Treasury Secretary Janet Yellen shot down the idea, calling it a “gimmick.”ByMichelle StoddartOctober 7, 2021, 11:27 AM• 7 min read
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Why the debt ceiling mattersThe debt ceiling system was passed by Congress in 1917.Burwell and Burwell Photography/U.S. Mint via AP
Could a $1 trillion platinum coin be the solution to the U.S. government’s debt limit crisis?
Before reaching a short-term deal to end a standoff and avert a U.S. default, some senators and other proponents renewed talk of the improbable idea.
The U.S. government was set to run out of money to pay its bills, including salaries of federal employees and to pay Social Security benefits, which the White House and experts say would have had grave economic effects and could trigger a recession.
Legislation enacted in 2001 allows the treasury to mint platinum coins of any value without congressional approval. Under that law, the coin’s value could be anything, but it would have to be platinum, not gold or silver, nickel, bronze or copper, which are under Congress’ control.
So, in theory, President Joe Biden could order Treasury Secretary Janet Yellen to have a coin with the value of $1 trillion be minted and deposited into the Treasury, giving the government an extra trillion dollars to cover debts and prevent default.MORE: As Republicans play debt limit brinkmanship, nation barrels toward default
The idea was floated before in 2011 when the government faced another debt ceiling crisis. Former President Barack Obama said in 2017, on the podcast “Pod Save America,” that he and his advisers discussed use of a trillion dollar coin as a safety valve.
“There were all kind of wacky ideas about how potentially you could …. have this massive coin.” Obama said in the 2017 interview. “I mean … it was some primitive — it was like out of the Stone Age or something and I pictured rolling in some coin.”
Treasury Secretary Janet Yellen said Tuesday in an interview with CNBC that she is “opposed” to the idea, and doesn’t believe it should be considered seriously.
Kevin Dietsch/POOL/AFP via Getty ImagesTreasury Secretary Janet Yellen speaks during a Senate Banking, Housing and Urban Aff…Read More
“It’s really a gimmick and what’s necessary is for Congress to show that the world can count on America paying its debts,” Yellen said Tuesday on CNBC’s “Squawk Box“.
Yellen also raised concerns about how using a trillion dollar coin would affect trust in and independence of the Federal Reserve and treasury.
“The platinum coin is equivalent to asking the Federal Reserve to print money to cover deficits that Congress is unwilling to cover by issuing debt, it compromises the independence of the Fed conflating monetary and fiscal policy, and instead of showing that Congress and the administration can be trusted to pay, to pay the country’s bills, it really does the opposite,” Yellen said.
Many experts are unsure about what the economic effects of the move would be given that it is unprecedented. But experts cite concerns about inflation, saying that creating more money would weaken the value of existing money circulating in the economy. That would mean that existing dollars would have less buying power, which could affect American consumers.
Still, some Democratic lawmakers backed the idea. House Speaker Nancy Pelosi said that Rep. Jerod Nadler, D-N.Y., brought up the coin during a closed policy meeting last week as one of other “options” to prevent government default without congressional action.MORE: What the debt ceiling is, and why you should care about it
“Jerry Nadler wants to have a coin … a trillion dollar coin that doesn’t even require congressional [action].” Pelosi said. “So, we talked about an array of things.”
Zach Gibson/Getty ImagesHouse Judiciary Chairman Jerrold Nadler is pictured at the start of a House Judiciary Co…Read More
Rep. Rashida Tlaib, D-Mich., tweeted in support for the idea in late September.https://platform.twitter.com/embed/Tweet.html?creatorScreenName=ABC%20News&dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X2hvcml6b25fdHdlZXRfZW1iZWRfOTU1NSI6eyJidWNrZXQiOiJodGUiLCJ2ZXJzaW9uIjpudWxsfSwidGZ3X3NwYWNlX2NhcmQiOnsiYnVja2V0Ijoib2ZmIiwidmVyc2lvbiI6bnVsbH19&frame=false&hideCard=false&hideThread=false&id=1442852913915826187&lang=en&origin=https%3A%2F%2Fabcnews.go.com%2FPolitics%2Fminting-trillion-platinum-coin-answer-debt-limit-crisis%2Fstory%3Fid%3D80434078&sessionId=2d2df8dbf1f6e90340487048d7b44459ff955cdb&siteScreenName=ABC&theme=light&widgetsVersion=fcb1942%3A1632982954711&width=550px
On Monday, White House press secretary Jen Psaki was asked if the coin was being considered as the debt crisis debate heated up and she shot down the idea.
