4. Cobalt 27 Capital (KBLT, TSX-V) has acquired a 1.75% NSR on all future production over all metals from the Dumont Nickel-Cobalt Project, which contains the world’s largest undeveloped, permitted and construction-ready reserves of Nickel and Cobalt, located near Rouyn-Noranda in northwest Quebec…sounds good on paper but whether the low-grade Dumont deposit actually goes into production remains to be seen…Mark Selby, CEO of RNC Minerals, struck an optimistic note in a news release this morning: “Cobalt 27’s acquisition of the 1.75% NSR royalty highlights why the Dumont Nickel-Cobalt Project is one of the world’s premier battery metals projects. Dumont not only contains the world’s largest undeveloped reserves of both Cobalt and Nickel, it also fully permitted and construction-ready, close to existing infrastructure, and located in one the world’s most desirable mining jurisdictions in Quebec. RNC is pleased to welcome Cobalt 27 as a supportive partner on the Dumont project. Cobalt 27’s assessment of Dumont’s ideal positioning to meet demand for the electric vehicle market has been confirmed by recent approaches on Dumont from automakers and battery materials producers who are focused on obtaining access to Cobalt and Nickel feed from a low political risk jurisdiction.”
Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,324 and $1,333 so far today…as of 7:00 am Pacific, bullion is up $4 an ounce at $1,328…yesterday’s minutes from the Federal Reserve’s latest meeting gave little indication that the central bank plans to raise rates at a faster pace than previously indicated, though in general Fed officials seem increasingly confident in how the economy is performing…U.S. government yields have pulled back this morning from multi-year highs reached yesterday…the 10-year yield hit a 4-year high of 2.95% while the yield on the benchmark 2-year Treasury note hovered just under a 9-year high at 2.26%…Silver is up 7 cents at $16.57…Copper is steady at $3.20…record high stocks of Copper in land-locked Arizona and Utah are a reflection of soaring transport costs in the U.S., according to industry sources…Nickel has slipped 6 cents to $6.17 while Zinc is off a penny at $1.60…Cobalt has eased off to $36.06…Crude Oil has climbed 25 cents to $61.95 while the U.S. Dollar Index reacted around 90 again and has fallen one-third of a point to 89.79…
2. A key index tracking 10 economic metrics in the U.S. rose for the 3rd straight month in January…the composite indicator increased 1% in January from the prior month, besting expectations of 0.7% from a survey of Reuters’ economists…the monthly gain in December was 0.6% which also surpassed economists’ expectations…the organization tracking the Leading Economic Index previously announced that the passage of federal tax reform legislation in December will “provide even more tailwind to the current expansion”…
3. Billionaire investor Ray Dalio, who founded world’s largest hedge fund Bridgewater Associates, believes there’s is a relatively high chance the U.S. economy will stumble into a recession before the next Presidential election in 2020. “I think we are in a pre-bubble stage that could go into a bubble stage…the probability of a recession prior to the next Presidential election would be relatively high, maybe 70%,” he said during an appearance at the Harvard Kennedy School’s Institute of Politics…Dalio, whose fund invests some $160 billion, stepped down from the hedge fund’s day-to-day operations nearly a year ago but his views on markets and the economy are still very closely followed…he added, “The greatest mistake of the individual investor is to think that a market that did well is a good market rather than a more expensive market.”
