John Newell: We Stand Near the Edge of the Precipice for a Terrific Move for Gold
John discusses the large six-year base that formed after gold reached $1900, which we finally overcame when we passed $1370. His current target for gold is $1690, which could happen quite quickly, and his best case for gold in this move is $2465. We could be on the precipice of a massive move.
John has found excellent returns with his portfolio by looking for particular stocks and themes in the market. In a general sense, the XAU index has vastly underperformed, but over its history, there have been some tremendous opportunities. Crypto and cannabis have taken money out of the sector, but he remains focused on the juniors.
He screens over 2500 companies and all of the indexes while looking for specific themes like expanding assets, mergers, takeovers, and property acquisitions. There are also earned successes from companies, which he calls the three E’s; expanding assets, earnings, and exploration success. It’s a very individual decision about when to trade or sell companies. Every company has a different outlook, and he looks at each separately.
He likes to watch the Dow Jones Gold Index because it has a different makeup, and it is currently outperforming surpassing it’s 2015 highs. As a group, the juniors are lagging behind gold, and investors continue to need the patience to hold on.
He is President and CEO of Luckystrike Resources Ltd in the Yukon, and they are seeking a multi-million-ounce deposit and desire to monetize those assets in the next six years. They are focused on creating wealth for shareholders in a world-class mining jurisdiction. Exploration is the lifeblood of the mining business, and his objective is to build a very experienced team.
Time Stamp References:
0:40 – Gold price and his targets.
3:10 – Pressure on junior miners.
6:20 – Renovation stories in the space.
10:30 – Staying disciplined and taking profits.
14:25 – Juniors are lagging, investors need patience.
15:20 – New project being built in the Yukon.
Talking Points From This Week’s Episode
• John remains quite bullish on gold.
• Juniors overall continue to lag and require patience.
• There are opportunities if you’re selective.
• His new project in the Yukon.
John Newell is President, CEO, and Director for Luckystrike Resources Ltd and is Portfolio Manager for Fieldhouse Capital Management. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager, and investment advisor. He has worked with some of the largest investment firms in Canada as a branch manager., including Scotia McLeod, CIBC Wood Gundy, and RBC Capital Markets.
John is a mineral exploration and development entrepreneur with over 18 years of exploration, development and mining finance experience, raising over $500 Million in capital for some of the most successful exploration teams and mid-cap producers. John also has a regular column in many publications and has several years of experience working with a network of professionals in the mining sector, as well as a broad network of retail to institutional investors that follow his work through the strategic phase of a company’s growth of prospects in precious metals.
Specializing in precious metal equities and commodities, John follows a disciplined proprietary approach incorporating equity research, analytical frameworks, and risk controls to evaluate and select long and short stocks primarily from the Canadian small and mid-cap coverage.