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February 19, 2020

7 @ 7:00

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

1. Gold has traded between $1,601 and $1,612 so far today…as of 7:00 am Pacific the yellow metal is up $3 an ounce at $1,604Gold settled above $1,600 yesterday for the first time since April 2013…Silver has added cents to $18.22…both Gold and Silver have broken out technically on short-term charts and can be expected to push higher through month-end…meanwhile, Citi is now calling for $2,000 Gold over the next 12 to 24 months, a pretty safe bet…Gold should perform as a convex macro asset market hedge, resilient during ongoing risk market rallies but a better hedge during sell-offs and volume spikes,” Citi analysts commentedPalladium is up $75 an ounce at $2,591 after hitting significantly higher levels overnight…major breakout above key resistance at $2,350…Platinum has crossed the $1,000 ounce mark, gaining $11 to $1,001, while Rhodium has jumped another $300 an ounce to $10,800…Copper, Nickel and Zinc are off slightly at $2.59, $5.76 and 96 cents…Crude Oil has gained 72 cents to $52.77 while the U.S. Dollar Index is up another one-fifth of a point to 99.63…investors continue to seek safety in the greenback and U.S. equity markets thanks to the strong Trump economy…China’s central bank said today that the impact of the coronavirus on its economy will be limited as the epidemic has not changed the country’s economic fundamentals…The People’s Bank of China (PBOC) said it would help anti-virus efforts by extending credit, including by providing favorable loans or interest rates to companies involved in controlling the epidemic…in its 4th-quarter monetary policy implementation report, the bank added that it would also would keep the yuan stable and maintain its prudent monetary policy to ensure financial stability…China’s Communist Party’s National Health Commission today reported an additional 1,749 cases of the coronavirus nationwide, with 136 deaths…through yesterday, authorities say there had been a total of 74,185 confirmed cases and 2,004 cumulative deaths…British Columbia’s decline has started under the NDP (the province has seen this horror movie before)…yesterday, the government’s budget introduced a major tax increase on so-called “rich” British Columbians earning more than $220,000 a year…B.C. now has one of the highest income tax rates for entrepreneurs, professionals and business owners anywhere in North America – if you are successful and “rich”, B.C.’s socialist government will punish you by taxing the hell out of you…makes so much sense, doesn’t it?…

2. As court orders are burned on rail tracks by aboriginal anarchists and eco-terrorists, CN Rail has announced the layoffs of 450 workers at its operations in Eastern Canada after cancelling more than 400 trains in the past week over the ongoing rail blockades…that’s really just the tip of the iceberg as far as the broader economic impact is concerned across the nation…quite simply, Canada has become a dysfunctional country under “progressive” federal leadership – taxation without representation, in effect, because the feds are not representing taxpayers right now…the Montreal-based railway says the situation is “regrettable” because the impact on the economy and its employees from the protests is unrelated to CN’s activities and beyond its control…Conservative leader Andrew Scheer summed up the national protests accurately yesterday when he stated in the House of Commons, “Standing between our country and prosperity is a small group of radical activists, many of whom have little to no connection to First Nations communities, a bunch of radical activists who won’t rest ’till our Oil and gas industry is entirely shut down.  They are appropriating an Indigenous agenda which they are willfully misrepresenting”…not surprisingly, Scheer’s opinion is in stark contrast to that of Prime Minister Trudeau, who continues to call for “patience” and “dialogue” (how is that possible when you’re dealing with anarchists and eco-terrorists?) and his “progressive” NDP, Green and Bloc allies who are not standing up for the resource sector, Canadian workers, or specifically even the democratically elected First Nation groups who are 100% behind the Coastal GasLink pipeline…President Trump would never allow such a state of affairs in the United States  – all the more reason why capital will increasingly flow from Canada to the United States…Canadians will pay a very heavy price economically if this nonsense continues…

3. Azimut Exploration (AZM, TSX-V) is pushing higher after announcing this morning that it has arranged a non-brokered flow-through private placement in the amount of $6 million at a price of $2.45 per flow-through share…proceeds from the financing, supported by 1 strategic investor”, according to the company, will be used by Azimut to incur eligible Canadian exploration expenses with a focus on its 100%-owned Elmer Gold Property in northern Quebec…shareholders are anxiously waiting for CEO Jean-Marc Lulin and Azimut to publish IP results over the Elmer/Patwon discovery (3.1 g/t Au over 102 m, including 10.1 g/t Au over 20 m)…drill results announced January 14 were a game-changer for the company and tripled the stock price…follow-up drilling begins soon…AZM is up 17 cents at $1.64 as of 7:00 am Pacific…key resistance is $1.50

4. Alamos Gold (AGI, YSX; NYSE), which will release quarterly and yearly financial results following today’s close, has reported a major increase in reserves and mineral resources at its high-grade Island Gold mine in Northern Ontario…Proven and Probable reserves are now 1.22 million ounces (3.6 million tonnes grading 10.37 g/t Au), net of mining depletion, while Inferred resources have jumped 46% to 2.3 million ounces (5.4 million tonnes grading 13.26 g/t), with grades also increasing 13%, reflecting higher grade additions at Island East…combined mineral reserves and resources now total 3.7 million ounces, double the 1.84 million ounces at the time of acquisition in 2017, net of 364,000 ounces of mining depletion…“We had another tremendous year at Island Gold on all fronts, with the asset continuing to evolve into a world-class orebody,” stated John A. McCluskey, President and CEO.  “Over the past 2 years, we have added more than 2 million ounces of mineral reserves and resources, before mining depletion, with the deposit now approaching four million ounces in all categories. We see strong potential for this growth to continue with the deposit open laterally and down plunge across multiple areas of focus.  The majority of this growth is being incorporated into a Phase 3 expansion study of Island Gold, supporting what we expect will be a larger, increasingly profitable, long-life operation in one of the best mining jurisdictions in the world”AGI is off 11 cents at $8.33 in early trading…

5. More high-grade drill results from Wesdome Gold Mines (WDO, TSX), including 114.8 g/t over 10 m, as underground definition and exploration drilling continue at its 100%-owned Kiena mine complex in Val d’Or…7 underground drills are now in operation completing the infill and up and down plunge extension drilling of the Kiena Deep A Zone…this drilling continues to confirm the overall continuity of the geometry and the high-grade Gold mineralization of the A Zone and identify additional mineralization outside of the most recent resource estimate…recent drilling, including hole 6580 and its associated wedge holes, have extended mineralization in the A Zone an additional 100 m down plunge…it now extends for more than 830 m…a total of 40,850 m in 136 new drill holes have now been drilled since the latest resource estimate, which is expected to be updated later this year…hole 6580 returned 114.8 g/t Au over a 10-m core length (32.8 g/t cut over true width of 5.6 m)…other highlights from the Kiena Deep A Zone include 25.3 g/t over 17.2 m in hole 6580W1 (21 g/t cut over 11.6 m true width) and 86.5 g/t over 9.7 m in hole 6580W2 (31.7 g/t cut over 4.2 m true width)…meanwhile, the 79 level drift, consisting of 576 m of down ramp development and drill platforms, has now been completed and 2 drills have been mobilized to commence drilling of the potential up plunge extension of the A Zone…previous limited drilling into the up plunge area from 67 level returned a number of good intersections that require follow up…Duncan Middlemiss, President and CEO, commented, “We are extremely pleased with the recent infill drilling results from the Kiena Deep A Zone that continues to confirm the grade continuity and will be used to convert Inferred resources to Indicated resources in the updated resource estimate later this year.  The PEA study is ongoing and expected to be completed in Q2 2020; which will be based on the latest Kiena Mineral Resource Estimate from September 2019. Ongoing drilling of the A Zone continues to expand the size of this zone and is expected to grow the resource base”WDO is up 15 cents at $9.88 as of 7:00 am Pacific

6. The Dow has climbed 47 points through the first 30 minutes of trading…the S&P 500 and NASDAQ have hit new record highs…in Toronto, the TSX is up 30 points with the Gold Index steady at 270 after a big jump yesterday…the Venture is up 3 points at 580…key resistance is 585DynaCERT (DYA, TSX-V) is up 7 cents at $1.02 as it threatens to hit a new multi-year high…Canadian Palladium (BULL, CSE) is steady at 22 cents after a 4-cent jump yesterday…drilling at the company’s Palladium project near Sudbury could generate some buzz at PDAC…high-grade drill results last April from the Sunday Lake Project, including 9.1 g/t PGM over 15.8 m, more than doubled the share price of Transition Metals (XTM, TSX-V)…Palladium prices are now much higher and fresh results are due soon from drilling that started last month…the thickest and highest-grade intercepts yet from this property are possible given the significant new anomalies that were targeted…XTM, with only about 45 million shares outstanding, holds a 25% free-carried interest in the project, in addition to a 100% interest in multiple other PGE properties…XTM closed up half a penny at 18 cents yesterday with the rising 50-day SMA preparing to cross above the 200-day SMA at 17 cents in a classic “Golden Cross”…

