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WOLF THURSDAY NIGHT SPACES
Recorded: May 23, 2024 Duration: 2:14:52Space Recording
Full Transcription
Oh, that's a good call out.
I didn't even look.
The volume was pretty there.
Honestly, anything over 60% of the average volume is volume in this day and age.
I run this little moving average on the volume.
What am I using right here?
I think 20-day moving average.
And we just popped up to it.
We did actually close over it today.
So it's interesting.
Cool, guys.
Hey, let's jump right into it.
Because, you know, once Jay comes in here, it's going to be big Jay time.
And it's going to be big listening time for the rest of us, as we all know.
So I just wanted to give a heads up.
I think I messaged everyone in advance.
I was like, just heads up.
This is a Jay space on Thursday.
So bring your notebooks.
We're going to talk for a little bit in the beginning here.
But once he gets into the mix, we're going to let Jay roll and rumble.
So let's get some thoughts, though.
Theta Warrior, I'm actually going to kick it off with you, if that's okay.
Because I only get to hear from you so often.
And I get to hear from a lot of these other wonderful people more often.
So you want to rock into it with a little bit about what you're looking at in this market?
For sure.
So thanks for having me back on.
What's up, everybody?
Pretty interesting day, for sure.
Post-NVIDIA earnings.
They killed it, right?
Finally got that pushover 1,000.
Actually closed over 1,000 as well.
And then SPY ended up pulling back.
I mean, we saw a pretty broad market sell-off.
And just exactly like what we were talking about last week, the market pulled back to
retest that prior all-time high.
SPY, you know, right around that 525 area.
So we finally got it.
We were all basically thinking the same thing last week.
And then today, we finally got the move.
So in my opinion, now is the spot to see if buyers are going to step up and defend it.
Or if possibly we're going to push a little bit lower and, you know, try and entice a few shorts to come in before a reversal hire.
But certainly a pullback makes sense.
It's kind of interesting that it happened today, right?
The market maybe just potentially didn't have anything else to look forward to or, you know, anything else on the horizon.
I mean, this NVIDIA event was such a big, important one for the market.
Finally got that out of the way.
And then there's your excuse, you know, for a sell right there.
So maybe that's what it was.
To me, you know, it was pretty slow in the morning.
And then obviously the sell came in like, you know, lunchtime, late afternoon.
But we definitely held that prior all-time high.
That SPY, you know, 525 area.
So going to be watching that spot pretty closely tomorrow.
Just like I said, to see if maybe we're going to see a bounce or not.
But if we do, I think that there's definitely some interesting opportunities out there, especially in the semiconductor sector.
SMH, we saw a big player roll up his call position from the 110s to the 140s, I believe, out to June.
We saw some massive rolls in Qualcomm and TSM out to August and November.
I'm sorry, August and September.
So basically a roll for anyone that's unfamiliar, they're taking profits on a current position.
And they're using that profit to open a new position at a higher strike.
So they're keeping a little bit of money on the table, taking some risk off the table, but still keeping some exposure, looking for more upside.
So obviously the NVIDIA event prompted all of that.
So I think, you know, if this market's able to hold, if we can, you know, find support in this similar area,
there's definitely going to be some buying opportunities out there.
I'd keep an eye on Qualcomm, TSM, Marvel, of course, NVIDIA.
If we get a pullback and NVIDIA fills this gap, retest that 975 area, probably going to be a great long opportunity.
So that's kind of my thinking is, you know, we've been in this buy the dip environment.
So I'm looking to see if that's going to continue.
And yeah, see what type of opportunities the market might give us tomorrow and early on next week.
Perfect.
Appreciate you kicking us off there.
Theta Warrior.
Jaguar, how about you?
What are you looking at in this market?
You got a few minutes for us here?
Yeah, sure.
Thank you for having me and good afternoon, everybody.
You know, one of the things that I've been noticing for two weeks straight now and today it was really in display is I just kind of get the sense when I read the tape that increasingly we are moving from what used to be a period when the bad news was seen as good news.
To a period that is now bad news is just bad news and there's no way around it.
And what I mean by that is that, you know, you've seen this many times in the past where, for example, you know, you would get bad macro data on something or you would get bad earnings or bad report or anything.
But the stocks would actually propel higher, mainly on the idea that it doesn't really matter because the Fed will pivot.
But we have gradually over the over several months, we have consistently priced out those cuts from the market.
And so, you know, it was supposed to happen in March and then it was in May, then June, July, September.
And now no cuts are expected.
If there's going to be some at all, nothing is expected until November.
And even that is gradually getting priced out.
And so the impact of this is that from the market perspective, it's starting to gradually appear on the price action where such that previously if we would buy something on bad news on this whole idea, that it doesn't really matter.
That we will pivot now.
Now, everything's come out and it comes and acts as bad news.
Jack, you're rugged hard for me.
Did that happen for anyone else?
Oh, you're back.
You're back.
Good now.
Yeah.
Oh, is it doing it for anyone else?
Yeah, yeah.
Jack, I don't know if you could switch off of Wi-Fi or something.
Okay, well, I'm going to try to come back.
Hold on.
Boy.
Okay, let's give him a minute there.
Let's give him a sec.
Woo.
Yikes.
Okay.
Short the Vicks, you got some thoughts?
Hey, Wolf.
Hey, guys.
Thanks for having me back on.
I think I agree with a lot of what Jack is saying about the bad news potentially being taken as bad news.
And to kind of go on a kind of slightly different point, I mean, the Fed doesn't really, if they can avoid it, cutting rates when the market is taking a lot of this bad news as potentially good news in increasing those rate cut expectations.
So if we were to see continuing declines in GDP, increased unemployment, and lower inflation data, and the market would just bid everything up because they would expect more rate cuts, well, that's not going to be something that, I mean, the Fed really wants to do.
I mean, today was an interesting day.
Everything kind of correlated to almost one.
You saw the bonds down, gold down, silver down, utilities down.
Everything started to move to the downside that has been showing a decent amount of strength.
So what I really think has been going on is the market has been kind of moving in waves.
Now, I've talked a lot about the – we came into this year.
We had those 67 rate cut expectations or whatever the number was.
We started to get the hotter inflation data.
The market reeled back in those expectations.
You saw the QRA buyback announcement.
You saw the slowing down of the balance sheet runoff.
You saw a couple of pieces of kind of cooler data, and the market latched back onto that, and we've seen the market continue back to all-time highs.
I think right now we're starting a little bit of a newer wave.
So I think a lot of people, like maybe today and tomorrow, are going to try and draw too many conclusions from what's currently happening where everything is kind of moving in concert, and we need to get a couple of more bigger data points in order to see where things are really about to go next.
Like we do have the GDP revision next week.
We have PCE.
Now, depending on how the market reacts to that, I mean, that's probably going to tell us where we're going to go next.
I don't think it's – I don't think today really tells us a whole lot about where the next trending move is going to be.
I could be wrong on that.
We could easily start moving back down off of that engulfing candle.
But for me, I'd like to see a couple of more data points that are going to suggest, okay, the market is now going to take some of this news that we're seeing as the bad news, and that's perfectly fine.
We could easily start to see that movement to the downside, and I think that would actually be what the Fed almost wants to see.
I mean, like I said in the beginning of this talk here, I mean, they're going to want to avoid cutting rates as everybody is just bidding up cool data across the board.
So I think for me personally, it's a little bit of a wait-and-see situation over the next couple of days and weeks here to make any big decisions.
Perfect.
I'm sorry.
Somebody's trying to call me, so I might glitch out again here.
But good stuff there, Shorts of Vicks.
Hey, Jag, let's see if your mic's working well.
Yeah.
How's it now?
Yeah, that's good.
Okay.
Sorry about that.
All right.
So to complete that thought, I just wanted to say that the way this market has been increasingly showing signs is that as we have priced out cuts during this year, right,
more and more, you're also seeing stock prices react from what used to be, they go from what used to be bad news seen as good news to now bad news just seen as bad news.
And to give you a good example of that, for example, today, the new home sales data came out, and it was atrocious.
It missed the expectations by a wide margin.
It fell by 4.5% month over month, and the prior month was also revised lower.
And so you then now look at this, when you look at leading data like this, and you look at all how the home builders performed today, everything was selling off, was one of the worst performing sectors across the board.
And you saw the same thing with toll brothers, for example, when it reported earnings two days ago, where they actually beat consensus big time, but the stocks finished ended up down by 7.5% that day in earnings reaction, where it was basically simply sold into any kind of a strength.
You've seen this happen with JP Morgan, Jamie Dimon made comments on Tuesday morning, and he made a comment that there could still be chance of a hard lending, and they crushed their stock, and that thing was selling off and acting weak all week long, which was pulling back all banks down with it.
Regional Banking Index today was down more than 2%.
You take a look at how these railroads and trucking companies have been performing.
I mean, pull up any of these charts, in the trucking companies particularly, they're making new 52-week loads.
The transportation sector, which is IYT, on a daily scale has a large head-and-shoulder stopping formation, and it's starting to break down from that.
I mean, IYT is nowhere close to new 52-week high.
It's not even keeping up anywhere from the market.
It disconnected from the market starting from April, and it continues to disconnect further and further away from the rest of the market, because the trucking and the railroad companies are making new 52-week low, while the market starts going to new 52-week high.
There's been a big, big divergence there, and that is now starting to pull industrials down with it, because they are sort of like joint and hip.
So I'll give you some examples, and again, these are the basic building blocks of stocks of the economy, right?
These are the companies that, they're smokestacks, I call them.
Pull up the chart of Deere, John Deere.
Look at what that is doing.
Big, ugly breakdown.
That's an industrial.
A welding company like Leco Holdings today got crushed down 10% after earnings.
Stanley Black & Decker, SWK, Snap-on, a toolmaker, just obliterated.
Every single day continues to sell off and basically heading towards new 52-week low, right?
I mean, and you can just go down the list on so many of these industrial stocks, which are tied together with the transportation sector.
The point I'm trying to make is that you've seen stocks increasingly react to bad news more easily now, and it's been on display increasingly more and more than they did previously.
And I think the key reason for that is we have gradually priced out any cuts from this market.
Previously, it wasn't a matter, and now it matters.
It matters if you're not getting any cuts, then bad news will be received at bad news.
That's what I'm noticing.
And so I'll leave it up there as my high-level thought.
And I think ultimately all of this just bad price section just simply piled up.
I mean, Dow Jones Industrial has been diverging away from NASDAQ for four or five days.
It just didn't happen all of a sudden today.
It was more pronounced today, but it has been diverging from NASDAQ all week.
In fact, starting from really mid last week.
And so there has been a systematic shift, I think, that is taking place in this market underneath the tape.
And it seems to be becoming increasingly clear to me.
But I'll stop here.
Feel free to go to someplace else, and I'll come around later.
You got it.
You got it.
I'm glad we're able to make that work.
Appreciate you, Jaguar.
So, Shai, how are you feeling in this market right now?
NVIDIA just carrying the throne.
Yeah, I mean, I hear what Jaguar is saying, and it's an interesting data point for today.
But I do think we need more days like this.
And I do think we need, it's going to take some more time to clearly have a trend break in our market.
And volume needs to return for me to believe that there's going to be some kind of conviction on this trend change.
Interesting that NVIDIA turned to sell the news events.
I definitely didn't anticipate that when I saw the print yesterday.
But clearly, you can say that wasn't the primary weight on the sell off today.
It was due to the hot data and the poor housing data as well.
Well, sure, it could be that, but I think it was that combined with, I forgot who mentioned this again, but there's no near-term catalyst, really, to hold on to.
NVIDIA was kind of like the last catalyst that we all said that this is going to be the next leg in the rally or we're going to correct itself.
I do think it's every dip we've had in the past eight months has had a V-shaped recovery, even though I'm air-quoting the brutal pullback we had at the end of April, beginning of May.
That was only like a 6% to 7% pullback, and the recovery was aggressive.
I think the appetite for buying this AnyKind dip is still in the market, and I'm not worried until we start really breaking down with volume.
And until that happens, I'm going to continue adding to my favorite names.
And I did call out the past two weeks, like, December hedges are dirt cheap in the market.
Like, if you want to turn defensive, maybe not bearish, but defensive, the December 20th strike date for the puts on the spy, like, it was really freaking cheap.
And it was even, it was just cheaper than QQQs as well.
So, like, if you do think that this, there's a narrative, some kind of narrative change in the market where bad data is bad data,
you don't have to really sell out.
You could play defensive because Vix is still, in my opinion, really cheap for what it should be.
I think, I think we should be around 15 or higher, and I'm protecting myself.
I have some defensive puts in play.
I'm a little surprised at some of the price action, and I do think the spy would be down close to 2%, not close to 2%,
but, like, down twice as much as it is today if it wasn't for NVIDIA.
And, again, volume's still not there.
We're coming into the summer months.
May is almost over with.
Like, I don't think much will happen in the markets.
We might get some kind of pullback, but I think, worst case, we'll get some consolidation.
We have a massive floor on spy at, like, 475.
I really don't think we'll break that at all unless some black swan event happens.
And we're not even at the 50-day again.
Like, we need a lot more destruction on price action for me to get, change my stance of being a bull in this market.
And I look to empty out my cash on the sidelines and participate in this, like, rally,
because NVIDIA really did give me the green light that the AI theme is still strong.
It's going to be strong.
And I'm, yeah, that's my plan.
