July 31, 2016
The Week In Review And A Look Ahead
TSX Venture Exchange and Gold
The Dow and TSX both retreated last week but the Venture continued its relentless push to reclaim the 1000 level as the Index climbed 26 more points or 3.4% to finish at 796, meaning another Fib. level has “fallen”. While Oil was under continued pressure, Gold and Silver both took off to the upside following the Fed’s statement Wednesday and an anemic U.S. Q2 GDP number Friday (1.2%) that was less than half what the so-called experts were calling for.
Gold has been saying for the last 6+ months that the State of the Union, on multiple fronts, is not healthy – how voters deal with that in November will be critical. In the meantime, astute investors in the junior resource market/mining sector can still make fortunes on top of the profits they have already bagged during the last several months.
We’ll show you why and how in today’s Week In Review And A Look Ahead…
Click here to read the rest of today’s Week In Review And A Look Ahead, and all BMR exclusive content, by taking advantage of our SPECIAL that ENDS in 48 hours – Tuesday at 9:00 pm Pacific is the final cut-off to save 25% – or login with your username and password.
July 29, 2016
BMR Morning Market Musings…
Gold has traded between $1,329 and $1,349 so far today…as of 7:30 am Pacific, bullion is up $11 an ounce at $1,345 thanks to a big miss in U.S. Q2 GDP…Silver has added a nickel to $20.17…Copper is flat at $2.21…Crude Oil is down 38 cents at $40.76 while the U.S. Dollar Index has plunged nearly a full point to 95.71…the greenback avalanche may have just started…
The strength in Gold, despite a Fed statement Wednesday that claimed risks to the U.S. economy have diminished (really???), suggests underlying strength in the precious metal, according to HSBC…the Fed statement essentially set the tone should policymakers want to hike rates yet this year, HSBC stated (of course the Fed in our view will be in no position to hike rates). “Normally this would be expected to weigh on Gold, but it clearly did not…we think Gold is gaining upward momentum after holding well above $1,300/oz in the face of a firm U.S. dollar.”
Obama’s Disastrous Economy – U.S. Q2 GDP Comes In Well Below Expectations
The U.S. economy grew far less than expected in the 2nd quarter as inventories fell for the first time since 2011…GDP increased at only 1.2% after rising by a downwardly revised 0.8% pace in the 1st quarter, the Commerce Department reported this morning (the economy was previously reported to have grown by 1.1% in Q1)…
Economists polled by Reuters had forecast Q2 GDP growth rising at a 2.6% rate, so the liberal narrative of an improving economy just doesn’t jive with the facts…
Euro Zone Q2 Growth Falls In Half, UK Sentiment Plummets
The pace of euro zone economic growth halved, as expected, in the 2nd quarter, with earlier news from France painting a bleaker-than-forecast picture of the region’s 2nd-largest economy…the first estimate from the European Union’s statistics agency put euro zone GDP growth at an anemic 0.3%, down from 0.6% in the previous quarter…on-the-year growth slowed to 1.6% from 1.7%…
With euro zone banks firmly in the spotlight these days, the head of one of Britain’s largest banks told CNBC that the sector is indeed in a difficult position. “The European banking sector is challenged,” Barclays‘ CEO Jes Staley told CNBC this morning. “If you look at the top 12 banks across Europe, on average they’re trading at a 50% discount to book value – that’s not healthy for the financial system and that’s not healthy for the European economy.”
Meanwhile, sentiment among British households fell this month as its fastest pace in more than a quarter century, reflecting uncertainty about the outlook for the economy in the wake of the Brexit vote…
The 11-point drop in GfK’s monthly gauge was the most since March 1990 when house prices were falling, interest rates stood at 15% and thousands were protesting in London against Prime Minister Thatcher’s poll tax…GfK said households have become more pessimistic about their personal finances and the economy since the U.K.’s decision to leave the European Union…
Japan’s Central Bank Provides Further Stimulus
The Bank of Japan expanded monetary policy stimulus today through a modest increase in purchases of exchange-traded funds, yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2% target…by coordinating its action with the government’s big fiscal spending package (28 trillion yen as announced Wednesday), the BOJ likely aimed to maximize the effect of its measures on the world’s 3rd-largest economy which is struggling to escape decades of deflation…in an unexpected move, the bank said it will conduct a “comprehensive assessment” at the next meeting (September 20-21) of the effectiveness of the policies taken since Governor Haruhiko Kuroda took charge in 2013…the review won’t affect the inflation target which remains 2%…
Heart of Gold Camp
Colorado Resources (CXO, TSX-V) is showing continued strength this morning, and quite a bit of buzz is surrounding the company at the Sprott Symposium in Vancouver…
We have an update on CXO and another Heart of Gold Camp opportunity in today’s Morning Musings, and much more next week…
BMR Photo (from lower adit at Colorado Resources’ Inel zone).
