LIVE: Gold Price HIGH, Drones, Jobs & Mining News! | Kai Hoffmann
Summary
Market Outlook: The S&P 500 has reached its 25th record high this year, driven by expectations of potential Fed rate cuts, with discussions around whether these cuts could be up to three by year-end.
Gold and Precious Metals: Gold prices are at all-time highs, with significant inflows into gold ETFs; silver is also experiencing a breakout, reflecting strong momentum in the precious metals market.
Economic Data: Recent macroeconomic data includes a significant revision of non-farm payrolls, with a loss of 911,000 jobs, raising questions about the true state of the economy and its impact on unemployment rates.
Inflation and Fed Policy: CPI and PPI data suggest that inflation pressures are easing, potentially supporting the case for Fed rate cuts, with the market closely watching upcoming Fed communications for guidance.
Geopolitical Concerns: Tensions are highlighted by Russia's drone activity in Poland, impacting gold prices due to geopolitical risk sensitivity.
Mining Sector Insights: The Precious Metal Summit in Beaver Creek revealed a euphoric sentiment in the mining sector, with discussions on adjusting to new price floors for gold and silver, and the impact of higher valuations on mining projects.
Mergers and Acquisitions: Significant M&A activity includes Tether's investment in Elemental Altos Royalties and the Anglo-American and Tech merger, indicating a focus on copper and strategic positioning in the mining industry.
Investment Opportunities: The podcast emphasizes the importance of adjusting investment strategies to account for higher precious metal prices and the potential for undervalued opportunities in the mining sector.
Transcript
Good morning from Colorado. Good morning from Beaver Creek. My name is Kaihoff and I'm the at Jr Mining guy over on X and of course your host of this YouTube channel, Sore Financially. Thanks so much for joining us for a live weekly wrap-up show here from from my hotel room in Colorado. I've been attending the precious metal summit in Beaver Creek over the last three and a half days and uh we have lots to discuss. S&P 500 25th record high just being marked today. Gold is putting in a fourth executive gain or fourth week of gains in as well, trading at record high levels. And we have lots of macro data to discuss of course as well. Uh you've all probably seen jobs revisions, we've got CPI data, we got PPI data, producer price index. Um but also we got some news on the geopolitical front. Lot lots going on. Um Russia flying drones into Poland. What is that all about? Um lot lots to discuss in in that regard. If you have any questions, this is live. Please feel free to use the chat uh or the chat yeah the chat box. Uh I'll do my very best to answer those questions uh dur during this live stream here. We have lots of topics prepared of course. Um most most importantly I do want to share my impressions about what is happening in the mining space. Uh sentiment was absolutely fantastic here in Beaver Creek. But I'll get to some of those insights here shortly after we've taken a bit of a look at the macro landscape here that has been presented or some of the macro data that has been presented to us. Um but first let's take a look at the week in review. I'm going to share my screen here in just a second. Um going to share just all the data that we've gotten. Um let me add that to the screen. All prepared. Economic calendar. Let's go. Um uh so lot lots of data that was dumped on us this week that we had to digest. Non-farm payrolls annual revision PPI core inflation data and inflation rate. And uh I haven't seen yet the Michigan consumer sentiment that's coming out here any minute now. But uh most importantly jobs report and inflation as the Fed is basing its decisions on on those data points which are of course all lagging and the annual revision is a year old and it's for up to March 2025. But uh let's take a closer look at that because it was humongous a revision. We have seen a revision of 911,000 jobs. Absolutely insane if you ask me. Um I'm not sure how that is being reflected overall in um in in the unemployment rate because we got the revision of 911,000 jobs and you can see that here. Uh where where did they go? A they completely disappeared. Of course we've discussed on the program BLS data as all a bit fishy and dodgy. It doesn't make a whole lot of sense uh that that we're getting. Uh you know somebody registers a new business the BLS assumes that seven new jobs are being created. But let's assume you're an only fans creator. I don't think you'll hire seven people to help you out with your uh with your gig. So, hence gig economy. But one thing that's puzzling to me personally is that the unemployment rate stayed unchanged. Still 4.3% despite almost a million jobs that have been lost. That's something uh I need to investigate a little bit here over the coming days to understand. But maybe you have an idea. Put that down in the chat or in the comments down below after if you watch the review. Uh but but let me know like why hasn't the unemployment rate changed if we've lost 911,000 jobs. Ma massive jobs lost. Um maybe we can take just a quick look uh at where where did those jobs get lost. Leisure and hospitality 176,000 jobs right here. Uh professional business services, maybe those are the only fan creators, you know, professional services. Not sure. Uh retail trade, another 126,000. If you walk through a mall here in Colorado, it is a disaster. It is dead. Uh, so I I understand that part. Uh, wholesale trade, I don't have a Costco membership anymore, so I'm not sure what it looks like in uh in the stores and I'm sure it's not the Costco number in general um that that we're looking at, but those revisions um just paint an overall trend that some of our guests here on the channel or a picture have been painting here on the channel that the underlying economy is not as great as the the jobs reports and other data points suggest and this is now being flushed to the surface. Uh this is something now that we're looking at. So um hey Jason, thanks for joining us. Much appreciate the comment. Hope everybody can hear me. Okay. Um I haven't seen any complaints yet, so I think we should be good. Uh but so that that's the non-farm payrolls revision. Um which is, you know, key because the Fed seems to be focused very much on unemployment because we're going to take a look now at the CPI and the PPI real quick. Uh you've all seen the releases this week. Uh let's share this tab real quick. 2.9% yearly change. Uh as expected, tariffs are starting to trickle through. We have seen 2.3% in April, but have been ticking up. Of course, what happened in April, liberation day happened, broad broader range of of tariffs have been announced, and they're starting to seep through. As I said last week, we're still waiting on a big tariff deal between the US and China. Uh haven't heard much this week about it. Admittedly, I was also sitting in meetings all week. Uh so I haven't had a chance to investigate. Uh couple things that are of course interesting food a faster pace for food uh that has increased new vehicles and used vehicle prices have gone up. Uh that that is an interesting um that is an interesting sector probably all tariff related as we have to import more steel and other things that are heavily tariffed. Uh gasoline prices are still lower. Uh fuel oil of course as well. wonder what happens when oil prices start to rise because that current level um based on what's happening on the geopolitical front is it's almost unbelievable. I'm sitting here in the US looking at 350 a gallon of gas, sometimes even cheaper. I think I've seen 243 when I was up in Idaho. I might might have been wrong, but that number stuck in my head. That's an insanely cheap gas price. Uh insanely cheap. And uh we we'll have to see if that continues. I've been calling cheap gas price QE for the people here in the past as well. Um, one lesser, you know, focused on uh what do you call it indicator is also the producer price inflation. Uh, that's one we got to take a look at as well because it also cements uh that the Fed might be right about cutting here because producer prices are falling. Uh, let's just zoom in here a little bit if just a little bit so you can see that