Gold news

 [Music] [Music] I'm Charlotte McLoud with investing news.com and here today with me is Brian Lenny founder of junior stock review thank you so much for being here great to have you oh thank you for having me really good to be talking with you and we haven't actually spoken since September so I'm gonna I'm going to start simple and try to get your take on sentiment in the resource sector so I'm seeing areas of really strong bullishness but then there's also some pain points so for me it's it's a little

bit confusing yeah it's pretty terrible this it's uh I would say it's probably the worst I've seen which depending on your perspective is is probably a good thing yeah I think you want to see capitulation on on both ends to tell you when sentiment is sort of changing on the upside and on the downside and uh yeah absolutely you know I have a good network of friends that do the same thing I do in the sector and a lot of guys are looking for you know other things to invest in or where to put

their money um so I would say that's a pretty good sign of capitulation you know things can always go lower but uh you know I think that uh you know I think we got to be near bottom the other side like what you said you know if you're invested in uranium I think you're you're doing pretty well uh and so you can have a different view of things uh but if you're not then uh it's been pretty abysal yeah I I just wrapped up your uranium interview right now so maybe that that area of bullishness is

probably carrying over from that okay so going back to that conversation we had in September at the time I believe you were looking to deploy cash so following up on that did you end up doing that what what ended up happening absolutely yeah that's that's one thing that you know it the market definitely affects me and what the the ups and downs uh but I have had some wins and I'll take some of those wins I've been good at taking profits and transferring those into things uh that are you know at huge

discounts and so that's what I've been doing over the last six months slowly you know TR buying on days where when the market is we a little bit worse than others and uh that's when I'll pick up Tres of of shares and the companies that I think are have what I would call possible short-term catalysts but again the market had has been so bad in 22 2022 and 2023 that those Kus were being sold but I think you know in the last six months I would say that's starting to change I would say in Precious bals

especially some companies are gaining traction and I think that's something to watch for too when you're kind of coming off a bottom I think the the better companies start getting valuations uh or getting share price appreciation before the rest of the crowd okay okay interesting because I was hearing that before where a company would release news and it's good but then everybody sells because they're just sick of it so that is now changing yeah from my I think it depends on what you're looking

at that's always always seemingly the case is I think you know depending on your portfolio and how you pick companies um you may not be seeing as much of an uplift as as before but I can think of a company I'll give you an example canland minerals converts uh their 20% Equity stake in froet into a 4% NSR their share price went from 63 cents and I think it hit a high almost of 80 cents now that's not like a burn burner of a of a appreciation but to me if that happened a year ago or two years

ago maybe it doesn't get the share price maybe it goes down the other way you know 15 C you know so to me that's a good sign New Orleans is a great company they could put out good news we saw the share price go up it came back a little bit um but I think that's again another step in the right direction and you're seeing pockets of it okay okay that's a really interesting point well keep an eye on that one so I took a look at your January presentation for the metals investor forum and I think you answered

a question that everybody wants to know which is what is the next metal that might be going into a bull market and so you had mentioned gold but more specifically I think the gold stocks which are disconnected and lots of people are looking at that wondering when will they catch out so maybe we get your take on on Al sure yeah I I think that's the most glaring opportunity for a bull market that we see out there I think on the the metal side of things I think there's every reason that we've

ever probably talked about the debts Rising you know if you have problems in Europe in the Middle East uh numerous dead issues across not just the states but Europe South America everywhere so I think there's every reason to think that the gold price or the silver price are going to stay in this range we have to talk about going higher but the real is that disconnect with the equities and so to me I think what we just spoke about I think there's there's at least a cool hord of you know die hired investors

that have been around for a while maybe they were waiting um if you look at I can only speak personally uh when I started seeing good news sold I stopped buying new stuff I I made over the last two years I probably made four new picks and they were at Pockets where I thought things would appreciate and I end up being right and so but outside of those I wasn't buying anything new and uh and I think we get to this spot today sentiment is as terrible as I've seen it some share price some news is being

bought instead of sold and I think that's what you're starting to see particular in the gold equities and from what I've heard from other conferences such as bimo that there's some generalist money that is starting to at least look and especially if it's American generalist money I think that's a really good sign um of course they need to start buying something uh but again that's that's a good sign people are starting to put it together you know the Central Bank buying we've seen over

