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1. Gold climbed as high as $1,411 overnight, its best level since August 2013…as of 7:00 am Pacific, bullion has retreated to $1,396 but is still up $8 an ounce after yesterday’s breakout move…Gold is hitting record highs in multiple currencies with the exception of course of the U.S. dollar…Silver is off 8 cents at $15.30…breakout point on our short-term chart was $15.23 which needs to hold…Copper is up a penny at $2.70 while Nickel and Zinc are each off slightly at $5.47 and $1.15, respectively…Crude Oil has added 19 cents to $57.35 after yesterday’s surge following the shooting down a U.S. drone in the Strait of Hormuz by Iran…President Trump, anxious to keep Oil prices at bay, said this morning he was in “no hurry” to attack Iran, 1 day after he abruptly called off missile strikes against the country…in a series of tweets, the President wrote that he called off the strike 10 minutes before it was scheduled to happen because he believed the attack would have been disproportionate to the downing of a surveillance drone…the U.S. Dollar Index has backed off another one-tenth of a point to 96.52…slightly disappointing preliminary sentiment data from the manufacturing and service sectors was just released…IHS Markit said its flash U.S. manufacturing Purchasing Managers Index for June declined to a reading of 50.1, down from 50.5 in May…economists were expecting to see a reading of 50.5…at the same time, the firm’s service sector PMI reading dropped to 50.7, down from May’s reading of 50.9 but relatively in line with expectations…according to the report, sentiment within the manufacturing sector is at its lowest point in 117 months…“IHS Markit Flash U.S. Composite PMI Output Index indicated the slowest expansion in overall business activity since May 2016,” the report said…
2. Gold is enjoying its best week in 3 years as the world’s major central banks all sounded dovish tones, with holdings in exchange-traded funds on the rise…dovish commentary from the Federal Reserve, European Central Bank and Bank of Japan, coupled with rising geopolitical tensions in the Middle East, have contributed to the upside momentum…meanwhile, greenback weakness is providing additional support to the precious metal…global exchange-traded-fund holdings of Gold are up nearly 3% for the month to 72.65 million ounces, climbing back toward the January peak of 73.3 million…it’s reasonable to expect continued inflows into Gold and Gold-backed ETFs in the run-up to the July FOMC meeting…the current Gold rally has the potential to go far, according to TD Securities, which has adjusted its latest portfolio target level to $1,485 from $1,360, with a stop-loss at $1,330…“Given that we think this rally will have some legs, we opt to adjust our target to $1,485/oz & stop to $1,330/oz rather than taking profits,” stated TD Securities‘ head of global strategy Bart Melek and commodity strategist Daniel Ghali in the bank’s latest post…the update comes after TD Securities entered the long trade at $1,298, targeting $1,360, citing concerns surrounding the global economy…
3. Bitcoin has jumped 31% in 2 weeks, trading at its best levels since May of last year, and looks set to rise above $10,000 (U.S.)…the leading cryptocurrency by market value rose above $9,740 on Bitstamp earlier today, retracing more than 40% of the drop from the record high of $19,666 reached in December 2017 to the low of $3,122 last December…it’s worth noting that Bitcoin’s latest leg higher is accompanied by a rally in Gold prices…the yellow metal has climbed by as much as $90 an ounce over the past 10 days…
4. Canada’s Senate passed into law 2 controversial natural resource bills last night, just 1 day after it quietly passed a 3rd bill that reinforced a ban on offshore Oil drilling in the Canadian Arctic, quashing any future Oil and gas development in the region…Bill C-48, which would legally enforce a moratorium on Oil tankers in northern B.C., is now set to receive royal assent after it was accepted at 3rd reading in the Senate late Thursday…Bill C-69, an extremely toxic piece of legislation which would overhaul the environmental review process for major resource projects, also passed a 3rd reading…their passage enshrines the bills in Canadian law, ending more than a year of fierce opposition from the resource industry and key provinces…international investors get the message – Trudeau, despite his approval of the Trans Mountain pipeline expansion, continues to diminish Canada’s Oil and gas sector at the same time as the Trump administration has the U.S. Oil and gas sector firing on all cylinders…is it any wonder then that U.S. economic growth is far outpacing Canada’s?…Canadian voters will deliver their verdict in October…
5. The Dow is up slightly through the first 30 minutes of trading…the index is within shouting distance of a new record closing high…word that Vice President Mike Pence would postpone a China policy address amid “positive signs” on trade is music to Wall Street’s ears this morning…in Toronto, the TSX is off 45 points…the Gold Index, which pushed above important resistance at 211 yesterday, is aiming for its 9th straight winning session…the Venture is 2 points lower at 591 thanks to weakness in the cannabis space…Garibaldi Resources (GGI, TSX-V) has hit a fresh 2019 high, up 13 cents at $1.40, as the drills turn at Nickel Mountain…Pure Gold Mining (PGM, TSX-V) has arranged a bought deal financing for gross proceeds of $32.5 million (59.1 million units @ a price of 55 cents per unit)…
