Translating Yellen's speech into honest English, the motives for this 2018 warning were to oppose the $1T budget proposal, and Yellen actually believed what she said and that the US was indeed careening toward "a debt crisis."
In fact, we were already in a debt crisis in 2018, In October of 2018, FX-hedged Treasuries went negative and Powell's Fed began buying $60B worth of T-Bills/month without calling the same "QE" despite it being QE.
A year later when the repo-spike of September 2019 forced the same Fed to crank out the money printers and once again fatten its increasingly overweight and embarrassing balance sheet. One of the best assets to hold during a sovereign debt crisis is Gold.
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This brings us to one of our sponsors First Mining Gold. There have been some updates on Keith Neumeyer's Gold Mining Company. First Mining Gold (US: FFMGF) is without a doubt one of the most undervalued natural resource companies in the world right now!
Its most important asset is called Springpole, which happens to be one of few gold development projects that can produce 300,000+ ounces per year in a Tier One jurisdiction
What does that mean? Pre-Feasibility Study completed with a NPV 5% of US$995 million at US$1,600/oz gold! In plain English, an appraisal has been done (PFS), which concluded that if gold sells for only $1,600 {not even $1,900 like today}, Springpole is worth just shy of $1bn! This company's entire market cap today is USD$216M, in comparison!
When an acquisition bid is made, it is usually done at 0.5 to 0.7 of NAV, which implies that within 2-3 years, when Springpole is developed to the point of having its permit in place, just that project alone is worth USD$500M - USD$700M, a 300% upside potential, only from this one project!
The thing is that First Mining Gold has so much more than just Springpole project! The company currently has USD$33M in cash, plus the company owns shares of three other mining companies, which are partnering with them on projects. Those shares are worth tens of millions of dollars! Compared with its peers, FFMGF is valued at an 80% discount!! Its price can rise by 400% just to be at par with others! (slide 19)
The additional properties are being developed by partners and are all world-class assets.
Founder & Chairman of the company is Mr. Keith Neumeyer, who is founder of First Majestic Silver, the purest silver company in the world, a NYSE-listed company, with 4,000+ employees, earning Neumeyer the nickname "Mr. Silver." He is a close contact of Eric Sprott and Mr. Neumeyer is considered to be among the best-ever in the business!
Visit our sponsor
https://firstmininggold.com/
TSX: FF I OTC: FFMGF
https://treasurymetals.com/
TSX: TML I OTC: TSRMF
First Mining Gold The Fed's job is simply to distract everyone from what they are doing to the dollar. In 2018, Janet Yellen along with Jason Furman (current economic advisor) observed in a Wash Post Op-Ed that, "a U.S. debt crisis is coming, but don't blame entitlements."
See Full Video Transcript Below
Hey guys welcome to the Silver Report Uncut so I wanted to go over a little bit about gold and some of our problems in our economy and it really boils down to lies it boils down to the fact that it's like the people running the Fed are not even economists anymore but when it comes down to what's going on at the Fed it's not always the best guys that get in there and they're there because they're very very good salesmen their task is to really direct the narrative and to make sure everybody stays pacified everybody stays calm nobody pays attention to anything they're doing because a lot of the times their actions do not meet up with their rationale now back in 2018 here's a perfect example of this we need to look no further than their own words you know back in 2018 Janet Yellen at the time along with Jason Furman was observed in an op-ed that was called a "US Debt Crisis is Coming, But Don't Blame Entitlements" which is so interesting because at this point the spending has largely increased so there was a reason at the time and the motives a lot of the modus for that warning in 2018 were number one there was a one trillion dollar budget that was proposed you know Jerome Powell also said the same thing if you recall he was warning about US debt at the very beginning of this crisis and now all of a sudden they say that that's not going to be an issue right now and to spend big, Yeon also actually believed that we were indeed heading into a debt crisis she still believes the same thing now that's just lying now they were warning at the time that a US debt crisis is coming the thing is we were already in a debt crisis so again more lies the crisis has just simply gotten much higher over the magnitude of three years since the warning was made and of course we do know that they started that whole Repo market madness at the time it was just in October of 2018 when the treasuries went negative pow at that point they began buying 60 billion dollars worth of T-Bills per month and they were calling it not a QE so they said it's definitely not a QE even though it was a QE now that small debt crisis it really accelerated about a year later and then we got into that Repo market madness around September 2019 around the time we were in the greatest economy ever and it forced a Fed to begin to open up those spigots once again and the money printers they cranked up and all this was happening at a time when they were celebrating the strength of the economy mind you this was just a few short months after Jerome Powell had made some ridiculous statement that the Fed's balance sheet reduction was now on autopilot and it was almost immediate from that statement that things started to go sour some of the best investments to own during a debt crisis would be gold and silver to hedge against the growing and impending currency debasement to deal with debt they need to inflate it away so the inflation isn't just showing up by accident it's not just specifically because of shortages inflation is necessary when you need to borrow an enormous amount of debt now when a nation enters a sovereign debt crisis it could prove very very strong for things like gold and we look at the Weimar Republic for example and we fast forward to today and her speech is entirely changed she's speaking an entirely different tune and this year she already confessed that she believes we must reorient our framing on fiscal policy and I believe it might have been her framing that it was negative so plainly speaking she said quote we've been the largest economy in the world for over a century and our national income has risen steadily yet in recent decades a rising share of that income has gone to profits and disproportionate wage gains at the top while middle class families have faced wage stagnation thanks a lot by the way Janet Yellen the federal reserve is the direct cause of this she continued where a global leader in innovation and home to the world's top universities we recently flew a helicopter on mars yet visitors from abroad might