Gold has traded between $1,171 and $1,179 so far today…as of 8:45 am Pacific, bullion is down $1 an ounce at $1,174…Silver is flat at $15.87…Copper is up a penny at $2.60…Crude Oil has fallen 65 cents at $59.62 while the U.S. Dollar Index is flat at 95.25…
U.S. gasoline demand in the week to June 19 hit the highest seasonal level since 1991, according to data released this morning by the U.S. Energy Information Administration…
Molycorp Inc. (MCP, NYSE) filed for bankruptcy protection today as the long-struggling rare-earths miner turned a page on one of the most dramatic commodities busts in recent years…the only U.S. miner and producer of rare-earth elements – 15 elements used as niche ingredients in magnets, batteries, catalytic converters and other high-tech products – says it had secured an agreement with creditors to restructure its $1.7 billion in debt…the deal also provides $225 million in new financing to continue operations…the stock is off sharply this morning, down about 40% to 22 cents…MCP surged to $80 a share in early 2011…
China will invest 500 billion yuan ($80 billion U.S.) in 193 major domestic aviation projects this year, the country’s aviation regulator has announced, to meet growing demand from travelers and to bolster growth as the world’s 2nd-largest economy slows…the announcement comes amid a wider effort by Beijing to increase overall infrastructure spending after economic growth slowed to a 6-year low in Q1…
Another example of judicial liberal activism and how judges are also now drunk on climate change Kool-Aid…Dutch environmentalists scored a major victory yesterday that could have global repercussions as a court ordered the government to cut the country’s greenhouse gas emissions by at least 25% by 2020…the ruling by The Hague District Court could lay the foundations for similar cases around the world, said the director of the organization that took the government to court on behalf of 900 Dutch citizens…
The plaintiffs argued – and the court agreed – that the government has a legal obligation to protect its people against looming dangers, including the effects of climate change on this low-lying country, much of which is below sea level and vulnerable to rising sea levels caused by “global warming”…
Platinum Long-Term Chart
Interesting Platinum chart…has it hit bottom?…the metal this week has bounced off important Fib. support at $1,062 with RSI(14) at 30%, slightly under the late 2008 RSI(14) low…sell pressure in Platinum has increased steadily since early 2012…next major support below the $1,060 area is $800…
But the
Today’s Equity Markets
Asia
China’s volatile Shanghai Composite sank 161 points or 3.4% overnight to close at 4529…in Japan, the Nikkei retreated nearly 100 points from yesterday 18-year high as traders took profits after the recent rally…
Europe
European markets were slightly lower today…talks between Athens and Greece’s international bailout supervisors are yet to yield results, raising the risk of a Greek debt default and potential exit from the euro…
North America
The Dow has climbed 23 points as of 8:45 am Pacific…U.S. consumer spending surged in May with the biggest monthly increase in nearly 6 years…the Commerce Department says consumer spending rose 0.9% last month after ticking up a revised 0.1% in April…
Yesterday’s revised U.S. GDP figures, while showing the economy contracted less than previously estimated during Q1, nonetheless highlighted several areas of concern…business investment – spending on construction, machinery, and research and development – fell at a 2% pace last quarter, still the worst reading for the category since 2009…
Other recent data show manufacturers have struggled through the 1st half of the year…factories are facing headwinds from a strong dollar that makes U.S.-made goods relatively more expensive overseas…exports fell at a 5.9% pace from January through March, led by an 11.6% decline in goods exports…imports, which subtract from GDP, rose at a 7.1% rate last quarter…
In Toronto, the TSX is off 19 points while the Venture is up slightly at 682 as of 8:45 am Pacific…
Osisko Gold Royalties Ltd. (OR, TSX) Update
Osisko Gold Royalties (OR, TSX) released an update this morning on drilling progress at its Coulon Project in James Bay, Quebec, which is already the largest undeveloped Zinc and Copper resource in the province…
Notably, hole CN-13–271W4 returned 2 impressive intersections from the middle of the mineralized zone in Lens 257 – 7.98% Zn, 1.57% Cu and 27.41 g/t Ag over 14.85 m, and 6.67% Zn, 4.25% Cu, 73.32 g/t Ag and 0.70 g/t Au over 14.2 m, respectively…the latter is the best intercept to date on the Coulon Project…work continues in Q3…
Meanwhile, it was also announced this morning that Osisko has completed a private placement of post-consolidation common shares with Unigold (UGD, TSX-V) for $1 million at a price of 20 cents per share…in addition, Unigold has executed an investment agreement with Osisko providing for certain participation, nomination and royalty/stream rights…OR now holds 17.3% of UGD…
Tweed Marijuana Inc. (TWD, TSX-V)
While we are not supporters of the legalization of marijuana, there were nonetheless a couple of important developments in this space yesterday that command the attention of investors…
In a deal that’s very much a “game changer” and legitimizes the sector, two of Canada’s largest medical marijuana firms are combining in a deal that will create a dominant domestic producer…
