The KE Report

Jordan Roy-Byrne, CMT, MFTA, Editor of The Daily Gold, joins me to discuss the ongoing divergence between the rally in precious metals versus the corrective move in US general equity markets.    This signifies that the real precious metals bull market has begun. 
 
We review the recent rallies in gold and silver prices, as well as the precious metals equities, in relation to the S&P 500 or the 60 stocks/40 bonds portfolio.  We discuss the capital rotation out of growth stocks and into gold and gold stocks, and what a secular precious metals bull market in real terms means for strength and duration of this coming move.    
 
Wrapping up we discuss the importance of picking quality PM stocks as the key ingredient for outperformance, versus just being concerned about catching technical turns in the sector.
 
Click here to visit Jordan’s site – The Daily Gold

Roger Rosmus, Founder, CEO, & Director of Goliath Resources (TSX.V: GOT) (OTCQB: GOTRF), joins me to review the final batches of more high-grade gold assay results from the 2024 drill program, returned from both the reduced intrusion mineralization and multiple new stacked veins at the Surebet and Bonanza Zones at the Surebet Discovery in the Golden Triangle of British Columbia.  We also look ahead to the 2025 exploration strategy and program anticipated to kick back off in May.
 
We start off reviewing the key takeaways from the Surebet Zone, Bonanza Shear and Golden Gate zone, as well as 4 additional new stacked gold veins, now totaling 12 veins stretching vertically over 1.2 km.  Last year program was successful in demonstrating the untapped discovery potential and consistent high grades and mineable widths of the gold-mineralized stacked layers in the Surebet system that measures 1.8 km2 and remains wide open. 
 
Another key exploration initiative from the prior exploration program was relogging many drill core intercepts drilled from 2021-2023, where results confirmed multiple intercepts of an intrusion related feeder dyke system that remains open, strongly indicating close proximity to a large gold-rich intrusive source at depth (Reduced Intrusion Related Gold system, RIRG).  This reduced intrusion mineralization will continue to be a focus of follow-up relogging and new drill targets for this year’s program, with the plans to get more core sent back off to the assay labs in May, once the team gets mobilized at camp.
 
We touched briefly upon the regional targets like Treasure Island and Jackpot that did have some indications of gold and silver, but didn’t return assays that were of the same grades as what was seen at surface in the grab and channel samples, so there will be surveys flown and more targeting work done in 2025, to prepare new drill targets for 2026.   The focus of the 2025 drill program will mainly be expanding mineralization at the Surbet Discovery along strike, further down in depth below the valley floor, and also doing some infill drilling at 100 meter spacings to connect together isolated holes into a more comprehensive and continuous mineralized model.
 
Roger also highlighted the strategic investments last year and this year Crescat Capital, Larry Childress, a Singapore-based commodity fund, Rob McEwen.  Importantly, in a more recent transaction a strategic C$10,000,000 investment by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) was made into Goliath Resources; where both companies now have shares and exposure in the respective companies.
 
If you have any questions for Roger about Goliath Resources, then please email me at Shad@kereport.com and then we’ll get those answered or covered in a future interviews.
 
In full disclosure, Shad is a shareholder of Goliath Resources at the time of this recording.
 
Click here to follow the latest news from Goliath Resources

Dave Erfle, Editor of the Junior Miner Junky, joins us to discuss all the volatility in markets as a result of both geopolitical conflict and the economic uncertainty about the global trade wars underway. Gold, silver, and the precious metals stocks continue to be well bid and diverge from the continued decline in US stock markets.  He believes this illustrates a rotation in capital as investors pull profits out of the highly-valued tech stocks and cryptocurrencies, and park some of it the safe haven of precious metals.
 
With regards to the gold it is continuing to be well bid above $2,900 but is overbought on the weekly and monthly charts and may be due for a rest.  However, it is encouraging to see silver blast back up above the $33 level, and Dave notes some key overhead resistance levels in GDX and the ratio of gold to US equities that both look ready to break higher in a bullish posture.   Additionally, we note the strength lately in a number of the silver stocks as another indicator that silver and the PM stocks may be signaling an extension of this bullish leg higher.
 
Wrapping up we discuss some nuances around which type of companies are continuing to get bids from investors.  He points out that this is not a scenario where the whole sector is rising higher, and it is still important to pick quality stocks with the right fundamental ingredients.  Another point raised is how critical it is for resource stocks to get their US listings on a big board exchange, allowing a larger pool of American capital and institutions to drive additional liquidity into their shares. Dave explains that he had a systematic approach and investing rules in place to keep him optimally positioned within his portfolio positions.
 
Click here to visit the Junior Miner Junky website to learn more about Dave’s investment letter. 

Jeff Christian, Managing Partner at the CPM Group joins us to discuss the current trends and influencing factors in the precious metals market. 
 