be excused from concluding that their airports trains and highways are more modern or better maintained obviously she said this noting things like infrastructure in support of the recent suggestions on more spending and if you really really pay attention they all kind of seem to speak with the same voice now I also wanted to give a little update about one of our sponsors first mining gold so first binding gold is without a doubt one of the most undervalued natural resource companies in the world right now and a lot of it has to do with one of their most important assets called spring poll you see the net present value on their pre-feasibility study it was just completed it showed it at 995 million at sixteen hundred dollars an ounce of gold now currently the price of gold is much higher than that so it put the value of this property at 995 million dollars the thing is the company's entire market cap right now is only 216 million so buying into these shares the net present value is significantly higher than their market cap so it's definitely way undervalued at this current time and it's mostly because it's just in development it's new now when an app acquisition bid is made it's usually done at 0.5 or 0.7 of the NAV this implies that within two to three years when spring poll is developed to the point of having their permits in place the project alone could be worth over 500 million to 700 million dollars that's a 300 percent upside potential only from one single project and first mining gold has way more than just a spring pole project now if you're not familiar Mr. Keith Neumeyer he's the founder of first majestic silver this is the purest silver company in the world it is a New York Stock Exchange listed company with over 4,000 employees of course Mr. Neumeyer is known as Mr. Silver and he's in close contact with Eric Sprott he's considered to be one of the best ever in the silver mining business for me that's actually one of the most exciting selling points about first mining gold is just the fact that Keith Neumeyer knows what he's doing he's got a lot of powerful friends in the mining industry the company also currently has 33 million dollars in cash the company owns shares of three other mining companies and they're partnering with them on projects those shares are worth tens of millions of dollars and compared with its peers first mining gold is valued at an 80 discount this means the price could potentially rise 400% just to be on par with the other gold mining companies now when you look at some of the mining industry analysis that's going on for this company like for example HC Wainwright and Company they just had a target price revision for First Mining Gold and a lot of it was with their partners they secured these strategic partnerships to help begin developing some of these projects and they said that we reiterate our buy rating as we slightly lower our PT to a dollar ten per share from a dollar twenty per share in short while we've moved our model forward to the fiscal year 2021 this positive impact was offset by pushing our estimate for production from string poll to commence in fiscal year 2025 previously it was 2024. this slight reduction in our price target was therefore attributable to updated financials that include greater shares outstanding so they're talking about the prediction for the share price at a dollar twenty per share or a dollar ten per share right now I'm looking at it and it shows the stock price is around 32 cents now if any of our subscribers out there have already invested in first mining gold since we brought this up previously and you did make the airdrop for treasury metals I just wanted to discuss some of what they're doing moving forward because first mining is treasury's largest shareholder 39 basic share ownership now the combination of Goliath and the Goldlund projects is created a premier multi-million ounce gold developer with advanced stage permits at goliath also it unlocks the value at Goldlund 74 million treasury metals it funded to advance the combined goliath golden project and requires no more investment from first mining so that's the advantage of strategic partners there's also 23.3 million shares and 11.7 million TML warrants to be directly distributed to first mining shareholders in July 2021. the retained exposure shares and warrants the 1.5 NSR Royalty on Goldlund and 5 million of milestone payments now one of the key features about this partnership would be co-development opportunities in the infrastructure-rich area of northwest Ontario there's potential for operating synergies and deposits that are located only 25 kilometers apart also advanced permitting at goliath facilities co-development goliath gold project it's received environmental assessment approval by the Government of Canada and it has strong resource expansion potential the district scaled 330 kilometers of a combined land package now I think the TML shares were last trading at 77 cents and some of the highlights at a treasury metals recent p e a summary there's a 328 million dollar net present value at 1600 an ounce of gold they have a low capital intensity pre-production capital expenditures at 233 million there's a 13-year LOM with an average of a hundred and two thousand ounces annual production from years one through nine there's a total life of mine recovered gold of 1.1 million ounces the leverage to gold price is 726 million net present value pre-tax at the present uh gold price of eighteen hundred and fifty dollars an ounce and overall it's just a simple project with significant exploration potential now in my personal opinion when looking at first mining gold it seems like there's a lot more than fluff here it seems like the team knows what they're doing Keith Neumeyer certainly knows how to make a world-class gold mine and if you want to learn more about this company you can also visit their website at firstmininggold.com I'll be sure to leave a link in the description but it's also on the TSX under FF it trades on the over-the-counter market under FFMGF in the if you're in the united states it would be the over-the-counter market and the way you get access to the over-the-counter market stocks would be through traditional brokerages pretty much like your Charles Schwab TD Ameritrades and it's on the Frankfurt Exchange under FMG now of course when it comes to junior gold miners it's always good to do your own due diligence and research in my personal opinion I just believe that these stocks are so undervalued right now considering our current predicament that it's really not that risky especially when you look at things like high risk assets that aren't even as profitable as these gold mines are in the current environment keep in mind a large portion of the gold industry was actually shut down for some part of the year last year and goldmine still had record profits for 2020. these days investing in non-profitable companies seems to be all the rage thank you guys for stopping by and joining us as always stay free
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