I'm passing back, too, because I know we have a couple other speakers before Jay comes on.
Yes, sir.
And by the way, Jay mentioned that he had a call that's running over,
so I'm glad we're having a little bit of time to get everyone into the mix.
Speaking of getting everyone into the mix, I haven't heard from you yet today, Kim.
What's going on?
Hello.
Well, yeah, it was really interesting to watch NVIDIA.
I want to know, a show of hands, how many say NVIDIA and how many say NVIDIA?
NVIDIA.
NVIDIA.
Show of hands for NVIDIA.
Raise your hand if you say NVIDIA.
Yeah.
Yeah, it's NVIDIA.
Okay.
I always say NVIDIA.
That's not right.
So anyway, I don't have that stock, unfortunately, but I do have Qualcomm,
and I've been long Qualcomm.
I heard someone else mentioning that for quite a while, actually.
And so it's been kind of a quiet player.
It's moved from about, I don't know, 120s this year up to over 200 now,
and then had a sympathetic play, kind of.
But they also are using like an AI chip for phones.
So I'm holding on to that, and I think, you know, don't want to chase.
Now, I've been saying don't chase NVIDIA since like 500, but, you know, just sitting tight on it
and trying to play other things on that AI theme.
Like VRT had a sympathy play today.
I have that one.
But I've been noticing something unusual.
You know, I look at, on bar chart, I look oftentimes at the unusual stock options.
And I'm not making, drawing any conclusions yet, but like I'm a statistics person, I'm a numbers person,
so I tend to like really look at patterns and things.
And I've been just seeing a lot, what I see compared to normal are a lot of puts being bought long term,
like leaps on different stocks.
And so I'm just going to kind of keep my head down on that and keep watching it,
because I don't know if that's a play on the election, if it's a play on the Fed,
not, as Jaguar said, not actually making any cuts.
I'm not sure.
But, you know, during, before COVID had actually happened,
I actually did really well during that time,
because I had seen a lot of really weird, you know, options going out,
like on the HYG, the BLKN, the LQD, those are the different bond products.
And it just always, it piqued my interest at that time,
and I started really paying attention to it.
So my interest has kind of piqued right now,
and I'm not drawing a conclusion or trying to read too much into it.
But I don't usually see, you know,
these really long dated type of puts going out day after day on individual stocks.
So just kind of keeping a red flag,
not sure what it means if people are looking to protect towards elections or whatever,
you know.
But yeah, that's just kind of my overall market thoughts.
Very nice.
Kim, great to have you in one of these evening spaces as well.
Oh, and I'm still long, still long wheat, and still long corn in the futures.
So swinging those, and wheat's been doing well.
You know, we love our futures.
Corn and wheat, silver and gold.
Can't go wrong.
Good stuff there, Kim.
Appreciate you sharing as always.
Let's get on over to Emp here.
What's going on?
What's up, Wolfie?
How's everybody doing?
You have some great thoughts so far.
My thoughts, very interesting today.
Not one green sector that I watch anyways in the market.
First thing I've noticed when I was doing my trade review at the end of the day,
the SPX spy daily candle engulfed the previous five trading sessions,
which is not the greatest thing that you want to see.
And then obviously, like on the future side, we have a 400-point drop on EnQ, which is an outsized move.
I don't know.
It seems like overall we've made a great move.
We've made new all-time highs.
We finally got the catalyst.
You know, Shai and I have talked about it a few times already this week.
This was kind of our last catalyst.
For me, the next big catalyst is basically the non-farm payrolls, NFP, two weeks from tomorrow.
I mean, GDP next week.
But, you know, going into this weekend, my trading side of my brain is kind of going on,
just going to go ahead and take the vacation, honestly.
I'll be sitting here watching tomorrow, but we are closed, obviously, for Memorial Day on Monday.
So I'm thinking tomorrow I may just get a little bit of an early start on the weekend.
We've had, you know, a really good month, especially if you look back the last couple weeks,
this just slow melt up on the low volume we've had.
So for me personally, I don't think we have enough data yet to sit here and call, you know, short-term top.
But I think that thesis has to be looked into a little bit.
And then beyond that, you know, we just don't have a whole lot of things that could move the market, in my opinion.
So I'm just going to kind of play it slow, see what sets up in the next week.
And, yeah, and I'll just kind of, you know, put things on pause for a little bit.
There are still some opportunities out there in individual names.
But I think as a whole, we may see some sideways or another, you know, slight pullback.
The confusing thing, I want to add one more thing here.
The confusing thing is, you know, you see the big pullback, obviously, on the Daily Candle today.
But we also, for example, on SPX, we've back-tested that previous all-time high we made at the end of March, I think, the 28th.
So, you know, we're in a very interesting spot here where things could go, you know, either way.
So I'll just wait and see what sets up.
I am watching, you know, with the Ethereum news that we had earlier tonight.
Coinbase, I've got a little bit of a swing on there based on the chart setup and the slight catalyst.
So, see if that plays out.
And other than that, just kind of see what individual names are there and, you know, just day trade a little bit here and there.
But I'm going to take it real slow probably until mid-next week, personally.
Just like the market, taking it real slow until next week.
I guess we did get a little bit of action today.
Jordan, you were live throughout it all.
What have you been doing?
Yeah, I mean, I actually took a loss today.
I was trying to grab tests along and I was in some N-phase as well.
I'm still holding some N-phase, actually, because I still like it.
But other than that, I mean, basically everybody hit it on the nail.
Spy is retesting that previous all-time high.
So really just waiting to see if Bulls really defend this area or not.
We also have that previous NFP high, like, sitting right around there.
So be interested to see if that holds.
If not, I see us going down towards that 21 EMA, which is around, like, 521, possibly even lower.
But I would think we would hold, like, around that EMA.
But really, I'm looking for Bulls to step in at this previous all-time high.
We'll see if that happens.
NVIDIA was pretty crazy today.
We almost hit – what was that?
Oh, it hit 1,063-ish, almost there.
So crazy day for that.
It kind of just didn't really fall as much with the market.
It definitely came back in towards the back half of the day, right to that opening price pretty much.
But held up pretty well considering what the market did today.
But even though today looks, like, really nasty on the five-minute charts, you just – you open up to a daily.
And we really haven't gone anywhere since last Wednesday.
I mean, we're basically at Wednesday's open from last week.
So really haven't gone anywhere.
Just retesting that previous all-time high again.
So interested to see where this market wants to go, whether or not NVIDIA is going to push higher or try and fill this gap down.
I don't really know what to think there.
There's only, I mean, one candle to go off of.
Obviously, earnings just happened.
So, you know, if price is pushing towards that gap, I think, like, it would need a gap up or a strong move tomorrow to the upside.
Or else I do – I would think we're trying to go fill that gap down.
And then I feel like that would be a great buying spot.
I think Theta Warrior mentioned that.
I think that would be a potential buying spot.
It seems weird to say that because that's sitting at, like, $960.
But, I mean, this thing is doing what it's doing, right?
You can – you got to accept that you're going to have to pay higher prices as this thing gets better and better, right?
And it continues to grow.
And so, yeah.
I don't know.
I think that's going to be an interesting spot.
And other than that, I'm just waiting to see what this market wants to do.
Yeah, definitely a little bit of wait and see.
What's up, Theta?
Well, I was just going to say, I completely can understand the sentiment, right?
Like, oh, my gosh, I'm buying this thing up at $960.
But you can remember back to, like, December of last year, when this thing broke out above $500, everyone's thinking, oh, my God, it's so extended already.
How could it possibly, you know, go any higher from here?
And then it doubles.
I mean, this is, like, the fan favorite.
This thing is a monster.
And the options market continues to be bullish, buying more calls, rolling up higher, gaining more exposure.
I mean, the option market was nuts today in NVIDIA.
I really think this thing could have seen $1,100 if the market hadn't been weak.
I mean, it wanted to run most of the day.
And it was very strong, even when the market was pulling back.
So, yes, you know, of course, we all like to buy dips.
And that's actually when I got into NVIDIA.
I bought it at $135 a couple years ago and have just been trimming and holding my core position.
So, obviously, a great day.
And hats off to all the people.
Lucky I thought my entry was good.
Jeez.
Hats off to all the fellow NVIDIA shareholders.
Definitely hope you're having a cocktail tonight.
Beautiful day.
But, yeah, there's, you know, another thinking that you can always buy high and sell higher.
So, even, you know, and that's kind of what I think is going to be the situation with NVIDIA.
Doubt it ever gets back down to $500 unless something catastrophic happens.
$135, that would mean something's seriously wrong with the company.
So, at this point, I think you just have to be tactical and just look to buy, you know, pullbacks to support.
And currently, that support area is going to be about $960, $970 in NVIDIA.
But last thing I'll mention, as far as, like, the volume goes, like, you know, we're in the summer.
We're getting into the summer months.
Of course, volume is going to come down in names like the SPY and the Qs.
I recommend looking into the semis.
SMH is a great ETF to trade, moves around a lot, has a lot of exposure to all the chip names that we all like to trade.
And if you're comfortable trading individual names, NVIDIA may be too expensive, but you can look at, you know, TSM, Qualcomm, Marvel.
These things move, and there's tons of liquidity.
So, and they have tons of volume.
So, if you're looking for something to trade, you're an intraday trader, check out the semiconductor sector.
It's some of the best price action I think you can get right now overall.
Yeah, short to Vicks.
Yeah, I think there were some interesting developments in the semis space today.
I was talking about this with some people a little earlier.
Yes, NVIDIA did sell off from the highs, but what's interesting is the volume on SOX S and SMH.
I think a lot of people have highlighted that, what was it, the March 8th day on SMH, that local top, where I believe AMD made its big top as well at that 226 area.
And if you look at SOX S today, I believe that's its highest volume day ever.
So, what could be happening there is, I know a lot of people who are maybe long NVIDIA are thinking, well, is everybody going to start selling this stock?
Well, I mean, they could, you could see some profit taking, but what a lot of people could be doing is just using some of their excess cash that they have, going out and hedging with SOX S.
So that, again, if you're a money manager or whatever, I mean, you're just not going to look silly just by selling the vast majority or all of your position.
You can put a hedge on and leave that be.
And then when you look at SMH and compare that to the day, that local top, that Friday, March 8th, and compare the volumes.
Yeah, I mean, it is significant.
It is stepping up when you saw a lot of the other names, AMD, On, Marvel, a lot of those other different semis starting to sell off.
But the volume isn't as significant as we saw on that March 8th day.
I think that's something to keep in mind.
Pretty solid point as well.
Hey, not financial advice.
Emp, I just bought some Zack Morris coin.
I feel like that's, you know, the new wave right here.
Oh, boy.
Oh, boy.
He's on it.
Hey, follow the trend.
Oh, I've seen it.
Yeah, I've been watching.
A lot of people have been all over that the last few days.
Bro, it's at 21,000%.
Oh, yeah, baby.
Let's go.
That's awesome.
I think Maple had some this morning.
He was talking about it.
Yeah, Maple was talking about it.
He's like, yeah, I sold a lot of my Zack.
I just let some runners go.
Hopefully, they turn into something crazy.
I only put in like 800 bucks.
So don't worry about it.
But I think that this Ethereum ETF potentially coming in maybe makes crypto run into tomorrow
and maybe bring some liquidity into the ecosystem.
So we'll see if I end up being able to make some plays there.
See what else can kind of line up for me.
Looks like we still do have some time here on the floor for those that want to continue to get thoughts in.
Jaguar, let me double back to you for a minute here.
I would love to get your updated thoughts on some of the commodity items that Kim talked about,
whether that be gold, wheat, any of these other items that you're looking at.
Yeah, I guess this goes back to the original point that I was making earlier.
The gold is a little bit strange in the sense that, you know, once we saw the U.S. dollar started to rebound sharply
from a perfect retest of the trend support.
If you look at the last six-month chart of the U.S. dollar, it pulled back and it tested and it started to bounce immediately.
And that's precisely when gold started to retrace the last two days.
So I would correlate the move in the precious metal mostly to the U.S. dollar in this particular case.
And for those who want to know, the reaction, the U.S. dollar has been a function, in my view,
of the comments that came out from ECB making the case that they're looking for potential cuts to begin there in Europe starting from June.
And then also Bank of Canada is now making comments because the Canadian CPI is down all the way to 2.7%.
And that came in below expectation.
So there's a high chance that while the Fed stays hawkish and no cuts expected or maybe only one by the end of the year in the U.S.,
the ECB and Bank of Canada both will start cutting by summer, probably in June, we'll get the first cuts.
And as a result, you have a dynamic in which the U.S. dollar was strengthened against the basket of other currencies that has a potential net negative impact on liquidity.
As the dollar went up, you know, commodities have started to pull back.
So gold, I think, was related to all of that starting from yesterday morning.
And as gold started to pull back, then silver, you saw same thing with copper with a vicious downward shift.
It was overbought, frankly.
So a little bit consolidation or even a pullback wasn't going to surprise me in copper.
It had gone on straight up.
But I think the move was rather vicious as to how fast it rolled over after printing a doji candle in the middle of the week.
And then same thing happened with then with some other stuff, you know.
So crude oil broke down through a critical $78 support.
And now we're at the $76 handle, which pulled the entire energy market down with it.
It was broad based across all commodity complex.
You started to see basically the breakdowns or just pullbacks.
Some were harsh.
Some were modest.
