April 25, 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 hit a 4-week low today, pressured by a further appreciation in the greenback with the U.S. Dollar Index pushing to a 3-and-a-half month high…Gold has traded between $1,318 and $1,329, and is down $10 an ounce at $1,319 as of 7:00 am Pacific…Silver has slid 16 cents to $16.52…Copper is off 2 pennies at $3.15…Nickel is up a penny at $6.34…Zinc is 3 cents lower at $1.42 while Cobalt remains steady at $41.50…Crude Oil has added 8 cents to $67.78 while the U.S. Dollar Index has strengthened one-third of a point to 91.12…Bitcoin, which was up as much as 50% this month after its intra-day high near $10,000 (U.S.) yesterday, has pulled back to just above $9,000…
2. New fintech startup Tradewind, a blockchain-powered Gold trading platform which reflects the rapidly evolving landscape for trading precious metals, has announced that it has raised $10.6 million in a strategic placement led by Agnico Eagle (AEM, TSX), IAMGOLD (IMG, TSX) and Wheaton Precious Metals (WPM, TSX)…in addition, existing stakeholders Sprott Inc. and Goldcorp (G, TSX) increased their investment in the company…Silicon Valley based venture capital firm Sapphire Ventures also became a new investor in Tradewind…Matthew Trudeau, President and co-founder of Tradewind, says the demographics within the Gold sector are changing and a digital platform that allows investors to buy fractional quantities of Gold will allow companies to reach untapped potential, specifically millennials. “Everyone thinks millennials don’t have any money, but that isn’t accurate,” said Trudeau. “We are sitting on the cusp of the biggest transfer of wealth in history.” Trudeau believes that his startup’s platform will help streamline the transition to an entirely digital marketplace…Tradewind was a #DisruptMining finalist in 2017 and has raised $22.8 million in capital since inception…
3. What a mess in the Congo, which makes the northern Ontario Cobalt Camp more attractive than ever…the latest problem is that the DRC’s state-owned mining company, Gecamines, has accused Katanga Mining (KAT, TSX) of draining hundreds of millions of dollars from their joint-venture Copper and Cobalt mining company…Katanga soared as high as $2.83 in early January on projections that it would become the world’s biggest producer of Cobalt…however, the fragility of Katanga’s position came into clear focus this week on the revelation of a dispute between Glencore, majority owner of Katanga, and Gecamines…in a statement yesterday, Gecamines said Glencore and Katanga had created a massive debt of about $9 billion (U.S.) at the joint venture, forcing the local company to pay interest rates of up to 14% to Glencore which controls 75% per cent of the JV…the DRC also accuses Glencore and Katanga of failing to pay their fair share of revenue to the state…KAT lost almost half its value Monday, rallied yesterday but is down sharply again in early trading today…
4. Oil prices have pulled back this morning after U.S. government data showed an unexpected rise in stockpiles of Crude Oil and gasoline as the nation’s refineries dialed back activity…U.S. Crude inventories increased by 2.2 million barrels in the week to April 20, according to a report by the Energy Information Administration…Brent prices yesterday briefly breached $75 a barrel for the first time in over 3 years…the trend in Oil remains strongly bullish…keep in mind that at some point, likely during 2019 according to most analysts, the Oil market will be feeling the delayed effects of a 40% slump in investment from late 2014 to early 2017, storing up a structural shortfall of up to 10 millions a barrel a day…
5. The Dow is down 149 points through the first 30 minutes of trading despite an earnings blowout from Boeing…in Toronto, the TSX is relatively unchanged…Barrick Gold (ABX, TSX) executives say the company is shifting to a growth strategy, focusing on Nevada and the Dominican Republic, and will no longer sell assets in order to reduce its billions of dollars in debt…proceeds from any asset sales will be plowed into new projects or returned to shareholders…Barrick yesterday reported adjusted quarterly earnings of 15 cents per share, slightly above the consensus estimate…Corvus Gold (KOR, TSX), one of the top performing Gold stocks this year, reported results this morning from 3 step-out holes in the southwest extension of its Mother Lode deposit in Nevada highlighted by 33.5 m grading 2.2 g/t Au in ML18–053…this included 19.8 m @ 3.3 g/t …the company says a thickening oxide zone to the west is consistent with mineralization found in other holes to the north and could define a fundamental change in the system as drilling progresses west…Nemaska Lithium (NMX, TSX) has closed its previously announced private placement of 88,460,446 subscription receipts at a price of $1.12 per receipt for aggregate gross proceeds of $99.1 million…the Venture is off 6 points at 783 as of 7:00 am Pacific…drill result of the day goes to K92 Mining (KNT, TSX-V) which cut 0.72 m of 3,586 g/t Au within a broader mineralized interval of 5.82 m @ 486.78 g/t Au, 21 g/t Ag and 0.15% Cu from grade control drilling at its Kora North extension (Kainantu Gold Project) in Papua New Guinea…
6. Tinka Resources (TK, TSX-V) has intersected 19.3 m grading 9.2% Zinc and 19 g/t Ag from 300 m in a step-out hole drilled 110 m northwest of the West Ayawilca Zinc resource in Peru…follow-up drilling is underway…the new mineralization in A18–114 at West Ayawilca is located on the eastern limb of an ‘anticline’ fold axis which company geologists believe acted as a trap for the Zinc mineralization…2 rigs are currently operating at West Ayawilca and Zone 3, with a 3rd rig now mobilizing and expected to commence drilling by the end of the month…Dr. Graham Carman, Tinka’s President and CEO, commented, “We are very pleased to have intersected significant high-grade Zinc mineralization in our first step-out hole at West Ayawilca in 2018. It is still early in this year’s drill program, but we are confident that our planned 15,000-m drill program will continue to expand on our known mineralized zones, discover new areas of Zinc mineralization, and add significant new mineral resources to the project. Approximately 25–30 holes are planned for the first half of 2018 consisting mostly of step-out holes, with an initial Preliminary Economic Assessment planned to be completed before year’s end.”
