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 hit a 4-month high of $1,334 as the greenback remains under pressure while physical buying in Asia intensifies ahead of the Chinese Lunar New Year which begins in mid-February…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,327 as it prepares for its 5th straight weekly gain…Silver has added 9 cents to $17.05…Copper is steady at $3.21 while Nickel, enjoying a strong week, is up another 5 cents to $5.74…Crude Oil has retreated slightly to $63.61 while the U.S. Dollar Index has tumbled another half point to 91.33…the euro jumped against the dollar as the ECB signaled that it could begin to wind down its 2.5 trillion euro stimulus program this year…
2. Rob McEwen in a Kitco interview regarding Gold: “If you compared the Goldman Sachs Commodity Index to the S&P 500, commodity prices are at their lowest point since 1971. On a risk/reward basis, there is not much more left on the downside and lots of potential on the upside. Markets are being driven more and more by passive investment managers who are using index funds, so when the swing comes there is a tidal wave of money that could come into the mining space.” McEwen, according to votes from Kitco readers, was the top mining CEO of the year for 2017, the second time he has earned that distinction…
3. U.S. Treasury Secretary Steven Mnuchin wants to make sure cryptocurrencies can’t be used like Swiss bank accounts. “We want to make sure that bad people cannot use these currencies to do bad things,” he said this morning at an event hosted by the Economic Club of Washington…he added the U.S. is working with world leaders in the G20 on “making sure that this doesn’t become the Swiss numbered bank accounts.”
4. Underlying U.S. consumer prices recorded their largest increase in 11 months in December amid strong gains in the cost of rental accommodation and health care, giving some hope that stubbornly low inflation may pick up this year…the Labor Department said its Consumer Price Index excluding the volatile food and energy components rose 0.3% last month as prices for new motor vehicles, used cars and trucks and motor vehicle insurance increased…in other economic data, spending at U.S. retailers rose in December for the 4th consecutive month, capping the strongest year for sales growth since 2014…holiday sales jumped 5.5% compared to last year, marking the largest jump seen since the end of the Great Recession…overseas, China reported a record trade surplus with the U.S. in 2017, at $276 billion…China’s total December imports were up 4.5%, year-on-year, while its exports were up 10.9% in the same period…
5. The Financial Post’s Claudia Cattaneo wrote this this morning how Canada is stuck on the sidelines as the U.S. Oil boom creates jobs and even curbs emissions. “The Canadian sector is held back by pipeline bottlenecks that are depressing both Oil and gas prices (WTI rose near $64 U.S. a barrel yesterday, while Western Canadian Select was trading just above $37 U.S), governments that are more concerned about transitioning to renewable energy, investors who’ve moved on to better and faster opportunities elsewhere. On the U.S. side, optimism is strong, thanks to the U.S. industry’s success in producing shale gas and tight Oil and in crushing barriers to export the new production globally, plus support from a President whose only concern about fossil fuels is that there should be more.” Jack Gerard, President of the American Petroleum Institute (API), reflected the U.S. industry’s buoyancy in his annual state of the industry address this week. “We have taken the nation from energy scarcity to energy abundance, from making products abroad to a rebirth of U.S. manufacturing. From energy as a major pocketbook issue to lower gasoline, diesel, electricity and home heating costs. And today we are increasing development as we’re contributing to lower greenhouse gas emissions – a reality many believed was implausible, if not impossible.”
6. U.S. stocks are strongly higher in early trading with the 3 major equity indexes reaching new record highs as big banks kicked off the 4th quarter earnings season…the S&P 500 is enjoying its best start to any year since 1987…J.P. Morgan Chase (JPM, NYSE) is up slightly, even though it revealed that it took a huge loss ($143 million) from a trading-related margin loan to a single client during Q4…as of 7:00 am Pacific, the Dow is up 164 points…in Toronto, the TSX has added 14 points…First Majestic Silver (FR, TSX, AG, NYSE) has agreed to acquire struggling Primero Mining (P, TSX) in an all-stock deal, the companies announced this morning, with Primero more than doubling in price on the news…with the addition of Primero’s San Dimas Silver-Gold mine in Mexico, First Majestic said it anticipates company annualized Silver-equivalent production of 27 million to 30 million ounces…First Majestic already operates 6 mines in Mexico…the Venture has lost another 12 points in early trading to 878…the Index has declined for 3 straight sessions but is approaching exceptionally strong support….
