely do themselves a disservice.

Gold itself has been strong this past year in spite of the dollar also being strong. This is unusual and encouraging. Investor fatigue in the gold sector is not the fault of gold it is the investor’s fault as they have unrealistic expectations in regards to time. Gold stocks haven’t kept pace this year probably because they did so well in 2016. Gold may never be good enough to satisfy the wild interest of speculators but indeed good enough for contrarians to make a tidy sum.

- Source, Palisade Radio

Tuesday, November 7, 2017

Eric Sprott: This is the Key to Outperform in the Gold Markets



Craig and Eric start off by discussing what is turning out to be a slow, drawn out flushing of the speculators on the COMEX.

The conversation then shifts to the bad data that keeps coming out, regardless of what the GDP statistics say.

Since we are in the midst of a short-covering flush, and since the covering has been slow and painful, there is discussion about the mechanics of market manipulation.

Finally, discussion shifts towards the mining industry.

Eric discusses simple strategies that investors can use to research companies to look for returns on their investments in the mining industry.


Friday, November 3, 2017

Eric Sprott: Make No Mistake The Resource Bull Market is Back


Eric reminisces about the early days of Sprott and where we are today in the gold market. He points out that Gold holds it's value, unlike fiat money. 

It’s hard at times to recognize that we are in fact in a bull market; however, we are as the TSXVenture Exchange has had an excellent rally over the past couple of years. 

Price increases in the gold market have a significant impact on the profit line of a company. Price is more important than production. We are in an exciting environment for speculation. 

Some things are speculative, and some investments are well reasoned sure bets with limited down-sides. Eric says to look for opportunities where you can get multiples on your money and where the downside risk is less than 50%. 

If you know you have a good investment than all you have to do is sit back and wait for it to play out. Mr. Sprott discusses several companies that he has a stake in and why he thinks they are good opportunities. It’s difficult when you have a winner to determine how much further a stock can go up. You need to look at how much higher it can go up and look for even better opportunities. 

Try not to get scared out of your trade. Eric doesn’t believe in technical analysis he prefers fundamentals. Company management shouldn’t be conservative when it comes to pricing things they should be realistic. 

As investors, we need to know what is going on. You want to see the future early and know where things are going today not next year. 

How do you find out what is going on? First of all, you listen very carefully, and you have to read things critically. Connect the dots. If the information is in the public domain, you can use it. 

Sometimes smart people talk about companies and what they are into. You have to learn to use whatever you can, and the Internet can be a great resource.

- Source, Palisade Radio

Sunday, October 29, 2017

Eric Sprott Just Made A Prediction On President Trump’s Nomination For Fed Chair


Here’s the latest wrap up of macroeconomic fundamental news on the on the economy in general, and the gold and silver markets in particular.

Craig and Eric begin the discussion with the latest moves in the metals markets, with a round robin from the base metals to the precious. Eric wonders which metal will start to show physical tightness first.

Then the conversation shifts to the nomination for Fed Chair. Eric thinks President Trump will choose the absolute most dovish person possible, and with an expectation of early November at the latest for an announcement, we will know soon enough.

Tune in for Eric’s Fed Chair prediction, as well as an update of the gold and silver mining industry.


Wednesday, October 25, 2017

Eric Sprott: Are We Going To See A Shortage Of The Metal Here?


Eric starts off with discussing the latest data releases of the week, and he says that these numbers must be suspect. One can only assume they are massaged and manipulated to paint a certain picture.

Eric moves on to discussing palladium, and he says the palladium market may be thirty years behind in supply. Eric wonders if the shortage is set to break-out with one of the metals and that could bring everything down.

The conversation then moves on to gold and silver. Eric notes that silver is also short on supply nearly half of a year.

Ultimately, Eric hopes the palladium or silver shortage issues can expose the COMEX for the fraud it is.

There is also discussion of the other metals including the base metals.

After going over the macroeconomic picture and the metals markets, the conversation turns political with the latest happenings in the Trump Administration.

Eric says that it will create weakness for the dollar because everything is uncharted.

Finally, Craig and Eric conclude the week with a discussion on the mining shares.

- Source, Sprott Money

Saturday, October 21, 2017

Eric Sprott: I MUST Warn You


Eric Sprott starts off with a warning “I’m grumpy today and we’ll leave it at that”. The focus immediately turns on the negative jobs report, and on top of Eric breaking down just how bad it was, he is especially angry at the precious metals price suppression and market manipulation going on.

The significance of this week’s move is one of the main events the gold cartel uses as cover to smash price. Eric reminds us the key smashing favorites of the cartel are the FOMC meetings and the monthly non-farms payrolls report (which was today).

Now is a great time to be buying gold to take advantage of this latest whack job on the precious metals. Right now they have succeeded in working the price back down, and they do over and over and over again.

Here’s the latest wrap up of macroeconomic fundamental news on the on the economy in general, and the gold and silver markets in particular.

- Source, Sprott Money

Tuesday, October 17, 2017

Eric Sprott: They Do Whatever The Hell They Want To


Eric Sprott is all fired-up on the smashing of the metals this week by the cartel. The constant bombarding of the precious metals market is not easy to watch, but fortunately, Eric says it is not as violent as it could be.

Eric is also amazed at how the financial press is able to spin Trump’s every move. If he is siding with the democrats on something, it is good for the markets, if he sides with the republicans that’s also good for the markets. Eric says for the time being, the central banks are in full control, and they can move markets wherever they want and do “whatever the hell they want to do”.

In this recap, there is also discussion of the economic impacts of the two hurricanes, as well as a look at the macro level of the economy.


Sunday, October 8, 2017

Eric Sprott: You’ve Got To Put Up With It So The Commercials CAN SCALP


Eric Sprott says that the commercials have been scalping at the COMEX hedge funds and speculators to cover their shorts. However, recent events are very bullish for gold and silver prices going forward…

Craig Hemke interviews Eric Sprott on Sprott Money News

Topics this week includes the latest round of flushing of the specs from the markets. The good news is that once the latest flush is finished, the price will again start to rise.

There is also discussion of macro economics pertaining to the Trump Tax Plan and the developing crisis with the pension and retirement systems in the U.S.

Finally, Eric discusses recent mining and exploration efforts that have been going on in Australia, which includes some pretty interesting discoveries along what has long since been a seabed.

