Gold has traded between $1,174 and $1,182 so far today…as of 9:10 am Pacific, bullion is off $5 an ounce at $1,176…Silver is flat at $16.00…Copper is unchanged at $2.60…Crude Oil, higher earlier in the session, is now off 71 cents a barrel to $59.26 as details of weekly inventory data overshadowed strong U.S. demand…the U.S. Dollar Index is steady at 95.02…
A Chinese bank will help set prices in London’s $20 billion Gold market for the first time as the nation increases its influence in the world’s financial system…
Bank of China Ltd. will join lenders including Goldman Sachs Group Inc. and Barclays Plc that run the twice-daily auction system for pricing Gold, according to a statement from the London Bullion Market Association yesterday…the process, which dates back to 1919, sets a benchmark level for Gold that’s used by mining companies, refiners and hedge funds…
Oil Update
Government data released this morning showed U.S. Crude stockpiles fell for a 7th consecutive week, while gasoline stocks and distillate inventories rose…Crude inventories fell by 2.7 million barrels in the last week, compared with analysts’ expectations for an decrease of 1.7 million barrels…however, Crude stocks at the Cushing, Oklahoma, delivery hub rose by 112,000 barrels, the first increase since mid-April, EIA said…
Meanwhile, gasoline stocks rose by 460,000 barrels, compared with analysts’ expectations in a Reuters poll for a 314,000 barrel drop…
Fed Policy Decision Coming Up
All eyes are on the Fed today which concludes its 2-day meeting with a policy statement at 11:00 am Pacific, followed by Janet Yellen’s news conference starting at 11:30 am…no one expects a rate hike today, but the market will be looking for signals from the Fed about its intentions for later in the year…
The Fed last raised rates in June 2006…it has kept its benchmark federal funds rate pinned near zero since December 2008….
The Fed’s mandated goals are maximum employment and stable prices, so the inflation and unemployment projections today are important to watch…
Pay close attention to the updated “dot plot” of policy makers’ predictions for the level of the benchmark federal funds rate over the next few years…in March, officials signaled a less aggressive path for rates by lowering those estimates…the median forecast in March for the end of 2015 was 0.625%, implying 2 rate increases this year – from the current range of zero to 0.25%, to a range of 0.25% to 0.5%, and then up to 0.5% to 0.75%…a significant shift down in the 2015 dots could instead imply more support for a single rate increase this year…
Policy makers today will release updated projections for GDP growth, inflation and the U.S. unemployment rate through 2017 and in the long run…
Will there be any dissenting votes today?…the January, March and April policy decisions all were unanimous, the Fed’s longest run without a dissenting vote since 2011…
The last time the Fed hikes interest rates from zero was 1937, and what followed in the markets wasn’t pretty…will they remain haunted by the ghost of 1937?…
U.S. Dollar Index 4-Month Daily Chart
The Dollar Index remains constrained by its declining 50-day moving average (SMA) and Fib. resistance around 95.50…clearly, from the chart below, the Dollar Index completed at least a short-to-intermediate term top in the spring with a classic double top formation, and there was a major RSI(14) divergence with price in that second run in April (circled in blue) that stopped at 100.27 (as predicted)…
The dramatic surge in the greenback that began last summer was extremely damaging to commodities and the Venture Exchange, hence the nearly 40% decline in the Venture from September through mid-December…
The likelihood of this happening again over the second half of this year is remote…a neutral to modestly weak greenback through the balance of 2015 substantially reduces the risk in the Venture given the strong inverse relationship between the two…
In the event of a Dollar Index “dive” into the mid-to-upper 80‘s during the last half of the year, which is certainly possible, the Venture and commodities would break out to the upside…
Copper 20-Year Monthly Chart
Copper is once again at long-term uptrend support after getting knocked down by a dime yesterday…the first 3 circled RSI(14) lows marked important bottoms for the metal in 1999, 2001 and late 2008/early 2009…RSI(14) touched those support levels again at the end of 2014/beginning of this year when the metal hit a multi-year low of $2.42, also at Fib. support and the long-term uptrend line…based on this chart, there’s every reason to believe we’ve seen a bottom in Copper and an important turnaround will be confirmed during the second half of the year…
B.C. Marches Forward
Globe and Mail business reporter Brent Jang wrote last night that a liquefied natural gas consortium led by Royal Dutch Shell PLC is expected to receive B.C. environmental approval within days as the group positions itself to be one of the first LNG exporters in the province…LNG Canada’s plans to export from Kitimat are being reviewed by two B.C. cabinet ministers, who are slated to announce by Monday whether they will grant a provincial environmental assessment certificate…
Jang added, “Industry observers predict the two provincial cabinet ministers will attach several conditions to their anticipated approval of LNG Canada’s application. The broad goal is to decrease potential adverse environmental impacts and emphasize opportunities with First Nations.”
