Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,298 and $1,307 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,303…Silver has added a couple of pennies to $16.51…Nickel, continuing its hot run, climbed as high as $6.95 this morning and is currently up 3 cents at $6.90 after bullish Chinese economic data…Copper is unchanged at $3.10 while Zinc has slipped 2 pennies to $1.40…Cobalt is steady at $41.28…Crude Oil (WTI) has retreated 95 cents to $67.26 while the U.S. Dollar Index is up slightly at 94.12…inflation remained at the Federal Reserve’s target in April for a 2nd straight month, a sign of firming prices in the U.S. economy that underscores policy makers’ plans to gradually raise interest rates…the personal-consumption expenditures price index, a broad measure that serves as the Fed’s preferred inflation yardstick, rose a seasonally adjusted 0.2% in April from March, the Commerce Department said this morning…from April 2017, the index was up 2%, matching the Fed’s annual goal for inflation…
2. Crude Oil is rebounding from its morning lows after a just-released report that U.S. commercial Crude inventories fell by 4.2 million barrels in the week to May 25, compared with analysts’ expectations for a decrease of 525,000 barrels…an earlier industry report had suggested stockpiles rose by 1 million barrels last week…the premium of Brent to WTI ballooned beyond $11 a barrel this morning, the largest since March 2015…that spread has doubled in less than a month as a lack of pipeline capacity in the United States has trapped a lot of output inland…Americans’ pipeline capacity problems pale in comparison to those in Canada, however…meanwhile, Reuters has reported that OPEC and its allies aim to continue their agreement to cut Oil output through the end of the year, but they are ready to make adjustments to offset any supply shortfall…OPEC meets June 22 in Vienna…technically, WTI has superb support in the mid-to-upper-$60’s…
3. China reported today that factory activity grew more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) coming in at 51.9 – the highest level since October 2017…the Chinese manufacturing PMI was forecast to dip to 51.3 in May from 51.4 in April, according to a poll of economists by Reuters…a reading above 50 indicates expansion, while a reading below that signals contraction…strong supply-demand factors and gains in global commodity prices contributed to the improvement in May’s manufacturing PMI reading…meanwhile, China reported services PMI at 54.9 in May from 54.8 in April as the manufacturing giant transitions to a services and consumption-driven economy…
4. The pace of economic growth in Canada slowed in the 1st quarter of this year to its lowest rate in nearly 2 years…should that come as any surprise?…Statistics Canada said today that the economy grew at an annualized pace of just 1.3% for the first 3 months of the year, well below economists’ expectations and far short of the growth rate south of the border…that compared with an annual pace of 1.7% in the final 3 months of 2017…household spending increased 0.3%, the slowest pace since the 1st quarter of 2015…
5. With the federal government’s decision to buy Kinder Morgan’s (KML, TSX) Trans Mountain pipeline dominating the political agenda in Ottawa, and creating plenty of controversy across the country, federal legislation that would overhaul Canada’s environmental assessment process is back in the House of Commons, with Conservatives and industry groups warning that it could be a “death knell” for natural resource projects…investors have many reasons to be concerned, especially since this legislation comes from a government obsessed with climate change and gender issues that shaped Justin Trudeau’s disastrous National Energy Program (NEP 2.0 may even inflict more damage on Canada than his father’s National Energy Program in the early 1980’s)…a new bill, C-69, would replace sweeping environmental assessment reforms passed by the former Conservative government in 2012…it aims to “broaden the scope” of environmental assessments while falsely claiming to shorten timelines…it would create a new “Impact Assessment Agency of Canada”, to replace the Canadian Environmental Assessment Agency, which would lead all major assessments…Bill C-69 is another federal government boondoggle and if passed in its current form will further Canadian competitiveness in the resource sector…
6. The Bank of Canada indicated very clearly yesterday that interest rates are going up in July, and there will be more rate hikes to come, even though it held its key rate steady at 1.25% as expected…the BOC sees higher rates as necessary now and not “over time”…as well, it no longer feels the need to be “cautious” about its belief that it needs to take rates higher…on Tuesday evening, before the rate announcement, bond-market pricing indicated the market was giving only a 17% chance of a rate hike yesterday and a modest 53% chance of a hike in July…the market’s implied expectation for rate hikes had fallen considerably over the previous 2 weeks…
7. The Dow is off 138 points as of 7:00 am Pacific with trade tensions erupting again…U.S. Commerce Secretary Wilbur Ross says the U.S. will slap tariffs on Canadian, Mexican and European Union steel and aluminum as of midnight tonight…Canada, Mexico and Europe were exempted from import duties of 25% on steel and 10 % on aluminum when they were first imposed in March, but those exemptions will expire tomorrow…in Toronto, the TSX is off just 19 points while the Venture has added 2 points to 769…
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AIS is having a bad day. Thoughts?
