January 22, 2018
January 21, 2018
January 19, 2018
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 $1,330 and $1,339 so far today…as of 7:00 am Pacific, bullion is up $8 an ounce at $1,334…holdings of SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, rose 1.42% to 840.76 tonnes yesterday…a U.S. government shutdown (not really a big deal – there were 9 of them during the Reagan era) is looming as early as tonight if the Senate doesn’t clear a bill that would fund the government through February 16…a House bill has passed but a Senate bill on this requires 60 votes…that means Democrats, insisting on DACA protections for undocumented immigrants, will need to show some rare bipartisanship…Gold has actually lost ground during the last 3 U.S. government shutdowns…Silver has added 5 cents to $16.98…Copper is unchanged at $3.19…Nickel has jumped 11 cents to $5.74…Crude Oil is off 45 cents at $63.50 while the U.S. Dollar Index labors near a 3-year low, down slightly at 90.46…
2. The U.S. is well-positioned to overtake Saudi Arabia and Russia and become the world’s leading energy producer over the next 12 months, according to the latest monthly report from the International Energy Agency (IEA). “This year promises to be a record-setting one for the U.S.,” the IEA said in its closely-watched report published today. “Relentless growth should see the U.S. hit historic highs above 10 million barrels a day (in production), overtaking Saudi Arabia and rivaling Russia during the course of 2018 – provided OPEC and non-OPEC restraints remain in place.” U.S. Crude production stands at 9.9 million barrels a day, according to the IEA, which is the country’s highest level in almost 50 years…that level of supply puts the U.S. neck-and-neck with OPEC kingpin Saudi Arabia, the world’s 2nd-largest producer after Russia…given the recent rally in Oil prices, the IEA expects a “wave of new production” from the U.S. in the coming months…
3. U.S. consumer sentiment remains very high but dipped in the January mid-month reading released moments ago, moving further from the decade high reached in October…the University of Michigan’s survey of consumer attitudes for January slipped to 94.4, after falling to 95.9 in December…economists polled by Reuters expected the reading to increase to 97…one-third of consumers spontaneously mentioned tax reform…of those, 70% said the impact from the new tax reform law would be positive while 18% (perhaps those watching CNN) said it would be negative…
4. Wall Street’s top regulator yesterday shot down the idea of allowing exchange-traded funds that hold Bitcoin and other cryptocurrencies, questioning whether the products could comply with rules meant to protect mom-and-pop investors…the Securities and Exchange Commission outlined its views in a letter to two Wall Street trade groups whose members envision the profits that could flow from selling exposure to Bitcoin through popular investment vehicles such as ETFs and mutual funds, according to a report in the Wall Street Journal…the SEC questioned how Bitcoin’s volatility and potential illiquidity would fit with funds that must calculate a fair market price for their portfolio at the end of every trading day and allow investors to easily cash out their shares…
5. The Dow is off slightly through the first 30 minutes of trading…yet another reason why U.S. equity markets remain so strong – nearly 80% of the S&P 500 companies that had reported have surpassed earnings-per-share estimates while almost 90% have beaten expectations on the top line, according to The Earnings Scout…in Toronto, the TSX is up 41 points while the Venture has added 3 points to 879 as the Index tries to snap a 3-session losing skid...ML Gold (MLG, TSX-V), which has enjoyed a powerful week, remains one of the Venture’s most active stocks, hitting a new multi-year high of 32 cents in early trading as the company continues a drill program at its Stars Project near the Huckleberry mine in central British Columbia…Millennial Lithium (ML, TSX-V), which released a maiden resource estimate late last year for its Pastos Grandes Lithium brine project in Salta, Argentina, touched a new all-time high yesterday of $4.45 and is up 4 pennies at $4.29 as of 7:00 am Pacific…
