6:15 am Pacific

(Exclusive to BMR subscribers – Not for Distribution or Posting on any Board).

A Trump Energy Play

Drill, baby, drill, and bring down energy costs – that’s Trump’s motto, and it’s Poilievre’s as well.

The world has changed since November 5, so the November 7 news regarding the appointment of a new CEO for MAX Power (MAXX, CSE) takes on added significance.

Having witnessed the Natural Hydrogen boom in his native Australia, which has triggered Fortescue to invest in this growing sector in North America, new MAX Power CEO Mansoor Jan is in Saskatchewan this week to aggressively ramp up MAXX’s efforts to become the first company to drill specifically for Natural Hydrogen in Canada.

His BHP Australia / BHP Chile / Rio Tinto Energy roots are going to help make MAX Power succeed in this Natural Hydrogen space beyond what we even imagined at BMR just months ago.

New MAX Power CEO Mansoor Jan

There could be nothing more “Trumpian” than finding new low-cost energy sources in the ground like Natural Hydrogen through drilling, replacing high-cost government subsidized manufactured “green” hydrogen (of course Natural Hydrogen features even lower emissions than manufactured hydrogen).

Natural Hydrogen will help turbo-charge the energy sector – it’ll become another way for Trump and Poilievre to secure low-cost energy security for North America.

No public company in Canada is better positioned than MAX Power to capture the opportunity in Natural Hydrogen, as emphasized by MAXX’s new CEO:

“My broad analysis of Saskatchewan is that the potential for commercial concentrations of Natural Hydrogen extends well beyond the highly prospective southeast part of the province. My goal is to move expeditiously over the coming weeks to get us to the drill-ready stage as rapidly as possible so that MAX Power, by year-end or early 2025, becomes the first company in Canada to drill specifically for a Natural Hydrogen discovery using the best science in the industry. I’ve seen first-hand the natural hydrogen boom in Southern Australia. In Saskatchewan, we have the right geology, the right policy framework and the right team to make big things happen and build shareholder value in the process.

“We are all in on Saskatchewan with an immediate plan to expand our opportunities there. In addition to this key focus, we will continue to explore ways to monetize opportunities with respect to our initiatives related to Ontario, Quebec and Texas as outlined in the company’s Oct. 3, 2024, news release.”

MAX Power closed last week at 23.5 cents, half a penny below where Mansoor bought in the open market last Thursday according to insider trading reports.

Updates On 5 Other Hot Opportunities 

The BC Bud Corp. (BCBC, CSE)

This one’s interesting – whenever you see sudden record volume like this, with the price pushing higher, instinct tells you something’s up.

Worth taking a punt on BC Bud Corp. (BCBC, CSE), in our view, after last week’s action.

Technically, looks like an important breakout is brewing above the 7-cent resistance going back to the 2nd half of last year.

Spirit Blockchain Capital (SPIR, CSE)

We are extremely bullish on the crypto sector and Spirit Blockchain Capital (SPIR, CSE) has become 1 of our “go-to” plays as a proxy for Dogecoin (DOGE).

SPIR has enjoyed back-to-back banner weeks with heavy accumulation now occurring in the 20’s.

The rising EMA-8, currently 21 cents, is providing great support as demonstrated Friday when the stock dipped briefly to 19.5 cents before rebounding to finish the session in the green at 25.5 cents.

Sol Strategies (HODL, CSE)

We first recommended Sol Strategies (HODL, CSE) when it was trading in the 20’s recently and in less than a month it became a 10-bagger.

Extreme temporarily overbought technical conditions have unwound with the stock finding strong support, as expected, in the immediate vicinity of its EMA-8 and EMA-20.

HODL is smartly managed as it continues to carve out a niche in the Solana ecosystem. Its staking operations will definitely benefit from the news last Thursday that the company is adding new, high-quality validator infrastructure from Cogent Crypto.

HODL jumped 13 cents Friday to close at $1.33.

HIVE Digital Technologies (HIVE, TSX-V)

HIVE Digital Technologies (HIVE, TSX-V) has been 1 of our favorite crypto plays going back to 2017.

We have also correctly called most of its biggest moves since then.

HIVE should be a mainstay in every BMR subscriber’s portfolio, though you do need to trade the swings.

Highlights from last week’s Q2 financials:

Financial and Operational Highlights for Q2 FY2025 (USD):

• Total Revenue: $22.6 million, from digital currency mining and high-performance computing (HPC) hosting services;
• HPC Growth: The HPC business achieved a $9.0 million annualized run rate based on YTD revenues, expanding HIVE’s presence in high-performance computing markets;
• Bitcoin Production: Successfully mined 340 Bitcoin during the quarter, contributing to HIVE’s substantial HODL position;
• Adjusted EBITDA: $5.6 million, reflecting strong financial and operational management;
• Net Loss: Net loss before tax of $7.3 million, a significant improvement over the $22.9 million loss in the same period last year;
• Digital Assets: Total digital currency assets valued at $165.2 million, including 2,604 Bitcoin, in line with HIVE’s strategy to build digital holdings. Using Bitcoin price of $63,300 at quarter end.