Tweed Marijuana (TWD, TSX-V) and Bedrocan Cannabis (BED, TSX-V) have agreed to merge, the companies said, in an all-stock acquisition by Tweed that values Bedrocan at about $58 million, or 84 cents a share, nearly 30% above its closing price Tuesday…
This is the first merger to occur in Canada’s medical marijuana space since the sector got off the ground last year after the federal government implemented new rules…the combined company (each one represents different market segments) will be the industry’s undisputed leader, with more than 25% of all the registered patients and production capacity across the country…it will have 3 production facilities in Ontario, and a total licensed sales capacity of roughly 6,000 kilograms of medical pot per year…
The new entity will be scaled up for revenue and some analysts believe it could become profitable within approximately 12 months…
TWD 6-Month Daily Chart
Tweed enjoyed its highest volume day yesterday since it began trading in the spring of 2014 and quickly soared to $5 a share…it has strong base support around $1.75, as shown in this 6-month daily chart, but the declining 200-day moving average (SMA) – currently $2.12 – has provided resistance throughout 2015…
TWD is off 2 pennies at $2.03 as of 8:45 am Pacific…
Vancouver Becomes First Canadian City To Regulate Illegal Marijuana Dispensaries
Vancouver has become the first city in Canada to regulate illegal marijuana dispensaries, a move that has “deeply disappointed” the federal government but was declared a common-sense approach by the mayor…medicinal pot shops in Vancouver have grown from 6 to 94 in the past 2 years…
“We’re faced with a tough situation, a complicated situation,” Gregor Robertson said Wednesday after councilors voted 8-3 to impose new regulations. “We have this proliferation of dispensaries that must be dealt with.”
The city has blamed Ottawa’s restrictive medical marijuana laws for the rise of pot dispensaries…
Health Minister Rona Ambrose had sent strongly worded letters to the city and police warning against the plan…yesterday, she said she was disappointed with the decision to regulate an illegal industry…
“Marijuana is neither an approved drug nor medicine in Canada and Health Canada does not endorse its use,” Ambrose said in a statement.
“Storefronts selling marijuana are illegal and under this Conservative government will remain illegal. We expect the police to enforce the law.”
Cannabix Technologies Inc. (BLO, CSE) Update
The company that stands to benefit enormously from the growing social acceptance of marijuana is Cannabix Technologies (BLO, CSE) which has been extremely volatile since debuting on the CSE early last summer…development of BLO’s groundbreaking technology – a marijuana breathalyzer – is proceeding methodically (though never quickly enough for investors) with an alpha protoype recently unveiled…the company continues to work toward a beta version acceptable for 3rd party testing to assess the operability and measurement precision of the device for use by law enforcement…
BLO raced from a low of a nickel late last year to a high of 77 cents in February…it has since plunged back to strong support in the mid-teens with a possible bullish engulfing reversal pattern after yesterday’s intra-day low of 13 cents followed by a strong close at 17 cents…
Equitas Resources Corp. (EQT, TSX-V) Update
A junior explorer with a good chance of success over the summer is Equitas Resources (EQT, TSX-V)…in mid-May, Equitas released encouraging results from a VTEM plus airborne survey completed on its Garland Property, 30 km southeast of the Voisey’s Bay mine in Labrador…9 areas of conductivity prospective for Nickel-Copper sulphides have been identified with most responses at the very limit of, or significantly deeper than, detection limits of historic surveys…this is certainly a speculative play to watch closely over the next several months…exploration on the target areas is expected to commence shortly…evaluation of the anomalies will include mapping and prospecting, 30 line km of large-loop EM surveys, and up to 4,000 m of diamond drilling…
Since the discovery of the Voisey’s Bay deposit in the early 1990’s, small parcels of Garland have been owned by 9 separate companies…this is the first time that this large property has been consolidated under 1 owner…
Yesterday, EQT announced the appointment of Raymond Goldie to its board of directors…Goldie is currently a vice-president and senior mining analyst with Salman Partners Inc…
EQT has been in a gradual uptrend since its restructuring late last year as you can see on this 2+ year weekly chart…the uptrend line and the rising 200-day SMA at 7 cents are providing strong support…
EQT is unchanged at 9.5 cents as of 8:45 am Pacific…
NexGen Energy Ltd. (NXE, TSX-V) Update
Discovery plays will generate investor interest over the summer, no matter how the overall market performs…and a great quarter could be shaping up for NexGen Energy (NXE, TSX-V) which has demonstrated the world class potential of the high-grade Arrow Zone at its Rook 1 Uranium Project in the Athabasca Basin…5 drill rigs will keep results pouring in…
Technically, key resistance is around 82 cents following the powerful breakout from the low 50‘s…this 2+ year weekly chart shows a very bullish trend…momentum could easily create extended overbought RSI(14) conditions throughout the summer…
NXE is up 2 pennies at 78 cents as of 8:45 am Pacific…
Note: John and Jon do not hold share positions in OR, UGD, EQT or NXE.
GGI selling seems to be over.starting to hit ask YA
Comment by brian — June 25, 2015 @ 8:56 am
Hopefully today.
