Gold has traded between $1,283 and $1,293 so far today…as of 8:30 am Pacific, bullion is down $5 an ounce at $1,287…Silver is up a penny at $18.04…Copper is 2 cents higher at $2.49…Crude Oil has slipped 81 cents to $45.41…inventories of U.S. commercial Crude rose more than expected last week, pushing stockpiles to the highest ever on record…the U.S. Dollar Index, meanwhile, is up more than one-quarter of a point at 94.29…
Not surprisingly, mergers and acquisitions among mining assets declined to the lowest in a decade last year as companies shied away from large deals and private-equity funds were slow in execution, according to a report from Ernst & Young…the value of mining mergers and acquisitions fell 49% to $44.6 billion, the lowest since 2004…the number of deals declined 23% to 544…
The Dutch central bank denies that it has increased its Gold reserves, correcting earlier information from the International Monetary Fund…several media outlets reported yesterday that based on IMF figures, DNB’s Gold stock increased last month. “This is incorrect,” the bank said in a news release, adding that its reserves remain unchanged at 612.50 tonnes which makes up 53.9% of the country’s total foreign reserves…according to the figures from the IMF, the Dutch central bank has the 10th highest Gold reserves in the world…
With a Fed statement coming in a few hours (11:00 am Pacific) following its 2-day meeting, the potential exists for some volatility in the markets today but there ‘s just a statement coming from the Fed, no Janet Yellen news conference following this meeting…Fed officials will also not be releasing any new economic projections, but markets will be watching for any “tweaks” in language regarding the central bank’s economic assessment and policy signals…since last month’s meeting, Oil prices have continued their downward trajectory while the greenback has pushed higher – both have the effect of keeping inflation considerably below the Fed’s target rate…
China’s renminbi has clocked up another major milestone on its march toward internationalization by breaking into the top 5 most-used global payment currencies…according to data from Swift, the international currency clearing system, 2.2% of the world’s payments were conducted using the Chinese currency in December, putting it above both the Canadian and Australian dollars for the first time…
The Monetary Authority of Singapore said today it would slow the Singapore dollar’s rise against a basket of currencies, making the city state the latest country to ease monetary policy as inflation slows across much of the world and growth prospects dim…
Greek markets continue to wilt in the wake of Syriza’s election victory, with stocks and bonds being particularly hard hit by fears that the anti-austerity party could derail the terms of its financial support from its European partners…meanwhile, is Greek’s radical newly-elected prime minister trying to cozy up to Vladimir Putin?…it’s worth noting that Greece has distanced itself from calls to broaden sanctions against Russia because of the escalating conflict in Ukraine, indicating that it could be looking east to Russia (its historical ally) for support…not a wise move…
Keystone Update
The U.S. Senate is on track to pass legislation to approve TransCanada Corp.’s Keystone XL Oil pipeline by the end of the week, Majority Leader Mitch McConnell says…because 6 Democrats have signed on as sponsors of the Keystone bill, there are expected to be enough votes for passage though not the two-thirds margin required to override a veto from President Obama…
Tensions Increase On Israel’s Northern Borders
Israel was hit by two artillery attacks along its northern border today, its military said, and Israeli forces retaliated with attacks in Lebanon…Prime Minister Benjamin Netanyahu warned that Israel would respond sharply to today’s rocket and mortar attack, the second in as many days on the country’s northern borders, and news is just out that 2 Israeli soldiers were killed in the attack…the terrorist group Hezbollah, which controls southern Lebanon, claimed responsibility for the artillery fire…
Today’s Equity Markets
Asia
China’s Shanghai Composite fell for a second straight day, losing 46 points or 1.4% to finish at a 1-week low after data yesterday showed December industrial profits falling an annual 8%…
Europe
European markets were mixed today…
North America
The Dow is up 8 points at 17395 through the first 2 hours of trading today…
Dow Updated Chart
The Dow continues to show some signs of weakness in this 4-month daily chart, but this market of course has been very resilient with buying rushing in on any significant dips…what the Dow could be gearing up for is a possible test again of the rising 200-day SMA just above 17000…
Apple (AAPL, Nasdaq) is higher today after reporting a blockbuster quarter yesterday, blowing past Wall Street’s most optimistic expectations…the company sold almost 9 million more iPhones than expected, while its cash pile ballooned to the point that it could buy about 480 of the S&P 500 companies outright…
In the coming days, the world’s biggest publicly traded Oil companies will report fourth-quarter earnings, offering the best look yet at the bite lower Crude prices have taken out of Big Oil…
In Toronto, the TSX is down 71 points as of 8:30 am Pacific while the Venture is off 4 points at 673…
Garibaldi Resources Corp. (GGI, TSX-V) Update
