June 29, 2018
Daniel’s Den
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 is trying to rebound on this final trading day of the month, aided by a retreat in the greenback…Gold is up $3 an ounce at $1,251 as of 7:00 am Pacific…oversold conditions have emerged in the Gold market with a test of key support in the upper $1,230’s possible before a reversal kicks in…Silver has recovered 8 cents to $16.05…base metals are steady with Nickel leading the way, up 5 cents at $6.73…Copper is flat at $3.00 while Zinc is also unchanged at $1.33…Cobalt is off slightly at $35.61…Crude Oil continues to climb, up 60 cents at $74.05, while the U.S. Dollar Index has retreated half a point to 94.78…
2. WTI prices are up by nearly 20% from their June lows…the world Oil market is already tight and many analysts believe that strict enforcement of U.S. sanctions against Iran will push prices sharply higher…Iran is the 5th-largest Oil producer in the world, pumping about 4.7 million barrels per day (bpd), or almost 5% of the world’s Oil, much of it to China and other energy-hungry nations such as India…the Trump administration wants to stop Tehran exporting Oil to cut off a vital supply of finance and hopes other big OPEC producers and Russia will make up for the deficit, along with increased American production…but the world Oil market is already tight with supply disruptions from Canada to Venezuela to Libya…“The stronger the implementation and enforcement (of Iran sections), the higher the Oil price will go,” commented Vienna-based consultancy JBC Energy…“In such a case, triple-digit Oil prices are not off the table”…
3. U.S. consumer prices accelerated in the year to May, with a measure of underlying inflation hitting the Federal Reserve’s 2% target for the first time in 6 years…consumer prices as measured by the personal consumption expenditures (PCE) price index rose 0.2% after a similar gain in April, the Commerce Department reported this morning…in the 12 months through May, the PCE price index surged 2.3% – the biggest gain since March 2012…the PCE price index excluding the volatile food and energy components increased 0.2% for a 6th straight month…that pushed the year-on-year increase in the so-called core PCE price index to 2.0%, the biggest gain since April 2012…the core PCE index is the Fed’s preferred inflation measure…the U.S. central bank raised interest rates early this month for a second time this year and plans 2 more rate hikes by the end of 2018…
4. China stocks bounced from multi-year lows today, sparked in part by news that the National Development and Reform Commission will ease some restrictions on foreign investment in domestic industries such as aviation, crop development and banking…meanwhile, the People’s Bank of China (PBOC) said it intends to maintain “reasonably ample” liquidity in the financial system of the world’s 2nd-largest economy…there are concerns that the yuan, which is on pace for its steepest monthly decline against the U.S. dollar in 2-and-a-half years, will make China’s ambition of 6.8% GDP growth this year will difficult to achieve…
5. The NASDAQ overcame an early slump in the 2nd quarter and is on track to book its 8th straight quarter of gains, as fears of a trade war stifling global growth pushed investors to dump industrial stalwarts and increase their bets on shares of large technology companies…the tech-heavy index thrived in a tumultuous 3 months for U.S. stocks, which struggled to gain ground as investors were buffeted by worries about trade tensions, political uncertainty in the euro zone and signs of slowing momentum in the global economy despite strong growth in the United States…the S&P 500 and the Dow rose 2.9% and 0.5%, respectively, for the quarter through yesterday, trailing the Nasdaq’s 6.2% advance…the first two remain well below their January records, while the NASDAQ notched a series of all-time highs in June…in Canada, the TSX is up a solid 5.3% for Q2 but the Venture has slipped 60 points or 7.5% since the beginning of April…