7. First Majestic (FR, TSX; AG, NYSE) has reported record revenues of $363.9 million (U.S.) in 2019, a 21% increase from 2018, with adjusted net earnings coming in at $7.3 million (4 cents per share)…total production reached 25.6 million Silver equivalent ounces, a 15% increase over 2018, reaching the top end of the company’s 2019 guidance range of 24.4 million to 26.0 million ounces…Silver production reached 13.2 million ounces, a 13% increase over 2018, and inline with the company’s guidance range of 12.8 to 13.5 million ounces…FR generated a record $140 million (U.S.) of cash from operating activities, and mine operating earnings were $66.2 million (U.S.) compared to $11.9 million (U.S.) in 2018 primarily due to higher revenues, metal prices and lower cash costs…all-in sustaining costs of $12.64 (U.S.) per payable Silver ounce represented a 15% decrease compared to 2018, beating the 2019 guidance range of $12.98 to $13.94 per ounce…cash costs of $5.16 (U.S.) per payable Silver ounce was a 26% decrease compared to 2018, also beating guidance…the company achieved annual consolidated Silver recoveries of 86%, a new record, due to ongoing investments in metallurgical processing and innovation…First Majestic successfully commissioned the new 3,000 tpd high-intensity grinding (“HIG”) mill at Santa Elena, making it the only whole-ore, hard rock mining application of this technology in Latin America…the company also commenced earthwork and ramp development activities at Santa Elena’s Ermitano Project in advance of initial production scheduled for early 2021First Majestic ended 2019 with the highest cash balance in the company’s 18-year history (cash and cash equivalents of $169 million (U.S.), up from $57 million (U.S.) at the end of 2018) as the Silver bull market intensifies…FR is down 14 cents at $13.32 as of 7:00 am Pacific

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February 18, 2020

7 @ 7:00

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

1. Gold has traded between $1,585 and $1,594 so far today as it closes in on $1,600as of 7:00 am Pacific the yellow metal is up $9 an ounce at $1,590…Silver has jumped 16 cents to $17.92…both Gold and Silver are looking increasingly bullish from a technical perspective as they start to push through key resistance on short-term charts…Palladium has jumped another $23 an ounce to $2,424 while Rhodium has shot up $200 an ounce to $10,500…base metals are off slightly with Copper, Nickel and Zinc at $2.59, $5.85 and 96 cents, respectively…the U.S. Dollar Index continues to shine, up more than one-third of a point to 99.40 while Crude Oil has retreated 92 cents to $51.13investment professionals now see China’s $12.2 trillion economy rising an average of just 5.2% over the next 3 years, according to the Bank of America Global Research Fund Manager Survey for February…while that’s a level that much of the developed world would envy, it’s well off China’s average quarterly gain of 6.6% over the previous 3 years and well below the 10.6% gain of a decade ago…it’s also the weakest outlook since September 2015

2. Chinese officials are celebrating a drop in the number of new coronavirus infections and deaths, though the World Health Organization warned against complacency as global health authorities continue to battle the virus…China’s National Health Commission today reported 1,886 new confirmed coronavirus cases in mainland China yesterday, the first time the daily tally has fallen below 2,000 since the beginning of the month…the daily number of confirmed cases outside Hubei province, the epicenter of the outbreak, also fell to below 100 for the first time this month, while the number of new deaths across mainland China – 98 yesterday, all but 5 of them in Hubei – fell to less than 100 for the first time in nearly a week…of course we have to assume that China’s communist government is providing accurate numbers…the debate over whether the coronavirus has peaked has consumed health authorities and policy makers over the past week…across China, some policies have called for tighter controls to contain the spread of the virus, while others are designed to pave the way for a return to normalcy as the economic toll of the outbreak intensifies…

3. The optics aren’t good for Canada: President Trump is focused like a laser beam on the U.S. economy, a shining light in a rather gloomy world…meanwhile, as Canadian infrastructure came under attack by anarchists and eco-terrorists (not “land defenders”), Prime Minister Trudeau was galavanting around the globe last week to promote his failing globalist agenda in an attempt to win Canada a useless seat on the useless UN Security Council…he even cozied up to the rogue regime of Iran, warmly embracing Iranian foreign minister Foreign Minister Mohammad Javad Zarif at the 56th Munich Security Conference on Friday (video that Iran happily used for propaganda purposes)…back home where he belongs, Trudeau now says his government is committed to finding a “quick and peaceful” resolution to the blockades that have shut down swaths of the country’s rail system and temporarily blocked bridges and highways…those who are determined to “shut down” Canada surely sense the weakness in this country’s political leadership…in fact, there is a massive leadership vacuum…even “Conservative” Ontario Premier Doug Ford, all hat and no cattle as they would say out west, has hardly said a word about the disruptions that have carried on for more than a week…the national interest has no defender and the rule of law simply doesn’t exist…who’s even standing up for the democratically elected First Nation bands in northern British Columbia, all of whom support the Coastal GasLink pipeline?…every day the rail stoppages continue, the loss to the Canadian economy is staggering…with very rare exceptions (Jason Kenney in Alberta, for example), this country’s political leadership is an unmitigated disaster…

4. Palladium has quickly built on last week’s sharp gains, climbing more than $100 an ounce already this week to break above a bullish symmetrical triangle on the short-term chart…next measured Fib. resistance is near $2,800…the Palladium market was in a supply/demand deficit of more than 1 million ounces in 2019, and the shortage is expected to be even worse in 2020, according to Johnson Matthey in a report issued yesterday…analysts generally have cited strong auto-catalyst demand that is causing a continuing wide supply deficit…“The Palladium market deficit widened to over 1 million ounces in 2019, as combined primary and secondary supplies grew only modestly, while auto-catalyst demand surged higher on the back of new (emissions) legislation in China and more stringent testing regimes in Europe,” Johnson Matthey noted…the company said that average Palladium loadings rose by 14% in gasoline-powered cars…this drove automotive demand for Palladium to a record high of 9.7 million ounces, despite lower auto production in most regional car markets…all forms of Palladium demand amounted to 11.5 million ounces in 2019, up from 10.2 million in 2018, Johnson Matthey said…mine production eased to 6.89 million ounces from 7 million, hurt by lower shipments from Russia…however, recycling climbed to 3.42 million ounces from 3.12 million…investment demand remained negative, although the pace of liquidations slowed considerably from the previous several years…some 700,000 ounces of Palladium were in ETF vaults at the start of 2019, down from a peak of nearly 3 million in 2015…by August, the total fell to 590,000 before some moderate ETF buying in the final quarter of 2019, leaving them at around 660,000 ounces at the end of the year…imagine if ETF buying were to accelerate…“The Palladium deficit is likely to deepen in 2020, as an increasing number of Chinese and European vehicles meet China 6 and Euro 6d legislation, respectively,” Johnson Matthey added…“This is expected to drive up global average loadings on gasoline catalysts and could lift world automotive demand above 10 million ounces”

5. Silvercrest Metals (SIL, TSX) is pushing higher in early trading after this morning’s confirmation of a new discovery at its Las Chispas Project in Sonora, Mexico – the Babi Norte southeast faulted extension named the “Area 200 zone”…expansion drilling has significantly increased the strike length of the Babi Norte Vein from 1.2 km as previously announced on February 25 to over 2 km…39 drill holes in this area have established an initial high-grade footprint of 500 m x 125 m…drill results from these 39 holes in Area 200 show an average estimated true width of 1.5 m with a weighted average grade of 16.1 g/t Au and 2,166 g/t Ag, or 3,375 g/t AgEq…Area 200 is not included in the current resource estimate….with this discovery, the Babi Norte Vein becomes the highest-grade vein currently known on the property…Babi Norte now has a total of 274 drill holes, including Area 200, which will be part of the updated resource and initial reserve estimate for the Feasibility Study to be released around the middle of this year…the cut-off date for drill data to be included in the FS is the end of this month…CEO Eric Fier remarked, “Since the high-grade discovery in January, 2018, of the Babicanora vein, Area 51 zone, the Silvercrest technical team has been systematically testing out its theory of the nature of multiples for the potential to discover parallel high-grade precious metal veins and zones similar to Area 51.  With the high-grade discoveries of Las Chispas vein, Area 118, in November, 2019, and now the Babi Norte vein, Area 200, this work has proven effective. Area 200, approximately 500 m in strike length, is now considered the highest-grade discovery to date at Las Chispas and, combined with the remaining 1.5-km strike length of the vein, is the longest mineralized vein in the district, surpassing the Babicanora vein.  Area 200 is proximal to the Santa Rosa decline, suggesting it could be easily accessed with minimal underground development”SIL is up $1.31 at $10.08 as of 7:00 am Pacific

6. The Dow has fallen 89 points through the first 30 minutes of tradingApple (AAPL, NASDAQ) is under pressure after the company said the fallout from the coronavirus will cause it to miss its sales targets this quarter, sending shockwaves across tech stocks globally…meanwhile, Walmart reported fiscal 4th-quarter earnings this morning that fell short of analysts’ estimates…the retailer saw weak demand for toys, apparel and video games during the holiday season..in Toronto, the TSX is up 20 points with the Gold Index gaining 3 points to 264…exploration and production companies in the S&P/TSX Composite Index are collectively trading 70% below their 2014 peak…a resurgence in the Canadian energy sector is still nowhere in sight, leading more and more investors at home and abroad to the conclusion that the Oil patch is investable given Trudeau’s National Energy Program 2.0 (capital will always flow to where it’s wanted, and it’s increasingly flowing from Canada to the U.S.)…the Venture is up 3 points at 573…heavy volume in 1911 Gold (AUMB, TSX-V) in early trading on a major cross…it’s an attractive Gold junior we’ve been highlighting…AUMB is up a penny-and-a-half at 36.5 cents as of 7:00 am PacificAmex Exploration (AMX, TSX) has added 7 cents to $1.86 following last week’s new high-grade Gold discovery at depth at the Perron Property near Rouyn-Noranda…the stock confirmed a fresh breakout above $1.60 with a 27-cent gain last week…Palladium One (PDM, TSX-V) announced this morning that drilling will commence next week at its Palladium project in Finland…PDM is up a penny at 16 cents…other Palladium plays to keep an eye on include Canadian Palladium (BULL, CSE) and Transition Metals (XTM, TSX-V)…Sixth Wave Innovations (SIXW, CSE), which made its debut on the CSE with impressive volume and price action last week, has a major partner to crow about – the company announced last Thursday that Sumitomo Corporation of Americas is acting as sales representative for its IXOS®-Au product line…Sumitomo will introduce and promote IXOS® to its extensive customer base in the Gold mining industry and receive a 5% commission on applicable sales…Sumitomo completed a rigorous analysis and assessment of Sixth Wave’s disruptive IXOS® molecular imprinted nanotechnology used for Gold extraction, and is also interested in future Sixth Wave technological advancements for the extraction of other metals and contaminants associated with mining activities…SIXW raised nearly $14 million at 75 cents with no warrants…

