Copper Concern and Colombian Core

MSD Extra for April 24 2023

I’ll admit, it was refreshing to be removed from the chaos of American news for the past week. My trip to Collective Mining in Colombia and Los Andes in Chile, despite being a busy travel week, was refreshing of itself to just not be up to speed in the minute-by-minute barrage of breaking news.

Here we are Monday morning, already getting slapped in the face with ring-corner posturing on headlines regarding mainstream media figureheads. Don’t let the news headlines divert you from the bigger issues at play here.

For example, the US Dollar.

$DXY has re-entered critical levels of support. It is a chart I am watching very closely to see how other commodities and gold respond. As I mentioned on Twitter earlier today, I should have much more clarity on the dollar and treasury yields following next week’s FOMC meeting. Every FOMC meeting has become “the most important meeting since the last one.” Because markets are incredibly reliant on Fed Chair comments anymore, that statement is absolutely true.

So while DXY continues to test this support, gold is finding some calmness here around $2000. Gold investors should welcome the cooling here as the chart consolidates. I’m hopeful the price remains around here until the next catalyst, which might be next week’s FOMC.

What is a bit more worrying, in my humble opinion, is the copper chart.

Its obvious we have some economic cracks in the system which is leading to the most expected recession in my lifetime. Dr. Copper is sniffing this out as it appears the path of least resistance is down, rather than up (for the time being).

I am waiting for that moment. I have the companies I want to own or own more of and will deploy when the copper sentiment is terrible. Its not terrible right now. Nor is it exuberant. Keep a close eye on this over the next couple weeks.

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Speaking of copper, I wouldn’t be surprised to see the Apollo discovery (pic above) within Collective Mining’s Guayabales projects be at the top of the recognition awards at the end of 2023.

I was incredibly impressed with the project, the team and the core. I began a position the day following the visit. Collective is a sponsor of the pod and I can now say I am a shareholder, so take that for what you will. I do think that the outcomes of the drilling later this summer at Apollo will really set the precedent for other breccia targets within Guayabales. Watch out for the deeper, directional drilling in the coming months.

At $250/m all-in, good chance we’ll be seeing more of this….

Another note about the trip to Colombia….. I forgot how much I enjoy it. I love that country. I know it has its issues. Every country does of course. But the food. The Sounds. The People. The countryside. Its all amazing and vibrant.

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