November 17, 2017
7 @ 7:00
Check back later today for Daniel’s Den and visit the BMR comment section throughout the day for updates and helpful information.
1. Gold has traded between $1,281 and $1,288 so far today…as of 7:00 am Pacific, the yellow metal is up $7 an ounce at $1,285 as it closes in on a 2nd straight weekly gain…Silver is steady at $17.04…Copper is flat at $3.04 while Nickel is up 9 cents at $5.19…Crude Oil has jumped 77 cents to $55.91 while the U.S. Dollar Index is off one-tenth of a point at 93.77…traders still see a nearly 100% chance the Federal Reserve will raise rates at its December 13 meeting, according to CME Group’s FedWatch…it would be the Fed’s 3rd rate increase this year…
2. The U.S. Senate Finance Committee voted late yesterday in favor of the House GOP tax bill, paving the way for the first major legislative victory for the Trump administration…the panel’s 14–12 vote means the bill will likely reach the Senate floor sometime after Thanksgiving…earlier yesterday, the House passed its bill in a 227–205 vote…the Republican tax bill will place a higher burden on those who earn more than $1 million a year but provide a break to everyone else, Treasury Secretary Steven Mnuchin said today…a key feature of the most extensive U.S. tax reform since the Reagan era will be a big drop in the corporate tax rate from 35% to 20%…deep across-the-board tax cuts could at least temporarily drive up the U.S. deficit and debt, lending support to Gold prices…
3. The global Silver market will be in a small supply surplus in 2017 after previously posting a deficit for 4 years in a row, according to the GFMS/Silver Institute interim market review…total Silver supply is forecast to be roughly flat in 2017 at 1 billion ounces, as slightly higher scrap supply and a drop in net de-hedging are expected to offset lower mine production, the report said…global mine output is on pace to reach 869.7 million ounces this year, which would be a year-on-year drop of 2%…this reflects lower production in the first half of the year, with steep declines in Chile and Australia, GFMS said…still, 2017 global production is forecast to be just 3% below the 2015 record…
4. Oil prices are pushing higher today but face the possibility of their first week of losses out of 6, weighed down by apparent Russian hesitation for extending a global pact to cut output and curb oversupply…OPEC, Russia and several other producers have restricted their Oil output since January to prop up prices…the deal expires in March, though many expect it to be extended at the November 30th OPEC meeting. “Russian support for a formalized extension of production cuts at the OPEC meeting appears questionable, even if only to defer the decision to Q1 2018,“ U.S. investment bank Jefferies said…Saudi Arabia has signaled a strong willingness to extend the curbs, which are due to expire in March 2018, with energy minister Khalid al-Falih saying yesterday than an extension is required to continue to reduce the global surplus as “we’re not going to be at the level we want to be which is the 5-year average”…
5. Canada, the climate change crusader, and the U.K. will lead a coalition of 20 countries planning to phase out the use of Coal-fired power by 2030, though a handful of the countries in the group don’t even burn any Coal. “I’m thrilled to see so much global momentum for the transition to clean energy and the move away from Coal power – and this is only the beginning,” boasted Environment and Climate Change Minister Catherine McKenna…she neglected to mention that Coal consumption from the group of 20 comprises just over 2% of total Coal consumed around the world, according to data gleaned from BP Plc. and World Bank…none of the world’s largest Coal-burning countries are members of the coalition…Canada is the world’s 12th-largest Coal producer at 31 million tonnes Oil equivalent but that’s 50 times less than China, the leader, which is followed by the United States, Australia, India and Indonesia…
6. The Dow has dipped 70 points after 30 minutes of trading…Tesla (TSLA, NASDAQ) is pushing higher after J.B. Hunt Transport Services announced this morning that it has reserved “multiple” of the new electric semis just unveiled by Elon Musk the night before. “We believe electric trucks will be most beneficial on local and dray routes, and we look forward to utilizing this new, sustainable technology,” stated John Roberts, President and CEO at J.B. Hunt…in Toronto, the TSX is up 39 points as of 7:00 am Pacific…weaker energy prices pulled Canada’s annual inflation rate lower in October, further distancing it from the Bank of Canada’s target and giving the central bank room to wait until next year to raise interest rates again…Canada’s annual inflation rate fell to 1.4% last month from 1.6% in September…Garibaldi Resources (GGI, TSX-V) was halted pre-market, pending news, likely an exploration update with assays from Nickel Mountain…Datametrex AI (DM, TSX-V) is once again one of the Venture volume leaders in early trading after touching a new intra-day high yesterday of 26 cents…shareholders have approved the merger between Alamos Gold (AGI, TSX) and Richmont Mines (RIC, TSX) with the transaction expected to close on November 23, subject to regulatory approvals…Cannabix Technologies (BLO, CSE), which surged as high as $2.47 earlier this week, has entered into a $3.45 million bought deal with Cormark Securities at $1.15 per unit…
