David Lin (Uncut) 12-14-2024

U.S. Dollar Will Look Like ‘Pump And Dump Stock’ | Morgan Lekstrom

This isn’t gold versus Bitcoin. This is a generation versus another generation. Young generation saying, I don’t like gold. Old generation saying everything’s based in gold.

Look, I’m not saying the US Dollar is going to be completely gone and obsolete. That’s, I don’t, I don’t see a world that, that happens right now. There’ll be some very interesting decisions made out of, you know, foreign countries and the US that will create a volatile US Dollar market. And I think the more supportive gold markets, heck, I think 3 to 5,000 is attainable.

We’re back with Morgan Lex from president of Next Gold and we’ll get an update on not just precious metals, commodities, but also the economy, the US Dollar, interest rates and how investors should be positioned into 2025. Welcome back, Morgan. Good to see you.

Thanks for having me. Again.

We spoke about last time you were on the show a couple months ago, the idea of $5,000 gold, gold has been tapping on 3,000’s doorstep for quite a few months. We’ll talk about that and we’ll talk about the idea of central banks buying more gold into 2025. Let’s talk about these topics again. The dollar is an interesting beast.

Let’s take a look at my screen. The DXY has been rallying strongly from the end of September all the way to basically the last days of November. It’s been consolidating around this pattern. The dollar really liked the Trump win.

As the election grew nearer and his prospects of winning grew stronger, the dollar rallied. And this kind of runs counter to some of his policies, especially among people in his cabinet who want a weaker dollar. And so on one hand they want a weaker dollar, but on the other hand, the dollar sees strength through his policies. Tariffs, for example, are bearish for other currencies on which the tariffs are imposed.

So I want to get your dollar outlook first.

Oh man, I don’t know if you’re going to like it. That’s the problem. Look, the dollar going up and being strong the way it is with Trump coming in I think is a very short term, short term play. The US Dollar in itself being continually getting stronger and stronger only incentivizes things like brics.

It only incentivizes tariffs from other countries. Look, you have a super strong US Dollar. I compare it to Switzerland and I know the Swiss are going to kill me because I have Swiss friends for this. But Switzerland has always just been a steady state up every other currency devalues around it.

They’ve only got 25 million people. So things can get very expensive there. And it’s fine when you have 375 million people and your dollar keeps going up and up and up and you’re devaluing other people, at some point people will unhedge from that and they will say, no, this is crazy. So I think that the combination of tariffs and other actions will be the, the driving force to drive it back down.

A good example is Canada. I mean, our dollars trading on a 41% or 1.41. It’s been almost forever since that’s happened. Our currency is getting devalued and they’re one of our major, they’re our major trading partner.

So I do believe fundamentally that the US Dollar is going to look like a pump and dump stock. It’s going to go right up and it’s going to fall off and trickle back down. I know that’s a joke from the junior, the junior markets on the CSE or maybe not the cfc, I shouldn’t say that, but on another exchange somewhere. But they’ve all got the same hockey stick trend where they go up and they come back down.

So I think it’s an overreaction to Trump coming in. I do think that the correlations you normally see of gold to the US Dollar are not working anymore. They’re not the same. US Dollar goes strong, gold goes down.

Gold is high. Like let’s be real gold at $2,700. We’re just hitting it again. It did pull back since Trump came in and then it went back up.

But traditionally, US dollar goes up, gold goes down. US dollar goes down, gold goes up. What I think the price of gold now represents is the world’s uncertainty of the US Dollar. The price of gold right now is the world going.

Yeah, we’re pretty uncertain of what’s going to happen here and we’re nervous. So normally they’re not in parity like that, they’re inversely proportional. But now they seem more, I wouldn’t even say directly correlated. I think the price of gold is correlated to the risk that the US Is bringing to the global, global market right now.

Or maybe the risks of other things happening around the world coming and bringing those risks into the US Market. One or the two.

And that’s what I mean. And that’s what I mean. Not, not just the US in itself. I’m not saying it’s going to implode.

I’m saying that there’s many outside factors. BRICS is one of them. That could bring a lot of instability into the US dollar. And that’s where a lot of the other currencies around the world go back to gold and go, you know what, this is the hedge.

