Kootenay management is thinking pretty much the same, they're after the PMs and pick up along the way such BMs as show in assays ... Promontorio is huge, has some high-grade Ag/Au, stands a good chance of surprising on the upside imho, in any case it's a matter of time before ktn hits on one of their projects, with that business model
There are good companies with considerable PMs being undervalued because they also have base metals orebodies, i wonder how rational this is, to have zinc or copper actively detract from PMs values of your market cap ... examples i follow closely are Metalline, New Gold, and Terrane ... mmg alone has 130m ozs silver, but no one cares because they also have 6b [billions, with a B] pounds of quite high-grade oxide zinc ... or is it 8b lbs Zn now, i forget, oh geez if it is don't tell anybody, market cap will tank to usd8m from the current usd10m ... eight cents per ounce of silver, nobody cares about that
I doubt that base metals will utterly crash, but don't see them going far north in the near future either, probably will drift off somewhat and stagnate ... the chinese were buying to support their own mines, not to hand profits to 'foreign devils', and they're modernising their mines fairly quickly, the period of support needed will not endure ... zinc and copper are going to need sustained upturn in the world overall, maybe next year maybe not
Oil is the only thing i can see capable of making drama for us, by tanking ... it was a great feb-to-may bounce, done now, huge amounts in storage and that must be costing bucks, producer nations are going to see the price stop recovering and gush it out bigtime, knowing what is about to happen ... funny that Peak Oil will be confirmed not by lack of supply, but by lower demand, quite counterintuitive and will be a temporary situation only, leading to tightness of supply later, after current longs are bust
Golds are the place to be, agreed completely Claude ... i know you don't include silver plays in the class, i do somewhat, perhaps a bit less than previously, still think they'll do fine at the PMs part of the cycle though ... planning to add a little more physical silver if some can be had under fifteen loonies on this downswing
Where will gold bottom on this move? ... stockcharts p&f says 905, sounds plausible to me ... and interestingly enough, their one per cent p&f says bullish p.o. of 1011.38 [with gold the boxes are bigger than on gallerypage, not smaller] - stockcharts.com[PA][D][F1!3!1.0!!4!20]&pref=G |
