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1. Gold shot up as high as $1,355 this morning where it ran into resistance once again…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,341…European Central Bank President Mario Draghi said today that the ECB will ease policy again if inflation fails to accelerate, signalling one of the biggest policy reversals of his 8-year tenure…Gold priced in euros also jumped to its highest level since April 2017…Silver is up 5 cents at $14.87…base metals are rebounding with Copper up 3 pennies at $2.67 while Nickel has added 4 cents to $5.37…Zinc is unchanged at $1.17…Crude Oil has jumped $1.19 a barrel to $53.12 while the U.S. Dollar Index is steady at 96.67 ahead of tomorrow’s Fed announcement…equity markets are pushing higher today on fresh optimism surrounding U.S.-China trade talks…President Trump said he’ll be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit, with their respective teams holding talks prior to that meeting…
2. Goldman Sachs is upbeat about Gold prices, looking for the metal to draw support from emerging market demand and rise to around $1,425 in 12 months…in a research report late yesterday, Goldman was bullish on commodities generally due to easier monetary conditions, calling for a 10% 3-month return on the S&P Goldman Sachs Index and a 9% return on a 12-month basis…“In our view, risks are starting to shift to the upside, particularly in emerging markets,” Goldman said…“Unlike last year, the Fed is on hold, interest rates are lower and Oil prices are weaker, all combining for easier financial conditions than last summer/fall. In addition, during the past several weeks, policymakers have demonstrated a willingness to underwrite any demand weakness stemming from trade-war concerns”…
3. Justin Trudeau, trying to be all things to all people, is widely expected to give the green light today to the expansion of the Trans Mountain pipeline, a day after the House of Commons declared a “national climate emergency” (what we really have, something most politicians are simply afraid to address, is a “national competitiveness emergency” which is why the economy is underperforming)…Canadians have never been so poorly served by their elected representatives…meanwhile, anti-resource Bills C-69 and C-48 are closer to becoming law…Trudeau, who has strategically fed anti-Oil rhetoric and climate change hysteria, lacks the desire, courage and skill sets to stand up to the radical far left to ensure that the Trans Mountain expansion actually gets built…more court challenges and delays are certain…Canadians should take pride in being an energy superpower, like its neighbor to the south, but the globalist left in this country (mostly confined to the largest cities) wants nothing to do with that…in the meantime, increasing Oil sands production next year could force a record number of barrels onto rail cars, prolonging financial pain in the Oil patch well before any new pipeline projects come online…Canada could be shipping as much as 500,000 barrels per day of Oil by rail car next year, according to a recent estimate by IHS CERA in Calgary, or roughly 1 out of every 9 barrels produced in the country…in 2016 that ratio was closer to 1 in every 43 barrels produced…shipping by rail is more expensive and actually less environmentally friendly…
4. Cobalt 27 (KBLT, TSX-V) jumped as much as 33% in early trading after a friendly takeover offer…Pala Investments is acquiring Cobalt 27, the 81% it doesn’t already own, for total consideration of approximately $501 million (CDN)…Cobalt 27 shareholders will receive $5.75 per common share, comprising $3.57 in cash plus $2.18 in shares of a newly-listed company to be named Nickel 28 Capital…Nickel 28 will be created to hold Cobalt 27’s joint venture interest in Ramu, a low-cost, long-life producing Nickel-Cobalt mine, and its royalty portfolio on various projects (not including Voisey’s Bay) and certain equity positions…Nickel 28 will be funded with $5 million (U.S.) in cash at inception with no corporate debt…Anthony Milewski, Chairman and CEO of Cobalt 27, commented, “We believe this is a highly compelling offer for Cobalt 27, as the transaction provides shareholders with a large upfront premium. It is also clear that Nickel will be an increasingly critical component of the electric battery revolution, and the creation of Nickel 28 provides shareholders with significant incremental value and continued exposure to the strong fundamentals of battery metals”…Pala will retain a 4.9% interest in Nickel 28, and the current Cobalt 27 leadership team will continue as the board and management of Nickel 28…KBLT is up 93 cents a share at $4.40 as of 7:00 am Pacific…
5. Beyond sense?…shares of Beyond Meat (BYND, NASDAQ) opened at $200 this morning…at the beginning of May, the maker of plant-based meats priced its IPO at $25 per share..excluding this morning’s activity, the company’s stock is up 579% since its IPO, a market value of $9.9 billion…Beyond’s stock price remains well above the price targets of analysts, the highest of which is $123…no one on Wall Street recommends buying the stock anymore because of its hot streak…BYND has been gyrating as analysts have raised concerns about its monster run and short sellers have taken an interest…while the market for meat alternatives is growing more crowded as Tyson Foods and Nestle prepare to launch their own plant-based meat imitations, Beyond has been expanding and improving its own products…
