A Summer To Remember Is Happening For Gold And Mining Stock News
In this report Filo Corp, Goliath Resources and Agnico Eagle are featured.
When I’m busy it makes me happy because it means that the mining companies and sector is putting out a lot of good news. And the trends I have written and talked about are coming to fruition.
At the moment, I have around six reports in the pipeline to put out soon, and then just in the last two days news has broken on some of the companies featured in my reports and interviews.
This report is going to be about breaking news, before I start I wanted to briefly talk about seasonality. During summer, often the audience of investors in the sector tend to be not as active. But, this year I have seen none of that. In fact, with gold doing so well, it has offset the summer slowdown.
In The News
Yesterday afternoon, I was surprised by the impressive takeout offer by BHP and Lundin Mining to take over Filo Corp for C$4.5 billion. It is not surprising to me that a copper development project got a takeover offer.
There is plenty of demand for copper projects. Recently, BHP got turned down when they took a run at Anglo primarily for their copper mines. So they moved their attention to copper development in Argentina.
What did catch me by surprise was the price, this is one of the highest prices ever paid for a copper development project. The mining majors have all been clear about their desires to get more copper projects. Talk is cheap, but cash speaks volumes and the fact that BHP and Lundin made such an aggressive offer is impressive.
The major miners know how tight copper supply is and how powerful the demand is which is going to create a significant deficit in the short-term and long-term. Their actions to cut checks is a sign of the times.
Filo’s project is in Argentina, so I was also happy about this news as I think it will shine a spotlight on a company I have featured many times in my reports and interviews with their CEO. McEwen Mining is the largest shareholder of private company McEwen Copper, which owns the Los Azules copper project in Argentina.
I’m hoping to get Rob McEwen on a show soon because he does a great job at explaining how Los Azules compares with Filo’s project. He is a super busy guy, and I suspect his phone and emails are coming in rapidly due to the Filo takeover offer and he has gotten even more busy.
In several past interviews, he has explained how favourably Los Azules is compared to Filo’s project and other big copper development projects. It is without a doubt something that majors would cherish because it has multiple decades production, it is in the top 10 of undeveloped copper projects worldwide and also in the lowest quartile of companies on that list.
Goliath Resources
Goliath Resources is my highest conviction gold discovery pick and each time they put more holes into their Surebet discovery, it gets better. They had great news this morning.
The first hole of the 2024 reported this morning is a case in point. I love high-grade gold and the hole delivered in spades with 35.04 g/t AuEq (1.13 oz/t AuEq) Over 6.34 Meters true width.
This hole actually had three mineralized intersections, the one reported today was highest in the hole. There are two deeper intersections that are pending.
Most explorers batch holes and would not report one intersection of three in one hole. Many would be concerned that if the other hits in the hole were iffy or bad, then they would have the one great intersection and report them all together.
I imagine what gives Goliath confidence that the other two intersections will have great results as well is that there has been a great correlation between visible gold and high-grade assays.
Not only did the other two intersections have abundant visible gold, they also had minerals that suggest they have tapped into the heat engine source of the gold mineralizing system.
In an overall sense, the more holes they put into the discovery, the better it gets. That is the trend that leads to discoveries turning into mines. Another sign that it is heading in that direction is that the gold zones are very predictable. Their geologists have an extremely good understanding of the system.
I also love to see that as they get deeper into the system the visible gold is getting abundant. And they are seeing minerals that suggest they are tapping into the heat engine source of what caused the entire gold mineralizing system.
I have been seeing signs that this is shaping up to be a Tier 1 gold discovery and the drilling certainly suggests it is going in that direction.
I'm looking forward to seeing the assay results from the other two intersections in the first hole of the 2024 drilling season. As well as the second hole which is seeing similar visible gold as the first hole.
Agnico Eagle
Agnico Eagle is my top pick when it comes to the major gold mining companies. This week they report the second quarter of 2024 financial report. The first quarter was an exceptional one for Agnico Eagle and the average price of gold was around $300 more per ounce during the second quarter.
Looking at whatever key metric one can look at, the first quarter of 2024 was their best quarter ever. Now in the second quarter they get to pump in a much higher gold price.
Looking at their stock chart, I can see a strong trend that has been driven by their great first quarter of 2024 report and the powerful gold bull market. I haven’t really seen any signs that the market is pricing in a blowout quarter coming out this week.
When they report, I’m expecting to see a very bullish move for Agnico Eagle that will catch generalist investor’s attention.
In Closing
I am seeing no signs of a summer slowdown in the mining sector due to the powerful gold bull market. Plus, companies are putting out attention grabbing news.
All the best,
Allan Barry Laboucan
Disclosure
Allan Barry Laboucan is a shareholder of Goliath Resources’ common share and also owns warrants to purchase additional shares.
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