the last two years is also indicative of what's going on in this world and I think that's what's starting to catch people's attention moving into 2024 a US election year um there could be even more turmoil ahead for us and that's usually good for gold okay okay interesting point on those generalists they're they're at their window shopping so we just need them to come into the store hopefully so I wonder if you can share a little bit more on how your position along the gold stocks in that

case sure so companies like canland uh you know I've been burned in the past playing expiration and it's been a really good learning experience for me because unfortunately I think most people have to learn about the risk associated with expiration by losing money uh to me I've moved a lot of money into either Prospect generation or hybrid of the two so like a prospect generator basically goes out assembles projects creates targets and then goes to the senior miners to pay for expiration work and comes up with a deal

on that project it's a good way to play it however a lot of investors don't want to take the time it it it takes to get that Es answer or that Discovery and so maybe the hybrid model of the two is the is the one that attracts more people and it's definitely attracted me where instead of those five projects optioning them all they option four of them and take one for themselves and so like another company of Ryan resources that's in Finland they've been they've been drilling their own property there but it

looks like the value right now that's going to catch the market attention is actually in their joint ventured company or joint ventured project heli with B2 gold and I think considering what's going on in the central lap belt uh with icory right beside them again this is another story I think that's going to catch attention and so that's another thing I've been putting money into um both precious bals related but also ways to play Discovery without necessarily taking the huge risks you take when you

go 100% in on an expiration project yeah I think definitely a little a little bit less risky can can certainly be appealing for people so that's a little bit about what is going on with gold and I'm interested also to get your take on Silver because we didn't exactly say gold is necessarily going to go way higher but silver we do hear to us to follow gold and an outperforms as well as silver stock so thoughts on silver or silver stocks yeah well the history shows that silver is gold on steroids

and continually if you look at the charts you'll see that if gold gold moves up 50% Silver's moving up 200% and I think you're going to see the same sort of you know history PES prologue history will repeat uh Silver's a little bit different the industrial component to it has made it much more volatile and that's that's actually a positive in many respects if you can buy it when it's low but it has that upside potential but whether it's solar panels or you know the the electrification of

this world silver is not only going to be a part of that but it also has that monetary component which I think becomes ever present um and so yeah there absolutely there's going to be an opportunity in silver but again the the to me the investable companies out there is super small and in particular like there I'm only invested in one company that you could necessarily call a silver company just sort of for those reasons uh but for investors that are looking for leverage uh but you have to expect

more volatility uh silver could be a great play in the next you know five two to two to five years okay good to know yeah I know the the universe is very small of silver stocks Okay so so going over to Copper this is another metal that you mentioned in that January presentation and I like the point you made so I'm going to make sure that I parrat you relatively correctly so essentially you were seeing we've got these recession concerns and they're kind of facing off against the Net Zero

goals so can you go into those Dynamics and what they need for copper sure so it I think most analysts myself if you project out to 2050 what it means to get to net carbon zero uh most people are probably going to tell you you basically need to double the copper production which is massive um not only is it massive I don't think it actually can be done but that's kind of besides the plate um so that's the opportunity that's on the demand side uh the the flip side is that that that demand's

going to be affected by a potential recession and uh the the recession that most people have been calling is they've been calling it for well over a year now and has it really happened or is it happening is it going to like all these questions and so my point was that you you've got this this great outlook for copper demand it could be contrasted in the short term uh because of a possible recession and how that precipitates out because copper is sort of that you know Dr copper it tells you how the economy

is doing so a recession in the short term I think could definitely affect it uh but long term you know I think regardless of recessions regardless of where uh spending is on a government level spending is going to go towards infrastructure it's going to go towards EVs and you could be assured that there could be chaos around but I think people are still going to spend money on Copper um it's just what your time frame is and so that's sort of the point that's why I say maybe it's going to be the next one

depending on what we get in terms of recession or not okay thank you for explaining that I think that makes a lot of sense and so on my followup was going to be is it now the time to start putting money into copper is that what you're doing but then it sounds like it's you've got to figure out your timeing and I also think it depends on what your your kind of company you're investing in so if you're investing in a copper Explorer or let's say a prospect generator that explores for copper

