Follow your favourite podcasts, listen offline and in the car with CarPlay and Android Auto, and always pick up where you left off. Free to try.
Stijn Schmitz welcomes John Feneck to the show. John Feneck is CEO Feneck Consulting Group. The conversation begins with gold’s recent consolidation, noting it has turned negative year-to-date and is down around 5%. Feneck asserts the bull case remains intact, citing support at 3,900–4,000 and dismissing comparisons to the 2016 rate cycle because the Federal Reserve lacks room for aggressive hikes. He highlights Fed Chair Worsh’s hawkish rhetoric as a temporary headwind but points to improving inflation data and a divided policy landscape. The bond market saw a notable intervention by Scott Besson in August, which briefly buoyed sentiment before the Fed’s Jackson Hole messaging reversed gains. Geopolitical tensions—wars in Ukraine and the Middle East, plus U.S. election uncertainty—create a favorable backdrop for gold, though markets have become somewhat desensitized. Shifting to mining equities, Feneck describes a hub-and-spoke portfolio strategy, using GDX and GDXJ as core holdings and adding select junior explorers and developers. He favors close-ology plays where management holds significant equity and major miners like Agnico Eagle are logical consolidators. He mentions Opal Weka Explorations, eye metal, Lahonton Gold, Sonora Gold, and Cartier Resources as examples, emphasizing the potential for outsized returns through takeovers or rerating. On valuation, he contrasts his short-term, catalyst-driven approach with the more bullish long-term price assumptions used by peers. The discussion then turns to critical minerals, particularly tungsten, where Feneck sees a structural supply deficit and limited investment vehicles. He details positions in KAZR, Guardian, Western Star, and Spartan, and also highlights First Tellurium for its drone battery technology. Jurisdiction is key; he favors companies pivoting to U.S.-aligned regions and notes improving conditions in Colombia and Argentina. For defense metals, patience is required, with some holdings not reaching production until 2030. Feneck concludes by inviting listeners to explore his real-time email service and advisory resources at Feneck Consulting Group.
