Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,266 and $1,277 so far today…as of 7:00 am Pacific, the yellow metal is down $15 an ounce at $1,269…solid support exists in the $1,260’s…if that is breached, $1,250 would be tested…however, the broader picture for Gold remains very positive as we’ll show in a long-term chart in today’s Morning Musings…a strong performance be centrist Emmanual Macron in yesterday’s first round of the French presidential elections quickly erased some of bullion’s risk premium that had built up recently in anticipation of initial voting…Macron is considered the favorite as he squares off with National Front leader Marine Le Pen in the May 7 runoff election…the selection of Macron and Le Pen marked the first time in the 59-year history of the French Fifth Republic that neither of the country’s 2 main parties, the Socialists and the Republicans, made the 2nd round of presidential balloting…the Gold market still has much to focus on immediately, from continuing tensions over North Korea to important fiscal issues in Washington as Congress reconvenes for a critical week…
2. After a significant pullback last week, Crude prices have stabilized this morning on the news that Iran’s Oil exports are set to hit a 14-month low in May, suggesting the country is struggling to raise exports after clearing out stocks stored on tankers…Iranian Oil exports, especially to its core markets in Asia, had soared since sanctions were eased in January 2016…
3. The NASDAQ has hit a new all-time high this morning while the Dow has soared 192 points on the heels of yesterday’s election results in France…bank stocks are leading the way…action on the Canadian markets is more subdued with Gold under pressure and other commodities flat or down slightly…the TSX has added 81 points while the Venture is down 3 points at 822 as of 7:00 am Pacific…
4. PyroGenesis Canada (PYR, TSX-V), which climbed 21% last week, has hit a new multi-year high of 58 cents during the first 30 minutes of trading today…the company is the world leader in the design, development, manufacture and commercialization of advanced plasma processes…what has been driving the stock since last month is the recognition that PYR is making significant progress toward becoming an important metallic power supplier in the additive manufacturing space…PyroGenesis, the inventor of plasma automization, produces very small, uniform, spherical Titanium powders that flow like water and are highly sought after in the additive manufacturing industry…
5. Cobalt Power (CPO, TSX-V) has finalized plans for its Phase 1 drill program on the Smith Cobalt Project…ground and airborne geophysics, along with historical mapping data and 3D modeling, were used to delineate the targets that will be tested during the 4 to 6 week program expected to commence sometime next month…the approximately 1800 m campaign will focus on the northwestern section of the property where a network of veins extends from the nearby past producing Deer Horn mine…drilling will attempt to extend the strike length of those veins from the historic Smith Cobalt underground workings toward the southeast…CPO is unchanged at 10 cents as of 7:00 am Pacific…
6. Metanor Resources (MTO, TSX-V), which was recently rolled back on a 1-for-10 basis, has closed a private placement in the amount of $8.8 million which includes the participation of Kirkland Lake Gold (KL, TSX) in the amount of $7.25 million and the investment by funds managed by Wexford Capital LP of $1.3 million…Pascal Hamelin, President and CEO, stated: “We are excited to now have the support of a strategic investor like Kirkland Lake Gold, and we are also very encouraged by Wexford’s decision to increase their initial investment in Metanor. These additional funds, coming from established partners having extensive management and operational expertise, will enable us to further develop our main assets, the Bachelor and Barry projects, while increasing the drill campaigns in the Urban-Barry area.” Metanor’s Gold production for the 1st quarter of 2017 was 9,442 ounces (27,604 ounces for the first 9 months of its fiscal year)…MTO is off 7 cents at 85 cents as of 7:00 am Pacific…
7. Granada Gold (GGM, TSX-V) is steady at 7 cents as of 7:00 am Pacific…near-term potential catalysts for GGM are its new relationship with DRA Global, a leading and vertically integrated engineering firm, and an updated resource estimate for the LONG Bars Zone deposit on northwest Quebec’s Cadillac Trend…the maiden resource from late 2012 has the potential to increase rather dramatically given the addition of several hundred historical holes plus fresh results that have included a new high-grade discovery at depth, north of the existing near-surface resource…
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A 50,000-m Drill Program? The Explorer That’s Punching Way Above Its Weight Class!
I’m kinda surprised that GGI is able to continue to progress the projects with what seems to be so little cash. I will give one thing to Regocci is that he is definitely good with the money and share structure. I thought I read somewhere in their financials in the fall that they were deferring salaries until a later time. Do you remember reading anything like that Jon. I imagine that they are still waiting to do a PP until the share price is higher, but at some point before drilling they are going to have to pull the pin. Lets hope this VTEM helps them out.
Comment by weatheritout — April 24, 2017 @ 7:57 am
I see things being managed very carefully and astutely, weatheriout, on those fronts, and the VTEM moving fwd this week is big. Managing share structure is really key, and the huge benefit for current shareholders is that when the drill starts turning over the summer, there will be no free-trading PP paper to compete against…that’s a key thing to understand in terms of sizing up the opportunity between now and the end of August…when paper supply is limited and demand is high, you know what that means…
Comment by Jon - BMR — April 24, 2017 @ 8:10 am
MITK – Daniel, Mitek has shot right up there in the last 10 minutes to a high of $8.25. Is your thought this will an indication of Q2 results that are due out on Thursday?
Comment by Vepper — April 24, 2017 @ 11:11 am
Jon, Thanks for the update on the E&L. That’s the news that I’ve been waiting for with regards to the VTEM.
Comment by pole — April 24, 2017 @ 11:18 am
Vepper, no news, not yet anyway. I’m thinking the price and volume spike could be multi-faceted: 1) technical break above $7.50 2) new institutional buyer(s) and 3) some sort of news leaking related to Q2 results or a noteworthy new customer. Hard to imagine the numbers would be bad, given today’s action. That said, could set MITK up for a sell the rumor, unless numbers (and guidance) really blow away expectations. On its way toward $12 imo one way or another.
Comment by Daniel — April 24, 2017 @ 12:48 pm