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1. Gold has traded between $1,277 and $1,285 so far today…as of 7:00 am Pacific, Gold is up $3 an ounce at $1,282…global Gold ETF holdings are at their highest since April 2013, according to BMO Global Commodities Research…“We expect further inflows through February, as we head towards a period in March with considerable macroeconomic events with uncertain outcomes,” stated BMO analyst Colin Hamilton…meanwhile, central banks around the world are also continuing to add Gold to their reserves…“The latest IMF release show[s] Kazakhstan, Brazil, India and Russia all having additional purchases in November,” Hamilton noted…Silver, with strong technical support at $15, is up 3 pennies at $15.26…Copper is flat at $2.69…Nickel has retreated 4 cents to $5.25 while Zinc is steady at $1.17…Crude Oil has pulled back 88 cents a barrel to $52.92 while the U.S. Dollar Index is up one-tenth of a point at 96.40…Ontario Premier Doug Ford has turned up the heat on Trudeau’s deeply flawed National Energy Program, warning that Ottawa’s carbon tax scheme will plunge Canada into recession…during a speech at the Economic Club of Canada yesterday, Ford said there are already signs of challenging economic times ahead and a carbon tax (which federal and state governments in the U.S. have refused to introduce) will kill jobs and hurt productivity…“I’m here today to ring the warning bell that the risk of a carbon tax recession is very, very real,” Ford said…
2. Nickel prices climbed more than 8% the past 2 weeks, hitting 10-week highs and supporting Macquarie Bank’s contention that that the metal will be the #1 commodity over the next 12 months…stockpiles are low…Macquarie also believes Nickel will be the 2nd-best performing commodity behind Uranium over the next 5 years…after Nickel very briefly touched $7 a pound last June, a 3-year high, a number of large Indonesian Nickel smelter projects were announced, stoking oversupply fears and pushing down prices…there was a widespread perception (misperception) that all of this declared Nickel tonnage could come to market at the same time and quickly – as early as the 2nd half of 2019 – but Wood Mackenzie disagrees…“Our view is that the timelines will be longer than implied so that the amount of Nickel coming to the market will be smaller, slower and more costly than so far alluded to. This should be reassuring to the market. In fact, a consequent absence of commissioning news in the 2nd half of 2019 should support higher prices”…
3. Shale Oil will impact have “huge implications” for global energy markets for many years…that’s the view of Fatih Birol, the executive director at the International Energy Agency (IEA), who was interviewed on CNBC this morning from the World Economic Forum in Davos…“We will see huge implications of shale, both for Oil and gas, for many years to come,” he said, adding that prices in 2019 should face renewed pressure with Permian Basin output in western Texas and southeastern New Mexico set to ramp up…“A huge amount of pipeline capacity is coming in the Permian. Sixty-six percent growth compared to previous years, so the U.S. oil industry’s ability to react to the market is much faster and bolder now”…the Paris-based IEA said last week that the United States is on track to reaffirm its position as the world’s biggest producer of Crude by volume during 2019…“While the other two giants voluntarily cut output, the U.S. – already the biggest liquids supplier – will reinforce its leadership as the world’s #1 Crude producer,” the IEA said in its monthly report Friday…
4. RNC Minerals (RNX, TSX) is up another 7 cents at 74 cents on heavy volume in early trading after releasing underground drill results from 46 holes totalling 5,766 m at Beta Hunt…highlights included WFN-029 (Western Flanks) which returned 1,017 g/t Au over 2 m including 7,621 g/t over 0.27 m, and AZ15–013 (A Zone near Father’s Day Vein discovery) which cut 119 g/t over 6.4 m including 1,406 g/t over half a meter (estimated true widths)…drilling was carried out in both the A Zone and Western Flanks areas of the mine, with initial holes focused on more clearly defining the sediment layer in close proximity to the Father’s Day Vein discovery and, for the first time, testing the sediment layer in Western Flanks…Mark Selby, President and CEO, stated, “After the historic Father’s Day Vein discovery, we have taken steps to test the theory that the newly identified property-wide sedimentary layer carries the potential for further high grade discoveries in the four main shear zones at Beta Hunt. This potential has been highlighted by one of our first set of holes at