7. Wolfden Resources’ (WLF, TSX-V) Pickett Mountain Property deal has received the blessing of the Venture in a bulletin released this morning…Wolfden has acquired a 100% interest in the property in northern Maine for a cash purchase price of $8.5 million (U.S.)…Pickett Mountain comprises 6,871 acres of timberland and all minerals, mining, subsurface and surface rights owned by the seller, and includes the Pickett Mountain base metal deposit which is known to be one of the highest-grade undeveloped VMS deposits in North America (historical drilling includes 18.7% Zn, 10.3% Pb, 1.6% Cu & 6.7 oz/t Ag over true width of 7.7 m)…the deposit was discovered by Getty Mines in 1979 using a combination of soil surveys, ground surveys and diamond drilling but has not been explored since 1989 due to stringent mining regulations in Maine that have just recently been relaxed by the state legislature…Wolfden plans to begin drilling in the near future with a mineral resource estimate planned for 2018…
The Template For The Next 10% Move In Garibaldi Resources
The Nickel Mountain Magma Highway
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
November 16, 2017
7 @ 7:00
Check back later in the day for an additional post and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,275 and $1,282 so far today…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,281 as it pushes for a 2nd straight weekly gain…Silver has jumped 11 cents to $17.06…Copper and Nickel are flat at $3.04 and $5.23, respectively…Copper and Zinc output in China in October jumped to their highest levels in almost 3 years…Copper production was up 6.3% year-on-year at 781,000 tonnes while Zinc production rose 3.8% to 577,000 tonnes…Crude Oil is 40 cents lower at $54.93 while the U.S. Dollar Index is up slightly at 93.86…traders see a 96.7% chance the Federal Reserve will raise rates at its December 13 meeting, according to CME Group’s FedWatch…it would be the Fed’s 3rd rate increase this year…
2. Norway’s trillion-dollar sovereign wealth fund, the world’s largest, is proposing to drop Oil and gas companies from its benchmark index, which would mean cutting its investments in those companies, according to a Reuters‘ report this morning which quoted the deputy central bank chief supervising the fund…if accepted by the finance ministry and adopted by parliament, the fund would (over time) divest billions of dollars from Oil and gas stocks, which now represent 6% – or around $37 billion – of the fund’s benchmark equity index…it aims to reduce the exposure of the fund – and therefore the Norwegian government – to Oil price fluctuations, though that seems odd…
3. North American markets are rebounding this morning with the Dow up 133 points through the first 30 minutes of trading…Wal-Mart (WMT, NYSE) posted its strongest quarterly U.S. sales since 2009, boosted by a big jump in e-commerce and post-hurricane demand…Tesla (TSLA, NASDAQ) CEO Elon Musk has promised to unveil an electric semi truck today that will drive like a sports car and beat its diesel counterpart in a tug of war. “This will blow your mind clear out of your skull and into an alternate dimension,” he wrote on Twitter this week…in Toronto, the TSX is up 35 points while the Venture has added 1 point to 793…Nano One Materials (NNO, TSX-V) announced this morning that it has successfully piloted Nickel rich cathode materials for high-density energy storage applications such as next-generation Lithium-ion batteries for electric vehicles. “These pilot tests were conducted at approximately 100 times normal lab scale,” explained CEO Dan Blondal, “and the results provide added confidence that these Nickel rich materials can be manufactured at commercial scale”…
4. Calyx Bio-Ventures (CYX, TSX-V) has firmed up in early trading after announcing that it has acquired Canada Blockchain Hosting Corp. which features a unique computing infrastructure that is well suited to support next generation blockchain based applications including cryptocurrency technologies…the acquisition, for $400,000, will allow CYX to set the stage for advanced mining activities and other crypto opportunities such as blockchain based remittance, inventory control, logistics, provenance tracking, and data accountability. “This is a significant step in the execution of the company’s strategic plan originally announced on October 16, 2017, to integrate next generation blockchain features and services into its commercial platforms,” commented Roger Forde, President and CEO of Calyx…
5. Aurora Cannabis (ACB, TSX), which made an all-share bid for CanniMed Therapeutics (CMED, TSX) earlier this week, has entered into an agreement with Canaccord Genuity to raise up to $100 million for Aurora through the sale of special warrants. “The size and favorable terms of this offering are a recognition of our powerful growth and industry-leading execution, and reflect Aurora’s maturity, discipline and dominant position within the global cannabis sector,” stated CEO Terry Booth. “Upon closing of this offering, and with the anticipated gross proceeds on conversion of our recently accelerated warrants, Aurora’s pro-forma cash position will exceed an unprecedented $340 million. We will deploy that capital carefully but strategically to further accelerate our domestic and international expansion plans, and to seize additional opportunities to differentiate Aurora from other producers.”