6. Castle Silver Resources (CSR, TSX-V), the only company in the northern Ontario Cobalt Camp with critical underground access, announced this morning that it’s changing its name to “Canada Cobalt Works Inc.” (“Canada Cobalt), subject to a shareholder vote at its upcoming AGM February 15…CSR says the name change will more accurately reflect the company’s primary focus in Canada’s premier Cobalt district, adding that “well before the surge in Cobalt prices started in 2015, CSR laid the groundwork for success on the Cobalt side of its business by acquiring and advancing top properties in northern Ontario while researching technological opportunities related to the Cobalt sector.” CSR has expanded its underground Cobalt program at the past producing Castle mine near Gowganda…updates on that and the company’s proprietary Re-2OX process are expected “shortly“, according to this morning’s news…Re-2OX was originally developed in conjunction with the National Research Council and, together with underground access at Castle, opens a range of opportunities for CSR to help serve the growing Cobalt needs of the battery sector…given regional neighbor First Cobalt’s (FCC, TSX-V) market cap of >$250 million, the new “Canada Cobalt” currently valued nearly 90% less has impressive upside potential…CSR is unchanged at 48.5 cents as of 7:00 am Pacific…
7. Is there a chance for a Nickel sulphide discovery well outside the borders of Nickel Mountain (and Kirkham) in the Eskay Camp?, nearly 20 km away to the southeast?…Eskay Mining (ESK, TSX-V) reported this morning that highly-regarded geologist and magmatic Nickel-Copper sulphide system expert Dr. Peter Lightfoot has confirmed that the mineralization at the company’s Red Lightning prospect is indeed that of a magmatic Nickel-Copper sulphide system…while the grades intersected nearly a decade ago are sub-economic (20.4 m at 0.79% Cu, 0.42% Ni and 0.08% Co, including 10 m at 1.03% Cu, 0.55% Ni and 0.10% Co (estimated true thicknesses of 10.8 m and 5.3 m, respectively), the Nickel-Copper system remains remains prospective…meanwhile, stream sediment sampling and airborne geophysics both suggest that Red Lightning should be viewed as just one small part of what is likely a much larger, 15-km-long under-explored belt that likely includes other mafic-ultramafic bodies…the belt is outlined by anomalous Nickel-Copper stream sediment geochemistry and airborne magnetic highs that may well run from the Red Lightning zone along a northwest trend toward Garibaldi Resources‘ (GGI, TSX-V) high-grade massive sulphide discovery just east of the historic E&L deposit…
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January 18, 2018
7 @ 7:00
Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,324 and $1,333 so far today after a modest dip yesterday…as of 7:00 am Pacific, bullion is up $4 an ounce at $1,330…Silver has added 11 cents to $17.08, 20 cents below nearest resistance…Copper is up 2 cents at $3.19 while Nickel has added 3 pennies to $5.64…Crude Oil is steady near $64 while the U.S. Dollar Index has backed off again to 90.46, down half a point and vulnerable to a further slide…what makes the dollar’s decline durable is global central banks’ simultaneous shift toward tightening monetary policy…
2. Crude Oil prices are within sight of their highest levels since December 2014, supported by multiple factors including news that militant group Niger Delta Avengers has threatened to attack Nigeria’s Oil sector in the next few days, potentially hampering supplies in Africa’s largest exporter…the impact of such a threat, if carried out, would be significant on the global supply and demand balance…meanwhile, Venezuela’s Oil output is collapsing at an accelerating pace (isn’t socialism wonderful?), deepening an economic and humanitarian crisis and increasing the chances the country will default on its debts…production fell 216,000 barrels a day to 1.6 million in December compared to November, the 15th consecutive monthly decline, according to data released this morning by OPEC…this ranks among the deepest declines in the industry’s recent history…Russia’s output slid 23% during the fall of the Soviet Union, and Iraq’s output dropped by the same share after the 2003 U.S. invasion, according to data from OPEC and BP Statistical Review…
3. Yet another reason why U.S. equity markets remain so strong – of the S&P 500 companies that had reported as of yesterday morning, 78% have surpassed earnings-per-share estimates while 89% have beaten expectations on the top line, according to Nick Raich, CEO of The Earnings Scout…
4. The Bank of Montreal has become the first of the Big Six to lead a marijuana equity financing, underwriting a $175 million stock sale for Canopy Growth (WEED, TSX) which was announced yesterday…the deal was done at a price of $34.60 per share, 8% below WEED’s closing price, but above very strong technical support that exists in a band between $30 and $28 according to BMR charts…the offering is expected to close in 3 weeks on February 7…