But I think it all started starting from really Monday or Tuesday, I would say, when these central bank comments started to come out that we're going to see easing in Europe and Canada first before we would see it in the U.S.
That put a bid under the dollar.
And next thing you know, it was just cascading from there.
That's how I would describe it.
Whether it will continue or not, it's something to keep an eye out because I'll give you one example of how this is impacting equities beyond just the commodities.
If you pull up the chart of Medtronic's, MDT, that is a healthcare company, Medtronic's, right?
I mean, we all know the company.
And look at how viciously it sold off today, right?
A pretty big, sizable sell-off.
So then you pull the earnings report to see, well, what the heck happened with Medtronic?
Why did it sell off like this?
Was it just the broad market's pressure?
Remember, the beat on earnings, the beat on sales, guidance was better than expected.
They raised their organic sales guidance to a midpoint of 4.5% when the street was looking for 3.9%.
Margins are expanding.
That was good.
Everything was great.
So then why the hell did the stock sell off like this?
It turns out they specifically in their guidance, they mentioned that they're anticipating as much as 5% negative impact from Forex, from the strengthening of the U.S. dollar.
So as a result, even though they raised their organic sales guidance above the consensus, their EPS guidance was only in line.
And the market punished the stock as a result.
And this is how rising U.S. dollar is going to start to impact many other companies, right?
In this case, it was a 5% Forex impact on Medtronics.
So if you have a situation starting from June where ECB is cutting and you have Bank of America cut, I keep saying Bank of America, if you have Bank of Canada cutting, both of them are on tap, in my view, to start cutting from June.
If not June, then definitely July, while the Fed is staying hawkish all the way with higher for longer for most of the year.
And as a result, dollar is going higher.
You're going to see this.
You're going to see this impact liquidity in the equity market.
So you're going to see this impact, you know, companies like Medtronic.
And it's going to have potentially some impact on the commodity cycle as well.
And that's been on display in dollar, I'm sorry, on the U.S. dollar, on the crude oil, on copper recently, as well as precious metals.
Perfect.
I appreciate that, Jaguar.
And we were able to get the man himself specials.
It's Jay up in the house.
Hope you had a fun travel and trip.
And back in the zone now, Jay.
How's it going?
Beautiful.
Thanks for having me, guys.
It is back in sunny Palm Beach.
It's starting to get very, very hot by July.
You don't want to be stuck down here in Miami.
It's going to be 110 degrees again.
You know, I was in London meeting with clients.
You know, all the pod guys, like half the hedge fund industry is now pods.
Millennium, Valley, Citadel.
It's kind of, you know, they're all in the same trades.
It's very, very crowded.
It's always fun to hear what they have to say, at least.
But I wouldn't want to be in their seats.
It's a tough market to be in that seat.
You make all your P&L during earnings season, you know, within a few days.
But this earnings season has been, you know, an interesting one.
So, you know, I think we're up 7.4% for S&P 500 earnings.
And, you know, 94% of the companies in the index had reported as of last night after NVIDIA.
But the majority of those earnings has actually been driven by, you know, the MAG-7 names.
It's really the MAG-5 because, you know, Apple and Tesla haven't been doing as well.
And when you look at those companies, you know, their average earnings, you know, are up like 30 plus percent.
So, you know, I would say that, you know, the S&P 493 is basically, you know, that growth is like negative 1, negative 2%.
So it kind of goes to show that, you know, it's not just the Russell.
The Russell is like 4% of U.S. market cap.
So that's, you know, when you're talking about those names, those are tiny as a percentage of the total equities.
But even the S&P 493, you know, earnings growth hasn't really been that robust.
And it kind of fits, you know, our view that, you know, everyone was assuming growth would slow down last year.
But it looks like growth is starting to slow this year.
You know, whether you look at Target or you look at BJ's Wholesale or you look at Ralph Lauren today or you look at Starbucks or you look at McDonald's.
You know, companies are either missing expectations or their outlooks are not as strong.
And it kind of just goes down to the consumer.
You know, our post-pandemic savings, you know, have dwindled to like negative 72 million.
Like all that, those pandemic savings have been gone.
Now, if you look, compare our savings versus prior to the pandemic, you know, savings rates are still decent.
But, you know, it's been offset by, you know, the inflation that we have in goods and services.
You know, and most recently you've seen, you know, in the last three months, you know, CPI be a little bit higher than expected for Jan, Feb, March.
April is a little bit better.
But Jan, Feb, March due to, you know, big jumps in auto insurance and residential insurance.
You've seen, you know, even Berkshire Hathaway, you know, GEICO raise insurance rates sharply, you know, raising rates while losing market share to progressive.
But, you know, there are some costs that will continue to rise in our economy.
But overall, you know, one positive thing I noted for inflation, but negative for the company, is that Target announced when they reported a couple of days ago that they're actually cutting prices across 5,000 SKUs.
And I think Walmart will probably follow suit.
So I do think that, you know, I'm less worried about inflation, but I'm more worried about, you know, at this point, a growth slowdown.
And actually, in Germany, if you look at the German PPI, the German PPI was like negative 3.3%.
So that's deflation.
In China, you have deflation.
Japan, you're starting to see, you know, things, you know, you see modest inflation.
In the U.S., you have modest inflation.
And I think that we will be able to control it, and I don't even think we'll get to 2%.
And it's in the Treasury's best interest that we don't even get to 2%, because in a very perverse way, the government should want 3% inflation, like slightly higher than average inflation.
Because with $35 trillion of debt, the easiest way to lower our real debt is to tax people through what they call the inflation tax.
If inflation is 3% a year for three years, right, it's almost 10%, you're wiping out your debt in real terms by 10% every three years.
You know, inflation is good for debtors, bad for creditors, right, because you have to make an excess of that to make a real return.
So, you know, let's focus, you know, let's take a step back from the macro and kind of talk about, you know, a couple earnings.
I don't want to repeat myself, so if you guys have already covered something, you know, definitely let me know.
You know, Target was definitely a big letdown.
You know, BJ's today, even though they met expectations, you know, that was a letdown for a lot of guys, at least I know on the buy side, that, you know, were expecting more like a Costco-like beat.
You know, the shares were up, but it just wasn't what people had expected.
You know, you've had, I think on the consumer cyclicals, you have, you know, hedge funds that have been raising their shorts in anticipation of a weaker consumer.
At the end of the day, you know, the economy is still not in terrible shape.
You know, perils going from $250 to $170 doesn't mean we're entering a recession.
All it means is that we're not going to be growing at 3%, 4%, 5%, 6% like we were because of all the stimulus.
It was funny that Goldman Sachs, you know, DJ Diesel, whose career was more of a banker, he was never a trader like Blankfein, he basically stated that, I think two days ago, or even yesterday, that he doesn't expect any cuts, you know, in 2024.
You know, we still think that it's possible to see one or two cuts.
I think even if inflation doesn't touch 2%, that Powell will likely cut simply because, you know, the dual mandate is not all that the Fed cares about, right?
The fact that the dollar's strengthening very sharply, you know, the yen's depreciated 30% in two years, right?
Powell's looking at, he has swap lines to Europe, he has swap lines to other countries.
He's looking at emerging market currencies, he's looking at what's going on with the U.S. banking system just today, you know, Comerica's down 6%, right?
The CRE's down 1.8%, why?
Well, you know, it turns out that the commercial real estate risks that we've been talking about are starting to become an issue, and, you know, these banks need adequate capital.
Now, with Comerica, it wasn't a commercial real estate issue, it was just a capital adequacy issue at their trust subsidiary, not even their bank subsidiary.
But the government is trying to make sure that these banks are adequately capitalized because they know that, you know, they know what risks are coming.
Another red flag today was that Starwood Capital, SREIT, just like Blackstone has BREIT, Starwood has SREIT.
And while it's not the public REIT, I use the ticker on my timeline so people actually see the news.
You know, the dollar sign tickers are the only way people actually see the news when they look for it.
It's not the public REIT.
The SREIT is actually taking redemptions to 1%.
That means if you had a million dollars, you could only withdraw $10,000.
That's how tight, it basically gated the entire fund, right?
Because real estate's not liquid and foreclosures continue to happen.
It's really funny that in January, right, the head of Blackstone Real Estate, you know, half, a third of their trillion in assets, at least a third of it's in real estate.
So he basically said real estate's bottom.
And then, you know, Starwood's CEO basically came out and said real estate's bottom in March.
Turns out they're both wrong, right?
Commercial real estate has not bottomed yet.
You know, in a higher for longer, they were all just banking on the fact that the Fed was going to cut in March.
In reality, the Fed may not cut till September or December.
And as long as rates stay this high, anybody who has floating rate debt outstanding, right, which includes a lot of small cap companies, includes a lot of commercial real estate businesses, you know, they're going to suffer, right?
Because when the SOFR, the benchmark, it used to be LIBOR, but now it's SOFR.
SOFR is around five and three-eighths.
And when that was at zero and you had a SOFR plus 2% loan, you were borrowing at 2%.
And now it's SOFR at five and three-eighths, you're borrowing at 7%.
For a lot of these companies and real estate issuers, their costs of capital have more than tripled.
So that, you know, there's some pressure there.
And, you know, Powell obviously cares about the banking system.
The smaller banks are highly exposed to those sectors.
Now, on the corporate side, earnings have been very robust because, you know, the big tech names have rallied a lot.
And NVIDIA has been the biggest beneficiary of MAG5 growth.
Why?
Because, like, 40% of the CapEx that all these guys are spending, you know, Snowflake sold off today.
Why'd Snowflake sell off?
Snowflake sold off a little bit today because they said that their costs are going to be higher because they're spending on AI, right?
Both OPEX and CapEx are going to go up.
First of all, we don't even know what the ROI is on AI, right?
Everyone's chasing it.
No one knows what the fuck the ROI is going to be.
No one can quantify outside of cost savings, like how much they can charge for these new products and what the synergies are.
You know, so people are just right now just blindly spending on H100, right?
And they're blindly spending on Blackwell H200, right?
We all know that.
And they're all getting into CUDA software.
And NVIDIA has gone from a company that did $2 billion of free cash flow in a quarter just one year ago to $15 billion of free cash flow, right?
Just OCF minus CapEx in this past quarter.
Now, that yield, you know, on a $2.5 trillion market cap isn't that great, but it's become a free cash flow monster.
And AMD is, you know, is far behind.
Intel is far behind.
And, you know, Masayoshi-san's company is also far behind.
So at least for the next year or two, you have all, you know, you have Google, you have Microsoft, you have Meta, you have these massive companies that together generate over $100 billion in free cash flow, sending 40% of that directly at NVIDIA, right?
That's the fucking story, right?
And on top of that, you have governments and you have venture capitalists that are trying to start these VCs.
They're not funding your, you know, your deliverers, right?
We already have 15 companies where you can buy food and have it delivered to you.
You have Drizzly for alcohol, right?
You have everything imaginable when it comes to delivery.
These, everyone is now focused on AI.
There will be very few winners, right?
Just like in 1999, 2000, right, there were very few winners when it came to search engines.
No one knows Lycos anymore, right?
No one even uses Yahoo anymore.
You know, Yahoo is bigger than Google, right?
Yahoo in 94 was going to take over the world, right?
Now it's just Google and Bing because of AI, but mostly Google.
So when you think about what's going to happen going forward, there are going to be very few
companies that actually win, you know, when it comes to AI software, everyone will try it.
And there will be a lot of companies that can cut costs.
They'll benefit on their EPS line.
There will be a lot of companies that maybe sell services that have a little bit of AI
within their product.
But, you know, next year, I think one of the biggest trades will be shorting companies that
miss market the amount of AI that they're actually incorporating into their business
model.
So just keep an eye out for that.
There are already a couple of companies that completely misconstrue and miss, you know,
miss market the way that their businesses operate.
And that'll be a red flag going into next year.
The market right now has been extremely sensitive to rates, right?
So I wanted to touch on that.
I wanted to touch on the Fed minutes.
Nine out of 10 times the Fed minutes mean absolutely nothing, right?
Most of the time you see what Powell has to say at the meeting, you know, then, you know,
a couple of weeks later when the minutes come out, the minutes say exactly what Powell said.
However, you can look up the Fed minutes on the FOMC website.
You know, right now, I'm just going to scroll through my notes.
I'm going to go through this in a lot more detail on my Sunday call, but I'll just give you
some high-level points, you know, from the minutes and why we shorted a little bit of
the Russell after the minutes came out.
And, you know, while the market bounced because of NVIDIA, you know, the Russell was down 2%
again today.
So, you know, we'll start on page 3 of the minutes.
You know, the FOMC essentially said that, you know, they're worried that inflation is
being more persistent.
They still expect it, you know, to hit the 2% trajectory, but it might take longer than
expected.
You know, they talk about how the market is only pricing in a couple cuts.
They talk about how the dollar is strengthened.
That goes to Jaguar's point.
One of the companies you mentioned earlier, when the dollar is strengthened, it can be
negative for multinational earnings, especially, you know, some software companies and medical
device companies that earn a lot from overseas.
Dollar strength isn't necessarily good for them.
So they talk about how the dollar strengthened has been negative for U.S. exports.
This is on page 3.
They talk about how dollar strengthening is negative for financial conditions.
This kind of goes to my earlier point about the Fed just doesn't care about employment and
inflation.
They care about currency, right?
They care about EM, other developed market central banks.