Comment by Gojira — May 31, 2018 @ 9:24 am
Great news just out on CCW…
Canada Cobalt’s Re-2OX Process Achieves 99% Cobalt Recovery
COQUITLAM, BC, May 31, 2018 /CNW/ – Canada Cobalt Works Inc. (TSX-V: CCW) (OTCPK: TAKRF) (Frankfurt: 4T9B) (the “Company” or “Canada Cobalt”) is pleased to announce that as crews prepare for imminent and first-ever underground drilling targeting cobalt at the Castle mine, Canada Cobalt’s proprietary Re-2OX process has made an important breakthrough in dealing with recovery of cobalt and other metals in the Northern Ontario Cobalt Camp.
SGS Lakefield in Peterborough, Ontario, has used the environmentally green Re-2OX process to recover 99% of cobalt and 81% of nickel from a composite of gravity concentrates while also removing 99% of the arsenic, a long-time issue in this cobalt-rich district. Testing and optimization continue.
The gravity concentrates graded 9.25% cobalt, 5.65% nickel, 9,250 g/t silver and 49.9% arsenic.
Additional stages of the Re-2OX process, overseen by Canada Cobalt adviser Dr. Ron Molnar, are expected to produce favorable recoveries for precious metals (silver and gold) while also achieving a Chinese National Standard cobalt sulfate and/or cobalt hybrid formulations. Cobalt test products will be evaluated by potential battery sector clients who are in discussions with the Company’s marketing representative based in China.
Frank Basa, President and CEO, commented: “These Re-2OX results are exciting. Canada Cobalt now has ‘proof of concept’ for an environmentally green process that efficiently recovers cobalt and other metals while successfully removing the arsenic. This is a big step for our team.
“Combined with our underground access at the Castle mine and imminent drilling from the first level of this past producer, Canada Cobalt has distinct advantages in the Northern Ontario Cobalt Camp in the midst of the electric vehicle supercycle and the continuing uptrend in cobalt prices,” Basa concluded.
Qualified Person
The technical information in this news release was prepared under the supervision of Frank J. Basa, P.Eng., Canada Cobalt’s President and Chief Executive Officer, who is a member of Professional Engineers Ontario and a qualified person in accordance with National Instrument 43-101.
QA/QC
An 82-kilogram sample of vein material that was recently taken from the first level of the Castle mine was crushed to -10 mesh and blended by SGS Laboratories in Lakefield, Ontario, from which a representative sample was submitted for analysis by lead fusion fire assay for silver and gold. Other metals were assayed by ICP after multi-acid digestion. The material was subsequently used for testing the proprietary Re-2OX process. CCW relies on internal SGS laboratory independent QA/QC which allows the disclosure of the results provided.
About Canada Cobalt Works Inc.
Canada Cobalt is a pure play cobalt company focused exclusively on the Northern Ontario Cobalt Camp, Canada’s most prolific cobalt district. With three 100%-owned past producing mines, a proprietary hydrometallurgical process known as Re-2OX, and plans for a 600-tonne-per-day mill at its flagship Castle Property near Gowganda, CanadaCobalt is well positioned to become a vertically integrated North American leader in cobalt extraction and recovery.
“Frank J. Basa”
Frank J. Basa P. Eng.
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
SOURCE Canada Cobalt Works Inc.
View original content: http://www.newswire.ca/en/releases/archive/May2018/31/c5918.html
Contact:
Frank J. Basa, P.Eng., President and CEO at 1-819-797-4144, or Wayne Cheveldayoff, Corporate Communications, waynecheveldayoff@gmail.com, 416-710-2410
© 2018 Canjex Publishing Ltd. All rights reserved.
Comment by John - BMR — May 31, 2018 @ 10:07 am
CCW: that is great news!
Comment by adrobyshev — May 31, 2018 @ 10:26 am
Indeed, remarkable…when the market catches on to this, watch out…99% Cobalt recovery + recovery of other metals including Nickel, and removal of 99% of arsenic…that is a first as far as I know in the Northern Ontario Cobalt Camp and a serious game-changer for CCW…combine that with the start of underground drilling, no reason this can’t get to new highs very soon…
Comment by Jon - BMR — May 31, 2018 @ 10:28 am
By new highs,Jon,you mean above $0.55 and not $6.3 which is the all time high on Stockcharts…:-)
Comment by keen1991 — May 31, 2018 @ 10:49 am
New highs above January, keen1991, this is a major development for CCW…makes them a more attractive takeover possibility as well…look at John’s last chart and it’s pretty clear where this is headed…now there’s really solid fundamental support for that, and underground drilling is also about to start…no question that CCW is now firmly in the lead in terms of which company is most likely to get product to market first from the Northern Ontario Cobalt Camp…
Comment by Jon - BMR — May 31, 2018 @ 11:08 am
My mouth almost dropped open seeing that recovery rate % – especially on that arsenic.
Comment by BigBid — May 31, 2018 @ 11:20 am
Now we know why someone wanted in late yesterday!
