Gold has traded in a tight range between $1,276 and $1,286 so far today…as of 7:50 am Pacific, bullion is down $2 an ounce at $1,280…Silver is off 21 cents at $21.14…Copper has lost 2 pennies to $3.23…Crude Oil is 18 cents lower at $94.96 while the U.S. Dollar Index is flat at 81.08…
Holdings of Gold by SPDR Gold Shares, the world’s largest ETF for the precious metal, rose by 2.1 metric tons to 868.42 last week, according to a report from fund administrators – one of the rare weekly increases we’ve seen this year…
A rather shocking prediction, though this may be a bullish sign – BNP Paribas has lowered its 2014 average Gold-price forecast to $1,095 an ounce, a 5% reduction from its June estimate…the firm says financial conditions will weigh on Gold, such as the likelihood of the Federal Reserve beginning its tapering of quantitative easing in March, inflation remaining subdued and interest rate yields rising…BNP also says lackluster interest by exchange-traded funds investors weighs on Gold…in addition, with the greenback strengthening on ideas the U.S. economy is improving and yields rising to support the dollar, the firm says they don’t expect official sector purchases to shore up bullion…
For Gold bugs, one positive out of this prediction by BNP Paribas – they’ve been horribly wrong before, as have so many others…in October, 2011, they stated: “We see the Gold price peaking in 2013, as the market starts to anticipate monetary tightening in the United States, but do not expect a sharp fall thereafter”…the 2011 report added, “The brokerage now expects Gold prices to average $1,730 an ounce in the 4th quarter, down from its earlier forecast of $2,170 an ounce…BNP also cut its 2012 price forecast to $1,950 per ounce from $2,080, while lowering its 2013 estimate to $2,125 an ounce from $2,200 an ounce”…
China To Let Markets Play A More “Decisive” Role
China’s ruling party pledged to let markets play a “decisive” role in allocating resources as it unveiled a reform agenda for the next decade today, looking to overhaul the world’s second-largest economy to drive future growth…China aims to achieve “decisive results” by 2020, with economic changes a central focus of “comprehensive” reforms, the ruling Communist Party said in a statement released by the official Xinhua news agency at the end of a four-day closed-door meeting of the party’s Central Committee…In previous policy statements, the Communist Party had often described markets as playing a “basic” role in allocating resources, Xinhua said, meaning the new language amounts to an upgrading of its role…out of a long list of areas that the meeting was expected to tackle, most analysts have singled out a push towards a greater role of markets in the financial sector and reforms to public finances as those most likely to get immediate attention…Deutsche Bank commented on China’s Third Plenum, stating: “We expect reforms will be neutral for commodities in the near term, but positive for the complex over the medium term”…
Today’s Markets
Asian markets were strong overnight…China’s Shanghai Composite rebounded, gaining 17 points to close at 2127, after hitting multi-week lows in the previous session…a weaker yen had Japanese investors cheering as the Nikkei reached its highest level in nearly two months…it surged 319 points or 2.3%, extending yesterday’s 1% rally…European shares were down slightly today…
In New York, the Dow is down 9 points as of 7:50 am Pacific…speaking to CNBC yesterday, Dallas Federal Reserve President Richard Fisher stated, “Markets should bear in mind that this [QE] program cannot go on forever. Our balance sheet has become bloated and at some point, we will have to taper back on pace of purchases but that doesn’t mean we’ll stop”…later this morning, Minneapolis Fed President Narayana Kocherlakota speaks on monetary policy strategy, while Atlanta Fed President Dennis Lockhart speaks on the economic outlook…
The TSX is up 11 points while the Venture is down 1 point at 934 as of 7:50 am Pacific…
The Bitcoin Bonanza
Okay, we have to give Alix Resources Corp.’s (AIX, TSX-V) Mike England credit this morning for creativity – and his stock is the second-most active in early trading on the Venture, up half a penny at 3.5 cents…more comments, anyone, on this morning’s AIX news release?…
Alix Resources Corp. has entered into an innovative and creative service plan with Ridge Resources Ltd. for upcoming exploratory work on its Windy property, located 15 kilometres north of Cassiar, B.C. (see news release, Nov. 7, 2013). Pursuant to the plan, Alix will pay Ridge for its services in bitcoins and will continue to explore this avenue for financing future endeavours with other service providers.
To explore this model of payment more fully with its other service providers, Alix has also entered into an agreement with a private software vendor to license a bitcoin exchange to be administered by Alix. Management anticipates that the exchange will be launched in early January, 2014.
President and chief executive officer Michael England states: “The growth of popularity in the bitcoin space as an alternate method of payment has led Alix to step into this very exciting market. This transaction is the first of its kind within the Canadian junior mining sector and positions Alix as a participant at an early stage in the global bitcoin marketplace.”
