Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,250 and $1,259 so far today following yesterday’s Federal Reserve statement and rate hike, with policymakers projecting a short-term jump in U.S. economic growth from the Trump administration’s proposed tax cuts…yesterday marked the 3rd rate hike of 2017 and the central bank said it’s on track for an equal number of increases in 2018…the last 2 December rate hikes (2016 and 2015) proved very bullish for the Gold and metals markets over the ensuing months…as of 7:00 am Pacific, Gold has retreated $4 an ounce to $1,251 after yesterday’s modest jump…Silver has slipped 20 cents to $15.84…Copper and Nickel are up slightly at $3.06 and $5.07, respectively…Crude Oil has added 7 cents to $56.67 while the U.S. Dollar Index is relatively unchanged at 93.39…
2. U.S. retail sales rose more than forecast in November and the previous month was revised higher, indicating a broad strengthening of consumer demand as the holiday shopping season got under way, according to Commerce Department figures released this morning…overall sales climbed 0.8%, much higher than the estimated 0.3%, after an upwardly revised 0.5% increase in the prior month…the firm advance along with the October revision bodes well for consumer spending, the biggest part of the economy…solid hiring, gains in stock prices and property values, and limited inflation are expected to sustain U.S. household demand in the final stretch of this year following 2 quarters of better than 3% economic growth…
3. The economic situation in Canada is not as rosy: A triple threat of falling consumer spending, a potential pullback in residential housing investment and anemic levels of Oil and gas expenditures could cut the economic growth rate in half for the next 15 years, a new Boston Consulting Group report warns. “We’ve gotten used to sustained growth that is the envy of a lot of other G7 and advanced countries,” Keith Halliday, director of BCG Centre for Canada’s Future, told the Financial Post. “Past performance is no guarantee of future performance and if these downside scenarios materialize, it will mean lower incomes, fewer business opportunities and less government tax revenue for social programs than we would expect.”
4. OPEC production fell to its lowest in 6 months but rival U.S. production was surging faster than expected, meaning Oil markets may not rebalance before the end of 2018, the Oil cartel says in its closely watched monthly Oil report…OPEC said its Crude production fell by about 133,500 barrels a day in November to 32.45 million barrels a day…the group and its Russia-led allies agreed last month to extend the combined production cuts of 1.8 million barrels a day until the end of 2018…however, the output decrease last month was tied to other factors with domestic demand for Saudi Oil declining in the winter and Angola and Venezuela facing production issues…however, OPEC said other producers were fast filling the gap, notably U.S. shale companies that have been taking advantage of rising Oil prices and improved efficiencies…
5. The Dow is up for the 6th straight session, adding 63 points through the first 30 minutes of trading…Walt Disney has agreed to buy select assets of 21st Century Fox for $52.4 billion in stock as it moves to bolster its streaming and television businesses in a changing media landscape…the deal has a total value of approximately $66.1 billion, with Disney assuming $13.7 billion of Fox’s net debt…in Toronto, the TSX has climbed 14 points while the Venture has climbed back above 800 with a 4-point gain to 802 as of 7:00 am Pacific…nearest Fib. resistance is 803, so a close above that level tomorrow to finish the week would be a bullish development…it appears the Venture may have already put in its December low…history shows that it’s a very bullish signal when the Venture’s December low occurs early in the month…
6. eCobalt Solutions (ECS, TSX), which hit a new multi-year high earlier this week, is up slightly in early trading after reporting assays for the first of 3 completed resource definition diamond drill holes which confirm intercepts above the current resource grade cut-off drilled on the company’s Idaho Cobalt Project (ICP)…the holes are intended to upgrade a portion of Inferred resources to Indicated resources for inclusion in an updated feasibility study with optimized level mine plans and production schedules…two 6-foot intervals returned 0.40% Cobalt and 0.30% Copper as well as 0.44% Co and 1.6% Copper, while a 16-foot intercept graded 0.51% Cobalt and 1.8% Copper…the intervals ranged in depths between 1,261 feet and 1,327 feet…Paul Farquharson, President and CEO, stated: “The first results of our 2017 drilling program…demonstrate the strength and continuity of the company’s ICP resource and continuation of high-grade mineralization on strike and depth in this deposit. The company will continue to report these exciting results as it delivers on our intent to maximize value to its shareholders through continued development of measurable asset values.”