better. But market actually expected.3% increase but we've gotten.1% decrease in producer prices. Again cementing uh that the Fed it might be on the right path or cutting at least once. We can all discuss what it means uh cutting just once what the impact is. I think the press conference is way more important than uh uh what we're seeing maybe as a as hard data being presented to us in form of a press release. We will have to listen to Jurham Powell on Wednesday uh to to see where is he putting the nuance where where is he setting the commas and what should we be paying especially attention to in in in his speech here. Uh we'll be hosting a live uh live stream again on Wednesday. I'll be joined by Lobo Tiger. Really looking forward to discussing uh the the latest from uh from the Fed here. Of course we'll be discussing his his his views on on on potential rate cuts. Are we getting a jumbo cut? will will be interesting to see. Um but a lot lots of data is pointing 100% at one cut. Let's take a quick look here at um just a Fed rate cut expectations. Let me bring that up on screen here, which is always interesting. U 92.5% one cut. If you go through the months, we got three more Fed meetings this week. There could be up to three cuts this week or this this year uh this year alone. Uh, I'm really curious what again it really comes down to messaging because if we're expecting three rate cuts this year or the market is expecting three rate cuts this year, how is that being messaged? Because if I was a a consumer or an investor or even a potential house buyer, I'd wait till December or even January to do anything if I know that rates might be coming down. Not sure how that will be reflected in mortgage rates. We got we can take a look at the the 20 and 30-year bond deals here uh in in a in a short second. But deflation is is sort of the buzzword or the the the term I keep coming back to because it is in the messaging and what what Jerome Pal says like why would you buy a house now after 25 basis points if you can get a cheaper price meaning a cheaper mortgage later on. That's the pure definition of deflation for me. Um Zion really appreciate the comment. Thank you so much. Uh we'll take a look at gold and silver here in a second. Um just just running through some of the macro data that we have seen here. Um US budget uh also really really interesting. We got some data here as well. We the US House also approved a defense policy bill uh approving a $900 billion budget uh for the defense department or the department of war. Let's share this one um real quick. So, it's the National Defense Authorization Act authorizing nearly $900 billion in military spending and feature plan featuring a plan to streamline defense acquisition processes. We'll see where that goes. It was voted as as expected along party lines. So, that's the defense budget, Department of War, it is called now. I'm not sure if that all actually goes to the Department of War, but $900 billion in spending. And then uh we also have Oh, I have this lined up here. I need to find that real quick because we have gotten a uh an an update from the CBO, the Congressional Budget Office on the US deficit. Uh so far, first 11 months of the financial US financial year, the deficit has now risen to two billion uh two trillion dollars, not billion, apologies. Um in in that uh in that space of of 11 months, higher Medicare costs have pushed higher. But one one thing that a lot of outlets have noted are that the tariffs are starting to make an impact that the the budget or the budget uh spend is decreasing. And uh let me just pull that up here real quick. CBO August budget. Just want to show that to you because I think it is an important uh tidbit uh of information that we have gotten uh because the tariffs seem to be having an impact but just just a minor one. Uh where is it just came out this morning. Let me just find this real quick. I had it lined up, but uh August budget baseline 3 days ago. Three days ago. Let's let's use this one. Let's use the official congressional budget office. So the total deficit um let's share this tab here real quick. Uh cumulative monthly deficits. You can see this. I think we're on seasonal trend. But uh the interesting part of here of course is the federal budget deficit total $2 trillion. uh 29 billion more than the deficit recording during the same period last year. So we're we're above that. Um revenues increase 299 billion uh but outlays also rose but uh increases at least outpaced um outlays. So it's that's an interesting tidbit. The tariffs are having a very slight impact not enough to to make any difference whatsoever to to what we're seeing. So in terms of budget deficit discussions of course and of course this won't have an impact on any of the Fed decisions. Uh, one other thing that we need to discuss is of course geopolitics. Uh, R Russ Russia flew drones into Poland this week. Um, your guess is as good as mine probably as as to why. Were they just testing um the NATO defense strategies? Were they testing whether NATO would come together and actually huddle up uh against Russia? Really interesting case because Poland invoked I think it was article four of the NATO act asking for for help. uh Germany and many others came to the help German uh Patriot missiles I think it was German Patriots was it uh just scroll down here else well it doesn't really matter whatever missiles are called but Germany's missiles were involved Dutch F-35s and many others it's an interesting thing we we need to monitor because the gold press is very sensitive to geopolitical factors or measure uh yeah impacts um so we we have to watch this very very closely what is happening here uh deescalation of course is highly recomd recommended when it comes to this. So, uh, so yeah, I think we laid out the macro a lot of macro topics this week. Sort of my thoughts on on those. We talked jobs revisions, PBI, CPI, of course, quick look at the US budget for August 2025 from the CBO, the Congressional Budget Office, and geopolitics, of course, the NATO incident dominating headlines this week. Um, let's take a quick look at the markets. I mentioned it in my intro. The S&P 500 has hit another um, high. um the 25th high for this year. Let me share this tab. Uh so you can see this 6591 all in anticipation of Fed rate cuts. Question though, what is priced in? Is it just 25 uh basis points? Is it 50 basis points? Is it that jumbo cut that Chris Waller sod suggested that really sent our sector and sent markets flying? S&P 500 and gold in general. So we we'll have to see quite honestly um what what is priced in. It is it is an interesting factor um that we have to see at the S&P 500. It's in insane levels we keep running away. Dave Dave Hunter I had on the program here yesterday. He mentioned we're in that blow of top 7,000 points 7,500 points are absolutely possible right now. Uh again messaging what what is Jerome Powell going to say? Uh are we going to see QE again? Is QT done? Are they done tightening? We'll have to see. So um a lot of nuance, a lot of importance being put on the Fed meeting this week that is happening in 5 days time. Um let's take a look at the bond yields as well as as we speak here. Uh let me pull up just a 10-year real quick. And um that's the 10-year. It has been dropping in anticipation of those rate cuts. Everybody's trying to lock in higher rates before rates potentially go down and yields might be dropping along those lines as well. uh 10-year uh down to 406 uh the three the two-year which is of course an important measure as well. I mean we can we can pull that up uh or I can take a quick look at the two-year um here as well. Let's see. Let's take a quick look at the 2-year. It is 3.56 if I'm not mistaken. Um bonds United States. Let's take a look. And the 2-year is at 356. As I said, I looked that up earlier. So no, no change there. But David Hunter has also mentioned that the bond yields uh especially for the 10 years should be coming down much much more. He's predicting a bond market in in US government bonds. 