The discussion kicks off with an overview of market performance, pointing out that precious metals are behaving differently from the broad averages. Jeff addresses the significant reduction in central bank gold purchases in 2024 compared to 2023, attributing it to several factors including higher gold prices and central banks' focus on supporting their economies amid higher inflation and weaker economic activity. Jeff also discusses the trend of central banks selling euros rather than US dollars to fund their gold purchases, debunking the notion that central banks are moving away from the dollar. 
 
The conversation shifts to private investment demand, noting a significant increase in gold purchases by private investors despite higher prices. Jeff shares insights on the commitment of traders (CoT) reports, emphasizing a notable increase in long positions and a decrease in short positions by institutional investors in the gold market. 
 
We then move to silver, the contrasting behavior of silver, which is not supported by central banks and sees different investment patterns. Historical comparisons are made to past periods of economic uncertainty, drawing parallels with the late 1970s and early 1980s. Jeff provides his perspective on the potential for silver prices to spike to $50, albeit briefly, and offers strategic advice for investors to manage such a scenario
 
Jeff also touches upon the ongoing underperformance of gold stocks compared to gold itself, attributing it to a broader shift in investment strategies and some disenchantment with the mining industry. 
 
Click here to visit the CPM Group website to learn more about the firm. 

Joel Elconin, Co-Host of the PreMarket Prep Show joins us to discuss the markets continued fall, and if this could develop into a major market crash. 
 
The discussion begins with an overview of the significant declines in major indices, including the S&P 500, Dow, NASDAQ, and Russell, highlighting the widespread market downturn. Joel elaborates on the limited support and uncertainty affecting market sentiment, emphasizing the role of geopolitical factors and US policy decisions. We discuss the implications of overvalued markets, algorithmic trading, and the impact of current US economic policies, such as tariffs, job cuts, and reduced government spending, on potential recession risks. 
 
The conversation shifts to the ongoing trade wars and their global impact, leading to capital outflows from the US and a weakening dollar. Joel provides technical analysis, suggesting key levels for potential market corrections and emphasizes the shift from growth to value sectors in investing.
 
Click here to visit Joel’s PreMarket Prep website.

Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of Marc To Market joins us to recap a jam-packed week filled with significant financial news including US tariffs, economic data from the US, President Trump's address to Congress, Federal Reserve Chairman Powell's comments, and a substantial decline in the US dollar's value. 
 
The discussion covers the impact of tariffs on US growth and economic sentiment, highlighting the uncertainty creeping into markets and a 'growth scare' that affected the stock market and bond yields. Marc also delves into European financial reactions fueled by the US's stance on EU security issues, leading to increased military spending and resulting in rising European bond yields. 
 
The conversation extends to Fed policies considering Powell’s recent statements and the market’s expectations on rate cuts. 
 
Additionally, we explore gold and other precious metals, factors driving their demand, and the broader economic implications. We also touch on cryptocurrencies, especially Bitcoin, analyzing their volatility, speculative nature, and detailed discussion on the US government's creating a strategic reserve filled with confiscated crypto assets.
 
Click here to visit Marc’s site - Marc To Market. 

Welcome to The KE Report Weekend Show!
 
On this weekend’s show we focus on the continued decline in US markets and recap the recent PDAC conference looking for opportunities in metals stocks. 
 
If you enjoy the weekend show please go back through our website (https://www.kereport.com/), Podcast (https://rebrand.ly/KER-Podcast) and YouTube Page (https://www.youtube.com/@theKEReport) to listen to all our market commentary and company interviews. Please subscribe and leave us a review.
 
Segment 1 & 2 - Rick Bensignor, President of Bensignor Investment Strategies kicks off the show by providing a detailed analysis of the current market trends. Rick predicts potential lower targets for the S&P 500 and explains how positioning and market psychology play significant roles. He also discusses the recent performance of the US dollar, international markets, gold, and gold equities. Additionally, the conversation touches on the influence of political events and comments on the future of cryptocurrencies.
Click here to visit the In The Know Trader website.
 
Segment 3 & 4 - Brian Leni, Editor of the Junior Stock Review, wraps up the show with a recap of the metals conferences MIF and PDAC) in Toronto over the last week and a half. We discuss what metals were the focus at the conferences (all about gold) and the types of metals stocks he is focusing on. These include select prospect generators and development plays.
Click here to visit the Junior Stock Review website to keep up to date on what Brian is investing in.
 

Dana Lyons, Fund Manager and Editor of The Lyons Share Pro, joins us to share what factors are having him continue to take a moderately defensive posture in the broader US general equities in the near-term. He reiterates that their quantitative models alerted them to go short or reduce positioning in some general stock market sectors back in December.  With regards to relative strength we review the rotation of some money rotation in the markets from growth into value, in a potential flights to safety with the current macroeconomic backdrop. We also get his thoughts on some of the capital flows heading overseas into European stocks. 
 
