John Feneck: Gold Coming Off “Tremendous” Year, 8 Stocks on My Radar

John Feneck of @feneckcommoditiesreport discusses gold’s performance this past year and shares stocks that he’s watching in the gold and silver sectors, as well as other areas of the resource market.

“I think … that there’s more risk from not being in the junior sector than there is being in it,” he said.

Companies mentioned by John in the interview: Goliath Resources (TSXV:GOT,OTCQB:GOTRF), Cartier Resources (TSXV:ECR,OTC Pink:ECRFF), Guanajuato Silver Company (TSXV:GSVR,OTCQX:GSVRF), Silver X Mining (TSXV:AGX,OTCQB:AGXPF), AbraSilver Resource (TSXV:ABRA,OTCQX:ABBRF), Aftermath Silver (TSXV:AAG,OTCQX:AAGFF), Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF), First Tellurium (CSE:FTEL,OTCQB:FSTTF).

Energy Transition Metals Summit: https://www.precioussummit.com/event/2024-energy-transition-metals-summit-washington-d-c/

John Feneck’s details:
Website: http://www.feneckconsulting.com
Email: john.feneck@yahoo.com
Twitter: @feneckconsult
Facebook: FeneckConsulting
LinkedIn: https://www.linkedin.com/in/john-feneck-26386a14/
YouTube: @feneckcommoditiesreport
Newsletter: “Feneck Commodities Report”

#Investing #Gold #Silver

This interview was filmed on January 21, 2024.

0:00 – Intro
0:27 – Gold price vs. gold stocks
3:11 – Now is the time for juniors
5:13 – Gold and silver stocks
8:27 – Energy transition event
10:54 – Uranium price and stocks
13:16 – Copper outlook for 2024
16:11 – Oil, gas and solar energy
19:49 – Outro

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I’m Charlotte McLoud with investing news.com and here today with me is John benck partner and portfolio manager at benck Consulting thank you so much for joining me great to have you here like West thanks for having me back of course really good to be speaking with you and

We’re in person at R always nice although I think a theme Here is people are looking at especially the gold price seeing gold near record highs which we talked about in our last conversation and they’re wondering what’s going on with the gold stocks they see this disconnect absolutely so yeah I want to

Start by getting your thoughts there when we might see that correct itself sure yeah that is The $64,000 Question as to when that disconnect will reconnect and um it has been extreme frustrating for the last number of months plus all of last year really gold tremendous performance in my view we sat

Down a year ago right here at V Rick and I said that I thought 1790 to 1800 would hold and it did um and we’ve made uh a test of that back in early October when it was just before the Israel Hamas conflict and then just gold took off

Right and so gold has done its job gold has performed it’s protected wealth it’s done everything that you’d want it to do yet the producers of gold or the developers or the Explorers for gold have underperformed dramatically and by dramatically to give you some perspective it’s not just the Juniors if

You look at Newmont which is the largest holding in GDX which is a$ 13 billion ETF um numont is trading $1 off its three-year low I don’t know about a five or 10 year chart I usually look on the shorter term side to get ideas on Technical and and you know support and

Resistance but it’s just not looking good and so clients are feeling that pain it’s real um I do think that you know we’re we’re living in a world though that gold has a place now where when you and I met it it kind of did but

Now it definitely does so I would just encourage people to be patient on the gold Equity side um and on the silver side silver has acted both as a precious metal and an industrial metal as you know um much more like an industrial old medal over the last 2 years I’d say and

That’s why it hasn’t really performed as well as I would hope or many investors would hope um we were calling on your show on other shows that it wouldn’t break $28 all of last year or the previous year and it hasn’t hasn’t even really come close it’s really been

Struggling with 25 a half and 26 so once we get through that level with some Authority that would be positive but as we sit here right now we have to get through like 24 first so we kind of educate investors as you know Charlotte like one step at a time let’s get

Through this level then let’s test that level and see if we can get through that and then we can get more excited because some of these silver companies really need higher silver prices to be profitable yeah and before we turn the camera on here you you gave what I

Thought was some good advice you were talking about how we need to be patient for gold and silver and you mentioned you know you don’t you don’t have to be doing this you can do something else if you don’t want to wait so maybe you want