2.5% yield uh very much possible here. So that's I think the trend we're seeing. People are locking in those higher yields until we have more certainty on what the Fed is going to do here. Um suggestions are of course that the Fed should be cutting all the way down to the 2-year yield level which is 3.56%. Not sure if you agree. Um do you actually agree should the Fed cut? really curious. Put that in the chat. I do want to hear from you. It is a controversial topic. We had Sri Kumar, Dr. Sri Kumar here on over the weekend as well and he he he advocated for rate hikes uh because he doesn't believe that inflation is tamed yet and the unemployment side isn't worrying too much for him. So, what what do you think? If you're watching here on YouTube, put that in the chat. I do want to hear from you. That that'd be interesting and uh really appreciate that. Let's get some some action going here. Uh S&P 500, I've shown you we looked at bond yields. I think we need to take a look at gold now. We definitely have to take a look at gold. Um, this gold chart is phenomenal. Uh, gold is rallying. We are seeing inflows in gold in gold ETFs that has been driving the gold price higher. 3651 as we speak. 3652 as we speak here. And uh, it's it is running. This is an all-time high yet again. Let's let's zoom in here just a little bit. And the rally in recent days, ever since, you know, the the Jackson Hole meeting, we are up what is it now? over $200 or exactly $200 since the speech in Jackson Hole here on August 22nd. Uh let's see here. August 21st. Let's see. 3352. We're exactly up or $300. My math is wrong. $300 since that. That's an insane move for the precious metal. Uh let's hope it's not overhyped, but we are seeing ETF inflows supporting the move. Uh generalists are waking up trying to hedge their bets in the main markets with gold and we're seeing that right now. Is silver following? Let's take a look. Silver is following. Let's take a look at this beauty of a chart. Um $42.3. We have broken out over $42. That used to be a massive um a massive resistance. I'm not a technical analyst and you can't even see it in my charts here. Um let's let's be honest. Um let's bring this back down together. Let's take a look here. But also, silver has broken out. Uh what what is the next stop? Is it $50? Your guess is as good as mine. We we'll have to see. Um what what silver does of course positive momentum. Momentum is the key buzz word here in gold and silver. We're seeing lots of it and silver with a breakout over 42 is having that eight 1.8% uh plus this morning. This morning alone is is a massive indicator that silver is catching up and breaking out. Silver stocks are catching massive bids uh here as well. Valuations are running high or yeah running high. It's actually a good segue. We'll talk about some of my impressions from the precious metal summit here in a second. Um before we do that, let's also take a quick look at the December future. I've I've got that lined up as well. Gold 36.88 yet higher yet again. Uh close to 3,700, but the spot market is catching up to to the futures which is interesting and u we'll have to see what January contacts look like here very soon. But uh the trend is obviously higher and uh really excited to see that big topic here of course and excited to see what what is happening in the gold space. But uh of course always a bit cautious. We do have to wait what is happening on Wednesday. I keep coming back to it. The Fed uh and the Fed language is going to be so so important. All right. So we talked precious metals. We talked silver. Momentum is key here. Uh I'm I'm in Beaver Creek. I'm sitting at in the hotel room here in Avon, Colorado. um spent three and a half days up in Beaver Creek meeting over 32 companies talking with a lot of bankers uh brokers in between and we we have to share and discuss sort of what did I see 32 meetings what's sentiment like in in the in the mining space you can guess it it's great people are happy people are excited last year I said well we're in the final stage of grief meaning acceptance nobody really complained last year at this event the cos nor the investors talked about uh how how terrible things were I think that was sort of the the turnaround time and if you look at some of the price moves in the stocks, I think it was perfect sentiment indicator and if you were trading based just on sentiment, you could have made a lot of money starting last September. Uh so very very interesting. So what was sentiment? It was euphoric of course, but I didn't see any champagne bottles popping. No big champagne bottles sitting on tables. Uh a lot of people are sitting on gains of course in their portfolio. Uh but no unrealized gains, let's say that M&A M&A hasn't really caught on. The juniors haven't been bought up yet. So there weren't many wins to register or celebrate. We're just all patting each other's backs of course saying what geniuses we are because our portfolio is finally moving in the right direction after you almost 15 years of misery with blips in between. Um so things are happening and maybe one one key takeaway that's my key takeaway from this event and I I want to share that with you is that we have to get used to a new price floor in the precious metals. Gold is trading at 3650 as we speak. A lot of the price deck assumptions of the analysts are way way lower. 22 23 $2,400 gold and I have to adjust my my thinking about looking at these mining stocks. New price floor $3,000 or even $3,500 if you were to use spot here means that even um marginal projects are very very attractive now. Uh higher grade starter pits are even more attractive. Paybacks are absolutely insane and we have to get used to those higher valuations. I met with a company yesterday that's currently producing 100,000 ounces in Australia with an outlook of maybe 200,000 ounces down the road, maybe two years away, two and a half years away. They're trading at a $ 1.9 billion valuation. For me, of course, that is ultra rich. There are other gems that are still lower, but we have to look at higher price levels. We used so used to, at least I was used to, uh, companies coming online, meaning on market with a new project perhaps with pre- money valuations or pre-market valuations of $5 million. We have to get used to floors that are now 20 million 25 million because we are in a higher price environment. All of a sudden lower grade lower grade um projects make a lot of sense. Margins are absolutely insane. A lot of the companies are producing at over $2,000 margin and that is being reflected of course in the quarterlys uh which we're going to get a new set here in about three weeks. Three weeks. Three weeks about three four weeks. So we'll we'll get production numbers and then of course at the end of October we'll get more financials Q3 financials. really excited to see those. Um bare market mentality. Uh we I have to shake it off is is one thing I've big homework. I need to shake off the bare market mentality. This doesn't mean you jump in hand over fist and buy everything that is uh that has the word gold or silver in the name. You don't do that. You still need to do your due diligence. There's still evoperative opportunities uh to be had uh in in the space. I've met with a lot of companies. There's still undervalue is maybe not the um the right word anymore. uh nobody's really undervalued these days anymore, but maybe cheaper than than others in comparison. And one thing especially I've noticed that price tags, if you look at price tags and valuations like PNAFs is a is a famous indicator a lot of companies or investors and analysts look at when they look at mining stocks, um if that gets rerated, those PNAF multiples, they will come down massively. So we're still in a very cheap price environment if you look at it because we're being fed data that is based on wrong gold price assumptions. So that is definitely one of those takeaways um that I'm working on. But uh let's quickly what was the buzz at the conference like always there's always one theme there's always one name and always something that comes up that everybody discusses it was tether this time it was tether meaning the crypto uh the crypto space investing in the gold space that is absolutely um a dominating headline here at this event or was a dominating headline here at the event. Tether invested already over $180 million US into Elemental Altos royalties. As you know, they are merging with EMX that was announced last week. Uh big merger going to create a billion dollar royalty company that is going to be backed by Tether. Tether already