Venture-Gold-Crude Oil-CRB Index 5-Year Comparative Chart
Below is a 5-year monthly Venture and commodities comparative chart from John – Gold and Crude Oil have significantly outperformed the Venture since the beginning of 2009, but the Venture has performed slightly better than the CRB Index…
Probe Mines Ltd. (PRB, TSX-V) Updated Chart
One of the best Gold exploration plays in Canada, in our view, continues to be Probe Mines‘ (PRB, TSX-V) Borden Lake Project in northern Ontario…this is certainly reflected in the performance of PRB over the last 6 months as it has doubled in price while so many other companies have struggled…Probe has been consistently expanding a high-grade zone southeast of the original bulk tonnage deposit, but PRB is even finding better grades within the original deposit through infill drilling…PRB is in a strong cash position (nearly $35 in working capital as per its July 31 financials), and keep in mind that Agnico Eagle Mines (AEM, TSX) took a 9.99% position in the company last spring…
Below is a 2.5-year weekly PRB chart from John…note how PRB has significantly outperformed Gold since the spring, and appears ready to push through resistance at $2.20 toward John’s Fib. target…as of 7:50 am Pacific, PRB is up 6 cents at $2.26…
TomaGold Corp. (LOT, TSX-V)
TomaGold Corp. (LOT, TSX-V) was halted yesterday and resumed trading after news was released this morning…the company and Iamgold Corp. (IMG, TSX) have finalized an option agreement in which Iamgold may earn a 50% interest in each of the Monster Lake, Winchester and Lac a l’Eau Jaune properties in exchange for $16-million in exploration expenditures and $1,575,000 in payments over five years…LOT traded as high as 19 cents this morning but couldn’t sustain that level and is currently up 2 cents at 16 cents (as of 7:50 am Pacific)…the one drawback with this deal is that Iamgold will act as the project operator during its earn-in phase – unfortunately, this means LOT will have no control over news flow which always put the junior at a disadvantage…
David Grondin, President and CEO of TomaGold, stated that: “We are proud to have signed an agreement with IAMGOLD, a major Gold producer with proven expertise in Quebec and the rest of the world. IAMGOLD’s financial and technical resources will enable us to explore Monster Lake and the neighbouring properties faster and in a more optimal manner. In addition, the larger work commitments mean that exploration work on the Properties will be ongoing. In short, this transaction is a testimony to the Gold potential of Monster Lake and its surroundings, and we hope to eventually turn it into a mine.”
North Arrow Minerals (NAR, TSX-V)
North Arrow Minerals (NAR, TSX-V) has doubled this month on diamond exploration success in central-eastern Saskatchewan where it has recovered high microdiamond counts from its PK150 kimberlite at Pikoo, a new kimberlite district discovered earlier this year…NAR should be interesting to watch in 2014…below is a 2.5-year weekly chart from John…technically, the Fib. resistance levels (73 cents, 90 cents and $1.07) probably provide the best guide for NAR’s near-term upside potential…the breakout above 73 cents yesterday requires confirmation today…RSI(14) levels are quite high on NAR at the moment, so that’s something to be cognizant of…the safest strategy in situations like this, rather than “chasing” a stock, is to wait for a consolidation period…it’s great to see any company on the Venture enjoy some success on the exploration front right now, especially when it’s in Canada – no matter if it’s Gold, Copper, graphite or diamonds…
Revolver Resources Inc. (RZ, TSX-V)
Revolver Resources (RZ, TSX-V) has announced two financings (a flow-through and a non-flow-through) above the market price in order to carry out a 1,000-metre drill program at its Summit B Property adjacent to Colorado Resources‘ (CXO, TSX-V) North ROK discovery…more results are due soon from North ROK – hopefully they won’t pop RZ’s balloon which inflated the last couple of trading days on high volume after the company announced it’s targeting a rather interesting 2000 m x 500 m northwest-oriented ovoid chargeability anomaly at Summit B (by the way, Colorado’s Dr. Jim Oliver, PH.D., P.Geo., the company’s Chief GeoScientist, will be delivering a presentation tomorrow at noon tomorrow at the Hyatt Regency in downtown Vancouver, which we’ll be attending).
Below is a 2.5-year weekly RZ chart from John showing strong resistance at a nickel…a breakout above that level on high volume would be a very bullish sign…as of 7:50 am Pacific, RZ is off a penny at 3.5 cents…
Note: John, Jon and Terry do not hold share positions in AIX, PRB, NAR, LOT or RZ.
Another stock that I think is worth checking out is ISD.V I-sign Richard l
Comment by Richard l — November 12, 2013 @ 1:03 pm
Nice prices on timmins and starcore today, lock in future dividend streams while the scaredy cats sell and hedge funds puke shares up..
