Due to travel, BMR Morning Market Musings returns Monday morning.
1. Gold and Silver both hit new 3.5-month highs this morning at a time when the Dow has posted 10 consecutive record closes for the first time in 3 decades…as of 7:00 am Pacific, Gold is up $5 an ounce at $1,254 while Silver has jumped 12 cents to $18.27…the U.S. Dollar Index is flat at 101…Gold was as high as $1,261 overnight…holdings of the largest Gold-backed ETF, New York’s SPDR Gold Trust, have risen over 5% this month on geopolitical risk…“Even in the event of a (U.S.) rate increase, we doubt the precious metal will lose much ground ahead of the key presidential elections in France in April, coupled with the Washington gridlock that seems to be calcifying,” said respected INTL FCStone analyst Edward Meir…
2. U.S. bond yields are on track to fall for a 3rd consecutive session which is giving Gold some support…in addition, President Trump successfully “talked down” the greenback again yesterday while also calling China “grand champions” of currency manipulation in a new published interview just hours after his new Treasury secretary pledged a more methodical approach to analysing Beijing’s foreign exchange practices (long overdue)…
3. A measure of U.S. consumers’ attitudes remained slightly below the decade peak recorded in January, the University of Michigan reported this morning…the University of Michigan’s Consumer Sentiment Index hit 96.3 in February, slightly above expectations of 96.0…
4. The Venture’s 8-week winning streak is in jeopardy with the Index off 3 points at 837 through the first 30 minutes of trading, but don’t count out a late day rally…last Friday the Venture closed at 844 and briefly touched a nearly 30-month high intra-day Wednesday at 849 before pulling back from that resistance…embracing any weakness has proven to be a highly successful strategy, and that’s not likely to change anytime soon as this bull market forges ahead…
5. Agnico Eagle Mines (AEM, TSX) is taking a 9.95% position in Otis Gold (OOO, TSX-V) through a private placement of 14.42 million Otis shares at 35 cents per share, giving the junior a $5 million financing to continue aggressive exploration of its very promising Kilgore Gold Project in Idaho…Craig Lindsay, Otis CEO, stated, “We are very excited to welcome Agnico as a strategic investor in Otis. Agnico is an experienced global leader in the precious metals sector with a successful track record of identifying and building quality assets. We believe the transaction serves to recognize the strong potential for growth at Kilgore. This investment will allow Otis to aggressively pursue its goal of defining an economic Gold deposit close to infrastructure in an emerging Gold district. We look forward to working with Agnico, and we thank the Agnico team for their confidence in Otis.” OOO is up 4 cents at 34 cents on the news as of 7:00 am Pacific…
6. Silver Standard Resources (SSO, TSX, SSRI, NASDAQ) was profitable in the 4th quarter and full-year 2016 as the company hit record Gold-equivalent output…net earnings in Q4 were $12.1 million, or 10 cents per share, a turnaround from a loss of $66.7 million, or 83 cents, in the year-ago period…for full-year 2016, the company generated adjusted earnings of $100.3 million, or 97 cents, compared to a year-ago adjusted loss of $8.2 million, or 10 cents…Silver Standard holds a 10% stake in Pretium Resources (PVG, TSX) and recently signed an LOI with Eskay Mining (ESK, TSX-V) to acquire up to a 60% interest in ESK’s SIB Property contiguous to the Eskay Creek mine…SSO also holds an NSR on Garibaldi Resources‘ (GGI, TSX-V) E&L Project, the first Ni-Cu rich massive sulphide system discovered in the Eskay Heart of Gold Camp, 15 km southwest of Eskay Creek…
7. Altius Minerals (ALS, TSX) was halted pre-market and then announced that it has entered into a Letter of Intent pursuant to which Fairfax Financial Holdings Ltd. will make up to a $100 million investment in Altius in exchange for the issuance by Altius of preferred securities and warrants…
The 3 most popular recent BMR articles…
Gold Will Flex Its Muscles, Push Higher
Hi Jon, any idea what’s going on with CNZ? It’s been down a lot in the last while…
Comment by rgiroux — February 24, 2017 @ 7:29 am
I would attribute that simply to technical weakness that crept into the stock, rgiroux, nothing to do with fundamentals…we’ll do an update on CNZ over the weekend…
Comment by Jon - BMR — February 24, 2017 @ 7:36 am
Surprising to see the continued selling in GGI.
Comment by pole — February 24, 2017 @ 10:02 am
GGI – cranky selling or a PP at 18 cents?
Comment by david — February 24, 2017 @ 12:05 pm
GGI has two days to hold true to their word. 3D model Monday or Tuesday? They also expected Tora Tora results in Feb. Jon, are you guys holding off on the interviews until after the 3D model release? That’s the feeling I’m getting.
Comment by Dan1 — February 24, 2017 @ 12:09 pm
Well Dan1 I am going to assume GGI is going to disappoint again.
Comment by Dennis — February 24, 2017 @ 12:25 pm
Oh ye of little faith, Dennis!…loose apples keep falling off the tree, love it!
Comment by Jon - BMR — February 24, 2017 @ 1:17 pm
Just about to say that, managed to put a little cherry on top today ,, good old fashioned tree shaking, grab your seat and buckel up, GGI train is about to leave, enjoy the ride…..
Comment by Laddy — February 24, 2017 @ 1:27 pm
Nice close on EGM Today
Comment by Silverhook — February 24, 2017 @ 1:43 pm
Yes, Silverhook, when you see news like EGM put out the other day, leaves a lot of room for speculation…”27 metres of high-grade, massive mineralization containing abundant chalcopyrite, pyrite and magnetite within a near-horizontal skarn bed within the Nicola volcanic host rocks.”
Comment by Jon - BMR — February 24, 2017 @ 3:51 pm
Dynasty Gold, Feb. has been a good month for DYG!! Also.. P-tse. Continually hammered down this month!!!!Gotta be bottoming here?
Comment by GregJ. — February 24, 2017 @ 3:57 pm
It is when they disappoint for so long, they then boom so hard. Bought more apple buckets and canning jars. I love apple pie and money. REMEMBER, you make money on the BUY side.
Comment by dave — February 24, 2017 @ 6:37 pm
Cxo finished drilling nearly 5000 meters in less than 2 weeks, outstanding work once again boys! Hoping to see a barn burner in those results. Two ways this could go,if nothing more than great this is going back to the low 20s, but if there is a boomer hole this will explode and set up for a huge financing or buy out! GLTA
Comment by Greg — February 25, 2017 @ 6:09 am
Sweet Colorado, looking good! Really like the odds of a nice headline gold number coming from those 12 RC holes. Good results from Green Springs this quarter will really set things up perfectly for anticipation of an exciting fall program, limiting any temptation for investors to sell near the end of the KSP exploration season during late summer.
Comment by Jon - BMR — February 25, 2017 @ 6:17 am
Jon
Are we getting close to the release of the heart of gold site yet?
Thanks
Comment by Greg — February 25, 2017 @ 8:27 am
We’re getting there, Greg—official unveil is in March.
Comment by Jon - BMR — February 25, 2017 @ 8:50 am
GGI news release a teaser… up then down
Comment by Dave2 — February 26, 2017 @ 9:13 am
There is no GGI news today, Dave2, just something somebody was circulating from before (last news was Feb. 10).
Comment by Jon - BMR — February 26, 2017 @ 9:22 am
Regardless, should see something good this week.not wise to be a chaser on GGI. Weather is getting nicer here in the interior, let’s hope for an earlier start!!
Comment by Laddy — February 26, 2017 @ 9:44 am