5. After a big intra-day swing yesterday, the Dow has rebounded 108 points as of 7:00 am Pacific…in Toronto, the TSX is up 19 points while the Venture is flat at 893…Adam Travis is out as President and CEO of Colorado Resources (CXO, TSX-V), replaced by economic geologist Robert Shaw who has 30 years of mineral exploration experience throughout the Americas…most recently he was President of the Western Canada Greenfields Group…in that capacity, he pursued project generation and mineral exploration opportunities in the North American cordillera, specifically British Columbia, from March 2016 until January of this year…Oceanagold (OGC, TSX) has firmed up after reporting record full-year net profit of $172 million or 28 cents per share including a record quarterly net profit of $89 million…Alamos Gold (AGI, TSX) is off modestly after posting net 2017 earnings of only $27.4 million or 9 cents per share…the company, however, is poised to benefit from low-cost production growth from the Island Gold mine through its recently completed acquisition of Richmont Mines…Gold Standard Ventures (GSV, TSX-V) has closed a $38 million financing at $2.05 per share with both Goldcorp (G, TSX) and Oceanagold participating…combined, the 2 producers own about 25% of GSV…
6. Canada’s self-inflicted wound as climate change extremists try to “save the planet”: Lack of pipelines and massive discounts for Canadian heavy Oil could cost the economy as much as $15.6 billion this year, or three-quarters of a point in the country’s GDP, according to economists at Scotiabank in a damning report released yesterday. “Reliance on the existing pipeline network and rail shipments to bring Canadian Oil to market has a demonstrable impact on Canada’s well-being, with consequences that extend well beyond Alberta…the sooner governments move to allow additional pipeline capacity to be built, the better off Canada will be,” stated Scotiabank senior Vice-President/chief economist Jean-Francois Perrault and commodity economist Rory Johnston…unfortunately, the new government in British Columbia – the Green Monster – is determined to kill the federally approved Kinder Morgan pipeline expansion, and many Green Monster followers are prepared to break the law if necessary in order to help make that happen…meanwhile, a new poll by the Angus Reid Institute shows 49% of Canadians say they strongly or moderately support the pipeline, while one-third are opposed…even in British Columbia, 48% back the pipeline while 40% are against…
7. With Cobalt prices trading at a decade high, it should come as no surprise that Apple – according to reports from Bloomberg – is in talks to buy long-term supplies of Cobalt for iPhone batteries directly from miners…the iPhone maker is seeking contracts to buy several thousand metric tons of Cobalt for 5 years or longer, according to a Bloomberg source…while many manufacturers are trying to increase the proportion of Nickel used in electric vehicles, which is more economical and helps increase energy density, Cobalt remains an essential element of electric car batteries given its positive impact on cycle life and the batteries’ ability to recharge quickly…it’s simply not possible – and it won’t be for perhaps 2 or 3 decades according to many experts – to remove Cobalt from the battery equation…prices for the metal are expected to rise even further this year, as the Democratic Republic of Congo, responsible for more than half the world’s supply, recently hiked its taxes and royalties on the metal…meanwhile, it’s estimated that about 20% of the Cobalt mined in Congo is extracted by hand by informal miners including children, often in dangerous conditions…the LME, the world’s biggest market for industrial metals, has recently stepped up efforts to make sure that Cobalt mined by child labor doesn’t trade on the exchange…
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Yes, mining top stock on bnn was Garibaldi, they had someone on this morning from venture 50.. well I just called bnn this morning and lodged a complaint about the host, he mentioned only the name of the mining company and then immediately started talking about pot stocks, what on earth does pot stocks have to do with Garibaldi Resources I asked? What a joke!! I expressed my udder displeasure with that host as nicely as I could, and demanded a redo on Garibaldi, let’s hope that is done.. unbelievable…
Comment by Laddy — February 22, 2018 @ 10:14 am
https://www.youtube.com/watch?v=2CZcK6rDUFM+
Real cool video of Steve talking about GGI and their plans for 2018 plus recognition of making the TSX Venture top 50 and being selected as #1 pick for mining. He also paid “kudos” to all of GGI’s support staff for getting the company to where they are today. Steve spoke very well. Makes you want to rush out and buy more shares.
Comment by pole — February 22, 2018 @ 10:40 am
CXO as long as Larry has anything to do with that company, I wouldn’t touch it with anyone’s 10 ft pole…..
Comment by Gregory — February 22, 2018 @ 11:09 am
Well, maybe everyone needs to be cleaned out there, Gregory…somebody looking for a bigger land position in the Eskay Camp should just take them out…Skeena might be an ideal candidate…they don’t seem to mind dilution…
Comment by Jon - BMR — February 22, 2018 @ 11:11 am
Jon
any comments on the stock split announcement this morning on BLOC? Appreciate your thoughts
thanks
Comment by Gregh — February 22, 2018 @ 1:08 pm
AIS….bought 20K today….looking good after bouncing up from the FIB support at 33c.
Comment by John - BMR — February 22, 2018 @ 1:12 pm
CSR name-change is a go. Looking forward to hearing what they’ve been up to for the past few months.
Comment by Matt — February 22, 2018 @ 2:57 pm
BTW, thanks BMR team for all the responses. Lots of comments this past week.
Comment by BigBid — February 22, 2018 @ 3:52 pm
Jon,
hope theres more on the CCW bid early next week to drive volume and absort those shares being handed out, otherwise I presume the company has a plan to absorb these shares with a material release.
Comment by TradingAgent — February 23, 2018 @ 6:22 am
If you are referring to the GGM dividend, TradingAgent, again – that’s really a non-issue as we’ve pointed out…2.5 million shares distributed among hundreds of shareholders…wasn’t a factor last year…also, with CCW, give it a session or two for bids-asks to align properly—as is always the case with these name and symbol changes, the market isn’t normal instantly…that’s why I don’t expect news from CCW until sometime next week…
Comment by Jon - BMR — February 23, 2018 @ 6:36 am