You take a look at this gold versus US dollar chart. It’s extraordinary because you’re right, the gold and dollar have been inversely related in the past. Gold is seen as the anti dollar asset by the gold community. And so this year, barring a few exceptions, like later in the summer, for example, in the spring, the fall rather, they’ve been moving up together in tandem.

So clearly they’re both reacting to something else. What was that? Something else?

Sorry, which part were you talking about?

The reaction this summer, the entire year they’ve been going. Basically look at this chart here. Year to date, right?

Yeah.

Gold climbed the dollar. The DXY is also up year to date, the DXY is the bar chart and then purple line is gold. So if you take a look at gold and the dollar in the past they’ve kind of, you know, there’ve been periods when they’ve moved in opposite directions completely. Like for example, 2022, the dollar fell and gold climbed.

This year there was a massive divergence between August and September. But on the year they’ve moved up together.

Let’s back that chart back out to more historic. Look at the proportions there. They’re generally inversely proportional. And what you can do if you go out even further, go out to like 2015 if you can.

Okay.

Or 2012, like so you have, look at the. They have convergence points. They do.

Right.

And we’re at one of those convergence points and those are usually political upheaval. That’s potential war around the world. That’s trade wars. These are Covid again, they tend to go more proportional to each other around significant economic turning events.

That’s what I believe it is. 2019, 2020, 2021, the US dollar went down, gold went down, US dollar went up. Makes sense again, inversely proportional. Before that, inversely proportional.

Before that, inversely proportional. If you look at the mean, they’re more inversely proportional than they are proportional to each other and how they move. Now this to me says that eventually either one or two things is going to happen. I sure don’t think gold is going to get smashed down.

I think the US dollar will come back down to meet it and then they’ll go inversely proportional again. So let’s say gold stays at round numbers. Gold stays at $2,700. All the miners are making a buttload of money.

The China keeps Buying gold. I actually think that’s the way that they could use to pressure the US dollar back down. Now, the US could also go back and say we’re going to rehedge to gold and the US dollar becomes strong again. Right now it’s too flip floppy on a fiat system.

But I do think the proportional differentials here are truly based on economic events. 2008, big differential. You see that in all these economic events. And I’m not talking economics in the world’s going to end or someone nukes someone.

I’m talking like the bitcoin market went nuts or it really comes down to risk threshold for investors. And when risk goes up, uncertainty goes up. And when uncertainty goes up, people want more gold.

Right. I have to get your take on bitcoin in just a minute. But when the, when certainty goes up, uncertainty goes up, people rush to gold. Why wouldn’t they rush to the dollar though?

Let’s just take that concept. The dollar is the ultimate safe haven currency, strongest in the world. Treasuries historically have been a safe haven play. Wouldn’t that be the first safe haven they go to?

I would say no. Nowadays the debt cycle is too high, the US sovereign debt is too high. You can’t have a safe haven currency when it’s been diluted that much. It’s like a stock in the game.

You get to a billion shares, you’re sitting there going, oh, I’m going to have to fix this. And eventually it’s not a good thing. I think the way the US burns money and make no mistake, whether it was Kamala or whether it was Trump getting in, they’re going to spend money, they’re going to need to, they need to update the infrastructure. There’s 380, 390 million people there.

And there’s aging infrastructure in a lot of different areas. So there is money that will be spent and that will be printed. U.S. treasury money.

Now why don’t they go directly into the US dollar? Because when the US dollar falls, therein is the problem. Gold goes inverse to it. Right.

Gold has an intrinsic value. The US in this case, and this is where I think we are so different right now compared to any other time in modern history. Not, not full history, is that the US in itself is threatened by bricks. If you watched an interview done by Gold Telegraph, Alex Deleuze and Judy Shelton, really amazing interview they did there.

And you can watch it on Twitter. He’s a good friend of mine, amazing guy, but he did an amazing job in that interview. And you can tell the US is concerned. Brics, you can’t have half the world rally against you and not be concerned about it.

They’re rallied against US dollar supremacy. And this happens when you over debt your currency again. I go back to Switzerland. Consistent currency all the time.

