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How the Venture could really erupt leading into PDAC if it’s able to conquer certain key resistance…

Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,311 and $1,321 so far today…as of 7:00 am Pacific, bullion is up $4 an ounce at $1,316…Silver is relatively unchanged at $15.61…Copper has added 2 pennies to $2.80…Nickel has slid 5 cents to $5.52 while Zinc is 2 cents higher at $1.21…Brent Crude reached a new 2019 high this morning as OPEC-led supply cuts and the announcement of a higher-than-expected cut by Saudi Arabia this week encouraged investors…the international Oil benchmark pushed past $65 for the first time this year…OPEC, along with allies led by Russia, made voluntary production cuts beginning last month aimed at tightening the market…meanwhile, top exporter and de facto OPEC leader Saudi Arabia said Tuesday that it would cut over half a million barrels per day (bpd) more in March than the deal called for, sending prices surging…WTI has jumped 95 cents a barrel to $55.36 while the U.S. Dollar Index has edged up slightly to 97.10…U.S. consumer sentiment gained more than expected in early February…the University of Michigan consumer sentiment index rose to 95.5 this month from 91.2 in January, preliminary data showed…with a deadline looming, U.S. and Chinese negotiators will hold more talks in Washington next week aimed at ending a battle over Beijing’s technology ambitions…the announcement Friday came after U.S. Trade Representative Robert Lighthizer told Chinese President Xi Jinping that negotiators “made headway” in talks this week in Beijing…

2. Copper prices will surge over the next 6 years, peaking at $10,000 per tonne amid lack of supply and increasing demand for green technology, according to a just-released report from Capital Economics…“Constrained supply growth and surging demand from electric vehicles mean that we think that the price of Copper will rise by over 60%, to nearly $10,000 per tonne, by 2025…this rally is almost 3 times higher than consensus estimates,” Capital Economics‘ senior commodities economist Ross Strachan wrote…the supply deficit will continue to support higher prices until 2027, the report said…“A price of around $7,000 per tonne in real 2018 terms is needed to encourage enough new mines to balance the market.  Prices are currently around 15% lower. Moreover, even when investment decisions are made, it will typically take at least 3 years before production begins,” Strachan added…demand for Copper is set to increase in the next 2 decades, growing on average by 2.3% year, the report projects…

3. The economically illiterate Loony Left in New York just killed 25,000 high-paying jobs (average of $150,000 a year) in that state and they’re celebrating…in a statement issued yesterday, Amazon (AMZN,. NASDAQ) cited the lack of cooperation from certain elected officials as part of its reason to leave New York…“For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term,” the company said in a statement…Alexandria Ocasio-Cortez, the new darling of the whacky far left in the United States, and an outspoken opponent of the new Amazon headquarters, tweeted that “anything is possible,” taking a victory lap upon hearing the news…killing 25,000 high-paying jobs isn’t enough for AOC, however…her “Green New Deal”, supported by a growing number of Trump-hating Democrats, is an existential threat to America (and Canada), and reveals how “climate change” extremists have a much deeper agenda…the boogeyman of “climate change”  has been used all along as a means to an end, and the ultimate goal is to bring socialism to the United States and Canada (Canada is already halfway there)…

