Archive for Metals

A Look at 15 ‘Exciting’ Companies Discussed Live at Beaver Creek

Source: Quinton Hennigh for Streetwise Reports   09/23/2021

In a September 10, 2021, Crescat Capital briefing from the Precious Metals Summit in Beaver Creek, Colorado, the firm’s Quinton Hennigh, Geologic and Technical Director, provided updates on 15 exploration companies of note.

During Crescat Capital’s Sept. 10, 2021 broadcast from the Precious Metals Summit in Beaver Creek, Dr. Quinton Hennigh, Geologist and Technical Advisor to Crescat Capital, provided updates on numerous exploration companies in the firm’s Precious Metals Fund.

i-80 Gold Corp. (IAU:TSX; IAUCF:OTCQX)

Major news came from i-80, which announced it is acquiring some assets in Nevada, including the Lone Tree mine complex and the Ruby Hill operation, Hennigh highlighted. With this transaction, i-80 will gain existing mills and will have to fill them. That bodes well for exploration companies in the area, such as Timberline Resources Corp. (TBR:TSX.V; TLRS:OTCQB), which is in Crescat’s portfolio.

The entry of i-80 into Nevada’s gold space means Nevada Gold Mines no longer is the sole company in it and now has a competitor.

“It’s really a rejuvenation of the excitement of gold mining in Nevada,” Hennigh said.

Eloro announced more “phenomenal results” from Iska in Bolivia, long intercepts of modest- to high-grade silver equivalency in the Santa Barbara area. There, the company is targeting an expanse that is about 1,200 meters (1,200m) long north to south, 500m long east to west and about 600m deep. That means, Hennigh said, they are targeting about 360 million cubic meters of rock.

Hennigh pointed out that with drilling, Eloro is hitting short intervals, like 50m and 20m, here and there, but taken together the aggregate length of mineralization in the holes is nearing about 30–50 percent in many cases.

“If that holds true, when they do the resource, I expect a very large number to come out of this resource model,” Hennigh said.

Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB)

Snowline released drill results from its Rogue target, a few tens of kilometers from its Jupiter target. Rogue features an intrusive-related gold system.

The company encountered visible gold in quartz veining and is seeing long intervals of stockwork quartz mineralization that look like they are part of a large system.

“[It’s] exciting to see them make a second discovery within one field season,” Hennigh said. “That’s kind of exceptional for any exploration company.”

Reyna Silver Corp. (RSLV:TSX.V; RSNVF:OTCMKTS)

Reyna Silver delivered some very high-grade results from its Batopilas project in Mexico.

The Batopilas project is located in Southwest Chihuahua, and spans 1,183 hectares of land as well as 94% of the historic Batopilas Native Silver District.

“Keep a close eye on that story,” Hennigh advised.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE)

Lion One’s Tuvatu Alkaline Gold project is located approximately 24 kilometers NE of the town of Nadi on the island of Viti Levu in the Republic of Fiji.

The company announced multiple high-grade intervals from the deep part of the system at Tuvatu where the feeder zone is expanding and from the areas where the company is conducting expansion and infill drilling.

“I anticipate Lion One continuing to deliver high-grade results like [in] this last news release, over and over again,” Hennigh said.

Defiance Silver Corp. (DEF:TSX.V; DNCVF:OTCBB)

Mexico-based silver, gold, copper, and polymetallic exploration & development company, Defiance Silver announced some “very exciting” results, some of the highest grade to date, from its Zacatecas silver vein project.

The intervals were wide, one being 20 meters.

“These are veins that you can mine in bulk, and that’s what makes this district such a prolific district,” said Hennigh.

“You can mine these veins and get a lot of tonnage out of one vein, [so] the results are very exciting,” he concluded.

New Found Gold Corp. (NFG:TSX.V; NFGFF:OTCMKTS)

New Found Gold started releasing high-grade results, several hundred gram meters, from Lotto, the northernmost high-grade zone of three at Queensway.

The project is positioned along the Trans-Canada Highway about 15 kilometers west of Gander, Newfoundland.

Keats is the southernmost, and Golden Joint is in the middle of Queensway.

“I think some of the other targets they have that they’ve not talked so much about will start delivering high-grade results here soon,” Hennigh predicted.

Tectonic Metals Inc. (TECT:TSX.V; TETOF:OTCQB)

Tectonic is both drilling and doing surface geophysical and geochemical work.

After it recently identified a robust, high-grade anomaly that it is excited about, Tectonic Metals is adding a second drill rig to its Tibbs Gold project.

So what exactly were the results that got Tectonic so excited?

Grab rock sampling at the Tibbs Gold Project’s (“Tibbs”) Jorts target returned gold values up to 50.3 g/t Au, with 11 rock samples grading greater than 20 g/t Au and producing a 450m long high-grade gold anomaly.

According to Hennigh, “The season’s not much longer: maybe a month or so, maybe five, six weeks even, but this is very exciting.”

“I hope they get some good holes into this target, and hopefully we have some good news before year end from Tectonic,” he wrapped up.

NV Gold Corp. (NVX:TSX.V; NVGLF:OTC)

NV Gold announced the results of a study it did at its Slumber gold project, which located about 50 miles northwest of Winnemucca, Humboldt County, Nevada.

Two drilling campaigns found a new 600-meter-wide, near-surface, mineralized oxide gold zone with notable drill intercepts, including a “very encouraging” 18.3 meters at 0.52 grams per tonne Au.

It expects to commence a third drilling campaign there in the next few weeks.

E2Gold Inc. (ETU:TSX.V)

E2Gold is a mineral exploration company that focuses on the identification, acquisition, exploration, and development of mineral properties in Canada.

Its Hawkins Gold project covers seven townships in north-central Ontario in Canada.

“The geologist working for E2Gold is a friend of mine. I’ve known him for many years,” said Hennigh.

“He is one sharp guy, a very smart geologist, and if there’s anybody out there that can pick apart a project, especially a blind target like this one that’s buried under gravel, and then

find out where to go, it’s Thomas,” Hennigh proclaimed.

E2 mobilized a second rig to its Hawkins project and intends to get more aggressive with its drilling, especially in the deeper holes of high interest.

“They have a plan now: They do anticipate being able to drill in the next few weeks which is exciting because there’s a lot of companies that can’t find drill, but these guys have managed to find one.”

Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX)

Novo announced its brownfields exploration program, which includes aggressive drilling for which the company boosted its budget by about $2.5 million.

“The goal is to build a resource base that’s going to make for a long-life mine around the Beatons Creek project,” Hennigh noted.

“The team is is going flat out down there,” he noted.

Signature Resources Ltd. (SGU:TSX.V; SGGTF:OTCQB; 3S3:FSE)

Signature Resources uncovered new prospects on its district-scale, northwest Ontario property.

Hennigh’s take is that “This is a company that is really tackling a district scale play, a brand new greenstone belt that’s not seen any modern exploration.”

“I think that they will deliver a lot of news over the next year or two,” he added.

Aurion Resources Ltd. (AU:TSX.V)

Canadian-based Aurion Resources’ latest exploration programs are operating in a district-scale greenstone belt on its Risti and Launi East properties in northern Finland.

It has made several discoveries and recently identified some new targets, making it a company of interest.

“I’m very excited about the belt in Finland,” confirmed Hennigh.

Firefox Gold Corp. (FFOX:TSX.V)

Firefox Gold is another Crescat Capital investment operating in the same area as Aurion.

Firefox is drilling and should be releasing results soon.

An interesting fact is that the company is named for the Finnish word for the northern lights, revontuli, which directly translates into English as fox’s fire.

“Firefox is drilling away. I mean, they’ve had drills turning for three or four months now, [so] I would expect news out of Firefox soon, so stay tuned on that front,”

Eskay Mining Corp. (ESK:TSX.V)

Eskay Mining is more than halfway through its drill program.

It is drilling at Jeff and TV as well as at C10.

Geologist Thomas Monecke is on site to help Eskay identify some of the key features of these volcanogenic massive sulphide systems, which will help the company explore additional targets.

Missed the macroeconomic portion of the Sept. 10 briefing? Click here for part one of Crescat’s coverage.

 

Streetwise Reports Disclosures:

1) This is contributed content from Crescat Capital compiled by Doresa Banning for Streetwise Reports LLC. Doresa Banning provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. Her company has a financial relationship with the following companies referred to in this article: None.

2) Dr. Quinton Hennigh is Crescat Capital’s Geologic and Technical Director. You should assume that as of the publication date, Dr. Quinton Hennigh has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves.

