BMR Morning Market Musings returns tomorrow.
1. Gold continues its winning streak, up another $2 an ounce at $1,250 as of 7:00 am Pacific…the next key resistance for bullion is in the $1,260’s…Silver has added 11 cents to $17.62 while the U.S. Dollar Index is off slightly at 99.72…
2. Global Gold ETFs recorded inflows for the 2nd straight day yesterday with inflows totaling nearly 9 tonnes during that time, according to Commerzbank. “This has reversed more than half of the outflows previously seen this month,” the bank said, adding that speculative financial investors are likely to “jump back onto the bandwagon”…in the run-up to last week’s Federal Reserve meeting, money managers in the Gold futures market cut net-long positions to the lowest levels since January, leaving them roughly 80% below last summer’s high. “There is ample upside potential, in other words,” Commerzbank says…
3. A quiet morning of trading so far with North American equity markets little changed from yesterday…U.S. home sales came in modestly higher than expected for February – 592,000 units vs. the consensus estimate of 562,000…the Venture is up 2 points at 803 as of 7:00 am Pacific…
4. Yesterday’s federal budget didn’t increase capital gains taxes as was rumored in some quarters, making investors think they’ve been given a “break” after their TFSA contribution limits had already been reduced, but nonetheless the free-spending Liberals have created large structural deficits after promising Canadians not to do that during the 2015 election campaign…ultimately, large structural deficits created through excessive government spending don’t propel an economy forward and can only be fixed by slashing spending and/or raising taxes…
5. Kinross Gold (K, TSX) is taking a piece of Bonterra Resources (BTR, TSX-V) in a transaction that’s expected to close tomorrow…Kinross is acquiring, by way of private placement, approximately 14.8 common shares of Bonterra at a price of 35 cents per share for total gross proceeds of just over $5 million, giving the producer 9.5% of BTR’s issued and outstanding shares on an undiluted basis. Nav Dhaliwal, President and CEO of Bonterra, stated: “We are very pleased to have secured an important investment and a strategic relationship with an industry leader such as Kinross. Their entry into the Urban Barry Gold camp further validates our ongoing progress and success at the Gladiator deposit and surrounding properties. The depth of technical expertise that Kinross offers will be of great value to Bonterra’s development going forward.”
6. Salazar Resources (SRL, TSX-V) has extended its El Domo deposit in Ecuador to the east with a significant increase in the thickness and grade of mineralization…drill hole CURI-218, collared approximately 240 m east of El Domo, was drilled westerly on section with earlier drill hole CURI-176 that previously marked the eastern limit of the deposit…CURI-218 intersected 14.4 m (13 m true width) of massive and semi-massive pyrite-chalcopyrite-sphalerite grading 2.6 g/t Au, 10.6 g/t Ag, 1.3% Cu and 6.6% Zn beneath an andesite sill that occurs in this area…the intersection in CURI-218 is located approximately 100 m east of the intersection in CURI-176…results from 3,400 m of a 10,000-m exploratory drill program were released this morning with the program expected to be completed during the 3rd quarter…
7. Silver Wheaton is proposing a name change at its annual shareholder meeting in May to Wheaton Precious Metals Corp. in recognition of the increasingly large role Gold plays in its bottom line…on Monday, Silver Wheaton reported 2016 net earnings of $195 million ($0.45 per share) compared with a 2015 net loss of $162 million ($0.41 per share)…Silver and Gold sales volumes in 2016 hit new records of 28.3 million ounces and 330,000 ounces, respectively…Silver Wheaton’s quarterly dividend increased for the 2nd quarter in a row to $0.07 as the impact of growing sales volumes, especially in Gold, resulted in operating cash flow growing to approximately $175 million in the 4th quarter of last year…
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Hi Jon….whats your thoughts on GGI. I was expecting a bit more traction by now with the announcing of the “nickel team” and also 3d modelling. Do you still think there will be a significant run up in share price prior to drilling. I would have been feeling a bit better if we were sitting in the mid 20’s now. Thoughts?
Comment by weatheritout — March 23, 2017 @ 8:02 am
My thoughts on GGI haven’t changed a bit, weatheritout…those who obsess with minute-by-minute, day-by-day trading often can’t see the forest for the trees…the broader picture is that all stocks (the juniors) in this Camp at the moment are quiet, and that’s mostly a reflection of the continuing Venture consolidation pattern…however, it’s important to point out that all these stocks are also at a higher base than they were at this time last year coming into the 2017 exploration season…what does that tell us?…it tells us we’re going to see higher highs this summer, which is consistent with the fact there’s going to be much more drilling by more companies throughout the district this summer—and a greater likelihood of a big new discovery somewhere…those who try to play games and guess the precise market timing of when GGI, CXO, SKE, TUD, ABN, MTS and the other half dozen or so juniors in the Camp are going to vigorously take off are probably going to be caught scrambling to get in (or back in) when that time comes…multiple different catalysts are possible…last year, we all woke up one April morning and found out that Seabridge was taking over SnipGold and that was a really important catalyst…the hour is quickly approaching for the 2017 catalyst…guaranteed to arrive before drilling starts in June.
Comment by Jon - BMR — March 23, 2017 @ 9:09 am
Sounds good….I haven’t sold a share and continue to pick away….but I’m getting close to what should be my maximum allocation. Take care
Comment by weatheritout — March 23, 2017 @ 9:14 am
Jon, I asked you this question yesterday, does securing Barrick’s camp site change the plans for GGI to maybe have boots on the ground a little earlier than planned for the E&L.