“We obviously look at a range of options, and none of those options were viable, either because they wouldn’t be accepted by the Federal Reserve, by the guidance of our treasury secretary, or just by legal restrictions,” Psaki said.
Psaki, like Yellen, said that the only solution is for Congress to act.
“There’s a simple process that could be done in the next few days, before we hit Friday, to reduce uncertainty, to make sure the American people don’t have to worry about their bank accounts, their retirement savings,” Psaki said. “And all Republicans need to do is get out of the way, let Democrats be the adults in the room, and take a vote.”
Trish Turner and Sarah Kolinovsky contributed to this report.
Vancouver, British Columbia, October 1, 2021 (NYSE American: EMX; TSX Venture: EMX; Frankfurt: 6E9) – EMX Royalty Corporation (the “Company”, or “EMX”) is pleased to announce that it intends to carry out a private placement of up to 5,000,000 units at C$ 3.30 each for gross proceeds of up to C$ 16,500,000. Members of the Sprott Group have agreed to act as finders in connection with the sale of some of the units.
The units will consist of one common share of the Company and one-half of one transferable warrant. Each whole warrant will entitle the purchase for two years of one common share at C$ 4.00 in the first year and C$ 4.50 in the second year.
Eligible finders will be paid a 6.0% cash commission and issued that number of non-transferable compensation warrants equal to 6.0% of the number of units sold to investors introduced by them. Each compensation warrant will entitle the purchase for one year of one common share of the Company for C$ 3.50.
The placement is subject to stock exchange approval.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any U.S. state securities laws and may not be offered or sold within the “United States” or to “U.S. Persons” (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable U.S. state securities laws, or an exemption from such registration is available.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol EMX, as well as on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 979-6666 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the transaction, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
My western friends would leave me if I were openly crooked. There are no such consequences in India. “Friends” in India would respect you for your crookedness if you can get away with it. And there is no social opprobrium. No wonder crookedness grows like a weed in India. Here is a conversation with Richard Kary:
In the past, I have followed and written about Riverside Resources (RRI; C$0.135) and its CEO, John-Mark Staude. RRI is a project generation company and a very innovative one. They have several projects in Mexico, the USA, and Canada. They have C$5 million in cash and equities, making their enterprise value C$5 million, rather low for a company that has an interesting agreement with BHP, which will fund US$6.5 million in drilling two projects and generative work over the next year. RRI gets to charge a 10% fee on the expenses made, which enables it to sometimes reduce its corporate cash burn to zero. While BHP funds the projects, RRI gets to keep at least 20% ownership—100% if BHP decides not to pursue any project.
A major investor recently liquidated his position in RRI, the reason why it has fallen a lot. That is my opportunity to add to my position.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Please find the below link to David Cole’s presentation at the 2021 Gold Forum Americas in Colorado Springs, Colorado, USA. This presentation provides investors with a number of fresh insights into recent material developments in the Company.
We are in the liquidity crisis that happens at the end of all roaring bull markets when the piper shows up at the door and demands to be paid. It’s something that both Bob Hoye and I have been predicting for months. Perhaps it will be laid at the feet of Evergrande but it really doesn’t matter. It was fated to happen and someone will always be blamed. The general stock market is about to start the biggest financial crash in history.
Think of the resource market in 2008 that topped in March and kept diving lower and lower into October and beyond. I did some research into the DSI of gold and silver back then. Gold hit a low of 11 and silver a DSI of 5 on September 11th of 2008. Remarkably gold and silver both hit 10 on September 16th of 2021. That should be a tradable low. And Monday September 20th is a full moon and that tends to mark both tops and bottoms. Look for an immediate but short-term bounce.
That is one of those good news-bad news deals though. We were undergoing a liquidity event in 2008 just as we are now. Everything was getting sold because they could sell it. That’s true today. What resource investors have to understand is that this is 100% temporary. Yes, shares are getting creamed but it will end and when the DOW and S&P are much lower, gold and resource stocks are going a lot higher. But gold and silver went sideways from September of 2008 for another four months. That could happen again.
So instead of whining about how low your stocks are, you need to be trimming the dead beats and putting in stink bids for the low hanging fruit. What you do over the next four months is literally going to make you rich or keep you poor. If you think this is a disaster, you are going to end up poor. If you understand what an incredible opportunity it is, you are going to be rich in a year. Bob Hoye says the time to buy gold shares will be November but I see a lot of low hanging fruit right now.
I have written a book a year for pretty much the last five or six years. They are especially valuable today because they will show you how to avoid being part of the crowd that always gets slaughtered.