6. Canopy Growth (WEED, TSX) is under pressure in early trading after the world’s biggest cannabis company reported a steeper-than-expected loss and weak gross margins…the Smiths Falls, Ontario-based company reported adjusted gross margin of 16% for the fiscal 4th quarter ended March 31…that was well below the consensus analyst estimate of 24% and a decline from 22% in the prior quarter…its loss before interest, taxes, depreciation and amortization was $98 million, much wider than the expected $64 million loss…the results included a beat on top-line results, but a significant miss on gross margin and adjusted earnings expectations…”The 4th quarter wraps up a historic year with major steps taken in Canada to build-out our national platform while scaling all of our processes to bring cannabis to market,” stated President and CEO Bruce Linton…”With more product formats coming to the Canadian market later in the year, we are working hard to ensure that we are ready to hit the ground running with products, formats and brands that Canadians trust”…technically, key nearest resistance is $57 while support is strong around the rising 300-day SMA at $51…
7. Aurora Cannabis (ACB, TSX) is also weak in early trading after releasing its plans for the highly anticipated expansion of the consumer cannabis market into vapes, concentrates and edibles…the company is also preparing to launch a national public awareness campaign this fall, educating consumers, provinces and retailers about the safe usage and consumption of these new derivative products…through a combination of new and enhanced facilities, Aurora intends to produce new, high-quality products across the country in a variety of product categories…“Aurora is the world’s leading producer of high-quality cannabis and we’re ready to introduce high-value product additions to this improved, federally legal market,” stated CEO Terry Booth…“From the beginning, we’ve invested in industry-leading production and distribution technology, and in consumer research to drive products to market that consumers will desire. These things, together with the dynamic partnerships we’ve entered into on the accessory and technology fronts, position us well for this new market launch in December as per Health Canada’s recent regulatory amendments”…
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Asks keep piling up on CCW at 52-week lows…help…any ideas there? Any comment on BNCH?
Comment by Jean — June 21, 2019 @ 10:53 am
Nice volume on CCW today, Jean, and bids and asks are balanced…looks healthy…BNCH has backed off to the Fib. high 20’s support, so no problem there…hard to imagine that it’s not going to have a strong run this summer with high-grade and the amount of drilling they’re doing…
Comment by Jon - BMR — June 21, 2019 @ 11:26 am
Thanks for input…BNCH looked strong then took a whopping…
Comment by Jean — June 21, 2019 @ 1:13 pm
Jon is there a NR about drilling this year? Where are they drilling, and when did they start?
Comment by Don — June 21, 2019 @ 1:17 pm
Don, I’m sure they’ll be laying out their specific summer drilling plans shortly, both for Phase 2 underground and at Castle East. A lot of warrants have been exercised over the past couple of months, including this month, and they’ll be able to do whatever they want – refer to post the other day.
Comment by Jon - BMR — June 21, 2019 @ 2:01 pm
BNCH still looks strong – keep in mind it doubled in price to 40 cents in just 8 sessions.
Comment by Jon - BMR — June 21, 2019 @ 2:07 pm
Ok, thank you. You sure seem confident in Ccw. Received some email Morning Alerts from a friend and decided to check you out. Little surprised with so much going for it it’s at these levels.
Comment by Jean — June 21, 2019 @ 2:59 pm
Jon, are you able to find out roughly how many of the warrants for CCW have been exercised, more specifically the September ones. Thanks
Comment by Danny — June 21, 2019 @ 3:17 pm
Jon, you stated very clearly that the tailings project did not require a permit but simply an amendment to an existing permit. That was six months ago and a new permit couldn’t have taken much longer.
Comment by Patrick — June 21, 2019 @ 3:43 pm
I was really hoping for a close on CCW over .30, hopefully at the very least some .10 warrants got exercised today as the volume was good.
Comment by Danny — June 21, 2019 @ 5:13 pm
Trying to look into that, Danny. Interestingly, only about half of those 10-cent warrants from the previous year ever got exercised. They are so spread out.
Comment by Jon - BMR — June 21, 2019 @ 8:55 pm
Patrick, the tailings program was only introduced at the beginning of March – it has not been 6 months, not even close. Yes, it is an amendment to an existing permit (the company has made that clear) and reference was made by the company to discussions with the Ministry in the May 24 news. At this point it’s a very well developed process that’s expected to come to a successful conclusion in the near future.
Lots has changed in the world of the markets in the past 12 months, Patrick, that would have been hard to predict, including a Cobalt price that has fallen 70% from near $40 to $12.70. However, CCW’s flexibility is certainly one of its strengths, and their ability to really leverage the rise in Silver and Gold prices (to the benefit of what they’re doing on the Cobalt front ) is very apparent and significant to how this company is going to build out, grow and prosper. I’ll say it again, we have yet to see the highs in CCW, hence I’m not going to be shy about the importance of accumulating.