7. As young adults from Generation Z start to carve out their career paths, they should not overlook the mining industry…there are 79,680 positions that will need to be filled in the mining field in Canada over the next decade, according to The Mining Association of Canada recently released annual report…a retirement wave is coming to the mining sector in the next decade which will see 25% of the industry’s current workforce retire by the year 2030, which represents around 57,000 positions…“The mining industry, both in Canada and abroad, faces a number of human resources challenges.  The 2020 edition of the Canadian Mining Labour Market Outlook estimates that the Canadian mining industry will need to hire 79,680 new workers over the next decade to 2030.  These new hires are required to replace retirees and fill new positions to meet baseline production targets”…on top of the retirement problem, the Canadian mining industry is facing an increasing brain drain when it comes to skilled workers…“Companies in other countries are actively recruiting Canadian graduates and workers, making retention challenging and recruitment highly competitive,” the report pointed out…

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February 13, 2020

7 @ 7:00

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

1. Gold has traded between $1,572 and $1,578 so far today…as of 7:00 am Pacific the yellow metal is up $7 an ounce at $1,573…Silver has jumped 21 cents to $17.66…Palladium has added $5 an ounce to $2,305 as it continues to trade within a bullish symmetrical triangle on the short-term chart…action this week suggests Palladium could be nearing another major breakout…base metals are up slightly with Copper, Nickel and Zinc at $2.61, $5.96 and 98 cents, respectively…the U.S. Dollar Index is relatively flat at 98.99 while Crude Oil has gained 55 cents to $51.72…global Oil demand is now expected to see its first quarterly contraction in over a decade, according to the International Energy Agency (IEA), as the coronavirus and widespread shutdown of China’s economy hits demand…in a news conference today, China said it confirmed 15,152 new coronavirus cases and 254 additional deaths…those figures include the ones reported earlier by Hubei province under its new diagnosis methodology…previously, infections were only allowed to be confirmed with nucleic acid tests, which can take days to process, but Hubei province is now using CT scans which can diagnose the virus more quickly…the epidemic will hit China’s auto sales and production hard over the short-term, according to the China Association of Automobile Manufacturers…preliminary data for January shows vehicle sales tumbled 18% while sales of battery electric and other so-called new energy vehicles plunged 54.4%, down for a 7th month in a row…meanwhile, Canada is not without its share of problems these days…thousands of Alexandria Ocasio-Cortez’s have been mobilized across the country by the aboriginal extremist Wet’suwet’en “hereditary chiefs” and far-left foreign-funded affiliates who are determined to disrupt infrastructure, the resource sector and the broader economy as much as possible…in B.C., one of multiple provinces affected, rail shipments of perishable food, chlorine for water treatment and raw materials for manufacturers have been halted…unfortunately, this comes at a time when there is a huge vacuum of political leadership in Canada, particularly at the federal level…an extremist minority voice is being allowed to declare that it is the only true voice, and it’s ignoring court orders and using blockades to prevent companies from going about their lawful business…capital is going to increasingly flow to the United States if this craziness in Canada is allowed to continue…the unelected, unaccountable, foreign funded, anarchist and anti-capitalist “hereditary chiefs” are also undermining legitimate, moderate and entrepreneurial First Nation groups across the country who want to lift their people out of poverty…what’s happening here is a national disgrace…

2. The Palladium market was in a supply/demand deficit of more than 1 million ounces in 2019, and the shortage is expected to be even worse in 2020, according to Johnson Matthey in a report issued yesterday…analysts generally have cited strong auto-catalyst demand that is causing a continuing wide supply deficit…“The Palladium market deficit widened to over 1 million ounces in 2019, as combined primary and secondary supplies grew only modestly, while auto-catalyst demand surged higher on the back of new (emissions) legislation in China and more stringent testing regimes in Europe,” Johnson Matthey noted…the company said that average Palladium loadings rose by 14% in gasoline-powered cars…this drove automotive demand for Palladium to a record high of 9.7 million ounces, despite lower auto production in most regional car markets…all forms of Palladium demand amounted to 11.5 million ounces in 2019, up from 10.2 million in 2018, Johnson Matthey said…mine production eased to 6.89 million ounces from 7 million, hurt by lower shipments from Russia…however, recycling climbed to 3.42 million ounces from 3.12 million…investment demand remained negative, although the pace of liquidations slowed considerably from the previous several years…some 700,000 ounces of Palladium were in ETF vaults at the start of 2019, down from a peak of nearly 3 million in 2015…by August, the total fell to 590,000 before some moderate ETF buying in the final quarter of 2019, leaving them at around 660,000 ounces at the end of the year…imagine if ETF buying were to accelerate…“The Palladium deficit is likely to deepen in 2020, as an increasing number of Chinese and European vehicles meet China 6 and Euro 6d legislation, respectively,” Johnson Matthey added…“This is expected to drive up global average loadings on gasoline catalysts and could lift world automotive demand above 10 million ounces”

3.  Another reason for Gold to continue to track higher:  The sea of red ink is getting deeper and deeper in Washington, with the federal government already racking up a budget deficit that is averaging close to $100 billion a month…Treasury Department data released yesterday showed the shortfall at $389.2 billion in the first 4 months of fiscal 2020…that’s a 25% gain over the same period last year and already about 40% of the total deficit for fiscal 2019-2020…over the past 12 months, the government has spent $1.06 trillion more than it has taken in…all the red ink has bought the total national debt to $23.3 trillion…receipts actually are on the rise comparatively, coming in at $1.18 trillion through January compared with $1.1 trillion a year earlier…however, the rate of spending is adding to the shortfall, with outlays coming in at $1.57 trillion vs. $1.42 trillion for the first 4 months of fiscal 2019…that’s a 9.6% spending increase…

4. As young adults from Generation Z start to carve out their career paths, they should not overlook the mining industry…there are 79,680 positions that will need to be filled in the mining field in Canada over the next decade, according to The Mining Association of Canada recently released annual report…a retirement wave is coming to the mining sector in the next decade which will see 25% of the industry’s current workforce retire by the year 2030, which represents around 57,000 positions…“The mining industry, both in Canada and abroad, faces a number of human resources challenges.  The 2020 edition of the Canadian Mining Labour Market Outlook estimates that the Canadian mining industry will need to hire 79,680 new workers over the next decade to 2030.  These new hires are required to replace retirees and fill new positions to meet baseline production targets”…on top of the retirement problem, the Canadian mining industry is facing an increasing brain drain when it comes to skilled workers…“Companies in other countries are actively recruiting Canadian graduates and workers, making retention challenging and recruitment highly competitive,” the report pointed out…

5. This should come as no surprise:  Two Wet’suwet’en “hereditary chiefs” are suing Ottawa in a bid to force the federal government to take action on climate change…if the claim filed in federal court this week by these 2 “hereditary chiefs” of the Likhts’amisyu Clan succeeds, Ottawa would be forced to revisit the approval of projects such as the $6 billion, 670-km Coastal GasLink pipeline, if they prevent Canada from meeting international commitments to lower greenhouse gas levels…”What the Likhts’amisyu are saying to the federal government is that you’ve talked the talk, now it’s time to walk the walk,” said Richard Overstall, the lawyer for the chiefs…“And allowing these high greenhouse gas emitting projects to continue for 40 years isn’t walking the walk”…the lawsuit describes global warming as an “existential threat” that has specific impact on the “rights” of the Wet’suwet’en as guaranteed under Section 7 of Canada’s Charter of Rights and Freedoms – the right to life, liberty and security of the person (of course these are the same aboriginal extremists and anarchists who refuse to abide by court orders and do not respect the laws of the country)…the chiefs want a declaration from the Supreme Court that the Crown has a constitutional duty to act to keep global warming between 1.5 C and 2 C above pre-industrial levels…they also want a declaration that Canada has an obligation to meet those targets under a section of the Constitution that requires government to maintain “peace, order and good government”…and they’re seeking a requirement for Ottawa to prepare “a complete, independent and timely annual account of Canada’s cumulative greenhouse gas emissions” with the ability to cancel approval for projects that threaten climate goals…

6. In their own words:  Who are these individuals supporting the Wet’suwet’en “hereditary chiefs?…a typical example is 24 year-old Simran Dhunna of Climate Justice Toronto, profiled in a story by the left-leaning Toronto Star:  “We’re a youth-led group of young people who are uniting in solidarity with Indigenous folks who are on the front lines of the climate crisis.  We really believe that we’re going to be able to only stop the climate crisis when we confront its root causes: colonialism, white supremacy and capitalism (our emphasis).  A lot of our membership and youth around the city and country know that the struggle for Indigenous sovereignty is the struggle for climate action.  That’s part of the reason I was one of the people who was involved in a nearly 24-hour occupation of Carolyn Bennett’s office this Monday, rallying with others outside.  We occupied for 3 key reasons.  We want the Canadian government to implement UNDRIP and to respect Wet’suwet’en’s rights to free prior informed consent, which Coastal GasLink had never obtained.  We want the RCMP to stand down, to leave Wet’suwet’en land immediately, and to not arrest land defenders or searching through the Unist’ot’en’s healing centre.  This movement is taking the lead from Wet’suwet’en nation.  The Unist’ot’en camp has released a supporter tool kit (our emphasis).   And so climate activists and community groups have taken that toolkit and organized their own non-violent direct actions around the country.  For as long as there is an RCMP presence and for as long as the government and Coastal GasLink try to gain access to Wet’suwet’en land without consent, we will continue to take non-violent direct action and disrupt business as usual.  The government says that they’re climate leaders, say that they’re about reconciliation,  What we’re really seeing is inaction and hypocrisy on part of the government at the provincial and federal level”