7. Fundamentals are in place for precious metals, especially Silver, to significantly break out of current trading ranges, according to a report from Bloomberg Intelligence…the report said that silver has a history of lagging its industrial metals companions and can rally as much as 50% by simply “catching up”…the report noted, “It’s been about 50 years since Silver’s 12-month range was this narrow, increasing the likelihood of a sharp rally. Essentially unchanged from June 2016, Silver has plenty of room to catch up to the 50% rally in the Bloomberg Industrial Metals Spot Index and 3% decline in the trade-weighted broad dollar.” Mike McGlone, senior analyst at Bloomberg Intelligence, said that fundamental macro forces, especially a weakening dollar, remain the key catalysts for a potential breakout of range-bound commodities like precious and industrial metals. “The weakening dollar, strong global purchasing-managers indexes and bottoming inflation are leading macroeconomic-foundation builders,” he said in the report…
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April 24, 2018
Daniel’s Den
7 @ 7:00
Daniel’s Den returns tomorrow (Tuesday) as Daniel is on special assignment today – visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,323 and $1,330 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,329 after 2 days of losses…Silver has climbed 9 cents to $16.67…Copper is up 4 pennies at $3.17…Nickel has rebounded 4 cents to $6.48…Zinc is steady at $1.47 while Cobalt remains unchanged at $41.50…Crude Oil has firmed up again after a brief pullback and is 22 cents higher at $68.86 while the U.S. Dollar Index is off one-tenth of a point at 90.84…U.S. consumer confidence remains very strong as the Conference Board’s index increased to 128.7 in April, up from 127 the prior month and better than analysts’ estimates…
2. For the first time since January 2014, the yield on 10-year U.S. Treasuries has inched past the key psychological level of 3%…this occurred shortly after the opening of stock trading this morning, though it has since dipped slightly back below 3%…meanwhile, the yield on the 2-year Treasury note also set a multi-year record, topping 2.5% for the first time since September 2008…investors have been selling Treasurys as of late, leading to rising yields, amid expectations of a pick-up in inflation which may encourage the Fed to tighten monetary policy more quickly…Oil prices will be a key factor in that equation…
3. Excellent piece this morning in the Financial Post on how desperate Canadian Oil producers are turning to transport trucks to ship Crude…Crude exports from Canada by road nearly tripled from 2015 to 2017, and continued to rise in the first 2 months of 2018, according to StatsCan data…however, a truck can only carry 200 barrels of Oil, compared with 60,000 barrels in 1 unit train, or nearly 600,000 per day on the Keystone Pipeline (the equivalent of 3,000 trucks)…each one of those trucks needs a driver and enough fuel to carry Crude over long distances…moving Crude by truck is at least 10 times more expensive on a mile-for-mile basis compared with rail or pipeline, but that’s one of the results of anti-pipeline hysteria and climate change extremism in Canada…also, too, is the fact that without a major new pipeline to move Oil and bitumen to the West Coast, the East Coast or Texas’s Gulf Coast, Oil-by-rail has gone from a few tens of thousands of barrels per day 3 years ago, to 150,000 barrels in 2017, an estimated 250,000 this year and nearly 400,000 barrels daily by next year…the strain on Canada’s already tight rail system gets worse by the day…
4. The Dow is up slightly through the first 30 minutes of trading…better-than-expected earnings reports from the likes of Caterpillar, Eli Lilly, United Technologies, Verizon, Coca-Cola and Google-parent Alphabet gave U.S. markets a lift at the open…Freeport-McMoRan (FCX, NYSE), the world’s largest publicly traded Copper company, reported Q1 net income of $692 million or 47 cents per share vs. $228 million or 16 cents per share in the same period last year…meanwhile, Barrick Gold (ABX, TSX, NYSE) has reported slightly better than expected earnings for Q1 of 15 cents per share despite lower production…in Toronto, the TSX is up 12 points while the Venture is relatively flat at 798 as of 7:00 am Pacific…