They care about the banking system and the financial system.
So they go through this in the minutes.
And then I'm going to skip because for the lack of time, I'm going to skip to page 4.
And they talk about labor market conditions.
They talked about how labor market conditions are still strong.
Everything in this Fed minutes is saying higher for longer, right?
And then they talk about PCE in that first paragraph on page 4.
You know, it showed it showed I slowed significantly over the past year, but it's still much higher
than their 2 percent goal.
They talk about while labor supply and demand have moved into a better balance.
The speed of this realignment has slowed.
So what they're saying is the labor market is softening, but it's not softening enough for
us to want to cut.
And actually, when Powell spoke, he said that the unemployment would have to move more than
a couple of tenths, you know, of a percent.
So I interpret that as, you know, the unemployment rate has to go from 3.9 to closer to 4.3 percent
before he moves to cut.
That's just my interpretation based on what he had stated.
So we're on page 4 right now.
They also talk about how the 12-month changes in the employment cost index, ECI, and the average
hourly earnings for all employees, you know, both declined in March relative to a year
earlier.
But the three-month change in the ECI stepped up noticeably from the average pace.
So they're saying that wage inflation is not falling enough for them to want to cut, right?
So every paragraph I'm reading through these, you know, through the minutes is basically
saying hire for longer, hire for longer.
And I'm sure every bond manager, right, read these minutes.
I'm not going to go through the whole thing.
I'll spend more time going through it on my Sunday call, but just in the first couple
pages, right, you see right away, right, that while the Fed, the market rallied in, because
in the last time when Powell spoke in the context of an FOMC meeting, he said that they were going
to slow down the pace of QT, right?
That was the catalyst, that they were going to slow down the pace of QT starting June 1.
Valid.
Markets ripped.
I also view that as a valid reason, right?
Financial conditions were easing.
Also, Yen has a secondary treasury program where she buys older treasuries that are less
located from banks.
That's a pseudo QE.
Okay.
So the central bank is not going to be letting bonds rolled off at a faster rate.
Okay.
That's positive for risk assets.
On the other side, when you actually read the minutes, what the minutes show you is that
while that is the case, that the FOMC is likely not going to be cutting rates to the extent
that anyone thought they were going to in the first quarter of this year.
As you recall, in January, there were almost seven cuts priced into the market.
In April, that went down to one.
Right now, I think it's like about 1.7.
So basically, these minutes confirmed that we are in a higher for longer environment.
And after the minutes came out is when the CEO of Goldman Sachs basically said that he
doesn't expect any cuts this year.
I still expect one.
But that is why you saw that flip after the minutes and the market started to sell off.
After hours, when NVIDIA reported, you saw everything go green, right?
Because, you know, there's several companies in the AI space that are tied to NVIDIA.
And all those companies, right, were bid after hours.
I'm talking about SMCI.
I'm talking about Dell.
I'm talking about VRT.
I'm talking about TSM.
I'm talking about AMD.
I'm talking about Micron.
I'm talking about AVGO.
I'm talking about ANAT.
I'm talking about Oracle.
I'm talking about QCon.
I'm talking about VST, right?
All those companies, you know, in the AI, and there's, you know, there's some in power
like TL&E, et cetera.
All the companies in the AI framework, right, were rallying after hours.
And that rally led into the pre-market, right?
European traders, you know, were trading that.
And then the pre-market in the first half of today, everything was hunky-dory.
Then you basically saw the market, you know, the market data come in, 830 data on PMIs,
right?
That was the first sign, right, that people were going to think about the minutes again.
The manufacturing PMI came at 50 spot nine.
In the last reading, it was at 49.9, which meant the manufacturing was slowing down.
So it bounced, okay?
The second data point that came out at 945 AM, right?
So first we had initial jobless claims at 830.
No one cared.
It was 215 versus 220.
You know, the market rally, you know, followed through from NVIDIA.
By the time you hit 945 in the morning, the second data point that came out was the U.S.
service PMI.
That was 54 spot eight versus 51 spot two.
That's a big jump in the strength of the service economy, at least in, you know, they pull managers.
And the manager response rate is now 30% from 70%.
So you can say, take this data with a grain of salt because fewer people respond to these
surveys.
But the data was that the service economy is not as weak as you think it is market.
That's a 3.7 point beat versus expectations and a sequential beat of over three points.
The market's like, holy shit, the economy's not, you know, it's slowing, but not slowing
as fast as we would think it needs to slow for the Fed to cut.
So all of a sudden the market, you saw a small gap down.
You saw the Russell go negative.
Russell was like negative 50 bips.
Then as you get through, you went throughout the day, you know, you saw new home sales
and you saw, you know, every company, you saw several companies report, you know, it,
like I said, outside of the MAG5 earnings have not been that great for, you know, for non
big tech.
So you had a couple, you know, the market digest earnings and, you know, Ralph Lauren
and some other companies like VF, VF puked, like VF was down 10%, lowest since 2008.
You know, they own, they own Vans, they own North Face, they own Supreme, right?
So you're starting to see weakness in the consumer.
They saw negative sequential sales for two quarters in a row.
So the market's saying, okay, well, the consumer's weak.
It looks like service economy is okay.
But the minutes say that the FOMC is looking at this like a hop, they're likely not going
to cut anytime soon.
It doesn't mean they're not going to cut this year, but they're not going to cut anytime
soon.
The service PMI confirms that you have a couple of bad earnings all of a sudden, right?
And, you know, big PMs, big mutual fund, hedge fund PMs, you know, selling may going
away.
They're all going to go on vacation, right?
In June, July, people are like, where's, you know, there's not a lot of volume.
Easy tape to sell.
Selling, right?
Russell goes negative 2%, right?
I'm missing a few things, but for the sake of time, it's already 645.
I think, you know, Wolf might have a stop at seven.
You know, the market starts to puke and Boeing was a big contributor on the Dow.
So most of the time I never look at the Dow, but you've had several negative point, you
know, data points from Boeing.
Boeing will eventually be a buy.
This is a defense company.
The government's going to support it, but it has, it's going to be a shit show for the
next two years.
The FAA has already forced them to stop producing, you know, from 60 planes a month to like something
like in the mid thirties, a number of planes a month could be 34 planes a month.
That's not enough.
You know, they're not operating at a pace that's efficient enough for them to generate free
cashflow.
They're having to invest in all the things they didn't invest in, right?
Monitoring, quality testing.
They're also trying to buy, you know, one of their component manufacturers.
I don't even know if they have the cash to do that right now.
They issued several billion in bonds.
I personally think that Boeing could get downgraded.
Um, I'm looking at the bonds, you know, if they got downgraded from true there at triple
B minus right now, um, you know, I was looking at these eight and three fourths bonds that
mature in 31 that trade at one 13 right now, if they get downgraded again, right now, they
have a yield, um, of six and a half percent, you know, and a G spread of, you know, 180.
If that, if their spread went to like two 50 and we went to a yield of 7%, like those bonds would
start to look attractive.
You know, I have a list of 700 bonds.
I go through special sits research.
This is not even close to my bogey, but you know, Boeing, because Boeing is around, I expect them
to get downgraded to junk.
Um, and that's going to make the, you know, the equity, um, the equity sold off 8% today.
And it's a big component of the Dow that dragged the Dow lower.
So I expect, you know, a junk, uh, a downgrade to Boeing, and that could drag
the stock down to kind of like the one fifties, um, in the one fifties, if you have a five
year view, um, you know, Boeing could be very interesting on a five year, but it's going
to be a bumpy road for the next two years.
So anyway, long story short, the only reason I brought that up is that, you know, Boeing
brought down the Dow.
So you had negative sentiment from that you negative sentiment from the minutes, you
negative sentiment from the strong service PMI, a couple of bad earnings.
And that's, that's all you needed, right.
For the Russell to close down that much.
And frankly, you know, while we profited on our IWM short, after the minutes came
out, I wasn't big enough, right.
To offset, um, some of the other losses in the portfolio.
I have some idiosyncratic shorts, but they didn't offset, you know, the rest of my portfolio.
So I might be looking for more single name shorts, um, on a go forward basis.
There are a lot of expensive companies that have rallied a lot, you know, from October to
May, there are companies that have doubled and tripled that are absolute shitbags.
Um, and we're going to start trying to add names to the shortlist, you know, we're still
net long.
Um, but you know, you want to add companies that don't generate profit that have high
levels of debt.
Um, there is a chance not saying, you know, no one has a crystal ball, but there is a
chance that, like I said earlier in the year, when we had that 5% sell off, if the U S
tenure were to get back above, you know, four, four, six, five approach four, seven, five,
you know, the market could have another 5% correction.
And what was really entertaining to me, um, was that, you know, Mike Wilson, um, basically
came out with his S and P five.
He had a 4,500 target on the S and P 500 at the start of the year.
And the poor guy, I feel bad for him.
He's probably pressured by the rest of the bank, but he basically capitulated and said,
you know, went to a 5,400 target, basically where the market was a couple of days ago.
And, you know, there's a video posted to my timeline.
He basically said, you know, I don't think there's a lot of upside in the market, but
wink, wink, they're forcing me to do this.
And, you know, I took it as a contrarian, that is a contrarian signal as well.
Um, but the moment he said that he kind of top ticked, um, the market, it was a little
comical, but in reality, I don't think he fully changed his view.
I feel bad for him, but, um, I do think that it's not going to be as easy between now
and the end of the year.
Um, you know, I do think that earnings, especially for consumers, consumer companies, um, and
outlooks are going to be more volatile.
Um, you know, there are companies like Walmart, right.
Which actually do better when the economy slows down.
Um, but if you're thinking about consumer apparel, like leisure, you've seen companies
like today, I saw casino, casino companies have, have underperformed.
Why?
Because hedge funds are trying to front run going into the second half of the year, you
know, a weaker consumer.
It doesn't even mean, you know, we don't, we haven't even seen the data really play out
that way, but you've started to see consumer sectors really get pummeled.
And at this point, you know, I, I, I'm kind of waiting to see how the data, um, plays out
into, um, the second half of the year, but kudos to the people who are long.
Um, you know, the AI trend, you know, it's not just been NVIDIA.
There've been every single company that I mentioned earlier in this space that's tied
to that ecosystem has actually done, is actually done really well.
Um, and I do think that based on the call, like the transcript I read, and I was on the
call with you guys yesterday on the NVIDIA call, I do think that while each 100 demand
that backlog may only be a month, you know, I do think that with the H200, you know, there's
a, there's a big backlog for NVIDIA and it might be, it might be a year, um, before
things slow down.
Um, so there's a funny quote I saw, I don't remember who said it, but I want to give them
credit, but it was someone on Twitter basically yesterday said, it might've been Elian.
Um, and you know, he said that, oh, all these bears on AI, you know, guess what?
NVIDIA is going to go to 100, but it's going to go to 100 because they're doing a 10 to
one reverse split from a thousand.
And that was a funny comment, but you know, it is a company that generates a boatload of free
cash, but I wouldn't chase at this point, you know, at 1050, there's a, there's a heat
map and I think five or six people posted this heat map, but at the, at the end of the close
today, you had like Eli Lilly up 70 bips, you had GE up 2.7%.
That's been a great story, by the way, after the spinoffs, the two, the two spinoffs, GE
has been a huge runner.
You had Palo Alto, which has sold off a lot, you know, kind of bounced a little bit, but it
was really an NVIDIA.
You look at this, I'll post it up here.
You know, I know a couple other people have posted this, but it's a, it's a cool little
heat map to look at.
You know, it's like the last man standing when you look at this graph.
Um, so absolutely unreal week.
And what this shows you like this day, this heat map basically shows you our entire earning
season without the mad five, without meta, without Google, without Microsoft, without
NVIDIA.
Okay.
Earnings wouldn't be, wouldn't even be positive, right.
For the S and P 500.
So, you know, when you're making trades, when you're making bets, just understand, you know,
we're, you know, probably in like the seventh inning of, you know, a huge bull cycle.
In fact, you guys probably remember in the third quarter of 2019, we were already entering
a recession.
You know, in 2018, you had the taper tantrum and Bernanke pulled back from monetary.
I'm sorry, Powell pulled back from, from tightening, um, specifically because he thought we were
going to go into recession.
Basically COVID saved the market after that immediate dropdown in March, right.
We had a multi-year bull run.
We had a sell-off in 2022 because of tapering and tightening, but we've just been in, we've
been in, in, in this bull market really since 2009 and, you know, it's very long in the
tooth.
Um, it doesn't mean that we're entering a recession this year, but what it does mean is
that earnings growth is going to be slower going forward because like Target said, consumers
are getting tired.
They can't keep spending on goods.
Some of, some of their spending has moved to services, but in reality, you look at credit
card debt, you know, over at 1.3 trillion, you look at auto defaults, you know, you fire
up, follow the guy dealership.
He posts some really good data.
You can also go to the Cox automotive website, you know, auto total delinquencies are like
up 12% and, you know, 30 day delinquencies, 90 day, I think 90 day delinquencies are like
2.7%.
Um, you know, people initially, when I would point out this data, they would say, well, you're
not even at pre COVID levels.
Well, guess what?
Now you're actually going above pre COVID levels on delinquencies for credit cards and
auto loans.
And it's something to keep an eye on.
It doesn't mean the world is ending.
We're still in a growing economy.
