Visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,533 and $1,551 so far today…as of 7:00 am Pacific, bullion is flat at $1,539…the SPDR Gold Trust (GLD) is up nearly 9% this month while the iShares Silver Trust (SLV) has surged around 13%…Silver has climbed another 19 cents to $18.51…the metal now has a clear path to the $20 level…based on chart patterns, it’s highly unlikely Silver will drop below exceptional new support at $17…Nickel, remaining hot, has jumped 17 cents to $7.51 while Copper and Zinc are up slightly at $2.59 and $1.04, respectively…Cobalt remains steady at $14.29…Crude Oil has added 71 cents a barrel to $56.49 while the U.S. Dollar Index has gained one-fifth of a point to 98.39…U.S. economic growth in Q2 (2nd reading) was in line with expectations as the strongest growth in consumer spending in 4-and-a-half years was offset by declining exports and a smaller inventory build…GDP increased at a 2.0% annualized rate, the Commerce Department reported this morning…that was revised down slightly from the 2.1% pace estimated last month…the economy grew at a 3.1% clip in the January-March quarter…
2. China seems to be a little rattled by President Trump, which is a good thing if you’re a U.S. trade negotiator…a spokesman for China’s Ministry of Commerce said today that his country is willing to “calmly” resolve the trade dispute with the United States and is against any further escalation in tensions…“We firmly reject an escalation of the trade war, and are willing to negotiate and collaborate in order to solve this problem with a calm attitude,” stated Gao Feng, according to a CNBC translation of his Mandarin-language remarks…he noted that the Chinese and U.S. trade delegations have maintained “effective” communication…Feng’s remarks gave North American equities another boost today with the Dow surging at the open…President Trump then said in a Fox News Radio interview that the U.S. and China are set to have trade talks today “at a different level”, without elaborating on what “a different level” means…“Let’s see what the end product is; that’s what you have to judge it by,” Trump added…sounds like the President might be having direct discussions with his Chinese counterpart, Xi Jinping…
3. Nickel prices strengthened again today on signs of near-term tight supply on the London Metal Exchange…LME Nickel has jumped about 50% this year amid worries about supply disruption from top producer Indonesia…the premiums of LME cash Nickel over a 3-month contract rose to a decade-high of $97 a tonne, indicating a shortage of nearby supply…1 party holds 50% to 80% of available LME inventories, data showed…meanwhile, a Nickel processing plant owned by Metallurgical Corp of China (MCC) that spilled mine waste into Papua New Guinea’s Basamuk Bay faces compensation claims and possibly closure, the head of the country’s mining authority said today…MCC’s Ramu Nickel plant located in Madang, on the country’s northeastern coast, spilled waste into the bay which caused the surrounding ocean to turn red and left a muddy residue on the rocky shoreline, according to locals and photographs of the incident…MCC’s Basamuk Bay plant produces a mixed Nickel and Cobalt hydroxide product for the battery industry from ore sent by pipeline from the Kurumkukari Nickel and Cobalt mine about 135 km away…
4. Investors can’t keep their eyes off Gold and Silver (and Nickel) but there is another precious metal that continues to outperform even these rising stars…Rhodium appears to be on an unstoppable rally and the sky could be the limit as demand continues to outweigh supply…the precious metal is currently trading at $4,200 an ounce, its highest level since September 2008…the metal is up 82% this year, with the rally picking up momentum since early June…although Rhodium prices remain extremely volatile because of its opaque marketplace, some analysts continue to see higher prices as the market continues to be dominated by growing auto sector demand and shrinking supply…some analysts are keeping an eye on the metal’s 2008 all-time highs just below $10,000…Rhodium is the rarest of all non-radioactive metals…much of the world’s mined Rhodium occurs in South Africa and at Norilsk in Russia…
5. The Dow is up 301 points after the first 30 minutes of trading...improving global risk sentiment was further reinforced by an up move in U.S. Treasury bond yields, which further collaborated toward driving flows away from non-yielding Gold…in Toronto, the TSX has jumped 108 points while the Venture has added 1.5 points to 585.50 as it tries to overcome resistance at its 50-day moving average (SMA)…the Index is also gunning for its 6th consecutive winning session…higher Nickel prices and expectation of fresh results from Nickel Mountain have given Garibaldi Resources (GGI, TSX-V) a boost in early trading with the stock up 7 cents at $1.62…the GGI chart is looking strong going into month-end…Kootenay Silver (KTN, TSX-V) is up slightly after releasing assay results from 4 additional holes at its Columba high-grade vein system in Chihuahua state, Mexico…they included 33.5 m @ 112 g/t Ag (60% to 80% true width)…drilling is ongoing with 16 holes completed to date of a planned 25 to 30-hole Phase 1 program…GoGold Resources (GGD, TSX) hit its highest level (75 cents) since early 2017 at the open this morning, though it has backed off 1 point to 69 cents as of 7:00 am Pacific as it battles nearest resistance at 70 cents…