6. The Dow has jumped 219 points as of 7:00 am Pacific…in Toronto, the TSX is up 101 points while the Venture is off 1 point at 736 after bouncing off support yesterday in what could turn out to mark the beginning of a reversal…Canadian markets are closed Monday for the Canada Day long weekend while U.S. markets will be closed Wednesday for Independence Day…Canada Cobalt (CCW, TSX-V) continues to hit new highs, following through on yesterday’s 11-cent gain and 67-cent close with a 3-cent jump to 70 cents through the first 30 minutes of trading this morning…CCW, the first company to drill underground for high-grade Cobalt in Canada during this “battery arms” race, is also about to become the first company in the prolific Northern Ontario Cobalt Camp to produce a cobalt sulphate product…a pilot plant is being set up at the Castle mine site where bulk gravity concentrates will be produced and then sent to SGS Lakefield in Peterborough, Ontario, for conversion into Cobalt sulphate while Silver, Gold and Nickel can also be recovered through CCW’s proprietary Re-2OX process which has shown exceptional test results…in addition, each of the company’s first 3 underground drill holes has intersected visual Cobalt and Nickel mineralization plus native Silver which could run very high in grade given historical numbers from the mine…
7. Bitcoin prices hit a multi-month low today of $5,800 (U.S.)…bears are in solid near-term technical control amid a price downtrend in place on the chart, suggest more near-term sideways-to-lower price action…meanwhile, hundreds of thousands of investors in Ontario are putting money into cryptocurrencies despite a lack of understanding in a new asset class that includes Bitcoin, Ethereum, digital tokens and initial coin offerings (ICOs)…the Globe and Mail reported this morning that the Ontario Securities Commission found that 5% or 500,000 Ontarians surveyed own crypto-assets…in addition, results also showed an increasing number of Ontarians being approached about participating in initial coin or token offerings, exposing them to potential risks given the lack of familiarity with these types of investments…while Bitcoin and other digital coins are often associated with the Dark Web and ransomware, the number of legitimate uses for digital coins is growing…Canadians can now use them to pay on-line for flights and hotel bookings, as well as for furniture, movies, music, games and apps…although digital currencies are not backed by any country’s central bank, they enable individuals to transfer value to each other and pay for goods and services without the need for a middleman…crypto assets’ underlying markets, however, can include drug dealers and on-line hackers…
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June 28, 2018
7 @ 7:00
Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold hit a 12-month low this morning, dipping to $1,248…technical conditions are ripe for a near-term reversal…as of 7:00 am Pacific, bullion is off $1 an ounce at $1,251…not helping, Gold, of course, is the strength in the greenback…the Indian rupee has plunged to a new all-time low against the dollar…the strong dollar against the rupee is likely limiting Indian demand for Gold (priced in U.S. dollars on the world market)…Silver has slipped below $16 an ounce, off 4 pennies at $15.97…Copper is also down 4 cents at $2.99…Nickel is 5 cents lower at $6.68…Zinc and Cobalt are both steady at $1.32 and $35.83, respectively…Crude Oil is unchanged at $72.76 but technically remains very bullish while the U.S. Dollar Index is up slightly at 95.33….