7. Ivanhoe Mines (IVN, TSX) has released positive findings of an independent, pre-feasibility study for the planned redevelopment of the company’s historic, high-grade, Kipushi Zinc-Copper-Silver-Germanium mine in the DRC…the study anticipates annual production of an average of 381,000 tonnes of Zinc concentrate over an 11-year initial mine life at a total cash cost of approximately 48 cents (U.S.) per pound of Zinc…the PFS focuses on the initial mining of Kipushi’s Big Zinc Zone, which has an estimated 10.2 million tonnes of Measured and Indicated Mineral Resources grading a whopping 34.9% Zinc…the planned return to production would establish Kipushi as the world’s highest-grade major Zinc mine…its exceptional Zinc grade is more than twice as high as the Measured and Indicated Mineral Resources of the world’s next-highest-grade Zinc project, according to Wood Mackenzie, a leading, international industry research and consulting group…
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Just curious about a few names here that have had good volume suddenly the brakes came on, any particular reason, or it is what it is, and are you swingin in downtown today to have a peek…he probably would like to see green at the close,I would think…
Comment by Laddy — December 14, 2017 @ 10:11 am
Hi Jon, John, and Daniel. Any thoughts on GT Gold (gtt) at the current share price and property that they have. Gtt was the rage a couple of months ago but has fallen off greatly since. Do you think it would be a good entry point here in low 60s? Thanks.
Comment by Sooch — December 14, 2017 @ 11:34 am
AIS looks to be falling day after day, any comments on this one or just stay the course?
Comment by ED — December 14, 2017 @ 12:12 pm
BMR… A day like today provides opportunity to pick up some good stocks at a discount if you can stomach the losses on the ones your holding.FTEC is getting on my nerves. Your chart on FTEC looks good but I’m tired of the volatility. Think it may be time to unload and pick up some more CSR. Venture is looking very sluggish trying to break through resistance. Do you think it is possible by year end?
Comment by dgambler — December 14, 2017 @ 1:11 pm
Sounds like the GGI meeting went very well ?
Very exciting!
Comment by Weatheritout80 — December 14, 2017 @ 5:15 pm
I would like to hear about GGI investor info conference from someone that attended.
Thank you in advance!
Comment by jasi — December 14, 2017 @ 6:48 pm
Hi dgambler!
Looks like FTEC has good support at the 20 day EMA, just my 2 bits.
Cheers
Comment by jasi — December 14, 2017 @ 6:51 pm
What meeting?
Comment by donald — December 14, 2017 @ 7:46 pm
Lots of great imput on ceo.ca from people who attended investors conference for GGI.. Very encouraging going into 2018! Worth a read and hopefully Jon gives us his opinions on the conference soon.
Comment by pole — December 14, 2017 @ 8:35 pm
FTEC support looks like .46 most of the stocks right now or ones I have are all hovering just above support line building momentum getting ready to move up
Comment by robtr31 — December 14, 2017 @ 8:40 pm
.46 support line
Comment by robtr31 — December 14, 2017 @ 8:42 pm
Some text highlights of GGI event, enjoy…
Steve Regocci (CEO):
– Voisey’s Bay – in years prior to discovery, geos said it was all the wrong kind of rocks;
– Rocks are what attracted key people to Nickel Mountain, some of whom were deeply involved in Voisey’s Bay;
– Lightfoot, Makela, King (King was at event, Lightfoot and Makela with commitments in Sudbury) and others;
– Geos in late 2016 initially excited by tenors, drilling delivers wider and wider intersections with excellent grades;
– According to Lightfoot, you needed a large disseminated halo (has that);
– Large halo evident in first 2 holes;
– Relieved after seeing widespread disseminated mineralization in first 2 holes, 2nd rig added which begins with historic zone in hole 3;
– After hole 14, viscious storm shut down drilling;
– Hole 15 target moving forward, interesting geophysics;
– More holes to be reported still, don’t think people will be disappointed (holes 10-13);
– Downhile geophysics on many holes;
– Valuable EM data;
– Proof of concept, finding the plates (massives), and then next to follow them back to the source (feeder zone);
– Looks like we have a very big overall target;
– Anxious to get back to drilling, ASAP;
– Discussing how early we can get in. Some people think you can’t get in until June, NOT TRUE. People will be surprised at how early we will be back;
– Have the resources to go after this aggressively, financed;
– Team led by Lightfoot, Makela, Hanson, King, Goldie, everyone is excited and moving forward;
– A lot of news flow, even over the winter;
– Really interesting things to discuss in the New Year;
– Very important to have news flow, market expects it, we can provide it with all the data we have collected;
– We have a unique new Eskay Camp discovery that builds greatly on 1960’s initial discovery;