3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: E2 Gold Inc. and Lion One Metals Ltd. Click here for important disclosures about sponsor fees. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of E2Gold. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of E2Gold Inc. and Cabral Gold Inc., companies mentioned in this article.

Important Crescat Disclosures Provided by Crescat Capital 

Please read Crescat’s important disclosures.

Nothing herein should be construed as personalized investment advice or a recommendation that you buy, sell, or hold any security or other investment or that you pursue any investment style or strategy.

Case studies are included for informational purposes only and are provided as a general overview of Crescat’s general investment process, and not as indicative of any investment experience. There is no guarantee that the case studies discussed here are completely representative of Crescat’s strategies or of the entirety of its investments.

Crescat has compiled its research in good faith and while it uses reasonable efforts to include accurate and up-to-date information, it is provided on an “as is” basis with no warranties of any kind. Crescat does not warrant that the information on this site is accurate, reliable, up to date or correct. In no event will Crescat be responsible or liable for the correctness of any such research or for any damage or lost opportunities resulting from use of its data.

You should assume that as of the publication date, Crescat has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves. Following the publication date, Crescat intends to continue transacting in the securities, and may be long, short, or neutral at any time.

 

Storm Clouds: Looking at Trendlines in the Precious Metals Markets

Source: Michael Ballanger for Streetwise Reports   09/23/2021 

Sector expert Michael Ballanger breaks down market moves for the week of September 13 and discusses one of the highlights of 2021, which has been the explosive performance of the uranium space, citing companies such as Sprott Inc. and Western Uranium and Vanadium Corp, as we look toward a net-zero carbon future.

maundclouds2_8-3-2020

As a Georgian Bay boater, I have grown to respect one aspect of boating above all else and that is the arrival of inclement weather. As an investor and market prognosticator, I have also grown to be on the lookout for technical events that might represent either a plunging barometer or storm clouds on the horizon. At the close of trading on Friday, Sept. 10, the S&P 500 had its second multiday decline since the five trading days of July, which marked the first staccato-like selloff of 2021.

“I am adhering to my strategy of staying 100% long the GGMA 2021 Portfolio of junior developers and explorers.”

However, as has been the norm for most of the past twelve years (since the Fed rescued the global stock markets in March 2009), the July weakness reversed upward, and while there were multiple divergences during the ensuing move to the highs, the trendline established from March 2021 until now is still holding.

That said, the question remains: How much longer?

The sidebar to this story is the revelation that a number of voting members of the Federal Reserve, including ex-Goldman Sachs director Robert Kaplan, have been trading this market during a period in which the singular most impactful entity on the planet controlling stock prices is the very institution for whom these highly conflicted rascals toil (the U.S. central bank).

The best way to defuse what is most certainly going to devolve into an elitist’s nightmare is to take the S&P down 20% or 30%, and then blame the media for sensationalizing a few “insignificant” trades by the Dallas Fed governor, and paint that “unfair media attack” (on the Fed) as the reason the market rolled over and destroyed all those millennials’ and GenXers’ fun.

Now, I am not to go “all moral on y’all” and start sermonizing about the absence of ethics involved in this unconscionable breach of public trust and duty, but rather highlight the fact that this revelation just put the entire Federal Reserve system, which incidentally involves the most hedonistic “Old Boys club” of self-dealing narcissists in history, directly into the crosshairs of the populist left. The media are too engrossed in the vax/antivax debate right now to have homed in on it, but make no mistake, they will—and when they do, it will a fecal tempest of the highest order.

Just as Hank Paulson knelt in front of Congress back in 2009 and literally begged for a government bailout in order to “save the financial system,” I see a similar ploy looming on the horizon (right up there beside those ugly, billowing, nimbus clouds) where CNBC is begging the Bob Kaplans of the world to “get back in there and buy, buy, buy,” but only after a huge downdraft has gutted all extraneous net worth (and hubris) from the masses.

Forgive my cynicism, but I have seen this movie all-too-many times to simply sluff it off as “fantasy” or “conspiracy-theory rhetoric.”

MICHAEL Balllanger

From my perch on the Limb of Damocles, I see a trendline (shown above) that has been about as powerfully defended as any I have ever encountered, including the “transitory inflation” narrative proffered by another Fed luminary, Jerome Powell.

“The trendline shown above is very important.”

However, just as the word “transitory” has now been redefined thirty-seven times by the “financial Funk & Wagnalls” on Wall Street, that trendline is now being assaulted with a particular vengeance, in a manner not unlike the selective outrage of some very important personalities at the very existence of Fed Reserve employees flipping stocks. After all, my dear readers, all of the improprieties of the dot.com period invoked a wrath that made it a felony for employees to trade on proprietary information secured by the underwriting department. They created the term “Chinese Wall” not to describe a place where dissidents are lined up but rather as a divider that kept highly sensitive information private. Accordingly, those safeguarding that information were prohibited from trading—period.

So, I ask the question: If a voting member of the U.S. Federal Board has a working knowledge of policy intentions, knowing full well their absolute impact on the direction of stock prices, is it a conflict of interest for that official to prosper by way of trading?

Well, you all know the answer to the question.

Overstatement has always been a feature of the financial media and as proof, does anybody recall CNBC’s Scott Wapner nearly crying at the lows of the March 2020 COVID crash, where he was begging the regulators to “suspend all trading!” It was pitiful.

The trendline shown above is very important; it is symbolic of a) stock price resiliency, b) investor confidence, and c) Wall Street control. The latter is by far the more important because if the trendline gets violated by volume and velocity, my case for carrying a large cash position will be totally vindicated. The elitist generals of the War on Disparity (like Robert Kaplan) had better step up and throw a bid into the S&P futures or I fear things could get really ugly.

As that trendline clearly demonstrates, we are at the point where, as captain, I either head for the “hurricane hole” or I “sprint for the wind.” The week of Sept. 13 is really important, and rather than doing a 30-minute podcast during which I try to hedge virtually everything I might say, what my subscribers know is that I am an ego-less “Creature of the Financial Black Lagoon” – I do not know the outcome and happy to make that admonition.

This was essentially a “nothing” week for the precious metals, as the strength of the U.S. dollar (USD) faded into weakness. Somewhat alarming was gold’s inability to hold $1,800/ounce, despite the weak USD, but it was undoubtedly liquidity concerns that weighed on the precious metals, not unlike the brief but sharp downturn during the March 2020 COVID crash.

I am adhering to my strategy of staying 100% long the GGMA 2021 Portfolio of junior developers and explorers, comprised of gold, silver, copper and uranium names, as we move rapidly toward Q4/2021. Stock selection has been of paramount importance and no better demonstrated than by the performance of the GGMA portfolio, which is ahead over 140% versus the Junior Gold Miner ETF (GDXJ:US), which is down 23.30% year-to-date.

It should be cautioned that despite the performance, not even the stocks I own can withstand a major correction in the S&P 500, because everything is correlated to the U.S. markets and the reason is leverage. The investment world is operating on the razor’s edge of leverage, so when there is a rush for liquidity, everything goes, exactly as we saw in March 2020.

One of the highlights of 2021 has been the explosive performance of the uranium space, and owners of uranium stocks need look no further than Sprott Inc., which launched the Sprott Physical Uranium Trust on July 19, 2021, and then proceeded to raise a pile of money, after which it inhaled every pound of available U3O8 in the spot market.

In doing so, Sprott has directly or indirectly moved prices from under US$30/lb. to the current US$42.40/lb. level, and with that, it has triggered manic buying in many of the uranium names including GGMA selection Western Uranium & Vanadium Corp. (WUC:CSE; WSTRF:OTCQX), which is ahead 209% year-to-date.

As a developer of the Colorado-based Sunday Mine Complex, WUC represents precisely the kind of pre-production, resource-rich company that has dominated the GGMA portfolio since last summer. As this is being written, I am doing the necessary due diligence on a couple other names that are still capped under $100 million, because if the pundits are correct about the demand-supply anomaly affecting the spot price, we could see 2008 prices again quickly, where U3O8 traded at almost US$140/lb.

In fact, for those out there that are fearful of paying these exaggerated prices, look at the Global X Uranium ETF price relative to 2011. The uranium bull is in the very early stages, and what I find really attractive is that it is totally uncorrelated to central bank policies and more importantly, immune to changes that could roil the markets.

I remain optimistic on the outlook for silver looking out to year-end, but acknowledge that both it and the miners absolutely must kick into gear here quickly or it is going to jeopardize gold’s chances of breaking through that $1,835-40 wall that has been capping all possibilities for new highs by year-end. I would like to see energy prices back off from here, coupled with a pop in gold, which would enhance the operating forward guidance for the big miners.

