December 23, 2016
Alert: Venture & Gold Updates, Plus Kiska Buyout
Did TAG Oil’s New Engineering Team Already Hit The Jackpot?
December 22, 2016
7 @ 7:00
BMR Christmas schedule: Check back tomorrow for 7 @ 7:00 and again next week for Canadian trading Wednesday thru Friday. BMR Morning Musings is now on a Christmas break until next Wednesday, Dec. 28.
1. Gold, up $2 an ounce at $1,133 as of 7:00 am Pacific, briefly came under some slight additional pressure this morning after the Commerce Department reported that the U.S. economy grew faster than initially thought in the 3rd quarter, notching its best performance in 2 years amid solid consumer spending and, of course, a jump in soybean exports…GDP increased at a 3.5% annual rate instead of the previously reported 3.2% pace…growth was the strongest since the 3rd quarter of 2014 and followed the 2nd quarter’s anemic 1.4% pace…meanwhile, in a separate report, orders for durable goods fell by 4.6% in November…that snapped a string of 4 straight monthly increases but was in line with consensus forecasts…in other economic data just released, personal income was flat in November vs. an expected 0.3% increase…
2. Copper exports by the world’s 2nd-largest economy fell 15% year-over-year in November, Chinese customs data show…meanwhile, the International Copper Study Group says Chinese demand rose 7% year-over-year in the first 9 months of 2016, but noted that imports of refined Copper have been waning in recent months…monthly demand in the 3rd quarter was down 5% from the level seen in the 1st half of 2016…
3. The spread between Platinum and Palladium contracted sharply to its narrowest in nearly 15 years earlier this month at $141 an ounce as a result of Palladium’s out-performance…the autocatalyst metal has risen 17% this year, including 22% since a low of $540 in June, while Platinum has gained just 2%…the spread is currently $250, having averaged $465 over the last 30 years…
4. With 2016 quickly coming to a close, Silver is vying with Palladium as this year’s best asset in the precious metals space…the Silver market could continue to see strong gains in 2017 from a pick up in industrial demand as the U.S. and global economies improve, according to analysts at HSBC: “We believe Silver prices will be better bid later in 2017. We also base our expectations on solid fundamentals, as mine supply is likely to contract while industrial and jewelry demand should increase“…one particular sector in which HSBC analysts see potential is solar power, as costs decline and energy demand increases…
5. Canopy Growth (CGC, TSX) has closed its previously announced bought deal financing, raising $60 million through the issuance of 5.6 million shares at a price of $10.60 per share (no warrant)…the company intends to use the proceeds primarily for potential real estate acquisitions and fit-up of growing operations at such locations…in the event such potential acquisitions are not completed, a majority of the funds will be used to expand capacity at the company’s existing sites over the next 12 months…additionally, CGC expects to incur international development expenditures of approximately $2 million primarily to further explore and develop international market opportunities where federally legal to do so…CGC is up 14 cents at $9.03 as of 7:00 am Pacific…the stock has strong technical support around $8.50 in the immediate vicinity of a Fib. retracement level and the rising 50-day SMA…
6. G4G Capital (GGC, TSX-V), one of the top performing Gold juniors the last several months, has changed its name to White Gold Corp. to better reflect its strategic focus on exploration in the White Gold district of the Yukon…beginning tomorrow, the stock will trade under the new symbol “WGO“…as part of its rebranding, the company has also launched a new website (http://www.whitegoldcorp.com)…GGC is up slightly at $1.17 in early trading…
7. Another junior is being gobbled up by a major, a trend that is sure to continue in 2017…IAMGOLD (IMG, TSX), which already owns 23% of Merrex Gold (MXI, TSX-V), is acquiring the balance of MXI in an all-share transaction valued at 20 cents per share or approximately $41 million on a fully-diluted basis…Merrex’s principal asset is the Diakha-Siribaya Project in Mali in which Merrex and IAMGOLD each hold a 50% interest…meanwhile, Orex Exploration (OX, TSX-V), which has 100% ownership of the high-grade Goldboro Gold Project in Nova Scotia, essentially put itself on the block in a news release yesterday…the stock is unchanged at 4.5 cents as of 7:00 am Pacific…
BMR Christmas Posting Schedule…
Tomorrow…7 @ 7:00 plus updated Venture and Gold charts…7 @ 7 then returns next Wednesday, December 28, when Canadian markets re-open…
Christmas message on Saturday, December 24…
To give our staff a Christmas break, no Morning Musings today or tomorrow – resumes next Wednesday, December 28…
Check for separate postings prior to next Wednesday depending on market developments…comments section remains open throughout the Christmas holiday period…
December 21, 2016
BMR Morning Market Musings…
Gold has traded between $1,129 and $1,138 so far today…as of 11:15 am Pacific, bullion is down slightly at $1,131…Silver is off 16 cents at $15.91…Copper is unchanged at $2.50…Nickel is 4 cents lower at $4.89…Crude Oil has slipped 76 cents to $52.54 while the U.S. Dollar Index has retreated one-fifth of a point to 103.03…
Russia’s central bank remains a noted buyer of Gold, says Commerzbank, citing news of continued purchases last month. “After having already purchased considerable quantities in October – around 40 tonnes – the Russian central bank again bought large amounts of Gold – roughly 31 tonnes – in November,” Commerzbank says. “It is clearly taking advantage of the lower Gold price to do so, especially since the strong Russian ruble makes Gold even cheaper in local currency. In recent months, the Gold purchases of the Russian central bank have presumably put the brakes on the Gold price slide.”
