Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,310 and $1,321 so far today following yesterday’s dovish Fed announcement…as of 7:00 am Pacific, bullion is off $1 an ounce at $1,312…the yield on the benchmark 10-year Treasury note dropped to its lowest level since January 2018 this morning, a day after the Federal Reserve held interest rates steady and suggested no further adjustments will be needed for the rest of the year…downward pressure on U.S. yields continues to support the view that the greenback will weaken year which of course is positive for Gold, the broader commodity sector and the Venture…Silver is flat at $15.40…Copper is up a penny at $2.95 while Nickel and Zinc are unchanged at $5.95 and $1.31, respectively…Crude Oil has gained 12 cents a barrel to $60.11 while the U.S. Dollar Index has recovered one-quarter of a point to 96.16…the greenback is still the best currency of a bad lot…with the U.S. and China preparing for a fresh round of face-to-face trade negotiations, President Trump says the U.S. expects to keep tariffs on Chinese goods in place for a “substantial period of time” even after a deal, something that has apparently rattled the Chinese…“We have to make sure that if we do the deal with China that China lives by the deal,” Trump told reporters yesterday…administration officials have talked of removing tariffs in stages as Beijing shows that it has carried out parts of a deal, and reimposing them if China later backtracks…the details of a tariff rollback are the subject of ongoing negotiations, as are questions about enforcement, technology transfer, cross-border data flows and other issues…
2. “Mission accomplished”: Yesterday’s Fed announcement revealed that the central bank now believes its monetary policy is back to “normal”…this should be sweet music to the ears of Gold bugs…if this is normal, then the Fed has precious little ammunition for when economic conditions again turn abnormal…since 2015, the Fed has been “normalizing” monetary policy by raising interest rates and shrinking its bondholdings from levels intended for a weak, postcrisis economy…yesterday the Fed declared the process all but done…Fed officials see no more rate increases this year and perhaps 1 next year, and they will stop shrinking the balance sheet this September…yet by any historical benchmark, this “normal” stance of monetary policy is extremely stimulative…the federal-funds rate, at between 2.25% and 2.5%, is just 0.25% when adjusted for long-term expected inflation…by comparison, the real rate was 2.75% at the end of the Fed’s last tightening cycle in 2006, and 4% at the end of the prior cycle in 2000…and the Fed will still hold more than $3.5 trillion in bonds in September, equal to 17% of GDP, compared with 6% in 2006…
3. Great Bear Resources (GBR, TSX-V) has drilled 7.25 m of 30.2 g/t Au, including 1.5 m @ 131 g/t, in drill hole DHZ-031 in the Hinge zone of its Dixie Project in the Red Lake district…drilling continues to test along strike and at depth of the DHZ…some of the DHZ drill holes also cross the adjacent DL zone (Dixie Limb) at shallow depths and hence Great Bear is able to test both zones with the same drill holes…DHZ-031 intersected other significant Gold bearing quartz veins along a 141-m wide zone of increased quartz veining and alteration in the DHZ vein system including 4 m @ 11.7 g/t and half a meter of 60.7 g/t…the high grade intercepts in DHZ-031 occur 20–60 m west of previously reported drill hole DHZ-023 which included 3.40 m of 31.6 g/t Au…26 of 42 drill holes (62%) completed by Great Bear along 240 m of strike length of the DHZ that has been drilled to date have intersected intervals containing greater than 15 g/t Gold…results of shallow drilling of the Dixie Limb zone include 39.2 m @ 2.07 g/t starting at approximately 25 m depth, including 9.2 m of 5.4 g/t which includes 0.70 m of 20.5 g/t…Chris Taylor, President and CEO of Great Bear said, “The Hinge Zone continues to rapidly expand as we keep stepping out along strike and at depth. In our most recent results, drill hole DHZ-031 intersected a Gold-bearing quartz vein network consisting of multiple high grade veins within a 141 m (462 foot) wide drill interval. All current drilling is designed to cross the Hinge Zone at approximately right angles, meaning the interval widths are approximate true widths. The vertical depth of the DHZ-031 intervals ranges from approximately 60 to 190 m from the surface. The scale and strength of near-surface multi-veined gold mineralization at the Hinge Zone continues to impress”…
4. NexGen Energy (NXE, TSX) has appointed former Saskatchewan premier Brad Wall to the company’s board of directors…CEO Leigh Curyer commented, “On behalf of the Executive and Board of NexGen we are very pleased to welcome Mr. Brad Wall. Mr. Wall brings to NexGen extensive national energy policy, political and economic experience and has demonstrated a very strong commitment, results and advocacy in the best interests of Saskatchewan and Canada over his entire career. Mr Wall in his capacity as a director to NexGen is joining a team dedicated to developing a Canadian energy project that will deliver significant generational benefits to Saskatchewan and Canada and set new standards in responsible project development”…NXE is up 3 pennies on the news at $2.30 as of 7:00 am Pacific…