7. Barkerville Gold (BGM, TSX-V) updated investors this morning by detailing its 2018 objectives. “The company is planning to undertake several actions which are anticipated to be substantial catalysts for Barkerville. The company plans to publish an initial resource for Cow Mountain, Island Mountain and Valley zones as well as an update for Barkerville Mountain. Barkerville will initiate drill testing of regional targets to confirm the mineralization model and district scale upside. Bonanza Ledge anticipates finishing development in Q1 with stope production to follow. The company will also start its underground access, permit depending, in order to explore for increased underground resources at Cow and Island Mountain targets. This should reduce future drilling cost and improve the company’s understanding of the mineralization. This underground access will also allow for trial stoping and bulk sampling that will supply valuable data related to rock mechanics, dilution, operating costs and processing.” BGM is trading in the low-to-mid-70’s, slightly above its rising 500-day moving average (SMA) which confirms a primary bullish trend…
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GGI is Eric Sprott’s stock of the year. 1 oz/ton of Au in recent holes. This from his webcast this morning.
How sweet it is.
Comment by Marshall — January 12, 2018 @ 9:27 am
Just finished listening to Sprott Money. Eric is very bullish on GGI for 2018. Definitely worth a listen.
Comment by pole — January 12, 2018 @ 9:55 am
whats the summary from sprott? never heard about au in drill results –
Comment by donald — January 12, 2018 @ 11:16 am
The $US’s loss is gold’s gain also the $CDN’s gain. Can I renew early to avoid the fall in the US$?
Comment by Marshall — January 12, 2018 @ 11:20 am
One ounce gold “equivalent” suggested by drill results in some of the intercepts.dyodd
Comment by donald — January 12, 2018 @ 11:20 am
Hey Jon. First time poster. Love the work you guys do – learning loads! Any thoughts as to what is going on with AIS?
Comment by Milo — January 12, 2018 @ 11:34 am
It’s all short-term technical related with AIS, Milo…one needs to be careful, however, focusing too much on hourly/daily moves because the broad overall technical picture is very bullish…within those broader patterns you can have brief periods of weakness down to key support levels and that’s what we’re seeing…there have been 3 similar retracements in AIS since November which were 26%, 23% and 31%…this retracement is 25% at the moment…those who panicked at the bottom of the 3 earlier retracements got fleeced out of their shares…
Comment by Jon - BMR — January 12, 2018 @ 11:45 am
Hi Jon,
What are your thoughts on CYX at current levels?
Comment by Alex — January 12, 2018 @ 11:51 am
Thanks Jon. Still new and learning. Your insight is really helpful!!
Comment by Milo — January 12, 2018 @ 12:16 pm
Really nice to see that tight trading range for CSR. Definitely above new resistance level but a hair below that wall. Bring on the news.
Comment by flyinthruu — January 12, 2018 @ 1:01 pm
Post no. 2 Hello Pole,
do you have a link to share to listen what you are talking about ? I found a video on YouTube but I’am not sure that is the good one.
Thank you
Comment by Sylvain — January 12, 2018 @ 1:12 pm
Hey Sylvain, I found the link for that Sprott Money interview on ceo.ca.
Just go to the site and under the GGI blog the link is there today.
Hope that helps.
Comment by pole — January 12, 2018 @ 1:23 pm
https://www.sprottmoney.com/Blog/everything-is-so-vulnerable-eric-sprott-on-the-weak-dollar-flawed-intel-chips-and-his-stock-of-2018.html
Here is the link Sylvain.
Comment by pole — January 12, 2018 @ 1:41 pm
CLM. 6 placees. 3 unnamed ones for 627k and the rest was insiders flipping thier shrs to do it again
Comment by david — January 12, 2018 @ 1:47 pm
Thank you Pole,
A nice week-end to you and to all the subscribers and the BMR team !
Comment by Sylvain — January 12, 2018 @ 1:47 pm
AIS, IMR and CSR will all be huge winners!! IMHO. Hold on to what you have and accumulate more if you can on any dips of weakness, like we have been seeing last couple days. Have a great weekend all!! ??????
Comment by Tycoon777 — January 12, 2018 @ 1:56 pm
GGI by Sprott: https://www.sprottmoney.com/Blog/everything-is-so-vulnerable-eric-sprott-on-the-weak-dollar-flawed-intel-chips-and-his-stock-of-2018.html
When could we expect the summary of GGI, Jon!? Eagerly awaiting it…
Comment by Maik — January 12, 2018 @ 2:48 pm
Your welcome Sylvain. Have a great weekend also. Should (hopefully) be hearing from Steve next week.
Comment by pole — January 12, 2018 @ 3:16 pm
CSR closes PP, wall at 0.50 comes down.