Now is a great time to be buying gold to take advantage of this latest whack job on the precious metals. Right now they have succeeded in working the price back down, just as they do over and over and over again as long as the paper scheme goes on...

- Source, Sprott Money

Thursday, October 5, 2017

Bull Market In Gold Is Just Beginning

“In terms of the near-term on gold, Eric, I’m never fussed about these types of pullbacks. My own feeling going back 40 years is that the most important determinant of the gold price is faith in the US dollar. This faith is expressed by the US 10-Year Treasury, and the delta between the yield on the US 10-Year TIP and the US 10-Year Treasury.

If you believe that past is prologue, that is if you believe that the gold price is going to be primarily determined by faith in the US 10-Year Treasury, and you observe that the US 10-Year Treasury has been in a bull market since 1982, and that as a consequence the yield has fallen from 15.6% to 2%, I think you’re struck with the fact that the bull market in treasuries is closer to the end than to the beginning. Which means that the bull market in gold is closer to the beginning than the end.

If gold sells for $1,300 or gold sells for $1,350, neither price point is of any particular interest to me. I hold physical gold because it’s a medium of exchange that’s simultaneously a source of value. And a $20 move, $30 move, or a $50 move in either direction isn’t even background noise from my point of view. I’m in this for the long-term because gold is headed a lot higher than what it is trading for today.”

- Source, Rick Rule of Sprott Asset Management, via King World News

Monday, October 2, 2017

Rick Rule On Comments From Paulson & Co. About Gold Miners, Plus What’s Next For Gold

Today one of the wealthiest street smart pros in the business spoke with King World News about the comments from Paulson and Co. criticizing the gold mining industry as well as what to expect from the gold price going forward.
Eric King: “Rick, the comments about the mining industry coming from Paulson and Co. were fascinating. Your thoughts on what unfolded.”

Rick Rule: “Well, I think its hugely useful what he is proposing. Marcelo Kim was proposing that some of the bigger mining investors in the world, ourselves included, form a shareholders council — sort of like the World Gold Council — and advocate for change among the major mining companies. I think this is so important, Eric, because the change needs to come from us (investors)…

“If you look back to what started the current sort of paradigm around gold stocks, in my opinion it was the move in the 1970s of the gold price from $35 an ounce to $850 an ounce. And despite that incredible move in the bullion, many of the gold shares generated even larger returns. The consequence of that is that investors have looked at the gold mining industry to provide them one thing, which is leverage to the gold price. Now, amusingly, when you ask a gold company to exhibit leverage, what you are really asking them to do is be marginal because the high cost producer gets the best margin increase from an increasing gold price."

- Source, King World News, Read More Here

Friday, September 29, 2017

Eric Sprott: A Group of Suckers That Get Wiped Out All The Time


Eric Sprott says that Fed meetings are one of the two key cover events used to really whack gold and silver prices. Eric says that now is a good time to be buying physical, but those playing the paper games will get wiped out again. Here’s the latest…

The commercials are disgustingly more coordinated than ever. They are both long and short paper gold and paper silver in the markets, and they have been playing this game for years.

Now is a great time to be buying gold to take advantage of this latest whack job on the precious metals. Right now they have succeeded in working the price back down, and they do over and over and over again.

The significance of this week’s move is one of the main events the gold cartel uses as cover to smash price. The other being the monthly non-farms payrolls report.

Here’s the latest wrap up of macroeconomic fundamental news on the on the economy in general, and the gold and silver markets in particular.

- Source, Sprott Money

Tuesday, September 26, 2017

A wild theory and a bit of gold has sparked a 500% rally in this Canadian gold explorer

Quinton Todd Hennigh has spent 13 years scouring the Earth for clues to back a hunch: that the world's biggest gold resource has lost siblings elsewhere on the planet.

Now, the president of Novo Resources Corp. thinks he may have found a counterpart of South Africa's Witwatersrand in the ancient red rocks near Australia's northwest coast. In July, his company zeroed in on a gold find that's confounded geologists and sparked a 500-per-cent surge in the explorer's share price.

The first test on land south of the coastal town of Karratha looked good. Employing two men, a metal detector and a jack hammer, Vancouver-based Novo extracted gold nuggets as long as 4 centimetres from an exploration "trench" little more than a half-metre deep. That tiny sample hinted at ore grades that could be among the highest of any operating mine in the world.

Mr. Hennigh, who's worked as a geologist for Newmont Mining Corp. and Newcrest Mining Ltd., isn't screaming bonanza yet. "Can I say 100 per cent that this will turn into a mine right now? No, I don't know," he said in a phone interview, acknowledging that hard work remains to determine if watermelon-seed-like specks of gold can be economically mined.

Still, the potential upside is seen by some as huge.


- Source, Globe and Mail

Sunday, September 24, 2017

Precious Metals Are Hugely Manipulated, But Eventually They Will Lose Control

Eric discusses the recent gains in gold and silver. In 2016 stocks went up 160% in six months, we could be looking for something similar in the gold sector. It’s a tiny part of the overall market that could explode quickly.

The dollar index had support at the 93 level, but it seems to have broken to the downside. If you look logically at the U.S. financial situation, you will realize that they are bankrupt. There will be a shocking wake-up call at some point when people realize things are unsustainable and pensions can’t be paid out.

There is a lot of chaos happening in politics in Washington, and it doesn’t seem like much will be accomplished. Foreign countries are going to continue selling U.S. dollar treasuries. It’s not ridiculous to think that gold can’t go many multiples higher. The way the system has evolved is a good reason to hold gold for the next decade.

Eric discusses the ICO frenzy in cryptocurrencies and why he feels that there are too many different versions of cryptos. He prefers gold and silver but thinks cryptocurrencies may have a place especially if they find a way to tie themselves to gold and silver.

He expects the market to move similar to 2001 he expects it to be volatile. He says “I am a huge believer that metals are manipulated by central authorities when they lose control we could be looking at a sustained gigantic bull market in precious metals.”

Mr. Sprott discusses Novo Resources (TSX.V: NVO) and why he is excited about the potential. He finds the geology of the site to be quite fascinating.


Thursday, September 21, 2017

Forced Selling Creating EPIC Opportunities: Eric Sprott & Keith Neumeyer


The demand for junior precious metals mining company stocks is soaring, and as a result VanEck's GDXJ is being forced by stringent regulations into rebalancing - forced selling to reduce positions that have become too large, which is creating tremendous opportunities. As Eric Sprott says, "There's too much interest. Isn't the funny thing? There's so much interest that the stocks are going down! It's the most ironic situation that we've ever been in, but there will just be new vehicles created. " Keith Neumeyer & Eric Sprott join me to discuss this, the precious metals manipulation, the problems at the LBMA and much more. Thanks for tuning in.