– Infrastructure buildup in Eskay is absolutely dynamic, billions in roads, power, AltaGas, Seabridge moving forward, Pretium in production. It’s like night and day for infrastructure in this area now vs. historical;
– Last Friday, reported Hole 14, 8.3% Ni, 4.2% Cu, 6.4 g/t PGE, 0.20% Co, 1.1 g/t Au and 11.1 g/t Ag over 16.75 m within 40.4-m zone grading 3.93% Ni and 2.35% Cu;
– Hole 14 is in a special category, very rare, according to Peter Lightfoot;
– We have got a tiger by the tail;
– Purity according to preliminary geochemistry is another added feature; processing will be fairly clean. Looks very very good due to nature of mineralization;
– In every hole so far, nickel sulphide mineralization. That’s an impressive hit ratio;
– Even higher conductivity in some other targets than Anomaly D;
– Actual survey provided dozens of targets, 14 main clusters so far;
– Highest priority, besides D, are A, B, C and E;
– Asked the team if we can eliminate any VTEM targets, nope – all need to be ground truthed;
– We will be there for a long time. Lot’s of scale for expansion possibilities;
– SJ Geophysics worked. Guys like Alan King putting together geophysics program going forward;
– Best of Nickel people on the planet, couldn’t have better eyes;
– Quality of people available was due to market timing (bottom);
– Finalizing new Nickel Mountain presentation, re-doing website;
– Fixing some of things company was criticized on in early going, everything happened so fast;
– Drill rigs winterized on the mountain;
– Wisely consolidated all ground around original discovery;
– Expect to surprise people on how early they will get back to drilling;
– Helicopter support during drilling was superb;
– Everyone was impressed with the camp, much thanks to Jeremy’s work;
– Hope you all got in early *chuckle*;
– Truly a unique situation, we have built a foundation.
Jeremy Hanson: Senior Geologist with Garibaldi
– We do have the right geology “Chuckles” all over the place, despite what some people have said. OUCH @brent_cook;
– The scale is very large. 8km strike length on anomalies with surface mineralization at each anomaly checked so far;
– High demand metals being found;
– Tenors are world class, up to 10% Nickel tenor;
– Purity of the sulphides, no arsenic, lead, zinc, just a little bit of chrome;
– Big disseminated (large volume) surrounding massive sulphides. Packed full;
– Geophysics work very well to VTEM to borehole EM, proven that it works;
– Goes over map (infrastructure – power, roads, etc;
– Had gotten rock climbing geos, but didn’t beat the snow in September for some;
– Adit put 390 m below mineralization in 1970;
– Volcanic cinder cone, post-glacial – proof of right tectonic environment, along with Hazelton Group rocks which provide sulphur source;
– 5-10% tenor in massive sulphides;
– Massive sulphide intersections get wider going east;
– Talks about importance of loop-textured massive sulphides (pyrrhotite, surrounded by pentlandite-chalcopyrite). Exciting textures. See them at Noril’sk, Voisey’s;
– Scale is very large;
– Anomaly A quite steep, able to get some samples, up to 2% Copper on periphery of anomaky; new crews didn’t beat the snow this year, looking fwd to 2018;
– Regoci made mention of Metallis, noted presence of CEO Fiore, Razique; he congratulated them and wished us all good luck. Think this is a new Nickel
district.
Subscriber John
Comment by John — December 14, 2017 @ 10:25 pm
Thanks, John. Very nice event put together by GGI, enjoyed by all. Overflow crowd, even the infamous Peter Brown was there! Great hospitality at Vancouver Club.
Polished core samples were out of this world, INCREDIBLE looking rocks!
When you actually pick one of these up and know there’s 7% or 8% or more Nickel in them, plus several percent Copper, PGE’s, Cobalt, Gold and Silver – wow! You’re touching rock from wide intervals of massive sulphide that is highly unusual and extremely rare in a global context!! Not only exceptionally high metal value but very clean, pure sulphide!
Surprise visitor was renowned geophysicist Alan King – very excited at what he’s seeing on the geophysics side at discovery, historic area and up and down Corridor. King is pumped – great sign as geophysics is crtitical to the whole equation!
Very classy on the part of Regoci to mention Metallis and its people the way he did, obviously 2 companies working productively with each other which is important to district and entire Nickel Corridor. We need to see more of that kind of cooperation in this industry with fewer egos.
I particulary cherished opportunity to meet some wonderful BMR subscribers, hope I didn’t miss anybody but I apologize if I did!!! Never enough time to speak with each person but it was an honor to meet as many subscribers as I did.
Last people left Vancouver Club after 5 pm, some get-togethers among investors continued after that. I couldn’t leave downtown til 9 pm or so.
