Weekend Run down 13/07/2019

The biggest news of the week in the resource sector, came out of America last night. The Australian Financial Review (AFR) reported that Donald Trump is set to reject calls from local uranium mining companies and some Republicans for a 25% “buy America” domestic quota.

(Link to the AFR article https://www.afr.com/news/world/north-america/australian-uranium-exporters-winners-as-trump-dumps-quota-plan-20190712-p526l8)

With this news out overnight in Australia, I’m expecting positive moves for Australian uranium companies Monday morning, as the news pushed TSX listed uranium companies higher overnight. 

NexGen Energy (TSX) was up 10.53% on the news.

On Monday morning when the ASX opens, I expect Australian uranium companies to open in the green. Some of those companies include:

  • Paladin Energy: has been in a downtrend for most of the year.
  • Boss Resource: the company is looking to reopen the Honeymoon project in South Australia which is currently in care and maintenance.
  • Deep Yellow: has projects in Namibia and has named itself ‘The Paladin Mach 2’.

GOLD

The week ended well for gold as the US Federal Reserve has indicated a rate cut. If the cut is made by 25 points, we should see gold break the long term wedge (as seen on my chart). The decision to cut rates will be made on July 30.

VANECK VECTORS ETF TRUST JR GOLD MINERS ETF (GDXJ)

The GDXJ has slightly broken out from its long term wedge pattern, as the money has started flowing into junior miners on the back end of the gold price rise. If there is a 25 point cut from the Fed at the end of the month, I would expect a big push up in the price.

Great Bear Resources announced a major expansion for Hinge Zone to a 440 m Down-Plunge: 3.90 m of 18.09 g/t Gold, including 1.00 m of 69.97 g/t Gold. These results pushed the share price into all-time highs.

Podcast

Jamie Keech from Resource Insider released a podcast this week interviewing Ross Beaty. The podcast is called ‘Ross Beaty: How to Win’. It is a must listen for anyone that is interested in the mining sector.

Link to the podcast

Finally, as I do every week, I leave everyone this weekend with an image that best describes why in the last 50 years, now is the best time to invest in commodities. Have a great weekend and stay safe. 

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