Today one of the greats in the business said the dip in the price of gold is ironic and remained bullish on gold.

Golden Irony
February 17 (King World News) – Peter Boockvar:  It’s quite ironic that just as we’re seeing this commodity bull run underway that gold is lagging but gold is not a commodity, it is a currency. Thus, it still is consolidating the run last summer as the dollar index has put in a short term bottom and real yields at the 10 year maturity has lifted off its lows. That said, the 5 year real yield keeps making new lows outside of yesterday’s bounce. That real yield stands at -1.88%. I remain bullish on gold believing that any dollar rally will be temporary and inflation will surprise on the upside while the Fed will sit there and do nothing about it thus sending real yields even lower on the short end…

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Bitcoin
As we watch bitcoin continue its ascent, MicroStrategy, the company that was once focused on software and is now just a bitcoin play, is getting deeper into that theme as they announced today a $900mm convertible note offering where they intend “to use the net proceeds from the sale of the notes to acquire additional bitcoin.” This is not for business expansion or general corporate purposes but to buy more bitcoin.

Mortgages
While the average 30 yr mortgage rate is still very low at 2.98%, that is the highest since mid November, coincident with the rise in the 10 yr yield and it did lead to a decline in purchases and refi’s. Purchases have fallen for the 3rd week in 4 which the uptick in mortgage rates joins almost double digit price increases. The year-over-year increase though was still almost 15%. Refi’s fell 4.7% week-over-week but are higher by 51% year-over-year.

Also of importance…

Eric King: “What is happening with your company is astonishing. You are on track to triple gold production with your planned multi-stage expansion, and the entire expansion is being funded with cash flows from operations. That is remarkable.”

A Dream Setup
John Lewins:  “When you look at the next 3 years we’ve got a capital spend of about $240 million, all coming out our cash flow. This year our capital expenditure will be north of $60 million with an exploration budget of about $15 million. But even with those expenditures we are looking at free cash flow in excess of $20 million. We have an extremely strong balance sheet and it will be even stronger by the end of the year. Meaning, we will not be doing any financings because we fund everything through existing operations and cash flow.

An Increasing Pile Of Cash While Tripling Production
And we are still going to be increasing that pile of cash while we are spending that capital expenditure budget which will expand our production to almost triple what we are currently producing. This year we have our guidance at 135,000 ounces of production, but we are targeting 350,000+ of production for stage 3. And as we increase our production that will drive our cost of production even lower, even though we are already one of the lowest cost producers in the world. So we are in for some very exciting times in the coming years.

Exciting Drilling Results And A Growing Resource
We’ve got drilling results coming out later this week covering 30 holes, but we also have an updated resource coming out in Q3 for Kora. There will also be a brand new resource for Judd which will barely scratch the surface of its potential. And we have 10 drill rigs turning right now and another diamond drill rig coming in for underground as well as another one coming in for additional surface drilling. So our growth in terms of the overall resource in the middle of COVID is actually quite stunning, and we strongly believe that our share price is undervalued.” K92 Mining, symbol KNT in Canada and KNTNF in the US.

Also released! Michael Oliver – Gold Will Reverse Higher With Extreme Speed And Violence CLICK HERE TO READ.

Also released! Gold & Silver Prices On The Verge Of Being Unleashed As Fed And JP Morgan Lose Control CLICK HERE TO READ.

To listen to Dr. Stephen Leeb discuss $200 silver and $20,000 gold CLICK HERE OR ON THE IMAGE BELOW.

To hear Alasdair Macleod discuss why silver is poised to blastoff and what gold and silver traders are watching right now CLICK HERE OR ON THE IMAGE BELOW.

Also released! For Each One Percent Rise This Will Cause A Staggering $3 Trillion In Mark-To-Market Losses CLICK HERE TO READ.

Also released! Greyerz – Yes There Will Be A Historic Crash In Global Assets, But This Is The Real Danger CLICK HERE TO READ.

Also released! WHERE’S THE SILVER? Serious Questions Emerge As SLV Managers Look To Cover Themselves With New Disclosure CLICK HERE TO READ.

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