Today’s Equity Markets
Asia
Asian stocks were mostly higher overnight, led by a turnaround in China’s Shanghai Composite which closed 81 points or 1.7% higher at 4969…
Europe
European markets were mixed today…talks between Greece and its international creditors remain in deadlock as Athens faces a $1.8 billion repayment to the IMF by the end of this month…
North America
The Dow has erased earlier gains and is now relatively flat at 17906 as of 9:10 am Pacific…in Toronto, the TSX is down 5 points while the Venture is bucking the trend, up 2 points at 681…
Drilling Starts Shortly At Schaft Creek
BMR has confirmed that crews have commenced mobilization for drilling at Schaft Creek, 100 km south of the Sheslay district in northwest B.C., which may explain the strength in Copper Fox Minerals (CUU, TSX-V) the last couple of days…drilling on the LaCasse zone will test a geological setting similar to that in the Paramount Zone of the Schaft Creek deposit (JV between CUU and Teck, TCK.B, TSX) located approximately 3 km to the south…approximately 2,500 m of drilling (5 holes) will test the depth extension of the impressive Copper-Gold mineralization located in potassic-phyllic altered outcrop and in hydrothermal breccia…this could mark a potentially important new discovery…
To the north, meanwhile, the fireworks will soon commence in the Sheslay district…one rig, we have confirmed, is on site…
Richmont Mines Inc. (RIC, TSX) Update
Richmont Mines (RIC, TSX-V) continues to be an earnings machine and is holding up impressively given the recent weakness in Gold…Q1 2015 net earnings were $4.6 million, or 9 cents per share, against a Q1 2014 net loss of $1.9 million, or negative 5 cents per share…Q1 revenues were $37.2 million vs. $29.5 million during the same period last year…
Richmont’s accelerated development of its Island Gold Mine in northern Ontario is on schedule and on budget, while RIC’s Quebec assets performed robustly during Q1 with cash costs and all-in-sustaining costs less than expected…
The company has maintained 2015 production guidance of 77,000 to 88,000 ounces, but our guess is that they will beat those expectations…Richmont had $71 million in cash ($1.22 per share) at the end of March and long-term debt of only $5.2 million…a tremendous turnaround for Richmont and the long-term outlook has to be considered exceedingly positive given the expansion of the Island Gold Mine into a deep high-grade zone…
RIC has been trading within a bullish downsloping flag since the beginning of the year with the rising 200-day moving average (SMA) at $3.58 coinciding with Fib. support…watch for another important breakout in RIC over the summer…
RIC is off 2 pennies at $3.88 as of 9:10 am Pacific…
Biorem Inc. (BRM, TSX-V) Update
As we indicated June 3 when it was at slightly lower levels, readers may wish to perform their due diligence on Biorem (BRM, TSX-V), an environmental biotechnology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds and hazardous air pollutants…BRM, which has only 13 million shares outstanding, has reported a strong turnaround in its financial performance over the last 2 quarters, including Q1 2015 as June 3 (revenue of $4.8 million and net earnings of $528,000)…
Last Thursday, the company announced it has received several new orders totaling $2.5-million…the orders are for air emission abatement projects in North America, the Middle East and Asia…
“These recent orders are a reflection of our customers’ desires for reliability and the ability to achieve stringent performance targets,” said Derek S. Webb, President and CEO. “Each of these orders are from repeat customers who are accustomed to having their projects successfully completed on time and on budget. These projects are in the semiconductor, petrochemical, as well as the food and beverage sectors, and represent a cross-section of the potential applications where our advanced biological solutions can be effectively applied.”
BRM hit a new 52-week high of 38 cents Monday…it’s unchanged at 35 cents in early trading today…
iSign Media Solutions Inc. (ISD, TSX-V) Update
Below is an updated chart for iSign Media Solutions (ISD, TSX-V) which has confirmed a breakout above a downsloping channel, while RSI(14) continues to follow an uptrend…
On Monday, the company announced the signing of asset purchase agreements with Graphic Media Inc. and Engage Mobile Media Solutions LLC – a step that has the potential of doubling ISD’s revenues…
ISD is unchanged at 25 cents as of 9:10 am Pacific…
Note: John, Terry and Jon do not hold share positions in CUU, RIC, BRM or ISD.
Street gossip on the Sheslay
GGI partnership with a Japanese Company or possible complete buyout
Pgx was also on the list of the Japanese company
Dbv drill will be turning shortly
Pgx pres in Africa looking for money?for Sheslay?
