Rob McEwen: Keynote: The Bull Market in Gold Equities is Here

Rob gives us the keynote presentation for the conference and discusses where we are in this new bull market. He outlines some of his charitable contributions to medical research, particularly in regenerative medicine through stem cells. Many people in the mining industry have contributed a lot to society, and that is often forgotten or ignored.

He discusses the historic Dow to Gold ratio and why we headed back to the day when one ounce of gold will once again purchase one share of the DOW. He thinks gold is headed much higher and likely towards $5000.

Rob breaks down the interest costs on the national debt and why debt servicing costs have been going lower. The dangerous effects of continued Fed money printing on the economy are showing up in the resulting impact on home ownership, food stamp usage, and the slowdown in the velocity of money. Government’s are trying to avoid the situation of repaying their debt and will “solve it” by inflating their currencies.

This last market cycle for gold has been the longest and deepest of any bear market in gold equities, and this indicates that the downside risk is relatively small. Rob points out how gold equities currently make up less than 0.1% of the NYSE and the S&P 500.

He discusses McEwen Mining and where they are at with their properties, including having a large exposure to copper. Rob’s investment in McEwen Mining is $164 million, and he is not taking any salary. He discusses McEwen minings exploration targets and why they are expecting to find ore bodies at deeper depths.

Time Stamp References:
1:00 – Robs topics
3:00 – Gold vs the Dow
5:00 – National Debt
7:00 – Value vs. Growth
9:00 – Federal Reserve Charts
10:30 – Hyperinflation
11:15 – Depth of gold bear markets
14:00 – Gold Equities compared to overall stock markets
16:00 – Royalty and Streaming
19:00 – Introduction to McEwen Mining
22:30 – Insider Ownership Comparison
24:00 – Properties overview
29:30 – Story about crusher efficiency.
32:00 – Black Fox Property
34:00 – Deposit comparisons
43:20 – McEwen Valuation
44:00 – Robs Rant on over-regulation and fraud in mining.

Talking Points From This Week’s Episode
• Today we are in a similar place to the tech bubble of 1999.
• New IPO’s are mostly running with negative earnings.
• Since 2016 GDX has outperformed the Dow.
• Companies that use streaming companies squander future profits.
• He discusses his rant about over-regulation in the mining space.

Rob McEwen is the Chairman and Chief Owner of McEwen Mining Inc. He is the founder and former Chairman and CEO of Goldcorp Inc., which is one of the largest gold producers in the world. In 1990, Rob jumped from the investment industry into the mining industry. By 1993, he had begun a consolidation of five companies that would take eight years to complete. The resultant company was Goldcorp Inc., which has become a gold mining powerhouse. During the last thirteen years of Rob being Goldcorp’s CEO, the company’s market capitalization grew from $50 million to over $8 billion, and its share price grew at a compound annual rate of 31%.

Rob is a passionate innovator, marketer, and an avid recreational competitor. He is also a member of the Dean’s Advisory Board, Schulich School of Business; X Prize Foundation: Vision Circle and Board of Trustees; Global Advisory Council; ISSCR (International Society of Stem Cell Research); CEO (Chief Executive Organization) and WPO (World Presidents’ Organization).

Rob was awarded the Order of Canada in 2007 and the Queen Elizabeth’s Diamond Jubilee Award in 2013. He holds an Honorary Doctor of Laws and an MBA from York University and a BA from the University of Western Ontario. Also, he received the 2001 PDAC Developer of the Year Award, was inducted into The Canadian Mining Hall of Fame in 2017 and won the 2018 Bryden Alumni Award for Outstanding Contribution.

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