gold news

 [Music] I'm Charlotte McLoud with investing news.com and here today with me is John fenick portfolio manager and consultant at Fen Consulting thank you so much for being here great to have you great to see you again thank you yes yes we're checking in I think it's been about two months since we last talked of course the the landscape has changed quite a bit in in many ways so we got a lot to talk about I thought we start as usual with gold so it was still I checked it was around the 2650 level when we spoke

at that time and since then if we've seen it go past 2900 now it's pulled back a little bit so I think good to start by talking about where you see support and resistance for gge sure so just summarizing last year when you and I were sitting here uh 12 months ago um we were talking about 1900 holding for months and months and months right and and that that was a very positive development and and um then we saw gold break above 2000 and and never really look back um last year was a tremendous

year for the metal it was up around 28% I believe um when you and I last talked right in in two months ago we were saying that over that 2629 uh level was a pivot move up and we would break 2700 which we did and then we have been calling for 3,000 for months as you know uh because the big Banks like City and and Goldman and and a lot of others are now on board with this 3,000 gold narrative which is huge for gold miners um and so uh right now sitting at 2870 almost as we record this I think we take another move at at 3,000 here over

the next few months I mean most banks are calling for 3,000 by you know end of September I think it could happen a lot sooner than that um because of you know the rhetoric we're seeing out of the us with regards to Fort Knox and just so many developments I think I mean the landscape has never really looked better for gold in history yeah I was I remembered how you had talked about those big Banks and they're basically all looking for $33,000 gold so it feels I think you'd said strange to kind of be

in alignment there so right or should we expect for gold yeah I guess to overshoot that level absolutely yeah I mean you're not probably going to resistance until 3150 is um so a move from let's say 2850 to 3150 is pretty substantial in the metal right here um but that would be an incredible thing for gold mining stocks um we just had earnings as you know for some of the big boys over the last two weeks um the largest three Holdings in GDX which is the barometer for the sector I believe

um are numont agnico and baric right um when you look at the cost that these companies have there's a metric called Allin sustaining cost per ounce right aisc aisc in Newmont was around 1620 not wonderful but down from their previous quarter um they're the highest of the three then you go to to baric you're at 1450 and then you go down to agnico am and they're at 1316 an ounce so regardless if you're at 1316 on the lowend or 1620 on the high end Gold's at 2850 I mean the free cash flow that's

going to be generated by these companies is huge you can see it in the earnings if you don't know how to read an earnings report I would suggest you know working with someone like myself or ask your financial adviser like you need to understand how big this is because these stocks are still trading really poorly versus the market so there's a great opportunity yeah yeah and I have to imagine that that will soon start to get that broader recognition do you see that kicking in at some at some point well um

gosh I've been talking about this for over a decade uh when I was at spra I said you know what would happen if we had more representation in the major indices like the S&P or the NASDAQ and you know we're a fractional part of the NASDAQ but we're literally 0.1% of the S&P it's one stock out of 500 it's numont right so so why wouldn't we see Alamos or agnico or some of these other stocks that are really doing well be included Ed in a hotter gold market I think it's possible and so creating more

um awareness about our sector is important and that's what I try to do with my followers and clients is just try to tell them hey look gold is not broken going from you know like little under 3,000 to 2850 this is just a breather in a long-term Trend so I would encourage people to look at a 15 to 20 year chart of gold looks very constructive yeah maybe maybe you can say a little bit more about that is it is it kind of that gold as an industry has a bit of a a marketing problem yep absolutely um I know a lot

of CEOs that are geologists by trade and have no clue how to get to clients like mine um it's it's not me bragging about that it's me literally turning down more clients that I take on we probably had 60 inquiries in January and I took on five new clients because most of the clients that to me Charlotte are like Bitcoin guys B Bros uh technology people they're like hey what you know I need 100% it's not happening like you and I both know this is a hard industry and you have to be patient and most people

aren't patient so we're trying to find these really good clients that are higher net worth that are patient investors that see the ride for for the next one to three years I mean it's going to be a really good um run here in gold and silver stocks if you're willing to be patient yeah yeah and interesting to see how you select for for people who can understand that okay so gold looking good I want to make sure to check in with you on the fed and I I was telling you before we turn the camera on I I am

allowing it maybe for myself to get overshadowed by all these other interesting things in the gold market but we got to check in on that so you told us previously you're expecting more than two cuts in 2025 is that still your call yeah so right now as we speak the FED is factoring in two cuts if you remember back in November at the time of the election it was three or four but that got pulled back for sure in the December meeting and the market kind of didn't like that but to be frank it's

been quite resilient at the broad market so I think a scenario where we see three Cuts is very possible if you look at the ISM Manufacturing number which just came out a few hours ago very inflationary you know um the employment piece of that meaning the labor piece of that very poor so what is the Fed looking for stable labor market you know uh lower inflation these are both not what happened just three hours ago so the FED is going to have to act more and um I'll just give your listeners kind of the

