BullMarketRun   BullMarketRun.com

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

November 26, 2019

7 @ 7:00

Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,460 and $1,450 so far today…as of 7:00 am Pacific, the yellow metal is off $an ounce at $1,454 as key support continues to hold…Silver is up 4 pennies at $16.90…Nickel is off slightly at $6.51 while Copper, Zinc and Cobalt are all relatively unchanged at $2.66, $1.05 and $16.10, respectively…Crude Oil has added 45 cents to $58.46 while the Dollar Index is relatively unchanged at 98.35…a slew of U.S. economic data is on the menu today including the weekly Goldman Sachs and Johnson Redbook retail sales reports, advance economic indicators, the monthly house price index, the S&P-Case-Shiller home price index, the Richmond Fed business survey, new residential sales, and the consumer confidence index…the Conference Board just released its measure of consumer confidence which came in at 125.5 for November, slightly below expectations…that’s still a strong number but the 4th straight monthly decline, giving Gold a slight boost…

2. Physical Gold demand in Asia is yet to see a rebound after a significant drop during the last few months with October’s Gold imports by India and China once again disappointing…Gold imports by China and India remained at historically low levels in October…China’s Gold imports fell below 50 tonnes in October, according to the data released by the Chinese customs authority yesterday…major drops were noted in Gold imports from Switzerland, Singapore and South Africa…also, Chinese jewelry sales were below seasonal trends in October and Gold withdrawals from the Shanghai Gold Exchange (SGE) dropped by almost 40% on an annual basis…Capital Economics believes Chinese Gold imports are likely to remain weak amid growth concerns and rising inflation…in India, Gold imports had a modest 5% increase on a monthly basis but dropped nearly 15% year-over-year…between April and October, Gold imports declined 9% to $17.63 billion, according to Commerce Ministry data…India’s domestic Gold price now includes a 12.5% import tax and a 3% GST…even the Diwali festival failed to provide a meaningful lift to Indian Gold demand in October…a higher import duty has not been helpful…

3. Good news for the Canadian economy this morning – Teamsters Canada just issued a statement that a tentative agreement has been reached with Canadian National Railway to end an 8-day strike that has severed supply chains across the country…the union says the agreement must first be ratified by union members, but normal operations at CN will resume tomorrow at 6:00 am across Canada…some 3,200 striking conductors and yard workers have been demanding improved working conditions, including worker rest breaks, at Canada’s largest railroad…

4. Kirkland Lake Gold’s (KL, TSX, NYSE) 2nd biggest shareholder, Eric Sprott, says he was initially “shocked” and “disappointed” when he first heard about KL’s plan to buy Detour Gold (DGC, TSX), though he expects the move to be a success…“I’ve always been a great believer in the statement that you have to steal value,” Sprott stated…The value at Detour is that the production and grade can increase markedly”…when asked if there is a skills mismatch in an underground high-grade miner acquiring an open-pit specialist, Kirkland CEO Tony Makuch said he was confident Kirkland has the expertise to do both…“Mining is mining.  You just use larger equipment in an open-pit versus underground.  But for the most part there’s a lot of similar execution”with regard to Detour Lake, investors should also keep in mind that Detour Gold has made excellent progress at reducing absolute costs, and Q3 represented the company’s highest ever cash cost margin per ounce…the metrics are only going to get better, as Sprott alluded to…at first glance, the deal may seem like an odd marriage…Kirkland Lake operates 2 superb high-grade underground mines at some of the lowest cash costs in the industry, whereas Detour operates a single, low-grade bulk tonnage open-pit mine (20-year mine life) at comparatively higher costs…the acquisition would boost Kirkland’s annual Gold production significantly to more than 1.5 million ounces per year and add 15.41 million ounces to the company’s mineral reserve base…plenty of exploration upside also exists…KL tumbled $11 a share yesterday, touching its 200-day SMA for the first time since late last year (what a steal the stock was then), and is off another $1.39 to $50.99 in early trading today…that’s a 4th straight losing session and a 25% discount from the recent all-time high for the Apple of Gold stocks…a long-term uptrend line on the KL weekly chart cuts through the high 40’s, just above the rising 300-day SMA at $46.77 and strong Fib. support at $45…there needed to be an excuse for a healthy correction – Detour is it, but bargain hunters are getting an early Christmas gift…