5. GT Gold (GTT, TSX-V) announced plans this morning for an 18,000-m drill program commencing June 1 at its Saddle South high-grade Gold discovery in northwest B.C., a 2-hour drive from the Eskay Camp…drilling will focus on expanding an impressive 2017 discovery from first-ever drilling that featured impressive grades, thickness and continuity of mineralization over a large vein zone that comes to surface and spans approximately 500 m x 150 m x 500 m…it’s wide open for expansion east and west and is flanked by a Gold-Copper porphyry discovery made late in the season last year along the 2.5-km-long Saddle North trend…RC and diamond drilling results from the high-grade discovery at Saddle South included 51.5 g/t Au over 6.9 m, 17.4 g/t Au over 9.1 m, 15.2 g/t Au over 8 m, 5.8 g/t Au over 20.7 m and 31.8 g/t Au and 1,141 g/t Ag over 3 m…GTT is unchanged at 75 cents as of 7:00 am Pacific…after several months of consolidation, GTT has commenced a new uptrend…the 50-day SMA is now reversing to the upside where GTT has plenty of room to push higher with the 200-day still rising at just above $1.00…
6. Global Blockchain Technologies (BLOC, CSE) is on the move again this morning after announcing that it has added fintech pioneer Richard Schaeffer to its advisory board…as Chairman of NYMEX, Schaeffer was responsible for the company’s transition to electronic trading…in doing so, he played a significant role in moving the financial industry online…it was during his tenure that NYMEX had its IPO and listing on the NYSE, which was the most successful public offering of its time…previously he also served on the boards of Sacred Heart University and the University of Maryland’s School of Business…Schaeffer currently serves as Chairman of the Board for the eco-friendly chain of food trucks in New York called Neapolitan Express Pizza, and he’s an investor in several private companies in commodities and technology…as part of the company’s shift in focus towards incubating new blockchain technologies, Schaeffer brings decades of finance experience and a plentiful base of industry connections to the table…Global Blockchain has also added 4 new members to its Laser Network Advisory Board…
7. Fundamentals are in place for precious metals, especially Silver, to significantly break out of current trading ranges, according to a report from Bloomberg Intelligence…the report said that silver has a history of lagging its industrial metals companions and can rally as much as 50% by simply “catching up”…the report noted, “It’s been about 50 years since Silver’s 12-month range was this narrow, increasing the likelihood of a sharp rally. Essentially unchanged from June 2016, Silver has plenty of room to catch up to the 50% rally in the Bloomberg Industrial Metals Spot Index and 3% decline in the trade-weighted broad dollar.” Mike McGlone, senior analyst at Bloomberg Intelligence, said that fundamental macro forces, especially a weakening dollar, remain the key catalysts for a potential breakout of range-bound commodities like precious and industrial metals. “The weakening dollar, strong global purchasing-managers indexes and bottoming inflation are leading macroeconomic-foundation builders,” he said in the report…
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April 23, 2018
7 @ 7:00
Daniel’s Den returns tomorrow (Tuesday) as Daniel is on special assignment today – visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,323 and $1,336 so far today…as of 7:00 am Pacific, bullion is down $12 an ounce at $1,323 on a strengthening greenback after the Dollar Index cleared resistance just above 90…Silver has fallen 46 cents to $16.66…the stronger dollar has impacted the broader commodity sector today while other factors have also played a role…Iran’s Oil minister said that 2 dozen Oil producers may not need to extend their deal to limit production, but what Iran says means nothing to the Saudis…meanwhile, certain metals have weakened after the U.S. Treasury Department said it would delay imposing sanctions on Russian Aluminum giant Rusal…Copper is off 3 pennies at $3.12 as of 7:00 am Pacific…Nickel has retreated 27 cents to $6.42…Zinc is up a penny at $1.46 while Palladium has tumbled more than $40 an ounce to $974…Cobalt remains unchanged at $41.50…Crude Oil is off 78 cents a barrel to $67.62 while the U.S. Dollar Index has climbed more than one-third of a point to 90.80…geopolitical tensions have eased with news over the weekend that North Korea stated it would suspend nuclear and missile tests before planned summits with South Korea and the United States…meanwhile, there are also signs that U.S.-China relations might be thawing…all of this has played into the Gold market today…
