Weekly Watchlist - May.26, 2024

It was an interesting week in the commodities space, as the sentiment shifted dramatically through the week, as many of the metals started consolidations.

I discussed Silver last weekend in my post, and it was shocking to see the sentiment shift on the metal through the week, the metal has burned so many people in the last couple years that everyone quickly becomes skeptical after a couple days of consolidation. This is the type of behaviour usually seen in the beginning of a bull market move. Let’s take a look at chart and see if there is a reason to panic.

Silver re-tested the breakout level and quickly bounced off it, which is exactly what you want to see. During these breakouts out of huge bases, you often get a re-test of the important breakout level. A weekly close below $30 would give me some cause for concern but we aren’t there yet. Next week will be an interesting one to watch. I was also noticing that many of the mining stocks were holding their gains which was a nice change of behaviour.

Here is a few stocks that I am monitoring right now that I wanted to share.

Erdene Resources - $160 Million Market Cap

I took a small position in Erdene this week, often times when a developer begins construction you get a re-rate up to first pour of the metal. This is the developer re-rate seen in the lassonde curve.

Construction is approximately 15% complete with first pour expected in Q2 2025. Erdene has additional projects that have good exploration potential in Mongolia. The market responded well to the recent news about the progress of the project.

Erdene broke above some important resistance that went back to 2022, volume was up alot at the start of the week but fizzled out as the gold price corrected. I will be interested to see how it responds next week.

Endurance Gold - $33 Million Market Cap

The company is focused on the Reliance Project in B.C and has drilled some really nice holes here in the past. The company intends to drill another 10,000 metres this season. As it continues to make new discoveries in the area.

One thing that caught my attention is that on May.14 the company announced a non brokered private placement in which they will raise 4 million dollars and a director of the company will take 20 million shares at .20 cents which was at a nice premium to the share price when this was announced. The stock responded very well.

The stock is right at an important resistance level now and is on watch for a breakout. It could be an exciting drill season for Endurance.

Sable Resources - $19 Million Market Cap

Sable has been a stock on my radar, it traded at .40 cents in 2021 and has gotten pummelled over the the last couple years, it’s been in a bottoming pattern for almost a year but hasn’t been able to have a breakout quite yet.

The company hasn't been able to deliver a big discovery yet, but they continue to acquire some very interesting projects. It feels like just a matter of time before this occurs. They still have over $11 million in the bank so they will be able to continue their exploration plans.

Here is a good summary of where the company is currently at.

This one is worth a deep dive, I will be following the story closely and watching for a potential breakout.

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