In Today’s Morning Musings…
1. Platinum chart – whoa!…
2. Drill pads in place at Khyber zone as Colorado Resources‘ (CXO, TSX-V) relentless drill campaign at KSP marches forward…
3. Hidden treasures discovered – how unopened boxes of valuable historical drill data become hugely significant 20 years later, and how you can profit from this…
4. Lithium X Energy (LIX, TSX-V) update…
5. Daniel’s Den – recommendations from McEwen, Quartermain, Friedland, Beaty, and Smallwood at Sprott Symposium…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
July 28, 2016
BMR Morning Market Musings…
Gold has traded between $1,336 and $1,346 so far today…as of 10:30 am Pacific, bullion is down $6 an ounce at $1,334…Silver is off 17 cents at $20.15…Copper is up a penny at $2.20…Crude Oil is 78 cents lower at $41.14 while the U.S. Dollar Index is steady at 96.67…
Gold shrugged off a fresh statement from the Fed yesterday that the near-term risks to the U.S. economic outlook had diminished (potentially, in the view of the Fed, leading to a resumption of monetary policy tightening this year though we all know they won’t have the courage to increase rates anytime before December if at all in 2016)…bullion strengthened after the Fed’s statement and closed up $20 an ounce, hitting a 2-week high…the top of a very strong support band between $1,290 and $1,320 has held this month, setting the stage for a push to $1,400 or better this quarter as we’ll show in an updated chart this morning…
Holdings of the world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, have seen an outflow of nearly 28 tonnes in the last 3 weeks but that’s after a big run-up…
Palladium has soared 18% so far in July, its best monthly performance in a nearly 8-and-a-half years, as it catches up on gains made by other precious metals in the wake of the Brexit vote and benefits from greater demand for cyclical assets…Platinum, meanwhile, hit a fresh 14-month high as it gained 1.7% yesterday to close at $1,152 an ounce…
Agnico Eagle Lowers Cost Guidance, Hikes Production, Increases Dividend – Hat Trick!
The biggest Gold producers reported 2nd quarter results last night…and while the numbers were mixed according to to analysts’ expectations, a key theme was stronger cash flow and improving margins…Barrick Gold (ABX, TSX), the world’s biggest Gold miner, had adjusted earnings of $158 million (U.S.) and a whopping $274 million (U.S.) of free cash flow…the company also slashed its all-in-sustaining cost guidance for 2016 (for the second time) to between $750 and $790 (U.S.) an ounce…Kinross Gold (K, TSX) and Agnico Eagle Mines (AEM, TSX-V) also reported major improvements in cash flow generation, and Agnico also lowered its cost guidance, hiked its production guidance and even raised its dividend 25%…AEM is bucking the trend among producers today, up $1.72 to $73.91 (a 6-year high) as of 10:30 am Pacific…
The one negative exception was Goldcorp (G, TSX) which had significantly lower year-over-year Gold production due to several factors, including a rapid workforce reduction at the Cerro Negro mine in Argentina…Goldcorp’s adjusted operating cash flow declined 41% to $307 million (U.S.)…Goldcorp listed a net loss of $78 million (U.S.) or 9 cents per share, compared to net earnings of $392 million, or 47 cents, in the year-ago period (net earnings in 2015 included non-recurring after-tax gains on the sale of non-core assets of $358 million, or 43 cents per share)…Gold production from April through June was 613,400 ounces at all-in sustaining costs of $1,067 per ounce, compared to 908,000 ounces at AISC of $853 per ounce a year ago, the company said…still, Goldcorp is maintaining 2016 guidance for Gold production of between 2.8 million and 3.1 million ounces at AISC of between $850 and $925 per ounce…
Oil Update – The Loony Left’s Damage To Canada
Canada desperately needs to get more economic value out of its energy resources, but that’s not going to happen with the Loony Left controlling Ottawa and some of the provinces while climate change fanaticism continues to run rampant across this country and down south…numerous radical American groups continue to target Canadian projects including Energy East…the uptick in Oil prices this year notwithstanding, it’s critical to note that Canada’s Oil exports continue to sell at a steep discount to the world price – about 30% less per barrel – because a lack of export pipelines has us almost entirely dependent on the U.S. market which also doesn’t need us quite as much as it used to…no infrastructure project in this country is more important at the moment than Energy East, but what are the chances of it ever getting built with zero political leadership?…what a sad state of affairs in this country…
In Today’s Morning Musings…
1. 784 (Fib.) – what’s the Venture’s next immediate move?…
2. Columbus Gold (CGT, TSX) creates more “blue sky” at Montagne d’Or deposit in French Guiana…
3. How the Law of Supply & Demand could cause this stock to soar…
4. Update on the DR’s Dynamic Duo…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
ALSO…click here for a free BMR eAlert on a 9-cent junior ($2.3 million market cap) that’s set to SOAR on higher Silver prices.