owned 47% of uh Elemental LT is putting in another hundred US million dollars and is now pushing forward. Elemental just announced roll back and potential New York Stock Exchange listing. So Tether is pushing aggressively here uh trying to invest their their cash flow. I' I've been told they produce a billion dollars in cash flow every month that they need to allocate. They're investing now gold mining stocks, meaning elemental altos royalties, which is going to be named Elemental Royalties, but they're also buying farmland. And apparently they have over 80 80 tons of gold sitting in vaults in in Switzerland because their gold coin, their gold stable coin is being backed by physical. So, we're seeing a lot of momentum. The crypto pros coming back to gold, the real uh the real asset, the real hard asset that is worth holding. So really interesting to see that come back full circle. Of course, there were two more things that were being discussed amongst investors at Beaver Creek. The Beric Hemllo deal that was announced just yesterday. Beric is selling its only and last Canadian operation to a shell shell company being run by Bob Quartermain. You probably know Quartermain if you're in the mining space. Predium uh I think it was Pium Pium. Uh I need to double check that actually. But he's also the chairman and CEO of Dakota Gold right now. very famous figure in the space supported by Rick Rule and many others. Uh and he's buying the Hemllo mine 140,000 160,000 ounce producer uh for 1.9 billion. I've cued up the press release real quick just to share so we have something to look at here on screen. So it's not just me babbling on here that you have to stare at. But Beric selling at Heml for 10 1.09 billion. and to I I got to readjust my thinking like because one of the feedbacks or I heard investors say at the conference is like well this is an expensive deal. Is it though? Let's let's do the math. Let's let's quickly look at it. Um let's share this threat as I looked at the 2025 outlook for the for the project 140 to 160,000 ounces. Uh forecast cost of sales or all in sustaining costs are more important 1600 to 1700. If you do this roughly, if you do a rough math, take midpoint of guidance, midpoint of costs, you come out at roughly $5.2 billion in revenue, uh, at 3,600 at spot. At spot, that's insane. But you also have a margin of about $2.2 billion. My math might be off by half a billion or something like that. Just my point is though, is is a billion dollars expensive buying a 150,000 ounce producer? Well, one thing apparently I've been hearing that he hasn't been explored in 20 years. So there might even be a lot of upside left, but those are the new price levels we need to get used to. Is this an expensive deal? Honestly, hindsight will tell us. We will find out. Uh first look, it actually doesn't look too bad if you if you look at it. If you do the metrics, if you buy 150,000 producer for a billion dollars these days, uh that seems to be the new norm. Absolutely. And then um moving on, we have to look at uh u the absolute mega merger. It might be one of the largest mergers in mining history in general. Anglo uh Anglo-American and tech are going to merge creating a massive copper giant. Uh and of course the merger is motivated by by copper here. No other reason to to do this deal. Tech recently sold its coal assets only to merge again with a company that has a lot of coal assets. But if you look at the the breakdown and S&P has done a fantastic job here, Kip Keen uh who who's a fantastic journalist here in the mining space in my opinion has put together this this overview. It is about the dark matter here in this chart. It is about copper. Um, one thing, one big question I have, and I'm not an analyst of these major companies, um, is is of course how is the new, the new company going to handle all the investments tech has in the exploration space? I think the number I have in my head is $300 million that is being in that is invested their partners in in in Bunker Hill and many others. And the question is now how are they going to handle that? Uh, haven't found an answer to that yet. I haven't seen anything, but I also haven't had a chance to listen to the analyst call earlier this week. And uh so looking for the impact there. I've been talking to a few bankers. We are expecting a lot of more deals next week. Denver Gold Conference is kicking off here on Sunday afternoon. So expect fireworks especially after the precious metal summit. We'll probably see a lot more financings uh come out uh out of this out of this conference. A lot more news going into the next one. I hear there's still billion dollar deal to be had. IM Gold might be in play. I've been hearing um there Casabari from Heckla. Apparently, there's a sales process being run uh for that mine as well. So, lot lots of moving parts, lots lots of excitement and that rerating mentality is starting to trickle down. Investors and companies and banks are looking at deals very very differently. And if you get used to those higher price levels and uh you might be or if you get used to it before me, you you definitely can front run in many many positions, of course. Um let's uh let's take a look at the chat here. If you have any questions, put those in. I'll use the last three minutes here of of this live stream to look at some some questions. really appreciate those. Uh Maritime Resources, fantastic deal as well. Um I I was in that deal years and years ago. If you followed me on X for for a while, that was a company that I've been following. Finally, uh takeout has happened. New Phone Gold is buying it. The stock is still moving higher now trading, I believe, above takeout price. So, we'll we'll see what that means. Uh but that has been a success. The Garrett McDonald, who I met here in Beaver Creek, has done a fantastic job sticking to its heading and really moving this forward. Um CS is also asking follow-up. What's my target level for NFG? Quite honestly, I haven't looked at the at the at the metrics of the deal and what it means and production scenarios. Can they just pro process their bulk sample at Pine Cove? We'll have to take a look. But of course, if if they start producing again, get used to a higher price level and then readjust your thinking. Um, whatever I say now, it comes still from bare market mentality, $1,600, $2,000 gold. Um, adjust higher. Do the buck sample calculation, whatever the number was, times 3,500 if they were to do that tomorrow. and then you can apply your multiples. CS. So, thanks for the question. Really appreciate that. Um, if you have any other questions, please put those in the in the chat here in the comments below. Otherwise, I'm going to wrap up. Um, CS, I'm not giving investment advice uh at all, but gold is doing well. They just bought a producer. Your guess is as good as mine, quite honestly. So, um, we're in a very very uh euphoric environment for mining stocks. Do your homework. feel feel comfortable with the price levels. I'm not giving you any investment advice, but momentum is with us right now. Really really important. Manuel, great great to see you. Thanks so much for joining us. Much appreciated. Greetings back uh to to Belgium. And uh I think if we don't have any further questions, I'm going to wrap it up here. Really appreciate it. Uh CS, your target calculation is $25. I believe the stock just broke three. So kudos, Rocket Diamond Hands, don't don't sell. Good luck. Um not not investment advice. Wish you all the best. But everybody else, thanks so much for joining us here for this weekly wrap-up. If you haven't done so, hit that like and subscribe button. It means a lot to us. And uh if you haven't signed up, join us in Frankfurt. Don't you go miss November 14th and 15th. You get to meet myself. Sorry about that. But also many other amazing keynote speakers. Rick Rule, Alex Kryer, Keith Numeer, join us there. It's free for investors to attend. Uh this is an investment conference. We have about 30 32 companies joining us. Highquality companies joining us, the CEOs joining us. Make sure you meet them. Make sure you look them in the eye and make sure you ask your questions. It is now even more critical than ever. So do that. And uh thanks so much everybody for tuning in. We'll be back with lots more on Sore Financial. Take care out there.
