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1. Gold has traded between $1,561 and $1,568 so far today…as of 7:00 am Pacific the yellow metal is off $4 an ounce at $1,564…Silver has fallen 13 cents to $17.48 but remains well within key support…Palladium remains very strong with buyers stepping in on any dips…it’s relatively unchanged at $2,262 as it continues to trade within a bullish symmetrical triangle…key breakout area is $2,365 at the top of that triangle and Fib. resistance on the short-term chart…Copper is up a penny at $2.61…Nickel has added 2 cents to $5.95 while Zinc is unchanged at 98 cents…Crude Oil has rebounded another $1.39 a barrel to $51.33 while the U.S. Dollar Index has gained one-tenth of a point to 98.84…foreign dollars continue to flow into the United States which has the cleanest shirt in a pile of global dirty laundry…U.S. equity markets have hit new record highs…Wall Street is cheering last night’s New Hampshire primary victory by socialist Bernie Sanders who scored a narrow win in terms of total votes…buoyed by a strong organization, Sanders has to be considered the early favorite to win the Democratic nomination and challenge President Trump in November…the prospect of such a matchup, however, should be terrifying for Democrats as Sanders underscores Trump’s point that the once centre-left Democrats have been hijacked by the far left…Americans will never elect a socialist President…Sanders is a socialist, not a true Democrat, and his campaign could fracture the party…
2. Oil jumped more than 3% this morning as traders eyed deeper production cuts from OPEC and as China reported the lowest number of new coronavirus cases since the end of January, easing concerns about a drop-off in Crude demand…in a closely-watched monthly report published this morning, OPEC cut its forecast for Oil demand growth this year, saying the coronavirus outbreak was the primary reason…the cartel said it now expects 2020 daily Oil demand growth to be 990,000 barrels per day (bpd), which is 230,000 bpd below prior forecasts…this, in turn, could encourage OPEC and its allies, known as OPEC+, to implement additional production cuts…“The impact of the Coronavirus outbreak on China’s economy has added to the uncertainties surrounding global economic growth in 2020, and by extension global Oil demand growth in 2020,” OPEC said in its report…an OPEC+ technical committee last week recommended expanding production cuts to put a floor under falling Oil prices, although there was some resistance from Russia…RBC’s Helima Croft, a leading authority on Crude Oil and the global head of commodity strategy at RBC, said that Oil’s move higher is a “sign that we are getting close to Russia signing off on the OPEC+ deeper cut”…
3. As Canada heads down a very dangerous path with deteriorating respect for the rule of law, and the critical resource sector, finally a politician is speaking out…Alberta Premier Jason Kenney on Twitter: “It’s about time that our authorities demonstrated that Canada is a country that respects the rule of law. Allowing mob rule to override the express democratic wishes of First Nations is unacceptable, and it has to end”…the left wing mainstream media in Canada still doesn’t get it, nor do many Canadians it seems…there should be no sympathy for the Wet’suwet’en “hereditary chiefs”…they are not innocent “land defenders” – they are foreign funded anarchists, aboriginal extremists, with a carefully crafted agenda to undermine Canada’s resource sector…all native groups, with the exception of the outlier Wet’suwet’en “hereditary chiefs”, support the Coastal GasLink pipeline in northwest British Columbia…the “hereditary chiefs” conducted an illegal blockade against this project and are supported by such groups as Red Braid Alliance for Decolonial Socialism, an anti-capitalist organization that was responsible for shutting down Canada’s busiest port in Delta, B.C., last weekend…this movement has wings to it…“We’re part of a nationwide movement to shut down Canada in solidarity with Wet’suwet’en,” Red Braid organizer Isabel Krupp stated several days ago when her thugs blockaded the port in Delta and then defied a court order…meanwhile, in a statement yesterday, CN Rail announced that it would be shutting down “significant” portions of its rail network due to ongoing protests…this raises serious questions about the stability of Canada’s transport system and concerns about adequate enforcement of court orders putting an end to protests…a variety of shipments – food, construction materials, lumber, coal and propane – have been affected by the rail blockades just east of Belleville, Ontario, and in New Hazelton, British Columbia…near Belleville, members of the Tyendinaga Mohawk Territory have parked a large dump truck with a plough along the tracks…where is law enforcement and where is Ontario Premier Doug Ford?