To expand on that a little bit because I thought it was a good point sure yeah I mean there’s so many things you can do with your money you don’t have to stick it out in this sector if you don’t think that you have the the stomach for it

It’s it’s it’s it’s not for everyone I’ve said that so many times um it is a challenging sector however the upside can be extreme um because you really have to look at everything Charlotte when you’re investing as you know percentage growth right if I if I have a

10cent you know Junior Gold stock right now and it was a dollar 3 years ago which is not unusual these stocks have lost 80 to 90% of their value then to go from 10 to 20% I make 100% I don’t need to go back to a dollar I can double my

Money if this thing just goes from 10 to 20% 20 cents um that’s the opportunity that we have here today that we didn’t have when we met because prices were still very very high in 2020 coming off the pandemic and um I think the opportunity right now is is well I

Should say that there’s there’s more Risk by not being in our Junior sector than there is being in it and I know that I would probably get shelled by some for that but um I I think you have to use a rifle approach talk to CEOs understand what their timeline is

For news because not everything is created equal right there’s a lot of bad operators right down there through that door um I’ve met some today so there there’s a matter of like sifting through the the the people first whether that’s the management meaning a CEO or that’s a

Geologist in the field and then if you get on board with that that team and they have cash and they’ve got a good jurisdiction and and and then you can get behind that story and usually you’re you’re pretty good about Bo showing us what you’re looking at at the moment so

In terms of gold and silver companies I wondered if we could get an an update on where you see interest and excitement right now sure well I think GDX should be part of everyone’s portfolio it’s about 5% of our portfolio I use that as a um a hub you know a core holding

Because it has you know Newmont agnico barck all the big boys in there and um then you can build out from that into some other names you know we’ve mentioned Goliath on your program before we like the fact that crescat Rob McAn Eric spra all own collectively about 30%

Of the float um but we look at um oh gosh there’s so many names in gold right now that really really attractive um but you know we’ve mentioned cardier on your program I stole on that um on the silver side I’ve just been spending more of my time because there’s

Even more of a disconnect there and as a value manager we love that so when I look at guano silver you know producing uh in Mexico you know they already have all their permits they’ve got they’ve got a lot of the heavy lifting done in terms of uh their different locations or

Project if you will they’ve got an awesome field team I’m seeing them tomorrow morning to get an update um silverx reminds me of of a Guan in Peru you know they’re also producing um but they’re in a different jurisdiction I would argue that with Castillo out of

The way now for 14 months that jurisdiction should be doing better than it is um because the risk is really off the table right now for for the most part um and then I’m looking at things like uh companies that have larger deposits in silver you know many many

Ounces in the ground Abra silver just came out with a really good result uh here in January on their Diablos uh project in Argentina um the Sala province in Argentina where they are is actually quite good It Gets A Better Tax Rate and they have 258 million ounces of

Silver in the ground on the uh m& side so you know really interesting project I like JN as a leader he’s very um I wouldn’t say aggressive he’s very confident you know I like aligning with people that are are going to get it done somehow right like they they have a plan

In place and they’re they’ve got you know some cash in the bank um but but they’re in the right place at the right time putting out consistent well written and well thought out good you know news flow and lastly we’ve mentioned aftermath on your program before that’s

Been all over the map we mentioned it at 12 we mentioned it at 14 it just ran to 23 now it’s back to 14 I mean it is uh bouncing around because in my my opinion they need to put out their metallurgical results they’re they’re going to come

Sometime in this quarter so when we look at something here you know January 21st or whatever it is um you know what what’s another two months right like I mean this is something that’s going to come it could be a game changer for the company because of their manganese

Components and um that would put them into a whole another uh valuation category in my opinion all right so some good good options there for people to look into on the gold and silver side and usually we go into more when it comes to gold and silver but today I

Know you have a conference here involved in coming up focused on energy so maybe give us an idea of when that’s coming what it’s all about and then we can talk about the energy opportunity yeah thank you um I’m very passionate about the sector and I think that in parts of the

US um we haven’t been doing enough Justice to Junior companies to let them kind of tell their story right um Beaver Creek in Colorado I think is the Premier you know Junior mining conference in the US but when a uranium company or a copper company would try to attend a lot