Monday, September 18, 2017

The Recent Action in Gold and Silver Broken Down



Eric Sprott returns this week to discuss the latest moves in gold, silver and the mining shares.

- Source, Sprott Money

Friday, September 15, 2017

A New Bull Market is Well Underway



This week we're joined by John Embry, longtime Chief Investment Strategist for Sprott Asset Management. John discusses the recent surge in gold prices and why he believes a new bull market is well underway.

- Source, Sprott Money

Monday, September 4, 2017

Eric Sprott: Gold to $5,000 and Then on to $10,000 per Ounce


Eric discusses the recent gains in gold and silver. In 2016 stocks went up 160% in six months, we could be looking for something similar in the gold sector. It’s a tiny part of the overall market that could explode quickly. The dollar index had support at the 93 level, but it seems to have broken to the downside. If you look logically at the U.S. financial situation, you will realize that they are bankrupt.

There will be a shocking wake-up call at some point when people realize things are unsustainable and pensions can’t be paid out. There is a lot of chaos happening in politics in Washington, and it doesn’t seem like much will be accomplished. 

Foreign countries are going to continue selling U.S. dollar treasuries. It’s not ridiculous to think that gold can’t go many multiples higher. The way the system has evolved is a good reason to hold gold for the next decade. Eric discusses the ICO frenzy in cryptocurrencies and why he feels that there are too many different versions of cryptos. 

He prefers gold and silver but thinks cryptocurrencies may have a place especially if they find a way to tie themselves to gold and silver. He expects the market to move similar to 2001 he expects it to be volatile. He says “I am a huge believer that metals are manipulated by central authorities when they lose control we could be looking at a sustained gigantic bull market in precious metals.”


Saturday, August 19, 2017

Bonterra Resources Has Eric Sprott, Kinross Gold as Investors


In this interview with SmallCapPower at the recent Formula 1 Capital Conference in Montreal, Bonterra Resources Inc. (TSXV: BTR) Corporate Development Head Todd Hanas talks about Bonterra’s promising gold projects on both sides of the Ontario/Quebec border. Find out more about Bonterra Resources’ upcoming resource estimates by watching our video interview.

- Source, Small Cap Power

Tuesday, August 15, 2017

Sprott Energy Fund joins exodus from Canada’s energy patch


Foreign oil producers aren’t alone in beating a retreat from Canada’s energy sector. In an interview on BNN, Sprott Asset Management Portfolio Manager Eric Nuttall, who manages the $146.3 million Sprott Energy Fund, said the energy investment landscape in the United States is much more attractive due to fewer regulatory headaches.

“We’ve taken our capital out of Canada, largely,” he said. “There’s such profound sentiment headwinds as a result of both provincial and federal government [measures.] Whether its carbon taxes, royalty regime changes and pipeline takeaway issues: we don’t get that in the U.S., we get the same commodity exposure, with equally good fundamentals without all that noise.”

Nuttall said his fund is currently about 85 per cent weighted to the United States, the largest exposure in its 14-year history.

“I just got sick of having to come on shows and talk about bloody pipeline takeaway capacity,” he said. “A company drills a great well, well great, are you going to have a pipeline [to] put the volume of oil or gas through? It was utter stupidity for us to not be able to build a pipeline after 12 years or 10 years of review, where in the U.S, in Texas, it takes you six to nine months to get a permit and get shovels in the ground.”

Nuttall said multiple levels of government need to take decisive action, lest the issue becomes more severe.

“We as a nation have to fix this, it’s a large part of our overall economy, and capital is fleeing: my capital has been fleeing,” he said. “When you look at the majors selling out oil sands, Petronas not going ahead with LNG projects, these should all be like shocking warning signals to our federal and provincial governments, and yet there just seems to be a total apathy.”

“It’s beyond my imagination why it’s not becoming more of a national priority.”


- Source, BNN

Saturday, August 12, 2017

The Latest US Political Turmoil and GDP Numbers


This week, Eric Sprott discusses the latest US political turmoil and GDP numbers. He also addresses the latest trend in gold prices and physical demand.

- Source, Sprott Money

Tuesday, August 8, 2017

The Latest Economic News and the Impact This Has on Metals


This week, Eric Sprott discusses the latest economic news and the impact this has on gold and silver prices.


Friday, August 4, 2017

The Ongoing Central Bank Market Interventions


This week, Eric Sprott discusses the latest economic news as well as the ongoing Central Bank market interventions.


Friday, July 21, 2017

A TOTAL REVERSAL In Silver



This week, Eric Sprott discusses the how the U.S. political situation and falling dollar might impact the prices of gold and silver.

- Source, Sprott Money

Friday, July 14, 2017

It’s Been A STUNNING Reversal - Eric Sprott Breaks Down Historic Silver COT


With Silver Prices Popping Back Above $16, Are the Commercials Ready to GUN the Metals Higher?

Eric Sprott Breaks Down the “STUNNING STUNNING Reversal” in the Silver COT…

- Source, Sprott Money

Monday, July 3, 2017

Eric Sprott: This Thing Could Come Apart In A BIG Hurry!


Billionaire Eric Sprott Warns A “Financial TSUNAMI” is Coming. The question is, will the system be able to stay together, or is it all going to come crashing down on our heads?

The only one true protection is gold and silver.

- Source, Sprott Money

Tuesday, June 27, 2017

Eric Sprott - It’s Incredible What Could Happen Here


“The Bond Market’s Calling Bull**it on the Fed!”

Legendary Silver Investor Eric Sprott Breaks Down the Gold and Silver Markets in the Wake of This Week’s FOMC Rate Hike.

- Source, Sprott Money

Saturday, June 24, 2017

Decisions in Washington Are Directly Impacting Gold and Silver


This week, Eric Sprott is discussing the troubles in Washington and how this is impacting the prices of gold and silver.

Tuesday, June 20, 2017

Eric Sprott: How the FED's Recent Announcements Will Effect Gold and Silver


Eric Sprott discusses the latest statement from the Federal Reserve and how this might impact gold and silver prices in the weeks ahead.