However, oil has been a straight line northward since I issued the “Generational Buying Opportunity” in April 2020, when the Crimex near-month contract traded at negative numbers upon settlement, and there are those out there calling for oil at $125-150/barrel due to underinvestment and pent-up demand once the global economies truly reopen.

The storm clouds that I see creeping into view should prompt investors to keep some cash reserves ready for possible mid-October opportunities, because one the one asset class that has saved thousands of inhabitants of places like Weimar Germany, Zimbabwe, Argentina and, more recently, Venezuela, has been hard assets denominated in non-local currencies. In the current era of unbridled monetary inflation, downside for equities is nothing compared to bonds, and with junk yielding a paltry 2% these days, the risk of financial accidents has never been greater.

Act (and invest) accordingly.

Originally published Sept. 11, 2021

Follow Michael Ballanger on Twitter @MiningJunkie. He is the Editor and Publisher of The GGM Advisory Service and can be contacted at [email protected] for subscription information.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

 

Disclosures:
1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Western Uranium & Vanadium Corp. My company has a financial relationship with the following companies referred to in this article: Western Uranium & Vanadium Corp. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Uranium & Vanadium Corp., a company mentioned in this article.

Michael Ballanger Disclaimer

This article makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that.

Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

COT Futures Metals Charts: Gold, Silver Comex, Copper, Platinum & Palladium

By InvestMacro.com COT Home | Data Tables | Data Downloads | Newsletter

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday September 21st 2021 and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.


Data Snapshot of Commodity Market Traders | Columns Legend
Sep-21-2021OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
WTI Crude2,101,55826355,97825-396,1806440,20272
Gold492,76523187,64758-212,6444224,99741
Silver145,5371215,63538-28,0557012,42012
Copper190,6592019,27056-24,484435,21455
Palladium9,05111-2,71303,043100-33025
Platinum73,415451,2184-6,995995,77743
Natural Gas1,378,35047-140,22036100,0746240,14681
Brent199,21639-32,2625830,181432,08154
Heating Oil423,6636335,89084-59,0511323,16191
Soybeans660,4721361,05445-39,35957-21,69536
Corn1,379,7701265,50164-199,01444-66,4875
Coffee288,2895060,11893-63,84693,72814
Sugar952,97541249,46788-290,3921340,92558
Wheat353,55181,842499,65450-11,49647

Gold Comex Futures:

Federal Funds 30-Day Bonds Futures COT ChartThe Gold Comex Futures large speculator standing this week recorded a net position of 187,647 contracts in the data reported through Tuesday. This was a weekly lowering of -20,113 contracts from the previous week which had a total of 207,760 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 57.6 percent. The commercials are Bearish with a score of 42.0 percent and the small traders (not shown in chart) are Bearish with a score of 40.8 percent.

Gold Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 60.2 24.2 9.3
– Percent of Open Interest Shorts: 22.1 67.4 4.2
– Net Position: 187,647 -212,644 24,997
– Gross Longs: 296,670 119,307 45,636
– Gross Shorts: 109,023 331,951 20,639
– Long to Short Ratio: 2.7 to 1 0.4 to 1 2.2 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 57.6 42.0 40.8
– COT Index Reading (3 Year Range): Bullish Bearish Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: 4.9 -4.1 -5.8

 


Silver Comex Futures:

2-Year Treasury Bonds Futures COT ChartThe Silver Comex Futures large speculator standing this week recorded a net position of 15,635 contracts in the data reported through Tuesday. This was a weekly decrease of -11,041 contracts from the previous week which had a total of 26,676 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 37.9 percent. The commercials are Bullish with a score of 69.7 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 12.1 percent.

Silver Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 45.8 31.1 17.5
– Percent of Open Interest Shorts: 35.1 50.4 8.9
– Net Position: 15,635 -28,055 12,420
– Gross Longs: 66,708 45,282 25,423
– Gross Shorts: 51,073 73,337 13,003
– Long to Short Ratio: 1.3 to 1 0.6 to 1 2.0 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 37.9 69.7 12.1
– COT Index Reading (3 Year Range): Bearish Bullish Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -8.8 11.3 -17.8

 


Copper Grade #1 Futures:

5-Year Treasury Bonds Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week recorded a net position of 19,270 contracts in the data reported through Tuesday. This was a weekly reduction of -9,509 contracts from the previous week which had a total of 28,779 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 56.2 percent. The commercials are Bearish with a score of 42.6 percent and the small traders (not shown in chart) are Bullish with a score of 55.4 percent.

Copper Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 41.4 39.3 8.5
– Percent of Open Interest Shorts: 31.3 52.1 5.8
– Net Position: 19,270 -24,484 5,214
– Gross Longs: 78,931 74,936 16,223
– Gross Shorts: 59,661 99,420 11,009
– Long to Short Ratio: 1.3 to 1 0.8 to 1 1.5 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 56.2 42.6 55.4
– COT Index Reading (3 Year Range): Bullish Bearish Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -7.0 10.1 -28.8

 


Platinum Futures:

10-Year Treasury Notes Bonds Futures COT ChartThe Platinum Futures large speculator standing this week recorded a net position of 1,218 contracts in the data reported through Tuesday. This was a weekly lift of 2,285 contracts from the previous week which had a total of -1,067 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 4.1 percent. The commercials are Bullish-Extreme with a score of 99.1 percent and the small traders (not shown in chart) are Bearish with a score of 42.6 percent.

Platinum Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 45.3 35.1 13.4
– Percent of Open Interest Shorts: 43.6 44.6 5.5
– Net Position: 1,218 -6,995 5,777
– Gross Longs: 33,230 25,750 9,810
– Gross Shorts: 32,012 32,745 4,033
– Long to Short Ratio: 1.0 to 1 0.8 to 1 2.4 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 4.1 99.1 42.6
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -6.6 8.8 -21.9

 


Palladium Futures:

Ultra 10-Year Treasury Notes Bonds Futures COT ChartThe Palladium Futures large speculator standing this week recorded a net position of -2,713 contracts in the data reported through Tuesday. This was a weekly decrease of -986 contracts from the previous week which had a total of -1,727 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 0.0 percent. The commercials are Bullish-Extreme with a score of 100.0 percent and the small traders (not shown in chart) are Bearish with a score of 25.2 percent.

Palladium Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 28.7 54.5 13.0
– Percent of Open Interest Shorts: 58.7 20.8 16.6
– Net Position: -2,713 3,043 -330
– Gross Longs: 2,598 4,930 1,174
– Gross Shorts: 5,311 1,887 1,504
– Long to Short Ratio: 0.5 to 1 2.6 to 1 0.8 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 0.0 100.0 25.2
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -23.9 27.4 -47.5

 


Article By InvestMacro.comReceive our weekly COT Reports by Email

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

These Factors ‘Could Drive Gold and Silver Prices Much Higher’

Source: Crescat Capital for Streetwise Reports   09/22/2021

In a Sept. 10, 2021 Crescat Capital broadcast from the Precious Metals Summit in Beaver Creek, the firm’s Portfolio Manager, Tavi Costa, and its Chief Investment Officer, Kevin Smith, talked about the current macroeconomic environment and highlighted the opportunity in gold and silver mining equities.

Portfolio Manager, Tavi Costa, noted that his funds firm, Crescat Capital, believes we are in a secular bull market for gold and silver and because we are now amid a pullback, the time is right to be taking advantage of stocks in the space over time. He showed a slide of silver’s weekly candles and noted that the precious metal looks technically sound for taking advantage of.

“Cryptocurrency is getting a lot of attention these days, but Crescat Capital likes precious metals.”

Looking forward, Costa added, “I think there are a lot of fundamentals behind what could drive gold and silver prices much higher and perhaps really benefit the explorers and a lot of the companies we have in our portfolio,” he added.

Costa purported that we could be on the cusp of a new phase of mergers and acquisitions given the high level of liquidity among the mining majors. They have generated free cash flow at a pace never seen before and have lots of net cash available.

“I truly believe that tangible assets continue to be something very important for investors to own in their portfolios,” Costa said.The portfolio manager said platinum is also at a good entry point and showed a slide of the metal’s quarterly candles.

“Gold, we believe, has intrinsic value.”

Also in the broadcast, he presented three slides depicting how various economic metrics are trending. The first metric was the Taylor Rule to the Fed funds rate Spread, and it showed that the spread today is the largest it has been since about 1975. Costa said the spread indicates interest rates should be at around 6 percent, but obviously they are not.