5. The Dow has gained 41 points through the first 30 minutes of trading…in Toronto, the TSX is 29 points lower…Newmont Goldcorp (NGT, TSX; NEM, NYSE) has unloaded its Red Lake complex to Evolution Mining, an Australian Gold producer, for $375 million (U.S.) in cash and contingent payments of up to an additional $100 million tied to new resource discoveries…Balmoral Resources (BAR, TSX) has eased off 2.5 cents to 28.5 cents in early trading after breaking out above key resistance in the mid-20’sBAR hit a nearly 2-year high of 33 cents yesterday on total volume of 5 million shares…more results are pending from Area 52 next to Wallbridge Mining’s (WM, TSX) Fenelon Property where more high-grade numbers are also expected soon…the Venture, continuing to trade within a 540 to 520 support band, is off a point to 529White Gold (WGO, TSX-V) has firmed up in early trading after announcing that it has made a new high-grade Gold discovery, intersecting 72.8 g/t Au over 6.09 m from just 10.67 m depth, in first-pass drilling (RC) at its Titan target on the Hen Property in the Yukon…this included an impressive 136.4 g/t Au over 3.05 m from 12.19 m depth within a broader 32-m mineralized zone…Hen is contiguous to the JP Ross property, less than 15 km from the Vertigo discovery and 25 km from the Golden Saddle and Arc deposits…Skeena Resources (SKE, TSX-V) has arranged a $15 million flow-through financing at 82 cents per share (no warrants) as it advances Eskay Creek…Kraken Robotics (PNG, TSX-V) announced this morning that revenue for Q3 was $7.8 million compared to $1.6 million in the year ago quarter…year-to-date revenues are $10.5 million vs. $5.2 million for the same period in 2018, representing growth of 102%…Kraken expects continued strong revenue growth into Q4 that will be led by the delivery of sensors, batteries and a number of robotics for service projects…as a result, it expects to maintain its objective of generating 2019 revenues of approximately $15 million…net income in Q3 was $100,000 vs. a net loss of $1.1 million in the year ago quarter…the Canadian Marijuana Index is under renwewed pressure after a sharp but brief rally…more red ink…Khiron Life Sciences (KHRN, TSX-V) recorded a net loss of $10.6 million in Q3 compared with a net loss of $5.2 million for the same period in 2018…the company ended the quarter with $47.9 million balance in cash and short-term investments, but how long will that last?…Torino Power Solutions (TPS, CSE) was halted pre-market…rumor has it that a new deal is being put into the company…

6. Fed wants higher inflation: With the final 2019 meeting of Federal Reserve policymakers just 2 weeks away, Chairman Jerome Powell reiterated yesterday that interest rates are unlikely to rise anytime soon, saying the central bank remains firmly committed to meeting its inflation goals…the Fed considers a 2% inflation rate to be a sign of sustainable growth and a level that keeps interest rates high enough to allow for mobility in the event of an economic downturn…however, inflation has run well below that level for 2019 despite 3 interest rate cuts over the past 4 months…in fact, the Fed in recent years has consistently overestimated inflation expectations…in a speech in Providence, Rhode Island, Powell expressed a sense of urgency in meeting the inflation part of the Fed’s dual mandate…he said low inflation expectations feed on themselves and make it tougher for the Fed to support the economy…“It is essential that we at the Fed use our tools to make sure that we do not permit an unhealthy downward drift in inflation expectations and inflation.  We are strongly committed to symmetrically and sustainably achieving our 2% inflation objective so that in making long-term plans, households and businesses can reasonably expect 2% inflation over time”…

7. Choosing to go long Gold after the precious metal settles at a solid support level will pay off next year, according to TD Securities…even though the metal can weaken to as low as $1,425 in the short-term, the long-term picture is looking very supportive of prices reaching the $1,650 level, TD says in its 2020 outlook…“Our analysis still shows that $1,650/oz Gold next year is in the cards, once the weak longs get shaken out and as modest global growth assure a low rate environment and continued Fed monetary accommodation,” the bank’s strategists said…Gold’s major rebound will come in the 2nd quarter of next year, according to TD (historically, Q1 is Gold’s strongest quarter), triggered by further Federal Reserve easing, slower economic growth, and central bank Gold buying…“The likelihood that the Fed will deliver more monetary accommodation, central banks will continue to buy Gold at a record clip and investors demand in the metal to hedge against equity market volatility, weaker U.S. dollar and negative interest rates are all factors making us ready to go long – once the yellow metal firmly settles at technical support levels,” the strategists said…the bank’s outlook projects that the Fed will cut rates twice by mid-2020 in moves that will be mirrored by the European Central Bank…“U.S. economic numbers are likely to print quite weak in the coming months.  This should prompt markets to once again price in more Fed cuts.  Weaker U.S. growth should continue to keep fiscal deficits elevated.  This along with the potential of a Democratic win next election season implies that markets will worry about monetization via a modern monetary theory framework, which typically is remedied by Gold as a hedge”, TD concluded…