Technically, what excites us here is the confirmed breakout above the EMA-500 and a 3-year consolidation pattern that closely resembled 2018–2019–2020 prior to a massive surge in the stock.

Neptune Digital Assets (NDA, TSX-V)

Last but certainly not least in our crypto update this morning, Neptune Digital Assets (NDA, TSX-V) remains in the “sweet spot” for accumulation near its EMA-20 after an important breakout above resistance in the 70’s.

Next key resistance is $1.20.

Note:John, Jon and Daniel hold share positions in MAXX. Jon also holds share positions in BCBC, HIVE, HODL, NDA and SPIR.

4:50 am Pacific

(Exclusive to BMR subscribers – Not for Distribution or Posting on any Board).

Gold Update

Gold is trying to rally out of temporarily oversold conditions, up $32 an ounce at $2,594 as of 4:50 am Pacific.

Below is what we posted November 3, ahead of the U.S. elections, and our views haven’t changed since then. We saw an intermediate top in Gold just below $2,800 (~$3,900 CDN) in late October. The factors that drove bullion under Biden-Harris (growth of government and increasing deficits, inflation, global conflict, a weakening dollar) are not going to apply under the new Trump administration, or at least not nearly to the same degree.

The potential for lower interest rates, lower energy costs and robust equity markets are factors that would provide support for Gold stocks.

November 3 – Gold and Index Updates

Bracing For A Breakdown In Bullion

We’re nervous about Gold because the metal has hit John’s target on his highly reliable 5-year weekly Gold in Canadian Dollars chart.

That chart from John has been our Bible for Bullion going back more than a decade, with so many correct calls over the years.

We need to be disciplined and go with what it’s telling us.

Measured Fib. Resistance (161.8%) on the 5-Year Weekly

is $3,956 (CDN)

That’s a target we’ve been eyeing for a few years now.

Last week, Gold touched $3,900 (CDN) and is currently trading at $3,813. One cannot rule out a sudden run that briefly overshoots the $3,956 target, but if you’re within 5% of a high it’s smart to get out while you can.

We’re sticking to our guns on the view that a significant correction in Gold is likely to occur very soon. This is a good time to be looking at other opportunities in the market. Once a correction runs its course, it’ll be time to pile back in. The risk-reward right now just isn’t favorable.

We recognize this is not the mainstream view (lots of bullishness out there) but you don’t make the big money by following the crowd.

Nov. 17 Update – TSX Gold Index 2-Year Chart 

Over the past couple of months we’ve been encouraging subscribers to take profits on the winning Gold producer trade we got behind in late 2022. The TSX Gold Index nearly doubled from then to last month’s multi-year high of 417 (Oct. 22).

After a correction that started in 2023 and concluded at the end of February this year when the Index landed at 240, Gold producers climbed steadily over the next 8 months from March 2024 into October 2024 with a gain of 74%.

After a consistent uptrend over 8 months to new multi-year highs, the Gold producer trade was “long in the tooth” and faced a high risk of a sharp pullback, especially if Democrats got defeated by Republicans November 5 which is exactly what occurred.

Harris would have been hugely bullish for Gold and Gold stocks. Long-term, exposure to Gold and Gold stocks will remain a key component of a smart portfolio, but there are some immediate challenges under a Trump/Republican scenario (not unlike the situation in 2016).

The 7-month rally in 2016 ended as soon as the Gold Index couldn’t hold support at its EMA-50. That’s where the Index landed just ahead of Nov. 5, and it broke down on the Trump/Republican victory.

Lots of money was made in these producers this year and in the most advanced juniors – hence it was a great time to “CASH UP” and deploy those dollars somewhere else in situations with more attractive immediate/near-term upside potential.

After landing at the EMA-200 last week, a nearly 20% decline in less than a month, it could be time for the Gold Index to rally back up toward the now-declining EMA-50 (currently 370).

However, the Gold Index correction is likely not over – ultimately, a test of the 300–290 area has to be considered a distinct possibility.

8:00 am Pacific

(Exclusive to BMR subscribers – Not for Distribution or Posting on any Board).

Get Ready For A Venture Explosion

Since touching a 15-month high of 627 October 22 (roaring back from an August bottom as predicted), the Venture has eased off 6.8% to around 590 in a healthy retreat driven mostly by weakness in Gold and Gold stocks.