July 27, 2016
First Video Footage From CXO’s Inel Zone At KSP
Exclusive BMR video coverage from KSP Property
As BMR readers know, we had the good fortune late last week to carry out valuable additional due diligence of the prolific Heart of Gold Camp through a KSP site visit organized by Colorado Resources (CXO, TSX-V).
One can study maps and technical reports all day and conduct countless interviews over the phone, but there’s nothing like “boots-on-the-ground” to provide critical perspective and confirm or reject certain research of a particular property and/or an entire district.
On Sunday night, following the visit, we issued an eAlert to reassure subscribers that Colorado was very much on track at KSP after uninformed investors, or those simply anxious to lock in some early profits, knocked 25% off the stock price last week in a typical knee-jerk “sell on news” event following the release of very encouraging initial assay results.
Colorado’s Chief Geoscientist, Dr. Jim Oliver, Ph.D., P.Geo.
While there was no “glory hole” right off the bat, each of the first 8 holes did cut high-grade intercepts – some of them in semi-massive and massive sulphides – at shallow depths of less than 150 m. It was a very good start, and our take is that Colorado has just scratched the surface with the best yet to come.
Given an exceptionally high level of technical expertise that’s being applied to KSP, a 300 sq. km project in a rich geological environment west of Eskay Creek, Seabridge’s KSM and Pretium’s incredible Valley of the Kings, it’s reasonable to assume that drill results are going to get even better as this program progresses. Knowledge of the Inel target, and the broader package at KSP, has been increasing significantly by the day ever since drilling commenced last month.
CXO reported the drilling of 37 holes (5,000 m) through July 18 which means they’re on pace to earn a majority interest in this project from Seabridge earlier than expected (this year).
To drill 160 m per day with 1 rig at Inel (the Heart of Gold Camp is challenging country) is a powerful testament to CXO’s level of technical prowess and the highly organized nature of this program – add in very good initial results, an abundance of high quality targets, and you’ve got great potential for tremendous success on the ground and in the market during this 2nd half of 2016.
As you’ll see in tonight’s video piece (footage is from the Inel zone at an elevation of about 1700 m), the first 3 dozen holes have significantly expanded the size of the Inel mineralized system. In addition, drilling on well-defined cross sectional planes is beginning to suggest that mineralized zones have much stronger continuity than historically appreciated. Furthermore, there do appear to be important linkages between the Inel Zone and the Khyber zone to the south.
It all adds up to a very exciting summer at KSP – and the broader Heart of Gold Camp.
Click here to view this video, and all BMR exclusive content, by taking advantage of our July Subscription Special, or login with your username and password.