Gold will need more than Russia, though, to help rescue it from its current downtrend…
From Europe comes word today that time is running out for the oldest bank in the world, and Italy’s 3rd-largest, after it warned that it would run out of cash at a faster pace than previously forecast, in just 4 months’ time as opposed to 11…Monte dei Paschi’s shares closed down 12% today…
Obama-Trudeau Climate Change Fanaticism On Display Again
A new congressional investigation has determined that the Obama administration fired a top scientist and intimidated staff at the Department of Energy in order to further its climate change agenda, according to a wide-ranging report released yesterday by Rep. Lamar Smith (R., Texas), chair of the House Committee on Science, Space, and Technology…the report also alleges the administration ordered top officials to obstruct Congress in order to forward this agenda…
Meanwhile, President Obama yesterday ordered U.S.-owned waters in the Arctic Ocean and certain areas in the Atlantic Ocean placed “indefinitely” off-limits for future Oil and gas leases in a final fossil-fuel crackdown before he leaves office…the move, intended to protect the area’s ecosystem, is a final push by Obama to seal his environmental “legacy”, and a possible way to bind the hands of his successor…the outgoing President got support, not surprisingly, from Canadian Prime Minister Justin Trudeau which further underscores how Canada and the incoming Trump administration will be at opposite ends of wide-ranging policy issues from energy and climate change to taxation, regulatory frameworks, trade and global affairs…
“Today, in partnership with our neighbors and allies in Canada, the United States is taking historic steps to build a strong Arctic economy, preserve a healthy Arctic ecosystem and protect our fragile Arctic waters, including designating the bulk of our Arctic water and certain areas in the Atlantic Ocean as indefinitely off limits to future Oil and gas leasing,” the White House said in a statement…
Oil Update
Crude Oil reversed lower this morning after the U.S. Energy Information Administration reported that commercial Crude Oil inventories rose by 2.3 million barrels in the last week vs. expectations that stockpiles would fall for a 5th consecutive week…the Crude build was offset in part by a drop in stockpiles at the Cushing, Oklahoma, delivery hub and declines in fuel stocks…
In Today’s Morning Musings…
1. This non-resource deal is starting to FLY…
2. What’s bellwether Richmont Mines (RIC, TSX) telling us about Gold and Gold stocks?…
3. Tinka Resources (TK, TSX-V) expands Zinc footprint to 10 km and prepares for major drill program…
4. Daniel’s Den…the biggest Gold rush in history that’s going unnoticed…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
7 @ 7:00
Check back later this morning for today’s Morning Musings.