If you have not read, Nobody Knows Anythingor Basic Investing in Resource Stocks you are being either penny wise and pound foolish or just plain stupid. I tell people how to make money. There isn’t any magic to it. You have to make yourself learn to buy low and sell high. Right now the mass of investors is in a panic and trying to figure out how to sell so they can catch the bottom. This is the bottom, you need to be buying, not selling and I tell you how. You can read both books for under $10. If I was a total idiot doing nothing more that putting words on a page it would still be worth spending $10 in the hope that something I say makes sense.
Frankly in 2008 there were hundreds of interesting crapshoots in the resource market. But they were just crapshoots and most of them died on the vine, as they should have. The quality of stocks today is ten times higher. I am going to cover some of my favorites but there are dozens of quality companies out there with real stories selling for pennies. Unlike any other time frame for investing that I am familiar with, you have to take a global point of view. We are in the end phase that happens after every roaring stupid bull market where people pay silly prices for NFTs of farts. We are going to transition from paper assets to real assets.
But it’s a liquidity crisis and values of what has been booming are going to plummet overnight. You have to buy what will be valuable, not what the crowd has been chasing. Gold and silver are about to have their day. While the $305 billion collapse of Evergrande will be blamed at first, we are going to learn just how many companies have been swimming naked as the tide goes out.
Figure out the companies you would like to own. Put in really stupid stink bids that you know can never be filled. They will be.
For certain, one of the greatest stories of this particular resource cycle is that of Eloro Resources (ELO-V) my last piece on them was six weeks ago. Eighteen months ago the shares were selling for $.175. They hit a high of $5.89 in February of this year and have since corrected to $3.29. That’s a 44% correction that is perfectly normal.
What I am going to say right now is not based on any inside information but rather is based on my visits to hundreds of projects. Actually both Tom Larsen and Quinton Hennigh are far more conservative than I am on Bolivia. They are also dead wrong. The Iska Iska polymetallic deposit is going to be one of the biggest silver deposits in the world. It almost certainly will be the biggest tin project. I have been telling both of them for months that this is far bigger than they think.
Both started out by thinking they would like to see a four hundred or five hundred million tonne project. And they are missing the forest because of all the trees in the way. It’s a caldera. That’s the heat source. The whole damned thing is mineralized. It will be two to three billion tonnes at least of $100 rock. So think $200 billion or $300 billion worth of metal in the ground. And I’m being conservative. That ought to be worth something.
Eloro has been crippled by how long it has taken assay labs to get results to them. By all rights, they have the money to support ten drills turning and that is what should happen but they are 3,000 assays behind because of Covid. When you drill you have to know what you are hitting to know which direction to move. In normal times Eloro would already have a billion dollar market cap. As it stands they are only worth $203 million today in spite of having $21 million in the bank.
There is a second way to own Eloro and that is through Cartier Iron (CFE-C). They own 2.12 million shares of Eloro worth an interesting $6.6 million as of last Friday. For the longest time that was pretty much their entire market value but they do have an interesting gold project in Newfoundland. There is a 10,000-meter drill program in progress on the Big Easy project now but obviously assays are the same problem as everywhere else in Canada.
I wrote a piece earlier in the year talking about both companies, Eloro and Cartier. It is probably worth reading. While the Big Easy drill program is a crapshoot, the 2.12 million-share position in Eloro is like having money in the bank.
Eskay Mining (ESK-V) is another home run out of the park that is still way below the radarscope for most investors. At their peril. Granted, it does have a market cap of $344 million today with enough cash to go into next year before having to do a raise. Like Eloro it is one of the most incredible stories of this cycle. Two years ago the shares were $.075. They hit a high of $3.15 in early February of 2021 when assays showed a major VMS discovery. But two years ago Eskay seemed like a ten year long wet dream of Mac Balkam. He carried the company on his back, convinced he had a deposit similar to that of the original Eskay Creek Mine.
He’s wrong of course. What Eskay Mining has is far bigger than the original Eskay Creek deposit. We have to have a lot more assay information before we know about the grade. The Eskay Creek mine was exceptional and the assay labs in Canada are quoting sixteen weeks for assays today thanks to the idiots in government and their panic over a bad flu season.
The original Eskay Creek Mine was a hit or miss affair with the discovery only taking place on the 109th hole. Mac brought in Quinton Hennigh as an advisor over 2 years ago and he put together a team headed by Dr. John DeDecker with help of some serious VMS people from the Colorado School of Mines. They have done things right this time and done a lot of serious technical work that seems to be showing a whole slew of VMS deposits larger than the original Eskay Creek.
