Good Morning!

Gold & Silver started the week with impressive strength. 

My view is they remain in a correction which will continue via price and time, but perhaps more so in time. 

The strength of Monday and Tuesday, despite a potential ongoing correction, is why my motto is buy, hold and trim. You don't get rich trading in and out of a bull market.

But I digress. 

What comes next?

Gold Performance After Initial Breakout Move

This is where Gold is right now. 

We show the performance following 5 of the 7 post-breakout peaks. 

Those five are the 4 after all-time highs (1972, 1978, 2009, now), and the 2006 peak. 

The data is weekly.

Both averages show Gold restarting an unabated uptrend in September.

Both averages also put Gold at $4500 in 12 months.

Silver Performance After Initial Breakout Move

We show Silver's performance following 5 of the 7 post-breakout peaks.

Instead of the 2006 peak we include the 2003 peak (which was also very close to the peak in the Gold/Silver ratio).  

The average excludes the 1978-1980 moonshot. 

The average nearly reaches $50, 12 months from today.

Sponsor Companies

GoGold Resources (GGD.to, GLGDF) is currently a small Silver producer with a pipeline of two development projects. Its CEO Brad Langille owns a large position in the company and has a very strong track record.

The company is attractively priced and in position to produce 9M oz Silver-equivalent/year in a few years, with another development project that could take it to 16-17M oz Silver-equivalent.

The stock is acting very well. On December 22, 2024 we called a buy on the stock at C$1.10. It nearly doubled before the current correction.

Calibre Mining (CXB.to, CXBMF) is being acquired by or merging with Equinox Gold (EQX.to, EQX).

The two companies have a combined market cap of US $5.15 Billion, but have $1 Billion in debt.

Each company is building its most important and lowest cost mine right now. Both are in Canada, where the Gold price is extremely strong. 

The combo could grow its production +60% from 2024 to 2026. 

The combined entity could generate EBITDA of $2.50 Billion at $2900 Gold in 2026. An 8x valuation is quite reasonable. 

In short, if these two mines have no major issues or significant delays and Gold continues to trend higher, the new Equinox should be a sector leader in 2026. But given the debt load, any hiccups that require significant future capital investment will hurt the stock.

For more analysis of these companies and many more companies, subscribe to TheDailyGold Premium.

In TheDailyGold Premium....

TDG #933 was a lighter update.

We included upside potential notes for our Secondary Watch List companies and covered recent news from some of our favorite companies. 

In TDG #932 we provided upside potential notes and estimates on our Top 10 Companies and 4 Watch List companies.

Here is part of our update summary for TDG #933:

The sector is correcting and remains in a regime in which the best companies and best juniors are attracting the capital and still have considerable upside potential at present margins (as per our notes on potential from last week). 

But when GDX breaks out against the 60/40 Portfolio and Silver breaks out against the 60/40 Portfolio it will likely open up more speculation in this sector and laggards will start to perform. I suspect that remains months away.

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Thank you for reading.

I wish you all the best in 2025 and beyond.