“It’s a good reminder of how trapped the Federal Reserve is,” he added.

Second, the cost of ride sharing with Uber and Lyft increased 92 percent between January 2018 and July 2021, Costa said. However, the intercity transportation component of the Consumer Price Index (CPI) that takes into account taxi, Uber and Lyft fares is up only 5 percent during the same period.

“This is example of how the CPI is massively understated in regards to the real inflation in the system,” added Costa.

Third, the Duke survey of chief financial officers showed that internal company optimism about wages and sales is at a record high.

“The cost of living rising started to create a demand for higher wages and salaries, and we’re seeing this in a lot of fronts,” Costa said.

Next, Kevin Smith briefly summarized today’s economic macroenvironment and with that as the backdrop today, what parts of the market Crescat Capital favors.

Smith reiterated that inflation is rising, growth is slowing and the stock market is in a bubble. Real interest rates are negative, and money printing continues. Deficits are the highest they have ever been.

Thus, cryptocurrency is getting a lot of attention these days, Smith said, but Crescat Capital likes precious metals.

“Cryptocurrencies, they’re faith-based currencies,” he said. “Gold, we believe, has intrinsic value, and the junior mining industry has been through essentially a 10-year bear market.”

Read more about the companies Quinton Hennigh, Crescat’s Geologic and Technical Director, discusses in part two of the Sept. 10 briefing.

 

Streetwise Reports Disclosures:

1) This is contributed content from Crescat Capital compiled by Doresa Banning for Streetwise Reports LLC. Doresa Banning provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. Her company has a financial relationship with the following companies referred to in this article: None.

2) The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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

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

Important Crescat Disclosures Provided by Crescat Capital 

Please read Crescat’s important disclosures.

Nothing herein should be construed as personalized investment advice or a recommendation that you buy, sell, or hold any security or other investment or that you pursue any investment style or strategy.

Case studies are included for informational purposes only and are provided as a general overview of Crescat’s general investment process, and not as indicative of any investment experience. There is no guarantee that the case studies discussed here are completely representative of Crescat’s strategies or of the entirety of its investments.

Crescat has compiled its research in good faith and while it uses reasonable efforts to include accurate and up-to-date information, it is provided on an “as is” basis with no warranties of any kind. Crescat does not warrant that the information on this site is accurate, reliable, up to date or correct. In no event will Crescat be responsible or liable for the correctness of any such research or for any damage or lost opportunities resulting from use of its data.

You should assume that as of the publication date, Crescat has a position in the securities discussed and therefore stands to realize significant gains in the event the price of security moves. Following the publication date, Crescat intends to continue transacting in the securities, and may be long, short, or neutral at any time.

 

Gold Builds Buy Setup, Is Bitcoin Next?

By Ino.com

– Gold follows the map posted in an earlier update.

Daily Gold Chart

Gold dropped within two visible legs close to the area of 61.8% Fibonacci retracement level located at $1,738. The second leg down has overshot the size of the first leg reaching almost 1.272 of its distance. The RSI has shown two legs down either. Initially, the 50 level in the indicator’s sub-chart acted as a support, and then it turned resistance for the joint between two legs.

Last Friday’s bar could be a turning point as no fresh low has been established on that day. The buy trigger is located at the top of the joint between two legs down at $1,809. When the trigger is activated, consider limiting the risk below the valley of the current correction.

The firm barrier of the former top at $1,917 is a decision point. One should consider two options: either book the profit and wait for further clues or watch how the price reacts to that barrier and then make a final decision. Anyway, at that point, it would be better to move the stop loss at least to a break-even. Then you would enjoy the safe journey.

If you choose to take profit around $1,917, then the Risk/Reward ratio would stand at 1:1.7, with the risk limit below the most recent low of $1,745. The ultimate target of $2,075 raises the proportion to a stunning 1:4. But, of course, if the market drops lower, then the ratios would fall accordingly.

Last week the Bloomberg posted an interview with the BlackRock Inc. fund manager Russ Koesterich. He said that the fund has sold almost all of his gold holdings on expectations that rates will normalize as the global economy rebounds.

“Rather than own an asset that doesn’t produce any cash flow, we’d rather hedge some of the near-term upside in inflation with stocks that have pricing power,” Koesterich said, citing industrials, materials, and consumer sectors as examples.

This outlook of the world’s largest asset manager could mean the failure of gold to overcome the $1,917. Of course, nobody knows the future; let us wait and see.

Luckily, the warning call for Bitcoin was posted just ahead of the drop, so you could have time to consider taking the profit or adjusting the risk.

Most of you chose the “HODL” option; the “book profit” was the second popular vote.

Bitcoin Daily Chart

All bearish technical alerts played out eventually, including Bearish Divergence on RSI and a weakening trend. The price reached the area of $52-55k, where I thought it to reverse. Bitcoin has almost hit the $53k at the recent top and then dropped like a rock.

I consider the initial sharp move down as the first leg (red 1) within a larger corrective model. The structure is similar to what we witnessed in the gold chart above. Current sideways consolidation could be a joint between two legs down.

The next leg down could hit the 61.8% Fibonacci retracement level around $38k. This level coincides with the area where red leg 2 would travel an equal distance with red leg 1. Earlier, the main coin retraced 61.8% several times on its way to $53k.

In an earlier update, I showed you the map with two paths. I skipped the large leg 2 down option this time, as it will be validated only on a touch of the most recent bottom.

Aibek Burabayev
INO.com Contributor, Metals

Disclosure: This contributor has no positions in any stocks mentioned in this article. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

By Ino.com – See our Trader Blog, INO TV Free & Market Analysis Alerts

Source: Gold Builds Buy Setup, Is Bitcoin Next?

 

Gold Gets Hammered But Copper Fails To Seize The Moment

By Ino.com

– The Copper/Gold ratio remains at a key decision point. Gold has been clobbered lately but a key metallic macro indicator remains in a long-term congestion zone. If it’s going to be cyclical ‘inflation ON’ we’d expect Cu/Au to break through and do what it has not done since a major inflation trade blew out in 2006-2008, and for the 30yr Treasury yield to eventually catch on and rise at least to the EMA 100 (blue line).

copper/gold ratio & 30 year treasury yield

Here is the daily futures view of Cu/Au. Going by simple TA (daily trends) it looks poised to break out to the upside, especially in the face of a government at the ready to pump Trillions more funny munny into the economy. The economically cyclical metal would benefit over the more counter-cyclical monetary metal. It’s logical, but still theoretical. Markets do not always do the logical thing, now do they?

copper/gold ratio

A couple of important macro riders are in a ‘beg to differ’ stance. The bringers of liquidity destruction to the inflated mess, the 2 Horsemen of the (would-be) Apocalypse ride on.

The US dollar has thus far maintained its base/bottom situation.

us dollar (dxy)

…while the Gold/Silver ratio is doing something similar.

gold/Silver ratio

You’ve got to ask yourself one question. ‘Do I feel lucky?’ Well, do ya, punk? Fellow old timers will recall that Dirty Harry’s .44 Magnum was actually empty, but the punk chickened out and gave up. That was the only rational choice in real time, but it was wrong.

If you feel lucky you’ll guess about the outcome of a short-term macro question. A real gamble. But in the financial markets you don’t need luck so much as you need to do the work to be on the right side of the macro (top down) backdrop. You may miss the initial push but if a new and sustainable phase engages there will be plenty of time to get on it with better backing from the indicators. Otherwise, you can end up like legions of inflationist gold bugs today, watching gold, silver and the miners drop again despite the dogma held so dear by the average bug.

If you feel cold, calculating, rational maybe you’ll wait for the macro signals before acting strongly in a given direction. We’re doing the necessary work every week in NFTRH because while it’s been a tough market since the summer cool down began as anticipated…

larry

…when the macro confirms (inflation) or turns (temporarily to liquidation) the opportunities ahead are going to be much better than the little day trading scalps the current market is providing.

Best,
Gary Tanashian

For “best of breed” top-down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates, and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down). Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.

By Ino.com – See our Trader Blog, INO TV Free & Market Analysis Alerts

Source: Gold Gets Hammered But Copper Fails To Seize The Moment

COT Futures Metals Charts: Gold, Silver, Platinum, Palladium & Copper Grade #1

By CountingPips.com COT Home | Data Tables | Data Downloads | Newsletter

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday September 14 2021 and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.