Garibaldi Resources Corp. (GGI, TSX-V) has been quiet to start 2015, but that’s likely just the lull before the storm as we’re anticipating important exploration breakthroughs for GGI on no less than 4 fronts led by the expanding Rodadero high-grade discovery in Sonora State…geologically, it appears there are linkages among at least some of the dozen or so targets at the 50 sq. km Rodadero North Project which transitions from high-grade Silver near-surface in the west, confirmed through drilling at Silver Eagle, to high-grade Gold moving east…this has obvious scale to it, along with impressive grades, so it’s not surprising that at least 1 major has already had boots on the ground there…more results from Silver Eagle are expected shortly…based on the reported visuals, we expect they’ll confirm a growing system…
Also in Mexico, GGI is expected to follow up soon on some outstanding near-surface drill results from the La Patilla Gold Property in Sinaloa State including the last hole, LP-14, which cut 10.4 g/t Au over 8.5 m within a broader 30-m interval grading 3.1 g/t Au…La Patilla was acquired for its near-term exploitation potential, and the company has already negotiated a long-term agreement with the local community to allow for any future metal extraction on the property…
Meanwhile, GGI completed a strategic $1.1 million financing in December to immediately advance its suite of promising properties in B.C., highlighted by the 262-sq. km Grizzly Project in the heart of the Sheslay district…so we see a 1-2 punch with Mexico and B.C. combining to make GGI 1 of the most exciting exploration plays on the Venture in 2015…
Technically, John’s updated 3-year weekly chart shows a triple bottom on a consolidation marked by declining volume (bullish)…RSI(14) has found support and is now beginning to trend higher with plenty of room going north as it’s only at 40%…
GGI is unchanged at 17.5 cents as of 8:30 am Pacific…
Gainey Capital Corp. (GNC, TSX-V)
Mexico is 1 of our favorite jurisdictions, and there’s another company with good things happening there that we suggest our readers check out and perform their due diligence on – Gainey Capital Corp. (GNC, TSX-V)…
GNC is an intriguing and emerging force among juniors in the prolific Sierra Madre region where the company is generating cash flow from its 300-tpd mill and processing center in Huajicori, Nayarit State…Gainey operates the only gravimetric/flotation processing center in the area…
What also has us particularly excited about Gainey is the company’s El Colomo Gold-Silver Project that covers 19,000 hectares with multiple high-grade targets…a drill program is being lined up for El Colomo which should definitely generate some excitement in the market…
Financially, Gainey is in solid shape (cash flow positive) and reported approximately $2.5 million in working capital as per its latest financials (Sept. 30)…
Technically, a confirmed breakout was confirmed in GNC yesterday above a horizontal channel that was in place since last fall between 17 and 25 cents…importantly, the breakout came on increased volume, and the ADX indicator confirms the new bullish trend…
GNC is up a penny-and-a-half at 31.5 cents as of 8:30 am Pacific…
Kaminak Gold Corp. (KAM, TSX-V) Update
Kaminak Gold (KAM, TSX-V) is steady on more results from its Coffee Project this morning, including a new area of mineralization discovered through drilling 900 m south of the Kona Gold deposit (1 of several deposits at Coffee)…
Kaminak is targeting the completion of its Coffee feasibility study by late 2015/early 2016…drilling this year will comprise continuing resource delineation infill, condemnation drilling of areas containing proposed mine infrastructure, and geotechnical and hydrological drilling…environmental and heritage baseline studies, and engineering studies into the optimal route and design of the access road, are also advancing as planned…all metallurgical sampling was completed in 2014, and composites are now at a lab undergoing leaching and other test work…
Technically, after many failed attempts since the spring of 2013, Kaminak has finally broken out above the “neckline” resistance as shown in this 2.5-year weekly chart…this is an important development and suggests more near-term gains are likely after a strong move already this month…
KAM is off 3 pennies at $1.11 as of 8:30 am Pacific…
Calibre Mining Corp. (CXB, TSX-V) Update
Calibre Mining Corp. (CXB, TSX-V) continues to look strong…the company has found exploration success on its own and with partners in the prolific northeastern part of Nicaragua…
Overbought technical conditions last September/early October unwound in November and December, and the now-rising 50-day moving average (SMA) at 14 cents is providing new support…
Last week, Calibre announced final assay results from Phase 1 drilling at the Eastern Borosi Gold-Silver Project being financed by IAMGOLD Corp. (IMG, TSX) under an option agreement…5 Gold-Silver vein systems were tested over a combined strike length of 3 km through 40 drill holes (5,500 m), and drilling encountered high-grade zones on each of the structures…results included 5.07 m grading 13.44 g/t Au (GP14–028) and 2.76 m @ 26.48 g/t Au (GP14–030), testing the down dip portion of the Guapinol and Vancouver structures…
IAMGOLD was encouraged enough by the results to decide to launch a 5,500-m Phase 2 program to commence this quarter…
CXB has responded well to last week’s news and closed up a penny yesterday on its second-best volume day of the year so far, 774,000 shares (all exchanges)…it’s unchanged at 16.5 cents in early trading today, with the trend remaining solidly bullish…
John and Jon both hold share positions in GGI.
