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1. Gold has traded between $1,456 and $1,473 so far today, rebounding from overnight lows after a CNBC report cast some pessimism on the prospect of a U.S.-China trade deal…as of 7:00 am Pacific, the yellow metal is up $2 an ounce at $1,470…Silver, also reversing from its lows this morning, is now up a penny at $16.95…Nickel has retreated another 15 cents to $6.69…Copper is off a penny at $2.64…Zinc has slipped 2 cents to $1.08 while Cobalt is steady at $16.10…Crude Oil is down 65 cents to $57.08 while the Dollar Index is off more than one-tenth of a point at 97.85…Saudi Arabia’s state Oil giant could be valued at up to $1.7 trillion, according to a price range announced yesterday for its upcoming listing…this is slightly less than the $2 trillion figure the kingdom’s crown prince had previously targeted…Saudi Aramco said in a press statement Sunday morning that it’s hoping to sell a 1.5% stake in the company, or about 3 billion shares…the indicative price range for the shares is 30 Saudi riyals ($8.00) to 32 riyals, valuing the IPO up to as much as 96 billion riyals ($25.60 billion)…the IPO next month could beat the record $25 billion raised by China’s e-commerce firm Alibaba when it debuted in New York in 2014…China’s central bank eased its monetary policy again today by lowering its reverse repurchasing rate for the first time since 2015…
2. Milestone in Ecuador: Lundin Gold (LUG, TSX) announced this morning that it produced its first Gold dore bar from Fruta del Norte over the weekend…production of Gold concentrate, as part of the commissioning activities, is also well advanced with the first containers loaded with marketable concentrate…commissioning of the carbon in leach circuit is ongoing and nearing completion…“This is another exciting and significant milestone for the Lundin Gold team and the people of Ecuador”, stated Ron Hochstein, President and CEO of Lundin Gold…“We will continue to focus on completing commissioning and ramping up production on the path to commercial production in the 2nd quarter of 2020“…last Thursday, Lundin Gold held the inauguration ceremony for Fruta del Norte…the event was attended by Ecuadorian national, provincial, and local government authorities, representatives of the Canadian embassy, major shareholders, project finance lenders, community representatives, partner organizations, media, contractors, and company personnel…Ecuador’s Vice President, Otto Sonnenholzner, commented: “Let’s make Fruta del Norte be the light that guides Ecuador as it develops its mining sector”…Lundin Gold astutely purchased the Fruta del Norte asset in 2014 for $240 million (U.S.)…the high-grade deposit has Probable reserves of 5 million ounces of Gold at an average grade of 8.74 g/t…it’s expected to produce 310,000 ounces of Gold annually at an all-in-sustaining cost of $583 (U.S.) an ounce…LUG is up 21 cents at $7.69 as of 7:00 am Pacific…
3. Marathon Gold (MOZ, TSX) has delivered more high-grade results from infill drilling in the SW Main zone extension of its Marathon deposit where new occurrences of quartz-tourmaline-pyrite-Gold veining have been identified in areas of limited previous exploration…MA-19–483 cut 18 m grading 5.1 g/t Au, including 11.7 g/t over 7 m; MA-19–477 intersected 4.2 g/t over 21 m, including 17.2 g/t over 4 m; MA-19–485 cut 15.9 g/t over 6 m, including 87 g/t over 1 m; and MA-19–484 returned 7.1 g/t over 9 m, including 61.8 g/t over 1 m (core lengths)…the Main zone at Marathon comprises dominantly shallow SW dipping, en-echelon stacked QTP-Au veining in a 100 to 150-m wide subvertical corridor of mineralization…this corridor extends for more than 1.5 km along strike, and from surface to the base of the planned Marathon open-pit…it remains open along strike and to depth…the latest drilling has confirmed a SW extension of this Main zone into an area currently classified in the October 2018 mineral resource estimate as Inferred, and into areas with little previous drilling…Marathon’s 2019 infill drill program at the Marathon and Leprechaun deposits is now complete and totalled 58,300 m…an updated resource estimate is expected by year-end…meanwhile, the company has also completed a 7,000-m drill program at the Sprite zone located northeast of the Leprechaun deposit…numerous new QTP vein occurrences were intersected, including several with visible Gold…assays are pending…MOZ is off a penny at $1.54 as of 7:00 am Pacific…
4. A record-breaking rally has brought the S&P 500’s return this year to nearly 25%…if the gains hold up through December, the market could have more room to run in 2020 if history is any guide…however, the easy money has been made and risks are heightened…going back to 1928, there have been 17 occasions when the S&P 500 has scored an annual gain bigger or equal to 25%…71% of the time, the index is positive in the following year with an average return of 7%, according to Fact Set data…the S&P 500 has only had 5 negative years following a 25% annual return since 1928…2020 could be 6th if Democrats gain control of the White House…on Bay Street, the TSX is gunning for its 12th straight winning session today…on Friday the Index broke through 17,000 for the first time…it was below 14,000 just 11 months ago…in short order, it then rallied above 15,000 in January and 16,000 in February…but it took 187 trading sessions to rise above 17,000 after zigzagging for most of the past 9 months…