We view the opportunity going into year-end as EXTRAORDINARY with a major breakout above key resistance a virtual certainty, propelled by a variety of sectors and factors including investor enthusiasm over the Trump legislative agenda and the spillover effect into Canada (Trudeau’s days are rapidly winding down, generating a lot of hope for the resource sector and the country in general).

Crypto and energy will be 2 key themes – money making opportunities abound in those areas, and we’ll update specific opportunities tomorrow morning. Gold stocks will become oversold this quarter, presenting favorable entry points, while certain Copper, Nickel and Uranium plays could enjoy big moves (not unlike what we’ve seen in American Eagle) in late 2024/early 2025.

The Venture has just 1 final hurdle to overcome before really taking off – the resistance band stretching from the upper 630’s to the mid-640’s which includes the 1,000-day EMA. Once that’s cleared, it’s off to the races in what should develop into an exceptionally strong finish to the year and an explosive start to 2025 (tax loss selling should be relatively subdued this year with December’s lows likely occurring very early in the month).

Algorithms which have holding this market down since its 2021 highs are going to have no choice but to flip positive – that’s already starting to happen. The banks make money playing both sides of the game, so you can be sure they are going to be on the winning side (riding the bull) through the balance of 2024 and in 2025 as the bull cycle becomes apparent to all investors.

Venture 10-Year Chart

A picture (chart) tells a thousand words.

The broader Venture pattern going back a decade is an inverted head-and-shoulders bottom, setting up a really powerful dynamic on a breakout above 640 and the 1,000-day EMA which has restrained this market since mid-2022.

The 200-day EMA, around 580, has reversed to the upside.

10:30 am Pacific

(Exclusive to BMR subscribers – Not for Distribution or Posting on any Board).

Macro Happenings

• President Trump is moving at lightning speed to implement a MAGA conservative agenda that’s going to make liberals’ heads spin, reshaping American society for decades to come, given who has been nominated to his Cabinet in recent days plus the tapping of Elon Musk and Vivek Ramaswamy to head a new government agency focused on regulating and overhauling federal spending (no friends of Justin Trudeau on Trump’s team). In a statement released yesterday, Trump referred to the new agency as the “Department of Government Efficiency” (DOGE – that great acronym in a wink to 1 of our favorite cryptocurrencies that 1st came to life 3 years ago, thanks to Elon). “Together, these 2 powerful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies – Essential to the ‘Save America Movement'”, Trump wrote. “I look forward to Elon and Vivek making changes to the Federal Bureaucracy with an eye on efficiency, and at the same time, making life better for all Americans”;
• Bitcoin continues its post-election rally, topping $90,000 for the 1st time today. As of 10:30 am Pacific, BTC is up 3.4% at $92,769. Dogecoin, meanwhile, climbed as high as 43 cents this morning (currently 40 cents) and is now up more than 250% over the past month;
• U.S. consumer prices edged up in October after having recorded the slowest rate of growth in 3.5 years in the previous month, a sign of how inflation continues to move lower on an uneven and bumpy path. The latest report likely won’t derail another interest rate cut from the Federal Reserve in December. But together with solid consumer spending and steady hiring, firmer or stubborn inflation could kick off a bigger debate at officials’ next meeting over whether to slow the pace of rate cuts early next year. The Labor Department today reported that consumer prices in October rose 2.6% from a year earlier. That marks a pickup from the previous month, when the consumer-price index was up 2.4%. Core prices, which exclude food and energy items in an effort to better reflect inflation’s underlying trend, were up 3.3%. Both results matched the expectations of economists polled by The Wall Street Journal;
• The potential return of Stephen Harper: Former Prime Minister Harper may become the new chair of the Alberta Investment Management Corp., following the UCP government’s dismissal last week of executives and entire board of the public sector pension fund manager. Sources close to government say Premier Danielle Smith has wanted Harper to take on the role for some time. AIMCo’s board members have to be free of any potential business conflicts, so that’s something that apparently still has to be worked out with Harper;
• The National Post’s Michael Higgins hit the nail on the head this morning. “Those who love Canada will remember the sacrifices of our forefathers; those who don’t will become school Principals. Left to our virtue-signalling elites, our hapless leaders and our ignorant educators, Canada would have forsworn its solemn duty to remember the dead and honour those who served. But what can we say to the likes of Aaron Hobbs, the Principal of Ottawa’s Sir Robert Borden High School, whose characterization of Remembrance Day was that it was usually about ‘a white guy who has done something related to the military’? Hobbs’ insult to every Canadian who has served and serves still was made in defence of allowing an Arabic-language Palestinian protest song to be played during a Remembrance Day assembly at the school (the only song that was played). Only after righteous anger ensued did Hobbs issue a pro forma apology. Thankfully, ordinary Canadians are less susceptible to the vagaries of woke culture and DEI (diversity, equity and inclusion) policies, and understand that bravery, duty and sacrifice are virtues that require us occasionally to pause, reflect and honour those who served.”