Of times management would just tell them you know politely no thanks because we’re going to focus on gold and silver so I talked to uh the coordinators of that conference and said why don’t you start something in the US that’s going to be focused on copper uranium lithium

Pgms you know something that would just be for those kind companies so they really got behind that story I mentioned Washington DC as a jurisdiction because that’s where I’m from I spent you know 25 years there so I can bring High net worth retail there which I think is

Really as you and I’ve talked about before really theit the biggest challenge for a company attending a conference like this is I spent 10 to $15,000 I’m seeing the same people from last year it’s like people want to meet new clients so that’s my that’s on my

Back if we don’t get that done that’ll be my fault but I feel very confident that I’ll be able to draw a lot of High worth people from New York City Philly Baltimore DC Virginia there’s a lot of money in the Mid-Atlantic and um a lot of these people come from the financial

Advisory type world where I come from that they don’t have really an experience with mining they understand clean energy as a trend and it’s something that they need to know more about but they haven’t really done much other than maybe buy a solar ETF or or

Buy a cold ETF or something so there should be some some really good buyers there and I hope companies will approach me or any of your listeners want to attend will approach me because we’re we’re giving anyone who’s an accredited investor free admission to the program um we’re going to do a two-day

Conference Monday Tuesday we’re partnering with the northern minor um so Anthony’s team will be in charge of the speakers I’ll be a speaker there but also we have people from the dod the doe lined up I mean it’s a really really good lineup right now on the speaker

Side and the company side so we’re very excited about that okay yeah and if you got a link we’ll drop a link in the video description for people to learn more it’s on really exciting and okay so talking about energy if we talk about energy of course we’ve got to go over

Uranium and we’ve talked about uranium a little bit in the past but not since there’s been such huge amount of excitement around it so one question I always like to start with is where are we in in the current cycle well the spot price is doing extremely well right um

Spot has crossed $100 for the first time about 10 days ago um and uh I I didn’t even think spot would get here this quickly but one of the things that also was interesting I just read a piece from Sprout that put this out because Sprout has the uranium position that they have

And and also has a pretty cool ETF in the in the junior space um they said that there was not the biggest disconnect between equities in the spot price last year but there’s still like a lag effect so we were telling clients in December hey you want to get you know

Some of these uranium Juniors now because the move is on there there’s momentum in this sub sector of the of the Commodities world and we right because January has been an awesome year for for Uranium equities so we continue to add to those names I’ve mentioned Forum energy on your program before that

Remains to be our largest H holding at about um 3% right now um I think Rick you know again 40 years in the business knows what he’s doing they cashed up um their goo Rebecca Hunter knows what she’s doing so when you look at the entire team it’s it’s just an

Exciting place to put money right now um and they’ll be part of what’s called uranium night tomorrow night um it’s being held here in Vancouver and there’s going to be coaster resources pure points uh Encore a bunch of different companies nuclear fuels so I’m going to

Meet a bunch of CEOs there to try to challenge myself to learn more about what they’re doing and about that sub sector because as I’ve said before I I really only got interested in uranium just around the time of the pandemic because I’ve been you know heard about

It for so many years from Rick Rule and somebody investors but I I had never gotten behind it being more of a medals guy um and I think that’s important to always challenge yourself to learn more because you know I did it very late in life and we’re we’re doing well in that

Sector right now yeah well I think if you came in around 2020 for Uranium maybe you just missed all those ugly years when it was not doing so well so there you go so on the energy side you mentioned a whole Salo of different topics that you’ll cover at this clean

Energy conference one that we’ve spoken about before is of course copper so maybe we check in with you on copper I’ve heard a lot of mixed opinions on copper it feels like everyone agrees that the long-term story is looking good but maybe this year is is not so hot so

Thoughts on copper and and what you’re looking at in that sector I would disagree with that to the extent that copper last year if you look at CP which is the US ETF tracker for the price of copper actually finished Flatt it down last year it didn’t do well at all last

Year so I guess what is the argument that it won’t do well again this year when people like Goldman Sachs are calling for a really good year you know like you have to look at where institutions are are starting to talk things up and and copper now with a soft

Landing quote unquote in the in the in the uh um discussion from the FED as of December 13th I think that puts a big bit on copper big bit on nickel like but but not right away right probably by mid year you know it’s it takes time for