5. Canopy Growth (WEED, TSX; CGC, NYSE) has acquired AgriNextUSA, a hemp enterprise led by CEO Geoff Whaling that has been at the forefront of hemp advocacy and building a vibrant hemp sector in the United States…the acquisition will accelerate Canopy Growth’s entry into key American jurisdictions as regulations surrounding the full use of hemp as a crop begin to be implemented, thanks in part to the recently enacted 2018 U.S. Farm Bill…”The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential,” said Bruce Linton, co-CEO and Chairman of Canopy Growth…“Our significant investments, acquisitions and compilation of talented leaders such as Geoff will position us for swift expansion throughout the United States. By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products”…Hemp has the potential to disrupt several prominent industries: advanced materials, cosmetics, energy, fibre and textiles, food and protein production and the health and wellness sectors. In addition, hemp is a natural source of CBD, the non-intoxicating component of cannabis that can be used for health and wellness purposes in jurisdictions where legally permitted…
5. The Dow has added 53 points after the first 30 minutes of trading…in Toronto, the TSX is 13 points higher…streaming company Wheaton Precious Metals (WPM, TSX, NYSE) reported lower adjusted earnings in the 4th quarter late yesterday as revenue fell year-on-year due on weaker metal prices and lower Silver production…however, Wheaton generated almost $110 million in operating cash flow in Q4, bringing total operating cash flow for the year to over $475 million thanks to production of over 370,000 ounces of Gold, 24 million ounces of Silver and 14,000 ounces of Palladium, all in excess of the company’s guidance…in addition, Wheaton had record Gold production and sales in 2018…WPM has a great-looking chart with the stock breaking out to levels not seen since 2016…the Venture is off a point at 637 after hitting a new 2019 high yesterday…Nextleaf Solutions (OILS, CSE) has commenced trading this morning on the CSE…Nextleaf is an extraction and processing technology company that has developed a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of producing purified cannabinoid distillate, a tasteless, odourless cannabis concentrate best suited for infusing premium value-added products….”I firmly believe Nextleaf’s intellectual property portfolio for improving the purity and yield of cannabinoids obtained through the extraction and purification of cannabis biomass will be extremely impactful with the global legalization of cannabis and rapidly growing demand for oils and derivative products in medical and adult-use markets,” said CEO Paul Pedersen…OILS is at 34.5 cents on strong volume after 30 minutes of trading…
7. Another great example of the risks that exploration and mining companies face these days: Discussions between Lupaka Gold (LPK, TSX-V) and community leaders from the nearby community of Paran have been abandoned by the President of Paran, according to Lupaka President and CEO Will Ansley…“Once again Paran has resumed their illegal demonstration, preventing the company from accessing the Invicta Gold Development Project. In doing so Paran has failed to honour the agreement signed earlier in March, which included the commitment to provide continuous and safe access to Invicta as well as the commencement of a dialogue process. We are very disappointed in Paran’s decision to abandon our recent agreement, including the cancelation of the established dialogue table. We have worked very hard to engage with Paran, in order to find a long-term solution that meets the needs of all of our community partners. Unfortunately, they have demanded that all social and economic benefits from Invicta should go exclusively to the community of Paran, which contradicts the existing community agreements that the company has in place with Lacsanga and Santa Domingo. Lupaka has put forward alternate proposals, including investment strategies, however Paran remains adamant that all benefits must accrue solely to their community. When we insisted Lupaka will continue to honour the company’s existing community agreements, the President of Paran abruptly left the dialogue table and reinstated the blockade”…
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High trading volume in CLM today.
Comment by Bryan — March 21, 2019 @ 11:30 am
A lot of that is TD again…moving from CLM to IMR…
Comment by flyinthruu — March 21, 2019 @ 11:50 am
Well it’s nice to see the venture climbing, wish I could say that for the rest of my plays, sheesh, where in the heck did all the volume go, coming back soon I hope. Good time to keep adding I presume….
Comment by Laddy — March 21, 2019 @ 1:51 pm
Interesting update to GGI’s homepage – usually that’s a sign that something’s up.
Comment by BuckShot — March 21, 2019 @ 6:53 pm