Gold has traded between $1,175 and $1,189 so far today…as of 9:15 am Pacific, bullion is off $6 an ounce at $1,180…Silver has fallen 7 cents to $16.00…Copper has tumbled 10 cents to $2.60…Crude Oil has added 45 cents to $59.97, supported by warnings that a tropical storm is threatening to hit the coast of Texas…the U.S. Dollar Index is up one-fifth of a point at 95.06…
Gold traders shed their long positions at the fastest pace in 3 months while Silver longs fell at their fastest pace in more than 5 years, according to the latest data from the Commodity Futures Trading Commission (CFTC)…
As the Fed begins its 2-day policy meeting, leading to a fresh statement tomorrow afternoon and a Janet Yellen news conference, FOMC members could very well continue to be haunted by the ghost of 1937…that year was the last time the Federal Reserve hiked interest rates from zero, and what followed wasn’t pretty – a severe recession and a 49% collapse for the Dow…economic conditions, of course, are different now than they were in 1937…however, the Fed has nonetheless been reluctant to pull the trigger on a rate hike due to a variety of domestic and global factors…
Wall Street remains convinced that the Fed will initiate its first rate in 9 years in September, based on respondents to the latest CNBC Fed survey…while 92% see a Fed rate rise later this year, up from 84% in the April survey, the central bank is seen hiking only modestly after August through the balance of 2015…the Fed funds rate is forecast to end the year at just 53 basis points, which would be 2 hikes of 0.25% each…for 2016, respondents forecast a funds rate of 1.56%…that could mean four increases of 0.25% each, or a rate hike just every other meeting…
Trump Announces Presidential Bid
New York real estate mogul and reality TV star Donald Trump declared himself a candidate this morning for the Republican nomination for President…he would certainly add some much-needed business sense to the White House…the 69-year-old Trump joins the field of 11 other GOP candidates, with Wisconsin Gov. Scott Walker expected to enter the race in mid-July and several other hopefuls still considering…former Florida Gov. Jeb Bush announced his bid a day earlier…
“Our country needs a truly great leader, and we need a truly great leader now. We need someone who can take the brand of the United States and make it great again,” Trump said this morning. “I am officially running for President of the United States and we are going to make our country great again.”
Trump flirted with a White House run in 2012 but ultimately did not enter the race…though he’s a first-time political candidate, he has become an influential voice in conservative political circles…while the odds of him winning the Republican nomination are slim, his views on how to improve the “brand” of the United States will be a positive contribution to the national political discourse…
Gold 6-Month Daily Chart
This 6-month Gold chart shows what bullion needs to do in order to build fresh momentum and put the bears on the defensive…the primary pattern since December is a bearish descending triangle, and the downtrend line currently cuts through the $1,210 level…to get investors excited, Gold is going to have to break out above the downtrend line and then overcome significant resistance around $1,225…
A strong band of support exists between $1,150 and $1,170…based on the current technical posture, the path of least resistance at the moment appears to be another test of the support band…
Historically, June is one of Gold’s weakest months of the year…the outlook is much better for Q3, traditionally Gold’s strongest quarter…
Today’s Equity Markets
Asia
China’s Shanghai Composite slumped 174 points or 3.7% overnight, closing at 4889, its biggest fall in nearly 3 weeks amid worries of a fresh clampdown on margin financing and a new wave of IPO’s…
Technically, the Shanghai is certainly in very overbought territory and likely needs some time to digest the 2000-point advance since the beginning of March…the Index has hit the near-term Fib. target of 5132 on this 2+ year weekly chart, and has also been trading in recent days at and just slightly above the top of an upsloping channel going back to last summer…
This chart is an excellent example of what market “momentum” can do…keep in mind that Chinese authorities appear to be using the stock market as a form of economic stimulus, so any significant correction could easily be followed by another push to new highs during the 2nd half of the year…
Europe
European markets were mostly higher today despite concerns over Greece (Greek stocks remained under pressure, slipping nearly 5%)…
North America
The Dow is up 83 points as of 9:15 am Pacific…in Toronto, the TSX has lost 30 points while the Venture is flat at 679 as it continues to hug support…
Discovery Ventures (DVN, TSX-V) Update
Discovery Ventures (DVN, TSX-V) released impressive initial results this morning from ongoing metallurgical test work from 2004 Willa drill core samples…these first results were from intermediate-grade Gold and Copper samples and showed recoveries of 84.7% for Gold and 95.8% for Copper, exceeding the recovery rates from historical metallurgical test work…importantly, current information indicates that the tailings discharged to the tailings pond will contain extremely low sulfide content, a condition seldom met by other mining operations…the next tests will be conducted on the high-grade category of samples, followed by tests on the sub-grade category…
NexGen Energy Ltd. (NXE, TSX-V) Update
