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1. Gold has traded between $1,240 and $1,247 so far today…as of 7:00 am Pacific, bullion is off $3 an ounce at $1,242…Silver, which is enjoying another constructive week, is relatively unchanged at $14.71…Copper and Nickel are each up slightly at $2.79 and $4.87, respectively…Zinc is flat at $1.20 while Cobalt remains steady at $25.06…Crude Oil is 46 cents lower at $50.69 while the U.S. Dollar Index has fallen more than one-third of a point to 97.06…market participants appear more optimistic about the prospect of the U.S. and China reaching a comprehensive trade agreement…a flurry of news this week has pointed to cooling tensions between the 2 global powers…yesterday, Reuters reported that Chinese state-owned companies had bought more than 1.5 million tons of U.S. soybeans – China’s first major U.S. soybean purchases in more than 6 months and another sign that the country plans to step up efforts to support its slowing economy…the European Central Bank left interest rates unchanged today and reaffirmed plans to end its asset-purchase program known as quantitative easing this month…however, rates will remain at record lows “at least through the summer” of 2019 and the ECB added that it’ll reinvest proceeds from maturing securities for an “extended time” even after interest rates start rising…updated economic projections show downgrades to the euro zone inflation and growth outlooks…
2. Palladium hit a record high again today, briefly pushing as much as $30 above the Gold price, on optimism about automotive demand if peace comes to the U.S.-China trade relationship…the metal, however, is due for a stiff pullback in 2019 according to Commerzbank…“Nothing appears capable of halting the Palladium price in its tracks,” the bank says…“After having already gained by 1.5% yesterday, it climbed to a new record high of over $1,270 per troy ounce this morning. No doubt the price is still being driven by reports from China that the government will reduce import tariffs on U.S. cars from 40% to 15%. In addition, speculative financial investors are presumably jumping on the bandwagon and pushing the price ever higher”…already, Commerzbank says, statistics compiled by the Commodity Futures Trading Commission through December 4 show that the net-long position in Palladium reached the highest level in over 9 months…“In our view, this means that the price rise has no solid fundamental basis, so the current price level is not justified,” Commerzbank added…“We therefore expect the price to correct significantly in the next few months”…as of 7:00 am Pacific, Palladium is off $2 an ounce at $1,241, pulling back from its morning high…
3. American economic optimism took a sharp turn down in the 4th quarter from record high levels, with the CNBC All-America Economic Survey registering its biggest quarterly drop in its 12-year history…yet the decline in optimism looks to be doing little to dissuade Americans from shopping for the holiday season…spending plans surged to their highest level in the history of the survey, propelled by strong income and wage gains over the past year…the percentage of Americans viewing the economy as excellent or good dropped 8 points to 50%…those believing the economy will improve dropped 5 points to 31%, bringing it back down to the long-run average…average holiday spending plans, however, rose above $1,100 – the first time the holiday survey has seen an average number above $1,000…the poll of 802 Americans was conducted December 3 thru 6 and has a margin of error of plus or minus 3.5 percentage points…
4. The Dow is up 42 points as of 7:00 am Pacific…in Toronto, the TSX is 28 points higher in early trading…Kirkland Lake Gold (KL, TSX), riding an 11-session winning streak, has cut 144 g/t Au over 16.5 m (14.4 m estimated true width) in more superb results released this morning from continuing underground drilling at its Fosterville mine in Victoria, Australia…results from 47 new drill holes, totalling 17,169 m, continue to return intervals with exceptionally high grades and visible Gold outside of the December 31, 2017, Measured and Indicated resources in the Swan Zone…2 major Toronto-area municipalities moved yesterday to prevent private storefronts from selling marijuana within their borders…Mississauga City Council, representing the province’s 3rd-largest city, just west of Toronto, voted 10-2 in favour of opting out of cannabis retail…a few hours later, city councillors in Markham, just north of Toronto, also voted “no” on cannabis retail in a 12-1 vote…Toronto city council will vote on the same issue today…Ontario has given municipalities until January 22 to decide whether to allow physical cannabis stores within their boundaries…MYM Nutraceuticals (MYM, CSE) announced this morning that it has signed a term sheet for a $25 million equity investment by Alumina Partners LLC, a New York-based private equity firm that has made substantial investments in the cannabis space…the investment can be drawn over a 2-year period and is expected to close before the end of the year once negotiations of the definitive documentation are complete…the Venture is flat at 562…Aben Resources (ABN, TSX-V) is off a penny at 13 cents after releasing weak results from the final holes of its 2018 drill program at Boundary North…