Comment by Justin — November 12, 2013 @ 1:16 pm
GCO.V up 40%
Comment by db — November 12, 2013 @ 1:34 pm
scroll down
Value
120.32
$ Market Value
119.02
$ Profit/Loss
-1.30
% Profit/Loss
-1.08%
Symbol (Name)
Quantity
Cost/Share
Last
Change
% Change
Total Cost
Market Value
$ Gain/Loss
% Gain/Loss
Notes
V.GGI 125.00 0.08 0.090 0.000 0.00% 10.00 11.25 1.25 12.50%
V.HBK 100.00 0.10 0.095 0.000 0.00% 10.00 9.50 -0.50 -5.00%
T.SAM 54.00 0.185 0.175 -0.015 -7.89% 9.99 9.45 -0.54 -5.41%
V.IO 83.00 0.12 0.100 0.000 0.00% 9.96 8.30 -1.66 -16.67%
V.TGK 660.00 0.015 0.015 0.000 0.00% 9.90 9.90 0.00 0.00%
V.GTA 62.00 0.16 0.160 -0.015 -8.57% 9.92 9.92 0.00 0.00%
V.KWG 200.00 0.05 0.050 0.000 0.00% 10.00 10.00 0.00 0.00%
V.RBW 250.00 0.04 0.040 0.000 0.00% 10.00 10.00 0.00 0.00%
V.FMS 30.00 0.34 0.340 -0.005 -1.45% 10.20 10.20 0.00 0.00%
V.PGX 30.00 0.345 0.350 0.000 0.00% 10.35 10.50 0.15 1.45%
V.GBB 250.00 0.04 0.035 0.000 0.00% 10.00 8.75 -1.25 -12.50%
V.GMZ 250.00 0.04 0.045 +0.015 +50.00% 10.00 11.25 1.25 12.50%
120.32 119.02 -1.30 -1.08%
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Comment by gil — November 12, 2013 @ 1:46 pm
BMR, wondering if you have any updates from GGI? When will results from the Grizzly be released? I sent an email but no response. Current drill hole MAR13-03 could be a nice surprise given what they hit on MAR13-02. Looks like this drill hole was the first in this area. Also any update on the graphite samples that were sent for analysis back in Sept? Thanks
Comment by Dan — November 12, 2013 @ 2:06 pm
I WILL post individual bmr members results later this week
Comment by gil — November 12, 2013 @ 2:27 pm
Hi Dan, we have a story in the works on GGI for later this week. They have 2 major factors in their favor at the moment: 1) They’re drilling; and 2) They’re going to be drilling some more. I don’t know how many Venture companies are drilling 2 properties over these last 2 months of the year – GGI must be one of the very few. Of course drilling of the 17th hole (MAR-13-03) at the Tonichi Locust target started just recently as GGI announced last week, as a follow-up to the very interesting results in MAR-13-02. You’re right, I suspect other players in the area including First Quantum took note of that intercept in MAR-13-02 as it was quite significant for the area. By drilling MAR-13-03 from the valley floor, they are going deeper into this system and anything can happen in that kind of a situation. Look at BG. Nearly doubled today (even though they’re in Indonesia). They intercepted 114 m of 0.23 g/t Au and .17% Cu from 18 to 132 m – ALMOST IDENTICAL to GGI’s near-surface intercept in MAR-13-02 – and then got into much richer stuff at depth. I’m not suggesting GGI is going to hit 1% Cu, but my point is that MAR-13-02 may have put GGI on the edge of something bigger.
With regard to the Grizzly, I suspect they are still waiting for final interpretation of certain data as Prosper is – Dirk confirmed publicly at last week’s presentation that PGX was still waiting for some final data. Makes sense to me that GGI would wait until they had everything in hand on the Grizzly and then put it out to the market, painting the big picture of what’s going on there.
So GGI is drilling at Locust and then, as stated in their release last week, “The company will be extending its drilling efforts in Mexico beyond Tonichi this quarter.” I take that to mean they will likely be going after La Patilla which is a very intriguing Gold property near Mazatlan and one that GGI believes has near-term production potential (small open pit). La Patilla is a fantastic property for a junior like GGI to tackle.
The graphite situation is kind of tied in to the coal production at Tonichi in the sense that it’s on the same ground – in our interview with Steve a while back, he stated they’re still investigating the graphite and will provide an update when they have all of their information in hand.
Comment by Jon - BMR — November 12, 2013 @ 3:52 pm
Thanks Jon. Look forward to the update on GGI.
Comment by Dan — November 12, 2013 @ 6:39 pm
Awesome quarter by Brigus, operating cash costs came in at $617, all-in costs even below $1000 an ounce. YTD they are mining gold at 4.66 grams per tonne, that’s a nice grade. The market is going to love this stock once if this gold bear ever goes away.
Comment by Justin — November 12, 2013 @ 6:55 pm
Hi Gill,
To keep your chart simple, we simply need to know; 1) ticker, 2) initial PPS, and 3) current PPS.
Thanks
Comment by Alexandre — November 13, 2013 @ 1:38 am