7 @ 7:00 « BullMarketRun.com

October 17, 2019

7 @ 7:00

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1. Gold has traded between $1,483 and $1,498 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,493…a slew of U.S. economic data was released this morning and was a mixed bag, leaning just enough on the weak side to give Gold a modest lift…Silver is doing well, up 18 cents at $17.53…Palladium rose for a 4th straight session today, hitting yet another record high of $1,784, before some profit taking set in…Copper has added 4 pennies to $2.61…Nickel, under some short-term technical pressure, is 8 cents lower at $7.50…Zinc is a penny higher at $1.12 while Cobalt is unchanged at $16.10…Crude Oil has lost 52 cents a barrel to $52.84 while the U.S. Dollar Index has retreated one-third of a point to 97.62…China says it hopes to reach a phased agreement in a protracted trade dispute with the United States and cancel tariffs as soon as possible, the Commerce Ministry said today, adding that “trade wars have no winners”…that’s an interesting statement as it was China that really launched a trade war against the West many years ago…only now, under President Trump, are they being challenged…a phased agreement would help restore market confidence and reduce uncertainty, ministry spokesman Gao Feng told reporters, adding that both sides were maintaining close communication…

2. Negotiators from the U.K. and EU reached a draft Brexit deal in 11th hour talks today, although there are serious doubts that the agreement will be approved by U.K. lawmakers back in Westminster…“We have a great new Brexit deal,” U.K. Prime Minister Boris Johnson tweeted…he called on British lawmakers to back the deal when it’s put before Parliament on Saturday…however, he faces a formidable challenge to gather enough support from the U.K. Parliament…in a setback for the deal’s prospects, a political party allied to his government said it wouldn’t back the deal…after days of intense talks and more than 3 years after Britain voted to leave the EU, the 2 sides struck a compromise intended to ensure a border doesn’t appear on the island of Ireland…it was the main sticking point in negotiations aimed at smoothing Britain’s split with its largest trading partner…

3. Gatekeeper Systems (GSI, TSX-V), which has been in a steady uptrend the last few months, has been contracted by Southeastern Pennsylvania Transit Authority (SEPTA) to provide annually recurring vehicle video system maintenance services for SEPTA’s approximately 3,000 vehicles…this annually recurring contract is valued at approximately $2.36 million (CDN) per year…SEPTA has approved an initial 3-year service term beginning in November for approximately $7.1 million (CDN), plus two 1-year extension options, for a total potential contract value of up to $11.8 million (CDN) over 5 years…SEPTA is the 6th largest public transportation system in the U.S., providing over 300 million annual passenger rides for nearly 4 million people in Philadelphia…SEPTA is actively using video evidence as protection against fraudulent claims and has installed more than 27,000 video cameras on vehicles and in stations…Doug Dyment, Gatekeeper President and CEO, commented, “Our relationship with SEPTA began approximately 18 months ago when we made the strategic decision to expand our efforts in the U.S. transit industry. Since then, we have won several transit-related contracts which has driven significant growth in our company. Gatekeeper’s vision to add layers of recurring revenue streams to our business model is being executed on by our team. Our innovations in video management and analytics, together with our excellent customer service, has been validated by way of this contract and we are proud to be SEPTA’s video solutions provider”…Gatekeeper had working capital of approximately $6 million as per last financials (period ending May 31)…it has no long-term debt…Q3 revenue for the quarter ending May 31 was $4.3 million, the highest quarterly revenue in company history and a 70% increase over Q3 2018…net income was $613,000…GSI has about 90 million shares outstanding and no warrants…the stock is up 2.5 cents at 20.5 cents on strong volume through the first 30 minutes of trading…

