Merry Christmas! 7 @ 7:00 and BMR Morning Market Musings return next Wednesday, December 28.
1. Gold has traded in a tight range between $1,129 and $1,134 so far today as trade volumes thin out immediately ahead of Christmas…given that Gold is in danger of posting its 7th straight weekly loss, bullion investors may think they’re getting a lump of Coal for Christmas after such a promising start to 2016 when the metal enjoyed its biggest quarterly advance in 30 years in Q1…2017 could bring the opposite – a weak start but a strong finish…Gold has been holding critical support around $1,130 and potentially could bounce out of short-term oversold conditions going into year-end…next major support after $1,130 is in the $1,090’s…
2. An interesting twist in India – rumors are circulating that the government will actually reduce tariffs on Gold early in the New Year, despite recent indications to the contrary…according to media reports, quoting unnamed government sources, the Indian government is allegedly looking to cut Gold’s import tax to 6% from its current 10%…the announcement is expected to be made February 1 when the government releases its budget for the 2017/2018 fiscal year…such a move would be a boost to the country’s domestic Gold market…
3. Venture tax-losing selling season is over and the Index is up 6 points at 726 through the first 30 minutes of trading today…expect a strong finish to what has been the Venture’s best year since 2010…
4. For the second straight day, a Venture junior is being gobbled up by a bigger fish…Kiska Metals (KSK, TSX-V) is the Venture’s top gainer in early trading, up 75% to 7 cents on total volume (all exchanges) of more than 1.5 million on a mostly all-share friendly takeover announced last night by AuRico Metals (AMI, TSX)…Kiska’s flagship asset is its Kliyul Cu-Au Project approximately 50 km south of AuRico’s Kemess Project in north central B.C.’s prolific Quesnel Trough…news is expected soon from an important property contiguous to the Kliyul, Garibaldi Resources‘ (GGI, TSX-V) Red Lion Project…
5. Keep an eye on Uranium stocks…Anfield Resources (ARY, TSX-V) is up 2.5 cents at 11 cents as of 7:00 am Pacific, Purepoint Uranium (PTU, TSX-V) has added half a penny to 13 cents while NexGen Energy (NXE, TSX) is unchanged at $2.32…U.S. funds are showing increased interest in Uranium which is poised for a resurgence (particularly under the incoming Trump administration) amid declining supplies…NXE, developing its world class Arrow deposit, plans to list on the NYSE next year…
6. Natan Resources (NRL, TSX-V) has completed its previously announced private placement for total gross proceeds of $4-million as the company prepares for a major 2017 exploration program at its recently acquired high-grade Montalembert Gold Project in northern Quebec…
7. Rob McEwen is the mining world’s top commander-in-chief for 2016, according to an extensive survey of its readers and viewers by Kitco News…”Currently, McEwen is the chief executive and chairman of his own company, McEwen Mining (TSE: MUX). A believer that management should be as personally invested in a company as its shareholders, he owns 25% of the outstanding shares of McEwen Mining; he receives no salary. This year, McEwen hit a major milestone by getting the stock (TSE: MUX) above $1 at the start of 2016. The company is now preparing to end the year with positive free cash flow, no debt and over $70 million in the treasury. As for a personal milestone, this January McEwen will be inducted into the Mining Hall of Fame. Past great feats include his appointment to the Order of Canada, the country’s highest civilian honor. McEwen has donated in excess of $60 million, some of which went to the McEwen Centre for Regenerative Medicine at the Toronto General Hospital and the Schulich School of Business, Toronto”…
BMR Christmas Posting Schedule…
7 @ 7 and BMR Morning Musings return next Wednesday, December 28, when Canadian markets re-open…
Christmas message tomorrow…
Check for separate postings prior to next Wednesday depending on market developments…comments section remains open throughout the Christmas holiday period…
Mmk, pretty good chunk on ggi just taken, hold on to your shares folks!
Comment by Laddy — December 23, 2016 @ 8:28 am
Kliyul ain’t complete without the Red Lion, Laddy, so how AuRico decides to handle will be interesting to see…advantage is definitely GGI’s and now they have every reason (it’s the right time) to lay out their cards…
Comment by Jon - BMR — December 23, 2016 @ 9:31 am
Steve, please wait until 2017 so we can contribute to our TFSA’s prior to news.
Merry Christmas to all and a healthy and prosperous 2017.
Comment by Dave2 — December 23, 2016 @ 10:16 am
Yes agreed, and just the tip of the glacier, the comment I seen about ggi being the story of the year for 2017 may not be all that far fetched with the projects they have, finally hey!! Should be a nice 1st quarter. Have a safe and happy holiday Jon and bmr, and everyone else.
Comment by Laddy — December 23, 2016 @ 11:10 am
Jon
what is the earliest that GGI could start a drill program at the E&L?
Merry Christmas Too!!
Comment by greg — December 23, 2016 @ 2:01 pm
John
is it possible to do a chart on TLT, its not a commodity, but it could be a great opportunity for all of us to make a buck or too as it is more oversold than it has ever been and the COT, the smart money is betting on a bounce higher… if not I understand..
thanks
Comment by greg — December 23, 2016 @ 2:04 pm
Well, nice strong finish for the venture and gold holds 1130, should make everyone’s holidays a little brighter.
Comment by Laddy — December 23, 2016 @ 2:52 pm
Jon … did you know that Cruz Capital used to be Brookmont with none other than Jason Gillotti at the helm??????
Am I accurate???
Comment by Jeremy — December 23, 2016 @ 3:58 pm
Jon – it seems Jason may not be directly involved.. but people have stated that they received calls from him reagrding cruz….. I should have known when I got 4 calls from Nelson in 10 days.. the brookmount/canasia/makena gang were the only ones to boiler room their stock..
this is not good mate… these guys are crooks..