Comment by anon — June 17, 2015 @ 8:24 am
The rumors are indeed flying. Geologically, our upcoming interview with Dr. Razique should provide some tremendous insight for investors.
Comment by Jon - BMR — June 17, 2015 @ 8:42 am
GGI’s stock price sure doesn’t reflect those so called rumors, I guess that’s why they are called rumors….
Comment by Greg — June 17, 2015 @ 9:07 am
I don’t see a GGI partnership with anyone at this point on the Grizzly, Greg, it wouldn’t make sense…but there are definitely bigger fish circling around the Sheslay district and the reasons why should become more evident shortly…great volume on GGI—–the balance of this flow-through is getting crossed out and traded out this week…that’s what needs to happen…then this is free to once again begin its climb higher…
Comment by Jon - BMR — June 17, 2015 @ 9:21 am
Jon
any updates on WRR, have they started the drills yet?
thanks for the updates on GGI looking forward to the interview with Dr Raz
thanks
Comment by Greg — June 17, 2015 @ 9:23 am
I haven’t spoken with Michel for several weeks, Greg, so the latest I know is what was stated in the NR. I will attempt to track him down shortly. I doubt the drilling has actually started yet—-I’m sure that would be announced. My only speculation regarding the delay in the timing of the drilling is that those who participated in the 2 financings didn’t want the drilling to commence until their paper was free-trading. While it’s frustrating the drilling is later than what Michel had earlier indicated, the one advantage is that the overall market environment in Q3 will likely be better. The paper doesn’t concern me too much as that can be cleaned up very quickly…potentially even in a matter of days.
Comment by Jon - BMR — June 17, 2015 @ 9:27 am
There is a few majors looking at the forefront players in the Sheslay
Something will have to give soon
Comment by anon — June 17, 2015 @ 9:27 am
Anon, If he is in Africa he will be hunting but not for money.
Comment by Robert — June 17, 2015 @ 10:17 am
Dollar drops on Fed statement, Yellen begins news conference shortly.
Information received since the Federal Open Market Committee met in April suggests that economic activity has been expanding moderately after having changed little during the first quarter. The pace of job gains picked up while the unemployment rate remained steady. On balance, a range of labor market indicators suggests that under-utilization of labor resources diminished somewhat. Growth in household spending has been moderate and the housing sector has shown some improvement; however, business fixed investment and net exports stayed soft. Inflation continued to run below the Committee’s longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports; energy prices appear to have stabilized. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is anticipated to remain near its recent low level in the near term, but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of earlier declines in energy and import prices dissipate. The Committee continues to monitor inflation developments closely.
To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.
The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Jeffrey M. Lacker; Dennis P. Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams.
Comment by Jon - BMR — June 17, 2015 @ 10:28 am
Falling, Jon! Like a rock! This should help the metals, and the venture, let’s hope.
Comment by Tombc — June 17, 2015 @ 11:15 am
Another 689,691 shares traded again today in GGI. The FT shares must be close to being done now Jon. Seems like a never ending supply. Anyway, was greedy again today and picked up another 5k. That’s 30k for the week. What’s with all the rumors flying around regarding GGI and the sheslay? Wouldn’t say it by the way it is trading, but then again we can still blame it on the FT shares.
Comment by Dan — June 17, 2015 @ 12:16 pm
Anon sold another 650,000 ggi today
So we have since April 20th anon sold 4,609,500 bought 470,500 = 4,139,000 plus national sold 977,000 bought 155,500 = 821,000
Total FT shares dumped 4,960,500
Out of 5,953,310
My guess there is still another 700,000 shares to go
Comment by anon — June 17, 2015 @ 12:22 pm
Gbb to rollback shares news out 8 to 1
Comment by anon — June 17, 2015 @ 12:43 pm
Dan, the FT is definitely drying up and the acceleration of the selling, like we’ve seen over the last several sessions, is a typical pattern at this late stage. Could definitely be all gone this week, given the daily volumes we’re seeing. Keep in mind, for every seller (in this case almost all FT), there is a buyer. So strong hands are soaking this up which is good to see. The increased liquidity in GGI is positive as this will atract new buyers on the way back up.
Comment by Jon - BMR — June 17, 2015 @ 1:14 pm
Jon
You say one rig is on site in the Shesley? Is that GGI or DBV site?
Comment by Greg — June 17, 2015 @ 2:36 pm
GBB… share consolidation … can someone give me some positive spin on this??? like anyone????????
Comment by Jeremy — June 17, 2015 @ 2:49 pm
Our eyes (sources) in the sky up there confirm it’s on the Hat, Greg. I suspect things are about to break open in the district, next week, which could be why we have been granted interviews.