Um, but another data point I wanted to show you guys is that today you had the first triple
a triple a, if you guys understand how the securitization market works, it's one of the
things that blew up the economy in 2008, but you know, securitizations are a lot cleaner.
Um, today I want to leave some time before the end of this call to talk about the F, uh,
Bitcoin approval.
Well, the sec that came out after the, you are correct, by the way, we have till 7 PM on
this one.
Yep.
So I'll spend two minutes on CMBS and then two minutes on the F and then we can go into
Q and a.
So CMBS, um, there's a, there's a deal where the top bonds were actually backed by a loan
for 1740 Broadway.
Okay.
This is prime real estate in Manhattan.
Okay.
Where there was a default.
And this is the first triple a CMBS that suffered an impairment since 2008.
The first time in 16 years, more than 15 years, we had a, the securitization default like this
for a triple a piece of paper that is going to send ripples across the commercial, the
CMBS market.
You could see some spreads winding out and it's telling you that these schmucks at Blackstone
and Starwood, they're just talking their books.
Commercial real estate market has not bottomed.
And that my friends is why how is not being over overly hawkish because he is concerned
about banks and banks are not in the clear yet.
And you saw by that, that sharp decline in Comerica today that, you know, these capital
ratios for some of the smaller banks may not be adequate if we're in a higher for longer
environment at the same time, real estate continues weaker.
So, you know, my, my whole view is risk management and capital preservation is more important than
swinging for the fences.
You know, you can compound your capital.
You will have good years.
You will have years where you're up 40%.
You'll have years where you're down a little bit or you're close to flat.
But as long as you preserve capital, you can continue to compound.
If you're down 50%, it's going to take you a hundred percent to make that back.
So the most important thing you can do as an investor, especially an older investor, is
to preserve capital and is to, is to figure out where the risks are and you can still index,
you can still invest, but you know, what areas to avoid, what areas are blowing up.
And so I like to follow, you know, focus on some of those things.
We have a member.
So we have, you know, I think we have about over 1500 people in our educational discord,
every, everyone from, you know, top institutional prop traders and hedge fund managers to retirees
and individuals and students.
And they all kind of share their ideas and trades.
Um, there's a guy in there named Solomir and Solomir is our crypto expert and I'm not
one to be honest.
So what Solomir was pointing out is that, you know, the, just like the GBTC.
So I was long GBTC when they had a 50% discount to NAV.
And that was a good margin of safety for me because I was like, okay, Bitcoin has to get
completely destroyed.
You know, if this is approved, right.
Um, there's enough of a margin of safety.
There's a big discount there.
Um, and it wasn't a perfect arbitrage and wasn't a perfect trade because I wasn't short
futures against it, but it worked out really well.
Now with F, you know, I kind of, I missed the boat.
I wasn't, I didn't really have a big position in this EHTE, uh, closed end fund, but he did.
And you can see it on my timeline.
You know, this was trading at a 20% discount to net asset value just in April.
I want to give Solomir credit.
You know, he said that there's a high probability, you know, that, um, you know, CEO of Blair,
BlackRock, Larry Fink had said that there is a high probability that Ethereum ETFs would
be approved by the SEC.
Now there are a number of S1s, right.
That are pending, but, you know, after the close, you know, there is what I interpreted
as an approval.
So the market front run front ran that, you know, the ETH, um, closed end fund that didn't
have discount collapsed from, you know, over 20%, you know, is that 25.65%, um, a couple
months ago to almost 6%.
And I bet you tomorrow it'll be flat.
I don't, you know, and because it's OTC, I don't even know if you'll be able to get involved
pre-market, but I thought, you know, for everyone who follows crypto, I don't follow it too closely,
but for everyone who follows it, it's a very important moment in the history of this asset
class because, um, outside of Bitcoin, there were no actually, you know, in the U S at least
approved ETFs.
So you will likely see, uh, some big volume, uh, tomorrow in these, uh, in these securities.
And now we have three minutes left.
I wanted to open it up to questions and comments.
There are a lot of topics I didn't want to, didn't have time to touch on.
Um, one of them being a Dutch tender where you can basically put 99.
So monster beverage is doing a Dutch tender, by the way.
So in terms of special sets, one of the cool special sets that you can do as a retail investor
is a Dutch tender.
So monster beverage was trading at 52 70 today.
They're going to do a Dutch tender by June 6th.
If you buy shares, for example, a monster, do your own research below 53, and they're going
to buy them between 53 and 60.
That's basically free money.
And to assure that they buy your shares, what you do is you buy less than a hundred shares,
you know, so if you buy 99 shares that fits this 5,200, they buy back those shares, you
know, that's an interesting arbitrage.
Now there's certain things when you read the document, you know, there's certain conditions
upon which they can cancel, but it's an interesting thing to look at if you've never done it, especially
for smaller accounts where you can make any interesting ROI.
So I didn't want to touch on that because it's, you know, people come in and they're like,
dude, this guy's talking about macro.
He's a specialist guy.
I don't like macro, but most of my, you know, ideas I can assure within our community and via email
specialistresearch.com.
That's an interesting one.
You guys can take a look at, um, so I wanted to open it up to Q and A for the last two minutes.
We have Wolf, if you had anything, unfortunately, I got to get us rolling into this next space
here in about 60 seconds, Jay.
So I'm going to skip the Q and A here probably, and just say that everybody, the right decision
right now is to follow these speakers on stage.
Of course, huge thank you to Jay.
We get them on every couple of weeks, shares institutional grade research with all of us on the
spaces.
Uh, I mean, it's just beautiful.
You can check out all of his services right through the link in his profile, Specialists
Research.
You can subscribe to him.
You can follow him on here.
You can check out the rest of my amazing, amazing panel.
Um, I am going to get us rolling into this next chat.
It's going to be, uh, let's do it.
Yeah.
It's going to be on the list.
Thank you so much, Wolf.
Thank you, Jordan, Theta Warrior, Jaguar, Kim, Emperor, Short, you know, Goldmining, everyone
who's on here.
I listened to all you guys and I learned from you on a, on a day-to-day basis.
That's why I think these communities are so important.
And, you know, thanks to Wolf for, for sharing this knowledge for free, right?
To everyone in the audience, you know, over 500 people today, have a wonderful night.
Enjoy the weather.
Get outside.
We'll do another one soon.
Take care.
Yes, sir.
Many more to come, many more to come.
I'll do my best to keep lining these up.
And a big thank you, like he said, to Short the Vicks and Kim, Emp, Jaguar, Theta Warrior,
Jordan, all for being on here and be amazing.
And of course, Jay, for doing this together with me.
We're at 7 p.m. Eastern.
So I'm going to roll us into my last space for the evening.
I believe we have a couple of speakers that are coming up for this one.
I know some of the speakers that are here have to go take care of their kids, things
along those lines.
So totally understand it.
If you're able to stay on, happy to have you on.
I've been fascinated with the world of gold mining lately.
It's been absolutely blowing my mind, the possibilities there, especially, you know,
I look at some of the ETFs, some of the levered ETFs, some of the individual names, and there
just seems to be a lot of promise across the ecosystem.
I mean, one of the ones that I look at a lot, like a GDXU recently had a run up where it
went from $17 a share to $50 a share, right?
I mean, in just a few months.
And I've actually had the opportunity to really explore gold mining exploration and actually
travel out into Nevada and see these things for myself.
So connected with Gold Mining Inc., who's up here on stage, they are nicely listed and
traded under GLDG.
Excited to have them as a part of this.
I am going to give them an opportunity to go ahead real quick, introduce who's behind
the account.
I also am doing this as a paid partnership with them.
I'm going to give a quick disclaimer on that afterwards, want everyone to be aware, and
then we'll get into all the content.
So Gold Mining, Alistair, how's it going?
Give people a quick introduction, please, if you're able to.
Absolutely.
Great to be here this evening.
Thanks for having me on.
Alistair Still, CEO of Gold Mining.
Geologists by background have, I guess, cut my teeth and traveled the world in gold mines,
working for major operating companies in various parts of Canada.
I've been through the U.S.
I've built mines down in South America.
So a good background, working for major mining companies now, having the pleasure to work for
Gold Mining, Inc., which is an exploration and development stage company with a pretty
robust pipeline and project portfolio of projects all in the Americas, good exposure
to gold.
As a bonus, we do have resources of copper.
And as an added incentive, there's a little known about uranium project in our portfolio
in the heart of the Athabasca Basin in Canada, which is also a pretty hot commodity these days
as well, uranium.
And then you speak in my language, gold mining, uranium, all these hot topics, which I am
certainly bullish on.
So as I mentioned, this is essentially, this is an advertisement right here for GLDG.
It is paid as a partnership between myself through them.
It is intended for informational purposes only, please, and not a recommendation or endorsement
of any specific stock or investment strategy.
Investing in stocks involves risks, including the possibility of losing your investment.
Please conduct thorough financial research and conduct a licensed financial advisor before
making any investment decisions.
With that being said, I'm ready to dive in and learn more about gold.
I've had the chance to talk with you through email briefly on a space the other day.
I'm super excited to have people that are knowledgeable in the industry that come and join us.
So let's get to it.
You gave us the brief intro there.
Let's talk about gold mining, Inc.
Give us the high level.
What is gold mining, Inc.?
What is it doing?
You have several assets and strategic investments, but what is the strategy here?
Yeah, absolutely.
And so I think it's kind of a unique entity in that we have a couple of strengths which
many exploration development companies don't have.
The first of which is that we're underpinning our resources with a very strong cash and healthy
holdings of cash and equities.
And those cash and equity holdings really give us financial flexibility to advance our projects,
whereas a lot of smaller junior explorers really are struggling to find cash these days.
So with a strong cash balance and equity holding in some pretty well-known companies,
which we can get into in a little bit, that gives us a great foundation to build upon.
But really the health of what we have is in the portfolio.
And that portfolio consists of a number of projects, rich in gold, also a little bit
of copper throughout the Americas, and really unheard of, I think, for a company our size
that we have 12.5 million gold equivalent resource ounces and a further almost 10 million
gold equivalent ounces in the inferred category.
That is a sort of type of resource portfolio you might typically hear about in much bigger
companies, intermediate developers and producers.
So strong cash balance and equity holdings, resource portfolio, rich in assets in the Americas,
and all of which is being driven by a team with decades of experience.
I touched briefly on my experience and having worked for majors, operating sites and development
sites.
That's a bonus.
We also have to look at the top of our company at our two co-chairmen.
The first, Amir Adnani.
He may be a familiar name to many.
Amir founded the company more than 10 years ago.
Amir has now formed five different companies, three in the gold space, two in the uranium
space, including UEC, Uranium Energy Corp, which is approaching close to a 3 billion market
cap company.
So a serial entrepreneur with a terrific track record of success in building companies.
And also joining Amir about a year ago as our co-chairman is David Garofalo.
And David Garofalo has almost 30 years of experience, particularly in the gold business.
He led Gold Corp through the time, which was the largest ever merger in gold mining history,
the gold industry history, when Gold Corp merged with Newmont in 2019.
So great strength on our team with having industry experts who have not only built mines, operated
mines, but have a strong record of developing and delivering on value for shareholders as well.
Beautiful.
And your name dropping some big players here in the gold area, of course, David Garofalo,
Newmont, just some of the top tier people that you want to be associated with in this space.
Let me throw it over real quick.
Austin, did you have a question or thought you want to throw into the mix as we get rolling
here?
Yeah, just first of all, thanks for coming on.
I'm excited.
We've had David on the show and he definitely, I don't know, he blew me away.
I mean, he made gold as interesting as it's ever felt in my lifetime.
And one question, actually, I would say on par with expertise in the field, just to give
people kind of like a, I guess, just a general idea about gold in general.
Just walk us through like, why, why has gold, why do you think gold has been one of the most
best performing asset classes of all time?
Because kind of why, I mean, you're in the gold business, so clearly you're, you're still
betting on it, right?
But walk us through kind of, here's why you think as an expert, we've performed so well
and what you see in the future is in terms of gold performing as an asset class.
Yeah, absolutely.
I think one of the keys to gold is its intrinsic value and something that has stood the test
for literally millennia.
So it's not a flash in the pan entity.
It's not something that's here today, gone tomorrow.
There's a certain strength and stability about gold, which you really can't find elsewhere.
You know, you can have other investments that do well, but really how are they going to
perform?
Are they going to be around in the long term?
That's something never questioned about gold.
There's only a finite amount of it on the planet.
It can neither be created nor destroyed, so you can't make more of it.
And it's become increasingly hard to find.
So those who have gold or those who have resources or reserves of gold, those assets are becoming
scarcer and scarcer and that much more sought after, hence driving some of the demand for
the price.
I also think in times of turbulence and troubling times where we see political instability, we
see uncertainties in the economy.
Gold has traditionally been a safe haven investment, which thinks, OK, it's a good place to park
your money and you might weather the storm.
But beyond that, what we've seen, and as you pointed out, we've seen a tremendous run in
the price of gold lately.
So it's not just a safe haven investment.
It's actually paid off quite handsomely in returns in terms of prices of gold.
And I look back through my career and I can remember some of the first operations I was
working at.
I was working underground as a geologist at gold mines in parts of northern Ontario and
Canada.
And we were struggling to limber along at operations when gold was just around $250 per ounce.
And today when we see prices north of $2,300 per ounce, it's a tremendous uplift.
A lot of that price increase has come in recent weeks or months.