4. Canopy Growth (WEED, TSX) generated $97.7 million in revenue in the 3 months ended December 31, including its first sales of non-medical cannabis products, up from $21.7 million in the previous year’s fiscal 3rd quarter…the Ontario-based company recorded a loss from operations for the quarter, but turned a net profit due to gains on the fair value of its assets and liabilities…loss from operations was $157.2 million, compared with a loss of $26 million a year earlier…net income attributable to shareholders, including net gains on the fair value of its assets, was $67.6 million or 22 cents per basic share, up from $1.6 million or 1 cent per basic share a year earlier…“Our successful first full quarter with recreational sales in Canada reinforces our long held strategy of making meaningful investments early in order to secure market share,” stated Bruce Linton, Chairman & Co-CEO…“With a strong cash position, we added strategic assets and IP through acquisitions to accelerate the sophistication of our inputs with ebbu, and our consumer-facing outputs with Storz and Bickel.  The Canadian recreational cannabis market will be dominated in the long term by businesses delivering excellent products and consumer experiences.  Sales from the first wave of products and retail environments launched in the 3rd quarter demonstrate that we are capturing consumers’ attention”…Canopy’s international sales accounted for 16% of its medical revenues in the quarter…a particular focus was Germany, where the company sold 204 kilograms at an average price of $13.28 per gram…although Canopy has not started selling into the U.S., where cannabis remains illegal at the federal level, it is beginning to position itself to enter the market…after the passage of legislation in the U.S. removing hemp-derived cannabidiol from the Controlled Substances Act in December, Canopy announced that it would invest between $100 million (U.S.) and $150 million (U.S.) in an Hemp Industrial Park in the state of New York…in the fall, Canopy acquired a hemp-focused research firm in Colorado called Ebbu Inc. for more than $400 million (Canadian) in stock and cash…

5. The legal marijuana system in Canada is far from working properly yet, which should come as no surprise given the extent of government involvement…what a tangled web Trudeau has weaved – with inflated prices, bans on edibles, heavy regulation of cultivators and limits on private retailing, consumers continue dialling up their friendly neighbourhood dealer to avoid all that…according to Statistics Canada, government pot is still about 50% more expensive than the black market stuff that Trudeau insisted would disappear – that was his argument for legalizing marijuana, eliminating the black market…users may be willing to pay a premium for legality, but not nearly as many of them as Trudeau hoped…unlike their legal counterparts, Canada’s black market dealers have plenty of supply and continued demand…

6. The Dow has jumped 282 points through the first 30 minutes of trading…stocks are surging amid increasing hopes for a U.S.-China trade deal with equities on pace to post another solid weekly gain, the 8th in a row for the Dow and the NASDAQ and the 7th straight for the S&P 500…in Toronto, the TSX has gained 86 points….Pretium Resources (PVG, TSX) is under pressure in early trading after reporting Q4 full-year 2018 financials…investors still see under-performance on the operations side, even though the company’s all-in-sustaining cost for the 2nd half of 2018 was $745 (U.S.) per ounce, well within guidance, while it has also posted positive adjusted earnings for 6 quarters in a row – every quarter since the start of commercial production…Imperial Metals (III, TSX-V) has enjoyed its best back-to-back volume sessions since September with the share price hitting its best level ($2.16) yesterday in nearly 5 months…New Gold (NGD, TSX) remains under pressure after the company released disappointing 2019 guidance in the eyes of investors yesterday, though new President and CEO Renaud Adams may have deliberately set the bar low in order to exceed expectations through the balance of the year…the Venture is up 2 points at 611 as of 7:00 am Pacific…the Venture’s EMA(20) has been providing support this week during a healthy minor pullback that helps set the stage for what should be a strong finish to the month…the first reversal to the upside since the 2nd half of 2017 has occurred in the SMA(50), a very reliable trend indicator for the Index…

7. The Globe and Mail reported this morning that SNC-Lavalin (SNC, TSX) has been one of the leading recipients of support from the federal export agency, obtaining at least $2 billion in loans over the past 2 decades, and possibly billions more…a triple-bylined item led by Geoffrey York says that much of the support – at least $800 million in loans and as much as $1.7-billion – was provided to SNC after news broke of an RCMP investigation into alleged corruption at the company in 2011…since then, the engineering company has faced corruption allegations in Canada, 2 Asian countries and 3 African countries….Federal prosecutors charged SNC in 2015 with bribery and corruption in connection with its dealings in Libya…a Globe analysis shows that SNC has received billions of dollars in federal support in 19 separate loans from Export Development Canada…SNC joins companies such as Enbridge and Brookfield as the top recipients of financial aid from the federal export agency over the past 18 years…citing “commercial confidentiality,” EDC refuses to disclose the exact amount of each of its transactions…the EDC has provided $2 billion to $4.3 billion in loans to SNC-Lavalin or its customers since 2002…when will Canadian politicians start doing things differently?…

