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Nick Hodge, Co-Owner of Digest Publishing and editor of Foundational Profits and Underground Alpha, joins me for our monthly longer-format discussion on macroeconomic factors moving the markets, his key takeaways from the Precious Metals Summit in Beaver Creek, CO; and his portfolio management strategies in select gold, silver, and copper stocks.
We start off reviewing the themes and companies that had his attention at last week’s PM Summit in Beaver Creek.
- Nick addresses the encouraging sentiment and companies focused on execution of their key workstreams, versus worrying about whether we are in a bull market.
- There has been a steady flow of sector news the last few weeks and Nick highlighted some recent news from Empress Royalty Corp. (TSXV:EMPR)(OTCQX:EMPYF), Au Gold Corp (TSXV:AUGC), Southern Cross Gold Consolidated Ltd (TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF), and Banyan Gold Corp. (TSXV:BYN) (OTCQB: BYAGF) that stood out to him leading into and during the conference.
- We discussed the rising number of spinouts and new spin-cos being created or contemplated, and Nick highlighted:
- Riverside Resources Inc. (TSX-V: RRI) (OTCQB: RVSDF), getting ready to spin out Ravena with their Mexican assets, after successfully spinning out both Capitan Silver Corp. (TSXV: CAPT) (OTCQX: CAPTF) and Blue Jay Gold Corp. (TSXV: JAY) (OTCQB: JAYGF)
- Latin Metals Inc. (TSXV: LMS) (OTCQB: LMSQF) and Bravo Mining Corp. (TSXV: BRVO) (OTCQX: BRVMF) are both considering spinouts of assets which are not getting much value in their portfolios at present.
- Aldebaran Resources Inc. (TSX-V: ALDE, OTCQX: ADBRF) just successfully spun out Centauri Minerals Inc. (TSXV: CENT).
Next we pivoted to the continued strength in copper throughout this year.
- Nick pointed out that after substantial inflows of copper into the US to get in front of potential tariff news from the Trump administration, that the decision not to put a tariff on the red metal, in lieu of higher diesel and inflation readings, did not cause a collapse in copper like it did last summer.
- He highlighted Ero Copper Corp. (TSX: ERO, NYSE: ERO) as a name he is still holding, and flagged Koryx Copper Inc. (TSX-V: KRY) as one of the best meetings he had in Beaver Creek and that he strongly considering a position in it.
Wrapping up we comingled thoughts on gold, silver, and the macroeconomics at play:
- He remains encouraged that we’ll see gold hold above $4,000 and would like to see the yellow metal stay above $4,175.
- He sees more potential weakness in Silver and wouldn’t be surprised to see it pull back down to retest $55 again, before moving back higher again.
- Nick quickly summarized the macro movers citing trends in the US Dollar, inflation, oil and diesel, geopolitics, and rising short-term interest rates at the short-end of the yield curve due to Fed policy contrasted against flattening rates at the long-end of the curve.
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Investment disclaimer:
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