4. Marathon Gold (MOZ, TSX) released another batch of assay results this morning from a continuing infill drill program at its Marathon deposit, part of the Valentine Gold Project in central Newfoundland…the latest drilling continues to delineate significant new zones of quartz-tourmaline-pyrite-Gold (QTP-Au) veining in areas of limited previous drilling within the southwestern extension area of the 1,500-m-long Main zone within the Marathon deposit…highlights included 4 g/t Au over 29 m in MA-19–450; 3.9 g/t Au over 20 m in MA-19–448; and 2.2 g/t Au over 52 m in MA-19–442…the Main zone represents a mineralized corridor of between 100 and 125 m width, extending from surface to more than 300 m depth, and comprising southwest-dipping, echelon stacked QTP-Au veining…Marathon’s Valentine Lake Project features 4 deposits: Marathon, Leprechaun, Victory and Sprite, the latter excluded from mine development planning until additional exploration drilling has increased the resource…where there are a few economic deposits along a productive trend, there are typically more…not only are the numbers impressive for Marathon, Leprechaun and Victory, but there’s a lot of under-explored ground on this big land package…Marathon’s PEA released late last year used a base price of $1,250 Gold per ounce and showed an after-tax project payback of 2.5 years, all-in-sustaining costs of $666 (U.S.) per ounce, after-tax NPV(5) of $493 million (U.S.), after-tax IRR of 30%, and 2.7 million ounces at 1.85 g/t Au (Measured and Indicated) and just over 1.5 million ounces Inferred at 1.77 g/t…average annual production was estimated at 225,000 ounces for 12 years…MOZ is up a penny at $1.58, just 3 cents below its recent multi-year high…

5. The Dow is up 60 points as of 7:00 am Pacific…Wall Street cheered strong earnings results from companies such as Netflix (NFLX, NASDAQ) and Morgan Stanley (MS, NYSE)…sentiment also got a boost from the Brexit deal…Netflix shares jumped after the video streamer posted earnings that topped analysts’ expectations…the company reported a bigger-than-expected increase in international paid subscribers, which mitigated a big miss in domestic subscriber adds…in Toronto, the TSX has gained 32 points while the Venture, down in 18 out of the last 22 sessions, has rebounded 2 points to 541…Kraken Robotics (PNG, TSX-V) is steady at 70 cents after reporting yesterday that it expects revenue between $7.6 million and $7.8 million for the recently completed quarter ended September 30th…this would generate year-to-date revenue in the first 3 quarters of between $9.8 million and $10 million, exceeding the total revenue recognized in all of 2018 ($6.7 million)…Kracken expects to be profitable for the year on total estimated revenue of $15 million…

6. Fiore Gold (F, TSX) has reported full-year Gold production of 41,491 ounces, a 21% increase over the preceding year and within guidance of 40,000 to 43,000 ounces…Q4 Gold production was 9,282 ounces…full-year mined ore production was 13,923 tons per day at a stripping ratio of 1.8…a 10,000 m program of resource expansion drilling is underway at the Pan mine in support of a resource and reserve update and a new life of mine plan in mid-2020…meanwhile, approximately 10,000 m of drilling is largely completed and metallurgical work is underway at the federally permitted Gold Rock Project, adjacent to the Pan mine, in support of a Preliminary Economic Assessment (“PEA”) by the end of this year…CEO Tim Warman commented, “Our team at the Pan mine had another excellent year, with Gold production within our guidance range and 21% higher than 2018 while continuing to maintain our high standards for safety and environmental protection. Gold production in Q4 decreased relative to Q3 in part due to placing lower grade ore as well a slower ramp-up of the crusher than we anticipated. However, tons crushed per day consistently increased through the quarter and as ore placement on the leach pad returns to planned levels, Gold production is expected to likewise return to planned levels over the first quarter of FY/2020. The change from ROM to crushed ore marks the last major operational change at Pan, and the focus is now on our adjacent Gold Rock project which we intend to advance rapidly towards development and production. A PEA will be completed by year-end, and our plan is to transition directly from a positive PEA to a full Feasibility Study with the goal of arriving at a construction decision by mid-2021“…

7. Shares of Oil exploration and production companies, along with Oil-field-service firms, have fallen even more than Crude prices this year…while U.S. Oil prices have lost about 26% over the past 12 months, the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, a widely cited barometer, has lost nearly half of its value, accounting for dividends…meanwhile, the PHLX Oil Service Index, a basket of 15 companies that help Oil producers unearth oil and gas, is down 54%…of 73 U.S.-based exploration and development companies tracked by The Wall Street Journal, ranging from the $292-billion-market-cap Exxon Mobil to recently bankrupt EP Energy, only 1 has shares that have gained value over the past year – Hess…it’s up only slightly, though, even after a huge Oil discovery off the coast of Guyana…more than 40 of the 73 companies have lost at least half of their stock market value over the past 12 months…in Canada, the S&P/TSX Energy Index is off 8% in 2019 to extend its losses over the past 12 months to 29%…