BMR Morning Market Musings…
Gold has traded between $1,317 and $1,330 so far today ahead of a fresh statement from the Fed…as of 8:00 am Pacific, bullion is up $6 an ounce at $1,326…Silver has jumped 36 cents to $19.96…Copper has slipped 4 pennies to $2.19…Crude Oil is down 85 cents a barrel to $42.07 while the U.S. Dollar Index has added one-fifth of a point to 97.33…
The Fed is almost sure to keep interest rates unchanged today, but as always the market will be focusing on the central bank’s language and hints of future action – knowing full well, of course, that whatever the Fed says today must be viewed skeptically given its track record under Janet Yellen…the Fed seems certain of only one thing – its uncertainty…
Holdings in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell almost half a percent to 954.24 tonnes yesterday…
GFMS Thomson Reuters released its 2nd quarter Gold Survey and Outlook report yesterday, upgrading its average Gold price for 2016 to $1,279 an ounce, up from the previous forecast of $1,184 an ounce (watch for another hike by early Q4)…the report noted how Gold prices are being driven by renewed western investment demand, particularly through Gold-backed exchange-traded funds…ETF demand in the 1st half of the year set a record with global Gold reserves increasing by 568 tonnes…
“The revision is a mark to market of the impressive gains that Gold has posted so far this year, and reflecting the changed sentiment stemming from increased uncertainty from economic and political outlooks,” the analysts said in the report…
China’s Gold Production Flattening?
A report suggests that China’s Gold production may have hit a plateau, which presumably would mean more future imports by the country which would be Gold supportive, according to HSBC…analysts cite an article in the Shanghai Securities News quoting the China Gold Association as saying that production in the country may be flattening…the association reported domestic Gold production at 229.1 tonnes in the first half of this year, up just 0.2% from the same period a year earlier…
Tone Deaf On Terrorism
If you pretend a problem doesn’t exist, maybe it’ll just go away!…a PolitiFact analysis has confirmed that none of the speakers at the Democratic National Convention on Monday’s opening day uttered the words “ISIS”, “Islamic”, “terror”, “terrorist”, or “terrorism”…that stands in stark contrast, of course, to the first day of the Republican National Convention that focused very much on issues of national security and radical Islamic terrorism…
Abe Doubles Down
Like an investor doubling down on a stock that’s dropped in half, Japanese Prime Minister Shinzo Abe is reportedly set to unveil a massive stimulus package of about 28 trillion yen ($265 billion U.S.) in an effort to prop up Japan’s struggling economy (“helicopter” money, loan programs, subsidies, etc.) as if all the earlier “stimulus” just wasn’t enough…if 28 trillion yen proves to be the final number, it far exceeds initial estimates of around 20 trillion yen…the Japanese currency weakened in the wake of the reports, and that lit another fire under the stock market…meanwhile, Japan’s central bank begins a 2-day policy session tomorrow…local business daily Nikkei reported that BOJ officials were looking at multiple stimulus proposals including cutting interest rates beyond the current level of negative 0.1%, buying more Japanese bonds on top of the current 80 trillion yen annually, or expanding purchases of other assets such as exchange-traded-funds…none of this has a good “feel” to it…Japan is obviously in trouble and Abe isn’t going to fix the problem…buy Gold…
Tesla Motors Inc. (TSLA, NASDAQ) Update
Tesla’s (TSLA, NASDAQ) upcoming Model 3 car could generate $20 billion in revenue per year and an annual gross profit of about $5 billion, Chief Executive Elon Musk told reporters at a news conference yesterday at the company’s “gigafactory” facility in the Nevada desert…Musk also said that the company’s stationary battery packs, named the Powerwall and Powerpack – designed to store power for homes and commercial buildings, respectively – would be “as big as the car business, long-term…the growth in stationary storage is really under-appreciated. That is a super-exponential growth rate.”
The Tesla facility still under construction in Nevada.
Tesla’s massive manufacturing facility, located outside Sparks, Nevada, will total around 10 million sq. feet when completed…about 1.9 million sq. feet have been finished so far…Musk said the full-sized gigafactory would ultimately be able to produce enough batteries to support up to 1.5 million cars – about 3 times the number of cars he originally expected the factory to support when running at full capacity…
Tesla will release its 2nd quarter results a week from today (August 3)…the company said earlier this month that its deliveries for the quarter fell short of its forecasts…analysts will be looking for signs that the company is containing its costs and slowing its cash burn…
In Today’s Morning Musings…
1. New addition to the BMR Top Opportunities List…
2. Deveron UAS (DVR, CSE) has friends in high places…
3. The continued bullish prospects for the TSX Gold Index…
4. Daniel’s Den – initial observations from Sprott Symposium in Vancouver…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
ALSO…click here for a free BMR eAlert on a 9-cent junior ($2.3 million market cap) that’s set to SOAR on higher Silver prices.