5. The Dow is up 8 points through the first 30 minutes of trading after closing above 28,000 for the first time on Friday…in Toronto, the TSX is 19 points lower but the Gold Index is up slightly at 242…Barrick Gold (ABX, TSX; GOLD, NYSE) has reached an agreement to sell its 50% interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia to Saracen Mineral Holdings Ltd. for a total consideration of $750 million (U.S.)…“The sale of our non-operating interest in KCGM represents the first step in our plan to realize in excess of $1.5 billion from the disposal of non-core assets by the end of next year,” stated Barrick President and CEO Mark Bristow…“While this iconic Gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations”…Newmont Goldcorp (NGT, TSX; NEM, NYSE) will remain the operator of KCGM, partnering with Saracen…the Venture is flat at 529 as of 7:00 am Pacific…Aurora Solar (ACU, TSX-V), generating new orders in China, is gaining technical strength on increasing volume, up a penny at 10 cents…the early volume leader is Planet Ventures (PXI, TSX-V), up 2 cents at 8 cents after announcing that it has entered into a definitive agreement to acquire all of the shares of First Eleven Ltd. (First XI) a sports media and e-sports gaming company based in the United Kingdom as previously announced last month…the investment in First XI represents the second investment in the e-sports and gaming industry by the company, adding to its portfolio of investments in the technology, gaming, cannabis and mining sectors…Ascot Resources (AOT, TSX-V) has cut 37.9 g/t Au over 5.03 m in the Prew zone at its Premier Project near Stewart…Ascot has completed 52,400 m of drilling this year…assays are still pending for about 40% of that work…..
6. Victoria Gold (VIT, TSX-V) is proceeding with the consolidation of its common shares in a 15-for-1 rollback…“We have recently achieved significant milestones including: completion of construction of the Eagle Gold Mine in July 2019, completion of commissioning in August and pouring of the first Gold dore bar in September. Our next significant milestone will be commercial production in 2020,” stated John McConnell, President & CEO…“Transitioning into Canada’s newest Gold producer will be accompanied by a number of changes; including Victoria’s capital structure and financial reporting. We also intend to apply to up-list to the TSX later this year”…currently, Victoria Gold has a total of 858,394,437 common shares are issued and outstanding…the stock will be rolled back this week (effective date is Wednesday), reducing the share count to 57.2 million…VIT is up half a penny at 46.5 cents as of 7:00 am Pacific…
7. Not the best time to be launching a cannabis deal, but Terrace Global (TRCE, TSX-V) made its debut on the Venture this morning…it opened at 30 cents and is trading at 24.5 cents on light volume through the first 30 minutes (167 million shares outstanding)…the company’s operations are focused in Uruguay, Spain and Portugal...Francisco Ortiz von Bismarck, co-founder and CEO, stated, “Conducting our business in federally legal jurisdictions has allowed us to be able to list on the TSXV and we hope to continue to grow our business globally as a result. Listing on the TSXV was an important milestone for our company and we will continue now our focus on developing operations in countries where we can cultivate at a low-cost and that have domestic demand for cannabis products and derivatives”…the sector, of course, is mired in a brutal bear market that has wiped 70% off the value of the Canadian Marijuana Index over the last 8 months…disappointing results last week from Canopy Growth (WEED, TSX; CGC, NYSE) and Aurora Cannabis (ACB, TSX, NYSE) added to the woes…on Friday after the close, MedMen Enterprises (MMEN, CSE), one of the first U.S. cannabis companies to sell shares to the public, said it would dismiss 190 employees, including about 20% of its corporate workforce, as it struggles to preserve a dwindling cash pile…“The capital markets have gone from frothy to completely closed,” co-founder and CEO Mark Bierman stated…“We’re now entering a stage where businesses are going to have to be self-sustaining”…the Canadian Marijuana Index, which plunged 20% last week, is down another 3 points at 208 in early trading today…
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Comment by david — November 18, 2019 @ 11:39 am
Never thought i would say this but i have order in at .50..Tax loss selling alone will get it there
Comment by john — November 18, 2019 @ 3:20 pm
It always good to have a list of stocks that may be screaming buys because of tax loss selling, GGI and CLM are a couple that come to mind. Always hard to pick the exact bottom but we have to be getting close. The majority of tax loss selling is usually done by the middle of December and then the venture starts to move up.
Comment by Danny — November 18, 2019 @ 4:02 pm
Just curious if you are a buyer of GGI at these levels, Jon?
Comment by GREGH — November 18, 2019 @ 9:17 pm
RSI(14) at levels not seen since April-May, Gregh…all sorts of reasons, technical and fundamental, for jumping in right now but hoping some nervous nellies get even more nervous…
Comment by Jon - BMR — November 19, 2019 @ 1:25 am