And I think there's a lot of appetite for that to continue.
So I think the fundamental qualities of gold are unquestionable.
And I think there's a very bright future.
I agree.
And I appreciate that.
And I guess one last quick follow up is, you know, we've seen gold's use in applications
such as, you know, the advent of technology and computers being, I mean, I'm holding a computer
right now.
So I believe they estimate gold's demand as a function of percentage at about just south
of 10% right now, as far as demand for use in technology.
Do you think with obviously the expansion of technology just doesn't end that that will
increase its share of demand for gold, which again, you mentioned is a finite resource that
there is only a fixed amount of.
And what do you think that will do for the asset over time the next 25, 30 years?
Well, I think it can only help the situation.
And you're right.
I mean, the actual physical use of gold, you know, it's relatively small as a percentage
you've given.
I think that can only increase, particularly with new forms of technology and, you know,
the conductive powers and the physical qualities of gold that will go into technology.
It's part of, you know, greening of the technology that comes with certain solar panels and transmission
of, you know, semiconductors and various computers and components of computers that use precious
metals.
So I think that percentage will only increase the traditional uses of gold where one thinks
of as jewelry or bullion items or even as a backing of currency.
Those can also have some pretty fundamental swings.
And there's a lot of talk of how gold is a backing of currency.
Of course, once upon a time, a few decades ago, you know, the currency was backed by gold.
And in fact, there are many calls today for a renewal of that.
And if there ever was a renewal of gold backing currencies, whether it's U.S. dollar or some
other form of currency, the demand for gold would just send it through the roof to be perfectly
out.
Great questions there, Austin.
Let me jump in with another, because I've also been just fascinated with the entire concept
of it's not just about finding gold, right?
Gold is all over the place.
It's about finding those economical deposits, right?
That seems to be the number one thing where there's an actual reason, hey, we're going to
really go and dig in here.
How do you go about, I guess this is basically a moat question, right?
What are you doing differently from everyone else in the game to be able to find those and
turn them into actual profit?
I think that's a great question.
And you're right.
I mean, it's like most metals that are concentrated throughout the earth.
They're usually in very small quantities in very remote locations.
The key is being able to find quantities of the metal in the concentration in an area where
it's concentrated enough and you've got enough infrastructure in place so you can extract
the metal.
So the first thing I would say is that unlike industries where you can set up shop and build
an operation somewhere, we can't determine where the gold is located.
What we can determine is where we're looking for it.
And that's one area we focused on is in good, solid, stable jurisdictions where we know business
can take place and we know that, you know, there's a certainty of permitting and ability
to access assets.
And I would point out that our company, we have projects in five different countries right
now, all well-established mining, strong countries with a long and robust history of mining.
And that's Canada, the U.S., Brazil, Colombia and Peru, all well-established countries for
mining in the Americas.
So the first thing is location.
The second thing I would say is that there's different ways to go about finding a deposit.
There's an earlier stage of exploration, which we often refer to in the business as grassroots
exploration or greenfields exploration.
And that's a much riskier game where companies are looking for the very first indications of
a deposit.
And from the first indications of a deposit, drilling down further to get more information
up to a point where it might lead to identification of significant quantities that might become
a resource or eventually a reserve.
That's a pretty high risk part of the business.
Fortunately for our company, we've taken an approach that we've bypassed some of those
earlier, riskier stage of the business.
So we've invested in assets or properties that already have known locations of gold.
And this is where the strength and the long-term vision of our co-chairman and founder, Amir
Adnani, has been so fruitful for us.
Over a period of 10 to 15 years, Amir was scouring the globe looking for properties, looking for
opportunities, looking for downturns in the market when gold was perhaps a little out of
favor or companies were struggling to make a financing or make a payment.
And Amir was on the money and acting and acquiring assets when times were tough.
And of course, Warren Buffett, as a classic name, is the first to tell you, don't be piling
your money in when everyone else is piling in.
If you can get in earlier, that's when the big wins are made.
That's exactly what Amir has done.
He's acquired assets and downturns in the market.
So put together these assets, put them together for really pennies in the dollar for what some
of these companies were eventually worth.
So we've acquired assets in good jurisdictions with known assets or deposits already existing.
So combined actually puts it into a portfolio that lets someone like me come in who spent
25 years working for majors operating companies.
Let's me use that expertise looking at this portfolio.
It's like a blank canvas.
I come in, I got excited.
That's why I left almost 25 years working for a major company.
Looking at this portfolio of assets saying, how can I take my expertise gained from years
in the industry?
How can I take these assets and start unlocking value for our shareholders?
That's really, I think, what sets our company apart and our management apart from many others,
having that location of assets, the quality of them and the quality of a team to move them
forward as well.
It's a great answer.
Yeah, because there's so much going on in that area and people have been around the block.
Like I was saying, you know, you've got to have some type of advantage there.
What's nice right now is gold is at all-time highs pretty much, right?
And everything's been running and it's been keeping up with the market here.
Where do you see gold going from here to the best of your ability?
And really the question is, how has the gold mining company itself historically performed
when you're seeing this rising price environment of gold moving higher and higher?
Yeah, a couple of great questions there.
I guess the first is that even last year I was asked the same question.
What I thought about the price of gold at the time, I think gold was trading around $1,800
or so.
And, you know, I'm not one to jump up on the table and pound it and say, I think gold's
going to $10,000 an ounce.
There's people out there.
But what I can say and what I do have good confidence in is what I said last year was that
last year I said gold's going to have a two in front of it for an awful long period here.
That came to fruition.
We've now crossed the $2,000 barrier, which I think was a bit of a hurdle.
Now that we're past that, I think the sky's the limit.
So I can see the price of gold going higher.
I don't think we've seen anywhere near the end of the run in the price of gold.
But I would point out that even if gold doesn't go higher, we're already at near-time record
highs.
And to put that in perspective, at today's pricing, if we have a gold price at $2,300
per ounce or $2,400 per ounce, most of the resources in our portfolio have been calculated
at much lower gold prices, some of them at $1,600 per ounce.
So there's a huge uplift already in value not captured in our portfolio, just looking at
the value that we calculated our resources at versus the price today.
So I think that there alone is a great opportunity for value.
And that price of gold, as it rises, will go further.
And we have a few examples in the past where we have seen runs in the price of gold and
gold mining as a stock or as a company, we have significantly outperformed the price of
gold and the GDXJ during those recent rallies.
I'll give one example.
When the price of gold rallied in 2019 to the 2020 period, it went up from some $1,300 per
ounce to over $2,000 per ounce.
So a good gain in the price of gold, but gold mining as a company really outperformed gold
and the GDXJ as an index as well.
It went from about $0.76 to well over $3 per share.
So a tremendous return for shareholders when we saw price of gold move.
What we've seen during this last cycle is that I think there's still a tremendous runway
here for gold mining in terms of where we sit in terms of value compared to where the price
of gold has moved.
I think when that value gap presents between our share price and the gold price, that's
a great opportunity for investors to come in and try and gain some of those wins as our
stock catches up to the price of gold as well.
Really good point.
I'm going to throw one more question in here and then see if I brought a few panelists up,
see if they have some questions as well to throw into the mix.
And you kind of touched on this a little bit, but what is really happening with global mineral
reserves and gold production that's feeding into this all-time high that we're seeing?
That's a great point.
And in fact, I can say this even myself having worked for the major gold operating companies
is that during times when companies, major companies were focused on returns for shareholders,
a lot of gold companies, their first instinct was to look at the short term at the expense
of the long term.
And what happened during those periods was a lot of the major companies actually slowed
down or stopped exploration.
So the money they were spending to invest in their future, they were deferring or delaying
or simply putting off.
And what that resulted in is really a general inability for the companies to replace reserves
and inability for companies to find more gold, to replenish the portfolio of projects that
come once they were finished the projects they were mining.
And that net impact of over some close to 10 years, I think many of the major operating
companies, their global gold reserves declined by almost 40% during a certain period.
So that would really show that the underinvestment in the future created a greater demand for companies
that held projects.
And that's a perfect example to point to gold mining, where we'd invested in projects
and picked up projects at times that when we were able to, such that the major operating
companies today are looking for projects to fill their pipeline with.
And think about the gold industry.
It's not like a tap where the operating companies can turn on the tap and they can start exploration
and they can have instant results and they can replenish their portfolio or their inventory
of assets to mine.
That can often take years or longer for companies to find something.
So if they haven't kept up with that, they're forced to take the other route, which is an
M&A opportunity, which is to buy your assets or to acquire them or partner with another
company.
And again, that's where gold mining will shine as a company, because the major companies
need to find assets.
They don't have time to find them to replace what they're mining.
They're going to go looking for companies that hold them.
A few of the assets and many of the assets, in fact, that gold mining have are the exact
type of assets the major operating companies will be looking for.
They need these type of assets to put into their portfolios to keep up with what they have
been mining because they have fallen behind with exploration and there's a lag time before
the big companies can catch up with that.
Really appreciate that answer.
And a quick note, by the way, for those that joined in late, we are talking about gold mining
exploration and you should be paying attention because gold is pretty much at all time highs.
You can check out the stock no matter what brokerage you're on.
It's on Robinhood.
It's on all of them.
It's nicely listed.
It's up almost 5% in the past week alone.
So I recommend you go ahead and deep dive in.
There's some good articles on Seeking Alpha that I've been reading through from Gold Panda.
I also pinned a tweet to the top of the space with a link right to the website.
So that's going to be it right there.
Nice and easy.
Just go ahead and check out that link and you can follow along while we're in the space.
And also, in case you're just wondering who's speaking behind the account, we have Alistair
Still, who's the CEO at Gold Mining Inc.
and is also the co-founder and chairman of U.S.
Gold Mining Inc.
And you can check him out on LinkedIn.
So Docs teams, great people.
We're rolling here.
Let's go over to Nick's.
Hey, thanks.
Can you hear me?
I've been having a hard time speaking.
Okay, perfect.
Hi, Alistair.
Nice to meet you.
Thanks for being here and answering all of our questions.
So I have a fun story when it comes to gold.
I used to belong to an investor club.
I still do.
And a lot of us, we were trying to diversify our portfolios.
And when we came across gold, which it was actually someone who was a much more experienced
trader than us, and it was not on our radar whatsoever.
I recognized that I had some stigma attached to trading gold.
I immediately thought that it was connected to unsustainable practices.
But I, so that's something that I always look for when I'm looking into gold companies.
And I just, I want to congratulate you for your recent sustainability report that I saw
on your Twitter X account.
It's pretty amazing.
I've been scrolling through it.
Is there, I'm happy to read it because I'd be proud to read some of this stuff.
But I want, I would love if you could just sort of, you know, maybe summarize some accomplishments
that you guys have, you know, succeeded in this year or last year.
Well, certainly.
Thanks.
Thanks for drawing that to the attention.
And I think I would agree with you.
It's often something that's overlooked and people can focus on, you know, the metal or the industry
and forget about the important things.
And something I've certainly learned having worked and built mines globally is that we
need to, as an industry, embrace and work with our stakeholders, our local communities,
and certainly manage and protect our environment.
I think we can be a sustainable industry.
Let's be honest that not all operators in the past have operated equally.
But I think those who can operate sustainably and responsibly will certainly be an advantage
and working with our communities and getting that social license to operate.
That's something that's certainly very, very keen to me.
And I think that what we have seen with projects globally and where I think people perhaps have
misunderstood mining is that there's often a disconnect between, you know, environmentalism
and mining.
And to me, the two have to go hand in hand.
And in fact, if we are to have a greening of the economy, if we are to reduce, you know,
carbon emissions, that has to come from mining technology.
The copper for the electric cars, the copper that goes into the transmission lines to transmit
power to charge electric cars, the metals for the batteries, the precious metals, the gold
and silver that goes into the technology of those, you know, solar panels or the technology
and the computers that drive those cars, that's all coming from products that are mined.
So I would say let's not shun away from mining.
Let's embrace sustainable mining with responsible companies who attract and want to have a focus
on working with communities because I think it can be a sustainable business, but is an effort
that many companies I think have overlooked and is certainly a core part of my beliefs and fundamentals
as a leader for our company.
It's something I've learned working at operations.
I give a recent example of a project that we're working on right now, an earlier stage project
in Canada, even before we've designed our layout for the technical side, but we've already begun
our consultation process with our First Nations communities and we'll design and work programs
in collaboration with them.
So there are no surprises because we really only get one chance to go into communities
or areas, getting a first impression and being open, honest and transparent as a key part
of our business.
And I think it is very much a fundamental to what we've done.
And I'm glad you flagged our sustainability report.
Last year, we published our inaugural report.
So we put out a second one this year and we've learned a lot ourselves.
We've, we've, we're managing a lot of activities and putting a greater focus.
We do training for all of our employees.
So I think it has to be a key part of our business because I think it is intrinsic value
add for our business.
And I'm glad you brought it forward.
So thanks for bringing that to our attention.
Oh, absolutely.
There's some great things on here.
And I'm a big advocate for, you know, corporate responsibility and ESG efforts.
And just, you know, some quick stats for the audience here.
And if it's okay to hype up your company a little bit, I see here, 44% of your executives
are female, which, I mean, that's amazing.
63% ethically diverse.
100% of your staff is typically within the country from 68% of surrounding communities.
Um, I see you have zero reportable environmental incidents.
Bravo.
That's pretty amazing.