1. Gold is trying to stabilize above important support at $1,130…bullion has traded between $1,132 and $1,138 so far today…as of 7:00 am Pacific, it’s up $2 an ounce at $1,334…
2. Gold is struggling, and is vulnerable to further declines, but Oil is on track for its best December performance in 6 years…even a 14-year high in the U.S. Dollar Index is not dampening bullish spirits in Crude…as of 7:00 am Pacific, WTI is up 16 cents at $53.46…the Dollar Index has backed off nearly half a point to just below 103 after approaching resistance near 104 yesterday…
3. Palladium remains the best performing precious metal this quarter with a drop of just 8% compared with a 14% drop in Gold prices and an 11% retreat in Platinum…Palladium is the “fundamental favorite” precious metal in 2017, according to Citi Research…the bank looks for Palladium prices to average $685 an ounce in the 4th quarter, rising throughout the course of next year to average $715 in 2017…
4. The Dow recorded its 26th record close of the year yesterday, and 17th since the election, as it came within just 13 points of the magic 20,000 level…as of 7:00 am Pacific, the Dow is down 19 points at 19,956…the TSX has climbed 27 points while the Venture is flat at 717 as it continues to test its November low…
5. Pioneering Technology (PTE, TSX-V) has hit a new multi-year high of $1.13 during the first 30 minutes of trading…the company has recorded 6 consecutive profitable quarters…meanwhile, Radient Technologies (RTI, TSX-V) remains one of the Venture’s volume and price leaders, up another 6 cents at 53 cents as of 7:00 am Pacific…
6. Lion One Metals (LIO, TSX-V) released more infill drill results this morning from its Tuvato Gold Project in Fiji…they included 4.05 m grading 12.3 g/t Au (hole #407) and 2.4 m @ 24 g/t Au (hole #410)…drilling will resume in January…dewatering is now complete to approximately a third of the underground development and will continue over the Christmas period…further work underground in the New Year will include diamond drilling from the decline, detailed sampling and mapping, and exploitation of the mineralized ore zones…
7. Americans’ confidence in the economy has surged to a new high…the first positive double-digit index score since the inception of Gallup Daily tracking in 2008 reflects a stark change in Americans’ confidence in the U.S. economy from the negative views they expressed in most weeks over the past 9 years…
December 20, 2016
BMR Morning Market Musings…
Gold has traded between $1,125 and $1,137 so far today…as of 11:00 am Pacific, bullion is down $6 an ounce at $1,132…Silver is now up 8 cents at $16.03 after approaching $15.50…Copper has recovered a penny to $2.50…Nickel is 4 cents higher at $4.94…Crude Oil has added 19 cents to $52.31 while the U.S. Dollar Index is off its highs of the day but still up one-tenth of a point at 103.25…
Holdings of the SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, are down more than 13% since the Trump election victory November 8…global Gold ETFs recorded their 27th consecutive trading day of outflows yesterday, equaling the record losing streak from the spring of 2013…
Gold is getting limited physical support from Asian buying…China is having some issues right now while the Indian government’s clampdown on the parallel economy in November (Modi’s war on cash) pushed Gold buying to around 10% of normal trade levels, according to analysts, during a seasonally strong period for demand…India’s fiscal budget – potentially announced as early as late January – will be the next critical event to watch given market fears of new Gold trade restrictions in that country…
Oil Update
Germany’s Commerzbank cited speculative financial investors as the major contributors to the current Oil price rally…net long positions in WTI rose by 32,200 in the week to December 13 to hit 274,800. “In view of the high optimism shown by financial investors – net long positions currently find themselves at their highest level since July 2014 – we see considerable correction potential if the promised production cuts are not implemented or are only partially implemented by the Oil producers,” Commerzbank said…
We highly doubt that OPEC will fall short of its proposed production cut given how the Saudis have shown a steadfast determination to push prices higher and even absorb a disproportionate share of the cuts if they have to…keep in mind that they were successful at driving prices down between late 2014 and early 2016…what the Saudis want, they usually get…
In Today’s Morning Musings…
1. Some shining lights on the Venture ahead of Christmas…
2. Enphase Energy (ENPH, NASDAQ) update…
3. Saskatchewan Potash play heats up…
4. Interesting clues in today’s drilling update from Precipitate Gold (PRG, TSX-V)…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
7 @ 7:00
Check back later this morning for today’s Morning Musings.