CSR CLOSES NON-BROKERED PRIVATE PLACEMENT
Castle Silver Resources Inc. has closed a non-brokered private placement with strategic investors, raising gross proceeds of $1.03-million. The company issued 2,942,857 units at 35 cents per unit.
Private placement details
Each unit comprises one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of 50 cents per share for a period of two years from closing, subject to TSX Venture Exchange approval.
All securities issued in connection with the private placement are subject to a four-month-and-one-day hold period expiring May 13, 2018, in accordance with applicable securities laws.
Proceeds of the private placement will go toward expanding the underground cobalt program at the past-producing Castle silver mine near Gowganda, Ont., and for general working capital purposes.
About Castle Silver Resources Inc.
The Castle silver mine, the Beaver mine and the Violet mine, all 100 per cent owned by Castle Silver Resources, are all past-producing properties in the silver-cobalt camp in Northern Ontario. While they comprise only 2,840 hectares, they are sources of high-grade cobalt that can quickly be developed into a shovel-ready state. The company also owns the Re-2OX process, which has been pilot plant tested to separate Silver Resources’ properties.the various metals that comprise the mineralization in the cobalt camp vein systems. Studies are under way to develop a milling processing facility and leach plant on on one of Castle Silver Resources’ properties.
Comment by John - BMR — January 12, 2018 @ 4:19 pm
John:
Thank you for the update.
Comment by GoldenFalcons — January 12, 2018 @ 4:24 pm
Hasta manana 0.50 wall! see you never!
Comment by sweetbabyjesus — January 12, 2018 @ 4:51 pm
Anyone else following the ITT Story ??? SX had another stellar day, and IDK kinda ” held up ” … the Star was ITT and signs are looking good for next week ! Farmer Tom
Comment by farmer — January 12, 2018 @ 5:37 pm
Farmer, my eyes are peeled on CSR. They are bringing alot of value to the market. Pretty cool.
Comment by flyinthruu — January 12, 2018 @ 6:06 pm
Can you please update FTEC.V in near future?
Comment by Sylvain — January 13, 2018 @ 6:29 pm
Hi Jon, with the typical “sell before news or sell on the news”, with assays coming back for CSR, any chance we see some funky stuff? Any chance what grades we would need for the market to “love it”?
Comment by flyinthruu — January 13, 2018 @ 7:00 pm
https://www.bloomberg.com/graphics/2018-cobalt-batteries/
Interesting how much nickel is planned to be used in batteries…interesting how it referred to recylcing used batteries will add alot to supply…go CSR.
Comment by flyinthruu — January 13, 2018 @ 7:10 pm
Great news on the ” recycled batteries ” adding to the supply !!! I’ve got lots of used batteries kicking around ….. and lots of old farm machinery …. gotta get Scrap Price up some more and then it’s really time to cash in $$$ Buy more ITT Shares before they go through the roof ….. Farmer T
Comment by farmer — January 13, 2018 @ 9:48 pm
The “funky” stuff we’ll be seeing, flyinthru, is an explosion in the CSR share price IMHO – perfect set-up for that: 1) Funky new name; 2) Acceleration of underground Cobalt program; 3) More assay results (they’ve been consistently very good); 4) First mover advantage in developing a Cobalt product for end user evaluation through underground access and proprietary Re-2OX process; 5) Plans for a mill at Castle site funded by another company; 6) Opportunities in the recycling market; 7) Recognition that CSR is way undervalued vs. peers in the district. FCC commands a market cap of ~$250 million, yet look at what CSR has for a market cap that’s almost 1/10th of FCC’s.
Comment by Jon - BMR — January 13, 2018 @ 11:02 pm
Thanks Jon. Expecting good assays and judging by current interest, it seems like the smart money.
Comment by flyinthruu — January 14, 2018 @ 8:11 am
from bloomberg article, “Hype Meets Reality as Electric Car
Dreams Run Into Metal Crunch”
..Car-battery chemistries may follow a similar trajectory. Currently, most contain roughly equal amounts of nickel, manganese and cobalt, called NMC 111. By 2025 the dominant composition will be 80 percent nickel and 10 percent cobalt, according to UBS AG forecasts.
Recycling technologies to extract minerals from dead batteries, meanwhile, could add 25,000 tons of supply by 2025, CRU projections show…. ”
so maybe win/win : buy CSR for cobalt and battery extraction technology, buy GGI for future nickel and polymetals ?
Comment by donald — January 14, 2018 @ 4:44 pm