Comment by pole — March 23, 2017 @ 9:42 am
Ggi’s sp has come down on very little volume, typically that is games, and or impatience, good things come to ones who wait, and ggi and the whole area is one of them. Patience and happy picken.
Comment by Laddy — March 23, 2017 @ 9:56 am
CPO – nice increase in the their cobalt holdings today
Comment by Foz1971 — March 23, 2017 @ 1:05 pm
Indeed, a good strategic acquisition, Fox1971. People need to be paying attention to the Cobalt price as it keeps edging up. Now $24.61. A breakout above $25 would be hugely significant. We’ll post a chart tomorrow.
Comment by Jon - BMR — March 23, 2017 @ 1:28 pm
CSR – PP details out. Meadowbank and their new friend Accilent are probably a good bet for feeding the mkt with shrs when this hits 30. weasel funds. no insiders on the PP. debt was settled with insiders though for a 1.9MM shrs. now that financing is out of the way, time for new news!
Comment by david — March 23, 2017 @ 2:00 pm
GGI – the number of times we have picked this carcasss, well the meat is getting thin! Only take a couple 100K shrs in buying, on good news, to take this back to 19+ cent range, so it seems today. This is the time, when a well rounded company trots out their off season news, like Mexico projects, where the work never really has to stop for snow. We already cleaned up the FT from Jan PP for Tora Tora, it seems, so any new news should be welcome.
Comment by david — March 23, 2017 @ 2:06 pm
BLO – this is whats happening:)
Like Jesse Livermore wrote, “If there’s some easy money lying around, no one is going to force it into your pocket.” The same concept can be more clearly understood by watching the trades. When a market manipulator wants you into his stock, you will hear LOUD noises of stock promotion and hype. If you are “in the loop,” you will be bombarded from many directions. Similarly, if he wants you out of the stock, then there will be orchestrated rumours being circulated, rapid-fired at you again from many directions. Just as good news may come to you in waves, so will bad news. You will see evidence of a VERY sharp drop in the share price with HUGE volume. That is you and your buddies running for the exits. If the deal is really for real, the market manipulator wants to get ALL OF YOUR SHARES or as many as he can… and at the lowest price he can. Where as before, he wanted you IN his market, so he could dump his shares to you at a higher price, NOW when he sees that this deal IS for real, he wants to pay as little as possible for those same shares… YOUR shares which he wants you to part with, as quickly as possible. The market manipulator will shake you out by DRIVING the price as lows he can. Just as in the “accumulation” stage, he wants to keep everything as quiet as possible so he can snap up as many of the shares for himself, he will NOW turn down, or even turn off, the volume so he can repeat the accumulation phase. The accumulation phase was TOP SECRET. The noise level was deadingly silent. As soon as the insiders accumulated all their shares, they let YOU in on the secret.
Comment by Jeremy — March 23, 2017 @ 6:23 pm
I mentioned this stock about a yr. ago NXO.v nexoptic. It traded 9 million shares to-day and price is $2.35 game changing technology in all optic devices using curved lenes. Flat. square lenes and very shorten stack. They preseht it april 4 at vanc.planiterium. Will be a game changer for all future cameras, I phones. telescopes etc. Flat lens,square aperatures,pre light, etc.
Comment by charleybarley — March 23, 2017 @ 7:14 pm
Jon….what do you think of funds that have been stock piling cobalt earlier on in the anticipation of a price run up and then dumping into the market. It gives me the feeling of the hay days of oil when massive shipping containers of oil were purchased by funds and temporarily stored off shore until certain price points were reached and they were fed into the market. And we know what happened to the price of oil. Makes you wonder at what price it doesn’t become feasible for cobalt to be used and alternatives are brought into the picture. Do you know what the price of cobalt needs to be for CSR to be profitable?
Thanks
Comment by weatheritout — March 24, 2017 @ 5:30 am
Keystone is on, announcement from Trump expected at 7:15 am Pacific…
Sean Spicer@PressSec @POTUS to make announcement on #KeystoneXL at 10:15am this morning
4:28 AM – 24 Mar 2017
Comment by Jon - BMR — March 24, 2017 @ 5:45 am
Jon
Your thoughts on those people/companies above who participated in the CSR PP?
Any concerns?
Thanks
Comment by Greg — March 24, 2017 @ 8:16 am
Not sure what you mean by concerns, Greg…it’s all good to me…the Pro Group participant took $50,000 worth of stock…I’m aware who that is, as I keep my ears to the ground, but not sure if I can reveal his name or not…he is a highly recognizable individual in the industry..
Comment by Jon - BMR — March 24, 2017 @ 10:36 am
Jon
David above mentioned Meadowbank and Accilent as being involved in the PP, and possibly be early sellers.. just was curious what your thoughts were about them, that’s all.
thanks
Comment by GREGH — March 24, 2017 @ 10:39 am
CSR PP was very well spread out and included significant retail and strong players overall, Gregh…as far as Meadowbank goes, whether they would be an early seller or not is pretty much irrelevant…look at the commission – only $9,800…that represents just 13% of the private placement…ZERO flow-thru in this financing…
Comment by Jon - BMR — March 24, 2017 @ 10:59 am
Thanks Jon
I tried to find the info last night on who all participated could not find an NR anywhere?
thanks for your feedback appreciate it.
Comment by GREGH — March 24, 2017 @ 1:15 pm
pole, my apologies, I missed your question earlier with all that’s going on: weather, not camp location, will dictate when everyone can start their exploration programs. A great camp set-up will make things easier once exploration begins.
Comment by Jon - BMR — March 29, 2017 @ 5:44 am