All deposits share certain similarities with others of the same breed. Porphyries tend to be very big and low grade. VMS deposits were originally on the sea floor as black smokers. They tend to occur in clusters. Mac knew this and believed it for years but never had the technical team that could put it all together. Now they have.
The company is well financed into next year so all the assays will be in before they need to tap the market again. If investors will go to the Eskay website there are so many pictures and so much information that if they said more they would be violating 43-101 rules. You can look at VMS material and know what you have. They have more than two major discoveries. My biggest question is who will be the most valuable in two years time, New Found Gold or Eskay? Both are going to be worth multiples of a billion dollars.
New Found Gold (NFG-V) is about as simple a story as you will ever find. They have tonnes of high grade gold in Newfoundland with some of the highest-grade intercepts in the last twenty years. Their initial hole was a discovery hole with a 19.2-meter hole showing 92.9 grams of gold per tonne. The shares shot from $1.85 a year ago to an amazing $13.50 in June before beginning a perfectly normal fifty percent correction.
New Found Gold raised a bunch of money and started drilling a 200,000-meter drill program on their Queensway project in Newfoundland. The company has nine drill rigs turning and will be adding an additional rig shortly. If you do not understand the story you have not been paying attention to the resource market. Here is the last piece I did on the company.
The Swan Zone at the Fosterville gold mine in Australia helped to take Kirkland Lake Gold from a $2 billion dollar market cap at the time of the merger in 2017 to a high of $18 billion. The Swan Zone was deep, expensive to mine and only had just over three million ounces of gold. The Keats/Lotto Zones at Queensway are much closer to the surface, similar grades to that of Fosterville and a lot more gold than the Swan Zone. If you don’t own any shares of NFG you are going to be at the airport when your ship sails in.
With all these stocks that are now the low hanging fruit, you need to be looking for those who have been hammered the most. An almost identical story to that of New Found Gold and on the same mineralized trend is that of Labrador Gold (LAB-V). Lab Gold is in the midst of drilling a 10,000 meter drill program at their 100% owned Kingsway project immediately northeast of New Found Gold. Lab Gold has four drill rigs turning and is generating the same sort of high-grade intercepts as that of New Found Gold.
Labrador Gold was as low as $.30 in March of this year before assay results started flowing showing that they are on the same structure as New Found Gold. The shares shot higher with each release until they hit a high of $1.85 in June.
I started selling some of my shares that I bought in the last year and some I had bought years ago for about a dime. If you are trying to prove just how smart you are, go ahead and marry good stocks with high potential. You can watch them go up and down like a bride’s nighty and you don’t make anything. If on the other hand you buy stocks to make money, you have to learn how to trade them in and out. You will have that opportunity every year. LAB has had a five hundred percent range in the last six months. If you can’t make a profit on a stock with that sort of range, you are going about it in the wrong way.
Trade the damn stocks like baseball cards. They are like lottery tickets. To profit you have to buy low and sell high, unlike the weak hands that want to buy high and sell low.
I make the perfectly valid point in my books that if nothing else has changed on a stock that you have fallen in love with except the price, when it tumbles, instead of seeing it as a problem, treat it as an opportunity and buy more. Lab Gold is a screaming good deal after a 60% drop in three months.
Sokoman Resources (SIC-V) is located in Newfoundland but west of where Lab Gold and New Found Gold are drilling. They had really great drill results for years but weren’t doing a great job of telling their story and as a result got little respect from the market. They talked to me in March. I was as direct with them as I am with everyone else I deal with. If you don’t tell your story, you don’t have a story.
I wrote the company up and all I did was put the information out that was already available. There was no magic to my piece other than I did a better job of telling the story. The stock shot higher and touched $.78 in June before starting a similar correction of 60% as did Lab Gold. So officially as far as I am concerned, nothing has changed except the price and it is cheap today.
There are some times when buying a stock has the potential for getting you into serious legal problems. Such is the case of White Rock Minerals (WRM-AX, WRMCF-OTCBB). If White Rock got any cheaper and you bought shares, the Bobbies would be at your door shortly thereafter for stealing. No shit. This is the most absurdly under priced stock I have ever owned.
White Rock is an Australian listed company with OTCBB listed shares for American and Canadian investors. It has a pair of world class potential projects in Alaska including a VMS project with a $3.5 billion dollar rock in the ground 43-101 and a couple of interesting gold projects worth drilling the crap out of. Alas they signed up a drill contractor who thought he was a hooker and he screwed them royally.