- Source, Sprott Money

Saturday, June 17, 2017

The latest US jobs Report and How it May Impact The Fed's Plans


This week, Eric Sprott discusses the latest US jobs report and how it may impact The Fed's plans to hike the Fed Funds rate later this month.

- Source, Sprott Money

Wednesday, June 14, 2017

Sprott Lifted Position in Seabridge Gold

Eric Sprott increased its stake in Seabridge Gold Inc (SA) by 15.71% based on its latest 2016Q4 regulatory filing with the SEC. Sprott Inc bought 49,769 shares as the company’s stock declined 8.47% while stock markets rallied. The hedge fund run by Eric Sprott held 366,489 shares of the basic industries company at the end of 2016Q4, valued at $2.99M, up from 316,720 at the end of the previous reported quarter. Sprott Inc who had been investing in Seabridge Gold Inc for a number of months, seems to be bullish on the $571.42M market cap company. The stock rose 2.49% or $0.25 reaching $10.3 per share. About 371,950 shares traded. Seabridge Gold, Inc. (USA) (NYSE:SA) has declined 18.80% since June 2, 2016 and is downtrending. It has underperformed by 35.50% the S&P500.

Coldstream Capital Management Inc increased its stake in Visa Inc (V) by 789.76% based on its latest 2016Q4 regulatory filing with the SEC. Coldstream Capital Management Inc bought 21,829 shares as the company’s stock rose 5.74% with the market. The hedge fund held 24,593 shares of the business services company at the end of 2016Q4, valued at $1.92M, up from 2,764 at the end of the previous reported quarter. Coldstream Capital Management Inc who had been investing in Visa Inc for a number of months, seems to be bullish on the $221.96B market cap company. The stock rose 0.73% or $0.69 reaching $96.1 per share. About 5.68 million shares traded. Visa Inc (NYSE:V) has risen 20.29% since June 2, 2016 and is uptrending. It has outperformed by 3.59% the S&P500.

More notable recent Seabridge Gold, Inc. (USA) (NYSE:SA) news were published by: Globenewswire.com which released: “Seabridge Gold Confirms Sale of Castle-Blackrock Claims to Columbus Gold” on February 22, 2017, also Globenewswire.com with their article: “New Study Finds Significant Further Gains for Seabridge Gold’s KSM Project” published on October 06, 2016, Streetinsider.com published: “Seabridge Gold, Inc. (SA) Reports Unfortunate Death of Board Member Douglass” on April 12, 2017. More interesting news about Seabridge Gold, Inc. (USA) (NYSE:SA) were released by: Seekingalpha.com and their article: “Why Seabridge Gold Won’t Be Producing Anytime Soon” published on June 07, 2016 as well as Seekingalpha.com‘s news article titled: “Seabridge Gold: Deep Kerr Falls Short” with publication date: October 18, 2016.

Sprott Inc, which manages about $3.27 billion and $1.17 billion US Long portfolio, decreased its stake in New Gold Inc Cda (NYSEMKT:NGD) by 1.58 million shares to 31,750 shares, valued at $111,000 in 2016Q4, according to the filing. It also reduced its holding in Tahoe Res Inc (NYSE:TAHO) by 446,594 shares in the quarter, leaving it with 1.05 million shares, and cut its stake in Apple Inc (NASDAQ:AAPL).

Coldstream Capital Management Inc, which manages about $1.42B and $614.55 million US Long portfolio, decreased its stake in Vanguard Index Fds (VB) by 9,008 shares to 65,121 shares, valued at $8.40 million in 2016Q4, according to the filing. It also reduced its holding in Vanguard Index Fds (VNQ) by 109,070 shares in the quarter, leaving it with 79,648 shares, and cut its stake in Ishares Tr (MUB).

Investors sentiment increased to 1.05 in 2016 Q4. Its up 0.12, from 0.93 in 2016Q3. It is positive, as 86 investors sold V shares while 540 reduced holdings. 132 funds opened positions while 525 raised stakes. 1.69 billion shares or 1.50% more from 1.66 billion shares in 2016Q3 were reported. Veritable Lp has 70,667 shares. Florida-based Raymond James Svcs Advsrs Inc has invested 0.34% in Visa Inc (NYSE:V). Psagot Investment House Limited reported 8,572 shares or 0.03% of all its holdings. Harvey Inv Co Limited Liability Company holds 0.04% in Visa Inc (NYSE:V) or 2,666 shares. Aristotle Capital Mgmt Ltd Limited Liability Company reported 2,700 shares or 0% of all its holdings. Charter Tru Com holds 0.16% or 18,744 shares. Freestone Capital Ltd Liability Corporation has invested 0% of its portfolio in Visa Inc (NYSE:V). 421,609 were reported by Waters Parkerson & Limited Liability. Lateef Invest Mngmt Lp, California-based fund reported 1.05 million shares. Ww Investors invested in 33.33M shares. Credit Agricole S A invested in 1.78M shares or 0.45% of the stock. Svcs Automobile Association, a Texas-based fund reported 3.30 million shares. 6.37M are owned by Allianz Asset Mgmt Ag. Strs Ohio holds 0.88% or 2.56M shares. Oregon Public Employees Retirement Fund, a Oregon-based fund reported 441,399 shares.

Among 23 analysts covering Visa Inc. (NYSE:V), 18 have Buy rating, 0 Sell and 5 Hold. Therefore 78% are positive. Visa Inc. had 44 analyst reports since July 21, 2015 according to SRatingsIntel. JP Morgan maintained the stock with “Overweight” rating in Friday, August 14 report. The rating was maintained by Stifel Nicolaus with “Buy” on Friday, February 3. S&P Research downgraded the shares of V in report on Tuesday, July 28 to “Hold” rating. The stock of Visa Inc (NYSE:V) has “Hold” rating given on Tuesday, September 1 by Vetr. The company was maintained on Tuesday, October 25 by UBS. The firm has “Mkt Perform” rating by FBR Capital given on Friday, July 24. The firm has “Outperform” rating given on Tuesday, November 3 by RBC Capital Markets. The stock of Visa Inc (NYSE:V) earned “Outperform” rating by RBC Capital Markets on Friday, July 24. The stock has “Buy” rating by Sterne Agee CRT on Thursday, December 17. The stock of Visa Inc (NYSE:V) has “Outperform” rating given on Thursday, October 22 by Wells Fargo.

