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 traded between $1,209 and $1,222 following yesterday’s Fed statement…as of 7:00 am Pacific, bullion is off $13 an ounce at $1,211…Cobalt is the star today, up $1.81 a pound to $24.72…Silver has retreated 33 cents to $14.09…Copper, Nickel and Zinc are all under mild pressure at $2.76, $5.16 and $1.16, respectively…Crude Oil has tumbled another $1.28 a barrel to $59.59…this is Crude’s 10th straight losing session, its worst streak in 3 decades, as WTI slips below $60 for the first time since March…the U.S. Dollar Index is up half a point at 96.67…as expected, the Fed decided yesterday to leave its benchmark interest rate unchanged but comments by the central bank suggested it was on course to continue hiking rates…a preliminary reading on U.S. consumer sentiment for November came in slightly above expectations this morning…the University of Michigan’s Surveys of Consumers showed consumer sentiment hit 98.3…economists generally expected the preliminary read to come in at 98, slightly below a prior read of 99…
2. U.S. wholesale prices rose by the most in 6 years last month, led higher by more expensive gas, food, and chemicals…the Labor Department said this morning that the producer price index, which measures price increases before they reach the consumer, leapt 0.6% in October, after a smaller 0.2% rise in September…producer prices increased 2.9% from a year earlier…excluding the volatile food and energy categories, core wholesale prices rose 0.5% in October and 2.6% from a year earlier…despite last month’s increase, the figures suggest inflation pressures are mostly in check…the year-over-year price increase is lower than it was in the summer when it topped 3%…and Oil prices declined in October, which will likely lower gas costs in the coming months…
3. The Trump administration will surely challenge this, and so it should: A liberal federal judge with a radical “climate change” agenda, appointed of course by Obama, has blocked construction of TransCanada’s $10 billion Keystone Pipeline to allow more time to study the potential environmental impact…U.S. District Judge Brian Morris’ order yesterday was cheered by his environmentalist friends and came as the Calgary-based energy giant was preparing to build the first stages of the Oil pipeline in northern Montana…Indigenous and environmental groups had sued TransCanada and the U.S. Department of State after Nebraska authorities approved an alternative route to the one TransCanada had proposed through the state…the groups argued the U.S. State Department violated several acts in issuing a Presidential permit for the pipeline without a proper environmental assessment of the changed route…Morris said in his decision yesterday that the government’s analysis didn’t fully study the cumulative effects of greenhouse gas emissions, the effects of current Oil prices on the pipeline’s viability or include updated modelling of potential Oil spills…the proposed 1,897-km pipeline would carry Crude from Hardisty, Alberta, to Steel City, Nebraska…2 other export pipelines, the expansion of the TransMountain pipeline bought by Canada’s federal government and Enbridge’s Line 3 pipeline replacement also face uncertainty due to climate change extremists…
4. Follow the money: Medmen Enterprises (MMEN, CSE) has entered into a $120 million bought deal with Canaccord Genuity…the firm has agreed to purchase, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, 17.6 million units of the company at a price per unit of $6.80 for gross proceeds of $120 million…if the overallotment option is exercised in full, an additional $18 million will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be approximately $138 million…MMEN is off 79 cents at $6.59 as of 7:00 am Pacific…in an October 25 news release, CEO and co-founder Adam Bierman stated, “Since becoming a public company in May of this year, we’ve been singularly focused on our vision to mainstream marijuana and I’m proud to say that our hard work and the significant investments we’ve made in building our operating platform and team are paying off. For fiscal 2018, we delivered solid revenues of almost $40 million and over half of that was in the 4th quarter alone, indicative of the strong momentum in our business and our growth potential. 2018 is a year of many milestones, including the pending PharmaCann acquisition; closed and pending expansions to northern California, Illinois, Arizona and Florida; successes in accessing the capital markets; and the launch of our suite of [statemade] products and brand strategy. With our strengthened board of directors and management team, diverse asset base and strong balance sheet, we believe we are well positioned to capture the future potential of the evolving cannabis industry”…