You have a short 100-120 day work period in Alaska. Winter ends late and starts early. If you don’t have drills and crews in place by late June you are screwed for the year. The drill contractor brought the drills but only half the men he promised. While that’s a common story in the north this year, it has cost White Rock tens of millions of dollars in lost market cap. They aren’t producing much in the way of drill core to be sampled. In addition the assay labs are 4-6 months backed up so they may as well be tossing a dart at a dartboard to know where to drill. Since Alaska has been the primary focus, investors are throwing in the towel at exactly the time they should be throwing money at White Rock.
In addition, WRM merged with AuStar Gold in August this year to acquire the Woods Point Gold project in Victoria in Australia with 670 square kilometers of exploration potential. The project is near the Fosterville Mine owned and operated by Kirkland Lake Gold. It includes the former Morningstar Gold mine showing past production of over 800,000 ounces of gold at 26 grams gold per tonne. Currently White Rock has one drill turning underground. The core from the drilling shows visual gold. Australia has the same problem with assays as the US and Canada so results will trickle in over the next few months.
White Rock did come up with incredible drill results already from the Red Mountain silver/zinc/lead VMS in Alaska. On the 16th they released the first assay for this year showing 0.2m @ 11.9% Zinc (Zn), 2.8% lead (Pb), 0.9% Copper (Cu), 63g/t silver (Ag), and 0.2g/t gold (Au), from 184.8m down hole. This polymetallic suite of metals can also be summarized as a 17.5% Zinc equivalent grade. That’s not a wide intercept but it does indicate the strike extends further than they realized. Remember this project already has $3.5 billion worth of high grade gold in the ground.
White Rock has another Australian asset in the Mt Carrington gold and silver project with 352,000 ounces of gold and 23.2 million ounces of silver in a JORC resource. That should be worth something.
WRM has been crippled this year by a lack of obvious progress in Alaska. I’m not concerned, the gold and silver are still there regardless of the lack of progress on the assay side. The current drilling at Morningstar could cause an overnight rerating of the shares. As of right now White Rock has a market cap of about $39 million Aussie with somewhere around $12 million in cash. I was adding to my already very large position a week or so ago at $.24 USD and thought I was robbing a bank. It’s $.19 USD now some 20% cheaper in a week.
I’m not going to spend a lot of time talking about Novo Resources (NVO-V). I wrote a book nine months ago just before they poured the first gold bar at Nullagine. What Became of the Crow? has been very well received with some of the highest ratings I have ever seen on any book. In the book I talk about a flight I made delivering a Rockwell 685 aircraft to Lang Hancock in 1976. I had Hancock’s son in law with me on the flight and I had to put up with 85 hours of him talking about how the Pilbara had the world’s highest grade banded iron formation consisting of 30% of the entire world’s reserve of iron.
Quinton Hennigh came up with a theory that says gold precipitated out of salt water in exactly the same way as iron did around 2.8 billion years ago when single cell creatures began to produce oxygen and that changed the chemistry of the water. His work in the Pilbara over the past dozen years has pretty much proven his theory. If iron and gold each precipitated out of salt water about the same time under the same conditions, if you have the world’s biggest iron deposit in the Pilbara (and they do) by necessity you have to have the world’s biggest gold deposit.
Novo is producing gold today. With a market cap down to right at $500 million CAD it is cheaper with less risk than it has been for years.
The biggest problem in Australia right now is the price of iron and it has blown the entire economy up. It’s about to get way worse. Iron hit an all time high price of about $215 USD in May of this year. That has caused chaos for everyone doing exploration work or mining anything other than iron in the country. The iron companies were throwing money at everyone with two basic attributes. As long as they were warm and had a heartbeat they could earn upwards of $25,000 a month. And everyone thought that was just wonderful.
Labor has been a giant problem for every non-iron company in Australia. Novo has lost a lot of good people who ran over to the iron companies for higher wages. In addition, the iron companies raided every government agency to hire anyone who could spell ionr correctly. So permitting has slowed to a snail’s pace and labor turnover is literally out of control.
The liquidity event is not over, it has just begun and will be getting far worse sooner than anyone but Bob Hoye and me realize. But I suppose I should mention you now have a clue.
Lion One (LIO-V) in Fiji is well cashed up with $57 million in the bank, is permitted to begin construction of a mill and they have their own assay lab so they are not being held hostage by the failure of worldwide assay labs. But they were trying to run the project out of Perth since Australia has turned back into a prison colony. Prisoners don’t do a great job of running mining projects with the sole exception of they do a great job of busting up big rocks into small rocks.