2. The yield on 10-year U.S. Treasuries hit its highest (3.00%) since January 2014 this morning, lifting the Dollar Index to a 7-week peak and putting pressure on Gold…rising yields imply rising inflation, however, and ultimately that’s bullish for the yellow metal which has tremendous support at $1,300…the 10-year Treasury yield hasn’t broken 3% in 5 years…in Canada, signs of inflation are also appearing…the Consumer Price Index was 2.3% higher in March than a year earlier as reported by Stats Canada Friday…that’s the biggest increase in 4 years and faster than the central bank’s target of 2%…it’s a much different story in Japan where the country’s CPI, excluding food and energy, rose just one-half of 1% in the 12 months through March…over the weekend, BOJ Governor Haruhiko Kuroda actually stated on CNBC, “Sometime over the next 5 years we will reach our 2% target” and the central bank will then be able to wind down its massive stimulus program that has cut the benchmark interest rate to negative…
3. Angus Reid has released the 2nd part of an opinion poll last week that found that a solid majority of British Columbia residents, and Canadians, support the Kinder Morgan pipeline expansion…the 2nd part released today showed 60% of those surveyed do not think the protests against the pipeline expansion represent the mainstream view…however, by a ratio of 3-to-1, Canadians surveyed think Kinder Morgan could have done a better job of earning public support…the poll also suggests the debate has captured the attention of Canadians across the country with a majority in every province except Quebec saying they are paying attention to it…the online survey was conducted among a representative randomized sample of 2,125 Canadian adults who are members of the Angus Reid Forum….meanwhile, the pipeline battle is tearing at the seams of the vision of Canada pursued by the Fathers of Confederation, according to Jason Kenney, the leader of Alberta’s United Conservative Party. “Yes, I do think this is becoming a constitutional crisis,” Kenney told Global’s Eric Sorrenson. “You have a provincial government that is illegally asserting a power to violate federal jurisdiction to attack the country’s economic interest, basically to say that it can, at whim, decide which products are exported from one of Canada’s two major coasts. This is ridiculous. This is a complete violation of the concept of Canada from Confederation as an economic union, and if this is allowed to stand, what does it say about this country?”…
4. This will be the busiest week of the earnings season…more than 170 companies are expected to have released their quarterly results by the end of the week, including Alphabet, 3M, Amazon and Chevron…overall, this earnings season has been strong…more than 82% of S&P 500 companies that have reported through this morning have topped earnings estimates, according to FactSet…
5. The Dow is up slightly through the first 30 minutes of trading…in Toronto, the TSX is up 18 points while the Venture is off 3 points to 802 as of 7:00 am Pacific…crypto/blockchain stocks are leading the way in early trading as Bitcoin strengthens to about $9,000 (U.S.)…the Venture has posted 2 straight weekly gains and reversals to the upside have occurred in its EMA(8) and EMA(20) with strong new support at 790…Evrim Resources (EVM, TSX-V) has hit a new high of $1.70 this morning…
6. Marathon Gold (MOZ, TSX) has released new drill results from the Valentine Lake Gold Camp in central Newfoundland, including 8.4 g/t Au over 6 m and 7.1 g/t Au over 4 m…all 14 winter 2018 Sprite zone bog drill holes intersected echelon stacked, southwest-dipping QTP Gold veining in an extensive alteration halo…the newly discovered mineralization beneath the Sprite zone bog has added another 2 km to the strike length of the mineralized corridor at Valentine, and provides an excellent target area for additional resource development…MOZ is unchanged at 92 cents, just above strong support at 90 cents which includes its rising 500-day moving average (SMA)…
7. Banks bow to Paris Climate Accord: HSBC Holdings plans to mostly stop financing new Coal power plants, Oil sands and arctic drilling…ING and BNP Paribas have made similar pledges in recent months under mounting pressure from groups to align the banks’ actions with the Paris Agreement, a global pact to limit greenhouse gas emissions…HSBC’s Daniel Klier said, “We recognize the need to reduce emissions rapidly to achieve the target set in the 2015 Paris Agreement and our responsibility to support the communities in which we operate.” HSBC said it would make an exception for Coal-fired power plants in Bangladesh, Indonesia and Vietnam…HSBC CEO John Flint stated, “There’s a very significant number of people in those three countries who have no access to any electricity. The reasonable position for us is to allow a short window for us to continue to get involved in financing Coal there if we think there is not a reasonable alternative.” Greenpeace said HSBC’s new energy strategy would prevent it from providing project financing for TransCanada’s proposed Keystone XL pipeline to Nebraska…
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April 22, 2018
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