…the protests have stopped Via Rail passenger trains as well as CN trains, cutting off routes between Toronto, Ottawa, Montreal and Kingston…is this the kind of country Canadians want?…if it is, the socialist mob will prevail and the economy will go completely into the tank...unfortunately, Canada at the moment is in a weakened position because it’s a leaderless country, unlike its major trading partner to the south where the economy is zipping along under the strong leadership of President Trump (love ’em or hate ’em)…Justin Trudeau at the moment is roaming around South Africa promoting his globalist agenda when he should be here at home right now advocating a Canada First agenda…capital will increasingly flow to the United States unless this nonsense is Canada is stopped, and quickly…
4. Here’s a refreshing switch (and it’s the kind of activism that we need to see more of from entrepreneurial First Nations) – sue the Feds for NOT approving a resource project…the Financial Post’s Geoffrey Morgan wrote yesterday that an Indigenous group that stands to benefit from Teck Resources‘ (TECK.B, TSX; TECK, NYSE) Frontier Oil sands project in Alberta says it would launch a legal challenge against the Trudeau government if it rejects the development (as expected) later this month…“We do recognize that there are ways that we can go – and that’s one,” stated Ron Quintal, President of the Fort McKay Metis Nation, about launching a legal challenge if the Frontier Project is rejected…“We are prepared”…Quintal says the Trudeau government has not yet consulted with his group…if a legal challenge is launched, it would mark a new type of challenge launched by an Indigenous community arguing their rights have been infringed by a project being rejected…the Fort McKay Metis are 1 of the 14 Indigenous groups that have signed benefits agreements with Teck…ironically, Canada’s “inclusive, progressive” federal government is carrying out a resource policy that is actually anti-First Nations as it’s perpetuating First Nations’ poverty…that’s the argument that conservatives need to push…
5. The Dow has soared 259 points through the first 30 minutes of trading…in Toronto, the TSX is up only 66 points…Barrick Gold (ABX, TSX; GOLD, NYSE) has reported a higher 4th-quarter adjusted profit that beat analysts’ estimates…it also announced a dividend hike and an increase in Gold reserves…the company posted adjusted 4th-quarter earnings – excluding special items – of $300 million (U.S.), or 17 cents per share, up from $264 million, or 15 cents, in the 3rd quarter…the result slightly beat the consensus estimates of analysts…the Venture, holding above a strong support band between 570 and 560, is steady at 573…HIVE Blockchain (HIVE, TSX-V) is up another 2 cents at 49 cents…the stock has been a very heavy trader on a major surge in the share price, though strong resistance exists in the mid-to-upper-50’s on the long-term chart (Fib. resistance at 55 cents and the declining 500-day SMA at 58 cents)…Garibaldi Resources (GGI, TSX-V) has brought in much-needed fresh blood…Mark Scott, the former head of Nickel operations in Manitoba for Vale Canada, has joined the GGI board and has also taken on the role of VP Corporate Development…“With its top-tier Nickel grades combined with 10 other metals, including high-grade Copper, Palladium, Platinum and Rhodium in massive sulphides, the Nickel Mountain discovery is an extremely rare find on a global scale,” stated Scott…he added that his mandate is to “help unlock the full value of the most exciting Nickel sulphide exploration project in the world entering what’s shaping up to be a decade of high demand for Class 1 Nickel and strategic metals”…GGI is up a nickel on the news at 84 cents as of 7:00 am Pacific…the chart shows a bottom in the high 60’s recently and a likely near-term move through the 50-day SMA at 86 cents…