Lion One has been trying to get two highly experienced exploration guys into Fiji for six months. I’ve flown through Fiji dozens of times. The people are industrious, hard working and intelligent. But they are not experienced in drilling and exploration without professional help and supervision. That exists now.
The guys got into the country a month ago and finished quarantine. Lion One now has six drills turning and I expect the shares to get back to all time highs in the next six months regardless of the giant crash we are in. They have millions of ounces of gold with a market cap of $172 million with $57 million in cash. I think Lion One is still my biggest position and I was buying shares at over $2. The shares are down 65% from their high but that isn’t going to last for long.
I-80 Gold (IAU-V) only went public in April at $2.36. It rocketed higher to $3.54 about ten days ago before dropping back to the current $2.52. The company has a $587 million market cap with a 770,000 ounces of high-grade gold deposit in the Granite Creek underground mine. IAU management is highly experienced in Nevada and is doing deals with other mining companies to combine resources.
Granite Creek has an average of +11 g/t gold but the material is refractory. I-80 plans on trucking the material over to an autoclave they control at Lone Tree.
In all categories and deposits, I-80 controls over 14 million ounces of gold. An almost $600 million market cap may seem expensive but that’s about $40 a resource ounce. It should probably be $120-$200 an ounce at the stage they are.
This year I-80 plans a 20,000-meter drill program at Granite Creek. The first assays came out three weeks ago and they were what the company hoped they would find, 51.1 meters of 6.8 g/t gold. Because the company has so many irons in the fire I highly suggest investors take a look at the company presentation because it is complicated to explain.
On occasion I do look at other companies that just resource companies. Someone came to me in the middle of the summer and wanted me to look at a young company that wants to use new technology to improve battery charging performance and behavior. I did and wrote about it. The company is called Neo Battery Materials (NBM-V). It went from about $.20 to $1.31 in a month. It continues to have extraordinary liquidity.
This is going to get a little technical.
It has been well known for years that to improve battery charging time and performance the battery manufacturers should use some form of silicon in the anodes. But the metal expands under charging and is not flexible. So companies are trying various forms of silicon nano particles or micro particles. The micro particles are eight to ten percent of the cost of the nano particles. NBM is achieving exceptional performance improvements through the use of micro particles while keeping their cost of production low. Such anodes stand to drive down battery costs on a dollar per kilowatt-hour basis that in turn will drive the cost of mass-market electrical vehicles lower.
The company is sending out samples on a daily basis of their proprietary silicon anodes to battery producers, the developers of solid-state batteries and automotive manufacturers. Since their initial tests are proving so productive NBM is planning upgrading a pilot plant to a semi-commercial facility with production of 120 tons of anodes per year that would supply anodes for up to forty thousand vehicles per year.
The next leg up in the lithium battery market will be the production of solid-state batteries. NBM has already achieved exceptional performance using a sulphides-based all solid-state electrolyte. This would also solve the flammability issues of current batteries in the market place.
NBM has some of the most experienced battery scientists in the world working with them with five patents already in hand. Similar companies in the silicon anode market place have market caps far higher than NBM’s $65 million. If you like the EV market, NBM offers attractive potential for price appreciation.
Goliath Resources (GOT-V) is another great stock that has gotten absolutely hammered in the last six weeks with the stock dropping from an all time high of $1.62 in August to $.76 on Friday for a 55% decline. I think that 100% of the issue is the criminal delay in assay results.
Company management has been posting a number of news releases giving the length of the intercept in terms of quartz-sulfide veining. And while in that neck of the woods that “should” be an accurate measure of grade potential $5 bucks and some quartz-sulfide veining “should” get you a small cup of coffee at Starbucks.
The Surebet Zone is in the Golden Triangle and actual assay results so far indicate a high degree of correlation between the sulfide veins and the actual gold and silver numbers. This is all part of a fully funded 6,000 meter drill program. In a liquidity crisis investors want, indeed, demand hard numbers. The price of the shares is back to where it was in May taking virtually all the risk out of buying the shares. And who knows, maybe assays will come in some day.
The next company, Solis (SLMN-V) is going to be a simple story to tell and for investors to understand. The company has an option on a copper project in Chile with a historic 10 million tonne resource of near surface high-grade copper/silver. At today’s prices that is worth $94.13 a tonne in USD or just short of a billion dollars.