Um, and then you created a program to reduce mercury contamination from artisanal miners.
Like, wow.
I mean, like really, this is a long report.
Like I would definitely suggest, you know, anybody interested, you know, just, it's like
right there on their, on the pin post for their, their ex.
That's, that's amazing.
I know for me personally, that, um, whenever I was researching gold a little bit more,
um, I know that, you know, the demand for gold comes from, um, I believe it's because,
uh, it's, it's resistant to, uh, corrosion and it's just an excellent, you know, um,
conductivity.
It's, uh, I, I know it's just in, in such high demand is like, uh, I, I, from what I
remember, it was high reliability electronics is what I remember it was called or high precision,
um, instruments.
And, you know, with our, um, two areas, I remember researching more was aerospace.
Obviously those are, things are really important.
You don't want to, you know, put yourself in a bad position when you're in space.
And the other one was, uh, nanotechnology.
And so I remember, um, a lot of those conversations of, well, yes, we want to progress as a human
race and, you know, explore and, and do all these amazing things, but not at the expense
of, you know, our planet and our home and, and, you know, making sure that everyone here
is taken care of.
So, um, I appreciate that you've, you know, taken this holistic perspective of, you know,
building your business.
So, you know, bravo for that.
I'm glad I had a moment to sort of, you know, bring to attention that these, these things
can be, you know, considered when you're building a business.
I think that's absolutely right.
And it has to be part of how we conduct ourselves responsibly.
And I think to, to, to follow up on your points is that, of course, by the very name
of our company, Gold Mining Inc., you know, we're certainly are focused on gold, but we have
many important co-product metals that occur with our resources, not least of which is silver.
And we all know the importance of silver as another productive metal in technology space
as well.
And silver has been performing well recently.
We have over 2 million ounces of silver measured, indicated another 4 million inferred.
So not a huge component of our portfolio, but a significant contributor.
But the copper piece, I think is particularly important and, and copper occurs with the gold.
So that's an added benefit to having a gold mine when you can have copper as a co-product.
That's a strategic importance.
And we're working in jurisdictions where either states or, or countries have declared copper
strategic metal and important for economic development, such as in Colombia.
Colombia has declared copper strategic to their, their infrastructure in their future.
And the state of Alaska has declared, you know, copper a strategic metal for their advancement.
I think people recognize the importance of copper into the greening and the decarbonization
of the economy, and we have over 1.2 billion pounds of copper in our resources.
You know, that's a staggering amount of copper that's in measured, indicated categories and
almost half a billion pounds of copper and inferred.
So huge quantities of copper occurring with the gold as a great bonus by-product.
And, you know, on that same thought of decarbonization of the, of, of, of the economy and bringing
on green technology, you know, the one maybe unheralded piece of our, our, our company that
few people know about is actually having a, a uranium project.
And of course, there's very few goals.
I think any country in the world would ever meet in terms of decarbonizing without the
use of nuclear power.
And of course, uranium, a key component of that.
And the uranium is the new green metal of today, the new green energy for the future.
We've seen the success of uranium companies.
We've seen the success of that as an industry.
And few people would know that a company that gold mining actually has a very sizable project
in Alberta, Canada, which is an area they call the Athabasca Basin.
That's, it's home to some of the highest grade uranium deposits on the planet.
We happen to have a deposit there, which we call our Rhea project, which was added into
our portfolio in 2013.
So we've really had it in the background waiting for the right opportunity to advance it, to,
to move it forward and to unlock value.
It's a, it's a huge area.
We have the added benefit there of having a company called Arano, which is a French company,
which has a 25% interest.
They are one of the top three largest nuclear producers or uranium producers in the world.
So it's a great to have a major partner there and really an asset that few people would
expect in a gold mining company.
And we haven't necessarily, you know, tied that in to our sustainability report, but I think
it's all part of that sustainability approach and that movement for a greener economy is
having pieces of a company that can unlock value, not just for our shareholders, but more
towards a sustainable form of mining.
And certainly having a very sizable uranium asset helps us do that as well.
That's amazing.
Thank you so much for, you know, being so generous with answering all of my questions.
I'll, I'll pass the mic over to Kyle.
Hey, Alistair, thanks so much for being here and, and really appreciate the time and thoughtfulness
that you've put into this space.
And, and, uh, it's really interesting to learn.
I've been relatively new as an entrant into the gold and commodities industry.
And, and certainly have a few different verticals and questions I want to get into, but I'll start
with the first one.
And it's really talking about gold mining and I've been brought a few deals as an investor
into some mining operations.
I was just interested to hear your perspective, you know, as an LP, what types of diligence
should I be doing on these types of deals?
Where are some of the risks, risk factors in those types of deals and where's the opportunity?
Yeah, that's a great question.
I think sometimes, uh, you know, investors, uh, can be overwhelmed by looking at what due diligence
they would have to do.
So I think certain specialty fields, it's difficult to conduct, uh, uh, your own level
of due diligence, but I think the fundamentals always apply.
And that is, you know, look at the strength of the company, look at the foundations of it,
look at the quality of the assets themselves, look at the strength of the balance sheet.
I would look at gold mining Inc.
We have no debt.
Uh, so we've kept a very clean balance sheet.
We have a sizable cash holdings.
We had $18 million as of last, uh, quarter end, uh, there was some $160 million in equities.
And those were priced in Canadian dollars as of April 30th.
So a very sizable, uh, um, balance sheet and strength of balance sheet.
That's very positive.
And then look at the assets themselves.
Even if one doesn't know the individual intricacies of each asset, uh, what one can
see is a depth in a portfolio and I think sometimes diversification, uh, at a, in an industry and
certainly at a company level helps de-risk a company.
Um, if a company only has a single asset and they're putting all their eggs in one basket,
you know, developing a gold mine, it's not an easy business.
There's these companies who, you know, can spend, uh, literally billions of dollars in
capital to build a project.
So it's high risk.
There's some higher reward, but I think having diversification in a portfolio, such as a
gold mining Inc, where we have projects around the world helps de-risk the portfolio because
it's not all the eggs in, in, in one basket.
And then of course, I would look at the team behind a company.
And I think there's really, uh, very difficult to find the depth of experience, uh, that we
have at gold mining in terms of our operating team.
Um, and also within our, uh, uh, you know, upper levels of management on our board with
two, uh, two, two chairmen, two co-chairmen who have, uh, you know, decades of experience
leading and building companies and even to build upon that strength, uh, within gold mining
itself, we, we added a, a vice president of exploration, a geologist who I'd worked with
many years ago and part of an acquisition on a project that we'd acquired at Gold Corp for
over $500 million, a project, this geologist was working at in Yukon and Northern Canada.
This geologist stayed on with Newmont, the world's largest gold mining company.
And then I presented a proposal to, to Tim Smith, our VP expiration to come work for gold
mining.
What did he think of that?
When I can recruit from the world's largest gold mining company to have him come work for
a junior company like us, it's not necessarily because I offered him bucket loads of money.
It was because I had a portfolio of assets that we had.
He was excited about, he's the global expert when he comes on and leaves the world's largest
gold mining company to come explore our portfolio.
I think that's a great sign that, you know, the experts believe in what they see.
And, uh, the same can be said about myself.
I mean, that, that was my career literally where I started working for major companies
like Kinross Gold and Placer Dome and Gold Corp at an operating level and working at mines
and running teams at mines and improving and exploring at mines.
And then I got into a corporate M&A space where my job for Gold Corp at Newmont literally
was on a global basis doing M&A activity and evaluating dozens of projects globally to
pick out the good ones, you know, leave the bad ones behind, you know, isolate and try
and create value by, by, uh, reviewing literally dozens of projects globally to find value.
And I think that experience came in very valuable to me and adds value to our company when we
have a background and team backing us that has experience doing these things, we've worked
for the major companies.
So not only do we know what the assets look like, but we also know, you know, how to find
them and how to extract value from them as well.
And then how do you offload a lot of the raw material that you produce?
Do you work with more trading desks or do you work with larger gold storage facilities like
a stone X or something like that?
Or, or how does that process work?
Well, I guess there's two parts of the, of the business.
And I guess if you, if a company is at the operating stage and producing gold, uh, there's
a, there's a mechanism for, for, for selling on the product, taking it to refineries and marketing
And the beauty about gold is that of course, unlike a widget that you have to market and
set a price for yourself, the market is actually set for you in the price, which is the beauty.
And that's why when we see 2350 per ounce, that's the same for anyone in the U S as it's
the same for anyone in Australia.
It's a, it's a global entity and you don't have to market your product because it's a set
price where we extract value at this stage anyway, as we're not in the producing stage
of our minds is we're extracting value by bringing on partnerships and spinning out our
assets and creating value for our shareholders.
And let me give you a couple of examples of things we have done to extract value for
our shareholders.
And it was, uh, just over three years ago now, where we took assets that were within
the gold mining portfolio.
We wrote small royalties on those assets.
We put that into a new vehicle that was called gold royalty corp.
We'd launched that.
On the NYSE, David Garofalo is chairman and president of that company.
We raised $90 million on that company, which was created from royalties within the gold
mining portfolio.
That was really a huge endorsement of assets within their, within our company.
And as a product of that, we ended up with being the largest shareholder in gold royalty
today.
So today we own over 21 million shares of gold royalty corp, and that's a $300 million
market cap company.
So very sizable company.
So we've got, uh, shares in a very large and growing and actually the fastest growing
royalty company in the space.
It's turning a cashflow and positive this year.
So very encouraged by that.
And that we own now 21 million shares in that company was actually directly created by unlocking
value or crystallizing value for our shareholders.
And another example of how we've unlocked value or, or created value for our shareholders.
We did the same thing just over a year ago, where we had a large asset in Alaska, a gold
and copper asset called the Whistler deposit.
And it's about a hundred miles from Anchorage.
We saw the value in that deposit.
We saw the value in growing it.
We put that asset into a new vehicle.
We launched that on the NASDAQ that raised $20 million.
So that project is now a standalone project.
It's got its own separate treasury.
It's exploring.
We're not paying to explore it, but we have retained 80% equity ownership.
So we've crystallized the value of that project on our books with an 80% ownership.
They're funding themselves with their own cash.
So we stand to benefit from any gains they might see from expiration success, M&A activity.
That's, that's what we have, we have locked in value for our shareholders.
So two great examples of how we've actually IPO'd companies and created companies to create
value for our shareholders, crystallized value on our balance sheet.
But the third method or second method with those other two IPOs is that we can actually
form partnerships with other mining companies to unlock value and create value for our shareholders.
And I'll give one example where we had a project in, uh, in Idaho, uh, we called it our
Almaden project.
It's since been renamed Nutmeg Mountain.
Um, we optioned that to a company who was exploring nearby.
So they had a local team, they had expertise for us.
It was less than 3% of our resource.
So not a material project for us, but we found a partner who was able to execute a transaction
with us, uh, with a 16 and a half million dollar price tag on an asset we'd acquired two years
earlier for just over $1.1 million.
So a great immediate return, our, our investment today, uh, they're exploring the property.
They're using their capital.
So we don't have to dilute or raise cash for ourselves to fund it.
And we've retained 28% ownership interest.
So we've, you know, created value there.
We've crystallized that property into an equity holding on our, our balance sheet, which we
can now stand to benefit from as they use their cash to advance it further and try and
make additional exploration discoveries.
Great.
Thank you so much for that long answer and detailed explanation.
This is all really helpful.
Um, the last question I have before I pass it over to Kayla is, could you just talk about
the impact of the current market on your business?
Like I know that, that both in terms of gold's price and how that impacts the company, as well
as the general kind of macroeconomic factors and what that means for, for, for gold mining
and for this operation?
Well, I think, uh, there, there's two ways to look at this and I'll try and break the
question into two parts.
And one thing, again, I'll emphasize that gold mining Inc as we're not operating right
now, we don't have the same exposure to inflationary pressures, uh, capital cost increases that many
of the developers and operators have been experiencing.
So many of the companies have actually had their profits eroded by inflationary pressures.
We're fortunate that we're not at, uh, at those major, uh, capital expenditure points.
So we have not seen inflation impacting our, our bottom line or ability to explore and advance
further.
So that for one is positive.
The second part of that, of course, uh, goes to, you know, gold price.
We, we, we, of course, uh, you know, benefit from a stronger gold price, you know, as the
gold price rises, the value of our assets, uh, goes higher.
Uh, while we can't always predict, uh, the price will continue to rise.
I think the fundamentals are there for it.
And when I mentioned earlier, you know, many of our resources are calculated average gold
prices of close to $1,600 per ounce, uh, or $1,700 per ounce, in some cases, even lower.
And we see current prices closer to 2,300 or touching on $2,400 per ounce.
There's, there's a tremendous value, uh, uptick there and value increase that is yet to come
into our stock.
And I think as we advance our projects, as we gain more confidence in them, as we move
them closer to development and production, uh, the greater the opportunity for the market
to recognize that value apply to our project.
Because I think largely right now, many companies have stayed under the radar and they've weathered
the storm of the high inflationary environments.
Now, companies such as ours, Gold Mining Inc., are really set to benefit by that higher
metal price as we unlock value further for our shareholders.
Awesome.
Thanks so much.
Really, really appreciate it.
Kayla, see you get your hand up and I'm making you wait.
Thanks for your questions.
Appreciate it, Kyle.
So, yeah, they've asked so many good questions, but where my interest always lies with like mining
specifically is the land.
