Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,281 and $1,296 so far today…as of 7:00 am Pacific, bullion has jumped $13 an ounce to $1,294 as the greenback takes a hit with the Dollar Index currently off one-third of a point at 96.26…Gold appears poised to close at a technically bullish weekly high which should draw more buying interest at the start of next week…key psychological and technical resistance is $1,300…Silver has shot up 39 cents to $15.57…key support held at $15 and Silver will really start to shine once it overcomes resistance in the $15.70’s…base metals continue a favorable trend…Copper is up 3 cents at $2.71 while Nickel and Zinc have each gained a penny to $5.33 and $1.20, respectively…Zinc is now at a 3-month high on worries that weak refined output in China could send the global market into deficit…Crude Oil has climbed 39 cents to $53.52…rail-car loadings of heavy Canadian Crude hit a record 356,000 barrels a day in the week ended January 11, up from a daily average of 296,000 barrels in December…Oil by pipeline is more efficient, less risky and more environmentally friendly – but that’s what the anti-pipeline craziness has led to…Canadians are letting foreign activists and a vocal extremist minority within Canada screw their country…earlier this week, the City of Victoria announced plans to launch a class action lawsuit against the Oil and gas sector…the idea is to tally up the various “damages” done to the city by “climate change” and send the bill to the likes of Suncor or CRNL…
2. Global stocks climbed today to reverse most of the week’s declines as investors assessed fresh signals on the health of the corporate sector…downbeat readings on the world economy negatively impacted stocks at the beginning of the week…however, encouraging corporate results have also helped many markets recover those losses…of the S&P 500 companies that reported Q4 earnings through yesterday, 75% beat analyst expectations, according to Refinitiv…most of today’s gains in Europe and Asia came from more economically sensitive corners of the market including banks, autos, industrials and energy companies, all of which have been at the forefront of January’s rebound in stocks…this comes after very steep falls in those sectors in the final weeks of 2018 as investors grew overly pessimistic about the U.S. and global economic outlook, thanks in part to negative mainstream media headlines…
3. S&P 500 companies will execute $800 billion in buybacks and return an additional $500 billion through dividends this year, according to J.P. Morgan’s U.S. stock strategist…“Despite the recent market volatility, buyback activity has been very strong during the 4th quarter and we expect it to remain robust,” writes Dubravko Lakos-Bujas…Canaccord Genuity echoes that call, saying that equity prices are “near the point” where buyback desks would likely feel the pressure to purchase and chase equities higher…
4. The Dow, on track for its 5th straight weekly gain, has jumped 224 points as of 7:00 am Pacific…traders responded positively to a report in The Wall Street Journal this morning that the Fed is weighing an earlier-than-expected end to its bond portfolio run-off…the bar is set low for Apple’s earnings next Tuesday, so Morgan Stanley believes it’s a good time to buy the stock…the firm says investors have already lowered their expectations for Apple’s December numbers following the January 2 guidance, so next week’s report will unlikely tank the stock further…all eyes will be on any forecast for the current quarter…here’s a switch – a Venture-listed tech company has announced a “change of business” as it moves into the resource sector…Eurocontrol Technics Group (EUO, TSX-V), which last traded at 3 cents, has entered into an asset purchase agreement to acquire Sable Resources‘ (SAE, TSX-V) properties in British Columbia…completion of the transaction is subject to regulatory approval and certain other conditions…Eurocontrol will carry out a 1-for-4 share rollback, change its name to Talisker Resources and list on the CSE…Andres Tinajero, the current CFO of Eurocontrol, is an independent director of Sable…Roscan Gold (ROS, TSX-V) is moving in early trading after reporting a new drilling discovery yesterday at its property in Mali, West Africa, including 8.5 g/t Au over 18 m…Charlotte’s Web (CWEB, CSE) has hit a new all-time high of $18.93 in early trading on the CSE….