A powerful summer is shaping up for NexGen Energy (NXE, TSX-V) which came out with more great drill results yesterday (from its winter program), demonstrating the world class potential of the high-grade Arrow Zone at the Rook 1 Project in Saskatchewan’s Athabasca Basin…
NexGen’s aggressive summer drill program (20,000 m) started June 8 with 2 rigs and will be expanded to 5 rigs by next week…technically and fundamentally, NXE in our view is one of the smartest plays in the entire junior resource market – especially on any immediate and minor pullback/profit taking (which should be expected) from the 40% jump in the share price between last Wednesday and Monday…strong support in the mid-60‘s…
NXE is off a penny at 73 cents as of 9:15 am Pacific…given the latest results from the Arrow Zone and the potential for heightened speculation, it’s reasonable to anticipate that the RSI(14) on this 2+ year weekly chart will ultimately push well into overbought territory…
Integra Gold Corp. (ICG, TSX-V) Update
Integra Gold Corp. (ICG, TSX-V), poised to continue to be a strong market out-performer, has made significant progress with its high-grade Lamaque South Gold Project in Val-d’Or…the pace of activity is impressive…since the beginning of the year through mid-May, Integra had completed 44,500 m of diamond drilling in 99 holes with up to 8 drill rigs operating on several key targets…the company has expanded its 2015 drilling plans from 50,000 m to 75,000 m…3 weeks ago, the company received the certificate of authorization necessary for underground decline development work at the Triangle zone…
ICG was able to hold critical base support (15 to 17 cents) late last year when markets were getting pulverized, and support is currently strong at the 30-cent level which was previous Fib. resistance…
ICG is unchanged at 31.5 cents as of 9:15 am Pacific…
Macro Enterprises Inc. (MCR, TSX-V) Update
As John’s recent charts pointed out, the $2.40 to $2.50 area was an ideal accumulation zone for Macro Enterprises (MCR, TSX-V) which a few weeks ago reported its 15th consecutive profitable quarter with net income of $1.4 million or 5 cents per share for the first 3 months of 2015…this was despite a 66% drop in revenue from 2014‘s record 1st quarter, which demonstrates how activity has slowed in the Oil and gas industry – particularly in Alberta where there is also now the added uncertainty of an NDP government…
As part of its overall strategy, MCR is seeking out pipeline and facilities construction contracts in connection with the LNG projects being planned in British Columbia, an industry that is anticipated to bring substantial economic activity to the province over the next 30 years…Macro has completed bid processes and has entered into discussions with LNG project owners regarding future pipeline and facilities construction…
MCR is off a nickel to $2.99 as of 9:15 am Pacific…note how the MA(40) – the 200-day SMA on this weekly chart – is flattening out and preparing to reverse to the upside…this bodes well for a strong second half of 2015 for MCR…
Note: John, Terry and Jon do not hold share positions in DVN, NXE, ICG or MCR.
Pretty significant news out of Fancamp yesterday (fnc.v);
Fancamp to acquire portfolio of interests from Sheridan
2015-06-15 14:05 ET – News Release
Mr. Peter Smith reports
FANCAMP ACQUIRES A PORTFOLIO OF INTERESTS FROM THE SHERIDAN PLATINUM GROUP LTD.
Fancamp Exploration Ltd. has entered into an agreement with the Sheridan Platinum Group Ltd., pursuant to which it will acquire a portfolio of interests held by Sheridan in the Magpie property, the Lac Lamelee property, the Fermont property, the Longue Pointe de Mingan property, the Desolation Lake property, the Lac au Vent property, the North Shore property and the Villebon property, for a total consideration of $250,000 (payable by way of a promissory note due no later than four months from closing) and 10 million common shares of Fancamp issuable upon closing.
Highlights of the transaction:
Fancamp will acquire 57,721,962 common shares in the capital of The Magpie Mines Inc. and, as a result, will increase its total holdings in the capital of Magpie Mines from 46.7 per cent to 96.3 per cent of the issued and outstanding common shares, therefore becoming the controlling shareholder of Magpie Mines. Fancamp will acquire an additional 1-per-cent net-smelter-return royalty on the Magpie property.
Fancamp will acquire an additional 1.5-per-cent net-smelter-return royalty on the Lamelee property, owned by Lamelee Iron Ore Ltd., a corporation in which Fancamp is a significant shareholder.
Fancamp will acquire an additional 1.5-per-cent net-smelter-return royalty on the Fermont properties. This royalty will thereafter be transferred to Champion Iron Mines Ltd., the owner of the Fermont properties, for a total consideration of $300,000, being $50,000 payable in cash upon closing and $250,000 payable by way of a promissory note due no later than four months from closing.
Fancamp will increase its position to 100 per cent in the Longue Pointe de Mingan ferro-titanium property, the Desolation Lake iron property, Lac au Vent property, the North Shore property and the Villebon property.
Peter H. Smith, Fancamp’s president and chief executive officer, said: “Fancamp has, by this single transaction, greatly simplified its structure and added significant value to its portfolio of assets. The company’s proprietary Magpie process, a part of the Magpie deposit asset and related to the separation of its complex ores, is of immediate interest because of its income-producing potential. Such licensing arrangements for end-users are a low-risk way forward for the company, and the first of these tests of the process will begin shortly on slag and concentrate samples provided by Pangang/Ansteel, a major Chinese producer.”