Comment by Jeremy — December 23, 2016 @ 4:08 pm
and fk… here we go again.. Vancouver, BC (FSCwire) – Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US: EQTRF) (Frankfurt: T6UN) intends to pursue a share consolidation of the Company’s outstanding common shares (“Common Shares”) at a share consolidation ratio of one (1) post-consolidation share for every ten (10) pre-consolidation Common Shares (the “Consolidation”). The Consolidation is subject to TSX Venture Exchange approval.
Read more at http://www.stockhouse.com/companies/bullboard/v.eqt/equitas-resources-corp?postid=25637553#vKJQrQuu7lJgluWW.99
Comment by Jeremy — December 23, 2016 @ 4:11 pm
Jon – cruz capital is really brookmount .. jason Gallotti and crew…. bad people….
cant believe you actually recommended this company with those crooks behind it….
Comment by Jeremy — December 23, 2016 @ 4:12 pm
One of the reasons I am very confident for 2017 is that the major markets have done really well and confidence levels are high. People are much more likely to invest in the junior sector when they are feeling good and making money in other areas, no forced selling because of margin calls these days, unlike 2008-09. I really enjoy this board, wishing everyone a great holiday and a safe and profitable 2017!
Comment by Danny — December 23, 2016 @ 4:27 pm
Was hoping KTN would make .25 or .26 when it fell below .30 on the monthly chart, but its probably enough of a steal here.
Jon, John, Daniel, BMR staff, and all the posters – hope you have a very Merry Christmas filled with peace, love and good cheer. God Bless.
Comment by DBReese — December 23, 2016 @ 4:42 pm
EQT
What a mess
Shareholders get screwed again
Comment by Greg — December 23, 2016 @ 4:43 pm
That’s what happens when companies let their share structures get out of control with cheap financings.
Comment by Jon - BMR — December 23, 2016 @ 4:57 pm
MERRY CHRISTMAS TO JON & JOHN AT BMR! ALL THE BEST!
Comment by STEVEN1 — December 23, 2016 @ 7:31 pm
Jeremy, when Cobalt makes its move in 2017, and becomes the flavor of the month, you’ll think differently. Multiple companies have been positioning themselves in the northern Ontario Cobalt region the last 6 months and Cruz Capital was one of the first movers (the Cobalt grades in this district are about as high as you’ll see around the world). I’ve toured the area, I’ve had my feet on the ground there, and rest assured there is going to be very good money made on some of these deals. They’re all quite promotional, and Cruz is a good example, but at least investors have a healthy chance if they’re in at the right levels and have an exit strategy as the promo heats up. Cruz has shown the ability to raise money ($2 million), they have some very promotable properties, and one of my points was the fact that now is a good time for accumulation in this particular stock given the fact that free-trading paper from the summer financing recently came into the market. Liquidity in the stock has been excellent. Strong support at 10 cents. It’s trading at 0.14 and 2017 will be a Cobalt year. You’re saying you can’t make money on this?
There are a lot of things that scare me about Venture companies – crooks are far from the only problem (how about incompetent geologists and management?). You say you got 4 calls from Nelson in 10 days – that’s great, makes me even more bullish. Shows these guys are working.
Comment by Jon - BMR — December 23, 2016 @ 9:15 pm
JOn – I got bamboolzed by this same cast of characters before… so I have experience with them.. and if you are on the right side of the ‘trade’ then you will be or might be OK…
but these guys do not go into anything to advance the company or deposits.. they raise money, sink one hole and move on.. so the stuff they do is legal by Venture standards..
thats why there needs to be a dose of caution especially with these guys.. maybe this time its different????
Comment by Jeremy — December 24, 2016 @ 5:51 am
You have valid points, Jeremy, and unfortunately there are far too many situations on the Venture when those who are behind a deal are really much more interested in trading paper than building a real company. Then you have the exact opposite, which can be just as bad, when there’s a group that’s intensely focused on building a real company, so to speak, but they’re clueless on the market side and the stock is a failure even though there is success on the ground. Investors need to be able to distinguish between those situations. The “sweet zone” you look for is an honest, hard working and highly capable management team with strong marketing/promotional capabilities, building on the foundation of a great project or projects. Those situations have the most attractive risk-reward ratios.
Comment by Jon - BMR — December 24, 2016 @ 8:20 am
Jon
What is the earliest time frame that GGI could start drilling at the E&L? and do you think they will start a drill program as soon as it is possible whether wise?
Thank you
Comment by Greg — December 24, 2016 @ 8:39 am
Greg, first priority for GGI is to define the specific drill targets through the work that’s being carried out now by their expanded team. I believe we could see something even more powerful regarding the E&L emerge in January as Makela, Goldie, Buckle and others are going through everything (historical and current) to model the existing deposit and what’s believed to be represented by the “Q” anomaly and other target areas. Imagine when that’s put out! I’m sure they’ll want to do more ground work beginning in the late spring prior to the summer drilling. In the meantime, I expect GGI to be hopping on its horse to create further excitement with work on the ground somewhere in January. Given the E&L, the Red Lion (which we’re going to hear about very soon I’m sure – thanks AuRico!), and Mexico, this 1-2-3 strategy should allow for a very buoyant market right out of the gate in the New Year IMHO.
Comment by Jon - BMR — December 24, 2016 @ 9:08 am
Jon – well said…. trading paper… great line.. as one would say spend other peoples money!:)
Comment by Jeremy — December 25, 2016 @ 9:45 am
The next big eye opener will be Cxo! Drilling as soon as they get permits. Still very cheap.. Load up!
Comment by Greg — December 25, 2016 @ 8:43 pm