5. Khiron Life Sciences (KHRN, TSX-V) is up on news that it’s significantly expanding its cultivation capacity to a 3rd jurisdiction…the company has entered into a binding letter agreement to acquire 100% of NettaGrowth International, an arm’s-length party, which will own, at the time of completion of the transaction, all the outstanding shares of Dormul SA (doing business as Cannapur)…Dormul has obtained the first licence to produce medical cannabis with THC for commercialization in Uruguay…through the Mercosur Regional Free Trade Bloc, Khiron will also gain access to an export market of approximately 75 million people in Southern Brazil…as consideration for the acquisition of NettaGrowth International, Khiron will issue 8.5 million common shares to the shareholders of NettaGrowth International, at a deemed price of $1.61 per common share…
6. No urgency among most politicians in Canada when it comes to getting our Oil to market, but pot of course is a much different matter…consumers in Ontario will soon be able to smoke pot on the same day they place an on-line order…3 months after the legalization of recreational weed, Ontario remains the only province with no same-day access to legal pot, but faster marijuana delivery to the country’s largest market is weeks away…bidders have until early February to express interest in a $450,000 contract to provide “expedited/same-day home delivery service” for the Ontario Cannabis Store starting March 1, and lasting until 2021, say documents posted on a provincial procurement web site…the OCS says it is “undertaking a competitive bidding process [and] looks forward to announcing a timeline and service territory for launch of same-day service as soon as an agreement is finalized and the service offering has been clearly defined”…the OCS has not said how much of the province it intends to serve with same-day delivery..
7. Nickel prices are up nearly 10% the past 3 weeks and long-term charts are showing a potential dramatic run in 2019…Macquarie Bank says 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”…
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It is Friday @ 4.00pm….”How GREEN is my portfolio”.
Comment by John BMR — January 25, 2019 @ 1:05 pm
John I guess it must be full of weed stocks! Your doing well then. Just made me realize that when the government of Canadabis talked about going green, they weren’t actually referring to the environment, they were talking pot. Oh well. The only green I see at 4:00pm on a friday is the hops in my beer. Cheers 🙂
Comment by DBReese — January 25, 2019 @ 8:04 pm
Hi DBReese…I
was actually referring to Friday’s trading.
Comment by John - BMR — January 26, 2019 @ 6:51 am
Ah yes, thanks, now I see. It was definitely a green day, a wonderful color for a portfolio. Looking forward to next week.
Comment by DBReese — January 26, 2019 @ 10:57 am
Sad news – BMR can confirm that Everett Makela, Garibaldi’s VP-Exploration, has passed away suddenly. May he Rest in Peace.
We’ll have more about Everett, and the great contribution he made to the discovery of the Golden Triangle’s first Nickel-Copper-rich massive sulphide system, in our Sunday Sizzler.
Comment by Jon - BMR — January 26, 2019 @ 3:13 pm
Sad to hear about the suddden passing of Everett Makela. What a shock. Our prayers go out to his family and friends.
Comment by Bryan — January 27, 2019 @ 6:17 am
Very very sad, my condolences to his family. His enthusiasm will never leave me.
Comment by Laddy — January 27, 2019 @ 7:32 am
Very sad. Laddy you are right about enthusiasm, one of the reasons I enjoy going to PDAC is talking to geologists. They love what they do and are always so excited about the projects they are working on. They are eternal optimists. He lived doing what he loved to do. Condolences to the family.
Comment by Danny — January 27, 2019 @ 7:42 am
Extremely sad news – My condolences to his family as well. I’ll never forget his enthusiasm for the rocks at Nickel Mountain.
Comment by Dan1 — January 27, 2019 @ 8:04 am
I suspect that in memory of Everett, who was really the initial spark at Nickel Mountain, the rest of the Nickel Ninjas will double down on their efforts to confirm this discovery as one of the richest Nickel sulphide deposits on the planet and one that has the tonnage, as Makela suspected, to quickly turn into a mine.
Comment by Jon - BMR — January 27, 2019 @ 8:14 am
Wow, very well said everyone. And thanks for providing the snippets into the man who loved “The Rocks” Jon and look forward to your words this evening. I have no doubt he’ll be guiding the drills from above the rest of the way…
Comment by Jon (not BMR Jon) — January 27, 2019 @ 11:47 am