5. The Dow is off 158 points through the first 30 minutes of trading…Caterpillar and General Motors are weak…disappointing data out of China dampened sentiment on Wall Street…the country’s top auto industry association said sales in China fell 11.7% last month, marking the 4th straight monthly decline…in Toronto, the TSX is down 115 points while the Venture has fallen 10 points to 657…the Supreme Court of Canada has cleared the way for the creation of a cooperative federal-provincial securities regulator to govern the country’s capital markets…the Court ruled that the draft legislation to create the regulator did not exceed Ottawa’s authority, trumping an earlier Quebec court ruling that was appealed by Ottawa, as well as the provinces of British Columbia and Quebec…Westhaven Ventures (WHN, TSX-V) announced this morning that it has commenced an airborne geophysical survey across its 2,784-hectare Skoonka and 6,167-hectare Skoonka North Gold properties, located within the prospective Spences Bridge Gold belt (SBGB)…the aim is to determine structural controls that may be associated with additional zones of Gold-Silver mineralized veins…we’re keeping a close eye on developments in the Gowganda area of Northern Ontario where Canada Cobalt (CCW, TSX-V) and iMetal Resources (IMR, TSX-V) are gaining strength, technically and fundamentally, with separate discovery situations…Pretium Resources (PVG, TSX) has reported Q3 net earnings of $10.7 million (U.S.) or 6 cents per share on total revenue of $110.1 million…Brucejack production in Q3 was 92,641 ounces of Gold at a mill feed grade of 12.4 g/t…
6. A blow for Eskay Mining (ESK, TSX-V)?…SSR Mining (SSRM, TSX), formerly Silver Standard, has advised Eskay Mining it intends to terminate the option agreement originally announced in the spring of 2017 and return the SIB property to Eskay by the end of December…ESK is currently analyzing the final results of the 2018 exploration program completed by SSR Mining…geophysical and geological modelling indicates that the favorable and untested stratigraphy extends to the south of the area drilled, and the SIB programs have demonstrated that it is well within reach, according to Eskay President and CEO Mac Balkam…“While we understand that SSR Mining is intending to terminate the agreement, we thank them, and our field crew, for their substantial commitment to exploration at SIB (SSR Mining invested $7.7 million on the property). We are also very excited by the prospect of continuing to explore the large and undrilled tract of Eskay-like stratigraphy that underlies relatively thin cover rocks across most of the SIB property, and perhaps across much of the company’s immediately adjacent Corey Property to the south. The well-executed SSRM programs have clearly shown that this area includes rocks which are similar to those hosting the nearby Eskay Creek Mine deposits, and that they have only begun to be drill-tested. With exploration once again very active at the nearby mine property we remain positive about the prospects at SIB“…the problem for Eskay is that raising money is not the Balkam’s best strength…ESK is off 4 cents at 13 cents as of 7:00 am Pacific, its lowest price since early 2016…
7. The economic opportunities being squandered in Canada by climate change ideologues in positions of power are astounding: The Globe and Mail reported this morning that B.C. Environment Minister George Heyman, the Sierra Club’s Poster Boy, is completing a new “climate action plan” which accounts for massive new greenhouse gas emissions for the first phase of the LNG Canada Project, but dims the prospects for a major West Coast industry…the final investment decision for the $40 billion LNG Canada Project was announced in October…the decision ignited hopes that the province could create a niche, but the project also creates a significant challenge to B.C.’s “climate-change goals”…the first phase of LNG Canada will be responsible for roughly 9% of the total emissions allowed for the province in 2030…the plan includes a cross-province pipeline built by TransCanada…a planned second phase has not yet been approved…in making room for LNG Canada, the hurdles for the dozen or more such projects still on the books in B.C. have become higher…that means any subsequent LNG plant would likely have to rely on emerging electric-drive technology…of course these geniuses aren’t considering the fact that a booming LNG industry in B.C., serving China, would have the effect of lowering China’s emissions…
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