Kitco MINING

Nations Royalty (CVE: NRC) has a first mover advantage, said Kody Penner, VP, corporate development at Nations Royalty. 

Last week Kitco Mining spoke to Penner and Derrick Pattenden, chief investment officer at Nations Royalty.  

Nations Royalty is a newly-formed royalty company under-pinned by five Nisga’a Benefits Agreement Royalties with a net asset value of $214 million. According to the company's news release, the company’s vision is to "...unite First Nations and Indigenous groups across Canada, welcoming external investors to join the company as shareholders."

Nations Royalty’s highlights the following benefits agreements: the high-grade Brucejack gold mine operated by Pretium Resources Inc., a wholly-owned indirect subsidiary of Newmont, a large underground gold mine; the KSM copper-gold-silver-molybdenum deposit, currently in development by Seabridge Gold; the Premier gold project, currently being commissioned by Ascot Resources with first gold poured in April, 2024 and commercial production scheduled for Q3 2024; the Red Mountain Gold Deposit, owned by Ascot Resources; and the Kitsault Molybdenum Deposit, a large, fully permitted brownfield site owned and being actively advanced by New Moly, majority-owned by Resource Capital Fund VI. 

Penner said that Nations Royalty has a unique advantage: benefits agreements have been "untapped within the royalty space." 

 "As a first mover in the space, we have latitude to go for tier one assets that are cash producing in safe jurisdictions and in the lower cost quartiles that other small royalty companies don't have access to," said Penner. "As a first mover, we can do that."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Roaring copper prices are due to speculators, said Gianni Kovacevic, investor and author. 

On Tuesday Kovacevic spoke to Kitco Mining.

Kovacevic is the author of My Electrician Drives a Porsche?

Copper has had a great run in 2024, hitting an all-time high of $5.20 pound in May. Although he is a copper bull, Kovacevic said it is too much, too fast. He views the recent run as being driven by speculators. 

"If any commodity goes up too radically, people just stop buying it," said Kovacevic. "[The speculators] take the stairs on the way up, but they always take the elevator on the way down."

Kovacevic believes in the fundamentals of copper due to energy transition and AI. The world will need a lot more of the metal, he says. He is also a believer in lithium, but low prices for the metal mean volatility ahead until supply and demand balance. 

"The consensus is that if the lithium price stays at this level for a continued period of time, you will have no lithium," said Kovacevic. "Lithium will just cease to be produced for many projects, not all projects, but for many projects."

Uranium is challenged, said Kovacevic, due to regulatory hurdles and the long-time frame to build projects. 

"I think it's a lot of lip service," said Kovacevic. "Ultimately, that's not where the world's going to go."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

The Federal Reserve got ahead of itself earlier this year thinking it had inflation whipped, said James Fishback, co-founder and chief investment officer at Azoria. Fishback spoke to Kitco on Tuesday. 

Back in December, the market was expecting more rate cuts than it will get this year. Fishback said the Fed and Chair Jerome Powell erred when it had its "mission accomplished December Fed meeting" and the markets priced in several rate cuts in 2024. Hotter-than-expected inflation data squashed lowering interest rates. 

"The Fed is thinking about undoing its latest mistake," said Fishback. "Right now, Powell is on the precipice of potentially making another mistake: does he want to pull back rates prematurely and then risk reigniting that crippling inflation that we saw in '21 and '22?"

An additional complication is the U.S. election, which gives the Fed limited maneuverability, noted Fishback. 

He also discussed the promise of AI and how it could drive economic growth and help metals. 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

President and CEO Ammar Al-Joundi is very satisfied with Agnico Eagle Mines' project pipeline. 

On Thursday Al-Joundi spoke to Kitco Mining. 

Agnico Eagle Mines (NYSE: AEM) is a Canadian based senior gold mining company. It's the third-largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland and Mexico. Agnico is guiding to 3.35 to 3.55 million ounces of payable gold production in 2024, with total cash costs per ounce and AISC per ounce in 2024 at $875 to $925 and $1,200 to $1,250, respectively. 

In June the company announced its plans for the Detour Lake Mine, located in Ontario. The company is spending $100 million investment over the next three years for study and de-risking. Detour Lake mine's overall production is expected to average one million ounces of gold per year over a 14-year period, starting in 2030.

Al-Joundi was asked about the likelihood of an acquisition. Al-Joundi said the company can afford to be choosy. 

"I've been in this business for almost 25 years. I've never been with a company with as strong a pipeline as we have right now," said Al-Joundi. "So at Agnico Eagle, we are going to focus on a small handful of really good projects for the foreseeable future."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Gold miners should be up about double the metal price, but that hasn't happened, noted Ryan McIntyre, a managing partner at Sprott. 

On Tuesday McIntyre spoke to Kitco Mining. 

Sprott offers investments in precious metals and critical materials, including gold, silver, platinum and palladium. Sprott was founded in 1981 by Eric Sprott. The company has 250,000 clients and about $29.4 billion in assets under management.

Despite gold hitting several all-time highs, the gold miners have still not rallied that strongly. The VanEck Gold Miners ETF is only up 10% year to date. McIntyre expects a two to one ratio in terms of the performance for gold mining stocks. 