7. The Dow has fallen 154 points through the first 30 minutes of tradingTesla (TSLA, NASDAQ) is under further pressure this morning after Elon Musk’s automaker announced plans to raise $2 billion in a stock offering through underwriters Goldman Sachs and Morgan StanleyTesla says it plans to use the proceeds from the offering “to further strengthen its balance sheet, as well as for general corporate purposes”…in Toronto, the TSX is down 31 points, with the Gold Index bucking the trend with a 3-point gain to 261…the Venture is 1 point lower at 570 at the top of a strong support band…Amex Exploration (AMX, TSX-V) has drilled a whopper of a hole – 29.4 g/t Au over 8.5 m (hole PE-20137) at its 100%-owned Perron Property near Rouyn-Noranda…this result is a major breakthrough as it opens up a whole new area of exploration in the Eastern Gold zone and is reminiscent of similar Abitibi Gold mines that have significant depth potential…PE-20137 extends the Gold mineralization at depth by 150 m as well as along strike by 75 m…it’s also to the east of a late-stage diabase dike as shown in an image on the company’s website…the intercept was from 631.5 m to 640 m (true width estimated at 45% to 75%) and shows exceptional grade continuity over the composite interval including 60.5 g/t over 0.70 m, 11.7 g/t over 1.00 m, 48.7 g/t over 0.60 m, 50.3 g/t over 0.50 m and 279.7 g/t over 0.50 m…AMX is breaking out to new all-time highs, up 27 cents at $1.82 as of 7:00 am Pacific…Eric Sprott is a major investor in AMX and will cheer these results…Great Bear Resources (GBR, TSX-V) has cut 10.6 g/t Au over 21 m in fresh results released this morning from its Dixie Project in the Red Lake District…the company has completed a successful “first pass” 4.2 km drill test of the LP Fault…all 59 drill holes on 50 to 250-m spacings successfully intersected Gold mineralization…a continuously mineralized zone is now interpreted (the “LP Fault zone”) which remains open both along strike and at depth…Balmoral Resources‘ (BAR, TSX) has commenced its 2020 winter drill program targeting several known Gold-bearing zones along the Area 51 system at its wholly-owned Fenelon Property…drilling is anticipated to continue through to spring break-up in April with a minimum of 5,000 m planned during the current phase of the program…Balmoral’s current 2020 exploration plan calls for a minimum of 20,000 m of drilling, focused almost exclusively on Gold targets on the Detour Gold Trend Project, which will be completed in 2 phases…Galway Metals (GWM, TSX-V) has cut 6.3 g/t Au over 30 m in the George Murphy zone (GMZ) at its Clarence Stream Project in southwestern New Brunswick…Sixth Wave Innovations (SIXW, CSE), which made its debut on the CSE earlier this week, has a major partner to crow about – the company announced this morning that Sumitomo Corporation of Americas is acting as sales representative for its IXOS®-Au product line…Sumitomo will introduce and promote IXOS® to its extensive customer base in the Gold mining industry and receive a 5% commission on applicable sales…Sumitomo completed a rigorous analysis and assessment of Sixth Wave’s disruptive IXOS® molecular imprinted nanotechnology used for Gold extraction, and is also interested in future Sixth Wave technological advancements for the extraction of other metals and contaminants associated with mining activities…SIXW raised nearly $14 million at 75 cents with no warrants…

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February 12, 2020

7 @ 7:00

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

1. Gold has traded between $1,561 and $1,568 so far today…as of 7:00 am Pacific the yellow metal is off $4 an ounce at $1,564…Silver has fallen 13 cents to $17.48 but remains well within key support…Palladium remains very strong with buyers stepping in on any dips…it’s relatively unchanged at $2,262 as it continues to trade within a bullish symmetrical triangle…key breakout area is $2,365 at the top of that triangle and Fib. resistance on the short-term chart…Copper is up a penny at $2.61…Nickel has added 2 cents to $5.95 while Zinc is unchanged at 98 cents…Crude Oil has rebounded another $1.39 a barrel to $51.33 while the U.S. Dollar Index has gained one-tenth of a point to 98.84…foreign dollars continue to flow into the United States which has the cleanest shirt in a pile of global dirty laundry…U.S. equity markets have hit new record highs…Wall Street is cheering last night’s New Hampshire primary victory by socialist Bernie Sanders who scored a narrow win in terms of total votes…buoyed by a strong organization, Sanders has to be considered the early favorite to win the Democratic nomination and challenge President Trump in November…the prospect of such a matchup, however, should be terrifying for Democrats as Sanders underscores Trump’s point that the once centre-left Democrats have been hijacked by the far left…Americans will never elect a socialist President…Sanders is a socialist, not a true Democrat, and his campaign could fracture the party…

2. Oil jumped more than 3% this morning as traders eyed deeper production cuts from OPEC and as China reported the lowest number of new coronavirus cases since the end of January, easing concerns about a drop-off in Crude demand…in a closely-watched monthly report published this morning, OPEC cut its forecast for Oil demand growth this year, saying the coronavirus outbreak was the primary reason…the cartel said it now expects 2020 daily Oil demand growth to be 990,000 barrels per day (bpd), which is 230,000 bpd below prior forecasts…this, in turn, could encourage OPEC and its allies, known as OPEC+, to implement additional production cuts…“The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global Oil demand growth in 2020,” OPEC said in its report…an OPEC+ technical committee last week recommended expanding production cuts to put a floor under falling Oil prices, although there was some resistance from Russia…RBC’s Helima Croft, a leading authority on Crude Oil and the global head of commodity strategy at RBC, said that Oil’s move higher is a “sign that we are getting close to Russia signing off on the OPEC+ deeper cut”

3. As Canada heads down a very dangerous path with deteriorating respect for the rule of law, and the critical resource sector, finally a politician is speaking out…Alberta Premier Jason Kenney on Twitter:  “It’s about time that our authorities demonstrated that Canada is a country that respects the rule of law.  Allowing mob rule to override the express democratic wishes of First Nations is unacceptable, and it has to end”…the left wing mainstream media in Canada still doesn’t get it, nor do many Canadians it seems…there should be no sympathy for the Wet’suwet’en “hereditary chiefs”they are not innocent “land defenders” – they are foreign funded anarchists, aboriginal extremists, with a carefully crafted agenda to undermine Canada’s resource sector…all native groups, with the exception of the outlier Wet’suwet’en “hereditary chiefs”, support the Coastal GasLink pipeline in northwest British Columbia…the “hereditary chiefs” conducted an illegal blockade against this project and are supported by such groups as Red Braid Alliance for Decolonial Socialisman anti-capitalist organization that was responsible for shutting down Canada’s busiest port in Delta, B.C., last weekend…this movement has wings to it…“We’re part of a nationwide movement to shut down Canada in solidarity with Wet’suwet’en,” Red Braid organizer Isabel Krupp stated several days ago when her thugs blockaded the port in Delta and then defied a court order…meanwhile, in a statement yesterday, CN Rail announced that it would be shutting down “significant” portions of its rail network due to ongoing protests…this raises serious questions about the stability of Canada’s transport system and concerns about adequate enforcement of court orders putting an end to protests…a variety of shipments – food, construction materials, lumber, coal and propane – have been affected by the rail blockades just east of Belleville, Ontario, and in New Hazelton, British Columbia…near Belleville, members of the Tyendinaga Mohawk Territory have parked a large dump truck with a plough along the tracks…where is law enforcement and where is Ontario Premier Doug Ford?…the protests have stopped Via Rail passenger trains as well as CN trains, cutting off routes between Toronto, Ottawa, Montreal and Kingston…is this the kind of country Canadians want?…if it is, the socialist mob will prevail and the economy will go completely into the tank...unfortunately, Canada at the moment is in a weakened position because it’s a leaderless country, unlike its major trading partner to the south where the economy is zipping along under the strong leadership of President Trump (love ’em or hate ’em)…Justin Trudeau at the moment is roaming around South Africa promoting his globalist agenda when he should be here at home right now advocating a Canada First agenda…capital will increasingly flow to the United States unless this nonsense is Canada is stopped, and quickly…

4. Here’s a refreshing switch (and it’s the kind of activism that we need to see more of from entrepreneurial First Nations) – sue the Feds for NOT approving a resource project…the Financial Post’s Geoffrey Morgan wrote yesterday that an Indigenous group that stands to benefit from Teck Resources‘ (TECK.B, TSX; TECK, NYSE) Frontier Oil sands project in Alberta says it would launch a legal challenge against the Trudeau government if it rejects the development (as expected) later this month…“We do recognize that there are ways that we can go – and that’s one,” stated Ron Quintal, President of the Fort McKay Metis Nation, about launching a legal challenge if the Frontier Project is rejected…“We are prepared”Quintal says the Trudeau government has not yet consulted with his group…if a legal challenge is launched, it would mark a new type of challenge launched by an Indigenous community arguing their rights have been infringed by a project being rejected…the Fort McKay Metis are 1 of the 14 Indigenous groups that have signed benefits agreements with Teck…ironically, Canada’s “inclusive, progressive” federal government is carrying out a resource policy that is actually anti-First Nations as it’s perpetuating First Nations’ poverty…that’s the argument that conservatives need to push…

