i have 2 juniors that are up 10% today , they are both takeover candidates one i mentioned the other day chpgf
President’s Letter (CKG)
During the first half of 2019, the market sentiment towards precious metals continued bearish. As the year progressed, however, gold rallied above technical resistance levels to US$1,565 an ounce. To date, Chesapeake’s share price is up 45% this year while gold is up 13% and the GDX and GDXJ are higher by 25% and 22%. Gold appears resilient against the headwinds of record high stock indices and a strong US dollar. Globally, decreasing real interest rates, geopolitical uncertainty and macro stress benefit gold. As well, since 2010 central banks continue to be buyers of gold instead of sellers. Central banks see gold as an alternative to paper reserves. The fundamentals of strong demand and limited supply suggest a higher equilibrium price for gold. Currently, we hold the view that gold is at a midterm price of a bull market cycle. After a prolonged bear cycle for precious metals, gold seems to be pivoting in the US$1,500 range - still far from the highs of 2011. The bear market handicapped exploration budgets with nearly a decade having passed since a major gold discovery of over 15 million ounces. The gold industry’s tight supply outlook is further compounded by social license and permitting issues taking upwards of 20 years from discovery to first commercial pour. With few global discoveries, miners are challenged with declining production and reserves. Primary silver miners produce about 26% of the world silver production. Most of the silver production is a by-product from polymetallic mines. As investor sentiment strengthens towards silver, unlike gold, few pure silver companies exist. As well, many silver miners operate underground mines with relatively short mine lives. In addition to hosting over 18 million ounces of gold, Metates has 526 million ounces of silver reserves which ranks as one of the top five deposits globally. In production, Metates will be a world class, open pit operation with a 30 year mine life. Chesapeake’s strategic vision is that focused exploration creates shareholder value. During the past three years, grassroots exploration has developed an impressive organic pipeline of satellite projects that could capitalize on Metates large industrial complex and infrastructure. This year, regional reconnaissance on the southeastern flank of Metates discovered two district scale prospects, Crisy and San Javier, hosting high grade gold and silver mineralization. Crisy and San Javier are large hydrothermal vein and disseminated systems within intensely altered corridors several kilometers long. We believe ongoing systematic exploration in this region could lead to a major discovery that would have a dramatic positive impact on Metates future production profile. Even with gold hovering near US$1,500 an ounce, the capital markets for the most part are not funding junior exploration companies. In August, a strategic investor, Eric Sprott along with our largest institutional investor, Sun Valley Gold Fund, invested $15 million in Chesapeake. The market responded very positively to the financing recognizing the investment confidence. Chesapeake has a strong treasury and well positioned to take advantage of an improving outlook for gold. As always, I thank our shareholders, both large and small, for your support and trust. We look forward to an exciting year ahead. CHESAPEAKE GOLD
dharma
nem bought 9%
feds balance sheet https://kingworldnew...19-1024x634.jpg
Edited by dharma, 04 December 2019 - 03:25 PM.