Dana shares insights on market internals like breadth, sentiment indicators like the put-call spreads, investing flows into inverse ETFS, and survey and the trends in the underlying term structure in vehicles like the VIX.   His models have not signaled the bottom is in yet, but these choppy market movements could be getting closer to a period where they will start looking for a bottoming and turn if things accelerate further the downside in the near-term.  In the medium-term Dana still sees the potential for one more blow-off top move in US equities, and then in the longer-term a more structural bear market that will work off the excesses of the last 15 years of bullish market action to very high valuations and participation.
 
Next we got into how some of the value sectors like utilities, financials, consumer staples, bonds, and gold have been getting some capital inflows, possibly as the growth and tech sector has cooled off over the last few months.    Dana notes that this situation may not persist, and their models don't show that the bull market in growth stocks is finished yet, but stresses the importance of considering trades over different time frames.
 
We wrap up diving into some of the capital flows into European stocks, and if he believes it is just a trade or more sustainable.  We also discuss other jurisdictions, notably some capital flows into Chinese markets, and Dana explains why they need more data first to know it is more than a just a contrarian speculation just because they were so oversold.
 
Click here to visit the Lyons Share Pro website.

Craig Nicol, Founder and CEO of Graphene Manufacturing Group (TSX.V:GMG - OTCQX:GMGMF) joins me to discuss the significance of the recent G® Lubricant and battery development news. 
 
Starting with the G® Lubricant update, Craig elaborates on the multi-year performance testing data released on February 25th, highlighting its impressive 8.4% fuel savings in diesel and gasoline engines. He explains the strategic focus on older diesel engines in the B2B sector and outlines plans for market expansion beginning in Australia and moving globally. Craig also addresses the competitive landscape and the production capabilities necessary to meet anticipated demand. 
 
We then shift to the battery development division, where Craig reveals a new collaboration with the Battery Innovation Center (BIC) in Indiana, aimed at scaling and optimizing pouch pack battery production. The conversation dives into the technical and economical aspects of this partnership, the expected costs, and the roadmap for battery cell development through 2027. Cory and Craig also discuss future growth opportunities, including potential sales, commercial deals, and ongoing research and development.
 
Please keep the questions coming! I'll be chatting with Craig again in around 2 weeks to simply address all the questions that have come in. Email me at Fleck@kereport.com.
 
Click here to visit the GMG website to learn more about the Company.
 

David Baker CFO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to review the key takeaways from the Q4 and full year 2024 financials, including record quarterly and annual revenues and cash flows, marking their seventh consecutive year of revenue growth. We also review the outlook for 2025, the addition of a new board member, and then dig into some updates for ongoing growth at key royalty partner operations.
 
Preliminary Financial Highlights for Q4 and Full Year 2024 Results:
 
Record preliminary adjusted 2024 revenue of US$21.6 million (+21% vs 2023) comprised of:
US$16.3 million attributable royalty revenue; and
US$5.3 million attributable revenue from the Caserones copper mine
Record preliminary adjusted Q4 revenue of US$6.8 million (+21% vs Q4 2023) comprised of:
US$5.5 million attributable royalty revenue; and
US$1.3 million attributable revenue from the Caserones copper mine
 
Dave breaks down the financial strength of the company, and the leverage of it’s balance sheet to rising production and revenues in a higher metals price environment. We also review the growth via per-share metrics in 2024, and in particular look ahead to full-year 2025 gold equivalent ounce growth to a projected record 11,600 - 13,200 GEOs, augmented now from Allied Gold’s Korali-Sud (formerly named Diba) asset, and the increased production from the assets acquired from AlphaStream Limited last year.  He also highlighted with the roughly $6 million in cash on hand, the expected revenues over $30 million this year, a number of additional incoming one-off payments in H1, and the $50 million credit facility on hand, that the company is in a great position to keep reviewing acquisition transactions in the year to come.
 
Next we touched upon the recently announced addition to the Board of Directors, bringing in Sandeep Singh, who has extensive experience in the mining and royalty sector.  Sandeep is currently President and CEO of Western Copper and Gold. Prior to this, he was President and CEO of Osisko Gold Royalties, where he successfully led its strategic turnaround, after having spent 15 years as an investment banker specializing in the North American metals and mining sector.
 
Wrapping up we cover some of the anticipated growth of the projects at their key cornerstone royalty assets: Caserones, Karlawinda, Korali-Sud, and Bonikro.   Dave anticipates that all these assets are set to perform well and keep expanding and growing ounces and pounds in the year to come.  The mission now for the team at Elemental Altus this year, now that the company has paid off all their remaining debt, is to keep looking for royalties on long-dated quality projects with quality partners where they can execute accretive transactions.
 
If you have any follow up questions for Dave regarding Elemental Altus Royalties, then please email them to me at Shad@kereport.com.
 
In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.
 
Click here to view recent news on the Elemental Altus Royalties website