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Pacific Empire Bets on the FutureBob Moriarty Every day I wake up and look around feeling like I am participating in another episode of Bizarro World when I read the news. Last week there was a prosecutor reporting that pretend President Biden should get a bye on facing criminal charges for mishandling top-secret documents going back as far as when he was Vice President. It seems the DOJ concluded after five hours of interviews that Biden was too senile to be tried. The Big Guy couldn’t remember when he was Vice President or when his son died. In this circumstance I can certainly agree with the DOJ. I can’t remember when his son died either and I go out of my way to forget when he was Vice President. He's the guy the Democrats feel is perfectly suited for another term as the pretend leader of the most dangerous country in the world. What could possibly go wrong? Trump on the other hand is still reasonably compos mentis so he should be charged with criminal charges for doing exactly the same thing as The Big Guy or Mister Ten Percent. A couple of week ago it was dinken Blinken suggesting the US defeat in Ukraine along with most of the rest of NATO was a “Win-Win” for the US because of all the jobs that would be created in the Military Industrial Complex. He said that about the same time reports from the conflict indicated Ukraine has lost about 500,000 dead soldiers and perhaps another 500,000 injured. I do wonder how the Secretary of State would define as losing the war. The US only lost 416,000 killed in WW II lasting twice as long as the current fiasco. Every time we near a turn in the gold market I have an idiot from Canada write me to let me know how stupid I am since I write about resource stocks and how brilliant he is. This time he read me the riot act because he lost $50,000 on B2 Gold based on my recommendation. While I felt bad for him for about three seconds, I did feel it appropriate for me to mention to him that I had never ever recommended B2 Gold. Perhaps he should have complained to someone who cares. He clearly has me confused with someone who gives a shit about his investment decisions. I stole a brilliant chart from an article by Jay Taylor. Don’t even try making me feel guilty. He stole it from Hussman. If you read the Jay Taylor article carefully you will understand Hussman was comparing the total S&P return to the treasury return going back almost 100 years. In only two years, 1929 and 2000 were the results similar to that of today. In other words, the S&P is more dangerous than at any period going back to 1929. I suspect the mad rush into seven stocks is plucking money that could have gone into resource investments. (Click on images to enlarge)
While I suspect over the medium-term that the totally irrational stock market was plucking funds from the resource space, someone I admire sent me a chart showing just the last month move of funds into Clipto currency ETFs and out of resource ETFs. In short because the time line is pretty hard to read, in the last month almost four billion dollars have flowed into the Clipto ETFs as almost two billion have flowed out of resource ETFs. So, if you wonder why my forecast of a move higher into February/March was totally wrong, there is your reason.
There is an advantage to having done this for a while because if you pay attention eventually you realize that stocks go up and stocks go down. Junior resource companies are like baseball cards, you have to trade them if you want to profit. And that is as simple as buying when things are cheap and selling when they are dear. Which is exactly what most investors ignore. It is too simple for them. They insist on buying at tops and selling at bottoms and it’s all my fault they lose money. Sigh Someone did a chart of the HUI over gold for me over the past twenty years. It clearly shows what bottoms look like and more importantly it shows what happens after the bottom. Because of all the money coming out of gold and resource stocks as a result an incredible buying opportunity is near. As the chart shows, 2009, 2015 and 2020 were brilliant times to make your fortune. And literally the greater the plunge, the higher shares rebounded.
But there is some good news. People who are not blinded by the dust stirred up by the herd are waking up. A week ago, I got a most interesting phone call from the president and CEO of a tiny $3 million market cap junior named Brad Peters. The company is named Pacific Empire (PEMC-V) and sells for $.03 or so. I was taken aback because twenty or so of my advertisers have dropped off in the last six months or so believing that it isn’t worth spending money in a declining market. Brad Peters explained that he understands that resource markets crash on a regular basis but that is the time to invest and he wanted to increase the visibility of his company. I didn’t have to pitch anything. We were on exactly the same page. The company has several projects located in BC in Canada. Their primary focus for now is on the Trident copper gold project in central BC near Mt Milligan on the same trend. Centerra Gold, Teck and South32 all have projects located nearby. PEMC actually had an option on the Trident project from 2013 and optioned it to another junior just as the resource market was cratering. The other company walked away in 2015 and returned the property to PEMC. PEMC couldn’t pay the money for the required exploration and claims fees and walked away from the project themselves only to complete a 100% acquisition of Trident in 2022 for nothing but a 2% NSR. No work requirement and no money or shares up front. I think that is probably the best deal I have ever seen a company make. Trident is in the midst of elephants with porphyries all over the trend. A number of drill intercepts from various companies over the years at Trident show copper up to 2.73% often associated with gold. Brad Peters actually took a gold pan and panned for gold down slope from their primary drill target. He was kind enough to send me a picture of the gold he recovered. I’ve been a placer miner. This gold has not traveled far and it’s pretty coarse. That is an excellent sign for the drill program they have scheduled for the summer of 2024.
I enjoyed my chat on the phone with Brad Peters a lot. He is running the company as if it is a $100 million company, not a $3 million company. He has an excellent property picked up on brilliant terms in an area with a number of serious companies operating. There had been a lot of technical data put together on the Trident project and it is ready for the truth-detector to be put to work this summer. Pacific Empire has serious management and a superb technical team. Trident has the potential for making this a $50 to $100 million project with a few drill holes. We need copper and they seem to have it. Right now, the company is worth $3 million. We are at or near a turning point for resource shares. I expect raising money to be a lot easier in 2-3 months than now as the clipto crowd and magnificent Seven buyers realize they are chasing a whisp, not an investment. It’s always important to realize that in investing, all things change. Pacific Empire has a comprehensive website with a lot of good information. I highly suggest all interested investors go through their presentation. While the company will need to raise some more money for their summer drill program, I expect the financial markets will be more favorable in the near future as we bottom in resource stocks. Pacific Empire is an advertiser. I have participated in a recent private placement and naturally that makes me biased. Do your own due diligence. Pacific Empire Minerals Corp ### Bob Moriarty 321gold Ltd |
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