6. Bonterra Resources (BTR, TSX-V) has hit a new multi-year high after reporting this morning that drilling has identified a 5th new parallel Gold zone at its Gladiator Gold deposit in northern Quebec…the new Barbeau zone, south of the South zone, has been intersected by 6 drill holes up to 800 m below surface including most recently BA-17–40A (22.2 g/t Au over 1.9 m) as Gladiator continues to show strong continuity at depth…to date, mineralization is now confirmed over a total drilled strike length on at least 2 horizons (Main and Footwall) of 1,200 m, as well as a drilled depth of 1,200 m…the company is aggressively completing its 2017 resource development program with 4 diamond drill rigs finishing a 50,000 m program…in addition, multiple holes are in the lab with assays pending, and Bonterra expects to expand to 6 drill rigs during the upcoming 2018 winter season…
7. Wolfden Resources (WLF, TSX-V) has completed its previously announced acquisition of a 100% interest in the Pickett Mountain Property in northern Maine for a cash purchase price of $8.5 million (U.S.)…the property comprises 6,871 acres of timberland and all minerals, mining, subsurface and surface rights owned by the seller, and includes the Pickett Mountain base metal deposit which is known to be one of the highest-grade undeveloped VMS deposits in North America (historical drilling includes 18.7% Zn, 10.3% Pb, 1.6% Cu & 6.7 oz/t Ag over true width of 7.7 m)…Pickett Mountain was discovered by Getty Mines in 1979 using a combination of soil surveys, ground surveys and diamond drilling but has not been explored since 1989 due to stringent mining regulations in Maine that have just recently been relaxed by the state legislature…the deposit has been traced over a strike length of close to 900 m and appears to be open at depth…Wolfden plans to begin drilling in the near future with a mineral resource estimate planned for 2018…preliminary metallurgical test work completed on drill core produced 3 flotation concentrates with resulting recoveries of 80% for Copper, 78% for Lead and 88% for Zinc, considered to be excellent recoveries compared to most massive sulphide deposits situated in the North American Appalachians…multiple untested Cu-Pb-Zn soil anomalies situated along strike from the known deposit, and distal to the deposit, auger well for the potential to find additional similar mineralization elsewhere on the land tract…to fund the acquisition, Wolfden granted a 1.35% gross sales royalty on the Pickett Mountain Project to a subsidiary of Altius Minerals Corporation and completed a non-brokered private placement 20,200,000 subscription receipts at a price of 25 cents per receipt for gross proceeds of $5,050,000 (Altius subscribing for 70% of that)…
The Template For The Next 10% Move In Garibaldi Resources
The Nickel Mountain Magma Highway
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
November 15, 2017
7 @ 7:00
Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,280 and $1,290 so far today…as of 7:00 am Pacific, the yellow metal is up $3 an ounce at $1,283…hedge fund manager John Paulson maintained his holdings in SPDR Gold Shares during the 3rd quarter, filings show…meanwhile, Soros Fund Management LLC remained out of Gold for the 4th straight quarter after exiting from its shares of Barrick Gold late last year…Silver is flat at $16.99…Copper is off slightly at $3.04 while Nickel is down 9 cents at $5.20…Crude Oil has retreated to the $55 level while the U.S. Dollar Index has lost one-fifth of a point to 93.66…
2. Silver will be the precious metal to watch next year, according to commodity analysts at TD Securities…in its 2018 Global Outlook, the Canadian bank says its trade recommendation for next year is to go long Silver with a price target at $20 an ounce, which is more than a 17% gain from current prices (moves in quality Silver stocks should be much greater)…the analysts are also bullish on Gold in 2018 but they see more potential with the grey metal due to Silver’s higher volatility. “Underperforming Silver is set to shine as Gold improves amid still low real rates, firm demand, weak supply and higher [volatility],” they said…
3. Oil prices slipped again today on the back of bearish data showing a rise in U.S. Crude supplies and, according to the International Energy Agency (IEA), a weaker global demand outlook…late yesterday, the American Petroleum Institute released data showing a 6.5 million barrel increase in U.S. Crude stockpiles and a buildup of refined products like gasoline for the week ended November 10…data just released by the U.S. government showed a much smaller increase in Crude stockpiles (1.9 million barrels)…also yesterday, the Paris-based IEA cut its global Oil demand forecast for this year and next by 100,000 barrels a day…the IEA now expects demand to grow by 1.5 million barrels a day this year and 1.3 million barrels a day next year…however, the IEA’s findings stand in contrast to that of OPEC which earlier this week raised its Oil demand forecasts for 2017 and 2018, saying the market was becoming increasingly rebalanced and stable…the Saudis are determined to push Oil prices higher and fighting them can be like fighting the Fed…