Everyone else devalues around them. That’s because they’re well a rich ass country. But you know, there hasn’t been a huge amount of immigration there. There hasn’t been a huge amount of economic stimulus needed because it just works.

The US is threatened by brics. In which way? In which way? Economically, militarily, Politically?

Oh, I would say economically. I mean I don’t think, I think, you know, pull out the Middle east and from a war zone right now. I don’t think anyone wants to wage war. The modern day war is economics.

Yeah, it’s not, it’s not grab your rifle, put a guy in a trench, like what does that. That’s actually uneconomic. That’s the reverse of economics to me. Why?

Why? So yeah, okay, you’re gonna have a spike in your economy quickly while you’re trying to do arms and munitions and all that other stuff and Lockheed Martin gets richer and stuff like that. But, but then you’re going to have a massive drought of economy because you killed off a bunch of people. And what are you going to do now?

What you may do is impose sanctions and tariffs on other countries. That’s a subject of academic debate as to whether or not that’s actually effective in the first place, but very academic. Trump said that he wants to impose a 100% tariff on BRICS if they abandon the dollar as their primary currency of trade. What’s your thought about that?

I like to frame it this way just so we have an understanding of the world and the history of the world. China, India, a lot of these big countries, Brazil, they’ve been around for 500 to 1,000 to 2,000 years. They’ve seen these what I call blips in the economic cycle. You know, China has the ability to have a wherewithal because of the way their government regime set up.

They can take a 10 year blip, the US cannot. That is the difference. We run just like the stock market, we run on cycles. And they’re about 10 years generally now where I think China and Brazil and all the other BRICS members have an advantage.

And what I think China was doing was they’re slowly, you know, they’re pulling away things like critical metals. What they’re slowly doing is they’re diversifying Their outer supply chain, as in who they supply. So they, they probably have an internal model saying you know what, we’re willing to lose 25% of our supplied goods if we get off the US dollar. And that’s why they’re aligned with India, because it’s a huge economy.

And Brazil another huge economy. So you can transfer all those goods that were maybe going over to the United States, you’re going to take a 25, maybe it’s a 50% haircut and you transfer it over there and you make yourself unreliant so they can get sanctioned all day. It’s only going to hurt the US economy. It’s only going to hurt the US the people that pay for the goods.

If you can’t make those goods internally, you have to buy them externally.

What are some other ways that these BRICS countries can retaliate against the US once tariffs are imposed on them?

Oh, you’re going to laugh at this. I’m contrarian on this one a little bit.

Okay.

They could push down the price of oil.

Right.

And everyone goes, well, why would they do that? Well, you’re taking away the oil supremacy that the US has. You’re also hurting Saudi Arabia, but yeah. And they got a lot of money.

They can again, they can wear with all, they can probably withstand it. They’ve diversified into grain, gold, tons of different things. So that’s why they’re rehabilitating.

Think the American people would like that? Wouldn’t they? I’m not complaining about a lower oil price.

No, I don’t think they would. No, I don’t think they would, no. Because the problem is, is the cost of actually extracting the oil is X. Right?

Right.

It’s not $10 a barrel, it’s probably like 50.

Right.

You drop it to 30, you try that for five years. Yeah, okay. Gasoline gets cheaper, but that’s not the big driving cost in the whole thing of the prices. It’s labor, it’s the dollar, all of it.

So yeah, maybe wherewithal for 10 years, low prices in oil, they bankrupt a bunch of companies real fast.

How does it affect the mining sector, the trade war? I know that a lot of silver comes from Mexico and then the tariffs across the board, well technically that could affect mining companies in Mexico if they ship it back to the U.S. honestly.

I’ll say I’m unsure, I’m unsure of how I think that would affect it. It could probably drive the commodity price significantly higher, especially in things like silver because of the natural uses of silver. And it Just so happens I actually have the Bernstein book right here in front of me.

The premium must go up on us on physical.

That’s what I’m saying. Yeah. So I mean on the net physical it will go up. I do, I think putting a tariff on Mexico or Canada for your commodity imports, I think that’d be super counterintuitive.