I find that to be the most fascinating part.
And, um, I think there's a misconception, like we can't mine gold because it's all been
mined.
I, I, I think that I tend to think that.
So I was looking at your paper and it looks like the last, like the last date I found was
like 2012 when you guys started mining.
I'm curious, like, what does that look like?
Are there, is there places to just keep mining and are you guys looking for those places or what
does that look like?
No, absolutely.
And I think, um, one of the comments earlier about, you know, one could argue that maybe
the easy gold has been found.
And of course, easy stuff is closest to civilization or communities or cities.
And many of those deposits have been found.
Uh, so gold is getting harder and harder to find.
There's no doubt about that.
Um, but two things help with that front.
One is technology.
There's a lot of new technology.
There's a non-intrusive methods such as geophysics where it's, uh, with magnetics or with current
or gravity of the rocks.
You know, the geologists are developing a whole new arsenal of, uh, techniques and technologies
that can help, uh, scan deeper, uh, into the earth to look for deposits, to look for, for
different occurrences of gold.
And I think that's, uh, very important.
And remember when we, we, we think about gold and I think back to some of my days when I
was working, uh, underground mines in Ontario, for example, in Northern Canada, we, we would
go down over 7,000 feet underground to go to work every day.
Um, and you can imagine trying to find something at surface that's maybe five feet wide in the
vein of gold and 7,000 feet underground.
How, how on earth would you find that?
So the technology is very much a key, uh, aspect of trying to find new things.
Um, but for our company in particular is, you know, we have the resources, we've identified
the resources.
And so we've done that hard lifting part.
So really now it's about taking those resources and moving them forward.
I think as an industry, the deposits are getting harder to find.
There certainly are areas that are still untested and have exploration potential.
Um, and that's, that's exciting to see, but I think technology plays a key role in, in where
companies look, uh, look next.
And certainly with experience myself working for major operating companies and our VP of
exploration has just come over from the world's largest gold mining company, Newmont.
Uh, technology is something, certainly something that we've, uh, become accustomed to and very
much will use to our advantage to help find, uh, the next, uh, stage of deposits as well.
I didn't even think about that, you know, like, um, 20, you know, a hundred years ago, they're
probably like, we found all the gold we can't find anymore.
Uh, and, and just like, as more tech comes out, you know, surprise, surprise.
Yeah, absolutely.
And I think that was, uh, you know, certainly the, you know, various generations.
And then we look at where deposits have been found.
And I look at Nevada where most of the gold mining in the United States comes from these
days.
And, you know, Nevada is the silver state.
And yet for decades now, it's been the gold state, uh, it was based on silver, uh, largely
for a number of years.
And then with the Carlin deposits that were found and a boom of exploration and development
largely in the 1980s, uh, that's put Nevada back on the map.
That's a global player in the gold space.
So, uh, you know, right here, even in the continental U S, uh, significant deposits can still
be found.
There's been a recent staking rush in Idaho.
There was a discovery made, uh, last year by a company.
And fortunately for, for gold mining Inc, we've got exposure with a 20%, 28% ownership
interest in a company called Nev gold, which is exploring in Idaho.
So discoveries still are being made and, uh, moving forward.
And another interesting element of gold, which some people don't always think about is that
gold is often associated with other metals when it occurs in the earth and various types
of deposits.
And if we look at technology, um, and where other metals may be required, I think gold
itself has its own intrinsic values, but when it occurs with other metals, such as occurring
with copper, that gives another reason to make gold deposits, perhaps more advantageous,
more economical today.
When copper has seemed to recently been approaching near $5 per pound, gold mining Inc has a number
of deposits that have copper with the gold.
And I think it's those by-products and co-products with gold that can add extra value than have,
uh, new eyes casting on perhaps areas that may have been overlooked in the past when they
were only considering it for gold.
But now that you add copper into the mix as well, uh, I think that's another interesting
element that can add, uh, some newfound value to certain deposits in certain areas.
Yeah, no, it's crazy.
And, um, it's just interesting to think that somebody could still have land with gold on
it, you know, it's, it's far-fetched, but possible.
And I, I really don't think that way about gold.
So this is a very real insight into that.
Well, and it's also, uh, many, many deposits and people, you know, don't realize this is
that, uh, I've worked at operations myself, which, uh, uh, I've had, you know, a couple
of years of reserves ahead of them and, uh, I look back at some of these operations and
30 years later, they're still going.
So it's all about discovering new deposits, discovering, uh, new occurrences of gold where
perhaps people had overlooked it.
And, uh, I, I, I once gave an analogy, um, the type of deposit some people were, you know,
were looking at is, you know, if you stood on top of, uh, one of the world's tallest
buildings and I had to Canadians at a site a few years ago and said, if you stood on top
of the CN tower in Toronto, which at the time was the tallest building in the world.
And you, you tried to stretch a piece of spaghetti down to the bottom and tried to hit a car down
below, uh, it would be pretty daunting task.
And sometimes that's the size of these deposits that were being looked for.
So the new technology that helped with that, the ability to look deeper into the earth and
the occurrence of extra metals really, uh, brought new areas for exploration onto the plate
and certainly is serving, uh, serving industry and, uh, and the mining for, uh, economic reasons,
but also for environmental reasons as well, for many of the products that we require, not
just for our day-to-day lives, but certainly for the decarbonization of the economy as well.
Really good questions here.
We've got about 10 minutes left on the space, uh, one more time, because a couple of people
messaged, messaged me saying they couldn't find us.
The info that you are looking for, if you want to dive a little bit deeper here is pinned
to the top of the space.
There's only one post up there to scroll to the top.
It's pinned up there.
And you can just go to Google and just type in G L D G, put that little ticker symbol in
front of it.
And you should be able to pretty easily find it, uh, and a bunch of articles and other items
and things along those lines.
So just wanted to make that as easy as possible for anybody that is looking through.
And if you do have other questions, feel free to DM me directly as well.
And I can take those there.
I have a question from, you know, a shareholder perspective.
What can shareholders expect going forward with gold mining?
Is it continued growth, strategic partnerships?
What else should they be looking forward to?
I would say there's a couple of key, uh, catalysts coming up for us.
There's some exciting developments coming within, within the company.
Um, we have a couple of projects which we're advancing.
To move into the next stage of development and exploration.
One of which is our uranium project in, uh, in Alberta.
And that's a project that we are beginning the process now of engaging with our local stakeholders
and communities to, to get permitted, to get, uh, um, boots on the ground this summer.
And there's a project where, you know, we look at, uh, uranium exploration companies that are, you can see companies in the area.
We're exploring 50, a hundred million dollar market cap companies with smaller land packages than we have.
And here we have a project in our portfolio, largely unrecognized.
So it's all about us, uh, bringing that project to the attention of others.
And two things will likely happen there.
One of which is that a larger company will come in, maybe make a proposal, uh, maybe want to partner with us.
Maybe want to acquire it.
That'd be great.
That occurs.
But if it doesn't, we continue to move it ourselves, we can IPO it and launch that project ourselves and potentially create value.
So lots of opportunity to create value from a uranium asset, but in the nearer term, we also have a project in, in Brazil, which we're, uh, we're, we've advanced exploration plans on, uh, we've been seeing, uh, drilling.
We plan to drill that project in 2024 and drill results on a project like that, uh, to our San George project.
Can have a real and meaningful impact.
Uh, it's a deposit, which is close to the highway.
So we're within about, uh, within a mile, uh, of paved road.
So it's easy access.
We have a camp there.
We have a Brazilian based exploration team of locals.
We're very knowledgeable about the area and know the local rocks and know the local communities.
So we're working with them to initiate further exploration work on our project, uh, in, in Brazil at San George.
So that's just two projects, uh, within our portfolio.
And of course I should point out also that, uh, one of our companies we spun out a year ago, uh, U S gold mining Inc, which is U S G O on NASDAQ.
Uh, and we own 80% of that company.
Uh, that company has just announced plans, uh, within this week to start a drill program, um, in the coming weeks for the summer.
Uh, they're spending, uh, their money, which they've raised on the market.
So it's no dilution to us.
Uh, we stand to benefit from the exploration there at the Whistler project in Alaska.
And this is a project that has had tremendous, uh, expiration success over the last, uh, uh, over the last year.
They've, they've drilled some tremendous holes.
They've had, uh, you know, a deposit there.
It's of a size and configuration that, you know, many of the major companies are exactly what they're looking for.
And in fact, they put out a drill hole, uh, earlier this year, which, uh, was really quite shocking to a number of people.
So it turned heads, it was something that, uh, was at the time, the highest grade, uh, interval of continuous mineralization, uh, ever drilled in the history of the project and, uh, a drill hole of that nature, which drilled, it was, uh, it was over 547 meters.
So half a kilometer long, the grade over one gram per ton gold equivalent occurring just about at surface.
So a tremendous drill result, uh, that company, U.S. Gold Mining, which we have 80% of again, just getting ready to go back to the field this summer in Alaska.
So very excited about that deposit, uh, as well in that drilling.
And that's another great catalyst on the horizon for Gold Mining Inc. as well.
Really appreciate that answer there.
We are getting there.
I think, uh, everybody, if you've had questions, hopefully they've been answered by this point.
For people that do have further questions, they want to do more due diligence into this, get them answered.
How do you recommend they go about doing that?
Ah, absolutely.
There's a website, easy to get to www.goldmining.com.
Feel free to, uh, reach out there.
There's a newsletter people can sign up for.
We can send, uh, news releases as they come out in real time, uh, or reach out to us, uh, through the link on that site, um, to send us, uh, an email or on your Twitter account or on our X account, excuse me,
or on Instagram, whoever your favorite, uh, method of tech or communication is reach out and we can answer any direct questions, uh, happily as well.
And I almost forgot to bring it back up because you mentioned the beginning, but what else are you focused on in that world of uranium?
You did briefly mention the uranium property.
Yeah, no, as I say, we, we have a co-chairman who has founded two uranium companies, uranium energy corp and uranium royalty corp.
So we've got a lot of expertise on our board and few people realize we have this uranium property in Alberta, the Rhea project.
It's 125,000 hectares, uh, which is over 300,000 acres.
It's a huge land area, some great exploration potential.
We have a Rano, the third largest, uh, uranium producer in the world as a partner.
Um, there's a project we're advancing plans to be exploring on this year and something we've had since 2013.
It's probably underappreciated in our portfolio.
Uh, not a lot of people are aware of it.
And it's a little surprising with a company called gold mining.
We still have some of these, uh, real treats in there, some bonus, uh, projects that can unlock some significant value for our shareholders.
Beautiful.
And then kind of to wrap everything together here, do you have any other closing remarks, comments about the company that you'd like to leave people off with?
Yeah, absolutely.
I mean, maybe just as a, as a closing, um, comment is that, uh, I don't think the run in price of gold is finished yet.
I still think there's significant gains to be made in, in, in gold price.
And I think traditionally gold mining has had tremendous leverage, the price of gold.
We've outperformed the GD, uh, GDXJ.
We've outperformed the price of gold in the past when the gold prices moved.
So I think there's a tremendous opportunity there.
It's a company backed with a very strong, uh, financial foundation with cash and equities in the balance sheet, a diverse portfolio of projects in the Americas and, and a management team with decades of experience, second to none.
So I think you add up all those pieces with a bright future ahead of gold, gold mining is a great place to, uh, to consider investing.
Super cool.
Well, big thank you here to Alistair for coming on and sharing with us, answering all of our questions.
We had some great ones from the panel, uh, that all the panelists that were coming here and throwing questions in not preplanned either.
Um, just ask some of my friends that are, you know, analysts and people that really like to dig in to companies to come up and play a part in this.
Again, you can find more information just by going into the top.
It's GLDG.
You can follow the account that is up here, the gold mining account for further.
And there's so much more to come here.
You know, there's only so much that you can cover in a one hour space.
From what I found, the gold mining exploration business is pretty extensive.
Uh, from what I've seen, I've even been out there, like I said, into Nevada in person to look at it.
And this has really been several months of deep diving in a learning process for me to get my understanding of how to evaluate companies against each other, looking at the financials, right?
Deep diving into this, just taking everything to that next level.
So big thank you to yourself.
Also, a huge thank you to Nick's, who's been on here.
Kyle, who was asking great questions.
Kayla, Austin, who we've hanging out with us.
Austin, do you have any other comments?
Checking, checking?
No worries if not.
All right.
Then I will give a big thank you.
Alistair, thank you so much for coming on.
Hopefully we get to chat with you again in the near future.
Thanks for having me here.
My pleasure.
Look forward to speaking again soon.
All right.
Take care, everybody in the audience.
That is the last space today for me.
I will have one space tomorrow.
It's going to be at 3 p.m. Eastern.
That's not true.
I'm going to have two spaces tomorrow.
Three spaces.
Okay.
All right.
They're adding up.
I'm going to have three spaces tomorrow.
12 p.m. Eastern.
The Trifecta.
Myself, George from Cryptos R Us, and Moby Media coming at you with top news of the week covering the Ethereum approval.
We'll have a 3 p.m. space with SoFi covering the THTA ETF, and we'll have a 5 p.m. space with our favorite sports bets for the weekend coming up tomorrow.
Thanks again, everyone, for tuning in tonight.
GLDG, you heard it here first.
We'll talk to you all soon.
Have a great evening.
We'll talk to you all soon.