5. The Dow has soared 259 points through the first 30 minutes of trading…in Toronto, the TSX is up only 66 points…Barrick Gold (ABX, TSX; GOLD, NYSE) has reported a higher 4th-quarter adjusted profit that beat analysts’ estimates…it also announced a dividend hike and an increase in Gold reserves…the company posted adjusted 4th-quarter earnings – excluding special items – of $300 million (U.S.), or 17 cents per share, up from $264 million, or 15 cents, in the 3rd quarter…the result slightly beat the consensus estimates of analysts…the Venture, holding above a strong support band between 570 and 560, is steady at 573HIVE Blockchain (HIVE, TSX-V) is up another 2 cents at 49 cents…the stock has been a very heavy trader on a major surge in the share price, though strong resistance exists in the mid-to-upper-50’s on the long-term chart (Fib. resistance at 55 cents and the declining 500-day SMA at 58 cents)…Garibaldi Resources (GGI, TSX-V) has brought in much-needed fresh blood…Mark Scott, the former head of Nickel operations in Manitoba for Vale Canada, has joined the GGI board and has also taken on the role of VP Corporate Development…“With its top-tier Nickel grades combined with 10 other metals, including high-grade Copper, Palladium, Platinum and Rhodium in massive sulphides, the Nickel Mountain discovery is an extremely rare find on a global scale,” stated Scott…he added that his mandate is to “help unlock the full value of the most exciting Nickel sulphide exploration project in the world entering what’s shaping up to be a decade of high demand for Class 1 Nickel and strategic metals”GGI is up a nickel on the news at 84 cents as of 7:00 am Pacific…the chart shows a bottom in the high 60’s recently and a likely near-term move through the 50-day SMA at 86 cents…

6. Pretium Resources (PVG, TSX-V) is down sharply in early trading, making the company an even more attractive takeover target…change is definitely on the way at Pretium…the company has been consistently profitable with strong cash flow since commercial production started at Brucejack in 2017…however, investors are disappointed that the company’s early estimates of a fairly quick ramp-up to half a million ounces per year aren’t going to be realized…Gold production at Brucejack for 2020 is expected to be in the range of 325,000 to 365,000 ounces…the production rate for 2020 is expected to be 3,800 tonnes per day with the average annual Gold grade ranging between 7.6 g/t to 8.5 g/t at a targeted recovery of 97%…the midpoint of 2020 Gold production guidance is slightly below 2019 actual production, and that certainly has investors less than impressed nearly 3 years into mining…adjusted earnings for the 4th quarter were $33.1 million (U.S.), or 18 cents, up from $20.2 million, or 11 cents, in the same period of 2018…meanwhile, Pretium says its board of directors has started searching for a new President and CEO with current CEO Joseph Ovsenek planning to continue in his role while the search is under way…Ovsenek has been President and CEO since 2017 and President since 2015PVG is down $2.47 a share to $10.25

7. Sixth Wave Innovations (SIXW, CSE) made its CSE debut yesterday, closing at 59 cents…Sixth Wave, which raised nearly $14 million at 75 cents, is a North American-based nanotechnology company focusing on extraction products and technologies primarily for the resource and life sciences industries…the company specializes in molecular engineering, a discipline that is revolutionizing the fields of materials extraction, detection, purification and design…founded in 2013, Sixth Wave began as a manufacturer of detection devices for Homeland Security applications….since then, the company has expanded its remarkably selective detection and extraction technologies to address applications in high-value metals and pharmacological applications, with patent applications and protections now spanning over 40 countries…“We’re delighted to make this important transition to the capital markets, as a means of accelerating our growth trajectory and maximizing our future visibility,” stated Dr. Jonathan Gluckman, President and CEO…Sixth Wave has selected Gold as the initial target of our resource products division.  The timing for our commercial release is excellent, as demand for this historically rewarding metal is in an upswing.  Our IXOS-AuC product offers Gold producers an unprecedented means of increasing recoveries and maximizing profits.  The platform promises to replace activated carbon outright as the go-to method of Gold extraction, with minimal retrofitting to existing circuits, significantly lower capex for new installations, and significant increases in gold recovery and cost savings.  Simply put, we could not have chosen a better target metal, a better value proposition or better juncture for aggressive expansion in the resource sector”

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February 11, 2020

7 @ 7:00

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

1. Gold has traded between $1,565 and $1,575 so far today…as of 7:00 am Pacific the yellow metal is relatively unchanged at $1,571…Silver is off slightly at $17.69…Palladium dipped as low as $2,215 overnight but has bounced back and is now even on the day at $2,260…base metals are firming up…Copper has climbed 3 pennies to $2.69, Nickel has jumped 12 cents to $5.95 while Zinc is up a penny at 98 cents…Crude Oil has rebounded 81 cents to $50.38 while the U.S. Dollar Index is flat at 98.77China’s National Health Commission last night said the coronavirus death toll had risen to 1,016 people with 42,638 confirmed cases…however, data from Johns Hopkins University showed the number of new confirmed cases was its lowest since late January, increasing optimism around the country’s efforts to contain the outbreak…the epidemic could peak this month and then plateau before easing, according to the Chinese government’s top medical adviser on the outbreak…China, however, has not been totally transparent with regard to the coronavirus…in the United States, fears over the economic fallout from the outbreak have been offset by positive economic indicators thanks to a strong Trump economy…jobs data released last week easily beat analysts’ expectations while U.S. manufacturing and services activity show signs of improvement…

2. Federal Reserve Chair Jerome Powell was fairly upbeat about the outlook for the U.S. economy in the first of his twice-a-year updates to Congress this morning, but cited a potential threat from the coronavirus in China and concerns about the economy’s long-term health…the U.S. economic expansion, now in its 11th year, is the longest on record…over the 2nd half of 2019 “the economy appeared resilient to the global headwinds that had intensified last summer,” Powell said in remarks to the House Financial Services Committee, as economic activity increased further and the labor market strengthened…his remarks echo the formal report the Fed submitted to the U.S. Congress on Friday, which repeated the central bank’s view that its current target range for short-term borrowing costs, between 1.5% and 1.75%, is “appropriate” to keep the expansion on track…with risks like trade policy uncertainty receding and global growth stabilizing, Powell signaled he sees no reason to adjust interest rates unless new developments cause a “material reassessment” to the current outlook…

3. Freda Huson, the spokesperson for the Wet’suwet’en “hereditary chiefs”, is an alt-left aboriginal extremist often championed by socialist and Marxist groups across North America and the globe…far from being a “land defender”, as a CTV News reporter generously described her (similar to calling a terrorist a “freedom fighter”), she is a law-breaking anti-resource, anti-capitalist foreign-funded anarchist who’s actually damaging the cause of First Nations across Canada – Indigenous peoples, unlike her, who actually work or want to work for a living, often in Canada’s resource sector where wages are high…she has aligned the Wet’suwet’en with the Red Braid Alliance for Decolonial Socialism, a radical foreign-funded anti-capitalist group that was responsible for shutting down Canada’s busiest port in Detla, B.C., on Sunday…“We’re part of a nationwide movement to shut down Canada in solidarity with Wet’suwet’en,” Red Braid organizer Isabel Krupp stated…“More than $1 billion of commerce moves through Deltaport every year.  We’re shutting it all down.  There’s no commercial traffic going in or out of Deltaport today”…Krupp’s thugs didn’t want to respect a court order and had to be arrested…Red Braid’s mission statement: Red Braid is a revolutionary working class and Indigenous organization.  We fight to abolish colonialism, imperialism and capitalism, which are destroying our communities and the nonhuman world.  We fight for multiple worlds where the free, full, creative development of each person is the responsibility of all”is there not a single politician in Canada who is willing to stand up to this nonsense?…First Nations negatively impacted by the actions of Huson, Wet’suwet’en “hereditary chiefs” and their supporters also need to break their silence…all elected native bands along the Coastal GasLink route are supporting the project and will reap substantial economic and social benefits from it…

4. Here’s a refreshing switch (and it’s the kind of activism that we need to see more of from entrepreneurial First Nations)…the Financial Post’s Geoffrey Morgan wrote this morning that an Indigenous group that stands to benefit from Teck Resources‘ (TECK.B, TSX; TECK, NYSE) Frontier Oil sands project in Alberta says it would launch a legal challenge against the Trudeau government if it rejects the development (as increasingly expected) later this month…“We do recognize that there are ways that we can go – and that’s one,” stated Ron Quintal, President of the Fort McKay Metis Nation, about launching a legal challenge if the Frontier Project is rejected…“We are prepared”Quintal says the Trudeau government has yet to consult with his group (if a legal challenge is launched, it would mark a new type of challenge launched by an Indigenous community arguing their rights have been infringed by a project being rejected)…the Fort McKay Metis are one of the 14 Indigenous groups that have signed benefits agreements with Teck

5. Skeena Resources (SKE, TSX-V) has drilled 14.8 g/t AuEq (11.5 g/t Au and 247 g/t Ag) over 31 m as Eskay Creek…other highlights of late 2019 drilling results released this morning included 15 g/t Au and 70 g/t Ag over 18.26 m; 1.5 g/t Au and 355 g/t Ag over 21 m; and 2.8 g/t Au and 44 g/t Ag over 25 m (core lengths represent 80100% of true widths)…4 surface drill rigs were utilized for the 2019 program in the 21A, 21E and HW Zones to infill and upgrade areas of Inferred resources to the Indicated classification…infill drilling within the 21A Zone continues to confirm historical widths and improve upon historically defined grades…the company expects to commence 2020 drilling with multiple rigs in the coming days…SKE is up 2 pennies at $1.15 in early trading…