LIVE: Gold Price HIGH, Drones, Jobs & Mining News! | Kai Hoffmann
Summary
Transcript
Good morning from Colorado. Good morning from Beaver Creek. My name is Kaihoff and I'm the at Jr Mining guy over on X and of course your host of this YouTube channel, Sore Financially. Thanks so much for joining us for a live weekly wrap-up show here from from my hotel room in Colorado. I've been attending the precious metal summit in Beaver Creek over the last three and a half days and uh we have lots to discuss. S&P 500 25th record high just being marked today. Gold is putting in a fourth executive gain or fourth week of gains in as well, trading at record high levels. And we have lots of macro data to discuss of course as well. Uh you've all probably seen jobs revisions, we've got CPI data, we got PPI data, producer price index. Um but also we got some news on the geopolitical front. Lot lots going on. Um Russia flying drones into Poland. What is that all about? Um lot lots to discuss in in that regard. If you have any questions, this is live. Please feel free to use the chat uh or the chat yeah the chat box. Uh I'll do my very best to answer those questions uh dur during this live stream here. We have lots of topics prepared of course. Um most most importantly I do want to share my impressions about what is happening in the mining space. Uh sentiment was absolutely fantastic here in Beaver Creek. But I'll get to some of those insights here shortly after we've taken a bit of a look at the macro landscape here that has been presented or some of the macro data that has been presented to us. Um but first let's take a look at the week in review. I'm going to share my screen here in just a second. Um going to share just all the data that we've gotten. Um let me add that to the screen. All prepared. Economic calendar. Let's go. Um uh so lot lots of data that was dumped on us this week that we had to digest. Non-farm payrolls annual revision PPI core inflation data and inflation rate. And uh I haven't seen yet the Michigan consumer sentiment that's coming out here any minute now. But uh most importantly jobs report and inflation as the Fed is basing its decisions on on those data points which are of course all lagging and the annual revision is a year old and it's for up to March 2025. But uh let's take a closer look at that because it was humongous a revision. We have seen a revision of 911,000 jobs. Absolutely insane if you ask me. Um I'm not sure how that is being reflected overall in um in in the unemployment rate because we got the revision of 911,000 jobs and you can see that here. Uh where where did they go? A they completely disappeared. Of course we've discussed on the program BLS data as all a bit fishy and dodgy. It doesn't make a whole lot of sense uh that that we're getting. Uh you know somebody registers a new business the BLS assumes that seven new jobs are being created. But let's assume you're an only fans creator. I don't think you'll hire seven people to help you out with your uh with your gig. So, hence gig economy. But one thing that's puzzling to me personally is that the unemployment rate stayed unchanged. Still 4.3% despite almost a million jobs that have been lost. That's something uh I need to investigate a little bit here over the coming days to understand. But maybe you have an idea. Put that down in the chat or in the comments down below after if you watch the review. Uh but but let me know like why hasn't the unemployment rate changed if we've lost 911,000 jobs. Ma massive jobs lost. Um maybe we can take just a quick look uh at where where did those jobs get lost. Leisure and hospitality 176,000 jobs right here. Uh professional business services, maybe those are the only fan creators, you know, professional services. Not sure. Uh retail trade, another 126,000. If you walk through a mall here in Colorado, it is a disaster. It is dead. Uh, so I I understand that part. Uh, wholesale trade, I don't have a Costco membership anymore, so I'm not sure what it looks like in uh in the stores and I'm sure it's not the Costco number in general um that that we're looking at, but those revisions um just paint an overall trend that some of our guests here on the channel or a picture have been painting here on the channel that the underlying economy is not as great as the the jobs reports and other data points suggest and this is now being flushed to the surface. Uh this is something now that we're looking at. So um hey Jason, thanks for joining us. Much appreciate the comment. Hope everybody can hear me. Okay. Um I haven't seen any complaints yet, so I think we should be good. Uh but so that that's the non-farm payrolls revision. Um which is, you know, key because the Fed seems to be focused very much on unemployment because we're going to take a look now at the CPI and the PPI real quick. Uh you've all seen the releases this week. Uh let's share this tab real quick. 2.9% yearly change. Uh as expected, tariffs are starting to trickle through. We have seen 2.3% in April, but have been ticking up. Of course, what happened in April, liberation day happened, broad broader range of of tariffs have been announced, and they're starting to seep through. As I said last week, we're still waiting on a big tariff deal between the US and China. Uh haven't heard much this week about it. Admittedly, I was also sitting in meetings all week. Uh so I haven't had a chance to investigate. Uh couple things that are of course interesting food a faster pace for food uh that has increased new vehicles and used vehicle prices have gone up. Uh that that is an interesting um that is an interesting sector probably all tariff related as we have to import more steel and other things that are heavily tariffed. Uh gasoline prices are still lower. Uh fuel oil of course as well. wonder what happens when oil prices start to rise because that current level um based on what's happening on the geopolitical front is it's almost unbelievable. I'm sitting here in the US looking at 350 a gallon of gas, sometimes even cheaper. I think I've seen 243 when I was up in Idaho. I might might have been wrong, but that number stuck in my head. That's an insanely cheap gas price. Uh insanely cheap. And uh we we'll have to see if that continues. I've been calling cheap gas price QE for the people here in the past as well. Um, one lesser, you know, focused on uh what do you call it indicator is also the producer price inflation. Uh, that's one we got to take a look at as well because it also cements uh that the Fed might be right about cutting here because producer prices are falling. Uh, let's just zoom in here a little bit if just a little bit so you can see that better. But market actually expected.3% increase but we've gotten.1% decrease in producer prices. Again cementing uh that the Fed it might be on the right path or cutting at least once. We can all discuss what it means uh cutting just once what the impact is. I think the press conference is way more important than uh uh what we're seeing maybe as a as hard data being presented to us in form of a press release. We will have to listen to Jurham Powell on Wednesday uh to to see where is he putting the nuance where where is he setting the commas and what should we be paying especially attention to in in in his speech here. Uh we'll be hosting a live uh live stream again on Wednesday. I'll be joined by Lobo Tiger. Really looking forward to discussing uh the the latest from uh from the Fed here. Of course we'll be discussing his his his views on on on potential rate cuts. Are we getting a jumbo cut? will will be interesting to see. Um but a lot lots of data is pointing 100% at one cut. Let's take a quick look here at um just a Fed rate cut expectations. Let me bring that up on screen here, which is always interesting. U 92.5% one cut. If you go through the months, we got three more Fed meetings this week. There could be up to three cuts