Comment by Jon - BMR — December 15, 2017 @ 2:07 am
“Even higher conductivity in other targets.” This has all the makings of not just a nickel district but a total monster district. Also “10% nickel tenor” in some of the readings. I might have to lie down. Thanks BMR for beating the table so strongly early this year on this play. It has made a huge difference to many of our lives and by the looks of it we are still only in the first quarter.
Comment by Patrick — December 15, 2017 @ 4:32 am
DM….Trading HALTED.
Comment by John - BMR — December 15, 2017 @ 4:57 am
You’re on fire, guys. Tell CSR to follow suit!
Comment by flyinthruu — December 15, 2017 @ 5:16 am
Judging by the chart and the coming name change to better reflect the Cobalt emphasis, flyinthru – looking great for CSR…
Comment by Jon - BMR — December 15, 2017 @ 5:19 am
Subscriber John and Jon – thanks for the rundown… very impressive… appreciated very much
Comment by Jeremy — December 15, 2017 @ 5:30 am
DM halted. Wonder what the announcement is about?
Comment by Dan1 — December 15, 2017 @ 5:34 am
Hi everyone,
I got the text of the GGI Investor Event off of @engineer.
Credit where it is due.
Subscriber John
Comment by John — December 15, 2017 @ 5:59 am
Re GGI: Been a crazy ride ever since the first NR of assays, the emotions I have felt have been all over the place, but this last week I have felt a sense of calmness that I haven’t had in the past,cant really say why, yeah the stock price has gone down some, but that really hasn’t given me any concern. After reading the above comments and comments available else where I have come to the conclusion that the daily stock price does not matter anymore unless you are trying to trade this thing. Its just a matter now of sitting back and letting the rest of the story unfold. Feels like I have won the lotto and my payout starts in June-December of next year. Thanks Jon and BMR for all the tireless reporting and also all of the responses to us subscribers, I’m sure it is very time consuming to answer all of our crazy questions sometimes but you guys are always there for us! Much success to you and us all! Thanks
Comment by Gregh — December 15, 2017 @ 6:35 am
Hi jasi and robtr31. Thanks for your comments on FTEC.Thats where I had support also.
Comment by dgambler — December 15, 2017 @ 6:41 am
WOWZER on DM. 0.31 bid already!
Are we still expecting a move on CSR before year end? I see cobalt has eased off the high a bit.
Thanks.
Comment by TradingAgent — December 15, 2017 @ 6:47 am
Looking very good on DM, TradingAgent…strong bids on the news…trading resumes 7:30 am Pacific…
On the question of CSR, yes…
Comment by Jon - BMR — December 15, 2017 @ 6:53 am
Jon and Team,
With all the info that’s coming out on GGI, have you ever been more excited about the company? I’m sure this feels so good to be witnessing potential history right now.
Comment by flyinthruu — December 15, 2017 @ 7:05 am
Certainly exciting times, flyinthru, with a very busy Q1 coming up…
Comment by Jon - BMR — December 15, 2017 @ 7:31 am
Jon, Steve’s comment ” expect to surprise people on how early they get back to drilling”. Do you think March/April 2018 is doable? If true that would sure be something.
Comment by pole — December 15, 2017 @ 7:40 am
I’m sure other companies like CXO, GTT, etc. must have their eyes peeled on the data coming out of GGI. My understanding is GGI specialized in gold/silver before this E&L property – like most of the other companies in that area. I read that almost $250 million dollars was poured into exploration after the Diamond Fields story. Do you think we see a repeat but even bigger one this time around? If you plan on discussing that in your future writings, then I’ll wait patiently so you don’t have to repeat yourself. Good times to be a nickel-sulfide expert!
Comment by flyinthruu — December 15, 2017 @ 7:45 am
DM…sold 50K at 33c, near Measured FIB….then I bought some more GGI.
Comment by John - BMR — December 15, 2017 @ 7:50 am
Isn’t DM’ FIB resistance at .39 according to your chart ?
Comment by Lady — December 15, 2017 @ 7:54 am
I sold 40k DM at .33c as well John.
Comment by Dan1 — December 15, 2017 @ 7:59 am
Thoughts on GT gold? Buy hold sell?