6. The Dow is up 85 points through the first 30 minutes of trading as Wall Street continues to post record highs…in Toronto, the TSX has gained 57 points…the Venture, holding above a strong support band between 570 and 560, is up a point at 572HIVE Blockchain (HIVE, TSX-V) has hit a new multi-month high of 46.5 cents in early trading, on continued impressive volume, though extreme RSI(14) conditions have formed on the daily chart…Canadian Palladium (BULL, CSE) has commenced drilling at its East Bull Palladium Property near Sudbury…a 2nd rig will be added once logistics are settled and snow has been removed from various drill sites…the first drill is starting in the western end of the Valhalla zone and will progress eastward, infilling gaps and drilling down dip in an effort to expand the NI-43101 resource…Canada Cobalt (CCW, TSX-V) has added 3 pennies to 63 cents in early trading…new core photos from Castle East show that CCW has drilled into what clearly appears to be more exceptionally high-grade Silver as part of another vein shoot near the lower contact of the Nipissing diabase with Archean volcanics, approximately 350 feet from the original discovery zone that returned values as high as 212 oz/ton (~70,000 g/t) over a 4-m core length…

7. Canada’s government should fund initiatives like a proposed $1.6 billion project that would provide power and fiber optics to the country’s remote north and spur new business, says a prominent Gold mining executive…Canada’s Infrastructure Bank recently signed an MOU to assess the project, which needs federal investment to get built and would run to Nunavut from Manitoba…“This has to be looked at as nation building,” said Agnico Eagle (AEM, TSX, NYSE) CEO Sean Boyd in an interview…Agnico, Canada’s largest Gold producer, runs 3 Gold mines in the Kivalliq region and is Nunavut’s largest private employer…“A big part of that funding has to come from the federal government to not only build the power line to benefit the current communities, but to look at it as a way to finally open up an area which has tremendous potential,” he said…Nunavut is a vast Arctic region – the size of Mexico – with a population of 36,000 mostly Inuit that separated officially from the Northwest Territories 20 years ago…though rich with mineral deposits, it suffers from a dire lack of infrastructure and all electricity is produced by diesel generators…electricity production for the territory consumes 55 million litres (15 million gallons) of diesel each year, and Agnico Eagle’s Nunavut sites require 80 million litres (21 million gallons)…“As we’re considering major projects and as we make new discoveries in the north, which we believe will be there, we need a cost structure that allows you to build those into meaningful businesses,” Boyd said…

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February 10, 2020

7 @ 7:00

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

1. Gold has traded between $1,569 and $1,577 so far today…as of 7:00 am Pacific the yellow metal is up $3 an ounce at $15.73…commercial traders have been quietly and systematically covering their short positions…over the past week they unwound 41,310 shorts, leaving them with a current net short position of 344,788 contracts…Silver is up 4 pennies at $17.71…Palladium has jumped $37 an ounce to $2,250…key resistance, at the top of a symmetrical triangle, is $2,350…Copper is steady at $2.56…Nickel has rebounded 8 cents to $5.83 while beaten-down Zinc has fallen another penny to 96 cents…Crude Oil is 44 cents lower at $49.88…Crude Oil prices are down more than 20% from their January high after the coronavirus hit demand in the world’s largest Oil importer and fuelled concerns of excess supply…worries over supply were not alleviated on Friday when Russia said it needed more time to decide on a recommendation from a technical committee that has advised OPEC and its allies to cut production by a further 600,000 barrels per day (bpd)…the strengthening U.S. Dollar Index is up slightly at 98.74…the greenback has climbed steadily since the number of coronavirus cases began surging in China last month, pushing the Dollar Index to its highest level since early October…with many analysts concerned that disruptions to the Chinese economy will dent global growth, investors have been clinging to U.S. assets…a high dollar works against the Fed’s desire to see inflation pick up…the White House’s economic adviser on Friday said that the Trump administration does not expect the coronavirus in China will have a major effect on the U.S. economy…“There’s a lot of variables involved and things we don’t know.  Internally we have looked at a drop in GDP of perhaps two-tenths of 1% – that’s all we found so far.  We think it will be an absolute minimal impact,” said National Economic Council Director Larry Kudlow…U.S. January retail sales figures due Friday will be important as consumer spending accounts for two-thirds of economic growth…retail sales are forecast to have increased by 0.3% month-on-month in January…

2. Inflation in China hit its highest level in more than 8 years last month as the coronavirus drove up demand for some consumer goods and shuttered business activity in parts of the country…China’s consumer price index rose 5.4% in January after rising 4.5% in December…the jump in prices comes as economic activity has been curtailed across large parts of the country by the coronavirus outbreak, though some of the closed factories are now starting to reopen…as of last night, the country had more than 40,000 confirmed cases and 908 deaths from the virus…the number of cases has exceeded the SARS outbreak in 2002-2003 but the mortality rate is far lower at around 2%…over the weekend, the Chinese government pledged to spend more than $10 billion to fight the virus…Beijing has orchestrated support for its companies and financial markets in the past week and investors are hoping for more stimulus to lift the world’s 2nd-biggest economy…

3. When Federal Reserve Chairman Jerome Powell heads to Capitol Hill for 2 days of testimony beginning tomorrow, he’ll will face questions about how the central bank might respond to new economic uncertainties emanating from China…Fed officials cut their benchmark federal-funds rate 3 times last year, to a range between 1.5% and 1.75%, after raising it 4 times in 2018…they left the rate unchanged at their meeting last month and maintained their wait-and-see policy stance…Powell’s testimony will be made public tomorrow morning, prior to market open, and his hearing before the House Financial Services Committee is set to begin at 10:00 am EST…he is scheduled to appear Wednesday before the Senate Banking Committee…one thing’s for certain – the Fed has no desire or inclination to raise rates this year, and that’s positive for equity markets and precious metals…

4. The Trudeau government will pour gas on the fire of western separatism, and further damage Canada’s resource sector, if Alberta’s $20 billion Frontier Oil sands mine proposed by Teck Resources (TECK.B, TSX) is rejected by the federal cabinet later this month…at a Friday news conference, Alberta Environment Minister Jason Nixon flatly rejected any suggestion that Ottawa could placate the province with an “aid package” if it turns down the project…“Albertans are not looking for a Justin Trudeau handout.  We’re not interested in that.  We want Justin Trudeau and the federal government to get out of Albertans’ way, to let hard-working Albertans do what they do best, which is create prosperity for this province and create prosperity for this country”Reuters reported Thursday that that federal officials were preparing various streams of funding for Alberta, including cash to help clean up thousands of abandoned wells spread across the province…Alberta Premier Jason Kenney told an audience at the Canada Institute in Washington, “It’s hard to overstate the response of Albertans, not just our government, but Albertans broadly, if this project were to be rejected”Teck has already spent $1 billion during the past decade to clear a series of regulatory hurdles, invest in technology designed to lighten the mine’s carbon footprint and forge agreements with First Nations group…a rejection from Ottawa now would signal to investors that despite such efforts, projects can ultimately be scuttled by an “arbitrary political decision” made without any transparency, he said…“I think that would be a devastating message to send in terms of investor confidence at a time when we are struggling to attract foreign direct investment to the Canadian economy,” he said, speaking alongside Saskatchewan Premier Scott Moe…“So the response would be very challenging”…demand for Crude Oil will continue during the coming decades even as energy transitions away from fossil fuels, Kenney added, and it’s better that the last barrel of Oil come from “a stable reliable democracy with the highest environmental and human rights labour standards on earth. Teck represents a pathway to that”

5. This is getting insane, yet another example of how Canada has become dysfunctional: Commerce and travel disruption in parts of Ontario and Quebec (VIA Rail service) as well as British Columbia in recent days has been triggered by protestors sympathetic to the Wet’suwet’en “hereditary chiefs” who are illegally blocking construction of the CoastalGas Link pipeline in British Columbia…the Wet’suwet’en are an unelected, unaccountable, foreign-funded and anti-Canadian “fake” native band in northern B.C. that refuses to recognize Canadian laws…they have the full support of a radical anti-capitalist group called Red Braid Alliance for Decolonial SocialismRed Braid effectively shut down Canada’s busiest port in Delta yesterday…“We’re part of a nationwide movement to shut down Canada in solidarity with Wet’suwet’en,” protest organizer Isabel Krupp said…“More than $1 billion of commerce moves through Deltaport every year.  We’re shutting it all down.  There’s no commercial traffic going in or out of Deltaport today”...late yesterday, a B.C. court granted an injunction against those protesters who also blocked the Port of Vancouver in solidarity with Wet’suwet’en pipeline opponents…meanwhile, the Wet’suwet’en and their radical supporters are also putting lives in danger…RCMP said Friday they have opened a criminal investigation into the alleged cutting of support beams on the Lamprey Creek Bridge near the main Coastal GasLink protest camp, making it unsafe for all foot and vehicle traffic…the $6-billion, 670-km Coastal GasLink pipeline has the support of all elected First Nations band councils along the route, including 5 of the 6 band councils in the Wet’suwet’en nation…the “hereditary chiefs” are the problem and all attempts at negotiation with these individuals have failed…their real agenda is revealed by Red Braid’s mission statement, “Red Braid is a revolutionary working class and Indigenous organization.  We fight to abolish colonialism, imperialism and capitalism, which are destroying our communities and the nonhuman world.  We fight for multiple worlds where the free, full, creative development of each person is the responsibility of all”…where is the political leadership in Canada to stand up to this nonsense?…

