Visit our comments section throughout the day and check for a possible additional post as well. BMR Morning Market Musings returns tomorrow.
1. Gold has steadied today after its biggest 1-day drop in more than 6 weeks yesterday, finding support from a retreat in the dollar and concerns about North Korea and Sunday’s elections in France…interestingly, holdings of the world’s largest Gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 11.8 tonnes yesterday in their biggest single day inflow since September despite Gold’s worst daily performance since March 7…the metal has some work to do today and tomorrow in order to extend its weekly winning streak to 6…Gold demand in India has picked up in recent days, ahead of the Akshaya Tritiya festival on April 28…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,281…the Dollar Index has dipped one-third of a point to 99.49 which is lending support to commodities today…
2. Russia’s central bank, seeking to diversify the country’s official reserves, posted an increase in its Gold reserves in March for the 3rd consecutive month…one of the world’s largest holders of bullion, the Russian central bank has been regularly buying Gold amid weaker Oil prices and Western sanctions imposed over Moscow’s role in the Ukraine crisis…Russia’s Gold reserves rose to 54.0 million troy ounces at the start of April from 53.2 million ounces as of March 1, the central bank reported today…
3. Base metals, which have weakened in April after a strong Q1, have rebounded modestly today…Societe Generale’s Robin Bhar commented, “Prices had gone up quickly throughout the year, helped by (mines at) Grasberg, Escondido and Cerro Verde, and that speculative excess needed to come out. Now we’re seeing some buying coming in because the 2nd quarter tends to be the strongest in terms of industrial activity.”
4. More chaos in Venezuela…General Motors (GM, NYSE) says Venezuelan authorities have illegally seized its plant in the industrial hub of Valencia and vowed to “take all legal actions” to defend its rights…GM described the takeover as an “illegal judicial seizure of its assets”…GM’s subsidiary in the country – General Motors Venezolana – has operated in Venezuela for nearly 70 years…GM said the seizure would cause irreparable damage to the company, its 2,678 workers, its 79 dealers and to its suppliers…the country’s economic crisis should come as no surprise but has hurt many other U.S. companies, including food makers and pharmaceutical firms…a growing number are removing their Venezuelan operations from their consolidated accounts…
5. Aphria (APH, TSX) has secured a $100 million raise, including a $75 million bought deal equity financing at $6.50 per share and $25 million in debt financing through a 5-year term loan…this is the first time Aphria has raised both debt and equity simultaneously. “Through this raise, we are not only looking at the needs of today, but what Aphria is going to need to do in the years ahead to dominate the market. When completed in 2018, our 4-part expansion plan is expected to supply more than 75,000 kg of high-quality cannabis at one of the lowest costs in the industry. We are well positioned to continue to provide shareholder value and meet the increasing consumer demand for medical and recreational marijuana,” President and CEO Vic Neufeld…APH is off 28 cents at $6.72 as of 7:00 am Pacific, a drop of nearly 25% from its all-time high of $8.77 April 11…that puts the stock at its rising 50-day moving average (SMA) which has held as support since the summer of last year…
6. The Venture, trying to snap a 3-session losing skid that occurred on relatively light volume, is up 3 points at 822…high-flier First Global Data (FGD, TSX-V) is up 12 cents at 87 cents after announcing that it has partnered with LianLian Pay to launch a co-branded remittance service that enables Chinese living in the U.S. and Canada to make person-to-person international money transfers to China utilizing the social media messaging platform WeChat…in Toronto, the TSX has advanced 75 points while the Dow is 53 points higher through the first 30 minutes of trading…Dallas Federal Reserve President Robert Kaplan said today that 3 interest rate hikes this year remains possible but that the U.S. central bank has the flexibility to wait and see how the economy unfolds. “The median for three rate increases this year…is still a good baseline,” he said in an interview with Bloomberg TV. “If the economy develops a little more slowly, then we can do less than that and if the economy is a little stronger, we can do more than that.”
7. GT Gold (GTT, TSX-V) announced this morning that it has increased the size of its previously announced non-brokered private placement to $3.2 million (2.7 million shares at 32 cents per share)…closing is expected by early next week…GT was already fully funded for a 98-hole, 4,600-m Phase 1 drill program during June and July at its promising Saddle Gold prospect northwest of the Red Chris mine…Saddle features exceptionally high level Gold-in-soil anomalies across broad areas of upland, suggestive of strong discovery potential…GTT is up a penny at 35 cents in early trading…
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I was wondering when trump would start talking a harder line with us,well it has begun..
Comment by Laddy — April 20, 2017 @ 11:22 am
Interesting trading of CPO today, looks like .095 might be a bottom. I like this one at .10
Comment by Danny — April 20, 2017 @ 12:11 pm
What’s happening to CSR? Bit of a pull back here.
Comment by Dan1 — April 20, 2017 @ 12:15 pm
Maybe GGM is almost ready to run, just need to chew away at the big ask, we’ll see tomorrow.
Comment by Laddy — April 20, 2017 @ 12:53 pm
CSR looked good today, Dan1, closed up and at the high of the day at 0.25. Has a history of doing well on Fridays, or the last day of the trading week. My hunch is news next week.
Comment by Jon - BMR — April 20, 2017 @ 1:07 pm
I think that I mentioned FGD here back in December, but can’t remember. So I will try to remember that I am mentioning MOS here. Following in FGD footsteps.
I am writing a book “GGI comes to life”. Might have it done before GGI doubles. Then again, maybe NOT.
Comment by dave — April 20, 2017 @ 6:22 pm
BMR- is GGI planning any sort of promo come May/June apart from their experts talking? A good product is only worth something if other people know about it and want it. We are looking like we are a far ways away from the bullish $60 million market cap pre drilling call in January, and it would be nice if they maximized the exposure of their story. Just thought we’d see a better valuation by now…
Comment by johnz — April 20, 2017 @ 9:47 pm
I’m sure they will be pressing hard, Johnz. The key is for the VTEM to kick in, that’s the catalyst that gets the ball moving, and once that it’s in motion a lot of things can be triggered. While the last number of weeks have been relatively quiet on the market side, I suspect there has been much going on behind the scenes and that will become more apparent soon enough. Keep in mind, NO stock in this entire district is moving right now which actually makes it the best time to accumulate unless you prefer chasing at higher prices. GGI has the most obvious potential to move first, especially if they hit us with the news we want to hear imminently.
Comment by Jon - BMR — April 21, 2017 @ 3:54 am
Don’t know exactly how many tons GGI is talking about when they say large tonnage but if they were to find 10 or 12 million tons of the grade found 50 years ago what kind of market cap would be reasonable?
Comment by Ginger or Mary Ann — April 21, 2017 @ 4:19 am
Cxo taking it on the chin, wow! Nothing coming from management so far. Approaching load up zone Jon and John
Comment by Greg — April 21, 2017 @ 5:56 am
The pattern with CXO is constructive, Greg…resistance has been at the 200-day SMA, currently .32, while there has been superb support at the rising 500-day, currently .23. The 2 are pinching closer and the path of least resistance will be above the 200-day…once that occurs, it’s game on. Patience will win the day with these Heart of Gold Camp plays…when they start to move, investors won’t be able to get in fast enough…it’ll be a big-time scramble…
Comment by Jon - BMR — April 21, 2017 @ 6:25 am
10 million tonnes is sort of a magic number and can certainly be a mine-maker as a high-grade sulphide deposit, Ginger/Mary Ann…1 drill hole into massive sulphides, GGI explodes, and we know that massive sulphides do exist at the E&L..
Comment by Jon - BMR — April 21, 2017 @ 6:32 am
Thanks Jon!
Comment by johnz — April 21, 2017 @ 6:34 am
The Voisey Bay deposit known as Ovoid was 2.8% nickel but the overall deposits averaged 1.63% nickel, .85% copper, and .09% cobalt. The combined deposits totaled 141 million tons.
Diamond Fields (the stock that owned the deposits) was C$4.00 in November 1994; by May 1995 it was C$57.
According to an overlay posted over a GGI graphic, the Ovoid is dwarfed by the Q deposit of GGI and the grade is 4 – 8% nickel.
I was not a math major but those seem to be rocket fuel numbers.
Comment by Marshall — April 21, 2017 @ 6:57 am
GGI – COR hardly traded shares before their news. How fast can GGI get to a 50 million market cap. 3 days and no I’m not kidding. People will know about their story in the near future. I am very confident about this. how is that for a pump. No, I have not nor will not sell a share.
Comment by dave — April 21, 2017 @ 7:45 am
GGI – They’re having a sale at the moment… 15 cents.
Comment by Charles — April 21, 2017 @ 8:46 am
Dido to that Dave. I have been critical of the news flow and length of time it’s taking to conduct the VTEM but when you hold a significant amount of shares, it becomes very passionate when things don’t go fast enough. 🙂
Comment by Dan1 — April 21, 2017 @ 8:59 am
GGI – Marshall just to add to the diamonfield story since it’s fun….In September 1995 the share price was $96.00 ($24 after share split). And finally, on March 26th after a great bidding war, Inco announced a takeover bid of $4.5 Billion equivalent of $43.50 or $174 per share pre-split!
Now that’s a story – sweet dreams all.
Cheers, Foz
Comment by Foz1971 — April 21, 2017 @ 9:14 am
Foz- how many shares were outstanding? Or what was the market cap at buyout? Keepin on dreaming…
Comment by johnz — April 21, 2017 @ 12:08 pm