6. Pretium Resources (PVG, TSX-V) is down sharply in early trading, making the company an even more attractive takeover target…change is definitely on the way at Pretium…the company has been consistently profitable with strong cash flow since commercial production started at Brucejack in 2017…however, investors are disappointed that the company’s early estimates of a fairly quick ramp-up to half a million ounces per year aren’t going to be realized…Gold production at Brucejack for 2020 is expected to be in the range of 325,000 to 365,000 ounces…the production rate for 2020 is expected to be 3,800 tonnes per day with the average annual Gold grade ranging between 7.6 g/t to 8.5 g/t at a targeted recovery of 97%…the midpoint of 2020 Gold production guidance is slightly below 2019 actual production, and that certainly has investors less than impressed nearly 3 years into mining…adjusted earnings for the 4th quarter were $33.1 million (U.S.), or 18 cents, up from $20.2 million, or 11 cents, in the same period of 2018…meanwhile, Pretium says its board of directors has started searching for a new President and CEO with current CEO Joseph Ovsenek planning to continue in his role while the search is under way…Ovsenek has been President and CEO since 2017 and President since 2015…PVG is down $2.47 a share to $10.25…
7. Sixth Wave Innovations (SIXW, CSE) made its CSE debut yesterday, closing at 59 cents…Sixth Wave, which raised nearly $14 million at 75 cents, is a North American-based nanotechnology company focusing on extraction products and technologies primarily for the resource and life sciences industries…the company specializes in molecular engineering, a discipline that is revolutionizing the fields of materials extraction, detection, purification and design…founded in 2013, Sixth Wave began as a manufacturer of detection devices for Homeland Security applications….since then, the company has expanded its remarkably selective detection and extraction technologies to address applications in high-value metals and pharmacological applications, with patent applications and protections now spanning over 40 countries…“We’re delighted to make this important transition to the capital markets, as a means of accelerating our growth trajectory and maximizing our future visibility,” stated Dr. Jonathan Gluckman, President and CEO…“Sixth Wave has selected Gold as the initial target of our resource products division. The timing for our commercial release is excellent, as demand for this historically rewarding metal is in an upswing. Our IXOS-AuC product offers Gold producers an unprecedented means of increasing recoveries and maximizing profits. The platform promises to replace activated carbon outright as the go-to method of Gold extraction, with minimal retrofitting to existing circuits, significantly lower capex for new installations, and significant increases in gold recovery and cost savings. Simply put, we could not have chosen a better target metal, a better value proposition or better juncture for aggressive expansion in the resource sector”…
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From your zombie portfolio – Surge Copper leapt 62.5% yesterday, and no mention of it? I don’t recall your ever telling us to sell this dog. I searched several boards and found nobody following it anymore. Could you please let us know if anything is brewing with the company? Thanks.
Comment by TAD — February 13, 2020 @ 6:31 am
Thanks for digging that up TAD — i think of SURG more as a “sleeper” than a zombie — and i wouldn’t read to much into the 62% leap aside from showing how these zombies can popup at nearly anytime with nearly any new buying interest, because they’re so thinly traded it doesn’t take more than $10,000 of buying interest (or sales) to move something like SURG around.
It is what it is — a sleeper, perhaps a sleeping giant of a stock.
They’re sitting on approx. 1 billion pounds copper and 1 million ounces of gold adjacent to Imperial’s Huckleberry mine, and that’s the crux of the matter here, when oh when will SURG be able to work some sort of deal with Imperial.
As a reminder, i’ve visited the Ootsa project. It’s very accessible and the terrain is quite easy to get around on. The deposit(s) only cover a small footprint within a very large unexplored land package.
And i also have great confidence in the leadership team with SURG. Shane Ebert is a super smart geologist and Patrick Glazier’s that kinda guy who will keep supporting SURG until the value and stock gets recognized.
Comment by Daniel — February 13, 2020 @ 7:15 am
Thank you for the thoughtful response, Daniel.
Comment by TAD — February 13, 2020 @ 12:35 pm