this week or this this year uh this year alone. Uh, I'm really curious what again it really comes down to messaging because if we're expecting three rate cuts this year or the market is expecting three rate cuts this year, how is that being messaged? Because if I was a a consumer or an investor or even a potential house buyer, I'd wait till December or even January to do anything if I know that rates might be coming down. Not sure how that will be reflected in mortgage rates. We got we can take a look at the the 20 and 30-year bond deals here uh in in a in a short second. But deflation is is sort of the buzzword or the the the term I keep coming back to because it is in the messaging and what what Jerome Pal says like why would you buy a house now after 25 basis points if you can get a cheaper price meaning a cheaper mortgage later on. That's the pure definition of deflation for me. Um Zion really appreciate the comment. Thank you so much. Uh we'll take a look at gold and silver here in a second. Um just just running through some of the macro data that we have seen here. Um US budget uh also really really interesting. We got some data here as well. We the US House also approved a defense policy bill uh approving a $900 billion budget uh for the defense department or the department of war. Let's share this one um real quick. So, it's the National Defense Authorization Act authorizing nearly $900 billion in military spending and feature plan featuring a plan to streamline defense acquisition processes. We'll see where that goes. It was voted as as expected along party lines. So, that's the defense budget, Department of War, it is called now. I'm not sure if that all actually goes to the Department of War, but $900 billion in spending. And then uh we also have Oh, I have this lined up here. I need to find that real quick because we have gotten a uh an an update from the CBO, the Congressional Budget Office on the US deficit. Uh so far, first 11 months of the financial US financial year, the deficit has now risen to two billion uh two trillion dollars, not billion, apologies. Um in in that uh in that space of of 11 months, higher Medicare costs have pushed higher. But one one thing that a lot of outlets have noted are that the tariffs are starting to make an impact that the the budget or the budget uh spend is decreasing. And uh let me just pull that up here real quick. CBO August budget. Just want to show that to you because I think it is an important uh tidbit uh of information that we have gotten uh because the tariffs seem to be having an impact but just just a minor one. Uh where is it just came out this morning. Let me just find this real quick. I had it lined up, but uh August budget baseline 3 days ago. Three days ago. Let's let's use this one. Let's use the official congressional budget office. So the total deficit um let's share this tab here real quick. Uh cumulative monthly deficits. You can see this. I think we're on seasonal trend. But uh the interesting part of here of course is the federal budget deficit total $2 trillion. uh 29 billion more than the deficit recording during the same period last year. So we're we're above that. Um revenues increase 299 billion uh but outlays also rose but uh increases at least outpaced um outlays. So it's that's an interesting tidbit. The tariffs are having a very slight impact not enough to to make any difference whatsoever to to what we're seeing. So in terms of budget deficit discussions of course and of course this won't have an impact on any of the Fed decisions. Uh, one other thing that we need to discuss is of course geopolitics. Uh, R Russ Russia flew drones into Poland this week. Um, your guess is as good as mine probably as as to why. Were they just testing um the NATO defense strategies? Were they testing whether NATO would come together and actually huddle up uh against Russia? Really interesting case because Poland invoked I think it was article four of the NATO act asking for for help. uh Germany and many others came to the help German uh Patriot missiles I think it was German Patriots was it uh just scroll down here else well it doesn't really matter whatever missiles are called but Germany's missiles were involved Dutch F-35s and many others it's an interesting thing we we need to monitor because the gold press is very sensitive to geopolitical factors or measure uh yeah impacts um so we we have to watch this very very closely what is happening here uh deescalation of course is highly recomd recommended when it comes to this. So, uh, so yeah, I think we laid out the macro a lot of macro topics this week. Sort of my thoughts on on those. We talked jobs revisions, PBI, CPI, of course, quick look at the US budget for August 2025 from the CBO, the Congressional Budget Office, and geopolitics, of course, the NATO incident dominating headlines this week. Um, let's take a quick look at the markets. I mentioned it in my intro. The S&P 500 has hit another um, high. um the 25th high for this year. Let me share this tab. Uh so you can see this 6591 all in anticipation of Fed rate cuts. Question though, what is priced in? Is it just 25 uh basis points? Is it 50 basis points? Is it that jumbo cut that Chris Waller sod suggested that really sent our sector and sent markets flying? S&P 500 and gold in general. So we we'll have to see quite honestly um what what is priced in. It is it is an interesting factor um that we have to see at the S&P 500. It's in insane levels we keep running away. Dave Dave Hunter I had on the program here yesterday. He mentioned we're in that blow of top 7,000 points 7,500 points are absolutely possible right now. Uh again messaging what what is Jerome Powell going to say? Uh are we going to see QE again? Is QT done? Are they done tightening? We'll have to see. So um a lot of nuance, a lot of importance being put on the Fed meeting this week that is happening in 5 days time. Um let's take a look at the bond yields as well as as we speak here. Uh let me pull up just a 10-year real quick. And um that's the 10-year. It has been dropping in anticipation of those rate cuts. Everybody's trying to lock in higher rates before rates potentially go down and yields might be dropping along those lines as well. uh 10-year uh down to 406 uh the three the two-year which is of course an important measure as well. I mean we can we can pull that up uh or I can take a quick look at the two-year um here as well. Let's see. Let's take a quick look at the 2-year. It is 3.56 if I'm not mistaken. Um bonds United States. Let's take a look. And the 2-year is at 356. As I said, I looked that up earlier. So no, no change there. But David Hunter has also mentioned that the bond yields uh especially for the 10 years should be coming down much much more. He's predicting a bond market in in US government bonds. 2.5% yield uh very much possible here. So that's I think the trend we're seeing. People are locking in those higher yields until we have more certainty on what the Fed is going to do here. Um suggestions are of course that the Fed should be cutting all the way down to the 2-year yield level which is 3.56%. Not sure if you agree. Um do you actually agree should the Fed cut? really curious. Put that in the chat. I do want to hear from you. It is a controversial topic. We had Sri Kumar, Dr. Sri Kumar here on over the weekend as well and he he he advocated for rate hikes uh because he doesn't believe that inflation is tamed yet and the unemployment side isn't worrying too much for him. So, what what do you think? If you're watching here on YouTube, put that in the chat. I do want to hear from you. That that'd be interesting and uh really appreciate that. Let's get some some action going here. Uh S&P 500, I've shown you we looked at bond yields. I think we need to take a look at gold now. We definitely have to take a look at gold. Um, this gold chart is phenomenal. Uh, gold is rallying. We are seeing inflows in gold in gold ETFs that has been driving the gold price higher. 