Western Flanks targeting the sediment layer in one small section of the shear that yielded a 7,621 g/t intersection of coarse Gold – which to our knowledge is the highest grade drill intersection by any reporting company since 2017 and is located within 45 metres of our existing development. The second high-grade intersection located in the A Zone shear just 7 metres below the Father’s Day Vein highlights the potential for further high grade coarse Gold from this shear. RNC is in an enviable position with the recently completed financing, and a 40,000 m drill program underway to unlock the significant exploration potential at Beta Hunt. A more comprehensive drilling update will be provided in February”…a further 37 holes comprising 4,198 m have been drilled for which results are pending…
5. The Dow has lost 156 points through the first 30 minutes of trading…U.S. equity markets were closed yesterday when the International Monetary Fund (IMF) cut its global growth rate to 3.5% in 2019 and 3.6% for 2020, its 2nd downward revision in 3 months…in Toronto, the TSX is down 122 points…the index is on a 12-session winning streak (in jeopardy today), having climbed 1,141 points or 8% during that time which represents the strongest start to any year since 1980…the Venture is off 2 points at 595…Red Mountain displayed more of its prolific grade potential this morning…IDM Mining (IDM, TSX-V) has cut 9.8 m averaging 65.1 g/t Au and 313 g/t Ag (at least 70% true width), including 1.74 m @ 277 g/t Au and 1,442 g/t Ag, in the new Lacasse zone, 1 of multiple high-grade intersections from a final batch of 2018 underground drill results from Red Mountain near Stewart…the Lacasse zone intercept is one of the highest-grade holes ever drilled into at Red Mountain…a revised geological interpretation of the deposit has identified high-amplitude, post mineralization folds that have deformed the mineralized zones, rather than the previous model that interpreted parallel zones…exploration success has validated this model and has opened up multiple areas for future drilling targeting resource expansion…IDM and Ascot Resources (AOT, TSX.V) are joining forces in an amalgamation that should drive a lot of synergies and produce a very attractive stock play by the 2nd half of 2019…
6. Chemesis International (CSI, CSE) has arranged a strategic partnership with Dank City, a social media marketing company specializing in cannabis products and brands…Dank City will be the primary advertising component for the Jay and Silent Bob’s Private Stash cannabis line of products, as well as other brands affiliated with Chemesis…Dank City owns and operates the largest cannabis social media network with a reach of over 100 million followers across all their social platforms…they also have a subscription box (Daily High Club) that reaches over 15,000 customers every month, a cannabis magazine (Chronic Journal), and a platform for cannabis content creators (The Weedtube)…“Chemesis believes this partnership with Dank City and their worldwide reach will not only generate significant interest in Jay and Silent Bob’s Private Stash, but Chemesis’s other affiliated brands,” said CEO of Chemesis, Edgar Montero…“Dank City has built a media firm that has the ability to effectively target the U.S. cannabis consumer base. As Chemesis continues its growth, this vital partnership will allow the company to quickly reach cannabis consumers with our expanding product catalogue”…CSI is up a nickel at $1.68 through the first 30 minutes of trading…
7. Food companies hoping to make cannabis-infused edibles are warning that Ottawa’s proposed regulations are overly restrictive and costly, perhaps prohibitively so for traditional manufacturers, according to a report in today’s Globe and Mail…edibles, such as cannabis-infused brownies, chocolates or teas, will become legal later this year as part of the federal government’s 2nd phase of cannabis legalization…until recently, the prospect of a new, high-margin legal product category had caught the imagination of Canadian food producers…Health Canada’s draft regulations for edibles, concentrates and topicals, however, have dampened that enthusiasm…according to the proposed rules, traditional food products and cannabis edibles cannot be manufactured in the same building…even food companies with experience keeping segregated kitchens within a single building for allergenic purposes will be required to build or lease separate facilities to make cannabis products…that regulation effectively doubles the capital cost and operating costs to traditional food operators who want to get into the space…
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