Data Snapshot of Commodity Market Traders | Columns Legend
Sep-21-2021OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
WTI Crude2,101,55826355,97825-396,1806440,20272
Gold492,76523187,64758-212,6444224,99741
Silver145,5371215,63538-28,0557012,42012
Copper190,6592019,27056-24,484435,21455
Palladium9,05111-2,71303,043100-33025
Platinum73,415451,2184-6,995995,77743
Natural Gas1,378,35047-140,22036100,0746240,14681
Brent199,21639-32,2625830,181432,08154
Heating Oil423,6636335,89084-59,0511323,16191
Soybeans660,4721361,05445-39,35957-21,69536
Corn1,379,7701265,50164-199,01444-66,4875
Coffee288,2895060,11893-63,84693,72814
Sugar952,97541249,46788-290,3921340,92558
Wheat353,55181,842499,65450-11,49647

Gold Comex Futures:

Federal Funds 30-Day Bonds Futures COT ChartThe Gold Comex Futures large speculator standing this week totaled a net position of 207,760 contracts in the data reported through Tuesday. This was a weekly lift of 1,721 contracts from the previous week which had a total of 206,039 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 62.8 percent. The commercials are Bearish with a score of 36.8 percent and the small traders (not shown in chart) are Bearish with a score of 44.7 percent.

Gold Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 60.6 23.5 9.3
– Percent of Open Interest Shorts: 19.6 69.8 4.1
– Net Position: 207,760 -234,251 26,491
– Gross Longs: 306,988 119,152 47,097
– Gross Shorts: 99,228 353,403 20,606
– Long to Short Ratio: 3.1 to 1 0.3 to 1 2.3 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 62.8 36.8 44.7
– COT Index Reading (3 Year Range): Bullish Bearish Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: 2.9 -0.7 -21.9

 


Silver Comex Futures:

2-Year Treasury Bonds Futures COT ChartThe Silver Comex Futures large speculator standing this week totaled a net position of 26,676 contracts in the data reported through Tuesday. This was a weekly reduction of -1,880 contracts from the previous week which had a total of 28,556 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 49.4 percent. The commercials are Bullish with a score of 57.1 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 18.5 percent.

Silver Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 46.1 30.5 18.1
– Percent of Open Interest Shorts: 27.1 59.1 8.6
– Net Position: 26,676 -40,156 13,480
– Gross Longs: 64,827 42,909 25,503
– Gross Shorts: 38,151 83,065 12,023
– Long to Short Ratio: 1.7 to 1 0.5 to 1 2.1 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 49.4 57.1 18.5
– COT Index Reading (3 Year Range): Bearish Bullish Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -9.4 11.3 -15.4

 


Copper Grade #1 Futures:

5-Year Treasury Bonds Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week totaled a net position of 28,779 contracts in the data reported through Tuesday. This was a weekly lift of 5,187 contracts from the previous week which had a total of 23,592 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 63.1 percent. The commercials are Bearish with a score of 34.6 percent and the small traders (not shown in chart) are Bullish with a score of 67.7 percent.

Copper Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 42.3 38.5 9.1
– Percent of Open Interest Shorts: 27.3 57.3 5.3
– Net Position: 28,779 -36,109 7,330
– Gross Longs: 81,223 73,999 17,569
– Gross Shorts: 52,444 110,108 10,239
– Long to Short Ratio: 1.5 to 1 0.7 to 1 1.7 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 63.1 34.6 67.7
– COT Index Reading (3 Year Range): Bullish Bearish Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -4.5 6.2 -16.2

 


Platinum Futures:

10-Year Treasury Notes Bonds Futures COT ChartThe Platinum Futures large speculator standing this week totaled a net position of -1,067 contracts in the data reported through Tuesday. This was a weekly lowering of -7,416 contracts from the previous week which had a total of 6,349 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 0.8 percent. The commercials are Bullish-Extreme with a score of 100.0 percent and the small traders (not shown in chart) are Bullish with a score of 65.5 percent.

Platinum Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 44.4 36.0 14.3
– Percent of Open Interest Shorts: 45.8 44.4 4.5
– Net Position: -1,067 -6,348 7,415
– Gross Longs: 33,649 27,334 10,867
– Gross Shorts: 34,716 33,682 3,452
– Long to Short Ratio: 1.0 to 1 0.8 to 1 3.1 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 0.8 100.0 65.5
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -14.3 14.9 -7.2

 


Palladium Futures:

Ultra 10-Year Treasury Notes Bonds Futures COT ChartThe Palladium Futures large speculator standing this week totaled a net position of -1,727 contracts in the data reported through Tuesday. This was a weekly decrease of -1,392 contracts from the previous week which had a total of -335 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 0.0 percent. The commercials are Bullish-Extreme with a score of 100.0 percent and the small traders (not shown in chart) are Bearish with a score of 25.0 percent.

Palladium Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 34.3 50.4 13.8
– Percent of Open Interest Shorts: 54.4 26.5 17.6
– Net Position: -1,727 2,060 -333
– Gross Longs: 2,954 4,337 1,184
– Gross Shorts: 4,681 2,277 1,517
– Long to Short Ratio: 0.6 to 1 1.9 to 1 0.8 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 0.0 100.0 25.0
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -16.9 20.9 -48.1

 


Article By CountingPips.comReceive our weekly COT Reports by Email

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

COT Futures Metals Charts: Palladium, Silver, Copper, Platinum & Comex Gold

By CountingPips.com COT Home | Data Tables | Data Downloads | Newsletter

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday September 7th 2021 and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.


Data Snapshot of Commodity Market Traders | Columns Legend
Sep-21-2021OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
WTI Crude2,101,55826355,97825-396,1806440,20272
Gold492,76523187,64758-212,6444224,99741
Silver145,5371215,63538-28,0557012,42012
Copper190,6592019,27056-24,484435,21455
Palladium9,05111-2,71303,043100-33025
Platinum73,415451,2184-6,995995,77743
Natural Gas1,378,35047-140,22036100,0746240,14681
Brent199,21639-32,2625830,181432,08154
Heating Oil423,6636335,89084-59,0511323,16191
Soybeans660,4721361,05445-39,35957-21,69536
Corn1,379,7701265,50164-199,01444-66,4875
Coffee288,2895060,11893-63,84693,72814
Sugar952,97541249,46788-290,3921340,92558
Wheat353,55181,842499,65450-11,49647

Gold Comex Futures:

Federal Funds 30-Day Bonds Futures COT ChartThe Gold Comex Futures large speculator standing this week was a net position of 206,039 contracts in the data reported through Tuesday. This was a weekly fall of -10,511 contracts from the previous week which had a total of 216,550 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 62.3 percent. The commercials are Bearish with a score of 36.4 percent and the small traders (not shown in chart) are Bullish with a score of 53.3 percent.

Gold Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 60.4 23.7 9.7
– Percent of Open Interest Shorts: 19.7 70.2 3.8
– Net Position: 206,039 -235,808 29,769
– Gross Longs: 306,017 119,906 49,214
– Gross Shorts: 99,978 355,714 19,445
– Long to Short Ratio: 3.1 to 1 0.3 to 1 2.5 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 62.3 36.4 53.3
– COT Index Reading (3 Year Range): Bullish Bearish Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: 1.7 -1.7 0.9

 


Silver Comex Futures:

2-Year Treasury Bonds Futures COT ChartThe Silver Comex Futures large speculator standing this week was a net position of 28,556 contracts in the data reported through Tuesday. This was a weekly rise of 6,225 contracts from the previous week which had a total of 22,331 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 52.3 percent. The commercials are Bullish with a score of 52.5 percent and the small traders (not shown in chart) are Bearish with a score of 25.8 percent.

Silver Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 45.9 30.6 18.5
– Percent of Open Interest Shorts: 25.4 61.7 8.0
– Net Position: 28,556 -43,252 14,696
– Gross Longs: 63,879 42,561 25,817
– Gross Shorts: 35,323 85,813 11,121
– Long to Short Ratio: 1.8 to 1 0.5 to 1 2.3 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 52.3 52.5 25.8
– COT Index Reading (3 Year Range): Bullish Bullish Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -2.6 3.3 -6.0

 


Copper Grade #1 Futures:

5-Year Treasury Bonds Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week was a net position of 23,592 contracts in the data reported through Tuesday. This was a weekly lift of 1,685 contracts from the previous week which had a total of 21,907 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 59.4 percent. The commercials are Bearish with a score of 39.2 percent and the small traders (not shown in chart) are Bullish with a score of 59.2 percent.

