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1. Gold has traded between $1,324 and $1,333 so far today after a modest dip yesterday…as of 7:00 am Pacific, bullion is up $4 an ounce at $1,330…Silver has added 11 cents to $17.08, 20 cents below nearest resistance…Copper is up 2 cents at $3.19 while Nickel has added 3 pennies to $5.64…Crude Oil is steady near $64 while the U.S. Dollar Index has backed off again to 90.46, down half a point and vulnerable to a further slide…what makes the dollar’s decline durable is global central banks’ simultaneous shift toward tightening monetary policy…
2. Crude Oil prices are within sight of their highest levels since December 2014, supported by multiple factors including news that militant group Niger Delta Avengers has threatened to attack Nigeria’s Oil sector in the next few days, potentially hampering supplies in Africa’s largest exporter…the impact of such a threat, if carried out, would be significant on the global supply and demand balance…meanwhile, Venezuela’s Oil output is collapsing at an accelerating pace (isn’t socialism wonderful?), deepening an economic and humanitarian crisis and increasing the chances the country will default on its debts…production fell 216,000 barrels a day to 1.6 million in December compared to November, the 15th consecutive monthly decline, according to data released this morning by OPEC…this ranks among the deepest declines in the industry’s recent history…Russia’s output slid 23% during the fall of the Soviet Union, and Iraq’s output dropped by the same share after the 2003 U.S. invasion, according to data from OPEC and BP Statistical Review…
3. Yet another reason why U.S. equity markets remain so strong – of the S&P 500 companies that had reported as of yesterday morning, 78% have surpassed earnings-per-share estimates while 89% have beaten expectations on the top line, according to Nick Raich, CEO of The Earnings Scout…
4. The Bank of Montreal has become the first of the Big Six to lead a marijuana equity financing, underwriting a $175 million stock sale for Canopy Growth (WEED, TSX) which was announced yesterday…the deal was done at a price of $34.60 per share, 8% below WEED’s closing price, but above very strong technical support that exists in a band between $30 and $28 according to BMR charts…the offering is expected to close in 3 weeks on February 7…
5. After four triple digit advances over the past 5 sessions, the Dow is off 20 points through the first hour of trading…in Toronto, the TSX is up slightly while the Venture is 3 points lower at 882...interesting development this morning, and another sign that due to over-regulation the TSX Venture is bleeding business to its rival at the CSE…Global Blockchain Technologies (BLOC, TSX-V) is leaving the Venture and its shares will commence trading on the CSE at the market open next Tuesday, January 23 under the name symbol…BLOC is up on the news, 13 cents higher at $1.79 as of 7:00 am Pacific…Otis Gold (OOO, TSX-V) released more results this morning from last year’s 25-hole, 8,000-m program at its Kilgore Project in Idaho, highlighted by hole OKC-373 at the south end of the deposit which returned 24.4 m grading 4.3 g/t…the high-grade intercept occurred at the contact between the rhyolite dome and Aspen Formation in the Cabin Fault area, opening up further high-grade potential in a largely untested area to the southeast…
6. First Cobalt (FCC, TSX-V), sporting a market cap of more than $250 million, reported this morning that it has commenced surface drilling at the Bellellen mine near Cobalt, Ontario…a total of 15 holes for 2,000 m are planned at Bellellen to test the relationship between the disseminated style of Cobalt mineralization identified in 2017 and the vein style mineralization that was traditionally mined in the Cobalt Camp…FCC’s drilling at Bellelen represents the first phase of a 2018 $7 million drilling and exploration program covering more than a dozen target areas throughout its landholdings. “The objective of the 2018 drill program is to use our strong treasury to blanket the Camp, testing the near-surface potential of many areas with different styles of mineralization and diverse geological settings that have never been assessed for their Cobalt content. In addition to Keeley-Frontier, 12 new properties will be drilled on our 100 sq. km land package, including Bellellen, Drummond, Silver Banner and Silverfield,” stated President and CEO Trent Mell…meanwhile, in another part of the northern Ontario Cobalt Camp, Castle Silver Resources (CSR, TSX-V) – soon to be renamed for its Cobalt focus – is doubling down on a more cost effective strategy which is focused on the easier task of accessing Cobalt directly from underground where material was previously mined…CSR, with a much lower market cap than FCC, is the only company in the district that’s permitted for underground work…
7. TransCanada (TRP, TSX) has enough shipper interest to go forward with Keystone XL…the Calgary-based company has secured “approximately 500,000 barrels per day of firm, 20-year commitments,” according to a statement this morning…TransCanada received state approval in Nebraska in November to construct the project using an alternate route, and is currently working with landowners along the new path to obtain the necessary easements…construction preparation has begun, with primary construction scheduled to begin next year…the turning point for this project of course occurred after President Trump was elected as the previous Obama administration had declared its steadfast opposition to Keystone XL. “Over the last 12 months, the Keystone XL Project has achieved several milestones that move us significantly closer to constructing this critical energy infrastructure for North America,” stated TransCanada CEO Russ Girling…
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Hey BMR, just listening to some Rick Rule. He said he thinks the market for gold is definitely favoring discovery rather than leverage/optionality. Seems like leverage plays are lagging a bit. Ya’ll agree? Seems like another reason IMR could perform wonderfully if they get a sniff of something.