6. The Dow has surged 339 points through the first 30 minutes of trading…Facebook (FB, NASDAQ) formally announced plans this morning to launch a cryptocurrency called Libra, promising a secure blockchain-based payment system backed by hard assets and designed for mainstream users…Facebook named a series of big corporate partners, including financial services heavyweights Mastercard and PayPal and tech giants Uber and Spotify, that it said will help it create a “secure, scalable and reliable” crytocurrency…the Wall Street Journal reported in May the initiative involved the creation of a “stablecoin” – a digital asset backed by a basket of global currencies or other investments…in Toronto, the TSX has added 140 points…the TSX Gold Index climbed as high as 210 in the first 30 minutes of trading, its best level since 2017…key resistance is 213…the Canadian Marijuana Index is starting to recover out of oversold conditions…the Venture is up 3 points at 588 after testing important support yesterday at 585…GoldON Resources (GLD, TSX-V) is adding a 2nd crew to the on-going exploration program at its West Madsen Gold Property recently optioned from Great Bear Resources (GBR, TSX-V)…the 2nd crew will mobilize to West Madsen Block B while the 1st crew continues its focus on West Madsen Block A that is on-strike and contiguous with Pure Gold’s (PGM, TSX-V) Madsen Project…Mars Napoli, with 3 decades’ exploration experience with Inco and Vale, has been appointed VP Exploration for Crystal Lake Mining (CLM, TSX-V)…Napoli is a Gold and Nickel specialist, having started his career in Northern Ontario with the Ministry of Northern Development of Mines, and comes highly recommended by Dr. Peter Lightfoot…“We searched hard for the right candidate and we’re thrilled to have Mars join our team as VP Exploration,” stated Richard Savage, Crystal Lake President and CEO…“His experience with high-grade Gold systems and a broad array of other deposit types will help drive our success this summer with the Newmont Lake Project in the Eskay Camp“…
7. American Pacific Mining’s (USGD, CSE) joint venture partner at the Tuscarora Gold Project, OceanaGold (OGC, TSX), has commenced a comprehensive geophysical survey, known as CSAMT (Controlled Source Audio-frequency Magneto-tellurics)…the study will be conducted by Zonge International, a well-known geophysical services company based in Reno…“This non-intrusive, low-impact CSAMT survey will highlight key target exploration zones, showing the electrically resistive and conductive areas throughout the entire Tuscarora Project area,” commented Eric Saderholm, American Pacific President…“Layering this information with previously collected data will be essential in the design of the fast-approaching drill campaign that OceanaGold will conduct this summer”…CSAMT raw data will be processed and interpreted, with results anticipated in early July…the gravity survey that commenced in May has also been completed and data interpretation is in progress…USGD is unchanged at 15 cents in early trading…
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It’s a matter of when, not if. Tragically lives were lost back in February in field, B.C.. but not anywhere has anyone said “what if “ what if that train had been loaded from front to back with crude, could you imagine the outrage that would have occurred, and for some reason a pipeline is worse than rail.REALLY!! I wonder if foreign money trying to stop the pipeline, would have helped to clean a disaster like that up. Probably not.
Comment by Laddy — June 18, 2019 @ 10:51 am
Holders it seems to me are becoming very frustrated with lack of info from CCW. In this business no news is not good news. Even BMR is or at least should be a little disappointed.
Comment by Carl — June 18, 2019 @ 11:39 am
Jon it looks like More and more people getting out of CCW. Are you still holding? Or are you lightening your position?
Comment by Don — June 18, 2019 @ 12:22 pm
That is not the case at all, Don – no idea why you would even imply such a thing. I’ve actually added to my position these last couple of months – very clear to me where CCW is headed in Q3 and beyond. Watch what happens…hoping some more paper comes loose at these levels (some people haven’t learned from the spring of 2018)…
Comment by Jon - BMR — June 18, 2019 @ 12:29 pm
I totally get the frustration with CCW, I am guessing the .10 warrants are part of the reason for the selling but they could be absorbed quickly if we get good news. I have adjusted my time frame accordingly. I am thinking Q4.
Comment by Danny — June 18, 2019 @ 4:10 pm
I do too. We have no idea if they’re even drilling above or below ground. No above ground assays 8 months later–as late as GGI’s was theirs were released months ago. We really need that amended tailings permit to get approved to get that program rolling…
Comment by Jon (not BMR Jon) — June 18, 2019 @ 8:30 pm