5. GT Gold (GTT, TSX-V) is under more sell pressure this morning but continues to deliver long intercepts of Gold-Copper porphyry mineralization at its Saddle North discovery in the Red Chris district…highlighting new results this morning were drill holes 106, 108 and 110…hole 106 intersected 533 m @ 0.24 g/t Au, 0.21% Cu and 0.51 g/t Ag…hole 108 cut 324 m @ 0.43 g/t Au, 0.32% Cu and 1.09 g/t Ag, and hole 110 returned 545 m @ 0.33 g/t Au, 0.20% Cu and 0.49 g/t Ag…Charlie Greig, VP-Exploration, commented: “The three northerly holes – 106, 108 and 110 – are particularly significant as they link the higher-grade parts of holes 93, 85, and 90 to the south and east, and hole 102 to the north and west. Within holes 93, 106 and 108, continuity of the higher grades up-dip to surface is now also apparent. The resulting picture is a broad zone of high-grade stockwork and sheeted vein mineralization in place at surface, extending more than 1,000 m to depth and broadening out along strike; grades within it also apparently increase to depth. We now eagerly anticipate the results of our deepest hole, TTD109, which is testing our high-grade core down-dip of holes 93 and 85“…Greig and the team at GTT can only hope that hole 109 works as well for them as it did for Murray Pezim at Eskay Creek in 1989…GTT is off 6 cents at 59 cents as of 7:00 am Pacific…there’s no question the market is suffering from management’s unnecessarily cheap September financing…
6. Silvercrest Metals (SIL, TSX), which recently received a $30.6 million investment from SSR Mining (SSRM, TSX), released robust additional Phase 3 infill drill results this morning for its Las Chispas Property in Sonora, Mexico…the current drill program is designed to increase resources through expansion drilling and improve confidence in the resource with closely spaced in-fill drilling in the Babicanora Vein, including the high-grade Area 51 zone…all 12 newly reported in-fill core holes reported by Silvercrest this morning were targeting mineralization in the Area 51 zone…the company says the weighted average (true width, uncut, undiluted) of today’s in-fill holes is 3.4 m grading 12.4 g/t Au and 796 g/t Ag (1,725 g/t Ag equivalent)…by comparison, in the September 13 resource estimate, Area 51 had an estimated weighted average true width of 2.7 m, grading 7.13 g/t Au and 614 g/t Ag (1,148 g/t AgEq)…CEO Eric Fier commented, “With further positive results from closely spaced in-fill drilling, we continue to confirm the continuity of high-grade mineralization in the Babicanora Vein, including the Area 51 zone. These additional drill holes are indicating wider mineralized thicknesses in several areas than previously modelled and are starting to identify discrete multi-kilograms per tonne mineralized shoots. All 19 in-fill drill results reported to date have intercepted grades above the company’s cut-off of 150 gpt AgEq. With 9 surface drill rigs operating, SilverCrest will continue with both its in-fill and expansion drill program focused on further de-risking the current resources and finding new discoveries in the Babicanora area. In conjunction with the ongoing drill campaign, we are aggressively working on the third resource estimate and a Preliminary Economic Assessment”…
7. Canada risks a financial crisis within three years, a Citigroup report warns…several other countries are also vulnerable, according to the Citi report titled, “Are We Headed For A Global Debt Crisis?”…the bank estimates that governments, households and corporations around the world have amassed a mountain of loans about 3 times as large as the level of 20 years ago…“The world is primed for a debt crisis,” Citigroup analysts concluded…in Canada, households have gone on a borrowing binge, in large part because of soaring home costs…Canada’s energy producers, manufacturers and other non-financial companies have also gone deeper into hock as prices for Oil in particular have pulled back…the combination of high household debt and elevated borrowing among non-financial companies has boosted the private sector’s debt-service ratio…“Canada’s current debt-service ratio suggests risk of financial crisis within 3 years, by our estimates”, Citi stated…it warns that rising rates could pose a particular threat to Canada as well as Norway, Sweden, Australia and the Netherlands…
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Attn: Daniel
Looks like the twice spurned suitor of MITK has decided to take control via the open market. New highs and heavy volume today. Latest offer was $11.50. Those guys are “cheap charlies”.
Comment by Marshall — December 13, 2018 @ 10:42 am
Hi Jon. .with so much of the resource market out of favor……..I have been out searching for none resource opportunities….
Have done the due diligence and have been accumulating a position in CVM……….a disruptive medical device developer which I believe is undervalued by poor junior market sentiment…Market cap 30 million …….they have cleared all the hurdles in R & D and have been doing confirmatory trials in 3 prestigeous US hospitals for 2 years……….FDA submission scheduled for Jan/feb..and NASDAC listing thereafter…….their numbers if achievable are impressive. Website has a great presentation……..cvrmed.com…..Wishing everyone a safe and enjoyable holiday season !
Comment by Larry — December 13, 2018 @ 11:26 am