1. Gold continues to try to stabilize above important support at $1,130…bullion has traded between $1,132 and $1,138 so far today and is up $2 an ounce at $1,134 as of 7:00 am Pacific…
2. Gold is struggling but Oil is on track for its best December in 6 years as a new 14-year high for the U.S. Dollar Index has fallen to dampen bullish spirits…WTI is up 16 cents at $53.46 as of 7:00 am Pacific…the Dollar Index has backed off nearly half a point to 102.80 after approaching resistance at 104 yesterday…
3. Palladium remains the best performing precious metal this quarter with a drop of just 8% compared with a 14% drop in Gold prices and an 11% retreat in Platinum…Palladium is the “fundamental favorite” precious metal in 2017, according to Citi Research…the bank looks for Palladium prices to average $685 an ounce in the 4th quarter, rising throughout the course of next year to average $715 in 2017…
4. The Dow closed at its 26th record high of the year yesterday (the 17th since the election) as it came within just 13 points of the magic 20,000 level…it’s off 19 points at 19,956 as of 7:00 am Pacific…the Venture is flat at 717…
5. Pioneering Technology (PTE, TSX-V) has hit a new multi-year high of $1.13 during the first 30 minutes of trading today, pushing above resistance at $1.09…the company has recorded 6 consecutive quarters of profitability…Radient Technologies (RTI, TSX-V) remains one of the Venture’s volume leaders, up another 6 cents at 53 cents through the first 30 minutes of trading…
6. Lion One Metals (LIO, TSX-V) released additional infill drill results this morning from its Tuvato Gold Project in Fiji…they included 4.05 m grading 12.3 g/t Au (Hole #407) and 2.4 m @ 24 g/t Au (hole #410)…drilling resumes in January…dewatering is now complete to approximately a third of the underground development and will continue over the Christmas period….further underground work in the New Year will include diamond drilling from the decline, detailed sampling and mapping, and exploitation of the mineralized ore zones…
7. U.S. economic confidence has surged to a new high since the Trump election victory…a Gallup poll shows the first positive double-digit index score since the inception of Gallup Daily tracking in 2008 and reflects a stark change in Americans’ confidence in the U.S. economy from the negative views they expressed in most weeks over the past 9 years…
December 19, 2016
BMR Morning Market Musings…
Gold has traded between $1,136 and $1,143 so far today…as of 11:15 am Pacific, bullion is up $3 an ounce at $1,138…Silver is down 13 cents at $15.94…Copper has retreated 6 cents to $2.49…Nickel is 14 cents lower at $4.90…Crude Oil is up 17 cents to $52.17 while the U.S. Dollar Index has added one-fifth of a point to 103.03…
The Gold market continues to see persistent selling pressure as hedge funds and money managers shed long positions and increase their short bets ahead of the New Year, according to the latest data from the Commodity Futures Trading Commission…however, the market still isn’t negative enough to signal a bottom…
BMO Capital Markets has trimmed price targets for Gold, Silver and equities in the sector for 2017, although analysts still describe themselves as generally “constructive” on shares of mining companies. “On one hand, the downgrade of our Gold and Silver outlook for 2017 is a clear message to investors that we believe a key element of an investment thesis of the precious metal sector is likely to be absent through most of 2017. Given strong sector fundamentals, valuations for the Gold and Silver companies under coverage remain reasonable, in our view, even accounting for our more conservative outlook for Gold and Silver prices in 2017.”
The Chinese Academy of Social Sciences (CASS) today forecast that China’s economic growth will slow again next year to 6.5%, which would be the weakest pace in more than 25 years, down from expected growth of around 6.7% this year…
Trump’s Pick For Budget Director Could Be Dollar Bullish
In an appointment that raises eyebrows among those who expect an explosion in U.S. debt under Donald Trump, Republican Rep. Mick Mulvaney was chosen Friday by the President-elect to be his new budget director…Mulvaney is a fierce deficit hawk with a record of pushing deep spending cuts across the federal government to balance the budget…the 49-year-old from South Carolina rode the Tea Party wave in 2010 and was just re-elected to a 4th term…he’s a co-founder of the House Freedom Caucus that pushed former Speaker John Boehner from power…as director of the White House Office of Management and Budget, Mulvaney would be responsible for Trump’s budget submissions to Congress…those budgets are likely to address campaign promises to repeal Obamacare, cut taxes broadly, and boost military and infrastructure spending…
The extent of U.S. annual budget deficits over the next couple of years will be one of the keys to Gold’s direction.
Actually balancing the federal budget will require deeper spending cuts than the GOP-controlled Congress can probably deliver on, especially if Trump prevails on revenue-losing tax cuts and a big infrastructure package next year…
Trump: “Right now we are nearly $20 trillion in debt, but Mick is a very high-energy leader with deep convictions for how to responsibly manage our nation’s finances and save our country from drowning in red ink. With Mick at the head of OMB, my administration is going to make smart choices about America’s budget, bring new accountability to our federal government, and renew the American taxpayer’s trust in how their money is spent.”
Untangling the knots around the U.S. economy caused by 8 years of over-regulation and over-taxation by Obama may take the Trump administration more time to fix than most investors currently expect, so any disappointment on the growth front coupled with rising interest costs and fractious negotiations on the debt ceiling could produce a bullish environment for Gold before the end of Q1…
In Today’s Morning Musings…
1. Energy-related plays that investors can profit from in the days and weeks ahead…
2. Three non-resource (and non-marijuana) stocks that are significantly outperforming the Venture…
3. Updated Silver charts – 16 isn’t so sweet…
4. Daniel’s Den…where is Ma Yellen leading us to?…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
-
-
-
-
Press "Reload" for fresh quote