Copper Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 41.1 39.6 9.1
– Percent of Open Interest Shorts: 28.8 55.1 6.0
– Net Position: 23,592 -29,463 5,871
– Gross Longs: 78,326 75,467 17,278
– Gross Shorts: 54,734 104,930 11,407
– Long to Short Ratio: 1.4 to 1 0.7 to 1 1.5 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 59.4 39.2 59.2
– COT Index Reading (3 Year Range): Bullish Bearish Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -9.9 9.3 1.2

 


Platinum Futures:

10-Year Treasury Notes Bonds Futures COT ChartThe Platinum Futures large speculator standing this week was a net position of 6,349 contracts in the data reported through Tuesday. This was a weekly decrease of -1,708 contracts from the previous week which had a total of 8,057 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 12.3 percent. The commercials are Bullish-Extreme with a score of 86.6 percent and the small traders (not shown in chart) are Bullish with a score of 61.9 percent.

Platinum Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 46.6 33.0 15.0
– Percent of Open Interest Shorts: 37.4 52.5 4.7
– Net Position: 6,349 -13,503 7,154
– Gross Longs: 32,183 22,761 10,365
– Gross Shorts: 25,834 36,264 3,211
– Long to Short Ratio: 1.2 to 1 0.6 to 1 3.2 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 12.3 86.6 61.9
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -7.8 7.8 -2.2

 


Palladium Futures:

Ultra 10-Year Treasury Notes Bonds Futures COT ChartThe Palladium Futures large speculator standing this week was a net position of -335 contracts in the data reported through Tuesday. This was a weekly decrease of -154 contracts from the previous week which had a total of -181 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 0.2 percent. The commercials are Bullish-Extreme with a score of 100.0 percent and the small traders (not shown in chart) are Bullish with a score of 50.5 percent.

Palladium Futures Statistics SPECULATORS COMMERCIALS SMALL TRADERS
– Percent of Open Interest Longs: 37.8 45.9 14.8
– Percent of Open Interest Shorts: 41.7 43.1 13.7
– Net Position: -335 236 99
– Gross Longs: 3,222 3,911 1,264
– Gross Shorts: 3,557 3,675 1,165
– Long to Short Ratio: 0.9 to 1 1.1 to 1 1.1 to 1
NET POSITION TREND:
– COT Index Score (3 Year Range Pct): 0.2 100.0 50.5
– COT Index Reading (3 Year Range): Bearish-Extreme Bullish-Extreme Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index: -9.8 12.9 -28.9

 


Article By CountingPips.comReceive our weekly COT Reports by Email

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

VOX Royalty: Massive Portfolio Consisting of 8,000 Royalties

Source: Maurice Jackson for Streetwise Reports   09/08/2021 

In this interview, Maurice Jackson, founder of Proven and Probable, sits down with Kyle Floyd, the CEO of Vox Royalty, which is a global royalty generator with a royalty portfolio consisting of over 8,000 royalties. Jackson and Floyd address the merits of royalty companies for shareholders and what makes Vox Royalty stand out from the pack.

Maurice Jackson: Joining us for conversation is Kyle Floyd, the CEO and Chairman of Vox Royalty Corp. (VOX:TSX.V). Sir, it’s a pleasure to speak with you today, as we deep dive into the value proposition of Vox Royalty, which offers a smart way to invest in commodities. Before we begin, Mr. Floyd, please introduce us to Vox Royalty and the opportunity the company presents to shareholders.

Kyle Floyd: Vox Royalty Corp has been around since 2014. Our business model focuses on buying third-party royalties, which we believe is the most value-enhancing way to play the commodity sector. And so, we have built what is the fastest-growing royalty company on the planet. We also believe one of the royalty companies trading at the most attractive valuations, and we have a management team and business entirely engaged and finding deep value by buying these third-party royalties all around the world.

And we’ve been very, very successful in building Vox Royalty for our investors over the last eight years.

Maurice Jackson: Before we take a step forward, let’s take a step back. What are some of the merits of royalty companies for shareholders?

Kyle Floyd: Well, royalty companies offer a better risk-adjusted way to play commodity exposure. And there are a couple of key reasons for that. Royalties typically are revenue interests essentially that run with the mining assets. And so you take a top-line percentage interest in these projects. You’re not exposed to a lot of the costs and the risks that these mining companies face, which can be quite significant. If there’s a cost overrun, the royalty company gets to continue to generate its revenue from the project without having to fund any of the projects or being diluted. If that underlying entity needs to raise capital.

The other costs that the mining that the roads and conveys are not associated with the mining companies face are the general input costs, the variable cost structure, whether it’s for fuel people, you name it, all the inputs that go into mining companies, all those costs are increasing and royalty companies are exposed to that.

The other benefit, then, on the upside is there’s a lot of diversification you get from royalty companies. Vox Royalty has five production stage assets going to 10 production stage assets and beyond means that we’re diversified across a suite of assets. And so we don’t have single asset risks that you have in a lot of mining companies. So a lot less risk, but a lot of the same upside, if not better upside that you realize in mining companies in the form of metal prices going up helps increase the value of royalty companies, increase in production, increases in reserves, increasing resources. All of that goes to fuel royalty company growth.

And we’re not on the hook for any of those costs in terms of building out those assets further. So that’s a quick synopsis on why we’re so bullish on royalties and we believe that’s backed up in the market as well to companies that outperform for the better part of the last two decades.

Maurice Jackson: One of the virtues of royalty companies, several embedded optionality. And speaking of royalties, to truly appreciate the value proposition of Vox Royalty, Mr. Floyd, what is a royalty juxtaposed to a stream? We hear those terms often, but they get co-mingled, but they’re not the same.

Kyle Floyd: That’s a great question. Royalties are these third-party interests. So, interest not held by the operating party of the mining company, they’re the prospector or the junior mining company or the family that owned a ranch that sold the asset eventually to the mining company and typically retained a royalty, which was that right in the upside of revenue generated for these mines typically for the life of those mines.

A stream is a structure where you’re typically financing a mining company, and the counterparty is the mining company. You’re giving them capital and in return, you are taking a percentage of a certain metal that’s generated from that opportunity.

And you’re continuing to remit payments to get that metal over the life or over the term of that commercial arrangement. The big difference is typically on streams. You’re giving money to a mining company, so you need them to meet capital versus our royalty model. We’re not giving money to the mining company. We’re purchasing a right held by a third party. And typically those are non-core assets for these groups. Therefore, we’re not restricted by mining companies needing capital to find really interesting deals for our investors.

Maurice Jackson: Now that we have a better understanding of the merits of royalty companies, Mr. Floyd, what differentiates Vox Royalty?

Kyle Floyd: There are a few things that differentiate Vox Royalty, and we built a business model to be differentiated, to offer better risk-adjusted exposure for investors. And one of the key differentiators is we focus exclusively on buying third-party royalties. We don’t compete at the big end of town trying to finance multi-billion dollar projects with streams.

Our niche is finding third-party royalties all over the globe. We have a database that has 8,000 proprietary royalties that provide us a roadmap for finding great royalties in jurisdictions that range from West Africa to Australia, to North America, to South America. And we use a technical team made up of mining engineers and geologists that help screen for good projects that have these amazing royalties over them. And then we connect with these owners of these projects, with our deal sourcing agents all around the world to be able to transact on these opportunities.

Vox Royalty built this ecosystem, this business model around finding third-party royalties, where we think the best value is generated. And if you look at the historical returns of the Franco’s and the Royals, that’s where they’ve generated the best returns, buying these third party royalties, much less the streams and the financing of mining companies that have been completed over the last decade. That being said, they performed very, very well overall. And so that is our business model.

Third-party royalties finding amazing assets with great royalties over them, all around the world. And those three kind of key pillars of that stool, the deal sourcing agent network that I think goes farther than probably anybody in our range, the technical team, and intellectual property in the form of a database. And all those combined to make us what has been the fastest-growing royalty company. And I believe also at the best value over the last three years.

Maurice Jackson: Speaking of the database, Vox Royalty owns one of the world’s largest proprietary royalty databases, consisting of over 8,000, most of which are located in Australia, Canada, and the USA. Mr. Floyd, please introduce us to Vox Royalties property bank.

Kyle Floyd: It’s a very exciting asset for us, and it’s a huge competitive advantage. Our database has been built over the better part of the last 10 years. Vox was building our database and building our intellectual property. But one of the things that we were acutely aware of is there was the potential that someone was farther ahead of us in terms of this effort to build out proprietary advantages in finding third-party royalties. And sure enough, there was a company that was farther ahead, and that was a company called Mineral Royalties Online.

So they had, at that time, it was a database of 7,000 third-party royalties in their database, all around the world. They had built this database bottoms-up through first principles and first-party data. They went into different mining ministries and exploration offices all around the world and made deals to essentially get this hard copy data and then translate that into data that was online.