Most Popular Recent BMR Posts

Video: How This Innovative Junior Is Winning The “Battery Arms Race” In Northern Ontario

“The Enemies Of Progress, The Radical Environmentalists, Are Ramping Up For A War In The Woods”

Why Are These People Smiling? – Their Stock Has Tanked 80%!

Turbocharged Nickel

Commodity Check!

The Template For The Next 10% Stake In Garibaldi Resources

Thunder In The Corridor!

The Nickel Mountain Magma Highway

Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember

How To Bring A Junior Resource Market To Life!

The Dramatic New Chase For A Nickel-Copper-Rich Massive Sulphide Deposit In The Heart Of A Famous Gold Camp

Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies

The Most Important Venture Development Since The New Bull Market Began


  1. Jon, can you please expand on the TPS rumor, for those of us that are in at much higher levels (I’m down 83%). You mention “that a new deal is being put into the company…” What does that entail and mean? When do you aticipate further news from the company? Anything else you can add would be appreciated. Thx vepper.

    Comment by vepper1 — November 26, 2019 @ 12:28 pm

  2. Hi Jon, I’m curious about the impact of Chinese and Indian gold demand dwindling recently and the outlook for gold in your opinion. It seems to me like these to markets are key in supporting gold prices and if they are faltering, we could be seeing a retracement in gold prices that could impact junior exploration companies.

    Any thoughts?

    Comment by Jeff81 — November 27, 2019 @ 5:16 am

  3. This demand has been sluggish for many months now, Jeff81, yet Gold has made a big move this year…central bank Gold demand and ETF buying have been the big drivers…it would help if Asian physical were to pick up, but it’s not necessary for Gold to push to new highs…Silver, because it’s so attractively priced historically vs. Gold, could generate a lot of fresh interest from Asian buyers, one factor that could allow Silver to outperform in the months ahead in the context of a continuing bull cycle for both metals…

    Comment by Jon - BMR — November 27, 2019 @ 5:26 am

  4. BAR NR
    Area 52 Drill Results

    The Company currently anticipates that the final results for the nine drill holes recently completed in Area 52 testing the high-grade gold discovery announced by the Company on September 16, 2019 (see NR19-17) will be available within the next 7-10 days following the receipt of outstanding assay results.

    Comment by Jeremy — November 27, 2019 @ 6:01 am

  5. Sounds like those assay results for Balmoral Area52 will be released just before Sprott’s show next Friday (I hear there’s no WNW this week due to Thanksgiving holiday). I’m sure he will have a lot to say about the Kirkland deal and Balmoral. Wallbridge will probably have some news before next Friday too.

    By the way, Midland (MD) has expanded its land holdings along the Sunday Lake Deformation Zone (SLDZ) and Detour trend. They’re a smart exploration group and well-financed, so not a bad player to have join what’s becoming a true “area play”.

    Balmoral wants the world to know they’re the dominant landholder in the region controlling approximately 75% of the known extent of the trend (SLDZ).

    Comment by Daniel — November 27, 2019 @ 7:53 am

  6. Nice BAR picking up more strategic land holdings. This area has really heated up I must say. I bought in for the nickel sulphide potential way back when you did one of your early pieces Daniel. I am pleasantly surprised how it is the gold assets that are lighting a fire under the stock right now. I’m not dismissing the nickel potential at all as that is a key strategic asset that will be a boon to this company. Great call with this one!

    Comment by Foz1971 — November 27, 2019 @ 12:45 pm

  7. Yes, BAR’s looking great, Foz1971, the high-grade Gold dynamic has really helped to drive things…

    Comment by BMR — November 27, 2019 @ 12:47 pm

Sorry, the comment form is closed at this time.

  • All Posts: