China is “quite serious about living up to the commitments they have made regarding North Korea,” U.S. Commerce Secretary Wilbur Ross stated this morning in an interview on CNBC. The order for mainland lenders to stop doing business with Pyongyang “is a logical next step in the sanctions, and a very important one…Chinese commercial banks had been a big route for facilitation of trade to North Korea so the fact that the PBOC has put out a taboo, that’s a very big deal,” the Commerce Secretary declared…
Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,296 and $1,282 so far today as the greenback continues to rally, hitting a 5-week high…as of 7:00 am Pacific, bullion is off $9 an ounce at $1,284…Silver is steady at $16.76…Copper is up 2 pennies at $2.91…Nickel is flat at $4.74…Crude Oil has gained another 20 cents to $52.07 while the U.S. Dollar Index has climbed nearly half a point to 93.42…the Dollar Index has been due for a strong rally but will
2. Gold prices remained on the defensive Wednesday, extending overnight losses slightly, after a Commerce Department report showing that orders for U.S. durable goods rose by 1.7% to $232.8 billion during August.
The headline figure in the report was modestly above consensus expectations compiled by various news organizations, which called for durables to be up by somewhere between 1% and 1.5%.
2. Brent hit its highest settlement since July 2015 on Monday, closing at $59.02 a barrel, while U.S. crude futures posted their largest one-day advance of the year, to $52.22 a barrel.
The steady increase in Brent in recent weeks has been driven in part by renewed market confidence in the Organization of the Petroleum Exporting Countries’ plan to cut production and bring down the global supply overhang, as well as by fresh data from the International Energy Agency showing rising global demand growth. Investors and analysts will be looking ahead to weekly data from the EIA Wednesday afternoon regarding U.S. crude inventory levels.
2. The U.S. Dollar Index has rallied another one-third of a point to 92.89...the greenback is benefiting from weakness in the euro which suffered its worst day of the year yesterday as investors fretted over the uncertainty created by Sunday’s elections in Germany and how the outcome could make closer euro zone integration more difficult…meanwhile, markets will be closely monitoring a speech (“Prospects for Growth: Reassessing the Fundamentals“) by Federal Reserve Chair Janet Yellen at a luncheon in Cleveland today…4 other Fed officials are also speaking today…yesterday, Minneapolis Fed President Neel Kashkari said there was no need for the Fed to raise interest rates further as he sees no evidence recent weak inflation data will improve anytime soon…
3. U.S. consumer confidence remains strong…the Conference Board just reported that the September consumer confidence index fell just slightly to 119.8 (within expectations) from a revised 120.4 in August…the consensus estimate from most news organizations called for a headline index reading of around 119.5 to 120.2…the index rose in July and August to 5-month highs…the measure of consumer confidence has been in a steady uptrend from the lows hit in 2009 but turned particularly strong late last year…
4. Another example of the failures of Big Government and socialism – Brazil tomorrow will begin reversing what industry officials say was a costly and ultimately disastrous decision a decade ago when the government set aside billions of barrels from the Western Hemisphere’s largest Oil discovery in 30 years for its state-run Oil firm at a time when deep-pocketed foreign companies were clamoring to invest…as a result, Brazil’s Oil output today is less than half what industry officials say it should be and all of Brazil is feeling the impact. “We are trying to put the country back on track,” Energy Minister Fernando Coelho told an Oil conference in Houston earlier this year…Petrobras, which produces the vast majority of Brazil’s Oil, has been hobbled by years of mismanagement and corruption that have forced it to slash jobs and production targets…saddled with the largest pile of debt in the global Oil industry, Petrobras plans to invest only $15 billion a year over the next half-decade, less than the cost of servicing its loans and just one-third of 2013 levels…