Why would you do that? You’re going to make it more expensive for people. You’d want to bring it into your country to, to refine, not push it to others. So instead of importing it to the US they might just ship it to China, Mexico.

Yeah, but could China say we’re going to, we’re not going to buy any gold coming out of anywhere else besides friendly countries to China. Right. What would that mean? What would that mean for the gold mining industry?

I don’t know how much of the gold that’s currently being produced right now is, is only sold to domestic markets. I’m actually not sure. Do you know what that is versus to China for example?

You know I probably, I probably should know that but it’s an ever changing number. I’m unsure of that exact number, so I won’t quote.

So, so how does, how does it work? A North American miner gold company, let’s say, well the big ones have operations all over the world but let’s say a gold mid sized producer operating in Canada, they mined the gold. Where does that gold go? Where is that, where’s that sold to first?

Exactly where it came from. Into a vault in the ground.

Okay. All right.

We mine it to put it back in the ground and safe haven. It’s kind of actually a crazy cycle when you think about it.

That’s a good point.

Yeah, it’s like hey guys, we really got to take this out so that we can put a big metal thing around it and put it in a vault because that makes the most sense. You know there’s obviously industrial applications, jewelry, all that other kind of stuff. Yeah, it goes everywhere, it goes to the reserves, it goes to, you know lots of brokers and traders trade gold around the world. You have the futures market, you have stuff to do calls on.

So it kind of gets spread around. There’s a lot of bullion buyers.

Okay, a few more questions the markets and I want to get your take on where your updates on next gold today. Take a look at Jerome Powell on bitcoin and gold. Take a listen here.

Dollar war in the Federal Reserve itself.

In terms of the system. What do you think of that idea?

I don’t think that’s how people think about it. I mean it’s, it’s so, you know, people use bitcoin as a speculative asset, right? It’s, it’s like gold. It’s just like gold, only it’s virtual, it’s digital.

People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold. That’s really how I think of it.

Gold and bitcoin are competitors according to him. What’s your response?

So you’re actually breaking that down to old versus new. This isn’t gold versus bitcoin. This is a generation versus another generation is what it is. Young generation saying I don’t like gold.

Old generation saying everything’s based in gold and the young generation creates bitcoin per se. Do I think it is a competitor for it? I think it is too volatile to be a competitor for gold. Volatility breeds loss at some point, whereas gold is something you can physically touch and put your hand on.

And like Jerome Powell said, you can trade it physically, you can do things with it. We live in a digital world. We live in a digital payment world with made up numbers that go across your bank account. And when you go try to go to the bank to pull out more than $10,000, they look at you and go, what are you using this for?

Same thing, bitcoin. I’m not negating the fact that bitcoin will be a part of our society and it’s a speculative asset in a sense. I do think there’s some utility especially there’s a lot of utility in blockchain tech for sure. Bitcoin I think will be one of the only coins that actually survives out of all the meme coins and all the other stuff.

It’s, it is feeding. My opinion is it is feeding the animalistic nature of, of the slot machine to us. That’s what a lot of the currencies are in crypto. But again, I’m not saying there’s not a utility.

There are utilities for some. Cryptocurrencies is an amazing way to trade. It is, it is an amazing technology in the sense of how fast transactions happen. You don’t need the CDF’s anymore.

Ledgers are openly available. Like it’s very interesting. Do I think it’s going to take out gold? No.

Do I think they will coexist? Yes.

That’s the other argument against, well, not against, but the argument for Bitcoin and gold. People ask me why are we talking about this Debate now in 2024, 2025. Just own both if you have different use cases. Okay, so speculative animalistic spirits versus conservative risk risk off, safe haven.

You know, they’re both at all time highs this year though, right? How does that make sense? Just intuitively think about it from investment perspective. You’ve got people wanting a risk off asset like gold and you’ve got people wanting risk on like bitcoin.

How can you have both at the same time? What’s going on here?

Well, it’s actually a pretty simple answer. Look at the volatility of gold or sorry of bitcoin. It’s the casino, what is it? Two years ago it was 17,000 bucks or whatever.

Now it’s 96,000. Gold didn’t go up 800%. Gold went up incrementally as destabilization in the economies have happened and printing the money and all the things that make gold move like it does. So yeah, you know what?

