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1. Gold has traded between $1,495 and $1,483 so far today…as of 7:00 am Pacific, the yellow metal is off $6 an ounce at $1,486…Gold came under pressure yesterday to begin the new week as U.S. equities continued a bullish trend with the S&P 500 closing at a new record high for the first time in 3 months…$1,500 marks a key psychological level for Gold while critical resistance exists between $1,515 and $1,520…Silver, after shooting above $18 late last week, has eased off another 11 cents to $17.70 but the chart remains constructive…Nickel has added 12 cents to $7.62 while Copper and Zinc are both flat at $2.67 and $1.17, respectively…Crude Oil has slid 89 cents to $54.92 while the Dollar Index is unchanged at 97.76…China’s factory activity is expected to have shrunk for the 6th month in October, a Reuters poll showed, suggesting hardly any let up in pressure on the domestic and export sectors from slowing global demand and a trade battle with the United States…the official Purchasing Managers’ Index (PMI) for October was seen at 49.8, unchanged from September, but still below the 50-point mark that separates expansion from contraction, according to the median forecasts of 35 economists…a British general election aimed at breaking the Brexit deadlock looks set for December after the main opposition Labour Party decided today to back a national ballot…Ontario’s deficit budgets continue to make it the most indebted Canadian province and its credit rating could be cut if economic growth projections fall short, according to a new report by a government analysis agency…net debt stands at $338 billion for fiscal 2018-19, the most debt for a sub-national borrower in the world, the Financial Accountability Office of Ontario said, citing Moody’s Investor Services…much of this debt was racked up, of course, during a 15-year reign by the provincial Liberals under McGuinty and then Wynne, so-called “progressive” governments who saddled future generations with an enormous burden and have little to show for it…as Jack Mintz stated in a Financial Post column this morning, “I am not quite sure how use of the term ‘progressive’ became so common to describe what is basically old-style socialism”…
2. Three major factors are behind the S&P 500’s drive to a new all-time high – progress in trade talks, better-than-expected corporate profits and a likely Fed rate cut tomorrow…however, there’s a chance that tomorrow’s cut could be a “hawkish” one…all eyes tomorrow will be on whether the FOMC statement changes its pledge to “act as appropriate to sustain the expansion” – an indicator of future rate cuts – to wording that appears less committed to further easing…there is no new economic or interest rate forecast from the Fed tomorrow, so its communications will be limited to the post-meeting statement and comments from Fed Chairman Jerome Powell at his press briefing…meanwhile, bubbling under the surface is recent stress in the short-term funding markets…Powell will surely be questioned on this by reporters…market pros say it’s possible the Fed may ultimately have to expand its balance sheet even more through a new quantitative easing program, in addition to steps it has already taken…it also is expected to make a permanent, standing repo operation, instead of just temporary ones…
3. The Dow is up slightly as of 7:00 am Pacific…the S&P 500 hit a new all-time high yesterday just ahead of what is typically the best 2 months of the year for U.S. equities, November and December…not a good day, though, for Beyond Meat (BYND, NASDAQ) which has plunged nearly 20%…today is the first time since the IPO that insiders can sell the stock…roughly 75% to 80% of the outstanding stock is available to trade following the lockup expiration…in Toronto, the TSX is off 16 points while the Venture has lost 2 points to 539…Wallbridge Mining (WM, TSX), which has jumped nearly 70% in value since announcing a whopper of a drill hole result last week, announced this morning that it has expanded its relationship with Lonmin Ltd., a wholly-owned subsidiary of Sibanye-Stillwater…Lonmin will engage the services of Wallbridge to operate and manage all operations of Lonmin in Canada directed by Sibayne-Stillwater, including the advanced stage Dennison Property, through privately-held Loncan…aside from existing joint venture agreements with Wallbridge, Lonmin owns a 100% interest in Dennison which was previously part of its JV agreement with Vale Canada…Wallbridge gets a 20% ownership interest in Loncan and a seat on its board of directors…Wallbridge will also receive compensation in the form of cash and/or shares of Loncan and additional compensation for milestones achieved in the development of projects as agreed upon by both parties at a later date…“This agreement complements Wallbridge’s strategy of separating its Gold and base metal assets and enables work on the Sudbury-area properties to be funded entirely within privately-held Loncan,” stated Marz Kord, President and CEO of Wallbridge…”Distinct operating teams will advance development of our Fenelon Gold Property and will work to unlock the value of our Copper-Nickel-PGM assets separately. The agreement allows our existing, dedicated, Sudbury-based team to continue their work of generating value from the Copper-Nickel-PGM assets with resources independent of those driving our Gold strategy”…Dennison features significant historic resources of typical contact and footwall-type Ni-Cu-PGM mineralization of potential economic grades…highlight intersections from drilling in recent years (currently not part of any resource estimate) include 1.69% Ni, 2.28% Cu and 2.37 g/t Pt, Pd and Au (total precious metals, “TPM”) over 8.23 m in the 99 Shaft zone and 1.87% Ni, 0.95% Cu and 3.14 g/t TPM over 6.16 m in the 109 West zone…Wallbridge is up another 3 cents at 62 cents in early trading, while Fenelon neighbor Balmoral Resources (BAR, TSX-V) has added a penny to 21.5 cents…