People to buy that the FED is going to be you know this dubish right because we’ve talked so many times about how hawkish they’ve been so now for them to flip-flop on one meeting like this people want follow through I want follow through you know if we were to end the

Year December 31st and you and I had an interview the um CMB fed watch tool which we’ve talked about really good tool for investors free um it showed an 81% probability that the Fed was going to raise uh cut race excuse me March 20th so we looked at it this morning and

It’s 46% so not as rosy at all then you look at the May 1st meeting and it’s a 50% chance of a cut so that means net net from January to may we may have a 50% chance of a one cut this isn’t like

As as bullish as we saw just at the end of December right and I’m not trying to be a downer I’m trying to say this might take longer than people expect um which is why we think copper will have a really good run from say you know

Summertime this year into the end of next year that 18month stretch um should be pretty exciting so we are aligning uh we haven’t bought physical copper yet but we are buying some of the the larger cap names as well as the smaller cap names yeah and I I think that confusion

On where copper is headed does kind of come from uncertainty about where we’re actually going in the economy so I think I think the way you explained it helps make it make sense yeah and that goes for nickel too nickel is a bullish metal copper is a bullish metal they aren’t

Like gold and silver which are precious metals they’re going to trade differently okay and on on the energy side is there is there anything else you would bring up I don’t think we’ve touched on oil and gas which you mentioned as well is that would you like

To tell us what you’re seeing there because I know that’s one that people I’ve been hearing about it a little bit more for the last couple of years as people say okay you know we’re we can’t get rid of it yet of course right well I don’t know I’m not as sharp on

Traditional oil and gas right now at the moment because I’ve been spending so much of my research time on Uranium on solar and different things um but I will say that there’s always a place in a portfolio for traditional oil and gas um you know there’s there’s a number of

Names that we’re looking at right now but we haven’t pulled the trigger on um I would say putting a position on just oil through an ETF that doesn’t produce a K1 uh would be an interesting investment because oil will do better in a environment that is uncertain especially you know what I’m talking

About is you know World conflict um unfortunately oil should go through $100 a barrel at some point in the next 12 to 15 months and then you know you’ve you’ve got a nice gain from today’s prices right um but we look at something like solar as uh I’ve been spending some

Time with maybe the last month or two in fact on our last interview I mentioned something that has to do with the solar world the tarium piece that stock actually has gone up 60% since our last you know meeting um it doesn’t take much to move some of these stocks because

Again if you look at the capital structure of something like first delium very tightly held the CEO and his wife own I think about 12 13% of the entire float so um it’s doing that work on each of these names you know it it takes a

Lot of time and effort um I would say solar bank is something that I’m meeting with tomorrow here in Vancouver they’re actually a larger stock uh you know to mention something in the larger c space along with the GDX kind of theme um solar bank has focused their efforts in

Canada Maryland and New York State and um I grew up around that area so I know that area quite well and they’re just building solar you know panel Fields it’s it’s it’s really a cool um process and the revenue growth in that sector is like about 20 to 21% uh excuse me the

Compound annual growth rate so when you look at 2024 to 2030 you know uh the sector itself should do quite well but a small company like that with a tightly held share structure should do very well okay I think we’ve taken a pretty good run through all the main categories

That we hope to go through so just any final brief thoughts that you would leave investors with I’m sure we’ll check in with each other again in a couple of months yeah sure things to lead people with yeah um I would say hang in there you know

It’s it’s such a hard sector this sector will derail most really intelligent wealthy people and so when you only have a little bit in your pocket and you’re trying to make this work I know how frustrating it is I was there in the 90s um and I’ve never given

Up because I think there’s a lot of um inefficiencies in mining and those inefficiencies can be Happ ized on you know um when when the markets turn so I think we’re really close I think we watch gold if gold breaks 1800 don’t listen to anything I just said but um I

I think gold will hold in there and surprise people to the upside as we move forward over the next number of months and silver at some point will play catchup okay I think that’s a good place to leave it and of course we will check back with you soon so we’ll get some

Updates thank you very much thanks Charlotte of course and once again I’m Charlotte McLoud with investing news.com and this is John fenick thank you for watching if you like this video make sure you subscribe to our Channel we’d also love to hear your thoughts so leave us a comment

Below we’ll see you next Time