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

1. Gold has traded between $1,307 and $1,316 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,314…Gold prices are trading near session highs following weaker-than-expected preliminary U.S. manufacturing and service sector sentiment data…the IHS Markit flash manufacturing PMI for March declined to 53.5 from February’s reading of 53…the report noted that sentiment within the manufacturing sector is at its lowest point in 21 months…the data pulled 10-year U.S. Treasury bond yields to fresh multi-month lows of 2.443%, causing the yield curve measuring the gap between 3-month Treasury bills and 10-year yields to invert for the first time since 2007…Silver is relatively flat at $15.42…Copper, Nickel and Zinc are all off slightly at $2.90, $5.87 and $1.29, respectively…Crude Oil has pulled back 93 cents a barrel to $59.05 while the U.S. Dollar Index has gained another one-fifth of a point to 96.54…the greenback is holding up, despite a dovish Fed, because of weaker economies and currencies elsewhere…the dollar is the best of a bad lot, in other words…in the euro zone, manufacturing activity has fallen to its lowest level since April 2013…

2. Battery metals tracker Adamas Intelligence says Chinese electric vehicle manufacturers deployed 253% more Nickel in passenger EV batteries in January this year compared to 2018…the Dutch-Canadian research company, which tracks EV registrations and battery chemistries, in more than 80 countries says the jump is due to an ongoing shift from Lithium iron phosphate (LFP) to Nickel-Cobalt-Manganese (NCM) cathodes…first generation NCM batteries contained around a third Cobalt with a chemical composition of 111 – 1 part Nickel, 1 part Cobalt and 1 part Manganese, but NCM batteries with higher Nickel content (622 and 523 chemistries) have become standard in China…according to Adamas, China is now the the largest market for passenger EV battery Nickel, ahead of Japan and the U.S., which were the 2 largest markets in January 2018…Nickel used in car batteries jumped 88% in Germany and 54% in the U.S. year-on-year…the EV boom in China is only accelerating, and Adamas says despite being a seasonally slow month in January 2019, 3.27 GWh of passenger EV battery capacity was deployed in the world’s largest car market, an increase of 439% over January 2018 levels…even more remarkable, from January 2018 through January 2019, the sales-weighted average passenger EV battery capacity in China increased by a staggering 95%, from 14.9 kWh to 29.1 kWh, meaning that the average EV registered in China in January 2019 contained nearly double the mass of battery metals/materials as the year prior…the price of Nickel is up more than 20% in 2019 as stocks held in warehouses around the world registered with the London Metal Exchange fall to multi-year lows…

3. Investors in Canada’s debt market are becoming more convinced that the next interest-rate move from the country’s central bank will be down, with bonds due in more than a decade now yielding less than cash…an investor has to be willing to lend for around 14 years in order to get more than the 1.75% rate that the Bank of Canada currently has as its overnight benchmark…while Canadian bonds due in 2033 yesterday yielded around 1.79%, securities maturing in June 2029 offered a rate of just 1.67%…local yields have fallen in recent weeks, spurred lower by weakening economic data, a more downbeat assessment from the Bank of Canada and a global rally in bonds…Wednesday’s dovish shift by the U.S. central bank and the market’s more downbeat view on prospect’s for Canada’s southern neighbour added momentum in sovereign bonds and also provide further support for the idea that policy makers in Ottawa will need to cut rates…the recovery in Oil since the turn of the year and optimism surrounding U.S.-China trade talks had some market strategists betting the BOC wasn’t done tightening, after 5 hikes since mid-2017…however, deteriorating economic data have traders shifting gears, sending the probability of a rate hike by July below 15% from about 26% a month ago…

4. Germany’s 10-year government bond yields slipped into negative territory on Friday for the first time since October 2016…hitting a low of -0.001%, the 10-year bond yield’s downturn comes amid rising concern about the direction of the euro zone’s largest economy, with a string of weak data in recent months fueling speculation that Germany could be heading for recession…the move in bond yields appears to be primarily due to the Brexit scare and further softening of the export outlook in manufacturing PMIs…IHS Markit’s PMI survey published this morning revealed that Germany’s manufacturing sector contracted for the 3rd consecutive month in March, with output growth nearing a 6-year low…