More notable recent Visa Inc (NYSE:V) news were published by: Seekingalpha.com which released: “Visa Is The Exception To The Rule” on May 29, 2017, also Seekingalpha.com with their article: “Visa: This Payments Powerhouse Is Not Done Yet” published on May 29, 2017, Seekingalpha.com published: “Warren Buffett Stocks In Focus: Visa” on May 31, 2017. More interesting news about Visa Inc (NYSE:V) were released by: Zacks.com and their article: “Are Options Traders Betting on a Big Move in Visa Inc. (V) Stock?” published on June 02, 2017 as well as Nasdaq.com‘s news article titled: “Visa Inc. (V) Ex-Dividend Date Scheduled for May 17, 2017” with publication date: May 16, 2017.

Since February 6, 2017, it had 0 insider buys, and 2 selling transactions for $11.71 million activity. On Monday, February 6 the insider HOFFMEISTER JAMES H sold $957,390.

- Source, Flint Daily

Saturday, June 10, 2017

Goldmoney Announces Investment, Partnership in UK Bases Lend and Borrow Trust

Toronto-based Goldmoney, a gold-based payments and savings platform that allows users to acquire, store, and spend gold that is stored in a secure vault, has announced a partnership with Isle of Man, United Kingdom-based investment company LBT Holdings. Goldmoney is also making an undisclosed private investment into the company.

“We are delighted to invest in this early stage, and potentially revolutionary, peer-to-peer lending model and provide our precious metal infrastructure to LBT clients.”

LBT Holdings is the parent company of the Lend & Borrow Trust Company (LBT), an online platform that offers auction-rate peer-to-peer lending and borrowing.

Through the partnership, eligible Goldmoney clients with Full Holdings will be able to access LBT auction rates and earn interest income from loans fully secured by precious metal collateral. Borrowers will be able to monetize their precious metal holdings in their choice of five national currencies.

Goldmoney said the investment will give it the ability to nominate a board member and provide metal dealings and storage solutions to LBT’s clients. The company also said that clients with a Goldmoney Holding, which consist of UK residents and businesses, may gain access to LBT’s auction rates and earn interest income from secured loans.

“It’s a small balance sheet investment,” said Josh Crumb, chief strategy officer and CFO at Goldmoney. “We have a meaningful enough stake, and good partners that we can scale up with later. It’s the kind of deal we want to do at this stage in our business, one that helps us grow our core ecosystem without taking on a lot of the early stage risk.”

Goldmoney’s investment into LBTH includes common shareholders Eric Sprott, and James Turk, lead director and chairman at LBT. The company says that LBT’s offerings will first be available to businesses and UK residents at roll out, and other countries will be added over time.

“Goldmoney was founded on a mission to provide clients with unparalleled access to precious metals ownership with minimized counterparty risk,” said Roy Sebag, CEO of Goldmoney. “LBT has a similar goal of providing clients with an alternative for their national currency savings. LBT currency deposits have no banking counterparty risk, a revolutionary idea and one I believe many clients seek in the prevailing artificially-low interest rate environment known as return-free risk. We are delighted to invest in this early stage, and potentially revolutionary, peer-to-peer lending model and provide our precious metal infrastructure to LBT clients.”

In December, Goldmoney added the Royal Canadian Mint’s precious metal storage vault to its vault network. The company was also listed on the Toronto Stock Exchange in April 2016.

- Source, Beta Kit

Wednesday, June 7, 2017

Billionaire Eric Sprott Builds Position In Gold Mine


Now having lots of acreage doesn’t necessarily mean it’s all ripe with nuggets of gold just waiting to be picked up, but in Kerr Mines (TSX: KER) (OTC: KERMF)’s case, its damn near that rich – and WAY UNDERVALUED in share price, which we’ll explain further on.

The [property] is fully-permitted with extensive infrastructure in place, meaning Kerr Mines has a 450 ton-per-day mill already onsite and the tunnels going down to the high-grade gold ore are already there.

Now to its ore bodies.

There are 942,000 ton of Measured and Indicated gold ore with a grade of 10.3 grams per ton. That’s some high-grade gold!!! On the Inferred side, there are another 335,000 ton with a grade of 12.2 grams per ton. That’s in the soon-to-be further explored “South Zone”, which has GREAT POTENTIAL TO EXTEND THAT ORE BODY. But in the Proven and Probably category, Kerr Mines (TSX: KER) (OTC: KERMF) has 910,000 ton with an average grade of 8.8 grams per ton. So, what does that spell? MONEY, BABY…. MONEY!!. Now you can see why the great Eric Sprott got his checkbook out and bought into the project.

There are many factors that determine the value of a mine. The grade of gold is obviously first in determining an investment into a gold stock like Kerr Mines. But with such HIGH GRADES of gold, from Proven, Measured and Indicated to Inferred, the numbers are OFF THE CHARTS.

So, is Kerr Mines a takeover target? Perhaps, but not from the likes of the majors, like Barrick Gold (NYSE: ABX), Newmont (NYSE: NEM), or GoldCorp (NYSE: GG). Why? Too small… but with Kerr permitted with a mill in place and the tunnels opened up to access the three zones previous not mined and the heavy hit Kerr Mines (TSX: KER) (OTC:KERMF) discovered in the South Zone, its most likely going to be in production next year. In fact, the feasibility study needed to go into production is expected in the fourth quarter of this year. So that tells us that Kerr Mines intends to go into production.


- Source, Financials Trend

Monday, May 29, 2017

The Cartel Could Get Busted THIS MONTH: EVERYTHING’S Been Reversed In 3 Weeks For Silver!


“Silver Could EXPLODE – The Cartel Could Get Busted THIS MONTH”

Eric Sprott Explains How Everything Has Been Reversed in 3 Weeks For Silver…


Monday, May 15, 2017

Eric Sprott Gives Exhaustion BUY ALERT For Silver


This week, Eric Sprott discusses the recent selloff in the precious metals but also notes some "light at the end of the tunnel".

- Source, Sprott Money

Monday, May 8, 2017

Eric Sprott Warns Of Major Sell Off In Gold Mining Stocks As Top ETF Is Forced To Rebalance Holdings


The demand for junior precious metals mining company stocks is soaring, and as a result VanEck's GDXJ is being forced by stringent regulations into rebalancing - forced selling to reduce positions that have become too large, which is creating tremendous opportunities. 

