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1. Gold has traded between $1,224 and $1,236 so far today, hitting a fresh 1-month high…as of 7:00 am Pacific, bullion is up $11 an ounce at $1,236 with the U.S. dollar pulling back following the G-20 meetings in Argentina over the weekend and a “trade truce” between the U.S. and China…Silver has jumped 31 cents to $14.47…Copper, at a 2-month high, is up 4 cents at $2.87 as it attempts to push through important resistance between $2.86 and $2.90…Nickel is flat at $5.04 while Zinc has added a penny to $1.21…Cobalt remains unchanged at $25.06…Crude Oil has rebounded $2 a barrel to $52.96…Qatar announced this morning that it will leave OPEC next month…a member since 1961, Qatar is leaving to focus on its LNG production, Energy Minister Saad Sherida Al-Kaabi told a news conference in Doha this morning…he didn’t mention the political backdrop to the decision: dire relations with Saudi Arabia which has led a blockade against his country since 2017…the Middle East is as toxic as ever…the U.S. Dollar Index is off one-fifth of a point at 96.87…President Trump caught the mainstream media off guard again this morning, declaring that U.S. defense spending is “crazy” as he tweeted that the U.S., China and Russia would “at some time in the future” begin talks to end what he described as an uncontrollable arms race…
2. It reflects so badly on Canada that Alberta, shafted by the “climate change” ideologues in the federal government and the Green Monster in B.C., has had to take this latest action to help protect its economy – starting next month, the province will impose mandatory production cuts on the energy sector as announced last night by Premier Notley…of course this comes just days after another announcement from Alberta that it’s proposing to buy a massive fleet of rail tankers, capable of shipping 120,000 barrels of Oil a day to ports for export…these desperate government measures are aimed at propping up prices for Canadian Crude that have been driven to record lows due to a lack of pipeline capacity in this country…approval for Northern Gateway was overturned by the Trudeau Liberals, Energy East was sabotaged by Team Trudeau to help protect seats in Quebec, and TransMountain was turned into a fiasco by Team Trudeau with help from the new NDP-Green regime in British Columbia…the end result has been devastating for Alberta, but that’s not the first time the province and the West in general have been screwed by Ottawa…though it’s most evident in Alberta, the entire country is taking a hit as our inability to efficiently move Oil to market is estimated to be costing the national economy anywhere between $50 million to $100 million each and every day…that is almost criminal…so-called “compassionate” liberals, globalists who worship their false green gods in a naive attempt at “saving the planet”, don’t give a damn about lost jobs in the Oil sector and the families they have hurt in Western Canada…Notley’s move to force an 8.7% production cut is an extraordinary intervention, a step taken with the encouragement of some but not all Oil producers…the hope is that it will be temporary, short and effective – improving company cash flows, bolstering government revenues and staving off further layoffs…yesterday, Cenovus CEO Alex Pourbaix commended the Premier for making “the difficult but necessary decision”, while Canadian Natural Resources called the action “swift and bold”…in contrast, companies with their own refineries and retail operations – Suncor, Husky Energy and Imperial Oil – maintain the market is working, pointing to the fact some companies were already reducing production…“Our view remains that free markets work and intervention carries trade risks and sends a negative message to investors about doing business in Alberta and Canada,” Imperial Oil CEO Rich Kruger said in a statement…
3. President Trump, fresh off his meeting with China’s President Xi Jinping in Argentina, said this morning that U.S.-China relations have taken a “big leap forward” and that American farmers would be the “big and fast beneficiary” of renewed talks…in a series of tweets, the President reflected on Saturday’s meeting with his Chinese counterpart, which resulted in a truce in the trade dispute between the U.S. and China and eliminated, for now, the potential for an additional round of tariffs…“My meeting in Argentina with President Xi of China was an extraordinary one,” Trump tweeted…“Relations with China have taken a BIG leap forward! Very good things will happen. We are dealing from great strength, but China likewise has much to gain if and when a deal is completed. Level the field!”…realistically, a trade deal that addresses all the complaints that the U.S. has about China would take years to negotiate, Dutch bank ING warned in a note yesterday…“Ninety days to work out a broad agreement is very short. Especially because the agreement should also encompass a deal on more sensitive issues like the theft of intellectual property and forced technology transfers in joint ventures. Most wide-ranging bilateral trade agreements take years to negotiate”…historically, ING is correct but a businessman like Trump has never occupied the White House before…nonetheless, we likely haven’t seen the end of trade volatility between the U.S. and China – renewed friction can be expected in 2019 as negotiations intensify…