Hey, I want to take a big gamble on something that a lot of people in the world are taking a gamble on. Okay, I’ll buy gold at. Buy Bitcoin at 20,000 bucks. Hey look, I look like the smartest guy in the world.

It’s $100,000. Great return. Not arguing it, amazing return. You’d actually in a snapshot you would have made more money in bitcoin long term.

The volatility, if you don’t get in and out at the exact right time, there’s no physical back to it. I don’t think it’s been long enough to tell, but I would hazard a guess based on the volatility in the four year cycles, that is the crypto cycle versus the ten year cycles, that is the commodity cycle. I think your volatility index on crypto is actually going to become worse and worse. I know the ETFs are buying it and sailors buying it and all them are buying it.

That’s a stabilization metric. They’re trying to buy it to stabilize it. That’s the only thing.

And the risk to that. I’m not arguing against bitcoin. The risk to that is of course if they sell, that’s going to move the market even more. If larger entities hold a larger accumulation or percentage of the total float, if you want to call it that, then we’re going to get more concentration risk.

What about for gold? Gold has not broken up to $3,000 yet. Is that the ultimate ceiling for you?

No. Look I think it’s been consolidating around here. When Trump got elected, it went down a bit for a blip of a second. You got to Remember gold at 2500 or gold at 2700 are very profitable for mining companies.

And it’s a very good position to be in. Now, what do I think the ceiling of gold is? I think it’s really going to depend on two things. Two big things, a lot of other micro things.

What bricks does if they decide they’re going to hedge to it and what they’re going to do to the US Dollar and the tariffs. The move that Trump makes to try to reign supreme with the US dollar, like I said, I think it’s going to go up and then it’s going to candlestick back down. So it’s word. Look, I’m not saying the US Dollar is going to be completely gone and obsolete.

I don’t see a world that that happens right now. But I’m saying that you think it’s Vol. It’ll be volatile this next few years. There’ll be some very interesting decisions made out of, you know, foreign countries and the US that will create a volatile US Dollar market and I think a more supportive gold market.

So do I think 3,000 is attainable? Heck, I think 3 to 5,000 is attainable. And what that does to the silver market? Well, you know exactly what that does to the silver market.

They correlate. At some point, the silver market outperforms it.

So onto Next Gold. Now, this is a good segue. Let’s talk about how the mining sector is affected by the ongoing, the new trade policies with Trump. And we’ll take Next Gold as an example.

First of all, you have some drill results to report as well. That came out in early December. But the mining sector overall, how do you see that landscape, how do you see the mining sector landscape changing in the next year or two in light of Trump’s win? Right.

We spoke last night before the election. What changes do you think could be implemented? What changes will you be looking forward to as or what would next go be looking forward to in the next year?

I think there could be a race like let’s talk about Next Gold first. I mean, great, great drill results. High grade over big whips depths, depths.

Below Goliath resource, Goliath gold complex. Give us an overview.

At Goliath. Yeah, Goliath, there’s 3 million ounces of gold there between two open pits that will be built. And at Goliath itself, the Goliath Pit, we stepped down 70 meters below the resource, hit a visible gold vein or hit visible gold. Sorry.

And you know it was strong results like 6 meters of 56.3 meters of 50.8 grams gold. That’s a, that’s a high grade hole but it shows that it’s getting higher grade at depth. So we believe there’s a much bigger system there in the end. But that isn’t, you know that that’s one step of our news.

We’re you know closing our transaction or closed our transaction with Signal gold, bought another 3 million ounce gold deposit that again both of these are now the most near term permitted projects in Canada. So you have an optimal time to be building and, and putting together a gold mine. What I think will happen is I think there’ll be something like a gold arms race. Whereas BRICS says I’m going to hedge to gold, the US goes I want to keep gold local and A gold goes up.

But B you get to a point where localized supply, North American supply I think will be in a demand state versus the equities right now.

So what does that mean for the mining sector? Again the mining. The gdx, GDXJ have underperformed gold for up until I think earlier last quarter and then they’ve caught up. But for, for a long, for a long time.