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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,302 and $1,313 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,311…Silver is unchanged at $15.53…Copper has added a penny to $2.78…Nickel has slid 9 cents to $5.56 while Zinc is off a penny at $1.18…Crude Oil has retreated 44 cents to $53.46 while the U.S. Dollar Index has lost one-fifth of a point to 97.04…something to keep an eye on – lawyers for Canada’s federal government and its supporters are to make their case today in a Regina court on why they believe Ottawa has the legal power to impose a carbon tax on Saskatchewan…Ottawa says it can put a price on carbon because climate change and the regulation of greenhouse gas emissions are a “national concern”, and that a section of the Constitution states it can pass laws for the peace, order and good government of Canada…groups that support that position in Saskatchewan’s court challenge of the carbon tax include, of course, the British Columbia government, environmentalists, Indigenous groups and the Canadian Public Health Association…meanwhile, former Liberal Cabinet minister Scott Brison has had enough of the socialist-leaning Trudeau government…he has fled to the private sector, hired by BMO Capital Markets as Vice-Chair, Investment and Corporate Banking…his primary responsibilities will include senior client coverage and business development…

2. Disappointing U.S. economic data this morning put minor pressure on the dollar, allowing Gold to rebound from its overnight lows…retail sales for December were down 1.2% from November, weaker than the expected rise of 0.1%…the reading was actually the steepest monthly decline in nearly a decade…meanwhile, the Producer Price Index (PPI) report for January showed a fall of 0.1%, short of expectations of a gain of 0.1%…this continues a string of non-problematic inflation data coming from the major world economies which plays into the hands of U.S. monetary policy doves who want to see the Fed hold off on raising interest rates, and maybe even lower them a bit in 2019…Barclays and J.P. Morgan have just reduced their estimates on U.S. economic growth in the final quarter of 2018 following this morning’s retail sales data…

3. China has reported exports and imports data for January that easily topped expectations, news that comes as Beijing’s trade dispute with the U.S. and other factors lead investors to worry that China’s economy – long an engine of global growth – may be facing a sharp slowdown…those concerns were compounded last month when China’s customs data showed exports and imports both fell surprisingly in December…January’s official data, however, painted a much more optimistic picture about Asia’s largest economy…dollar-denominated exports for the month rose 9.1% from a year ago, according to Chinese customs data, vs. an expected contraction of 3.2% from a year earlier…January dollar-denominated imports, meanwhile, fell 1.5% on-year, but that was far better than estimates of a 10% decline from a year earlier…China’s overall trade surplus was $39.16 billion in January…that easily topped the $33.5 billion expected…December’s trade surplus was much higher at $57.06 billion…China’s closely watched trade surplus with the U.S. fell to $27.3 billion in January from $29.87 billion in December…data from China during the first 2 months of the year must be treated with caution due to business distortions caused by the timing of the week-long Lunar New Year public holiday, which fell in mid-February in 2018 but started on February 4 this year…

4. 2018 financials and 2019 guidance this morning from New Gold (NGD, TSX)…the company, in the midst of an operational turnaround, reported a small adjusted net loss for 2018 ($10.6 million U.S.) on annual production of 315,483 ounces of Gold and 20.8 million pounds of Copper…total revenues were $604.5 million, and the company’s current liquidity of nearly $400 million secures the implementation of its 2019 operational plan…significantly, New Gold’s adjusted net earnings from continuing operations for the 4th quarter, excluding a couple of large impairment charges, were $22.7 million, or 4 cents per share, a turnaround from a 4-cent-per-share loss in the same period a year ago…New Gold expects to produce between 300,000 and 335,000 ounces of Gold in 2019 and 75 to 85 million pounds of Copper…the Rainy River mine is expected to deliver another year of production growth that builds on the progress achieved in the final 4 months of 2018…during 2019, the key objective will be on optimizing open-pit mining productivity and mill performance in order to achieve targeted availability, throughput and recoveries…during the year, the company is fully committed to completing all remaining construction in order to best position the operation for efficient and sustainable mining and long-term success…”2019 is a pivotal year for the company as we reposition New Gold for long-term success,” stated Renaud Adams, new President and CEO.  “In 2019, we will work to establish Rainy River as a profitable and sustainable mining operation and renew our commitment to unlocking the potential of the New Afton C-zone. We will return our focus to advancing organic growth initiatives and launch strategic exploration programs at both assets with a view of enhancing the quality of our resource base and extending mine life.  Our available liquidity position secures the execution of our 2019 operational strategy that is focused on optimizing both operations in order to deliver increased margins and positive future cash flow streams that will drive long-term, sustainable shareholder value”…NGD is off 31 cents at $1.32 as of 7:00 am Pacific as the stock stages a healthy retreat to its rising 50-day moving average (SMA) after a doubling of the share price from late October…