rund down here for March right so economically we're looking at non-farm payrolls on March 7th that's always a big number to me in in in mining and metals um the estimates 133,000 new jobs March 12th the CPI we never I'm literally at my computer every CPI morning never never traveling never doing anything like this um because it is important and then March 19th we have the fed the FED is less important from a decision-making process this time because the FED is uh a 5% probability of any type of move so it's going to be

like one of those meetings where it's more about what poell is saying than the actual decision yeah yeah always always interesting to try to parse through those statements and figure out what they really mean so okay that gives us an idea I think of what to be looking out for here I wonder if we can take a look over and get some updates on the gold companies that that you're focusing on sure uh so there's a lot of good value in Gold stocks right now I'll I'll try to Rattle off a few without going into too much

detail um I just met with NEX Gold's uh CEO Uh Kevin bulock um down at bimo uh in Florida the Stock's at 42 cents us uh the ticker is nxg CF uh nxg in Canada and uh both Kevin and I are perplexed as to why the stock is doing what it's doing um I can't verify there's there's naked short interest on it meaning Short Selling but I would say that it doesn't seem logical that you you see a stock go from 50 cents to 42 cents on no bad news um and and they've just completed a

merger which gets them the 7 million ounces of gold this is not like a million ounce deposit or something this is 7 million ounces and and it's run by a company uh Charlotte that's able to Pivot into one project or the other now which I think most investors are missing because when they were just the originally treasury medals then next gold the signal next gold merger let them you know in December be able to move into one or the other which gives them flexibility which I like um I have to say I think

uh um gosh there's there's so many in my brain right now I say um you know one that that that doesn't get much uh notoriety at all as 1911 gold uh that's aumf uh aumb in Canada um I've known sha for about two years now and I was just intrigued when I I look at long-term charts I like to go back and look at 2011 2012 as a proxy for how certain gold stocks did then and this stock had a billion doll market cap back then and now the market cap is under 20 million so that that doesn't imply that we're

getting back to a billion right but it does imply that 20 million is way too low a billion was probably way too high so somewhere in the middle would mean that you're making hundreds of percent on a stock I'm not suggesting that's going to happen but when you look at the production that that company could put up it's a high-grade deposit they're only a couple of years away from production so this isn't one of those Juniors where you have to wait seven or eight years to get production so we like

that um let me think of one more so yeah US Gold in the US um USU is the Ticker on the NASDAQ no Canadian ticker but I just saw they picked up some Canadian analyst coverage so it's possible that they're going to launch a Canadian ticker this year but probably the best name in mining US Gold I mean it's in a Trump World this is uh in Wyoming permitted as of November so maybe we didn't talk about it since we last met but that permitting took the stock from $6 up to $ 850 it then came back into

the sixes and is now back in the eights so it's it's firmly bottomed I think between five and six bucks and now the upside is is is is high in my opinion because they only have 12.2 million shares out so when you see a stock like that on a good exchange with a good name at a great state fully permitted run by a guy George B who I think honestly could could put it into production because he's done this in South America Central America in much more challenging places than Wyoming okay that's that's a good run

through I think of those those three companies and as usual we'll we'll put the names and the tickers in the video description so people can can know about them and one small follow-up question you mentioned looking at this company and wondering if there's Short Selling going on there and it's it's hard to tell and it seems like it's a pretty pervasive issue that maybe people aren't aware of and they do add that confusion anything you would add there on how you navigate when you see that possibly

happening yeah I'd love to talk about that for a minute I think it's really important for listeners and clients to understand how this works first thing I would mention is go to save Canadian mining.com it's a free website clients can go there CEOs can go there and join the fight against the entities that try to make our lives difficult on a daily basis I mean I don't mind Short Selling I do mind naked Short Selling because you don't know who's doing what and they're doing it with shares that don't

even exist um there's a company right now that I I was just buying on Friday called American tungsten uh it's dmrf in the US and T N in Canada I'm meeting with a CEO for the first time tomorrow uh here at the conference and uh the Stock's just getting pummeled by shorts I can see it if you look at stockwatch.com which is a good free website as well you can see these Anonymous number 79 Morgan Stanley wait Morgan Stanley can't even buy the stock because it's not even a price that they

can buy the stock at so how how are these people selling shares right it's like a lot of weird stuff going on in the tape in that stock so I love to out short sers in our sector because it's challenging enough to buy mining stocks right so you don't need this extra stress um so I would suggest go to Safe Canadian and Mining uh Terry Lynch the CEO of power nickel uh PN PNF in EST states pnpn in Canada has done a tremendous job with um making people aware of these entities and the problems

that exist and by the way Terry and I talked about this last year here at pedc in March sitting right there um that we said we have to do something about these short sellers because they were swarming his stock and um we did a couple of presentations together I interviewed him and somewhere in that you know View ership um the stock just took off and then they hit some really good drill holes and the stock now just did a $40 million financing bringing in people like Rob McAn and um Robert friedin so