This transaction is subject to the approval of the TSX Venture Exchange and to the execution and delivery of assignment and assumption agreements in respect of each of the properties.
© 2015 Canjex Publishing Ltd. All rights reserved.
Comment by tony T — June 16, 2015 @ 8:43 am
Not to make the BMR gang mad, but I said it a month ago. I think GGI will see .05 soon
Comment by dave — June 16, 2015 @ 10:47 am
GGI
Web page down news coming
Comment by anon — June 16, 2015 @ 11:13 am
GGI looking weak today. Bid is now down at 7.5c. Is this the end of the selling by warrant holders. Lack of support probably due to lack of news.
Comment by Tom UK — June 16, 2015 @ 11:39 am
Boy they are really putting the boots to GGI. Hope everyone is correct about next week. Picked up more shares today. Just hope I made the correct decision.
Comment by Dan — June 16, 2015 @ 11:54 am
Jon, either Regoci’s excitement is genuine and it’s looking real good for GGI or he is bluffing and fooling everyone.
Comment by Dan — June 16, 2015 @ 11:58 am
Never seen anyone wanting to get rid of their share faster than Anonymous, even if it is attach to a warrant they have paid 21 cent for it, bizarre??
Comment by Martin — June 16, 2015 @ 1:58 pm
Dan, Martin, u have to appreciate that Regoci is a former broker and also a contrarian. He doesn’t think like many regular investors who get scared at precisely the wrong time in the market (bearish when they should be bullish, or vice-versa).
Here’s the math and the facts. Secutor handled the GGI financing in late Dec., 6 million shares at .21. Their groups sell primarily out of ANON and National Bank. Since April 20, a total of 6.5 million GGI shares have traded (all Canadian exchanges). 77% of the selling (4.6 million) has been thru ANON and National Bank. Rest assured, an overwhelming majority of that selling has been flow-through related.
Prior to April 20, there is evidence that at least 1 million flow-through shares were also sold – there are ways to do this before the hold period expires. Some other flow-through stock has been sold on the alternative exchanges. So…what we’re seeing now is the FINAL GASP of flow-through selling and our numbers suggest that it will all be gone this week (500,000 to 750,000 is likely all that’s left).
Knowing this, plus the fact the stock is technically very oversold already, plus the fact there is news coming from Mexico and things are going to rev up big-time in the Sheslay district, why would Regoci not be happier than a pig in mud right now? This has opened up a huge opportunity for loyal investors, some of whom are closely associated with Regoci, not to mention a chance for management/directors to lock in some cheap options albeit moderately higher than current levels.
These guys can sell the FT at a deep discount and yet walk away breaking even and riding the warrants for free, given the tax benefits. That’s the way the game works. And they’re also playing both sides of the trade—-plenty of evidence that Secutor-related buying is soaking up some of the cheap flow-through. They will ride the stock back up.
In Dec. 2013, GGI was sitting at this same price yet many investors preferred to chase the stock above 20 cents early in the New Year. The time to get greedy is NOW, not 2 months from now when this could easily be roaring again above .20 or .30 given dynamics in NW B.C. and Mexico.
Comment by Jon - BMR — June 16, 2015 @ 2:27 pm
Make sense, we are here for the long run Jon, 30 cent a share doesn’t get me excited, 3.75$ a share with a market cap of around 250M would be preferable!
Comment by Martin — June 16, 2015 @ 2:43 pm
I have been greedy Jon. Picked up another 25k in GGI this week. All I am saying is hope I am right and not been fooled. Great explanation regarding the flow through shares. Appreciate the info.
Comment by Dan — June 16, 2015 @ 2:52 pm
Yesterday I bought more GGI at 8.5c…I see NO reason why not!!!!!!
Comment by John BMR — June 16, 2015 @ 3:17 pm
What is the cost of drilling per metter at sheslay, how much dbv is paying?
Comment by Martin — June 16, 2015 @ 3:28 pm
100 to 150 per meter
Top costs is 150 with helicopter
Comment by anon — June 16, 2015 @ 3:57 pm
So one millions would allow ggi to drill about 13 x 500M holes. Enough to test many targets at grizly central. As Jon said it’s time for them to walk the walk.
Comment by Martin — June 16, 2015 @ 5:03 pm
MY bet is that DBV is the biggest gainer of the summer / fall out of all of them up in the valley. They have the people, the clearest targets to drill based on the first 23 holes, and no doubt the money will be there too. JMHO
Comment by Paul — June 16, 2015 @ 7:23 pm
Any updates on BLO?
Comment by matt — June 17, 2015 @ 5:02 am
Looks like anon is happy to sell GGI at 8c. I picked up some more today and if it goes any lower I may well be tempted to buy more. 8c gives a market cap of $5.2mil which seems rather cheap given the activities in Mexico and the fact there is $1mil or so in the bank.
Comment by Tom UK — June 17, 2015 @ 8:12 am