A scenario is unfolding that I am keeping a close eye on here… if oil has bottomed and the Canadian Dollar strengthens, I think that the Richmonts and the Oceanagolds of the world are going to pass off leadership to the American miners who are mostly based in Nevada… this is mainly because their cost structures are going to get worse.  They have been enjoying extremely low Loonie level cost inputs.  The 2 in particular are Newmont and Klondex.  Now, I have owned Newmont since the 18 level and I’m not selling a single share for a long time.  Klondex I have owned since 2.11 although I sold half in the 2.90s.  Newmont is backtesting its breakout.  Newmont is the leader… it may have underperformed the smaller names and names with worse cost structures, but make no mistake, it is the only major that is increasing production.  It will be the largest gold miner in the world in terms of production over the next 5 years  as Barrick favors reducing output to only the highest grades.  It’s backtesting its breakout which is lining up with Fully’s charts.

nembreakoutbacktest

 

Next I find to be really interesting because it can go wild and move like a monster if it gets unhinged and that is the US listing of Klondex.  It is based in Canada but its operations are in Nevada… hence the American title.  Now what think is happening here is that it is going to start building out the right shoulder on and Inverse H&S that is going to propel it to $ 4ish and then it is going to go crazy.  This is the next Richmont IMO.

kldxbacktest