5. The Dow has tumbled 230 points after the first 30 minutes of trading…in Toronto, the TSX has fallen 107 points…Paulson & Co will not support Newmont Mining’s (NEM, NYSE) planned $10 billion (U.S.) takeover of rival Goldcorp (G, TSX; GG, NYSE) as the premium offered is unjustified, the investor said in a letter yesterday…Paulson & Co holds 14.2 million Newmont shares for 2.7% ownership of the company, making it one of its biggest shareholders…the Venture, riding a 5-session wining streak, is off 1 point at 640…buy the dip, as they say – the technical and fundamental underpinnings of this market are looking better than they have in a long time…Nextleaf Solutions (OILS, CSE) had a strong debut on the CSE yesterday, closing at 40 cents on volume of nearly 3 million shares…it’s up again this morning on strong volume in early trading…Nextleaf is an extraction and processing technology company that has developed a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of producing purified cannabinoid distillate, a tasteless, odourless cannabis concentrate best suited for infusing premium value-added products….

6. Supreme Cannabis (FIRE, TSX), approaching its 2018 highs, announced this morning that it expects its previously announced Oil products line to be introduced to adult-use consumers in select Canadian markets starting next month…Supreme plans to initially ship oil products to select markets before expanding distribution of its cannabis oil line to additional provinces which is expected by the end of June…each bottle will contain a proprietary blend of highly purified cannabis oils and terpenes derived from plants grown by 7ACRES…“Premium oils require premium cannabis,” stated Supreme CEO Navdeep Dhaliwal…“Our formulation will leverage supercritical CO2 technology to produce a high-quality, purified cannabis oil which we reformulate with the naturally occurring cannabis terpenes from our 7ACRES high-end cannabis.  The result is a unique, plant-based cannabis oil that carries the award-winning qualities of our flower into an oil product for consumers looking for a premium cannabis oil experience”…

7. The socialist government of British Columbia, the Green Monster, is so focussed on its anti-Oil agenda, it hasn’t had time (and won’t have time) to wreak havoc on the mining and exploration sector like it did in the 1990’s…keep in mind, the Green Monster has already stated emphatically that it will use “every tool in its toolbox” to kill the Trans Mountain Project…here’s what the government is up to now:  The B.C. Court of Appeal is currently hearing a reference case that asks whether the government can amend its Environmental Management Act to create a permitting system for companies that increase the amount of heavy Oil they are transporting through the province…B.C. has argued the amendments are not intended to block the Trans Mountain pipeline, but rather to protect the environment from spills and require companies to pay for damages…however, the government’s real intent is very clear for any reasonable judge to see – Trans Mountain will be directly and significantly impacted by the proposed legislation…the motive is simply to obstruct the expansion…Trans Mountain is the only pipeline that transports liquid petroleum to the West Coast and the only pipeline to which the legislation would apply…meanwhile, gutless politicians are silent as 2 Wet’suwet’en Nation hereditary leaders plan to construct a protest camp to oppose TransCanada’s Coastal GasLink pipeline project, setting the stage for a new blockade in the northern part of the province…the Laksamshu clan, 1 of 5 clans within the Wet’suwet’en Nation, says, “We will be building permanent buildings on our territory in an effort to assert our precolonial rights and jurisdiction on our lands,” according to a quote in The Globe and Mail…