5. The Dow is up 64 points as of 7:00 am Pacific with the technology sector rebounding today…news services report that President Trump will call today for slashing tax rates on businesses and individuals as part of a new tax plan that is likely to offer few details about how to pay for the cuts without expanding the federal deficit…hammered out over months of talks among Trump aides and top Republicans in Congress, the plan to be unveiled at an event in Indianapolis is expected to propose a 20% income tax rate, a new 25% tax rate for pass-through businesses such as partnerships, and a reduced 35% top income tax rate for individual Americans…
the TSX has slipped 22 points while the Venture has slipped 2 points to 780…Garibaldi Resources (GGI, TSX-V) is threatening to hit a new high, up 4 cents at $1.85…meanwhile, Nickel Mountain neighbor Metallis Resources (MTS, TSX-V) hit a new high of 98 cents yesterday in the wake of the closing of a $1.3 million financing as the company ramps up drilling at its Kirkham Property…Pure Gold Mining (PGM, TSX-V) has intersected the down plunge extension of the South Austin deposit approximately 240 m below any previous mining as hole PG17–456 returned 34.6 g/t Au over 4.3 m, including 67 g/t over 2 m…the result confirms that the Madsen mine is open to depth with deep-seated Gold mineralization similar to other prolific deposits in the Red Lake district…Hochschild Mining has appointed Isac Burstein, the company’s VP-Exploration and Business Development, to Cobalt Power’s (CPO, TSX-V) board of directors…
6. Barkerville Gold (BGM, TSX-V) has reported the highest Gold grades encountered to date in the Shaft Zone at its Cariboo Gold Project…Phase II infill drill hole IM-17–151 predictably intersected a modeled veining corridor now referred to as the “Alpha Corridor”, averaging 158 g/t Au over 5.3 m including 750 g/t over 0.55 m, 479 g/t over 0.50 m and 234 g/t over 0.60 m hosted within a larger interval grading 72.2 g/t Au over 12 m…the intersection came at a vertical depth of 350 m below surface and correlates spatially with previously reported drill hole IM-17–112 which cut 11.4 g/t Au over 4.75 m…the 2 holes are separated by a horizontal distance of 15 m…the new intersection in the Alpha Corridor remains open for expansion along vein strike to the southwest of IM-17–151…BGM is up 3 pennies at 88 cents through the first 30 minutes of trading…
7. eCobalt Solutions (ECS, TSX) has released feasibility study results for the company’s Idaho Cobalt Project (ICP), the only environmentally permitted, primary Cobalt project located in the United States…the FS is based on an underground mine with a target production rate of 800 short tons per day and a weighted average annual production of 2.4 million pounds of Cobalt, 3.3 million pounds of Copper and 3,000 ounces of Gold over a 12.5-year mine life with an estimated pre-production period of 24 months utilizing a 0.25% Cobalt cut-off grade. The economic model uses a 34% corporate tax rate and a 7.5% discount rate, resulting in an after-tax net present value of $135.8 million (U.S.) and an IRR of 21.3% using an average base case price of $26.65/pound for contained Cobalt in Cobalt sulphate…
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Ggi the energizer bunny.
Comment by Laddy — September 26, 2017 @ 10:57 am
If GGI PP news is released today explaining the terms of the sale, then there would be a two business day additional hold on any other news. That means that at the earliest results from GGI drilling could come is Friday. Is that correct?
Comment by Marshall — September 26, 2017 @ 11:40 am
Ggi pp news out. Revised Slightly higher but stil 50% below current market price. Any thoughts on the impact tomorrow if any
Comment by Matt — September 26, 2017 @ 5:49 pm
BGM keeps coming up with good results, why isn’t it moving?
Comment by Sameer — September 26, 2017 @ 6:35 pm
Be patient with BGM, Sameer…a lot of Gold in that system…today, specifically, it didn’t help that Gold dived a bit, but in a more general sense keep in mind that the BGM market is still absorbing a lot of stock from major financings this year…
Comment by Jon - BMR — September 26, 2017 @ 8:03 pm
We’ll explore that in a BMR Evening Alert, Matt, but your comment that the financing is still well below the current market price is factually true but irrelevant IMHO. The financing was fully subscribed for September 1, a day after GGI had closed at 70 cents. The financiers should not be punished because bureaucratic wrangling dragged this out so long that the stock had time to hit $2 per share.
Comment by Jon - BMR — September 26, 2017 @ 8:05 pm
Thanks jon
Comment by Sameer — September 27, 2017 @ 5:17 am