As Eric Sprott says, "There's too much interest. Isn't the the funny thing? There's so much interest that the stocks are going down! It's the most ironic situation that we've ever been in, but there will just be new vehicles created. " Keith Neumeyer & Eric Sprott join me to discuss this, the precious metals manipulation, the problems at the LBMA and much more. Thanks for tuning in.


Friday, May 5, 2017

This Has Never Happened Before - Eric Sprott Breaks Down Historic Silver Rout



Hear Eric Sprott discuss the current selloff in gold and silver prices while adding perspective with an eye toward the future.

13 Days In A Row: Eric Sprott Breaks Down the “Salami Slicing” of Silver by the Shorts, and Explains that “This Has Never Happened Before”.





Monday, April 24, 2017

What They’re REALLY After Is Silver!



In A Critical Update, Eric Sprott Dissects This Week’s Mauling of Silver:

What They’re Really After is Silver. The HUGE Short Position in Silver, if it Ever Got Out of Control, Every Dollar Up is $1 BILLION in Losses. They’re Trying to Get it Under Control, But They Can’t Get the Longs to Capitulate!

- Source, Sprott Money

Monday, April 17, 2017

Latest US jobs report and the potential impact of the pending FOMC rate hike


Eric Sprott discusses the latest US jobs report and the potential impact of the pending FOMC rate hike on gold and silver prices.

Friday, April 14, 2017

Eric Sprott discusses the ongoing political battles in Washington and how they might impact gold


This week, Eric Sprott discusses the ongoing political battles in Washington and how they might impact gold and silver prices.

Monday, April 10, 2017

Eric Sprott discusses the latest moves by the US Fed, in the context of a slowing economy


This week, Eric Sprott discusses the latest moves by the US Fed, in the context of a slowing economy and rising inflation, and how this should lead to higher precious metals prices in 2017.

Saturday, April 1, 2017

Gold Financier Takes a Stake in Sudbury Junior Miner

Northern Superior Resources announced that a numbered company controlled by gold financier Eric Sprott will make a $2 million investment in the Sudbury junior miner, and is out to raise $2.5 million more.

"Northern Superior looks forward to the involvement of Mr. Sprott and his associates with the Company,” said Northern Superior president-CEO Tom Morris in a Feb. 13 statement. “These financings could raise up to $4,500,000, allowing Northern Superior to aggressively advance exploration on the Company's key properties in Québec and Ontario. We look forward to the initiation of a series of exciting exploration programs on our two key properties over the coming months."

Northern Superior Resources has started a 30-hole, 9,000-metre drilling program on its Croteau Est gold property in north-central Quebec to examine the eastward extension of mineralization linked to the company’s Croteau Bouchard Shear Zone which has an inferred gold resource of 640,000 ounces of gold.

Morris said defining that extension “will not only lay the foundation for increasing the resource already reported, but could potentially lead to the discovery of other areas of mineralization.”

Sprott’s company is acquiring 40,000,000 units at a price $0.05 per unit with each unit comprised of one common share and one non-transferable share purchase warrant exercisable at a price of $0.075 per share for a period of two years from date of closing.

Sprott is entitled to nominate one person to Northern Superior’s board, so long as he maintains a minimum 10 per cent interest in the company.

Northern Superior has a portfolio of gold and diamond projects in Quebec and Ontario, including the Ti-pa-haa-kaa-ning gold property in northwestern Ontario, Croteau Est and Lac Surprise gold projects in central Quebec, and Ville Marie diamonds in west-central Quebec.


Tuesday, March 28, 2017

Eric Sprott - This Presidency Should Be VERY GOOD FOR GOLD!


This week, Eric Sprott assesses how the new Trump Administration in the U.S. might affect gold and silver prices in 2017.

- Source

Thursday, March 23, 2017

Eric Sprott On Trade Wars With Mexico & China: It’s Scary


Eric Sprott Analyzes Trump’s Trade War With Mexico (and likely China Next): “It’s scary to be honestYou could see Russia, China, even the EU stop buying US bonds… ” How Will This Affect Gold and Silver?

- Source

Sunday, March 19, 2017

Silver Just Did Something That “Shocked” Billionaire Investor Eric Sprott


Eric Sprott Has Good News For Silver Bugs: It Looks Like 2016 All Over Again – It’s A Great Time To Be In the Game! The Billionaire Explains Silver Just Did Something That “Shocked” Him.

- Source

Tuesday, March 14, 2017

Sprott Asset Management’s 2017 Outlook For GOLD

During the past three months, market sentiment has shifted on fundamentals dominating short-term trading in gold markets. Consensus views have gravitated towards further Fed tightening, rising Treasury yields and a strengthening U.S. dollar. In the body of this report, we have outlined our reasoning as to why each of these assumptions may be short-sighted.

In our view, cumulative and immutable imbalances (debt levels, valuations, dollar liquidity) will soon test recent sentiment shifts, we expect decidedly in gold’s favor. While we are not stocking canned goods, oiling muskets, or bottling water, we are suggesting that a modest portfolio allocation to gold has never been more prudent.

A consistent theme at investment conferences during 2016 has been the compression of investment returns. Especially in the pension and endowment world, very few institutions are achieving chartered rates of return. While institutions might have expected historically to achieve real rates of return of 5% on equities and 2 ½% on bonds, the realities of achieved returns during the past several years are tracking (at the high end) roughly half these historical levels.

We believe the root cause for compressed returns is far simpler than much of the sophisticated quantitative analysis we have encountered. The United States has a structural debt problem, and the Fed has employed ZIRP for eight years to forestall rationalization of this untenable debt load. As every student of economics is aware, marginal returns gravitate towards marginal costs.

The longer the U.S. economy operates in a ZIRP environment, the closer to zero will migrate the sum-profit-total of U.S. economic agents. Recognizing this, the Fed has telegraphed for years a desire to normalize rate structures. Consensus has recognized the Fed’s poor track record in achieving rate normalization but, in our view, has failed to grasp the true impediment to higher rates.

It is not popular to suggest U.S. debt levels cannot sustain higher rates, but we believe these are the root facts. During the past decade, global productivity has collapsed to its lowest level in the modern financial era. Optimists shrug off these statistics as outdated and unreflective of vast productivity enhancements enabled by the internet, I-Phones and social media. We cite this example (which we will develop further in our February report) as a metaphor for a broader condition in global asset markets.