2. The Gold ETF space just got more competitive, with investors now able to buy the lowest fee Gold ETF in the U.S. market – SPDR Gold MiniShares Trust (GLDM, AMEX) which began trading yesterday…“GLDM offers the lowest available total expense ratio among all Gold exchange-traded products, with a net and gross expense ratio of 0.18%. GLDM will be initially listed at a per-share trading price of 1/100th of an ounce of Gold, as represented by the LBMA Gold Price PM (U.S.),” according to the news release…
3. Oil prices have steadied in early trading today after U.S. Crude hit a new 3-and-a-half year high yesterday…supply remains tight with investors eyeing the potential for a big fall in exports from Iran due to U.S. sanctions…the United States has demanded that all countries halt imports of Iranian Oil from November, a hardline position the Trump administration hopes will cut off funding to the rogue regime which continues to act as a destabilizing force in the Middle East…
4. The U.S. economy slowed more than previously estimated in Q1 amid the weakest performance in consumer spending in nearly 5 years, but growth has since regained momentum on the back of a robust labor market and tax cuts…GDP increased at a 2% annual rate in the January-March period, the Commerce Department reported this morning in its 3rd estimate of Q1 GDP, instead of the 2.2% pace it reported last month…the economy grew at a 2.9% clip in the 4th quarter…Q1 numbers in recent years have tended to be weak…a $1.5 trillion income tax cut package, which came into effect in January, is seen spurring much faster economic growth in Q2, likely in excess of 4%, putting annual GDP growth on track to achieve the Trump administration’s 3% target…
5. The Dow is off 51 points as of 7:00 am Pacific…in Toronto, the TSX has slipped 83 points…BlackRock no longer sees the Bank of Canada raising interest rates at the conclusion of its July 11 meeting, after Governor Stephen Poloz struck a dovish tone during a highly anticipated speech yesterday…the shift echoes a similar change in sentiment among short-end traders, who are now pricing in roughly 50-50 odds of a rate hike, down from almost 80% just 2 weeks ago…the Venture, which has declined in 11 out of the last 14 sessions, is off another 5 points at 732 as it nears the top of a strong support band beginning at 730…a sign of the times – Canadians are headed off to college for a diploma in the production of cannabis…MYM Nutraceuticals (MYM, CSE) announced this morning that it has signed a partnership agreement to develop a training program for MYM’s employees assigned to the production of cannabis…the educational curriculum will be expanded and offered as a diploma (AEC) program as part of Sherbrooke College’s course offerings…
6. American Pacific (USGD, CSE), a new listing this past spring, has intersected 3 m grading 9.4 g/t Au 60 m north of previously drilled areas at its Tuscarora Property in Nevada, optioned from Novo Resources (NVO, TSX-V)…Tuscarora is an historic mining district 25 miles northeast of the Carlin trend, 14 miles southwest of the Jerritt Canyon deposit, and 30 miles east-northeast of the Midas deposit…more results are pending from recently completed Phase 1 drilling…Phase 2 will be start later this summer and the company still has $2 million cash in the bank with only 32 million shares outstanding…North American Nickel (NAN, TSX-V) has commenced its 2018 exploration program at its 100%-owned Maniitsoq Nickel-Copper-Cobalt-PGE Project in southwest Greenland…up to 12,500 m of drilling is planned as well as borehole electromagnetic (BHEM) surveys…that’s the good news…the bad news is, NAN has allowed its share structure to get wildly out of hand with nearly 800 million shares now outstanding…probably time for a rollback this year, whether they hit at Maniitsoq or not…Marathon Gold (MOZ, TSX) has arranged an $8 million bought deal financing through a combination of hard dollar (85 cents) and flow-through shares ($1.05)…Mountain Province Diamonds (MPVD, TSX) has generated total proceeds of $40 million CDN, a new high for the company, from its recently completed 5th diamond tender sale of 2018…
7. The drill is now turning at Aben Resources‘ (ABN, TSX-V) Boundary North zone discovery at its 100%-owned 230 sq. km Forrest Kerr Gold Project in the northern part of the Eskay Camp…Aben’s 2018 program will encompass at least 5,000 m of diamond drilling in approximately 18 holes…the initial focus will be to expand the high-grade precious metal mineralization discovered last summer at Boundary North, located near the center of the Forrest Kerr Project…3 separate drill holes, collared from the same drill pad, pierced a near-surface high-grade zone of Gold-Silver-Copper mineralization, in addition to broad intercepts containing Gold bearing quartz veins…based on last year’s drilling, field work and historic drilling, the company believes this mineralized zone is trending and open to the northeast, the southwest and at depth…