So we purchased that database in 2019, [which] has underpinned a lot of our success and our growth rate. And so that database gives us an edge all around the globe in terms of finding these third-party royalties and being able to transact and closes and bring those into the portfolio.

Maurice Jackson: I see that Vox has undertaken a keen interest in Australia. Why Australia?

Kyle Floyd: Well, there’s not just one reason for Australia. There’s a lot of reasons for us in Australia. Australia is — and we’re slightly biased but it’s also backed up by a lot of the third-party rating agencies — is one of the best, if not the best, mining jurisdictions on the planet. According to the Fraser Institute, Western Australia, which is home to most of our royalties, is the best mining jurisdiction.

Investors understand the value of Nevada royalties because Australia is a better mining jurisdiction, in our opinion. We believe Australia is the place that you want to have significant exposure to, complimented by our IP, which has a very strong basis in Australian royalties, and technical team, three of our four key business development executives are also Australian citizens. We understand what we believe is the best major mining market, as well as anybody, if not better than anybody else.

We’ve accumulated what is now the second-largest holding of hard rock mining royalties in Australia. And that’s significant because Australia, beyond just being a fundamentally great jurisdiction with great golden endowments, it has had a very buoyant gold price in Aussie dollar terms. It’s been trading at almost all-time high prices in Aussie dollars for the last almost four years. So what’s happened is a lot of the exploration development projects that we forecasted would do well have exceeded expectations because the buoyant equity markets have allowed these companies to raise as much capital as needed to advance these projects.

It’s been a huge boon to our business in terms of the growth of assets already in the portfolio, and having them grow ahead of expectations and realizing tremendous value for our investors. And so, us picking Australia as a place to focus on has paid off for our shareholders.

Maurice Jackson: Sounds quite intriguing. Now within the property bank, Vox Royalty has producing assets and a pipeline of growth assets. Sir, please acquaint us with your top three key producing assets beginning in Australia.

Kyle Floyd: This year we acquired the Janet Ivy, and we were engaged on it before it goes back into production. It’s now in production, but it has a huge expansion plan ahead of it, which we expect to take place late next year, and that’ll make it a very, very significant cash flow for us.

We also have the Koolyanobbing Royalty, which we bought from a telecom business, if you can believe that. It was held in one of their subsidiaries for a very long time, and we’re engaged on a pre at going into production.

That’s had a huge run and huge growth, obviously, with the iron ore up in prices. And then we also have a host of other royalties that are in production, Coure Resources, Higginsville operations. We have three open-pits that feed that mill. And so that’s been running at a record pace for us. And then one that we’re excited about is the Segiolola project that we bought preproduction.

It is the highest-grade, open-pit gold project in West Africa, and they just announced the first gold pour. So we expect to see revenue from that asset in Q4. So really a tremendous amount of growth in our portfolio from producing and production stage assets.

Maurice Jackson: We’ve covered the key producing assets. Sir, please introduce us to the growth assets of your property bank.

Kyle Floyd: I could go on for days about our growth assets. I’ve got to work hard to kind of narrow it down for the readers.

I’ll name a couple that I’m excited about.

The Ashburton is one. When we bought that royalty, which was in the portfolio of Northern Star, it was a little bit sleepy, but we saw a huge potential in the asset. And what we believed would eventually happen was that other Northern Star would start upping the development curve on this and the timeline on it, or it would transact to a more nimble junior. And sure enough, that happened just a few months after the acquisition of this royalty. The Ashburton is a 1.65 million-ounce gold resource in Western Australia. It’s owned by Calamos Resources now. They’ve got 12,000 meters of drilling going on and their target is three plus million ounces for this asset. So that’s a really exciting NSR royalty for us.

The other one that I’m excited about is The Bowdens project, which is the largest developing primary silver project in all of Australia. It’s got great fundamentals. The Bowdens project is an open-pit that’s now exploring the very strong potential to go underground either after the open-pit is exhausted or contemporaneous with open-pit mining. And that is a royalty that has a very multi-decade mine life potential. So those are a couple of the key development stage assets that we’re excited about.

We also have a host of royalties that are going to be coming into production in the very near term. The Pitombeiras is a Vanadium project in Brazil that they are expecting to come into production in the first half of next year. The Bulong Gold project is a development stage, production stage asset that’s expected to go into production in mid, next year, over Western Australia Gold Project.

And then there’s many more that we can get into without belaboring the point that we have a tremendous amount of growth assets. We have 20 plus development-stage assets, many of which are aggressively moving forward. So it’s a fantastic portfolio of assets with real growth in front of it that’s being delivered to the market every quarter. And that’s increasing value for shareholders.

Maurice Jackson: Realizing this is a forward-looking statement. We’re going to get into some members later in this discussion, but how much revenue potential is before us under the current market conditions, if we combine the producing and the growth assets?

Kyle Floyd: And it’s very much a forward-looking statement. I would caution on that. We’ve done a fantastic job of finding royalties 3 to 24 months out before production, where we find the really good value we’re able to bring in those assets that are good fits within our portfolio. We take away the risk from the disparate holders of these third-party royalties all around the world on their non-core assets.

So there’s risk asymmetry. They fit better in our portfolio. They don’t fit as one-off assets. And so we’re able to find really good value all around the world, finding these near-production assets.

We came out and I think we’ve validated that business over the last 12, 18 months. We recently doubled revenue guidance. We’ll probably talk about that more, but that’s really on the basis that we’re finding these royalties preproduction and then allowing them the time. And usually, it’s not a very long time to go to get into production.

And so when we step out and look at our portfolio, I believe that there’s $15 to $20 million of long-life revenue potential in the portfolios. There’s reason for tremendous upside on that number as well.

And that there are 15, 20 exploration stage assets. Some that are generating bonanza-grade drill hits are increasing the possibility that those are going to become mines. So very active exploration projects that would kind of fuel growth on top of that. But I believe it’s one of the most undervalued royalty portfolios out there as very strong potential to generate that type of cash flow over the medium and long term.

But again, I caution that it was a forward-looking statement. Those are numbers based on operator guidance. They’re based on the technical engineering studies that, that coincide with these assets. But we feel very good about the revenue-generating capability of this portfolio.

Maurice Jackson: Now germane to revenue, how do mergers and acquisitions impact your portfolio?

Kyle Floyd: Vox Royalty has a very disciplined approach to acquisitions. We have not the best of our knowledge have not won a single royalty in a sales process. Most royalty companies, in fact, almost all royalty companies, have been growing their business by winning sales processes. So that’s royalties that are being shopped by investment banks, and they’re paying top dollar pretty much in every scenario to bring those royalties in the portfolio.

What we do is we’ve built a business around finding, these third-party royalties, and disparate shareholders all around the world where these are non-core assets. And so we’ve been able to transact at a really good value. We’re very disciplined on what good value looks like. It has to be accretive across kind of three different key metrics: absolute return on investment basis, relative net asset value, and relative cash flow multiples.

Most royalty companies cannot stack up to what Vox is accomplishing in terms of acquisition that’s bringing in across those three metrics. Usually, one, if not two, if not all, three of those metrics break down when other royalty companies are purchasing third-party royalties like we are.

Maurice Jackson: Now, before we leave the property bank. The multilayered question, what is the next unanswered question for Vox Royalty? When can we expect a response and what will determine success?

Kyle Floyd: Well, the next step for Vox is we continue to invest in our loyalty database. We will continue to build on that competitive advantage. It’s fueled a lot of our growth and given us a huge leg up on the competition.

So we continue to invest in that asset for us, we continue to expand our relationships around the globe. We are finding interesting royalties from Australia to South America, to West Africa and everywhere, pretty much in between. And so, from Vox and what you’ll continue to see on us is expanding on that competitive advantage, expanding on the capability to find really good value for our investors on really exciting projects, where our mining engineers and our geologists understand the quality of those assets so that your readers and the generalist audience out there does not have to do that work. And I think that’s a big advantage that we present for investors is this competitive advantage, that’s good to find a good value.

Maurice Jackson: Leaving the property bank, let’s discuss the people responsible for increasing shareholder value. Mr. Floyd, please introduce us to your management team.

Kyle Floyd: I’m excited about our management team, we’ve handpicked and recruited the management team that we have to fill the roles that we believe needed to be filled over the years to create shareholder value. I founded the concept back in 2013, 2014, and with the belief that we needed to have competitive advantages and skillsets that increase shareholder value and the capability to do so. And so, a few of our key management team members, Spencer Cole is our Chief Investment Officer with a background as a mining engineer, previously worked at South 32 and BHP, and BHP is where the Mineral Royalties Online business, the inspiration was found.