GGI – thank you for your latest input and charts. Much appreciated. It has been quiet but I believe their forthcoming news will speak loudly
Comment by Frank — January 28, 2015 @ 8:58 am
Its funny you mentioned Ecuador yesterday. I am expating (moving) there later this year. It is ranked the number 1 retiree place in the world. One of the cheapest places to live and with world class healthcare that is affordable. I have been researching retiring destinations since 2007. Ecuador is tops. I speak to many Americans there each week through a website. jon, let your fiancee know that I am thinking of Banos, Loja, Machalla, or Cuenca just for fun.
Comment by dave — January 28, 2015 @ 10:50 am
Taken from Stockhouse
Jim Sinclair’s Commentary
There is a Bull hiding in the bushes. It is the junior gold shares that have recently been attacked and decimated by market terrorists. These algos and operators are no better than ISIS.
They attack at periods of weakness with the intention to kill, more than even profit They coordinate with internet trolls, and bloggers to beat the bushes in print while they wail away at the bid. When will you recognize that the trolls pretend to have your interest in mind when they do their evil deed?
Clearly they do not care about your welfare as they claim, unless they are self destructive, which they are not.
Investing is now full out war. No prisoners are taken. The tide is turning when the destroyers will be themselves destroyed. It has always been so in war.
Read more at Stockhouse website…
Comment by Bert — January 28, 2015 @ 11:56 am
Hi John and Jon….I’m curious do you have any plans of putting out a list of interesting micro caps for 2015 as you did in 2014. As always a great and interesting website. Keep up the great work.
Comment by Alex — January 28, 2015 @ 1:18 pm
Hey guys. Keep an eye on fnc.v Apparently the president is gone to China this week to meet up with Pangang Group of China ($24 billion market cap) to discuss Magpie and the proprietary process. Also awaiting assay results from their high grade gold Robidoux property.
(Last time I recommended something was Inca One at 6-8 cents and it hit a yearly high a few weeks ago of 24 cents)
Comment by Tony T — January 28, 2015 @ 1:32 pm
Dave- sorry off topic for others – I am also going to be moving to Ecuador at some point and have a friend that had a condo there for many year and spent 6 month a year there. He is now permanently living there. I went and visited him for a few weeks to see how I would like it and plan on going a again to ensure I will not regret my decision. Cuenca is a nice place. What website are you talking about.
Comment by d4 — January 28, 2015 @ 2:06 pm
You BMR fellows out of GBB yet ?
Comment by franky — January 28, 2015 @ 2:53 pm
Jon, this is why I believe your site visit was Rodadero, Mexico. The only thing is though you must have started in the east and went west because you said you tripped over a gold bar first, then got up and tripped over a silver bar – LOL
Rodadero North Project which transitions from high-grade Silver near-surface in the west, confirmed through drilling at Silver Eagle, to high-grade Gold moving east
Comment by Dan — January 28, 2015 @ 2:59 pm
Out of GBB, Franky? In 2011, yes, as we indicated back then. Different situation now. I’ve actually been accumulating my own position between 4 and 5 cents, as John has as well, since December. And for reasons that we’ve made very clear as GBB draws ever closer to the production stage at Granada, needing just the 1 final permit (IMG already has the permit for Westwood to handle Granada ore).