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June 27, 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 $1,254 and $1,261 so far today…as of 7:00 am Pacific, bullion is off $5 an ounce at $1,254…Silver has slipped 16 cents to $16.11…Copper is flat at $3.04…Nickel has climbed 6 cents to $6.75…Zinc is up 2 pennies at $1.34 while Cobalt is steady at $35.83…Crude Oil is strong again today, up more than $1 a barrel to $71.71…a supply disruption at the Syncrude facility in Fort McMurray may take more than 300,000 barrels off the market over the next month, while falling U.S. Crude stocks, uncertainty over Libyan exports and issues with Iran and Venezuela have put the bulls back in control following an OPEC meeting Friday that fell short of expectations in terms of production increases…the State Department has ordered companies who import Iranian Oil to reduce those imports to zero by November…the U.S. Dollar Index is up slightly at 94.73…the benchmark 10-year Treasury note has peaked for 2018 as trade worries, weaker emerging markets and a strong dollar cap the prior move upward in rates, according to Morgan Stanley…“We started to take note of a changing dynamic for global government bond markets in late April and early May,” the firm’s global head of interest rate strategy, Matthew Hornbach, said in a note to clients…“Not only do we think these factors will continue for a while longer, but we also think other factors will drive government bond yields lower. That’s right, 3.12% was it,” he added, referring to the 2018 peak in the 10-year Treasury yield hit in mid-May…the 10-year yield has fallen since then to 2.85% this morning…
2. Philippine miners are urging the government to lift a 6-year ban on new large-scale mining projects in the world’s #2 Nickel ore supplier after the state removed restrictions on fresh smaller ventures…in a memorandum, the Department of Environment and Natural Resources states that government approvals for mining developments would no longer apply to “smaller” projects…small-scale miners in the Philippines mostly dig for Gold, Silver and Chromite, but there is no official production data…mining is a deeply contentious issue in the resource-rich Southeast Asian nation…only 3% of 9 million hectares identified by the state as having high mineral potential are being mined…former Environment and Natural Resources Secretary Regina Lopez, the Poster Girl for anti-mining forces and climate change extremists, reiterated her radical stance in a text message to Reuters today…“The practical and wise choice would be to protect and nurture what we have instead of allowing extractive activities which benefit a few and jeopardizes the future of generations to come”…Lopez has been a sharp critic of Canada’s open-pit mining…
3. The Dow is 142 points higher as of 7:00 am Pacific…traders took comfort in the news that the White House won’t be looking to block companies with 25% or more of Chinese ownership from buying certain U.S. tech-related companies…instead, the government will rely on the newly strengthened Committee on Foreign Investment in the United States to deal with concerns about foreign purchase of sensitive domestic technologies, in Toronto, the TSX has added 55 points while the Venture has is off 2 points at 743…Cobalt 27 (KBLT, TSX-V) has closed its previously announced bought deal offering, raising aggregate gross proceeds of approximately $300 million from the sale of 30.8 million common shares at a price of $9.75 per share…net proceeds will be used, along with the company’s cash on hand, to finance the company’s acquisition of a $300 million (U.S.) Cobalt stream from Vale’s (VALE, NYSE) Voisey’s Bay mine…it’s safe to assume that Cobalt 27 is also closely watching recent developments in the Northern Ontario Cobalt Camp with heightened interest…Tinka Resources (TK, TSX-V) has pulled back in early trading after a 36% jump in the share price yesterday following news that hole A18-129 intersected exceptional grades of Zinc sulphide mineralization at West Ayawilca in a new setting for mineralization at Ayawilca…a mineralized interval of 10.4 m (close to true thickness) grading 44% Zinc occurs within a zone consisting of more than 90% Zinc sulphides (sphalerite)…this is the highest-grade Zinc intersection ever encountered at Ayawilca over a significant interval…TK is off 5 cents at 53 cents through the first 30 minutes of trading, slightly above new technical support between 50 cents and 47.5 cents…