3651 as we speak. 3652 as we speak here. And uh, it's it is running. This is an all-time high yet again. Let's let's zoom in here just a little bit. And the rally in recent days, ever since, you know, the the Jackson Hole meeting, we are up what is it now? over $200 or exactly $200 since the speech in Jackson Hole here on August 22nd. Uh let's see here. August 21st. Let's see. 3352. We're exactly up or $300. My math is wrong. $300 since that. That's an insane move for the precious metal. Uh let's hope it's not overhyped, but we are seeing ETF inflows supporting the move. Uh generalists are waking up trying to hedge their bets in the main markets with gold and we're seeing that right now. Is silver following? Let's take a look. Silver is following. Let's take a look at this beauty of a chart. Um $42.3. We have broken out over $42. That used to be a massive um a massive resistance. I'm not a technical analyst and you can't even see it in my charts here. Um let's let's be honest. Um let's bring this back down together. Let's take a look here. But also, silver has broken out. Uh what what is the next stop? Is it $50? Your guess is as good as mine. We we'll have to see. Um what what silver does of course positive momentum. Momentum is the key buzz word here in gold and silver. We're seeing lots of it and silver with a breakout over 42 is having that eight 1.8% uh plus this morning. This morning alone is is a massive indicator that silver is catching up and breaking out. Silver stocks are catching massive bids uh here as well. Valuations are running high or yeah running high. It's actually a good segue. We'll talk about some of my impressions from the precious metal summit here in a second. Um before we do that, let's also take a quick look at the December future. I've I've got that lined up as well. Gold 36.88 yet higher yet again. Uh close to 3,700, but the spot market is catching up to to the futures which is interesting and u we'll have to see what January contacts look like here very soon. But uh the trend is obviously higher and uh really excited to see that big topic here of course and excited to see what what is happening in the gold space. But uh of course always a bit cautious. We do have to wait what is happening on Wednesday. I keep coming back to it. The Fed uh and the Fed language is going to be so so important. All right. So we talked precious metals. We talked silver. Momentum is key here. Uh I'm I'm in Beaver Creek. I'm sitting at in the hotel room here in Avon, Colorado. um spent three and a half days up in Beaver Creek meeting over 32 companies talking with a lot of bankers uh brokers in between and we we have to share and discuss sort of what did I see 32 meetings what's sentiment like in in the in the mining space you can guess it it's great people are happy people are excited last year I said well we're in the final stage of grief meaning acceptance nobody really complained last year at this event the cos nor the investors talked about uh how how terrible things were I think that was sort of the the turnaround time and if you look at some of the price moves in the stocks, I think it was perfect sentiment indicator and if you were trading based just on sentiment, you could have made a lot of money starting last September. Uh so very very interesting. So what was sentiment? It was euphoric of course, but I didn't see any champagne bottles popping. No big champagne bottles sitting on tables. Uh a lot of people are sitting on gains of course in their portfolio. Uh but no unrealized gains, let's say that M&A M&A hasn't really caught on. The juniors haven't been bought up yet. So there weren't many wins to register or celebrate. We're just all patting each other's backs of course saying what geniuses we are because our portfolio is finally moving in the right direction after you almost 15 years of misery with blips in between. Um so things are happening and maybe one one key takeaway that's my key takeaway from this event and I I want to share that with you is that we have to get used to a new price floor in the precious metals. Gold is trading at 3650 as we speak. A lot of the price deck assumptions of the analysts are way way lower. 22 23 $2,400 gold and I have to adjust my my thinking about looking at these mining stocks. New price floor $3,000 or even $3,500 if you were to use spot here means that even um marginal projects are very very attractive now. Uh higher grade starter pits are even more attractive. Paybacks are absolutely insane and we have to get used to those higher valuations. I met with a company yesterday that's currently producing 100,000 ounces in Australia with an outlook of maybe 200,000 ounces down the road, maybe two years away, two and a half years away. They're trading at a $ 1.9 billion valuation. For me, of course, that is ultra rich. There are other gems that are still lower, but we have to look at higher price levels. We used so used to, at least I was used to, uh, companies coming online, meaning on market with a new project perhaps with pre- money valuations or pre-market valuations of $5 million. We have to get used to floors that are now 20 million 25 million because we are in a higher price environment. All of a sudden lower grade lower grade um projects make a lot of sense. Margins are absolutely insane. A lot of the companies are producing at over $2,000 margin and that is being reflected of course in the quarterlys uh which we're going to get a new set here in about three weeks. Three weeks. Three weeks about three four weeks. So we'll we'll get production numbers and then of course at the end of October we'll get more financials Q3 financials. really excited to see those. Um bare market mentality. Uh we I have to shake it off is is one thing I've big homework. I need to shake off the bare market mentality. This doesn't mean you jump in hand over fist and buy everything that is uh that has the word gold or silver in the name. You don't do that. You still need to do your due diligence. There's still evoperative opportunities uh to be had uh in in the space. I've met with a lot of companies. There's still undervalue is maybe not the um the right word anymore. uh nobody's really undervalued these days anymore, but maybe cheaper than than others in comparison. And one thing especially I've noticed that price tags, if you look at price tags and valuations like PNAFs is a is a famous indicator a lot of companies or investors and analysts look at when they look at mining stocks, um if that gets rerated, those PNAF multiples, they will come down massively. So we're still in a very cheap price environment if you look at it because we're being fed data that is based on wrong gold price assumptions. So that is definitely one of those takeaways um that I'm working on. But uh let's quickly what was the buzz at the conference like always there's always one theme there's always one name and always something that comes up that everybody discusses it was tether this time it was tether meaning the crypto uh the crypto space investing in the gold space that is absolutely um a dominating headline here at this event or was a dominating headline here at the event. Tether invested already over $180 million US into Elemental Altos royalties. As you know, they are merging with EMX that was announced last week. Uh big merger going to create a billion dollar royalty company that is going to be backed by Tether. Tether already owned 47% of uh Elemental LT is putting in another hundred US million dollars and is now pushing forward. Elemental just announced roll back and potential New York Stock Exchange listing. So Tether is pushing aggressively here uh trying to invest their their cash flow. I' I've been told they produce a billion dollars in cash flow every month that they need to allocate. They're investing now gold mining