Riaan Esterhuizen, who is one of our Executive Vice-Presidents out of Australia. Riaan’s a geologist, Riaan’s led some of the most interesting grassroots exploration campaigns for the who’s who of majors. They went about building Mineral Royalties Online. They built that business. They came into Vox and we acquired that business. And that’s been a huge part of our success.

Simon Cooper has been with us for a very long time. Simon’s a mining engineer, a geologist, entrepreneurial, and brings a significant amount of technical capability. He’s worked with some of the most interesting projects all around the world, but also has a very good skill set in terms of finding acquisitions to bring in those acquisitions into our portfolio.

And then we have a great CFO in Pascal Attard, and a great General Counsel in Adrian Cochrane. So we believe that we’ve built one of the most exciting and capable management teams in the small-cap royalty space. And it’s a huge asset for our business and our investors.

Maurice Jackson: And here’s an opportunity to brag on yourself, who is Kyle Floyd, and what makes him qualified for the task at hand?

Kyle Floyd: It’s always hard to talk about yourself. I’m supposed to be talking about others. But just a little bit about my background. I ran the Mining Investment Banking Division for a firm called Roth Capital. And the inspiration to build Vox was around helping mining companies raise capital, but then seeing that capital not get deployed in the right means and the right ways. And at the end of the day, not generating great risk-adjusted results for investors. And so I’d advise multiple companies on selling streams and royalties and acquiring streams and royalties.

And I believe that was the best business model for the generalist investor to get exposure to commodities. And I went about building a business model for investors, by investors? We started with a seven and a half million dollar investment and began building this company around generating better risk-adjusted returns in the commodity sector. And we’ve been very successful at doing so.

So that’s a little bit of my background. I graduated in Finance from the University of Washington, then a stint at Colorado School of Mines in the Mineral and Energy Economics Department, but a business built around achieving great risk-adjusted returns for our investors.

Maurice Jackson: Switching gears, let’s look at some numbers, Mr. Floyd, please provide the capital structure for Vox Royalty.

Kyle Floyd: Vox Royalty has a tight share structure of 39 million shares issued. We, when we went public in May of last year, we had to forward split the stock, which I would tell you, is almost an anomaly in the resource sector. We have 5 million warrants outstanding, at this stage they have a strike at $4.50, which is out of the money as we speak today, and no debt and a very, very strong working capital position.

Vox is very well-financed. We have a tight capital structure. We have no intentions of going back to the equity markets anytime soon, and we will continue to be able to build our asset portfolio combination of debt and strategic acquisitions and minimize dilution in doing so. So I’m excited about where our capital structure is today for investors. I think it’s a very unique opportunity from that perspective,

Maurice Jackson: Who are some of the major shareholders?

Kyle Floyd: We’ve done a pretty good job of cultivating a nice institutional shareholder base. Management owns 15%. The founding investors own another 15% to 30%. And then we’ve got a nice institutional shareholder roster made up of Konwave, U.S. Global, Adrian Day, EuroPacific Gold Fund, and many others that have taken positions in us over the last year and a half.

Maurice Jackson: In closing. Mr. Floyd, for current and prospective shareholders, why Vox and why now?

Kyle Floyd: Vox, I believe is a tremendous opportunity emboldened by the fact that we are trading at the very low end, the relative valuation spectrum versus our peers. If you look at some of our closest comps, I’ll refrain from naming them, but they’re trading at multiples of our relative valuation. Yet we’re growing faster, we’re growing at a better value. We’re growing with better fundamentals. And we have competitive advantages that a lot of the industry wishes that they had. And so I believe we’re a tremendous growth opportunity.

There is a lot lower risk given our lower relative multiple. So the risk of return upside, I think is there. We’re very optimistic about what we’re going to be achieving for investors over the immediate future and the long term. You have a management team that’s committed to the success of this business owning 15% combined. We look at this as solely an opportunity to create long-term shareholder wealth. And I think our business model is achieving that for our shareholders every day.

Maurice Jackson: Last question. What did I forget to ask?

Kyle Floyd: It’s really about finding the best risk-adjusted way to play commodities. That’s why we’re here. I believe we’re offering that for investors. We’ve continued to demonstrate that with our recent quarterly results and investors expect more of that as we continue to progress and build this business. And what I believe is realized a re-rating for our shareholders. Even if we don’t, we’re going to continue realizing and create value for our shareholders, and it should also be reflected in the share price and our share value at the end of the day.

Maurice Jackson: Mr. Floyd, for someone that wants to learn more about Vox Royalty, please share the contact details.

Kyle Floyd: Absolutely. Voxroyalty.com. We’re on all the social media channels as well. We are happy to engage. There’s also, [email protected]. Please, feel free to be in touch. We love engaging with our investors, and we’ll be happy to share more information.

Maurice Jackson: Mr. Floyd, it’s been a pleasure to speak with you. Wishing you and Fox Royalty the absolute best, sir.

And as a reminder, I am a licensed representative to buy and sell precious metals through Miles Franklin Precious Metals Investments, where we have several options to expand your precious metals portfolio, from physical delivery of gold, silver, platinum, palladium, and rhodium, to offshore depositories, and precious metals IRA’s. Give me a call at 855.505.1900 or you may email: [email protected].  Finally, please subscribe to www.provenandprobable.com, where we provide: Mining Insights and Bullion Sales, subscription is free.

 

Disclosures:
1) Maurice Jackson: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Vox Royalty Corp. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Vox Royalty Corp. My company has a financial relationship with the following companies referred to in this article: Vox Royalty Corp. Proven and Probable disclosures are below.
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Gold Inverted Head-n-Shoulders Suggests $2000+ Is Next Upside Target

By TheTechnicalTraders 

– After a moderately strong rebound from the $1675 lows in early August, Gold has clearly started to set up the Right Shoulder of what appears to be an Inverted Head-and-Shoulders pattern. The recent weakness in the US Dollar suggests any breakdown in the US Dollar below $91.70 will likely prompt a new bullish price advance in Gold targeting highs above $1900 and likely attempt to reach $2100 or higher.

Watch $91.70 On The US Dollar For Next Gold Rally

Currently, the US Dollar is experiencing a few days of upward price trending after breaking downwards from highs near $93.70. Recent lows in the US Dollar, near $91.93 suggest a peak in the US Dollar may have set up. We believe the $91.70 level on the US Dollar is critical to the setup of the Inverted Head-and-Shoulders pattern in Gold and that Gold may trail downward to levels near $1775 before finding real support for the next upside price rally.

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Once that Right Shoulder has completed, likely near $1775 or higher, the next phase for Gold is a very solid upside price rally that should rally above $1845 fairly quickly and attempt to reach the $1920 to $1950 level before the end of 2021. Many of you are familiar with a Head-n-Shoulders pattern and understand the end of this pattern usually prompts a rally equal to the Left Shoulder or Head breakdown range. This means the next rally phase for Gold will likely be a minimum of +$150 to $+165 from the Right Shoulder level.

Strong Upward Support Near $1765 Suggests Rally In Gold Is Pending

Additionally, we wanted to highlight this Gold Monthly chart pattern that suggests a strong upside price channel and a Double-Bottom continue to confirm a very strong potential for an upside price rally in Gold. The CYAN upward sloping price channel suggests Gold will find a strong support near $1765 and the Double-Bottom suggests Gold has already confirmed a strong support level near $1695.

We believe the transition of the US Dollar throughout the end of this year will be key to understanding the type of rally we should expect in Gold and Precious metals. Once the US Dollar falls below the $91.70 level, the upside price pressure in Precious Metals should begin to accelerate. We believe the $91.70 level in the US Dollar is the key catalyst for Gold to break out of this Inverted Head-and-Shoulders pattern.

Additionally, a weaker US Dollar will begin to shift how capital is deployed in the US equities markets and foreign markets. If the US Dollar breaks downward, below $88 or $89, then we may begin to see a shift of capital into foreign or emerging markets. But as long as the US Dollar stays above these key levels, the US Equities markets are likely to continue to attract foreign capital and continue to attempt to trend higher.

As this Inverted Head-and-Shoulders pattern continues to trend through the Right Shoulder, Miners may begin to rally ahead of the upward price trend in Gold. It will be interesting to see if traders are anticipating this Right Shoulder breakout ahead of it actually completing. If so, Miners may begin to rally two to three weeks before Gold really starts to rally away from the Right Shoulder.

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Chris Vermeulen
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TheTechnicalTraders.com