Most investors sense that there are looming risks in financial markets and troubling impediments to healthy global growth. Yet, the relentless performance of the S&P 500 Index has reinforced the inclination to ignore these nagging concerns. In the institutional arena, excessive bearishness or even adoption of defensive and hedged strategies can handicap performance and introduce career risk. To us, an allocation to gold is a powerful tool to help insulate portfolios from potential dislocations in a complicated financial world. In essence, a gold allocation can provide a bit of cheap insurance to any ongoing investment program.

We continue to marvel at gold’s lack of sponsorship in the institutional arena. During the past hundred years, even a modest portfolio commitment to gold has been proven to push total portfolio returns further to the right along return frontiers for any reasonable asset mix, generating equal returns with less risk and standard deviation, or superior returns with equivalent risk and standard deviation, versus identical portfolios without a gold investment component (World Gold Council).

During the past 16 years, gold’s non-correlated and market-leading returns have provided invaluable portfolio alpha in an increasingly challenging investment environment. During the next several years, mounting monetary, economic and financial imbalances, which appear to be approaching important tipping points, suggest gold is a portfolio-diversifying asset worthy of serious consideration.

We view corrections in gold markets during the fourth quarter of 2016 as fairly standard retests of early 2016 breakouts from established downtrends. To us, underlying fundamentals suggest significantly higher gold prices during the next several years.

Gold’s Prospects in 2017 and Beyond

Trumponomics

Over the long run, we believe the gold investment thesis rests squarely on monetary, economic and financial imbalances which continue to be resolved to the measurable benefit of investors choosing to denominate a portion of their wealth in assets which can neither default nor be debased. Over the short run (one-to-two years), gold’s performance can be impacted by consensus views on a wide array of market variables.

We would highlight five such variables as motivating the lion’s share of trading patterns in gold markets: Fed policy, the U.S. dollar, 10-year Treasury yields, U.S. economic performance and U.S. equity risk premiums. It is unusual for any single event to impart significant impact on all five of these variables simultaneously. The Trump election has certainly proven to be such an event!

Trump’s victory has unleashed one of the strongest expressions of business and financial optimism in history, starkly affecting variables central to gold’s short-term trading patterns. While optimism is never a bad thing, we suspect financial markets are reflecting classic emotional blow-off.

Investors, admittedly parched for a more normalized economic world unfettered by QE and ZIRP, have, in our view, temporarily lost sight of immutable realities such as debt, valuation, debasement and mathematics.

Should our suspicions bear out that reigning euphoria proves short-lived, recent market dislocations will provide excellent entry points for a wide array of investment assets. Given our confidence in underlying fundamentals relevant to precious-metals, we view the Q4 back-up in gold markets as a rare opportunity to achieve a significantly discounted entry point in gold’s unfolding advance.

- Source, Sprott

Thursday, March 9, 2017

Silver Soars Through $18/oz As Trump Meets With Abe


A Mini Squeeze Has Sent Silver Prices Up 50 Cents This Morning. Billionaire PM Investor Eric Sprott Breaks Down The Action.

- Source

Sunday, March 5, 2017

With Gold & Silver Surging, Billionaire Eric Sprott Warns It’s Off the Scale!


Eric Sprott Warns “It’s Off the Scale!” Is THIS About To Drive the Mainstream into Buying Gold and Silver?

- Source

Thursday, March 2, 2017

Eric Sprott - Gold & Silver ROAR As Option Expiry Ends


Early Stages of a Short Squeeze? With Options Expiry Over, the Naked Shorts Have Released Gold and Silver to ROAR HIGHER.

- Source

Saturday, February 18, 2017

Eric Nuttall's Top Picks

Market Outlook:

Despite being in a multi-year bull market for oil, herd mentality has taken over as fears around a potential Border Adjustment Tax by the Trump administration have led to the pummelling of Canadian oil stocks with many falling by 15 per cent+ this month. We do not believe the U.S. president will push through a BAT that includes oil, as it would increase the average household’s gasoline expense by $300-$400/year and would be highly politically unpopular and counterproductive to his re-industrializing of the American economy. As such, we view the risk-reward as extremely favourable for aggressive capital deployment. We are “all in” and believe we own stocks that have the potential to appreciate by over 60 per cent over the next 18 months. This month reminds us of January 2016 when people were panicking, stocks were imploding, and our will was tested from being fully invested. How did it turn out? The Sprott Energy Fund rallied by over 140 per cent from the lows seen in that month. Now is not the time for panic; it is the time for disciplined investment and a

SPARTAN ENERGY  – 

We believe a very large U.S. seller has been responsible for the stock falling by 16 per cent this month and is the poster child for what has happened to Canadian oil stocks due to worries around the Border Adjustment Tax. The stock now trades at 4.9X 2018 EV/CF on our commodity assumptions versus formerly trading at 8.0X. We see over 65 per cent upside in the stock over the next 18 months. SPE is a very low-risk way to play our multi-year bullish view on oil.

BIRCHCLIFF ENERGY – 

Birchcliff Energy is at the beginning of a multi-year internally-funded ramp in production as it grows its core Montney production and explores a new liquids-rich zone. The company has never been in a better position to create long-term shareholder value given a much improved balance sheet, strengthened inventory, and exploration upside. The stock trades at 5.3X 2018 EV/CF at $3/mcf gas and we have an 18-month $13.30 target which equals over 60 per cent upside.

TRICAN WELL SERVICES -

Trican Well Services is benefitting from the beginning of the inflection in pressure-pumping pricing. Prices are up 20 per cent from the bottom and we believe could go up another 30 per cent to 40 per cent by year-end. They also monetized a portion of their interest in a U.S. pressure pumper called Keane which the street is mispricing. Giving a mark-to-market valuation on Keane, which we believe is worth $2.10/share, TCW is trading at 4.3X 2018 EV/EBITDA when a mid-cycle valuation is 7.5X. This would imply upside of over 50 per cent.it of patience. The Sprott Energy Fund is the #1 Energy Fund in the country on a one- and three-year basis as of December 30, 2016.


Tuesday, February 14, 2017

Eric Sprott to acquire a strategic interest in Northern Superior Resources

Northern Superior Resources Inc

* Eric Sprott to acquire a strategic interest in Northern Superior Resources, Northern Superior initiates concurrent financings

* Northern Superior Resources Inc - has agreed to make a $2 million investment in Northern Superior

* Northern Superior Resources Inc - company is undertaking concurrent financings to raise up to an additional $2.5 million

* Northern Superior - proceeds from ft offering are intended to be used to support exploration programs on Ti-Pa-Haa-Kaa-Ing gold- silver- copper property.