4. U.S. retail sales unexpectedly rose in October as an increase in purchases of motor vehicles and a range of other goods offset a decline in demand for building materials, suggesting consumer spending remained fairly strong early in the 4th quarter…another great sign for the resurgent U.S. economy…the Commerce Department said retail sales increased 0.2% last month…data for September, meanwhile, was revised to show sales jumping 1.9% rather than the previously reported 1.6% advance…retail sales are up a healthy 4.6% on an annual basis…
5. U.S. stocks opened sharply lower this morning with the Dow off 159 points through the first 30 minutes of trading…further weakness in Oil prices and General Electric shares shook investor sentiment but the Dow has had only 6 losing sessions out of the last 23 through yesterday…in Toronto, the TSX has retreated 72 points while the Venture has dipped 3 points to 792…among junior Gold stocks, Bonterra Resources (BTR, TSX-V) continues to outperform as it’s now trading at levels (high 50’s) not seen since late 2013…Maya Gold & Silver (MYA, TSX-V), a high-grade Silver producer in Morocco, hit a new 3-year high of 43 cents in early trading…the company’s last news release was October 30th when it reported its deepest intersection of native Silver at the Zgounder mine…on the CSE, another big run for Cannabix Technologies (BLO, CSE) to start the trading session (refer to our Morning Alert)…
6. Hive Blockchain Technologies (HIVE, TSX-V) has firmed up this morning after announcing the closing of its recently announced bought deal at $2.80, including the exercise in full of the underwriters’ option to bring gross proceeds to $34.5 million…the private placement will go toward financing the second phase of construction at the company’s digital currency mining data centre in Sweden as per HIVE’s recent agreement with Genesis Mining…HIVE is strategically partnered with Genesis to build the next generation of blockchain infrastructure…
7. Gold Standard Ventures (GRV, TSX) has released results from 8 exploration scout holes completed west-northwest and north of the North Bullion deposit on its 100%-owned/controlled Railroad Project in Nevada’s Carlin trend…interestingly, core hole RR17–06 intersected 41.7 m of 1.91 g/t Au including a higher grade zone of 7.6 m @ 6.3 g/t Au approximately 375 m west-northwest of the closest mineralized drill hole…this identifies a new Gold zone outboard from the new North Bullion maiden resource…assays for 2 other holes are pending…GSV may have bottomed at strong support around $1.60, just above its rising 1,000-day SMA…
The Template For The Next 10% Move In Garibaldi Resources
The Nickel Mountain Magma Highway
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
November 14, 2017
7 @ 7:00
Check the BMR comments section throughout the day for updates and helpful information.
1. Gold dipped as low as $1,269 this morning before rebounding on a weakening greenback and a pullback in North American equity markets…as of 7:00 am Pacific, the yellow metal has trimmed its losses to $5 an ounce as it trades at $1,273…Silver has slipped 14 cents to $16.89…Copper and Nickel have both retreated on weaker-than-expected Chinese economic data (see below) with Copper down 4 pennies to $3.07 while Nickel has fallen 24 cents to $5.38…Crude Oil is off 65 cents at $56.10 while the U.S. Dollar Index has lost more than one-third of a point to 94.12…the Dollar Index clearly lost some technical momentum last week but has strong support between 93 and 94…in economic news, the U.S. producer price index rose 0.4% in October, much higher than analysts’ estimates in the biggest annual increase in wholesale inflation in over 5-and-a-half years…the PPI was driven up by a surge in the cost of services…
2. Gold prices have shown an encouraging chart pattern of higher lows lately but likely require a significant catalyst to make the next leg up, according to analysts at TD Securities…the metal got a minor lift last week from a softer U.S. dollar and concerns about how quickly U.S. tax reform will pass. “Gold and Silver continued to exhibit little momentum, but we have witnessed a trend of higher lows,” TDS noted. “The precious metals are in need of a catalyst to force a breakout higher – additional disappointment on the oft-cited and promised U.S. tax plan or a meaningful equity correction could well be a catalyst for a move higher. With that, any convincing move above $1,290/oz could see the yellow metal test recent highs in the mid-$1,300’s.”