5. Hecla Mining (HL, NYSE) has reported the highest Silver, Gold and Lead reserves in its 128-year history…for the end of 2018, the company lists record Proven and Probable Gold reserves of 2.85 million ounces, an increase of 26% from 2017…Proven and Probable Silver reserves are 191 million ounces, an increase of 8%…Lead Proven and Probable reserves have hit 774,000 tons, an increase of 5% while Proven and Probable Zinc reserves are 931,730 tons, representing an increase of 11% – the highest in nearly a decade…“We have achieved this while the industry has generally seen declining reserves and we were able to use among the most conservative price assumptions in the industry because of the strong economics of these deposits,” stated Phillips S. Baker, Jr., President and CEO…“It is particularly important that this growth comes at Greens Creek and Casa Berardi, who generate approximately 85% of our revenue and most of our operations’ free cash flow. These mines are Hecla’s best”…

6. The Dow has lost 176 points through the first 30 minutes of trading, led by losses in Coca-Cola…in Toronto, the TSX has gained 39 points, thanks in part to strength in Gold…Kirkland Lake Gold (KL, TSX) will release its financial and operating results for the 4th quarter and full-year 2018 after the market close a week from today, February 21…the company will then host a conference call to review the results the next morning (Friday, February 22, 2019) at 5:00 am Pacific…rumors continue to swirl around Imperial Metals (III, TSX) which touched a new multi-month high of $2.16 in early trading…the Venture is 2 points lower at 608…activity in the Gowganda Gold play remains brisk as iMetal Resources (IMR, TSX-V) has been one of this week’s top gainers and volume leaders, while Canada Cobalt (CCW, TSX-V) immediately to the east has broken out technically as well…on the CSE, Tidal Royalty (RLTY, U, CSE) has just come out with important news (see below)…the stock will remain halted until the CSE has reviewed and approved the proposed transaction with a privately-held major U.S. multi-state operator…Chemesis International (CSI, CSE) continues to show signs of gaining traction above key resistance at $2…

7. Tidal Royalty (RLTY.U, CSE), a BMR favorite in the cannabis sector, has signed an LOI to merge with MichiCann Medical Inc., a privately-held cannabis retailer and producer, in a deal that would create a major U.S. multi-state operator worth an estimated $800 million (U.S.)…the deal will combine Toronto-based Tidal Royalty’s cannabis portfolio assets in several U.S. states, including Massachusetts and California, with those of MichiCann, which operates in Michigan under the Red White & Bloom trade name…MichiCann owns or controls 11 medical cannabis dispensaries in Michigan and is in the final stages to acquire another 11 shops, as well as 3 indoor cultivation facilities in the state, according to MichiCann Medical CEO Brad Rogers, who will be the CEO of the combined company…“Our acumen in selling cannabis is second to none,” Rogers said in a phone interview with BNN Bloomberg…“We’re looking to build and scale an operation not just in Michigan but throughout the United States”…to complete the merger, Tidal Royalty will consolidate its issued and outstanding shares on an 8:1 basis…Tidal will then issue 2.08 of its consolidated shares for every one of MichiCann shares…MichiCann shareholders will own 80% of the combined company, which will take on the Red White & Bloom moniker, while Tidal will own the remaining 20%…bottom line is that Tidal is expected to have a significantly higher valuation than the $68 million it currently has (last traded at 26 cents before Monday’s pre-market halt)…

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