5. After four triple digit advances over the past 5 sessions, the Dow is off 20 points through the first hour of trading…in Toronto, the TSX is up slightly while the Venture is 3 points lower at 882...interesting development this morning, and another sign that due to over-regulation the TSX Venture is bleeding business to its rival at the CSE…Global Blockchain Technologies (BLOC, TSX-V) is leaving the Venture and its shares will commence trading on the CSE at the market open next Tuesday, January 23 under the name symbol…BLOC is up on the news, 13 cents higher at $1.79 as of 7:00 am Pacific…Otis Gold (OOO, TSX-V) released more results this morning from last year’s 25-hole, 8,000-m program at its Kilgore Project in Idaho, highlighted by hole OKC-373 at the south end of the deposit which returned 24.4 m grading 4.3 g/t…the high-grade intercept occurred at the contact between the rhyolite dome and Aspen Formation in the Cabin Fault area, opening up further high-grade potential in a largely untested area to the southeast…
6. First Cobalt (FCC, TSX-V), sporting a market cap of more than $250 million, reported this morning that it has commenced surface drilling at the Bellellen mine near Cobalt, Ontario…a total of 15 holes for 2,000 m are planned at Bellellen to test the relationship between the disseminated style of Cobalt mineralization identified in 2017 and the vein style mineralization that was traditionally mined in the Cobalt Camp…FCC’s drilling at Bellelen represents the first phase of a 2018 $7 million drilling and exploration program covering more than a dozen target areas throughout its landholdings. “The objective of the 2018 drill program is to use our strong treasury to blanket the Camp, testing the near-surface potential of many areas with different styles of mineralization and diverse geological settings that have never been assessed for their Cobalt content. In addition to Keeley-Frontier, 12 new properties will be drilled on our 100 sq. km land package, including Bellellen, Drummond, Silver Banner and Silverfield,” stated President and CEO Trent Mell…meanwhile, in another part of the northern Ontario Cobalt Camp, Castle Silver Resources (CSR, TSX-V) – soon to be renamed for its Cobalt focus – is doubling down on a more cost effective strategy which is focused on the easier task of accessing Cobalt directly from underground where material was previously mined…CSR, with a much lower market cap than FCC, is the only company in the district that’s permitted for underground work…
7. TransCanada (TRP, TSX) has enough shipper interest to go forward with Keystone XL…the Calgary-based company has secured “approximately 500,000 barrels per day of firm, 20-year commitments,” according to a statement this morning…TransCanada received state approval in Nebraska in November to construct the project using an alternate route, and is currently working with landowners along the new path to obtain the necessary easements…construction preparation has begun, with primary construction scheduled to begin next year…the turning point for this project of course occurred after President Trump was elected as the previous Obama administration had declared its steadfast opposition to Keystone XL. “Over the last 12 months, the Keystone XL Project has achieved several milestones that move us significantly closer to constructing this critical energy infrastructure for North America,” stated TransCanada CEO Russ Girling…
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January 17, 2018
7 @ 7:00
Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,332 and $1,339 so far today…as of 7:00 am Pacific, bullion is down $2 an ounce at $1,336…the price of Gold has climbed about 8% since mid-December, helped by a weakening of the dollar to a 3-year low against a basket of major currencies…the yellow metal is eyeing key resistance at $1,350…Silver is off 5 cents at $17.13…it has Fib. resistance at $17.28 on the short-term chart (followed by resistance at the October $17.59 high) but the overall technical pattern is constructive with the 200-day moving average (SMA) acting as support around $17…Copper has slid 2 pennies to $3.17…Nickel has retreated another 7 cents to $5.61 while Cobalt has pushed to a new decade high of $35.61, up $1.36 a pound…Crude Oil is off 13 cents at $63.60 while the U.S. Dollar Index has rallied nearly one-third of a point to 90.69 but remains vulnerable to a further slide…
2. HSBC’s latest outlook on Silver: “After years of weakness, industrial demand is rebounding, led by photovoltaic and electronic offtake…HSBC’s economists forecast positive global industrial growth, which should further boost Silver offtake…tighter supply/demand balances are an important factor in our outlook…plenty of room for both to rebuild, notably net long positions…investor coin and bar demand remains very weak, but should recover from low levels…strong gains in equity markets, receding geopolitical risks, and reduced investor interest in hard assets undercut Silver demand (in 2017)…weak jewelry demand and plunging bar and coin offtake further weighed on Silver.”