"So if gold were up 13%, we'd expect the miners to be about 26% or so—plus or minus—and that's really due to operating leverage that all miners have," said McIntyre. "We really haven't seen that yet, which is actually good. If you're looking to invest today, gold mining stocks are actually a great spot to be. They haven't kept up to even the gold price this year." 

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Elections in France and the U.S. should not disrupt carbon compliance markets, said Luke Oliver, managing director and head of climate investments at KraneShares. 

On Tuesday Oliver spoke to Kitco Mining. 

The KraneShares Global Carbon Strategy ETF (KRBN) is benchmarked to the S&P Global Carbon Credit Index, which covers cap-and-trade carbon allowances. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), the Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Allowances (UKA).

The carbon compliance markets are designed to incentivize pollution reduction. In a report from last year, Reuters valued the markets at over $900 billion. 

France, a pillar nation within the EU, is in the middle of an election with the far-right National Rally (RN) leads the polls, according to polls by EuroNews. The National Rally is at 36% while French President Macron's party is at 20%. The U.S. election is in November. Most polls show a tie. 

"I think it's possible to see a shift right in the U. S. And I think that a shift right usually sort of correlates with a less climate forward or climate supportive set of policies. But these programs are ...deeply embedded," said Oliver. "We don't foresee any material rolling back of the program."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Elections in France and the U.S. should not disrupt carbon compliance markets, said Luke Oliver, managing director and head of climate investments at KraneShares. 

On Tuesday Oliver spoke to Kitco Mining. 

The KraneShares Global Carbon Strategy ETF (KRBN) is benchmarked to the S&P Global Carbon Credit Index, which covers cap-and-trade carbon allowances. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), the Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Allowances (UKA).

The carbon compliance markets are designed to incentivize pollution reduction. In a report from last year, Reuters valued the markets at over $900 billion. 

France, a pillar nation within the EU, is in the middle of an election with the far-right National Rally (RN) leads the polls, according to polls by EuroNews. The National Rally is at 36% while French President Macron's party is at 20%. The U.S. election is in November. Most polls show a tie. 

"I think it's possible to see a shift right in the U. S. And I think that a shift right usually sort of correlates with a less climate forward or climate supportive set of policies. But these programs are ...deeply embedded," said Oliver. "We don't foresee any material rolling back of the program."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Declining profits for lab-grown diamonds could push retailers into a natural diamond pivot, said Paul Zimnisky, an independent diamond industry analyst. 

Last week Zimnisky spoke to Kitco Mining. 

The diamond market has been in a tough spot due to declining sales. In September Petra Diamonds reported full-year revenue declined 44%. In February Lucara Diamond announced full-year revenue was down 16%, adding that the diamond market is a "volatile environment with market challenges coming from multiple areas." Storied diamond company De Beers is being sold off by parent Anglo American, which is restructuring after rebuffing a takeover by BHP. 

Demographics and growing market share by lab-grown diamonds are part of the challenge, said Zimnisky, but exclusivity and rarity of natural diamonds could end up helping. Innovations in production have resulted in jewelers cutting the costs of lab-grown diamonds. That may lead jewelers to pivot and prioritize selling natural diamonds over lab grown, said Zimnisky. 

"The catalyst could be declining profitability of selling lab-grown diamonds, " he said. "[That] could incentivize retailers to really push natural diamonds again. That has the potential to be a very positive development for the natural diamond industry."

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Gold miners could use a little more conviction in the product they sell, said Frank Holmes, CEO and chief investment officer at  @USGlobalInvestors .

In early June, Holmes spoke to Kitco Mining. 

Gold has been hitting all-time highs in 2024, but the gold mining companies have lagged behind. The GDX, the gold mining index, is only up 12% year-to-date. Some enthusiasm for the metal the miners produce could help, said Holmes. 

Holmes said gold miners are holding less gold on their books, unlike cryptocurrency companies.

"I think gold miners—like Bitcoin miners—have to show investors their conviction that they really like the product, and that they're going to own it," said Holmes. "You have many more crypto mining companies [that] actually own Bitcoin." 

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

British Columbia's northwest is seeing heightened interest from resource companies, said Ken Konkin, CEO and president of Tudor Gold.

In early June Konkin spoke to Kitco Mining at THE Mining Investment Event of the North in Quebec City. 

 @tudorgoldcorp.1829   (TSX:TUD) is an exploration and development company advancing its Treaty Creek gold and copper project, situated in the Golden Triangle. Treaty Creek project hosts the Goldstorm deposit, which the company says is one of the largest gold discoveries in the last three decades.

The Golden Triangle is seeing renewed focus, says Konkin, due to the infrastructure and safe jurisdiction, as well as the many development projects that are advancing in B.C. The world's largest gold miner, Newmont, has made the region a top priority since taking out Newcrest and acquiring both its Pretium and Red Chris mining operations in the Golden Triangle. 

"Clearly, there's blood in the water," said Konkin. 

Coverage of THE Mining Investment Event of the North is sponsored by EMX Royalty.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.