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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 $1,310 and $1,321 so far today following yesterday’s dovish Fed announcement…as of 7:00 am Pacific, bullion is off $1 an ounce at $1,312…the yield on the benchmark 10-year Treasury note dropped to its lowest level since January 2018 this morning, a day after the Federal Reserve held interest rates steady and suggested no further adjustments will be needed for the rest of the year…downward pressure on U.S. yields continues to support the view that the greenback will weaken year which of course is positive for Gold, the broader commodity sector and the Venture…Silver is flat at $15.40…Copper is up a penny at $2.95 while Nickel and Zinc are unchanged at $5.95 and $1.31, respectively…Crude Oil has gained 12 cents a barrel to $60.11 while the U.S. Dollar Index has recovered one-quarter of a point to 96.16…the greenback is still the best currency of a bad lot…with the U.S. and China preparing for a fresh round of face-to-face trade negotiations, President Trump says the U.S. expects to keep tariffs on Chinese goods in place for a “substantial period of time” even after a deal, something that has apparently rattled the Chinese…“We have to make sure that if we do the deal with China that China lives by the deal,” Trump told reporters yesterday…administration officials have talked of removing tariffs in stages as Beijing shows that it has carried out parts of a deal, and reimposing them if China later backtracks…the details of a tariff rollback are the subject of ongoing negotiations, as are questions about enforcement, technology transfer, cross-border data flows and other issues…

2. “Mission accomplished”:  Yesterday’s Fed announcement revealed that the central bank now believes its monetary policy is back to “normal”…this should be sweet music to the ears of Gold bugs…if this is normal, then the Fed has precious little ammunition for when economic conditions again turn abnormal…since 2015, the Fed has been “normalizing” monetary policy by raising interest rates and shrinking its bondholdings from levels intended for a weak, postcrisis economy…yesterday the Fed declared the process all but done…Fed officials see no more rate increases this year and perhaps 1 next year, and they will stop shrinking the balance sheet this September…yet by any historical benchmark, this “normal” stance of monetary policy is extremely stimulative…the federal-funds rate, at between 2.25% and 2.5%, is just 0.25% when adjusted for long-term expected inflation…by comparison, the real rate was 2.75% at the end of the Fed’s last tightening cycle in 2006, and 4% at the end of the prior cycle in 2000…and the Fed will still hold more than $3.5 trillion in bonds in September, equal to 17% of GDP, compared with 6% in 2006…

3. Great Bear Resources (GBR, TSX-V) has drilled 7.25 m of 30.2 g/t Au, including 1.5 m @ 131 g/t, in drill hole DHZ-031 in the Hinge zone of its Dixie Project in the Red Lake district…drilling continues to test along strike and at depth of the DHZ…some of the DHZ drill holes also cross the adjacent DL zone (Dixie Limb) at shallow depths and hence Great Bear is able to test both zones with the same drill holes…DHZ-031 intersected other significant Gold bearing quartz veins along a 141-m wide zone of increased quartz veining and alteration in the DHZ vein system including 4 m @ 11.7 g/t and half a meter of 60.7 g/t…the high grade intercepts in DHZ-031 occur 20–60 m west of previously reported drill hole DHZ-023 which included 3.40 m of 31.6 g/t Au…26 of 42 drill holes (62%) completed by Great Bear along 240 m of strike length of the DHZ that has been drilled to date have intersected intervals containing greater than 15 g/t Gold…results of shallow drilling of the Dixie Limb zone include 39.2 m @ 2.07 g/t starting at approximately 25 m depth, including 9.2 m of 5.4 g/t which includes 0.70 m of 20.5 g/t…Chris Taylor, President and CEO of Great Bear said, “The Hinge Zone continues to rapidly expand as we keep stepping out along strike and at depth.  In our most recent results, drill hole DHZ-031 intersected a Gold-bearing quartz vein network consisting of multiple high grade veins within a 141 m (462 foot) wide drill interval.  All current drilling is designed to cross the Hinge Zone at approximately right angles, meaning the interval widths are approximate true widths.  The vertical depth of the DHZ-031 intervals ranges from approximately 60 to 190 m from the surface.  The scale and strength of near-surface multi-veined gold mineralization at the Hinge Zone continues to impress”…