6. The Dow has added 49 points through the first 30 minutes of tradingAmazon (AMZN, NASDAQ) has hit a new record high, topping $2,100 per share…despite Friday’s losses, Wall Street posted its biggest weekly gain since June as the S&P 500 jumped 3.2%…strong economic data along with solid corporate earnings reports fuelled the market’s weekly surge…in Toronto, the TSX is up 22 points while the Venture is 2 points lower at 572Hive Blockchain (HIVE, TSX-V), up a nickel at 34 cents as of 7:00 am Pacific, is the early volume leader on the Venture…the company announced this morning that it now anticipates about a 40% reduction in its operating and maintenance costs at its GPU mining facility in Sweden, compared with such costs under its previous service provider agreement, which it ended in November of last year…this improvement is the result of locking in a lower than anticipated electricity rate, stemming from an unusually warm winter in Sweden, for a majority of the company’s electricity costs via hedging agreements that will continue through 2020…electricity, which is provided through green energy, comprises the majority of the company’s operating and maintenance costs…Antibe Therapeutics (ATE, TSX-V) has been hot lately…the stock traded more than 13 million shares last week as it added another 8 cents to close the week at 65 cents…it’s unchanged in early trading this morning…

7. Canada’s government should fund initiatives like a proposed $1.6 billion project that would provide power and fiber optics to the country’s remote north and spur new business, said a Gold mining executive yesterday…Canada’s Infrastructure Bank on Wednesday signed an MOU to assess the project, which needs federal investment to get built and would run to Nunavut from Manitoba…“This has to be looked at as nation building,” said Agnico Eagle (AEM, TSX, NYSE) CEO Sean Boyd in an interview…Agnico, Canada’s largest Gold producer, runs 3 Gold mines in the Kivalliq region and is Nunavut’s largest private employer…“A big part of that funding has to come from the federal government to not only build the power line to benefit the current communities, but to look at it as a way to finally open up an area which has tremendous potential,” he said…Nunavut is a vast Arctic region – the size of Mexico – with a population of 36,000 mostly Inuit that separated officially from the Northwest Territories 20 years ago…though rich with mineral deposits, it suffers from a dire lack of infrastructure and all electricity is produced by diesel generators…electricity production for the territory consumes 55 million litres (15 million gallons) of diesel each year, and Agnico Eagle’s Nunavut sites require 80 million litres (21 million gallons)…“As we’re considering major projects and as we make new discoveries in the north, which we believe will be there, we need a cost structure that allows you to build those into meaningful businesses,” Boyd said…

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February 7, 2020

7 @ 7:00

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

1. Gold has traded between $1,561 and $1,575 so far today…as of 7:00 am Pacific the yellow metal has reversed to the upside, $6 higher at $1,572…holdings of Gold by physically backed ETFs have risen for 12 consecutive business days, according to BMO Capital Markets…holdings continue to rise as “portfolio positioning retains a defensive hedge amid coronavirus concern,” BMO said…yesterday these holdings climbed by another 112,000 ounces, taking net purchases this year to 1.65 million ounces…analysts also cited World Gold Council data showing that 61.7 metric tons of Gold were added in January, over half of which were by European funds…“This asset allocation annuity continues to support Gold prices…despite a relative lack of traditional retail consumers,” BMO said…Silver is off slightly at $17.73…Palladium has fallen $46 an ounce to $2,182…Copper is down 4 cents at $2.56…Nickel has lost 12 cents to $5.76 while beaten-down Zinc has dipped below $1 to 98 cents…Crude Oil has retreated 69 cents to $50.62 while the U.S. Dollar Index is unchanged at 98.48the Democrats’ politicized impeachment strategy appears to have backfired big-time, and that has major implications for the markets through the remainder of 2020…new polling by Gallup reveals that President Trump’s approval rating is now at an all-time high of 49%…the poll was taken between January 19-26 while Trump’s impeachment trial was taking place…the Republican Party has also seen its approval rating skyrocket…51% of Americans now say they have a favorable view of the GOP – that is up from 43% in September and it’s the first time that a majority has expressed a favorable opinion of the Republican Party since 2005…on the other hand, only 45% say that they have a positive opinion of the Democratic Party – that is down slightly from September…this week we also learned that the Democrats, who are advocating unprecedented government intervention in the U.S. economy and of course a “Green New Deal” to “save the planet”, can’t even count their own votes in Iowa…

2. The globalist Trudeau Liberals appear to be gearing up for another blow against Western Canada and Oil and gas development in this country, all in the name of course of “saving the planet”…media reports say the government is preparing an “aid” package for Alberta in hopes of appeasing the province if the $20 billion proposed Frontier Oil sands mine is rejected by Cabinet later this month…as the mayors of Alberta’s 2 biggest cities were in Ottawa calling for fair treatment for the province, Reuters reported that approval for the project has become a major battle within the Liberal Party…“Rejecting Teck without providing Alberta something in return would be political suicide,” a source told Reuters…rejecting Teck, period, would be political suicide as it’ll be viewed as yet another attack against the West and Oil and gas development in this country by an economically incompetent federal government…it would create a Western backlash (and a backlash from North American and international investors) like the Liberals have never seen…options being considered in the “provincial aid package” include a cash injection to help clean up thousands of inactive Oil and gas wells abandoned by bankrupt companies…also under discussion is expanding the federal fiscal stabilization program that helps provinces deal with economic downturns…local infrastructure projects could also be in the mix…even the liberal Mayor of Calgary, Naheed Nenshi, urged the Trudeau cabinet to approve the mine and cautioned against an instinctual bias toward Eastern interests that would overlook the project’s benefits…“If this project is not one that the government can approve, then they should just admit that there’s a moratorium on all energy investment in Canada”…rejecting the project, which Teck says would eventually create 7,000 jobs, would be “a devastating signal for investors looking at Canada,” a spokesman for Alberta’s energy minister said…

3. This is long overdue: RCMP have arrested 6 opponents of a natural gas pipeline through northern B.C. after moving in yesterday and enforcing a court injunction around a key project worksite…it comes a day after the RCMP held a news conference pleding that officers would take a “light touch” when enforcing the B.C. Supreme Court order requiring that Coastal GasLink workers be given access to the area near Houston…the 6 who were arrested are more than just “opponents” and they belong in jail for an extended period – they are anarchists who refuse to respect the laws of the land (if you oppose these radical “First Nation” individuals you are labelled a “racist”)…their actions are illegal (in direct violation of a recent court order) and detrimental to the economy and the legal pursuit of resource development in this country…they want the United Nations to come to their defence…ironically, all of the elected First Nation groups along the pipeline route are in favor of the project, and are benefiting from it, so these anarchists/eco-terrorists are even hurting their own people…it’s time Canada stood up and took a very tough stand against this nonsense…

4. U.S. employers added a robust 225,000 jobs in January, much more than expected, and the jobless rate was 3.6%, signs that the U.S. labor market is positioned to fuel economic growth in 2020…wages increased 3.1% from a year earlier, a touch higher than December’s annual rise of 3% and the 18th consecutive month of gains 3% or better…economists surveyed by The Wall Street Journal had forecast job growth of 158,000, an unemployment rate of 3.5% and year-over-year wage growth of 3%…January’s payroll gain points to a continued healthy labor market in a U.S. economic expansion now in its 11th year…over the past 3 months, the U.S. economy added an average 211,000 jobs…strong jobs growth and solid but not runaway wage growth will be positive for stocks through the balance of 2020

5. The Dow has retreated 208 points after a 4-session winning streak…the major averages hit new record highs yesterday, boosted by China’s decision to halve tariffs on $75 billion worth of U.S. products…in Toronto, the TSX has lost 64 points…the Gold Index is up another point at 263…the Venture, meanwhile, is off 1 point at 577…technically, the Venture continues to look healthy and it’s just a matter of time before a key breakout occurs above the critical mid-580’sVenture volume averaged 140.6 million shares last month, up slightly from December but down about 7% from January last year…the total value of financings in January was up 24% from the previous month and up 59% from January 2019…yet another Venture company that thinks nothing of doing a cheap, dilutive financing that makes no sense and only a weak and lazy management team would allow – Fremont Gold (FRE, TSX-V) has increased its previously announced $1 million at financing at 6 cents, with a full warrant at 10 cents, to $1.47 million (24 million shares and 24 million warrants)…this destroys what was a fairly attractive share structure prior to the PP as only 54.3 million shares were outstanding…Canaccord Genuity’s Canadian capital markets revenue dropped 42% in the last 3 months of 2019 compared with the previous year, driven by a sharp decline in cannabis underwriting work…the Canadian Marijuana Index has fallen another 7 points to 183, its lowest level since October 2016

6. Another sign of the times in the struggling cannabis sector: Aurora Cannabis (ACB, TSX, NYSE) CEO Terry Booth is stepping down and the company is laying off hundreds of employees…the announcement came just days before Aurora is due to report quarterly earnings…the layoffs will eliminate 500 full-time-equivalent staff, including 25% of corporate positions…the company also announced that it expects to take a $740 million to $775 million writedown on goodwill, and an impairment charge of between $190 million and $225 million…the moves are another sign of the reversal in the fortunes of Canada’s cannabis industry…Booth has led Aurora since 2013, overseeing the Edmonton company’s stunning transition, through a series of acquisitions, into Canada’s 2nd largest cannabis company by sales and third largest by market capitalization…over the past year, however, Aurora has struggled to live up to the expectations it set in the lead-up to the legalization of recreational marijuana…sales growth has faltered, and the company continues to burn through cash at a rapid rate…in November, it announced that it was stopping construction on 2 new facilities, including a 1.6-million sq. ft growing operation in Medicine Hat…Booth will remain on the Aurora board…Aurora’s stock has lost 80% of its value over the last year, a stunning decline for the 2nd largest pot producer in the country, a company that was once worth more than $10 billion…the licensed producer has been struggling with consecutive revenue declines, a high monthly burn-rate, soaring debt and depleting cash resources, having never struck a deal with a large multinational conglomerate that could have at least salvaged much of its short-term cash issues…