(Click on image to enlarge)
The option calls for Solis to pay $5 million to the vendor over a four-year period and to invest $5 million in exploration over the same four years. That will get them 100% ownership subject to a 2% NSR. But Solis is not interested in a $940 million copper/silver project in Chile where the government just turned really stupid.
Solis believes the near surface mineralization comes from porphyry located about 300 meters down. Initial plans call for a 2,500 meter drill program on one of five different targets over a ten square km package identified with technical studies.
One of two things happens. They either hit what they are aiming for or they don’t. Should they hit the shares go to $500 million and current shareholders get rich. The market cap of the company today is $8.44 million. If you need me to work out the potential for you, you really should be investing in something safe like Evergrande or Tether.
Golden Lake (GLM-C) is another dead easy to understand company. The company has a $10 million market cap and is in the midst of a 6,000 meter drill program on their Jewel Ridge gold project in Nevada on the Eureka trend. Results to date show economic value of gold near surface.
Investors are not big fans of stocks found on the C-Exchange in a declining market but when the bull shows up again they get real popular. With a $10 million market cap and options on two highly potential projects, it’s a cheap lottery ticket.
Provenance Gold (PAU-V) is another story that is so cheap it screams, “Buy me. Buy me.” The market cap is a tiny $10 million; they have only 61 million shares outstanding. The company is operating in northern Nevada near the Idaho border. That’s interesting to me because company President Rauno Perttu (try bending your tongue around that Finnish origin name) believes the project is an analog of the Black Pine project just north of the border.
I have been to Black Pine twice and frankly I think the way they read the project is 100% correct. Given that Black Pine has a 2 million ounce gold resource starting at surface, a $10 million dollar company with a similar project is damned cheap. Liberty Gold has a market cap 26 times larger than Provenance.
Their primary project today is the White Rock oxide gold project. The project manager is Steve Craig and I have known him for years. He is one of the top geos in Nevada. Between Steve and Rauno, you have a first class management team. White Rock is one of those projects that everyone knows about but no one has ever gotten a real handle on. PAU management believes the project holds a near surface 3.2 by 1.6 oxide gold target. In the past operators were attempting to find the feeder structures.
Provenance theory holds that instead of trying to find the structures with blind drilling, they should simply drill serious stepout holes to define ounces. Last week they announced results from an 800-meter stepout hole showing 117 meters of gold mineralization starting from surface. The hole intercepted 85 meters of 0.369 g/t gold. Within that hole were higher-grade intervals of 0.778 g/t Au from 38 meters to 46 meters. In Nevada oxide gold of those grades is all economic. I believe those assays tend to prove their theory and there will be a lot more similar holes. That is exactly what Liberty Gold was finding at Black Pine.
This is one of the few stocks that has actually acted well over the past couple of months. It is so cheap that I took out a lottery ticket on it and bought some shares. If you buy stocks when they are cheap and sell them when they are dear, you can make a lot of money. It’s not rocket science.
The next six weeks is going to be incredibly dangerous and many people will be wiped out. I own most of these stocks and all of them are advertisers but the combination of a tiny DSI for gold and silver and a full moon on September 20th makes now an interesting time.
As always, I don’t share in your profit or your losses so you need to do your own due diligence. I am biased so take some responsibility for your own actions.
Home Links Editorials Dow 1929 Vs. Dow 2021? Bob Moriarty Archives Sep 11, 2021
The DOW JONES Index peaked on September 3, 1929 at 381.17. It ran lower into October 24th, 1929 when the market plunged 11% on the open from the preceding day. We call that Black Thursday even though the market closed only slightly lower.
The crash continued Monday October 26th when the Dow tumbled 13% and another 12% on Black Tuesday October 27th. The Great Depression had begun. The crash didn’t stop until July 8th, 1932 with the Dow down to 41.22, an incredible 89.2% drop.
I think it is going to happen again.
Soon.
Very, very soon.
For months I have been suggesting that I believe the bubble is going to burst and we would have tops in the Indexes from mid-August into September before declining into a crash in late October.
So far, so good. The S&P peaked at 4545.85 on September 2nd. The DJI topped on August 16th at 35631.19. The Nasdaq high point was on September 7th at 15,403.44.
Most investors today have never been through a real market crash and have no idea of what is coming. You cannot have the extremes that we have today without a full reset back to the norm. Since the market is more out of balance than it was in 1929 and 2000 I would not be surprised to see a market crash of similar dimensions, that is to say a 89-92% decline.