Yeah, for a long time. Throughout the year mining investors were complaining that their investments have not caught up with the underlying. So what does what you just said is gold arm. Gold arm.

Arms race. How does that translate to the equities?

So and correct me if I’m wrong, I believe the GDX has out. Has performed well because that’s the composite of the large and mid tiers. But the GDX J the juniors have completely underperformed. So you’ve got this rare time in the world where you have high prices of gold.

And I keep holding my highlighter here but you have highlight. I was trying to highlight something. You have high prices of gold.

Yeah, it’s yellow like a rock. Yeah, I get it. Yeah.

It’s uranium. No. And you have low prices of the assets. There’s very little times in history were gold and the assets haven’t moved together.

This is one of them. Which means companies like Next Gold which we just put together to be a mid tier developer. We were able to get projects that in any other cycle we would not have been able to get at the prices we got them for.

Yeah.

Which means re ratings happened and I.

Okay, let’s, let’s pull up this chart so I’ll let you talk while we have this chart on the screen. And people look at this chart as a reason to not buy gold miners junior and, or senior and you can challenge this if you like. But if you just take a look at this chart right, the numbers show that the gold price has continuously climbed to new all time highs in the last 15 years or so. This goes back to 2007.

The GDX is halfway to its previous all time high in 2011. I mean there’s two ways to look at it. One is just that this is actually the fair value here and this was just overvalued for whatever reason back in 2011. But investors who bought in near the hype then, they’re down now.

Whereas if I bought gold in 2011, I’m still up. So people look at this, people think, well, gold is a long term investment. It’s a long term hedge against dollar declines or inflation or whatever. It protects your wealth long term.

But then maybe we can leverage that with the gold stocks and over the long term that just hasn’t done that. So I’ll let you comment on why we should still buy or consider this investment vehicle at all.

Well, because of the scarcity factor that’s happening in the industry. The GDX being down again, majors versus mid tiers cash flowing entities. The majors are cash flowing like machines right now. They don’t, they don’t really care necessarily about their.

Not, not, I’m not, and this is not to be categorized or classified incorrectly. If I was cash flowing the way they were, yeah, your share price would automatically keep up and it hasn’t gone up the way the gold price has because again I go back to the casino effect. There is a ton of risk capital out there and it’s investing in things like bitcoin which back to the point of are they competitors in a sense you now have all that capital that would say hey, I’m going to bet on the gold price going up. Which means that juniors or majors are going to go up going, I’m going to bet on bitcoin and mark my words, when that falls down because it’s a cycle and it will, the inversion will happen in the gold cycle in the GDX GDX day and it will, it will catch up to gold.

So I think this is actually the best case to invest. If you look at the difference between the price of gold and the price of the equities, you have $1,000 arb there. That’s relatively, you have a major arb eventually one of them changes. I’m not Oracle or anything like that, but I’m fairly confident that the lack of investment in the junior space and last investment in the mid tier and major space means that gold’s just going to stay high because it’s going to become more and more scarce.

I mean even the largest ones. Newmont, same story. Not at all. Time highs, Barrick.

I’m pretty sure same story. Yeah, really down from all time highs. So to your point, if they’re cash flowing like crazy, why aren’t they, why aren’t their stocks going up?

Well, and here’s the interesting thing. If you sector this into time and you’ve got cycles, there are like 2006, they were going up, but they didn’t go up. They inverted in 2012 where the juniors lost their value and gold started going and the mid tiers and the new months and the barracks, that will change. That will, that will invert again.

Okay, so look here. So in the 2000s, right, they went up together, Gold and Barrick. However, in I’m just using barricade example, I’m not picking on Barrick, I’m just saying it’s one of the largest companies I’m using as I’m a proxy. You know, the gold miners did not pick up this last cycle.

From 2017 to now, when gold spiked to new all time highs, it just. Was that because of the tech sector coming in online, Was that because of cryptos taking away the speculative investment? Or was this an industry specific event that they mismanaged their funds relative to the last cycle?

I wouldn’t say it was a mismanagement of fund at all. I would say it had to do with the sector diversification of an investor’s portfolio. People used to own 7 to 10% gold in their portfolio. They own one now.