Discovery can can give you a win or give you profits regardless almost of where the rest of the market is so I wouldn't be as quite as concerned about timing if you're on the expiration side but that's definitely risky and that might that should align with you if that's what you want to play the developers it could be argued that now might not be the time to invest but again these are like individual company things where you have to figure out what's go what's involved in that

company what they're going to be doing over the next year are they funded uh what's are they a worldclass deposit or is this something that's sort of in the mid tier I think if you stick to the world class stuff those sorts of deposits the share prices might go down but my thought would be is that they're going to have interest from the majors and from investors almost regardless and don't be too concerned about being perfect about your timing um buy buy in Tres ease your way into it if it's

falling let it come to you and just take your time into it but again if you're picky you stick to that best of the best stuff the timing to me is the secondary part of it just as long as you can actually hold the stock which can be a problem yes yes and you always do a good job of reminding as you know you shouldn't base your investment on the commodity and what itself is doing so good to talk about that as well now I also want to look at nickel I know this is a market that you cover there's some

interesting things going on at the moment yeah so I was reading this this Bloomberg article last week or so about how the major nickel reers are pretty concerned about the Indonesian Outlook and so we can talk a little that but one point that I thought was quite interesting is these the big rares they have a Greeno product and it's just not really that appealing to the buyers so I'm sure there's there's many insights you could share there yeah the the Indonesian nickel production has really

been a been a cause for concern for a lot of the rest of the world because they can produce nickl mat which is then converted either in IND IIA or China into a nickel sulfate which can feed the battery market and the real problem is they they created it at such a discount to what the sulfide producers are doing in the tier one Nations that uh that's where you get this kind of disparity and the the nickel price is kind of falling off a cliff and that article that might have been with Twiggy was asking the LM

he said we need to differentiate between clean nickel and dirty nickel moving forward and I think that's something that's absolutely going to happen uh I think there's going to be a bifurcation in price I don't think it's that cure all I coming from manufacturing myself and I see how things operate in the world you're still going to get infiltration from the cheaper nickel but it's going to be harder and you're going to have companies uh such as like the sumos in the world if you if you go back

and over the last year they're one of the biggest players in the nickel market look at the Investments that they've made they've made investments in junior nickel companies in good jurisdictions that's how they're going to say I'm buying clean nickel I'm buying let's say responsible nickel and that's how they're going to differentiate instead of maybe going to the lme or going to these Global exchanges and sort of getting whatever schmorgesborg is they have an inventory

um so I think that's what you're going to see moving forward these big nickel companies that are actually concerned or maybe battery makers I should say actually concerned about being green or fulfilling some ESG requirement I think they're going to they're going to probably look at going to the source or you're going to see them push for this kind of designation where did this come from the tracing back to its source because the the Indonesian laterade or and the HP production comes with a huge

carbon footprint especially when you think about where it has transported some cases around the world to get to you and so the the the whole idea of using EVS to uh to Electrify and to reduce emissions is kind of counteracted with where it's coming from so if if the idea truly is to go green then this has to happen and I think it will happen uh but again the timelines are always wed so okay but so there's there's an angle for nickel in there it's so it's like yeah okay I think the the final thing

that I wanted to follow up on is oil and gas because when we had last spoken you said it was quite a big part of your portfolio and I wanted to see if that is so the case it's still the case and I still think I see every reason uh to to see an oil price that's higher over the next two to three years I think my time Horizon um might have to expand if we do indeed hit recession and how that might precipitate into the oil and gas market uh but I'm still I'm still bullish I'm still bullish on the whole sector

especially when we get into moments like this where where sentiment is so bad um and you can see how society says they want to move forward if that truly is the case then I don't know how you can't be a bull in the resource sector sort of regardless of of of of what it is you just have to have the time span to last to hit that bull market when it comes and that is not easy that's it's easier said than done but again people with with out looks that are more than two months um I think eventually get it and

start to come into this sector okay I think I think that kind of came in a little bit full circle in this interview but I will I'll put it back to you and ask if there's any final thoughts you want to share or UPS where to forign you anything else sure uh so I publish Junior shock review uh premium you can go to Junior shock review.com I also have a YouTube uh video series called field notes uh which follows me to the site of the companies that I'm invested in and really I'm very privileged to be

able to go to site and I think for the regular retail investor they're not going to be able to do that so I think it's a great opportunity to co andc site uh with me in the companies that that I'm investing in yes I have I have enjoyed what I've seen of it so far it's really well put together okay thank you so much for coming by to talk always really good to have you thanks for having me okay and once again I'm Charlotte McLoud with investing news.com and this is BR Lenny with junior stock

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