the the moral of the story is Terry sitting there at 16 cents last year stocks at a buck 10 right now I mean it's just good for you Terry you know like let's extinguish more of these people that are not supportive of our sector yeah yeah I think that's a good overview and also encourage people to go check out the safe Canadian mining website it's probably time for me to do an update with Terry I've talked about it to him in the past but not for I not sure aware right okay we'll go go look

for him later okay so so that is we've covered a bit on the gold side there you started to mention tungsten and I think that's a good transition into critical minerals we usually spend some time talking about your your special situation type of companies and I think it's pretty relevant right now because we've got all this tariff and trade War situation happening very fluid right now but it has highlighted the need for critical mineral so anything you would talk about there yeah so we've been

talking about tungsten for almost two years now because a CEO brought to my attention that um 81% of it was produced in China in 2023 and then I looked at who else was producing it and it was like companies that aren't necessarily allies to the US right like Russia right so when you add up the the number it's about 91 % of tungsten produced globally in places that are not the us or are not friendly to the US the US produced 0% of tungsten in 2023 and 2024 so I've been focusing on North American tungsten

companies because of the following um you saw at the the huge meeting last week in Europe that almost every PM or or minister or you name the the head of that country they were all talking about increasing fense spending right this is a major Trend because they're seeing the need for protection in a protectionist kind of world I think and part of that is tungsten believe it or not because it is in tanks it's in missiles it's in body armor it's in bullets so how do you get it as as uh uh as as as the US you

have to figure stuff out and that's why I liked American tungsten that I just mentioned uh dmrf because you know this is a company that is in Idaho and they're a past producer and I'm excited to meet Murray tomorrow to learn more about the company um but the other one that I've talked about your show before was Guardian metal resources um GMT LF in the states and g.l in London they don't have a Canadian thinker but Oliver is a really sharp young CEO he is going to get it done

there um when I look at who's coming into the F the products um it's a billionaire it's a it's a New York City mutual fund that I know it's like people that aren't going to sell right so like you want to build a share structure with people that see the long game like me you know we haven't sold a share of that that stock since I met him in 2023 we bought it first around 16 17 cents it's trading at 41 cents right now I think it's going to test the the high from

last year which was 52 and a half and probably break through that this year because there's a lot happening there they picked up a second project in Nevada recently so guardan metal in Nevada American tungsten and Idaho um I just talked to Al mon resources for the first time last week um we're supposed to meet here at the conference um and Fireweed is in Canada right so that's FW EDF um they got a $35 million grants just in December so I'm not sure I mentioned that on your show last time

but 35 million bucks in a form of a grant is huge for investors because it's not deluded to us right so I see more of these kind of Grants being handed out out and I think companies like Guardian American tungsten I just met with Stillwater critical here which is um pgf in the states PGE in Canada they're they're talking to their Congressman in Montana they just flew them over the project in a helicopter um Montana is a great state there's going to be a lot of good things happening in these US states

like Nevada Montana Wyoming Idaho I mean it's just it's just that that kind of a year where Trump is is going to bring more awareness to investors about the need for critical minerals in North America yeah I certainly we're starting to see that and and one small follow up on the critical minerals angle so it's an umbrella that covers a lot of different things and I think maybe it can get confusing on which to pursue is it should should investors aim for those maybe more defense Focus critical minor

right now is that maybe the move I think so yes I in a military household so um I I know right now where we're at in the world is is not as good of a place as people think um I think you know you have to be able to look at metals like tungsten or antimony and and different things and say this has got to be a part of my portfolio and how do I play that well you can't buy an ETF that tracks tungsten price or antimony price you can in gold silver copper Etc right so the the way to play it is

through equities the antimony play we're seeing here at the conference is Mandalay resources um MN djf in the states and um m andd in Canada I believe a lot of information from flying in at 2 o'clock in the morning last night um but uh manderlay has 76 million in cash and no debt and they have a producing antimony project which I like a lot so I'm excited to meet them tomorrow okay very good well I will let you go I I momentarily forgot that you're running I think on very little sleep so I think a

good a good look at everything despite that so any any final thoughts you would leave investors with yeah uh this is the time right now to to get invested I said that probably last Pac um but I mean anyone who's been doing this for 12 to 18 months has had a pretty good experience I would imagine you know we're up 26% almost last year in a market where GDX was up 10.17 so we're grinding every day trying to find you know performance out there for our clients and we hope people will contact us um one last thing if you

don't mind um I just got back from Florida that's where I flew in from and I was down there for bimo and meeting hedge funds and private Equity products and and and um we're going to have an awesome conference down there again at the Four Seasons for Lauderdale May 11th through the 13th right after that this year we're flying uh right to Atlanta and doing Buckhead um May 14th through the 16th so we're going to have two great us-based conferences and we hope people will reach out to us and and

learn more because we we want to have clients there and and and hopefully get something out of it okay very good so we will Mark our calendars for those ones and and for now I'll I'll release you back onto the floor of pdac thank you so much for being here thanks a lot TR good and once again I'm Charlotte McLoud with investing news.com and this is John fenick with fenick Consulting [Music]