3. Ray Dalio’s Bridgewater Associates significantly increased its Gold holdings in the 3rd quarter…according to Securities and Exchange filings, the investment firm increased its holdings of SPDR Trust, the world’s biggest Gold-backed ETP, by nearly 15% in Q3 to almost 4 million shares…the position is valued at more than $470 million…at the same time, the firm increased its holdings of iShares Gold Trust to more than 11 million shares, valued at $139 million+, more than tripling its investment in that ETP from Q2…
4. An overreaction this morning to Chinese economic data released overnight on retail sales, industrial output and fixed asset investment growth for October…as a result, Oil and base metals have backed off along with North American equity markets…industrial output rose 6.2% from a year earlier in October, down slightly vs. a median projection of 6.3% and September’s 6.6%…retail sales expanded 10% from a year earlier – any country would love those numbers – but that was modestly shy of a 10.5% estimate and 10.3% from the prior month (slowest pace in a year)…fixed-asset investment excluding rural households rose 7.3% in the first 10 months of the year over the same period in 2016, matching economists’ forecasts…month-to-month Chinese data can fluctuate wildly but the broad trend of a strong economy continues…it’s also important to note that all of China slowed down last month (took a pause) for the twice-in-a-decade Community Party Congress but of course the mainstream media prefers a more dramatic narrative…
5. The IEA (based in Paris) delivered a surprisingly downbeat outlook for Oil demand in its monthly market report released this morning, showing an expected slowdown in consumption that was at odds with a more bullish view from OPEC yesterday…the IEA cut its Oil demand growth forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd in 2017 and 1.3 million bpd in 2018…the agency said warmer temperatures could reduce consumption, while sharply rising output from outside OPEC might mean the global market tilts back into surplus in the 1st half of 2018…rest assured, the Saudis won’t let that happen…the IEA is also not taking political factors into consideration as an escalation in tensions between Saudi Arabia and Iran could lead to supply disruptions in 2018 and bring a significant risk premium back into Crude…
6. The Dow has fallen 95 points on profit-taking through the first 30 minutes of trading…in Toronto, the TSX has retreated 76 points while the Venture has dipped 4 points to 798 after closing above 800 yesterday for the first time since early June…the Index continues to tease with regard to a potential breakout as it retreats from key Fib. resistance at 803…however, the overall trend remains encouraging despite today’s weakness…Cannabix Technologies (BLO, CSE) has soared to a new all-time high in early trading…the company, a BMR favorite since 2014, has been listed as one of the “50 Innovations to Watch” in British Columbia by Business in Vancouver (“BIV”) magazine…BIV, in its special edition magazine, lists 50 made-in-B.C. innovations that are making waves across the province, the country and the world...Calyx Bio-Ventures (CYX, TSX-V) hit a new multi-year high of 21 cents as accumulation continues following the company’s completion last week of a $1 million financing and an update on plans to deploy its first data mining facility…Castle Silver Resources (CSR, TSX-V), in preparation for underground drilling (only company in northern Ontario Cobalt Camp with key underground access), has jumped to a fresh 3-month high after news yesterday that surface drilling has confirmed the presence of high-grade Cobalt and even Gold within a 200-m radius of the Castle mine which was one of the last producing high-grade Silver mines in the region (Agnico Eagle in the 1990’s)…an important technical reversal has also occurred in CSR as a new uptrend commences…
7. The drill result of the day belongs to Mexican Gold (MEX, TSX-V) – 54 m grading 3.9 g/t Au, 1.7% Cu and 12.6 g/t Ag (6.9 g/t AuEq)…the company this morning reported assay results for resource expansion hole LM-17-ED-40 at its Las Minas Property, first announced as mineralized over 77.2 m (October 16, 2017, news release)…assay results returned a cumulative 94.35 m of high-grade mineralization over 3 zones…the main zone, which is the largest of the 3 zones, returned the 54-m section mentioned above including a 38-m interval grading 9.2 g/t AuEq…MEX, which has only 34 million shares outstanding, is up 6 cents at 37.5 cents as of 7:00 am Pacific…
The Template For The Next 10% Move In Garibaldi Resources
The Nickel Mountain Magma Highway
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
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