Comment by Sooch — December 15, 2017 @ 8:03 am
Lady, I’m holding DM as that has been the winning strategy since Day 1 and speculation certainly hasn’t gotten out of hand yet…charts show room for considerable growth…great news flow, tremendous volume…should be strong finish into year-end and a robust start to 2018…
Comment by Jon - BMR — December 15, 2017 @ 8:07 am
Jon, what’s your take on AIS? Seems to be lots willing to sell in the 90’s
Comment by Dan1 — December 15, 2017 @ 8:08 am
Dan1, AIS is just getting warmed up in Argentina…that’s my take…this is going to be a big winner given the likes of Sorentino, Thomas and others…just did my interview with Marc Enright-Morin, as I had been mentioning, so we look fwd to sharing that very shortly…
Comment by Jon - BMR — December 15, 2017 @ 8:14 am
Thanks Jon. I was debating picking up more AIS with DM’s profit, or maybe more GGI
Comment by Dan1 — December 15, 2017 @ 8:19 am
Also sold DM at .33 and .34. Stock seems to have a habit of pulling back after a spike.
Comment by DBReese — December 15, 2017 @ 8:21 am
Decision made. Picked up another 5K of AIS
Comment by Dan1 — December 15, 2017 @ 8:27 am
DB Reese, this morning it’s a positive sign that DM is trading above its opening price 1 hour into trading following the news…more often than not, that’s a bullish indicator…
Comment by Jon - BMR — December 15, 2017 @ 8:32 am
Abacus mining (AME)denied environmental certificate by the British Columbia Minister of Environment and Climate Change Strategy, and Minister of Energy, Mines and Petroleum Resources. Ouch. What does climate change strategy even mean in that title? They have been working on this thing since 2011 so quite a set back.
Comment by DBReese — December 15, 2017 @ 8:33 am
“The Federal Minister of Environment and Climate Change announced that the project, “Is likely to cause significant adverse environmental effects and cumulative effects to indigenous heritage and the current use of lands and resources for traditional purposes by indigenous peoples.” The minister has referred the project back to the responsible authorities: Fisheries and Oceans Canada and Natural Resources Canada. The responsible authorities must now seek a final decision from cabinet on whether the project can proceed.”
Good grief…
Comment by Jon - BMR — December 15, 2017 @ 8:36 am
Hi Jon, CSR is holding support well. The market has been fickle for obvious reasons with GGI (and manipulation). With Cobalt being a “sexy” commodity, you’d think the market would love high-grade cobalt in a SAFE jurisdiction. Is that REALLY a factor right now or just assays? You hear so much of Cobalt being in Congo/Russia.
Comment by flyinthruu — December 15, 2017 @ 8:38 am
Can’t argue with that Jon and I fully believe this thing is going much higher. But I am a trader at heart and while it is not always the best strategy for some stocks, and I may miss some of the run, I also don’t mind buying strength at higher prices. I see the gap open this morning and think it may move back to fill that. We shall see. Disclaimer – I am not an expert 🙂
Comment by DBReese — December 15, 2017 @ 8:50 am
Anything’s possible, DBReese, but my other line of thinking on DM and other leaders in this market is that we’re about to get into a period of great seasonal strength for the Venture…things should really ramp up immediately before and right after Christmas into early January…the current leaders will benefit from that move for sure, so in general I view this particular week as one in which it’s best to be a buyer, not a seller…
Comment by Jon - BMR — December 15, 2017 @ 9:08 am
DM…Sorry if I gave the wrong impression….I sold 50K but still hold 100k…higher prices to come.
Comment by John - BMR — December 15, 2017 @ 9:15 am
Those are great points Jon and I actually did not consider the bigger picture factor of the Venture and strength at this time of year. Maybe time to rethink my decision of waiting for the gap. I must admit that it sure chews through the level II asks pretty quick and at ten million shares still has not busted .30
John – You did not give the wrong impression. I figured you still held a core so no worries there. I usually split my trades into a core and a trading position, but let the core go for realized gains. Thanks to both of you for your very valued thoughts.
Comment by DBReese — December 15, 2017 @ 10:17 am
Okay Okay. Can’t ignore, point 44, anymore. Got back in at .315 , only 5000 to go to fill. Sheeesh.
Comment by DBReese — December 15, 2017 @ 10:41 am
Those are great points Jon and I actually did not consider the bigger picture factor of the Venture and strength at this time of year. Maybe time to rethink my decision of waiting for the gap. I must admit that it sure chews through the level II asks pretty quick and at ten million shares still has not busted .30
John – You did not give the wrong impression. I figured you still held a core so no worries there. I usually split my trades into a core and a trading position, but let the core go for realized gains. Thanks to both of you for your very valued thoughts.
Comment by DBReese — December 15, 2017 @ 11:22 am
So yesss, a great day for TGIF ( great week ) and also a great day today for DM !!! So I couldn’t resist piling into CYX priced here for the offering at under .29 ….. hey, why not !!! Figured some of the DM profits might come into CYX so after today my count is over a million. Who else is piling in ?? Farmer Tom
Comment by farmer — December 15, 2017 @ 4:22 pm