Comment by Jon - BMR — June 21, 2019 @ 9:08 pm
Jon, sorry, a bit confused. Silver hasn’t gone up much and we have only heard a bit of gold for CCW but that’s only related to drilling? I’m assuming stay tuned there? Sorry, just don’t understanding the leveraging.
Comment by Jean — June 22, 2019 @ 3:40 am
Jon…just wondering what your thoughts are now re:GGM in light of the move in gold? It has been dormant
for so long, and with a mining permit in hand, do you think they can finally generate some revenue and hence
enough market interest to move the stock price dramatically? One would think that funding terms for the project
could also improve if gold continues its run. At some point would you consider this a buy again?
…..thanks as always……
Comment by bob — June 22, 2019 @ 5:36 am
First off, Jean, it’s quite clear Silver is on the cusp of a very significant breakout – $15.20’s is key resistance, and it’s now poking above that. Once Silver gets into a groove, it has a tendency to run hard. Gold-Silver ratio is at historical extremes, so Silver has a lot of catching up to do.
Every $1 (U.S) increase in Silver is an additional $780,000 CDN annually that would go straight to the bottom line (profit) of CCW, based on conservative number crunching for extraction program (about $1 million per month total revenue at $16 U.S. Silver). This doesn’t include any Gold that reports to the concentrate as there is Gold in the system.
That’s just one way of leveraging Silver (and Gold), but very significant for any junior when you have created a very low cost environment by moving minimal rock (simple pumping system from point A to point B, 300-m distance, with spiral concentrators already in hand).
Meanwhile, on first level of mine, ample opportunity for quick bonanza grade Silver recovery from material that’s essentially right at surface – blasting will help.
Interesting opportunities of course on Gold exploration front as different deposit types are possible east and north of the 3 past producing Silver operations.
Comment by Jon - BMR — June 22, 2019 @ 6:35 am
Why won’t CCW publish these figures? I’m assuming the government needs to review all the data before giving the permit to proceed? When can they start pulling ore from the 1st level and process it?
Comment by Jean — June 22, 2019 @ 6:48 am
Ministry doesn’t care about those numbers, Jean, and of course they can’t be published without a feasibility study which would be a ridiculous waste of time and money for something so simple that Wood (engineering group) has a very good handle on.
Again, it’s an ammendment to an existing permit, not a new permit. First level will be very active this summer in terms of drilling, blasting and removing mineralized material.
Comment by Jon - BMR — June 22, 2019 @ 7:05 am
Ok, thanks. I keep hearing how much they could make – I get the efficiency and recovery. Just haven’t seen concrete $s yet. Just making sure I’m not missing something. I understand the area is very rich in silver.
Comment by Jean — June 22, 2019 @ 7:30 am
Mr. Jon, do you think it’d be healthy to see ggi test a short-term Ema?
Comment by Jean — June 23, 2019 @ 12:07 pm
We’ll cover that in our Sunday Sizzler with an updated chart, Jean, but I believe you’re correct.
Comment by Jon - BMR — June 23, 2019 @ 12:50 pm
Jon are you heading back to the cobalt camp this week? I’m hoping to here from Ccw this week…
Comment by Dwight — June 23, 2019 @ 3:29 pm
Jon..no comment on GGM?
Comment by bob — June 24, 2019 @ 8:30 am
I will, Bob, later today…just haven’t been able to get to it yet…
Comment by Jon - BMR — June 24, 2019 @ 8:33 am
Bob, the Granada Property is a gem – but there are some issues, of course. This was a property we identified as a prime discovery opportunity in late 2009/beginning of 2010, and surged from pennies to nearly a dollar on some great drill results confirming a discovery. However, the bear market that followed in 2011 didn’t help, and environmental radicalism took hold with a new provincial govt. (gave GBB lots of grief) and then spread to some of the municipalities. Quebec in general is out of favor with a lot of investors at the moment given how Granada and many other resource situations have been handled there – Basa has had a battle with anti-mining forces around Rouyn-Noranda.
GGM is tremendously undervalued given the current resource + high-grade potential to the north, at a time of near record-high Gold in Canadian dollars. However, company needs a total rebranding and of course a financial infusion – and the problem of the anti-mining extremists in the area needs to be addressed in a more effective way.
Comment by Jon - BMR — June 24, 2019 @ 7:03 pm
Thanks for the reply Jon…doesn’t seem to be much positive going for GGM other than the rising gold price…a custom milling agreement also seems to be elusive at this time. Really a shame that this has been derailed by environmentalists.
Comment by bob — June 25, 2019 @ 5:40 am