Good example. This is actually a funny, funny chart. I bet you if you overlaid an Australian gold company to this, you wouldn’t see the same thing. And you wouldn’t see the same thing because in Australia, the superannuation funds or the pension plans like what we have, have to invest in local commodity projects in the tune of 25 to 50% of the portfolio.

Whereas in Canada, our CPP asked, I challenge you to phone CPP and ask them how much of their portfolio is actually invested in Canada. Huge amount of the CPP portfolio is invested in China.

Yeah, you’re spot on. Look at this. This is Northern Star Resource.

Bingo.

One of the largest Australian gold miners. Okay, now this is a story in itself.

Yes, it is. It’s not.

It’s not over. Yeah. Let’s overlay Northern Star to Barrick. Why the significant outperformance here.

There we go.

Right, okay, so what’s going on here? Can you just summarize for us in layman terms why the Australian gold money sector is doing better than the North American one?

Because of the requirements to invest in their own sector? Because it’s backed by the pension plans, it’s backed by the superannuation funds. Because they still invest in their own country, they still invest in their own stock market. We don’t.

The equities have lost. There’s so much capital that’s lost on the tsx, the TSX V, the csc, the Canadian markets have been left. That is an opportunity. That is the arb.

That is where you make money. Because when the capital piles back in, and it will, because we have great companies on there. We have great gold mining companies. Barrick’s a prime example.

If Barrick was an Australian company, I would imagine it would be. It would be doing pretty damn well. But that’s just. Again, that’s requirements.

Canada could easily say, hey, CPP, you’re mandated to put 10% of the fund into Canadian resource sector. Watch the change. 5%, 1%.

So what’s next Gold story? Right? You’re trying to convince CPP to put a company like Next Gold in a fund or you’re trying to convince the general public to look into the space, you know, do their own research on the space. What’s the story here?

Nope, it’s not about. It’s not about that. Next Gold is setting up to be a producer. And here’s the thing with being a producer.

We’re a developer. We become a producer. You create cash flow. You can give that back to shareholders.

You can create dividends. We do have super strong assets. We have 6 million ounces of gold. We are almost fully permitted.

You get re rated and it doesn’t matter what stock market you’re in, you will get RE rated on that. And that is where it matters, on how you manage your treasury and your money and all the rest. Right? And that’s where your stock will get affected.

But I do think you can hear Frank Giustra, you can hear Pierre Lassonde, all of the mining billionaires right now are out there talking about how Canada doesn’t invest in Canada anymore. And it’s sad. And sure, would I take the CPP investing? Absolutely.

We’re a great company for them to invest in. Actually. Will they? No, because they’re busy investing in everything outside of Canada.

So this is where the mid tiers and majors are starting to show love. They’re starting to come down and go, well we’re cash flowing. Your equities are super depressed in price even though ours are. We’re just making hand over fist money so we can start buying you cheaper.

Yeah.

And when the cycle inversion happens and it will then they just got good deals.

Okay, well Morgan, when can we expect Nick’s gold to come online as a producer?

So we’re in the development stage right now. Final permitting and construction decision Q3 of next year which is very soon. Large amounts of drilling to happen. Closing transactions, a sale of one of the royalties.

Like there’s a lot of non dilutive equity that’s going to or non dilutive cash that’s going to be put into this and then 18 to 24 months from when we build. So you know at 2027 is, is a good number and that in the mining space is very fast, very good. Building a building.

Okay, and the next step before we, before we get there, what’s the next milestone? We have to be watching for Nick for next gold.

Yeah. So again permits, first nations agreements which you know, working really closely with the first nations on those projects. We have results coming out from that from the drilling at Goliath will be starting drilling at Goldboro now. So again you’re going to have a feasibility study, a plethora of news coming out in the next six months of this company and completely transforming it into that developer that we know it as already.

Where can we learn more about the.

Company www.nexgold.com and hopefully on your YouTube channel.

All right, we’ll put the links down below and of course if you’re watching this, subscribe so you can see more content like this and many other shows. Welcome back to the show. Morgan. Good to see you.

Hope to see you again next time. Take care.

Thanks. Anytime. You too.

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