Comment by Tombc — June 25, 2015 @ 10:51 am
GGI.v appears to be iced on the offer at 0.07 so anyone wanting size…here’s ure opportunity I believe…cheers…z
Comment by zippy — June 25, 2015 @ 11:33 am
oops selling resuming…lol…nevermind
Comment by zippy — June 25, 2015 @ 11:35 am
GGI not done yet. 2-3M shares to go. Could dip down to .05?
Comment by BigRig — June 25, 2015 @ 11:38 am
GGI – well Jon, looks like your friend with the 400k got hit today at .06 late. It wiped out that 700k+ bid at .06 thats for sure. Who the heck is BRANT, they started selling off late. I have never seen this house before.
Comment by dave — June 25, 2015 @ 11:42 am
Yes, nice fill at .06, Dave. Brant could certainly be related to Sprott (we’ll likely know tonight when we see the TMX daily report).
Here are the #’s: Sprott’s total holdings of GGI were 10,496,500 shares coming into this year, and these holdings were in more than 1 fund. As of May 29, we know the position was reduced to 6,887,900. Given the TMX reports and the ANON volume since then, they’ve likely cleared out at least another 5 million shares, so what’s left is under 2 million. It will all be gone by month-end. This is the time when being greedy in the market works. Feed us more tomorrow, Sprott.
Comment by Jon - BMR — June 25, 2015 @ 1:26 pm
I grabbed another 5 k. I’m done, clean er up boys!!!!
Comment by Tombc — June 25, 2015 @ 1:52 pm
Absolutely Jon. Feed us more is right. I may have been a little irritated the other day but now feel the end is near as well regarding the FT shares. Let’s just say for every penny increase from this point on my paper money will represent an increase over $1000. Release the hounds Mr. Regoci I am feeling good about the chances of a nice payoff this summer/fall. 🙂
Comment by Dan — June 25, 2015 @ 1:53 pm
I picked up more GGI today as well. Jon, where can you find the report on Sprott’s holdings? Is it published at month end somewhere?
I can’t find it on SEDI unless I am looking in the wrong spot. Thanks
Comment by Danny — June 25, 2015 @ 2:39 pm
Hi Danny, check Sedar…Garibaldi Resources (alternative monthly report).
Comment by Jon - BMR — June 25, 2015 @ 2:41 pm
Jon when the interview with Razique ?
Comment by Guy Delisle — June 25, 2015 @ 2:58 pm
We expect to post the first clip sometime over the weekend, Guy.
Comment by Jon - BMR — June 25, 2015 @ 3:35 pm
Brant today on GGI was indeed Sprott. Insider report shows 1.1 million sold thru the Venture today. Very little left now, unfortunately.
Comment by Jon - BMR — June 25, 2015 @ 4:20 pm
Thanks Jon, I found it on Sedar, after today I expect there won’t be a whole lot left.
Comment by Danny — June 25, 2015 @ 7:51 pm
Maybe Sprott are aiming to sell off all their holdings by quarter end.
Did Regoci give any indication as to how many holes have been drilled at Rodadero and La Patilla? Are you in a position to give any specifics away Jon, or are your lips sealed due to Steve not wanting anything to slip out before his press releases?
Comment by Tom UK — June 26, 2015 @ 1:29 am
Tom, those decisions to diversify the Sprott holdings (and liquidate out of nearly 100 companies) were made late last year, with the goal it appears to complete as much of this as possible by the middle of the year (June 30). So I don’t doubt they’ll be completely out of GGI after today, Monday or Tuesday at the latest, given the volumes we’ve seen the last couple weeks. With regard to Mexico, all Regoci would say is that they look fwd to providing an update shortly. It clearly makes sense for them to wait until this Sprott stuff is looked after, so given that next Wednesday and Friday are Canadian and U.S. holidays, probably the week after I hope is when GGI gets back into the hard news flow that Regoci had talked about earlier. I’m convinced we’ll see a “slingshot” effect here, perhaps similar to what we saw with BLO and even with DBV in 2013/early 2014, given the prospects in Mexico and what’s unfolding in the Sheslay district.
Comment by Jon - BMR — June 26, 2015 @ 4:50 am
Jon
Thanks for the updates ,I hope you are right as I have never looked so forward to eating my words!
Comment by Greg — June 26, 2015 @ 5:34 am
7 BID WOW ON GGI! LOOKS LIGHT ON THE OFFERS TOO!
Comment by STEVEN1 — June 26, 2015 @ 5:37 am
It’s possible, Steven, that the dump at the end of the day yesterday (month-end settlement) may have been the final flushing out, but we’ll see. If not, this is certainly not going to go beyond month-end.
Comment by Jon - BMR — June 26, 2015 @ 5:40 am
A stock for the watch list is west African res. WAF.V Could be a good one. Looking forward to GGi update in next couple of weeks’ am more heavily weighted in GGI than DBV. Exciting times ahead for sheslay. Lets hope for the best. Richard l
Comment by richard l — June 26, 2015 @ 8:03 am