6. SilverCrest Metals (SIL, TSX) started trading on the TSX this morning, following its graduation from the Venture (the stock is also listed on the NYSE under the symbol “SILV“)…CEO Eric Fier stated, “We are certainly pleased with this recognition of the growing stature of SilverCrest. The acceptance for trading of our common shares on TSX is another significant milestone in the development of our corporate growth. We expect the higher profile afforded by the TSX will give the company exposure to new segments of the investment community and provide greater liquidity for those investors wishing to trade the shares of our company”…yesterday, SilverCrest released initial infill and additional expansion drill results from the Babi Sur vein at its Las Chispas Project in Sonora state… the most significant results were hole BAS19–63 with 3.1 m (true width) grading 8.5 g/t Au and 716.6 g/t Ag (1,355 g/t AgEq) and BAS19–57 which intersected 8.8 m (true width) grading 3.1 g/t Au and 304.6 g/t Ag (536 g/t AgEq)…SIL is off 8 cents at $8.44 as of 7:00 am Pacific…
7. Sable Resources (SAE, TSX-V) has entered into an investment agreement along with an equity subscription agreement with Osisko Gold Royalties (OR, TSX) for potential proceeds of $12.6 million…Sable believes that the deal will provide the company with the funding to progress its exploration objectives over its entire portfolio for the next 4 years…immediately, Osisko is subscribing for 16 million units of Sable at a price of 13 cents per unit for a total of $2,080,000…this increases Osisko’s ownership to approximately 9.86% of the issued and outstanding common shares of Sable on a non-diluted basis…in connection with the financing, Osisko and Sable have also entered into a binding Investment Agreement, the provisions of which include various rights in favor of Osisko…Sable President and CEO Tom Obradovich stated, “This investment by Osisko demonstrates the confidence they have in our exploration team and quality of our projects. The financing offers Sable the opportunity to drill test our permitted Vinata Project as well as our other established drill targets in Mexico, Peru and Argentina with relatively low dilution to our existing shareholders. Exploration and drilling on Vinata will begin immediately after closing of the financing package”…SAE is up 2.5 cents at 14.5 cents through the first 30 minutes of trading…
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GGI bouncing well off the 50-day…sure would be nice to see some stronger volume though…
Comment by Jean — August 29, 2019 @ 9:36 am
The E & L deposit has often been compared to Norilsk. Makes one wonder if perhaps they might find some Rhodium up there as well. Wouldn’t that be a boon ! “The industrial extraction of rhodium is complex because the ores are mixed with other metals such as palladium, silver, platinum, and gold and there are very few rhodium-bearing minerals.” It has been found in North America, including at the copper-nickel sulfide mining area at Sudbury.
Comment by BCCOASTAL — August 29, 2019 @ 10:36 am
It’s just more pathetic games being played targeting the weak and nervous, not much falling off the tree anymore, maybe nr tomorrow or next week, doesn’t matter. Hang tight it’s coming. The Big Bang!!!
Comment by Laddy — August 29, 2019 @ 11:14 am
Nice close for GGI…can’t be far away from an update…
Comment by Jean — August 29, 2019 @ 1:17 pm
Jon, looks like the wall at .30 has been removed for CCW. I have a feeling to PP will close tomorrow. Can you tell us who was in the PP?
Comment by Don — August 29, 2019 @ 2:40 pm
Big move in Nickel this morning, now at $8 a pound – best level since December 2014…
Perfect Storm for GGI – highest grade Nickel massive sulphides in the world and one of the best drill holes in Nickel sulphide exploration in the last 25 years on the way…
Comment by Jon - BMR — August 30, 2019 @ 4:50 am
Mr. Jon, since no GGI news today, I’d assume sometime next week at the latest?
Comment by Jean — August 30, 2019 @ 5:59 am
The day is not over, Jean – maybe Regoci has a mid-day or late day surprise?…however, I hope he waits until after Labor Day (next week) when he has the world’s full attention…EL-19-53 is not only the widest intercept yet in the Discovery area, but it has revealed extremely valuable information about the system according to Dr. Lightfoot…in that sense, it is a major game-changer…
Comment by Jon - BMR — August 30, 2019 @ 6:19 am
With Silver doing what it’s doing, Don, CCW should go ballistic in September – recovering the native Silver from those tailings and targeting a new ore shoot at the Castle mine through underground work and drilling will get this market humming like crazy…
Comment by Jon - BMR — August 30, 2019 @ 6:42 am
Shaping up to be a fun Sep/Oct for several plays!
Comment by flyinthruu — August 30, 2019 @ 9:25 am
GGI breakout looming – mid-$1.80’s about to be shattered with likely gap-up Tuesday am as momentum builds…lots of room on the chart for a massive move…Indonesia bans ore exports after December – majors are going to be scrambling to get their hands on potential future supply…
CCW – breakout confirmed above the downtrend line from the spring…moves following such a breakout can often be explosive…I would look for big things next week from CCW…perhaps the only play withy high-grade Silver and Cobalt, and high-grade Gold…timing couldn’t be better in Sept. for a major update on Castle East…
SCR – new highs today, nice…
Venture move above 50-day could prove to be very significant going into September…equities are going to continue to perform well as economic growth continues, and both equities and metals love what the central banks are doing…
Comment by Jon - BMR — August 30, 2019 @ 10:39 am