AGORACOM Small-cap Investor Relations Blog

Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America. In addition to the West Timmins Gold project, Affinity is advancing the Regal Project in the northern end of the prolific Kootenay Arch. Regal hosts two major geophysical anomalies as well as three past producing mines. Recent drill results included a new silver discovery with an 11.10 meter interval of 143.29 g/t silver which included a 0.55 meter interval of 2,612.0 g/t silver Click Here For More Info

• Silver broke out from a giant base pattern that started to form as far back as 2013 – 2014
• Probabilities are very high that it has much further to go, both in respect to time and magnitude of advance

The purpose of this update is to celebrate and mark silver’s powerful breakout from a giant base pattern that started to form as far back as 2013 – 2014, a breakout which has only happened during the past 2 days, yesterday and today, with today’s advance finally seeing it break clear above the resistance at the upper limits of the base pattern. While this doesn’t mean it can’t drop back again it makes it less likely, and even if it does it is likely to soon turn up again.

Quite clearly, when you are only 2 days into a bullmarket that is starting after the completion of a 6-year long base pattern, the probabilities are very high that it has much further to go, both in respect to time and magnitude of advance. Today’s breakout may very well have been triggered by the bellicose actions of the US with respect to China in closing its embassy or whatever it is in Houston, which is a continuation of an increasingly hostile attitude to China, based on the US attempt to tear down what it views as its main rival for global dominance. Now, with its economy getting ever closer to imploding completely, the US is looking to direct the mounting anger and frustration of its population towards a manufactured external enemy, which is what politicians always seek to do when their backs are against the wall. Today’s action was another step on the road to a major war, which is a normal consequence of economic depression. In addition to that we had the ludicrous and laughable assertion that Russia has been trying to hack coronavirus research secrets, which is just another irrelevant distraction. Regardless of what actually triggered the breakout it was a valid and powerful breakout as we can see on the charts set out below….

Not surprisingly, the effect of silver’s breakout on all things silver was electrifying, with a good example being shown below, Kooteney Silver, which is a silver stock we went for back in May because its charts looked so strong, and which is already up 50%.

With the prospect of hyperinflation in the not too distant future due to relentless and increasingly desperate and extreme money printing by Central Banks, the prospects for silver and silver investments have never been brighter as one thing we can look forward to is the biggest silver bullmarket in history by far.

This is a very good juncture at which to watch Mike Maloney’s interesting and insightful new video on silver entitled Silver Soars – Where To Next?

End of update.

SOURCE: https://www.clivemaund.com/article.php?id=5493

Affinity is focused on the acquisition, exploration and development of strategic metal deposits within North America. In addition to the West Timmins Gold project, Affinity is advancing the Regal Project in the northern end of the prolific Kootenay Arch. Regal hosts two major geophysical anomalies as well as three past producing mines. Recent drill results included a new silver discovery with an 11.10 meter interval of 143.29 g/t silver which included a 0.55 meter interval of 2,612.0 g/t silver

(Bloomberg) — A year ago, you couldn’t get Wall Street to touch most gold miners’ stocks. Today, it’s throwing billions at the industry.

Precious-metals miners once seen as too leveraged and high-risk for the typical investor raised $2.4 billion in secondary equity offerings during the second quarter, data compiled by Bloomberg show. That’s the most since 2013 and seven times more than the funds they raised a year earlier.

With the Covid-19 crisis threatening economies worldwide and gold prices soaring on the heels of monetary and stimulus programs, precious-metals companies have become the darlings of the investment community. The sector, which once largely drew the attention of specialist funds, is now attracting a broad base of investors.

“All of a sudden we’re seeing real interest from generalists,” said Bryan Slusarchuk, chief executive officer of Fosterville South Exploration Ltd., whose company plans to dig for gold in Australia. “If this continues, it could just be the start of an incredible bull market for gold equities.”

The market for gold miners has been dominated by the top two giants, Newmont Corp. and Barrick Gold Corp., with investors shying away from many of the others. That’s either because balance sheets had too much leverage or companies had too few mines and projects to spread out the risk. Many also remember the writedowns that followed the gold price slump of 2013.

Junior Miners

But junior miners are now starting to benefit. Take the case of American Pacific Mining Corp., an exploration and gold-mining firm with market capitalization of less than $20 million. The company raised $3 million in the second quarter, six times more than it had initially planned. Interest was so big that it had to turn away offers for more, said CEO Warwick Smith.

“The big boys play first, and then that money trickles down to the smaller companies, exploration companies,” he said.

The reasons that boosted the appeal of gold miners are the very same pushing investors away from companies digging for metals like copper or lithium, which are more dependent on economic growth. Base and industrial metals firms raised just $34 million in the second quarter, data compiled by Bloomberg showed. Thats a 40% decrease from the same period a year earlier.

Battery metals projects are also struggling to lure investors.

Clean TeQ Holdings Ltd.’s Sunrise nickel-cobalt-scandium project in Australia is a prime example. The company said in mid-June it wasn’t able to commit to a final investment decision on the $1.5 billion project as the pandemic presented “challenges for funding.”

“Bankers don’t like risks,” said Andrew Bowering, a director at American Lithium Corp., which has an exploration project in Nevada. “That means you need to strike a long-term offtake agreement so they have guaranteed production from the mine, and right now you’ve got no big buyers.”

Gold Allure

The allure of gold companies comes even as the coronavirus makes mining harder, with a higher risk of infections in tight, closed spaces. Barrick last week said it continued to benefit from strong prices even as the pandemic shuts down mines.

Investment in the sector is also coming in the form of mergers and acquisitions. Deals heated up in the second quarter, with 12 transactions valued at $2.86 billion being announced, according to Bank of America. That’s nearly double the first three months of the year.

“With mines being closed and things tightening up, the C-suite are all in the boardroom, and they’re talking to other companies about M&A,” said Smith of American Pacific. “They’re talking to their bankers, they are reaching out to have these conversations, and deals are getting done.”

Source:https://www.bnnbloomberg.ca/wall-street-is-throwing-billions-at-once-shunned-gold-miners-1.1468213