Gerardo Del Real,
Editor
July 23, 2024
This is your Resource Stock Digest editor Gerardo Del Real here with some Tuesday coffee talking points and thoughts.
Let's get right into it as there is a lot going on.
It's been a heck of a week geopolitically, societally, and economically as we’re seeing a lot of very consequential events happening in this highly-divisive election cycle.
How will those events affect the markets we dabble in?
Well, gold has now dipped slightly below the US$2,400 per ounce level. That, to me, is a healthy correction that I believe will be very short-lived as we are absolutely in a confirmed gold bull market with legs.
The same can be said for silver, which is another key segment of the precious metals market that you should be keeping a keen eye on as there are some really good opportunities forming.
Gold & Gold Stocks Break Out
Assassination attempts and political infighting.
When uncertainty strikes, investors reach for the cold comfort of gold.
It is at an all-time record high price near $2,500 per ounce.
Gold stocks are now breaking out to 52-week highs.
This one is leading the pack and will continue to.
In fact, I've been awaiting another pullback in silver to initiate buy signals on a couple of silver names on the exploration side. That’s getting closer and closer to fruition… so stay tuned there.
Turning to uranium, a lot of people are beginning to think that uranium is going to go the way of lithium. I’ll gladly take the other side of that argument. First, the supply/demand fundamentals are markedly different. And, as a more mature market, the upward trend in the uranium spot price has been far more structured and much less volatile than what we’ve been witnessing of late in the lithium space.
With uranium prices holding very strong at the mid-US$80 per pound range, I remain exceedingly bullish on the near to mid-term uranium market, and I’m seeing a lot of really good opportunities in the junior explorers.
For example, I’ll be watching for upcoming news from Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF) on its recent discovery of additional high-grade, near-surface uranium mineralization at the Main Maverick Zone at its co-flagship Moore Lake project in Canada’s Athabasca Basin.
We’re talking 5 meters at 4.6% U3O8, which is exceptionally high-grade. We’ll be looking for continuity of grade and scale there.
Skyharbour has also confirmed a new high-grade uranium discovery at the Fork Zone at its other co-flagship project: the adjacent Russell Lake project. And, of course, the company has lots of other partner-funded drilling happening in the Athabasca Basin across multiple projects.
Turning to copper, we’re seeing a continued correction within a confirmed bull market. Remember, copper was trading around the mid-$3 per pound range in Q1 of this year. It’s still hanging in there above US$4… and my confidence has not wavered one bit that a push to above US$5 is in the cards for 2H 2024.
80% of the World’s Copper Was “Impossible” to Mine… Until Now
The majority of the world’s copper is trapped in low-grade waste rock. Billions of dollars of reserves are just sitting there — and for hundreds of years, traditional mining has considered it “impossible” to recover.
But technology is changing all of this. A powerful new “blue water” formula can pull the copper drip-by-drip out of the waste, unlocking billions’ worth of new copper. Traditional mining is falling behind… let me show you why “blue water” changes everything.
I’m seeing a lot of copper names that are now even more attractive as a result of the current pullback in the commodity price. Chief among them, of course, is my biggest copper holding: Hannan Metals (TSX-V: HAN)(OTC: HANNF).
Hannan is on the heels of a Phase-1 drill program — fully funded by its JV partner JOGMEC — at its co-flagship San Martin project in Peru. I view this as an exceptional pre-drilling entry point and would use every single one of these dips as an opportunity to purchase additional HAN shares.
That's what I'm watching this week, folks. I hope everyone has a great week.
Let's get it!
Gerardo Del Real
Editor, Resource Stock Digest