4. Radisson Mining (RDS, TSX-V) is one of the few junior exploration companies that has been on a gradual uptrend throughout 2019…this morning, the company released high-grade Gold intercepts from a 20,000-m program underway at its O’Brien Gold Project located along the Larder Lake-Cadillac Break halfway between Rouyn-Noranda and Val d’Or in northwest Quebec…drill hole OB-10–92w2b cut 66.71 g/t Au over 4.7 m, 300 m below the deepest known mineralization on there 36E zone (true thickness estimated at 70% to 80%)…“We are encouraged by this new high-grade Gold discovery, suggesting potential continuity for high-grade Gold mineralization up to 300 m below the current resource area at the 36E zone. This is a first and very important sign of validation for our new geological interpretation, with further follow up drilling, hole 19–92w2b is one of the most significant drill holes in the history of the company. I’m confident we will have a steady flow of encouraging news supporting the new interpretation through the remaining of the drilling campaign,” commented Mario Bouchard, President and CEO…the newly reported intercept occurred at a vertical depth of 850 m (OB-19–92w2b) within a smoky quartz vein that carries visible Gold and arsenopyrite-pyrite mineralization in association with typical biotite alteration…this package is hosted by the quartz porphyry and conglomerates of the Piche Group, like the ones above in the resource area (from surface to 550 m depth), and the old O’Brien mine which produced down to a depth of 1,150 m and remains untested below…RDS is unchanged at 22.5 cents as of 7:00 am Pacific…
5. Palladium One (PDM, TSX-V), which is up 50% this year on the strength of record high Palladium prices, has a new friend in Eric Sprott…the company late yesterday announced a $3.2 million financing at 6 cents per unit (53.3 million shares) with Sprott taking about one-third of that offering (18.2 million units) to give him a 19.99% non-diluted interest in the company…the company will use the funds to ramp up exploration activities at its Palladium-dominant LK Project in Central Finland and its Tyko Project (Nickel sulphide) in Ontario…using a 0.3 g/t Palladium cut-off, LK features an optimized pit-constrained mineral resource of 635,000 PdEq ounces of Indicated resources grading 1.80 g/t PdEq contained in 11 million tonnes, and 525,800 PdEq ounces of Inferred resources grading 1.5 g/t PdEq, also in 11 million tonnes…significant potential exists for additional tonnage and higher-grade discoveries…the LK Project remains wide open with less than 4 km of the current ~25 km mafic-ultramafic basal contact systematically drill tested…the favourable basal contact at Kaukua remains open along strike both to the east and west, while the deepest drill hole to date is only 420 m long…following the private placement, Palladium One will conduct high resolution IP geophysics and then initiate a 5,000-m diamond drill program…PDM is up half a penny at 7.5 cents through the first 30 minutes of trading…
6. Trans Mountain is beefing up its workforce, much to he chagrin of climate change alarmists who are more interested in the flaky concept of “saving the planet’ than saving jobs, prosperity and livelihoods in Canada…Trans Mountain says 2,200 new positions have been added since September 30 for the expansion project, with a focus on Indigenous, regional and local workers…among the positions added include heavy equipment operators, engineers and construction managers – high paying jobs…the project, which would see the existing pipeline between Edmonton and Burnaby twinned, has encountered multiple obstacles since the federal government purchased it for $4.5 billion from Kinder Morgan…it must move ahead quickly without any further delays or the minority Trudeau government, which lost seats all across Western Canada in the October 21 election, will face a mutiny from the West…
7. Indonesia has suspended exports of Nickel ore with immediate effect after a planned ban on shipments from the beginning of next year led to a rush to beat the deadline…the mineral meant for exports during the rest of the year will be absorbed by domestic companies with smelters, Indonesia’s Investment Coordinating Board Chairman Bahlil Lahadalia told reporters in Jakarta yesterday…the government and Nickel miners agreed to halt exports immediately…Indonesian companies with outstanding export contracts will need to find ways to avoid possible penalties, Lahadalia said…China’s imports of Nickel rose to a 5-year high in September, suggesting that users there were in a rush to secure material…almost all of Indonesia’s Nickel ore goes to China…the move to halt Nickel ore exports is in line with President Joko Widodo’s plan to turn Indonesia into a processor of its mineral resources as opposed to a mere suppliuer of raw materials…in August, the government brought forward a planned ban on exports of Nickel ore by 2 years to the start of January, potentially removing millions of tons of supply from the market and threatening a global shortage…
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Maybe some month end settlement going on with ggi, I guess the days of anticipation of results are the thing of the past(dodo bird). Jon, do you kinda throw the chart under the bus for now when you see this sh*t.?..
Comment by Laddy — October 29, 2019 @ 10:52 am
Interesting trading in AZM today…
Comment by Jon - BMR — October 29, 2019 @ 12:28 pm
Yes, shouldn’t be too much longer for Steve to tell us what’s all in that jewelry box, must be complicated (full of goodies).
Comment by Laddy — October 29, 2019 @ 12:44 pm
I loaded the boat with CLM yesterday and today. There is no way it’s going to stay around these levels for much longer. Can’t believe people were dumb enough to sell below a dime!
Comment by Felix — October 29, 2019 @ 2:33 pm
Felix, that is looking like a very smart move. Nice work!
Comment by Danny — October 30, 2019 @ 5:42 pm
Danny: I thought so too but I sold after finding out CLM is looking to do another PP raise at 10 cents.
Comment by Felix — October 31, 2019 @ 8:30 pm