There’s another reason why now is the best time to accumulate – because there is a supply of stock available, though that supply is declining and will diminish sharply in the days ahead at the current rate of volume. The stock that is coming out now is almost entirely from the flow-through PP last year, Franky. We see where things are going with GBB, and the flow-through selling has nothing to do with the fundamentals of the play. So it’s the perfect time to be accumulating IMHO, also comfortable in the knowledge that a) the rolling production start has robust economics, even more favorable now with the cheap Canadian dollar and low Oil prices; and b) I personally believe we’re going to see a much bigger resource emerge at Granada.
Technically, GBB is turning the corner. Our charts show that. Franky, you make money in the market when you buy low and sell high. That’s how it’s done. I’m buying low on GBB right now with the intention of selling high later on as this story reignites and the fundamentals really kick in (or GBB gets taken out). I look at the market cap right now and given what GBB has, it’s dirt cheap IMHO.
When GBB is revalued in short order, those who were sitting on the sidelines when this could have been picked up at a nickel or just below will be kicking themselves or chasing the stock higher. That’s the market. We’re excited about GBB now because we see a genuine opportunity. We called it right with this one in late 2009/early 2010, and I’m convinced our timing is correct again now.
Comment by Jon - BMR — January 28, 2015 @ 3:09 pm
Sorry, off topic: Dave and d4, if I may add my two cents: I had a friend who lived in Chile and recently moved back to Idaho and bought some land. The reason he moved to Chile in the first place was to avoid the collapse of the US… so I was surprised to learn that he relocated back to the US. When I asked him the reason why, he said South America is the last place you want to live when the SHTF. The locals have no respect for “the white man” when push comes to shove. He feels he can weather the storm better at home than in South America. Keep in mind the risks when relocating to another country. All the best….
Comment by chris — January 28, 2015 @ 3:10 pm
When will the report of your site visit be released? Tomorrow will be two weeks since your visit. You must have signed a NDA? Thanks,
Comment by Dan — January 28, 2015 @ 3:46 pm
I am not a shareholder of GBB, mainly because of the share structure.
Although someone from the company told Jon that there will not be a
rollback, there’s one scenarios which may come into play sometime in
the future, that is any financing may be contingent on a roll back.
For the sake of shareholders, i hope we don’t see one, but all aspects
of buying a beat up stock should be debated.
Comment by Bert — January 28, 2015 @ 4:11 pm
Interesting discussion regarding Equador!! Thanks!
Comment by Greg J. — January 28, 2015 @ 4:23 pm
The BMR guys must not have been on a recent site visit to GGB, this from the BMR special alert this morning:
We’re pleased to announce that BMR is headed back to the Granada Gold Property in February for our first site visit there in over 4 years. Kind of like a “reunion”, of sorts, and we intend on getting the word out in a unique way on how a junior has survived the most difficult of times in this industry and is preparing to put a property into production just 5 years after a game-changing discovery.
Hmmm, maybe it was GGI in Mexico and they must have signed an NDA….
Comment by Greg — January 28, 2015 @ 7:27 pm
d4 and Chris. Keep in mind that Chile is not Ecuador. d4 – the website is expatexchange.com , then click on Ecuador on the left hand side. All day long interactions with the americans. And yes, I truly do believe the U.S. will go bankrupt. If anyone says it can’t happen here I suggest you google “normalcy bias”.
Comment by dave — January 29, 2015 @ 6:25 am
Dave- It doesn’t matter where you live. When the collapse happens, everyone in the world will be affected. And if the US goes bankrupt, all those expats in Ecuador can kiss their retirement/investment income good-bye.
Comment by chris — January 29, 2015 @ 6:55 am
Dave
I respect your opinion & hopefully you will respect mine.
As i see it, normalcy bias is opinions put out in the
form of blogs & no doubt, written by one person. Of
course, anyone forming an opinion, even those predicting
a rise in gold, has a 50/50 chance of being correct, but
in this case, i would suggest that if Russia, with so much
stacked against them, hasn’t as yet declared bankruptcy,
there’s very little chance that, the U.S. will ever find
themselves in such a position…
Comment by Bert — January 29, 2015 @ 8:04 am