Comment by flyinthruu — January 18, 2018 @ 9:26 am
AIS is looking like it wants to start its next leg up. Stronger this morning just needs a little more volume to really kick it in. IMR needs to get an update out to its shareholders, seems like more sellers at .145 and .15 all the time. Just a matter of time I suspect.
Comment by tycoon777 — January 18, 2018 @ 9:28 am
BMR….BLOC moving to CSE is not surprising to me. In 2011 the Venture was at 2400 and now we struggle to hang on to 900. Seems like the shorters are in full control and there is no fight in the dog for the longs. We need some catalyst to get all pistons firing on the Venture and I don’t know what that would be. There seems to be strength in marijuana, gold, cobalt,crypto,and even oil picking up and yet the stocks struggle. We need a run up like we had from 2009 to 2011. Please tell me what I am not seeing in the bigger picture. Good luck to all longs .
Comment by dgambler — January 18, 2018 @ 9:46 am
Hey Tycoon, I called IR of IMR yesterday. Expecting some news in a week or so…
Comment by flyinthruu — January 18, 2018 @ 10:56 am
IMR – Jon, what are your thoughts on the options issued? Down since that announcement
Comment by Dan1 — January 18, 2018 @ 11:12 am
That’s sounds good , thanks flyinthruu.
Comment by tycoon777 — January 18, 2018 @ 11:18 am
HIVE and KASH and BLOC all uppp today after yesterday’s debacle …. so CYX and DM and FTEC ??? Let’s show some ” desire ” !!!! AIS trying to play ” catch up ” but seems the fish are still just nibbling …. Farmer Tom
Comment by farmer — January 18, 2018 @ 12:18 pm
BMR.If the Venture drops to down to 830 as you suggested in your December 30 post, that should wipe out the entire gains we made in December in that great run up. What is your recommendation. Start dumping or hang in and buy into the bargain prices.
Comment by Dgambler — January 18, 2018 @ 12:39 pm
Great speech by President Trump on the incredible strength of the American economy and record low unemployment. Not just big tax cuts for individuals but many corporations are passing their corporate tax cuts onto their employees by issuing workers bonus tax checks!
The U.S. is surging ahead while Canada sinks in a cesspool of socialist/liberal progressive economic policies. Our only hope is that Canada will have to start cutting taxes and regressive regulations in order to compete with our great neighbors to the south or get left way behind.
Subscriber John
Comment by John — January 18, 2018 @ 12:57 pm
Some good news from Blue Moon Zinc. Could be the next one to pop.
Comment by Patrick — January 18, 2018 @ 2:18 pm
Hi john and Jon, any remarks on the news CXO just came out with?? Results at north rok
Comment by Gregory — January 18, 2018 @ 2:45 pm
THERE IT IS!!!!!
https://ceo.ca/@newswire/castle-silver-resources-proposes-name-change-to-canada
Comment by Tfred — January 19, 2018 @ 4:40 am
Smart move by CSR, sounds like a massive campaign is in the works here…
Comment by Jon - BMR — January 19, 2018 @ 4:44 am