7. Canada’s government should fund initiatives like a proposed $1.6 billion project that would provide power and fiber optics to the country’s remote north and spur new business, said a Gold mining executive yesterday…Canada’s Infrastructure Bank on Wednesday signed an MOU to assess the project, which needs federal investment to get built and would run to Nunavut from Manitoba…“This has to be looked at as nation building,” said Agnico Eagle (AEM, TSX, NYSE) CEO Sean Boyd in an interview…Agnico, Canada’s largest Gold producer, runs 3 Gold mines in the Kivalliq region and is Nunavut’s largest private employer…“A big part of that funding has to come from the federal government to not only build the power line to benefit the current communities, but to look at it as a way to finally open up an area which has tremendous potential,” he said…Nunavut is a vast Arctic region – the size of Mexico – with a population of 36,000 mostly Inuit that separated officially from the Northwest Territories 20 years ago…though rich with mineral deposits, it suffers from a dire lack of infrastructure and all electricity is produced by diesel generators…electricity production for the territory consumes 55 million litres (15 million gallons) of diesel each year, and Agnico Eagle’s Nunavut sites require 80 million litres (21 million gallons)…“As we’re considering major projects and as we make new discoveries in the north, which we believe will be there, we need a cost structure that allows you to build those into meaningful businesses,” Boyd said…

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February 5, 2020

7 @ 7:00

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

1. Gold has traded between $1,563 and $1,547 so far today…as of 7:00 am Pacific the yellow metal is up slightly at $1,554…no reason for Gold to dip below its solid floor of support between $1,550 and $1,520…Silver, with chart support beginning at $17.50, is unchanged at $17.56…base metals continue to recover…Copper has added 4 cents to $2.60…Nickel has jumped 14 cents to $5.95 while Zinc has added 2 pennies to $1.02…Cobalt prices have climbed by nearly $1 a pound in recent sessions, now at $15.76Crude Oil has gained nearly $2 a barrel to $51.43 after media reports that scientists had developed a drug against the Wuhan coronavirus…the World Health Organization played down the media reports, saying there are “no known effective therapeutics” against the virus…confirmed coronavirus cases are near 25,000, claiming the lives of 490 people…despite media hype, the coronavirus is not spreading globally in any significant way…more than 99% of the cases are in China and most are concentrated in the Hubei province where the virus was first detected in the city of Wuhan…the U.S. Dollar Index is up one-third of a point at 98.29Wall Street is reacting well this morning to a rousing State of the Union speech last night by President Trump, arguably the best speech (“The American Comeback”) of his young political career just as a new Gallup poll shows that his job approval rating is now at its highest level since he took office in 2017“Jobs are booming.  Incomes are soaring.  Poverty is plummeting.  The years of economic decay are over”, Trump stated…with a strong U.S. economy, a failed impeachment effort and a botched Iowa Caucus to kick off the 2020 election cycle, these aren’t promising times for Democrats, who have also tilted way too far to the left…House Speaker Nancy Pelosi’s frustration was clearly evident last night as she tore up her copy of Trump’s speech in front of the cameras as soon as the State of the Union address was over…it was a petty and classless move, and also very disrespectful to the country given how much of the speech focused on American exceptionalism and American heroes…Democrats have not been able to figure out how to effectively counter Trump…Wall Street knows it and that’s a major reason why equity markets will continue to track higher in 2020

2. The U.S. has become a jobs-producing machine – the jobs market kicked off 2020 in grand fashion, adding 291,000 in private payrolls for the best monthly gain since May 2015, according to a report this morning from ADP and Moody’s Analytics…that was well above the 150,000 estimate from economists surveyed by Dow Jones and more evidence that the U.S. still is a good distance from full employment even with the jobless rate at its lowest point in more than half a century…the total also was a sharp gain from the 199,000 in December…growth came across a swath of industries…

3. The Federal Court of Appeal yesterday dismissed the case filed by Tsleil-waututh First Nation, Squamish First Nation and Coldwater Indian Band, who argued that Canada’s federal government failed to properly consult on the Trans Mountain Pipeline Project which would pass through their territories…however, these 3 indigenous groups and aligned radical environmentalists – on the wrong side of history – reiterated they are committed to breaking the law in their attempts to block the project which a majority of British Columbians and Canadians support…“We always said we’d do what it takes to stop this pipeline,” said Rueben George, manager of the TWN Sacred Trust and a member of the Tsleil-Waututh First Nation, 1 of 3 First Nations that filed the legal challenge…“We will take steps to make sure that Canada stays the way it is,” he added at a news conference…meanwhile, Dustin Rivers, a spokesman for and elected member of the Squamish Nation Council, stated, “We are deeply disappointed with the decision today.  B.C. has a long history of civil disobedience”First Nations have 60 days to file an appeal…the Supreme Court should not even be willing to hear an appeal given the sharp wording of yesterday’s decision, which was rendered unanimously and ordered the indigenous groups to pay compensation to the defendants – the federal government, Canada Energy Regulator as well as Alberta and Saskatchewan…

4. Eric Sprott has beefed up his position in Ely Gold Royalties (ELY, TSX-V)…the company has cut a deal with Sprott to acquire his 0.5% NSR (the “Target Royalty”) on the Gold-producing Jerritt Canyon mine facility in Elko, Nevada, currently operated by a private Nevada limited liability company…Ely Gold already holds a per ton royalty interest on the Jerritt Canyon processing facilities that it acquired in a private transaction last year…in consideration for the Target Royalty, Ely Gold has agreed to pay $8 million CDN to Sprott, payable by issuance of 12,698,413 Ely Gold common shares at a deemed issue price of 63 cents per share…upon formal completion of the transaction, Sprott will hold approximately 16.2% of the outstanding Ely Gold shares on a non-diluted basis, and approximately 28.3% on a partially diluted basis….however, pursuant to a pre-existing agreement signed late last year, unless the TSXV accepts Sprott becoming a “Control Person” of the company, he has agreed not to exercise any portion of his warrants if, as a result of such exercise, his direct and indirect holdings would exceed 19.9% of the outstanding Ely Gold voting shares…the company plans to seek such an approval at its next AGM expected to be held on or before May 2020ELY holds a 2% NSR on Wallbridge Mining’s (WM, TSX) Fenelon deposit…

5. The Dow has climbed another 321 points through the first 30 minutes of trading…in Toronto, the TSX has added 143 points while the Venture has gained 2 points to 575, just above a strong band of support from 570 to 560…technically, the Venture is looking very healthy and it’s just a matter of time before a key breakout occurs above the critical mid-580’sWalker River (WRR, TSX-V) is this morning’s early volume leader after reporting very high-grade near-surface Gold intercepts from RC drilling at its Lapon Project in Nevada…highlights were 96 g/t Au over 13.7 m, 94.8 g/t over 6.1 m, and 364 g/t over 1.5 m (uncut values, 80% true width)…normally, numbers like that would send a stock through the roof, but a “management discount” has been applied here – weak management has been WRR’s Achilles heel for years…keep an eye on Chibougamau Independent Mines (CBG, TSX-V) over the coming weeks…the company is now commencing a new drill program at its C-3 Copper-Gold zone in northern Quebec…results last year included 7.7% Cu and 3.6 g/t Au over a core length of 9.2 m at a vertical depth of 450 m…drilling will test the down plunge of this zone…Ero Copper (ERO, TSX) is gathering steam after a 25% January slide, thanks to the hype around the coronavirus and plummeting Copper prices…this is not only a very profitable production story but one of the best exploration plays in the marketEro is super-aggressive at pursuing new discoveries on its large-scale holdings in Brazil while it also features strong operational execution and peer-leading organic production growth via its 99.6% interest in Mineração Caraíba S.A. (“MCSA”), a long-established Brazilian Copper mining company with over 40 years of operating history in the Curaçá Valley…ERO is up 55 cents at $19.51 as of 7:00 am Pacific

6. Merger and acquisition activity in the Gold sector rose in 2019 to the highest level since 2010, but a return to the widespread, costly deal-making of a decade ago is not likely given producers’ shift toward capital discipline, according to consultancy Metals Focus…further, roughly two-thirds of last year’s dollar volume was from just one deal – the Newmont Mining takeover of Goldcorp, the consultancy pointed out in a report yesterday…the value of M&A activity in the Gold sector increased to $18.2 billion in 2019, up 45% over 2018…this was still below the 2010 peak of $32.2 billion…without the $12.3 billion NewmontGoldcorp merger, M&A deals last year totaled $5.9 billion, down from $7.2 billion in 2018…the number of total deals rose slightly to 89 in 2019 from 86 the year before…

7. Of the millions of NFL fans that watched Sunday’s 54th Super Bowl, many were looking to cash in on the Big Game thanks to the rise in sports betting in the United States…Bank of America says sports betting could reach 50% of the U.S. population by 2022…while sports betting revenue was about $950 million in 2019, estimates for the booming industry’s future range from $6 billion to $20 billion…“We think the success, adoption and technology behind online and mobile sports could be a catalyst for wider iGaming penetration, a notable shift for an industry that has thus far not been widely impacted by the Internet,” Bank of America research analyst Shaun Kelley said in a note to clients on Friday…sports betting and online gaming have been some of the hottest topics in investor conversations, Kelley said…daily fantasy sports company and bookmaker DraftKings reached a deal to merge with Diamond Eagle Acquisition Group (DEAC, NASDAQ) in December, allowing the company to become public while forgoing the typical IPO process…last Wednesday, casino company Penn National Gaming (PENN, NASDAQ) soared 12% when it announced it’s taking a 36% stake in digital sports media company Barstool Sports for about $163 million in cash…the deal, which values Barstool around $450 million, is expected to close this quarter…“We view this partnership positively and expect that it will quickly transform PENN into one of the major players in sports betting,” said Kelley…PENN also has a stake in Score Media & Gaming (SCR, TSX-V) which has been one of the top-performing Venture stocks since early 2018

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