- Source, Rueters

Tuesday, January 24, 2017

Eric Sprott 'driving the bus' on Kirkland Newmarket merger

Kirkland Lake Gold (KLG.TO) has agreed to join forces with Newmarket Gold (NMI.TO) in an all-stock deal worth about $1 billion.

Retail and institutional investors are likely to take a shine to both the deal and the new gold company, according to Andrew McCreath, BNN Markets Commentator and founder of Forge First Asset Management.

“This is a deal that is trying to make a stock more interesting to more shareholders … and also to lower the cost of production of the combined entity with a higher production base,” he said on Thursday.

Kirkland Lake Gold shares will be exchanged at a ratio of 2.1053 Newmarket shares per Kirkland share, the companies announced in a press release. Once the deal closes, Newmarket shareholders will receive 0.475 shares of the combined company for each share held. Kirkland’s shareholders will emerge with 57% ownership of the merged company. The transaction is expected to close in the fourth quarter of this year, pending approvals.

Newmarket Gold has been on an aggressive expansion spree with the help of Eric Sprott – the noted gold bug. Sprott holds more than nine per cent of Newmarket’s shares and is also the chairman of Kirkland Lake Gold. “Clearly, Eric Sprott is driving the bus on making this transaction work,” said McCreath.

Newmarket CEO Douglas Forster has been trying to build the company into a mid-tier gold producer for the past year. Shares of Newmarket are up more than 250 per cent over the past year – that surge will likely dissuade another company from trying to make a competing bid for the company, according to McCreath, who thinks the popularity of the stock will likely make the deal appealing for traders. “I think this will be a nice little feast day for the merger arb funds out there that like these kind of deals.”

The higher production and lower cost profile will also make the deal appealing to a broader share of gold investors, added McCreath, whose Forge First doesn’t hold shares in either of the merging companies.

The new company will have total gold production of about 500,000 ounces per year from Kirkland’s flagship Macassa Mine in Northern Ontario as well as the Holt, Holloway and Taylor gold mines – all in northeastern Ontario. Newmarket currently operates three gold mines in Australia.

“Macassa is not exactly an easy mine,” McCreath pointed out. “There’s probably not a lot of upside unless gold goes way the heck up from here.”

- Source, BNN

Friday, January 20, 2017

Eric Sprott bets millions on a gold producer and 10 out of 10 analysts agree it's a buy

Gold bug Eric Sprott’s increased stake in Newmarket Gold Inc. has renewed interest in the junior producer, which operates three mines in Australia. Investors are now looking for the Vancouver-based miner to fulfill its promise to boost production while controlling expenses and not overpaying for acquisitions, as the price of gold sits stubbornly at about $1,200 (U.S.) an ounce.

Shares of Newmarket, which merged with Crocodile Gold Corp. in July, have risen by about 13 per cent since the company said on Monday that Mr. Sprott bought 10 million shares to boost his ownership stake to 8.7 per cent. He purchased the stock from Luxor Capital Partners LP, which is still Newmarket’s largest shareholder, now with a 28.7-per-cent stake.

All 10 analysts who cover Newmarket have a “buy” recommendation. The analyst consensus price target over the next year is $3.03 (Canadian), which is about 23 per cent above its current price of $2.46. The stock is up about 82 per cent so far this year.

“As far as junior producers go right now, this is our favourite in the gold space,” said Raymond James analyst Chris Thompson, who has a $3.30 target on the stock, calling the valuation “cheap” compared with its peers in the junior mining space.

Mr. Thompson said the increased investment from legendary investor Mr. Sprott “provides a vote of confidence” in the company’s management and future valuation.

Newmarket’s board includes well-known executives such as mining financier Lukas Lundin and Randall Oliphant, the executive chairman of New Gold Inc. and chairman of the World Gold Council.

“We consider this ‘new kid on the block’ to be underowned by traditional institutional resource fund managers, and to have above-average potential to qualify for addition to several precious metal indices over the next 12 months,” Beacon Securities analyst Michael Curran said in a note. His target is $3.25.

Last month, Newmarket reported an increase in reserves and resources at its flagship Fosterville mine, which could extend its production life.

BMO Nesbitt Burns analyst Brian Quast increased his target on Newmarket to $3 from $2.75 as a result.

The company has no debt and is benefiting from the weak Australian dollar, when compared with the U.S. currency. Gold is priced in U.S. dollars, which means the company receives more Australian dollars per ounce of gold sold. Operating costs are also paid in Australian dollars, which helps to increase margins.

Risks for the stock include a strengthening Australian dollar, the high cost of production in Australia, as well as the potential of overpaying for acquisitions, which has been an issue for gold producers in recent years after the price of gold plummeted from its record above $1,900 (U.S.) in 2011.

“It’s always a little risky and generally M&A activity is not looked upon favourably unless it’s an absolute slam dunk, and there are few of those around at the moment,” Mr. Thompson said.

Newmarket chief executive officer Douglas Forster said the company is on the hunt for acquisitions in Australia and North America, to help reach its goal of becoming a mid-tier gold miner producing 400,000 to 500,000 ounces a year, up from expected production of 205,000 to 220,000 ounces in 2016.

“We do see opportunity, that’s the good news, but we’re cautious,” said Mr. Forster, noting that management and insiders together own about 8 per cent of the company.

He wouldn’t comment on whether there has been any interest in a takeover of Newmarket, but said a hostile bid would be difficult to pull off, given that nearly half of the shares are owned by management, Mr. Sprott and Luxor.

“We’ll do whatever makes sense and that maximizes shareholder value,” Mr. Forster said. “Hopefully, that means we are growing by acquisition and organically. If it means someone else is [interested in acquiring us and achieving] our goals, then obviously we would have to consider it. It doesn’t mean we would support it.”

Peter Imhof, vice-president and portfolio manager at AGF Investments Inc., said the stock is a bit too small for him to own in the AGF Canadian Growth Equity Class fund. He also cited concerns in the market about Luxor looking to unload more of its shares, although Mr. Sprott’s investment is a positive sign.

“You always have to pay attention when he’s taking a big position in the company,” said Mr. Imhof, who used to work with Mr. Sprott at Sprott Asset Management.

Luxor has also granted Mr. Sprott a right of first refusal to buy another 16.2 million shares by the end of the year.