Comment by Gregh — May 31, 2018 @ 11:30 am
That’s the kicker, BigBid…keep in mind, Re-2OX was initially developed in association with the National Research Council…it’s a process that’s 100%-owned by CCW and bypasses the smelter…this is HUGE which is why I’ve added to my position this morning – expecting some major follow-through on this after it circulates a little more…
Comment by Jon - BMR — May 31, 2018 @ 11:31 am
Jon
have you ever asked Frank how scalable the process is, can it be duplicated on tonnage?
“An 82-kilogram sample of vein material that was recently taken from the first level of the Castle mine was crushed to -10 mesh and blended by SGS Laboratories in Lakefield, Ontario, from which a representative sample was submitted for analysis by lead fusion fire assay for silver and gold. Other metals were assayed by ICP after multi-acid digestion. The material was subsequently used for testing the proprietary Re-2OX process. CCW relies on internal SGS laboratory independent QA/QC which allows the disclosure of the results provided.”
Comment by gregh — May 31, 2018 @ 11:35 am
Yes, gregh, and I’ve also spoken to Dr. Molnar regarding this—it is scalable which is why after a Cobalt sulfate and/or a hybrid Cobalt formulation is produced to the specs of certain clients, the next stage is the pilot plant and he’s designed about 60 of these things in his career…
Comment by Jon - BMR — May 31, 2018 @ 12:02 pm
The Re-2OX process alone is worth owning CCW in my opinion. Great news!!
Comment by Foz1971 — May 31, 2018 @ 12:52 pm
Those grades are phenominal! Once the markets trully
Digests It the SP Will go bananas!
Comment by Tran — May 31, 2018 @ 1:12 pm
Hi Jon. Would you sell GGI to buy more AIS at these levels? What is up with AIS? Thanks
Comment by Sooch — May 31, 2018 @ 2:08 pm
I wouldn’t even think of selling GGI right now, Sooch, not for AIS or anything.
Sometimes stocks make moves that are rather unexplainable – who knows, in the case of AIS, maybe someone just needed to raise some cash. Or it could be technically-driven selling. If a green light comes on Guayatayoc, which I believe it will, then at these levels AIS is a monster steal.
We’ve seen some other interesting triple bottom situations lately, perhaps a similar scenario is unfolding here with AIS.
Comment by Jon - BMR — May 31, 2018 @ 3:34 pm
Thanks, Jon. Appreciate it.
Comment by Gojira — May 31, 2018 @ 3:39 pm
Hi Jon, not sure if you’re willing to share but curious how much gtt and GGI make up your port…
Comment by BigBid — May 31, 2018 @ 4:29 pm
Let me rephrase. How do you go about position sizing with some of the big potential plays?
Comment by BigBid — May 31, 2018 @ 4:34 pm
The key with the Venture, BigBid, is to hold a basket of opportunities because you could own 10 really good stocks, but it can be very difficult to predict which plays are going to move first or at a specific time…and as we’ve repeatedly stated, it’s always important to maintain reasonable cash levels/liquidity to pounce on something big that may suddenly pop up…CCW in recent days has been a great example and continues to be…
Comment by Jon - BMR — May 31, 2018 @ 5:15 pm
Thanks Jon for response. I was asking about selling ggi to get shares in ais at these low prices. I own AIS avg 50 cents so wondering if selling clm moon or ccw to get funds to buy AIS is wise. What kind of upside is there in ur opinion on AIS? When can we expect news from AIS? Thanks Jon
Comment by Sooch — May 31, 2018 @ 7:26 pm
GGI, CCW, CLM are all looking very good, Sooch, and surrendering MOON at 7 or 8 cents makes no sense given the resource there and near-term drilling.
Comment by Jon - BMR — May 31, 2018 @ 7:37 pm
Jon, it almost sounds like you’re not happy with AIS. Would you lump it in with ggi, ccw potential wise? Any updates?
Comment by Charles — May 31, 2018 @ 8:37 pm
Just a little tender lovin patients will do the trick.
Comment by Laddy — May 31, 2018 @ 9:24 pm
Relatively low volume retreat in AIS over the last 4 sessions, Charles, but a mysterious one nonetheless – AIS Chairman has no explanation for the 25% haircut in the stock this week. This is a company with two individuals, Phil Thomas and Dr. Sorentino, who are among the best in the business at Lithium brine exploration/development with deep connections in Argentina, so it’s frustrating to say the least that this stock is trading where it is after hovering around $1.50 in January. Guayatayoc – a Lithium brine operation in the making – is the key to AIS valuation, and drill permits are still needed. Some holes have been drilled at Chiron in Salta with results pending. I’m prepared to get much more aggressive with management if necessary.
Comment by Jon - BMR — June 1, 2018 @ 12:26 am
Thanks, Jon.
Comment by Charles — June 1, 2018 @ 7:39 am