4. The hedge fund manager who targeted Greek retailer Folli Follie SA is now attacking one of the biggest pot companies in Canada…Gabriel Grego, founder of Quintessential Capital Management, told a conference in New York this morning that Aphria (APHA, TSX) has diverted about half of its net assets into inflated investments held by insiders…he says that the company, which had a $2 billion (U.S.) market capitalization last week, is a “black hole”, according to a report he ran in conjunction with Hindenburg Research, a forensic analysis firm based in New York…both firms have been shorting Aphria which has tumbled as low as $7.38 in early trading, down $3.13 from Friday’s close…
5. PyroGenesis (PYR, TSX-V) continues to push higher…the company this morning confirmed its Drosite System’s commercial application to Zinc dross with one of India’s biggest primary smelters which has an estimated need of upward of 10 systems within its umbrella of companies…PyroGenesis says its Drosrite System is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry…PyroGenesis’ patented process avoids costly loss of metal while reducing a smelter’s carbon footprint and energy consumption, providing a substantial return on investment… the system has been designed to process and recover valuable metal such as Aluminum, Zinc and Copper from dross…
6. The Dow is up 328 points as of 7:00 am Pacific to begin what will be a trade-shortened week…U.S. markets will be closed Wednesday as part of a national day of mourning following the passing late Friday of George H.W. Bush, the 41st President…historically, December has been the strongest month of the year for North American stocks on an absolute basis…the TSX is up 67 points through the first 30 minutes of trading while the Venture is off a point at 588…technically, the Venture is showing clear signs of a bottoming pattern…a strong support band exists between 575 and 560, meaning it’s highly likely the Index has already found its low or is within just 5% of it…Canopy Growth (WEED, TSX) has entered into 2 agreements with 48North Cannabis (NRTH, TSX-V) – a strategic investment financing and partnership, and a supply agreement…under the supply agreement, 48North will provide Canopy Growth with dried cannabis produced from high-grade, unique genetics, grown at 48North’s wholly-owned facility…the total volume of the supply agreement is estimated to be a minimum of 1,200 kilograms and deliverable over the course of 12 months…under the financing agreement, Canopy will invest $3 million into 48North and receive 4 million common units at 75 cents per unit…NRTH is up 9 cents at 58 cents as of 7:00 am Pacific…Aurora Cannabis (ACB, TSX) announced this morning that it has commenced shipments of its cannabis softgel capsules for both the Canadian medical and adult-use markets…the company expects to commence exports to international markets in early 2019…at scale, the company anticipates that softgel production at its state-of-the-art Aurora Vie facility in Quebec will reach at least 1.4 million capsules per week…Aurora says it intends to make this high-volume, high-margin, smoke-free product available to all of its domestic and international target markets over time where legally possible…
7. MGX Minerals (XMG, CSE) has drilled into high-grade Gold at its Fran Property in north central British Columbia, 30 km southwest of the Mount Milligan Gold-Copper mine…drill hole FR18–95 has returned a broad intercept of Gold mineralization at depth from 227 to 241 m in the Bullion Alley Gold Zone…this has confirmed extension of Gold mineralization in auriferous veins from near-surface to depth…the highest-grade Gold was contained within a quartz-pyrite vein which averaged 21 g/t Au over 2.2 m including 35.9 g/t Au across 0.76 m…the company has re-mobilized a drill to the property with drilling to re-commence this week…the winter 2018 drill program will further test the Main Zone at depth and along strike to the east, as well as test under-explored zones with high-grade historical results proximate to the Main Zone…87 historical holes were drilled at Fran…
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In addition to my last post id like to add i realize #1 cobalt stock this yr.Not talking about that, i’m talking about 1/4ly performance review over the past 3 or 4 months, certainly not the best performer. FCC has done better off ccw news than ccw. Lost momentum declining SP that i would simply award to the oh so common failure to meet timelines. Such a common mistake i dont understand why CEOs do this. He met the last timeline which was a disaster 15min before close apparently because he wanted to meet timeline. Could’ve been a couple days late, wouldn’t have mattered in comparison to now. So a timeline meant something to him then which puts me under the impression he does care and now totally drops the ball. This could easily drop into the 40s, are we then supposed to get excited about a 50% gain back into the 60s on a good NR, where the stock should’ve been if not higher. Tough market this year and this is certainly no way to help matters for the company. Why put a timeline on something out of your control? (labs backed up)Experience should know much better than this! I love the dd you have done on these guys, amazing potential but come on Frank!
Comment by Jeff — December 3, 2018 @ 10:38 am