Comment by Jon - BMR — June 17, 2015 @ 3:32 pm
Jon, maybe I am missing something here and you can enlighten me . You mentioned several times that we are still going through the process of people selling shares from the flow through financing for GGI which was a total of 5.9 million. I have no reason to doubt that and I picked up some GGI at .08 today. However you also said that you are not worried about the paper for WRR which will have about 15 million becoming free trading soon and that it could be cleaned up in a matter of days. Doesn’t that seem awfully optimistic? It’s taking a few months for the shares of GGI to be soaked up and that’s only 5.9 million. Maybe I am missing something and you or someone else can comment. Thanks for your reply and updates.
Comment by Danny — June 17, 2015 @ 3:40 pm
Hi Dan, good point with a couple of simple explanations. 1) WRR is at a lower share price – real easy for that cheap paper to get eaten up at 3 to 5 cents; 2) The start of WRR’s highlight drill program coinciding with the paper becoming free trading. With GGI, it appears they decided to save all the excitement for AFTER the cleaning up of the paper, giving loyal shareholders the opportunity to take advantage of the flow-through traders’ game, and the recovery of the stock as things heat up at the Sheslay and news comes out of Mexico. Two different strategies. Both have merit but I prefer the latter. Regoci of course is a former broker. He understands the game. He has saved his best cards, all his ammunition, for after the FT boys are flushed out.
Comment by Jon - BMR — June 17, 2015 @ 3:56 pm
Thanks for your reply Jon. We will see how it pans out. I am confident on GGI, it’s more than a 1 trick pony and am happy to buy at these prices. Not so sure about WRR.
Comment by Danny — June 17, 2015 @ 4:20 pm
Dbv I have a good feeling the rest of hole 23 is about to be seen
This could really get the Sheslay stocks rolling on good results
High grade cores would we very welcome to all
Comment by anon — June 17, 2015 @ 4:30 pm
Also, Dan, with WRR…the geological dynamic….this is a very nice system with high probability of early success in the first few holes…high-grade and near-surface….that will bring in a ton of volume.
Comment by Jon - BMR — June 17, 2015 @ 4:43 pm
3 news soon with DBV :drilling,hole23 and deal with a major !
Comment by Guy Delisle — June 17, 2015 @ 7:03 pm
Anon you made my week after no contact with the outside world 6 days in hospital your posts are very reassuring am sure that our groups prayers have also been heard.Look forward to good results and an educational interview with Dr.Razique to understand the true potential of the Hat Complex and how significance will its roll be in the Sheslay District.Thanks you cheered me up don’t feel the stitches hope to be home for that Monday interview
Cheers
Comment by Eddie — June 17, 2015 @ 10:18 pm
Anon looks done as they sold 695,000 shares and ggi has traded 714,000 in the first 15 min of trading
Time for the fireworks to start
Comment by anon — June 18, 2015 @ 5:52 am
Well then, light the match anon.
Comment by Tombc — June 18, 2015 @ 6:15 am
Tom, looks like the FT is gone, or very imminently gone, so it’s Game On for GGI starting sometime next week I’m sure…the volume we’re seeing now is impressive but nothing compared to what could unfold on a major hit – or even just on speculation of a major hit – at Grizzly Central…those who kept the faith through this FT selling will be handsomely rewarded over the next couple of months as this could skyrocket on B.C. and Mexico, along of course with DBV…
Comment by Jon - BMR — June 18, 2015 @ 6:23 am
Fully loaded up on GGI and DBV
Comment by anon — June 18, 2015 @ 6:25 am
Yes Jon, have to admit it’s been a grind, but it’s looks like we may have turned the corner,now all we need is results from Mexico and the drill to turn at grizzly, and that will be match we need.
Comment by Tombc — June 18, 2015 @ 6:39 am
”Turned the corner”, you took the words out of my mouth Tombc. I really hope this is correct and I’m glad I bought some stock at 8c yesterday, helps average down to around 17c. I wonder when I will be in profit with GGI? Come on Steve, give us some news please!!!
Comment by Tom UK — June 18, 2015 @ 8:04 am
Tom , I don’t think there will be any news until GGI, DBV or PGX sign the MOU. But it has to be soon as all parties are hurting while this drags on , a big incentive to get the deal finished and get back to work . JMHO
Comment by Les — June 18, 2015 @ 10:28 am
Thanks Les, but I’m also expecting news out of Mexico from GGI. The drill has been turning and they should have some news on the progress of the LOI for La Patilla.
Comment by Tom UK — June 18, 2015 @ 11:59 am