4. Two drills are now turning at the high-grade Saddle Gold-Silver discovery at GT Gold’s (GTT, TSX-V) Tatogga Property in northwest British Columbia, about a 2-hour drive north of the Eskay Camp…the 2018 drill program will encompass a minimum of 18,000 m of diamond drilling in an estimated 56 holes, with potential for program expansion and drilling to mid-November…at Saddle South, geologists see excellent potential for expanding the high-grade near-surface Gold-Silver zone defined last summer through first-ever drilling…results included 51.3 g/t Au over 6.95 m, 14.75 g/t Au over 12.15 m, 20 g/t Au over 8.25 m, and 31.8 g/t Au and 1,141 g/t Ag over 3 m…holes will test possible extensions in all directions outward from the core area…at Saddle North, additional geophysics is being carried to prioritize drill targets at a Copper-Gold-Silver porphyry discovery made at the end of last year’s program with initial results that suggest strong similarities to the nearby Red Chris deposit…Tatogga covers 425 sq. km at the northern part of the infamous Golden Triangle and features its own triangle of potential deposit opportunities – Saddle South, Saddle North and Quash-Pass, all with excellent nearby infrastructure and on trend with the Red Chris mine to the southeast…
5. Endeavour Silver’s (EDR, TSX) infill drilling within the Terronera vein system on the Terronera Property in Jalisco state, Mexico, has consistently intersected high-grade Silver-Gold mineralization in 9 drill holes reported this morning…in the best intercept to date, TR11-4 returned 618 g/t Ag and 3.2 g/t Au over 21.2 m true width (25.1 oz per short ton Silver equivalent)…all 9 drill holes were targeted to fill gaps in the drill pattern, with the goal to upgrade up to 1 million tonnes of Inferred resources to Measured and Indicated resources so they can be included in the mine plan for Terronera, and to expand the Inferred resources at depth…hole TR11-4 is the deepest mineralized hole drilled to date…it intersected the mineralized zone at 430 m vertical depth and remains open at depth…Luis Castro, Vice President, Exploration for Endeavour Silver, commented, “These infill drill results should have a positive impact on our reserves and resources. The high Silver and Gold grades, excellent continuity of mineralization and significant exploration upside to expand the resources reinforce our view that Terronera has the potential to become the next key asset for the company”…the infill drill program is now 60% complete, with 6,000 m drilled out of 10,000 m planned…once the infill drill program is completed in September and full drill results are available, a revised resource estimate will be prepared, but the new results will not be in time to include in the updated Pre-Feasibility study anticipated to be released in August…EDR is up 3 pennies at $4.23 as of 7:00 am Pacific…it hit a new 52-week high of $4.35 last Friday…
6. Canopy Growth (WEED, TSX) is under mild pressure in early trading, down $2 at $39.07, after reporting a loss of $61.5 million or 31 cents per share for the quarter ended March 31 compared with a loss of $12 million or 8 cents per share a year ago…revenue for the quarter was a record $22.8 million, up from $14.7 million during the same period last year, as the company sold 2,528 kilograms and kilogram equivalents at an average sales price of $8.43 per gram… ..revenue for the fiscal year ended March 31 totalled $77.9 million,representing an increase of 95% over revenue of $39.9 million for fiscal 2017…analyzing marijuana company earnings is challenging because of accounting rules used in the agriculture industry that require companies to put a value on their pot plants before they are harvested, and approaches differ between producers on how to apply these guidelines…
7. With marijuana legalization in Canada less than 4 months away, the Bank of Montreal is elevating its exposure to the cannabis sector…in a first for the lender, BMO has agreed to a $200 million credit facility with Aurora Cannabis (ACB, TSX), providing the company with access to relatively cheap debt…the announcement has the potential to shift the balance of power in the marijuana business on Bay Street…until now, independent investment banks such as Canaccord Genuity, GMP Securities and Eight Capital have dominated underwriting and advisory work while Canada’s big banks largely sat on the sidelines…cannabis runs counter to federal laws south of the border, and the Big Six lenders were concerned about legal ramifications for their U.S. subsidiaries… they have also worried about the sector’s volatility…yet over the past few months, BMO started showing some interest, first planting its flag by co-leading a $200 million share sale for Canopy Growth in January…the bank has remained active since, and its new credit facility signals a significant step forward in its evolution – one large enough to put the independents on notice…
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June 26, 2018
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