Spirit Blockchain Capital (SPIR, CSE)

BMR subscribers had a chance to grab Spirit Blockchain Capital (SPIR, CSE) in the low-to-upper teens last week. This morning, it touched a high of 34 cents on fresh enthusiasm around DOGE and the potential of this company to really make an impact in the crypto sector.

SPIR is up 3.5 cents at 29.5 cents as of 10:30 am Pacific. New support appears to be in the low 20’s, so any modest pullback on profit taking should be embraced if you’re a speculative investor who can handle volatility (Jon has sold half his holdings to recover his original investment, now playing with house money).

At some point in situations like this, there’s always a “shakeout” like what occurred recently in Sol Strategies (HODL, CSE). Those are typically great opportunities for accumulation (though exact timing is difficult to predict), and they usually land at 1 of the short-term EMA’s (8, 20, 50).

NexGen Energy (NXE, TSX)

It’s really hard not to be bullish about NexGen Energy (NXE, TSX) – emerging new discovery in the midst of a Uranium bull market that should continue for an extended period.

The Trump administration is expected to firmly embrace Uranium as more of a go-to energy source, and that’s bullish for our favorite Uranium stocks including NXE which continues to expand on a new discovery 3.5 km from its world class Arrow deposit as reported yesterday.

The Uranium ore market is expected to continue substantial growth over the next several years. A fresh report from the Business Research Company stated: “The Uranium ore market size has grown strongly in recent years. It will grow from $1.11 billion in 2023 to $1.21 billion in 2024 at a compound annual growth rate (CAGR) of 9.5%. The Uranium ore market size is expected to see strongly grown in the next few years. It will grow to $1.81 billion in 2028 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to government policies and incentives, focus on carbon emission reduction, geopolitical stability, exploration and discovery of new Uranium deposits, public perception and social acceptance. Major trends in the forecast period include advancements in nuclear technology, development of in-situ recovery (ISR) technology, focus on Uranium enrichment technologies, increased scrutiny on environmental and social impact, and diversification of Uranium end-use applications. The growth in the historic period can be attributed to the nuclear power plant construction boom, the cold war and military demand, the Chernobyl and Three Mile Island incidents, global economic trends, and changes in the regulatory environment.”   

NXE Short-Term Chart

High probability of new highs in NXE above $12 by year-end.

NXE is off 33 cents at $10.27 as of 10:30 am Pacific.

Note: Jon holds share positions in HODL and SPIR.

Lest We Forget

Today in Canada (Remembrance Day) and the United States (Veterans Day) is a day that has been set aside to honor those who have served and are serving in our respective armed forces – it is their collective bravery that has given our 2 great nations the freedoms that we enjoy and often take for granted.

Recently and over the decades, many of our soldiers have come home with all sorts of scars – physical scars, emotional scars, and mental scars. Others have not walked off the plane onto North American soil but rather have been carried off in flag-covered coffins. They have paid the ultimate price. They have given their lives for freedom.

The other common name for this day of course is Armistice Day which marks the date and time when armies stopped fighting World War I on November 11th at 11:00 am in 1918 (the 11th hour of the 11th day of the 11th month). Ten million combatants would die, including 60,000 Canadians and 116,000 Americans, before the “Great War” ended with Germany’s defeat on this day 102 years ago. The last 100 days of that war was an epic Canada-dominated finale that began with an all-out attack on German positions on August 8, 1918, a major turning point for the allies.

Here at BMR we hope that you will join us as we remember and honor our men and women who have served and who are serving in our armed forces, protecting our continent and standing up for freedom and liberty throughout a world that is more dangerous than ever. We are truly grateful for their bravery and sacrifices.

May God continue to protect and bless our 2 nations at this critical time in history with threats and conflicts around the world.

Israel – the only democracy in the Middle East – continues to battle a multi-front war against radical Islamist extremists, while attacks against Jewish people around the world (even in North America) have proven, unfortunately, that anti-semitism still exists.

Freedom, in all of its forms and manifestations as we have been reminded, should never be taken for granted.

In Flanders Fields

By Lieutenant Colonel John McCrae, May 1915

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place: and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead: Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved: and now we lie
In Flanders fields!

Take up our quarrel with the foe:
To you, from failing hands, we throw
The torch: be yours to hold it high
If ye break faith with us who die,
We shall not sleep, though poppies grow
In Flanders fields.

Lest We Forget

The BMR Team

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