JUNE 2024 NEWSLETTER
THE STLLR ADVANTAGE
2 Cornerstone Canadian Gold Projects Capable of Large-Scale Production
18 Million Ounces in Mineral Resources
Attractive Valuation on an Enterprise Value Per Ounce basis
Strong Balance Sheet
Team with Mine Building Experience
STLLR News
May 21, 2024: STLLR Announces Exploration Drilling Results at the Tower Gold Project
May 24, 2024: STLLR Gold Announces Proposed Nominations to the Board
May 29, 2024: STLLR Gold and Tłı̨chǫ Investment Corporation Announce a Solar Farm Installation Agreement at the Colomac Gold Project
June 13, 2024: STLLR Gold Intersects 1.97 g/t Au over 41.5 m at the Colomac Main Deposit and Wide Zones of Mineralization Near Windjammer Central
GOLD COMMENTARY
Since our last newsletter, gold went back and retested all time highs, peaking at US$2450/oz. Our STLLR.AI noted a bear flag, and right after we published gold went to all time highs.
One of our noted readers reached out to us and gently reminded us that nothing out there can predict the price of gold. They’re absolutely right - we’re just looking for smoke and whenever we detect it, we share it here.
Noteworthy headlines:
"Big Short" Bets Big in Gold - Link
Belgium Bullion Buying - Link
Iranian President Death Sparks Haven Rush into Gold - Link
Hawkish FOMC Pulls Gold From Highs - Link
Investors Don't See it Yet? Link
Rate Cuts (BoC, ECB, the Fed next?) - Link
Who's Buying UST? - Link
China Pauses Gold Buying; US Shows Strong Employment - Link
GOLD MARKET
Looking at the technicals, the MACD is looking to tip over (bearish), the RSI wants to dip down (bearish), and the bollinger band width is very wide and tapering off (consolidation). We’re obviously long on gold, and expect this to be a test. A healthy bull run needs some consolidation.
“The trend is your friend, until the end” - Trend support on the weekly is around US$2100/oz. For all we know, it could just consolidate here and continue upward?
From the World Gold Council: Link
USA, Canada, UK all saw net outflows
Asia continues to see large inflows, driven by Chinese demand
Europe is now accumulating gold (Switzerland’s gold ETF grew by 18%+ MoM)
OUTLOOK
STLLR.AI: Our AI based analysis looks at technical, market, and sentiment data and suggests the following:
Consolidation: Anything below US$2100/oz is cause for concern. Any geopolitical event will drive more pressure on price. AI keeps bringing up DXY, and for good reason.
Canada and Europe have begun cutting interest rates, and that has an impact on the DXY, since together they account for over 2/3rds of the DXY. There’s a deglobalization effort being paid for via government spending, and we believe AI is picking up on it. If the USA shifts to becoming a manufacturer again, then expect the dollar to drop. That would force a downward spiral amongst nations to remain competitive.
Ultimately, our reporting suggests consolidation until the next newsletter, to which by then we expect some macro news to be the next price driver.
2024 GOLD M&A TO-DATE
Perseus Swoops in for OreCorp - Link
Red 5 Dives Into Silver Lake - Link
Yintai Gold Adds Osino - Link
Orla Claims Contact - Link
Mako Mining & Goldsource - Link
Steppe into Boroo Gold - Link
Karora and Westgold Combine - Link
Rupert buy's B2Gold's Finland JV stake - Link
Revival acquires Ensign - Link
Zijin Buys La Arena from Pan American - Link
G Mining Grabs Reunion Gold - Link
Equinox Consolidates Greenstone - Link
Treasury Merges with Blackwolf - Link
New Gold Buys Back New Afton Cash Flow - Link
Contango ORE Tangos with HighGold - Link
PRICE PERFORMANCE & FORECAST
UPCOMING STLLR EVENTS
Annual General Meeting: June 26, 2024 Virtual
Precious Metals Summit: September 10-13, 2024 Beaver Creek
Precious Metals Summit: November 11-12, 2024 Zurich