3. Stock market optimism among professional investors just keeps on surging, and is now at the highest level in more than 3 decades since April 1986…bullishness is now at 66.7% in the latest Investors Intelligence survey, a widely followed gauge of sentiment among investment newsletter authors…meanwhile, the January Bank of America Merill Lynch Fund Managers Survey, another gauge of professional investors’ sentiment, shows cash levels at a 5-year low, allocations to stocks at a 2-year high and the overweight ratio of stocks to government bonds at its highest since August 2014…
4. Cryptocurrencies have taken another beating on continued talk of tougher regulation…below $10,000 (U.S.) for the first time since November, a drop of 15% in the past 24 hours (that’s $30 billion in market value) for a 50% correction since last month’s all-time record high of $19,343….meanwhile, Etherum and Ripple – the 2nd and 3rd-biggest digital assets, respectively – also continue to move lower, along with almost every other cryptocurrency. “We have very fast-moving weather systems in the crypto world,” Charles Hayter, chief executive of research firm CryptoCompare, told the Wall Street Journal. “One moment it’s absolute exuberance, and then it’s pure fear and panic, running for the exits. It’s quite interesting. This is what you’d expect in a nascent market with a lot of misinformation.”
5. After a volatile session yesterday, the Dow is up 102 points through the first 30 minutes of trading…Goldman Sachs posted its first quarterly loss in 6 years, thanks to a dismal showing by its trading unit…in Toronto, the TSX is 19 points higher despite a quarter point interest rate hike from the Bank of Canada…the central bank’s target for the overnight rate now sits at 1.25%…the change is expected to prompt Canada’s large banks to raise their prime lending rates, a move that will drive up the cost of variable-rate mortgages and other variable-interest rate loans…the Venture has edged up a point to 889, though there is some weakness across the tech sector while marijuana plays have quieted down temporarily…it’s a good time for the resource side, which constitutes just over 60% of the Index, to pick up some of the slack…
6. Arizona Mining (AZ, TSX) has pushed higher in early trading following the release of a significantly enhanced, updated Preliminary Economic Assessment (PEA) and mineral resource estimate for its 100%-owned Taylor Zinc-Lead-Silver sulphide deposit (Hermosa Project) in Arizona…based on the updated study, showing a 29-year mine life and a 1.7-year payback period, the company continues to target first mineralized material to plant from a proposed 10,000-ton-per-day (tpd) operation in 2020…the after-tax IRR has jumped from 42% to 48%…pre-production capex of $519 million is a 14% increase from the previous PEA but will allow for accessing higher-grade material up-front in the mine plan which provides a substantial benefit to overall project economics. Jim Gowans, President and CEO, stated: “As part of the PEA update, we completed an additional 71,000 m of drilling in 2017 from March to November, which led to a 39% increase in measured and indicated mineral resources, and essentially maintained the Zinc equivalent grade. That tells us we have yet to identify the outer limits of the deposit – this is what excites me most about the project.”
7. Kirkland Lake Gold (KL, TSX), coming off a stellar 2017 which included a 170% share price gain, provided bullish full-year guidance this morning for 2018…management sees increased production, improved unit costs, and higher levels of capital and exploration expenditures in support of the company’s objective of growing annual Gold production over the next 5 to 7 years to approximately 1 million ounces…for 2018, KL expects production growth to over 620,000 ounces at all-in-sustaining costs averaging $750 to $800 (U.S.) per ounce…in Canada, the company’s exploration drilling will be mainly focused on continuing to extend the South mine complex at Macassa and expanding Gold mineralization at Taylor…
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