stocks, meaning elemental altos royalties, which is going to be named Elemental Royalties, but they're also buying farmland. And apparently they have over 80 80 tons of gold sitting in vaults in in Switzerland because their gold coin, their gold stable coin is being backed by physical. So, we're seeing a lot of momentum. The crypto pros coming back to gold, the real uh the real asset, the real hard asset that is worth holding. So really interesting to see that come back full circle. Of course, there were two more things that were being discussed amongst investors at Beaver Creek. The Beric Hemllo deal that was announced just yesterday. Beric is selling its only and last Canadian operation to a shell shell company being run by Bob Quartermain. You probably know Quartermain if you're in the mining space. Predium uh I think it was Pium Pium. Uh I need to double check that actually. But he's also the chairman and CEO of Dakota Gold right now. very famous figure in the space supported by Rick Rule and many others. Uh and he's buying the Hemllo mine 140,000 160,000 ounce producer uh for 1.9 billion. I've cued up the press release real quick just to share so we have something to look at here on screen. So it's not just me babbling on here that you have to stare at. But Beric selling at Heml for 10 1.09 billion. and to I I got to readjust my thinking like because one of the feedbacks or I heard investors say at the conference is like well this is an expensive deal. Is it though? Let's let's do the math. Let's let's quickly look at it. Um let's share this threat as I looked at the 2025 outlook for the for the project 140 to 160,000 ounces. Uh forecast cost of sales or all in sustaining costs are more important 1600 to 1700. If you do this roughly, if you do a rough math, take midpoint of guidance, midpoint of costs, you come out at roughly $5.2 billion in revenue, uh, at 3,600 at spot. At spot, that's insane. But you also have a margin of about $2.2 billion. My math might be off by half a billion or something like that. Just my point is though, is is a billion dollars expensive buying a 150,000 ounce producer? Well, one thing apparently I've been hearing that he hasn't been explored in 20 years. So there might even be a lot of upside left, but those are the new price levels we need to get used to. Is this an expensive deal? Honestly, hindsight will tell us. We will find out. Uh first look, it actually doesn't look too bad if you if you look at it. If you do the metrics, if you buy 150,000 producer for a billion dollars these days, uh that seems to be the new norm. Absolutely. And then um moving on, we have to look at uh u the absolute mega merger. It might be one of the largest mergers in mining history in general. Anglo uh Anglo-American and tech are going to merge creating a massive copper giant. Uh and of course the merger is motivated by by copper here. No other reason to to do this deal. Tech recently sold its coal assets only to merge again with a company that has a lot of coal assets. But if you look at the the breakdown and S&P has done a fantastic job here, Kip Keen uh who who's a fantastic journalist here in the mining space in my opinion has put together this this overview. It is about the dark matter here in this chart. It is about copper. Um, one thing, one big question I have, and I'm not an analyst of these major companies, um, is is of course how is the new, the new company going to handle all the investments tech has in the exploration space? I think the number I have in my head is $300 million that is being in that is invested their partners in in in Bunker Hill and many others. And the question is now how are they going to handle that? Uh, haven't found an answer to that yet. I haven't seen anything, but I also haven't had a chance to listen to the analyst call earlier this week. And uh so looking for the impact there. I've been talking to a few bankers. We are expecting a lot of more deals next week. Denver Gold Conference is kicking off here on Sunday afternoon. So expect fireworks especially after the precious metal summit. We'll probably see a lot more financings uh come out uh out of this out of this conference. A lot more news going into the next one. I hear there's still billion dollar deal to be had. IM Gold might be in play. I've been hearing um there Casabari from Heckla. Apparently, there's a sales process being run uh for that mine as well. So, lot lots of moving parts, lots lots of excitement and that rerating mentality is starting to trickle down. Investors and companies and banks are looking at deals very very differently. And if you get used to those higher price levels and uh you might be or if you get used to it before me, you you definitely can front run in many many positions, of course. Um let's uh let's take a look at the chat here. If you have any questions, put those in. I'll use the last three minutes here of of this live stream to look at some some questions. really appreciate those. Uh Maritime Resources, fantastic deal as well. Um I I was in that deal years and years ago. If you followed me on X for for a while, that was a company that I've been following. Finally, uh takeout has happened. New Phone Gold is buying it. The stock is still moving higher now trading, I believe, above takeout price. So, we'll we'll see what that means. Uh but that has been a success. The Garrett McDonald, who I met here in Beaver Creek, has done a fantastic job sticking to its heading and really moving this forward. Um CS is also asking follow-up. What's my target level for NFG? Quite honestly, I haven't looked at the at the at the metrics of the deal and what it means and production scenarios. Can they just pro process their bulk sample at Pine Cove? We'll have to take a look. But of course, if if they start producing again, get used to a higher price level and then readjust your thinking. Um, whatever I say now, it comes still from bare market mentality, $1,600, $2,000 gold. Um, adjust higher. Do the buck sample calculation, whatever the number was, times 3,500 if they were to do that tomorrow. and then you can apply your multiples. CS. So, thanks for the question. Really appreciate that. Um, if you have any other questions, please put those in the in the chat here in the comments below. Otherwise, I'm going to wrap up. Um, CS, I'm not giving investment advice uh at all, but gold is doing well. They just bought a producer. Your guess is as good as mine, quite honestly. So, um, we're in a very very uh euphoric environment for mining stocks. Do your homework. feel feel comfortable with the price levels. I'm not giving you any investment advice, but momentum is with us right now. Really really important. Manuel, great great to see you. Thanks so much for joining us. Much appreciated. Greetings back uh to to Belgium. And uh I think if we don't have any further questions, I'm going to wrap it up here. Really appreciate it. Uh CS, your target calculation is $25. I believe the stock just broke three. So kudos, Rocket Diamond Hands, don't don't sell. Good luck. Um not not investment advice. Wish you all the best. But everybody else, thanks so much for joining us here for this weekly wrap-up. If you haven't done so, hit that like and subscribe button. It means a lot to us. And uh if you haven't signed up, join us in Frankfurt. Don't you go miss November 14th and 15th. You get to meet myself. Sorry about that. But also many other amazing keynote speakers. Rick Rule, Alex Kryer, Keith Numeer, join us there. It's free for investors to attend. Uh this is an investment conference. We have about 30 32 companies joining us. Highquality companies joining us, the CEOs joining us. Make sure you meet them. Make sure you look them in the eye and make sure you ask your questions. It is now even more critical than ever. So do that. And uh thanks so much everybody for tuning in. We'll be back with lots more on Sore Financial. Take care out there.