4. NexGen Energy (NXE, TSX) has appointed former Saskatchewan premier Brad Wall to the company’s board of directors…CEO Leigh Curyer commented, “On behalf of the Executive and Board of NexGen we are very pleased to welcome Mr. Brad Wall.  Mr. Wall brings to NexGen extensive national energy policy, political and economic experience and has demonstrated a very strong commitment, results and advocacy in the best interests of Saskatchewan and Canada over his entire career.  Mr Wall in his capacity as a director to NexGen is joining a team dedicated to developing a Canadian energy project that will deliver significant generational benefits to Saskatchewan and Canada and set new standards in responsible project development”…NXE is up 3 pennies on the news at $2.30 as of 7:00 am Pacific…

5. Canopy Growth (WEED, TSX; CGC, NYSE) has acquired AgriNextUSA, a hemp enterprise led by CEO Geoff Whaling that has been at the forefront of hemp advocacy and building a vibrant hemp sector in the United States…the acquisition will accelerate Canopy Growth’s entry into key American jurisdictions as regulations surrounding the full use of hemp as a crop begin to be implemented, thanks in part to the recently enacted 2018 U.S. Farm Bill…”The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential,” said Bruce Linton, co-CEO and Chairman of Canopy Growth…“Our significant investments, acquisitions and compilation of talented leaders such as Geoff will position us for swift expansion throughout the United States.  By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products”…Hemp has the potential to disrupt several prominent industries: advanced materials, cosmetics, energy, fibre and textiles, food and protein production and the health and wellness sectors. In addition, hemp is a natural source of CBD, the non-intoxicating component of cannabis that can be used for health and wellness purposes in jurisdictions where legally permitted…

5. The Dow has added 53 points after the first 30 minutes of trading…in Toronto, the TSX is 13 points higher…streaming company Wheaton Precious Metals (WPM, TSX, NYSE) reported lower adjusted earnings in the 4th quarter late yesterday as revenue fell year-on-year due on weaker metal prices and lower Silver production…however, Wheaton generated almost $110 million in operating cash flow in Q4, bringing total operating cash flow for the year to over $475 million thanks to production of over 370,000 ounces of Gold, 24 million ounces of Silver and 14,000 ounces of Palladium, all in excess of the company’s guidance…in addition, Wheaton had record Gold production and sales in 2018…WPM has a great-looking chart with the stock breaking out to levels not seen since 2016…the Venture is off a point at 637 after hitting a new 2019 high yesterday…Nextleaf Solutions (OILS, CSE) has commenced trading this morning on the CSE…Nextleaf is an extraction and processing technology company that has developed a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of producing purified cannabinoid distillate, a tasteless, odourless cannabis concentrate best suited for infusing premium value-added products….”I firmly believe Nextleaf’s intellectual property portfolio for improving the purity and yield of cannabinoids obtained through the extraction and purification of cannabis biomass will be extremely impactful with the global legalization of cannabis and rapidly growing demand for oils and derivative products in medical and adult-use markets,” said CEO Paul Pedersen…OILS is at 34.5 cents on strong volume after 30 minutes of trading…

7.  Another great example of the risks that exploration and mining companies face these days: Discussions between Lupaka Gold (LPK, TSX-V) and community leaders from the nearby community of Paran have been abandoned by the President of Paran, according to Lupaka President and CEO Will Ansley…“Once again Paran has resumed their illegal demonstration, preventing the company from accessing the Invicta Gold Development Project.  In doing so Paran has failed to honour the agreement signed earlier in March, which included the commitment to provide continuous and safe access to Invicta as well as the commencement of a dialogue process.  We are very disappointed in Paran’s decision to abandon our recent agreement, including the cancelation of the established dialogue table.  We have worked very hard to engage with Paran, in order to find a long-term solution that meets the needs of all of our community partners.  Unfortunately, they have demanded that all social and economic benefits from Invicta should go exclusively to the community of Paran, which contradicts the existing community agreements that the company has in place with Lacsanga and Santa Domingo. Lupaka has put forward alternate proposals, including investment strategies, however Paran remains adamant that all benefits must accrue solely to their community. When we insisted Lupaka will continue to honour the company’s existing community agreements, the President of Paran abruptly left the dialogue table and reinstated the blockade”…

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