Vancouver, British Columbia–(Newsfile Corp. – September 14, 2021) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company“, or “EMX“) is pleased to announce that it expects to receive an initial quarterly after-tax payment of approximately US$974,000 from the Company’s effective 0.418% net smelter return royalty (“NSR“) interest in the Caserones Copper-Molybdenum Mine (“Caserones“) in northern Chile. This payment to EMX, anticipated later this month, is based upon second quarter (“Q2”,i.e., April – June) royalty distributions for copper and molybdenum production.
As previously reported, EMX formed a 50%-50% strategic partnership with Altus Strategies Plc (“Altus“) (AIM: ALS; TSX Venture: ALTS; OTCQX: ALTUF) to acquire an effective 0.836% NSR royalty on Caserones (the “Caserones Royalty“) for US$68.2 million. EMX and Altus each control an effective 0.418% royalty interest after each contributed US$34.1 million towards the Caserones Royalty purchase price (see EMX news releases dated August 17, August 23, and September 3, 2021). The effective date of the Caserones Royalty acquisition was April 1, 2021, and as a result will include proceeds from Q2, 2021, thereby establishing immediate cash flow to EMX.
EMX’s effective royalty interest in the Caserones Royalty has secured a source of long-term proceeds from copper-molybdenum production in one of the world’s top copper mining regions.
Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed, verified, and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, as well as on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 979-6666 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the second closing of the Caserones royalty purchase, , expected cash flows from EMX’s interest in the Caserones royalty, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: failure of the vendors under the Share Purchase Agreement to perform their obligations, fluctuations in or problems with production from the Caserones mine, unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
Vancouver, British Columbia–(Newsfile Corp. – September 3, 2021) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company“, or “EMX“) is pleased to announce that it has completed the second and final closing under the agreement to acquire an effective 0.418% Net Smelter Return (“NSR“) royalty on the operating Caserones Copper-Molybdenum Mine (the “Caserones Royalty“) located in northern Chile for US$34.1 million in cash (see EMX news releases dated August 17 and August 23, 2021).
As previously reported, EMX formed a 50%-50% partnership with Altus Strategies Plc (AIM: ALS) (TSXV: ALTS) (OTCQX: ALTUF) (“Altus“) to acquire an effective 0.836% NSR royalty for US$68.2 million. EMX and Altus now each control an effective 0.418% royalty interest and each were responsible for US$34.1 million of the purchase price. EMX and Altus have formed a Chilean company, Minera Tercero, Spa (“Tercero“), of which EMX and Altus each own 50%. Tercero agreed to purchase 43% of the issued and outstanding shares of an underlying royalty holder, Sociedad Legal Minera California Una de la Sierra Peña Negra (“SLM California“), through a Share Purchase Agreement with 16 shareholders of SLM California to acquire ownership of 43% of SLM California’s issued and outstanding shares, and thereby indirect ownership of 43% of SLM California’s 1.944% NSR royalty interest in the Caserones property (i.e., a 0.836% NSR royalty interest, held as 0.418% by EMX and 0.418% by Altus).
Under the first closing, Tercero acquired 33% of SLM California for US$52.3 million. The second and final purchase of the remaining 10% of the shares of SLM California has now been completed for US$15.9 million.https://s.yimg.com/rq/darla/4-9-0/html/r-sf-flx.html
The acquisition of the Caserones Royalty is expected to provide immediate enhancement to EMX’s royalty cash flow and to secure long-term proceeds from copper and molybdenum production in one of the world’s top mining regions.
Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed, verified, and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, as well as on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 979-6666 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the second closing of the Caserones royalty purchase, , expected cash flows from EMX’s interest in the Caserones royalty, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: failure of the vendors under the Share Purchase Agreement to perform their obligations, fluctuations in or problems with production from the Caserones mine, unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended June 30, 2021 and the year ended December 31, 2020 (the “MD&A”), and the most recently filed Revised Annual Information Form (the “AIF”) for the year ended December 31, 2020, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
In these days of covid tyranny, it is hard to find a free place. Latin America has been my refuge. But what looks pleasant in the immediate does not have to have a bright future. Given that the USA is increasingly going woke, the future of Latin America does not look too good to me. That does not affect my investments, but I will increasingly look for higher upsides. Here is a speech that I gave last week at the MoneyShow:
On Investments
Signature Resources (SGU; C$0.09) has a very interesting project in Ontario. Be careful not to chase it, but linked here are my thoughts about it in a discussion with Cory Fleck and Shad Marquitz.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Kevin Dietsch/POOL/AFP via Getty ImagesTreasury Secretary Janet Yellen speaks during a Senate Banking, Housing and Urban Aff…Read More
