Gold has traded between $1,081 and $1,096 so far today…as of 9:45 am Pacific, bullion is down $7 an ounce at $1,089…Silver is off 6 cents at $14.75…Copper is down 3 pennies at $2.37…Crude Oil is flat at $48.81 while the U.S. Dollar Index has surged half a point to 97.71…
A pickup in monsoon rains, along with the recent drop in Gold prices, is expected to drive buying of the yellow metal in India over the next few months…demand for Gold jewellery, coins and bars is expected to increase to 900–1,000 tonnes in 2015 from last year’s 842.7 tonnes, according to the World Gold Council…
The monsoon brings two-thirds of India’s annual rains and influences production in the country’s mostly rain-fed farms…in years when the rains are good, agriculture output and therefore farmers’ surplus income increase…this year, the monsoon season started weak but has picked up considerable strength…
Rains across the country are a positive sign for Gold retailers who are now expecting robust demand from the farming sector…at least 60% of the Gold demand in India originates from the rural market…
GFMS Gold Survey
Demand for Gold fell to its weakest level since 2009 in the 2nd quarter, as Chinese buyers shunned purchases, according to a report this week from London-based metals consultant GFMS…
“Almost all major physical Gold markets suffered in the 2nd quarter,” said GFMS in commentary published with its latest Gold Survey…
Physical Gold demand fell 14% from a year ago, with demand for bars and coins falling 12%, and demand for jewelry declining 9%…the surge in value in China’s stock market during the 1st half of the year led to “substantially lower Gold purchases,” according to the survey…
Another Merger
OceanaGold Corp. (OGC, TSX) and Romarco Minerals Inc. (R, TSX) say they have reached an agreement to merge in an all-stock transaction that will result in the lowest-cost Gold producer in the world, estimated to churn out approximately 540,000 ounces of Gold annually by 2017 at an all-in sustaining cost of less than $600 U.S. per ounce…OceanaGold will acquire all shares of Romarco, whose principal asset is the Haile Gold Mine in South Carolina…the high-grade open pit project is currently under construction…
Shell: Oil Price Downturn Could Last For “Several Years”
Shell (RDS.A, NYSE) announced in a news release this morning that it’s planning for an “Oil price downturn that could last for several years”…the company announced plans to slash 6,500 jobs amid a slump in Oil prices that has sent a wave of job cuts rippling through the industry…Shell’s Q2 earnings fell 33% from the same period a year ago…
Greenspan Reappears With New Warning
While markets hone in on the Federal Reserve’s monetary policy hints, former Fed Chairman Alan Greenspan sees a bigger economic irritant – government spending…yesterday, Greenspan decried a rise in entitlement costs, which he contended have pressured the U.S. economy…
“To me the discussion today shouldn’t even be on monetary policy it should be on how do we constrain this extraordinary rise in entitlements,” he said in a CNBC “Closing Bell” interview, calling the trend “extremely dangerous.”
Today’s Equity Markets
Asia
China’s Shanghai Composite slipped in the final hour of trading overnight and closed down 83 points or 2.2% to 3706…citing state media China Securities Journal, Reuters reported that banks were investigating their exposure to the stock market through wealth management products and loans collateralized with stocks…
A major investment firm has knocked down the theory that the collapse in China’s equity markets won’t affect the country’s economy…the plunge in mainland Chinese stocks hurts the country’s strong financial sector and consequently does weigh on economic growth, Credit Suisse said in a note yesterday…
Meanwhile, the slump that hit China’s property market this year could hit the country’s banks according to ratings agency Standard & Poor’s, in the latest warning to the world’s second largest economy…
Europe
European markets finished modestly higher today after an explosion of earnings reports…
North America
After 2 strong sessions, the Dow is off 9 points as of 9:45 am Pacific…in Toronto, the TSX is up 69 points while the Venture has added 3 points to 588…
As expected, the Fed kept interest rates unchanged yesterday in a unanimous decision and gave no hint of liftoff coming at the next meeting September 16-17 (no meeting in August)…policymakers said the economy is expanding moderately and made no mention of recent volatility around Greece or China…
U.S. economic growth accelerated in the 2nd quarter as a pick-up in consumer spending offset the drag from soft business spending on equipment…GDP expanded at a 2.3% annual rate, the Commerce Department reported this morning…Q1 GDP, previously reported to have shrunk at a 0.2% pace, was revised up to show it rising at a 0.6%…
To what extent we can actually fully trust the numbers is another question…the Bureau of Economic Analysis, the federal agency responsible for GDP, confirmed this morning that how the government calculates GDP has been amiss the last 3 years…overall, the government has revised down GDP over the 3 years ending in 2014 by 0.3%…
This means that from 2012 through 2014, growth actually averaged 2.1%, compared with the originally reported 2.4%…the bulk of the downward revision came in 2013, where GDP is now reported to have increased a meager 1.5%, down 0.7% from the prior level…the years 2012 and 2014 barely budged…
Significantly, this morning’s GDP report included a 1.8% quarter-to-quarter gain in the core PCE deflator, the Fed’s preferred inflation gauge…whether that’s just a blip or the start of a promising trend, the Fed will be watching closely as it remains concerned about potential deflationary pressures…
NASDAQ Updated Chart
The NASDAQ continues to grapple with the Fib. 5131 resistance…this has been carrying on now for 4 months, so sooner or later something has to “give” – either an explosion to the upside, or a breakdown…a strong band of support exists between 4600 (Fib) and 4800 (the rising 250-day SMA on this 1-year weekly chart)…
TSX Updated Chart
Tuesday, we posted a long-term monthly TSX chart that does give legitimate reasons for concern about the overall health of this market given several indicators that have turned bearish…this morning, a 6-month daily chart shows how a bounce has developed – whether this bounce will ultimately lead to a change in the bigger picture, however, remains to be seen…
The TSX started to recover yesterday after RSI(14) on this short-term chart hit previous support while a Fib. level at 14000 was also touched…for a major turnaround to really kick in, the TSX is going to have to overcome resistance at its declining 50-day SMA at 14722 which is also about 70 points below the 200-day…
A band of Fib. resistance stretches from 14329 to 14864…if the TSX can successfully push its way through 15000 again, that would probably be a game-changer…the commodity slide will have to end in order for that to occur…
Pure Energy Minerals Ltd. (PE, TSX-V) Update
Pure Energy (PE, TSX-V) continues to gain momentum after the release Tuesday of a maiden resource for the company’s Clayton Valley Lithium Brine Project in Nevada…the Lithium space is more investor friendly at the moment, and extracting and processing Lithium from brine deposits is relatively simple and low cost…the Clayton Valley Project is contiguous and to the southeast of the only producing Lithium mine in the U.S., Albemarle’s Silver Peak Lithium brine mine…
Technically, PE‘s uptrend is accelerating following the breakout above the ascending triangle…note the next Fib. resistance…as always, perform your own due diligence…
PE has climbed a nickel to 36.5 cents as of 9:45 am Pacific…
Equitas Resources Corp. (EQT, TSX-V) Update
Equitas Resources’ (EQT, TSX-V) Garland Project in Labrador…this morning, the company announced the start of a ground exploration program that will include mapping and prospecting, a large loop (approx. 30 line km) EM survey, followed by 4000 m of diamond drilling once final targets have been defined…
As we’ve stated previously, while there are never any guarantees with a project like this, it’s nonetheless highly interesting and should generate considerable speculative interest, especially when drilling actually starts…major Nickel camps such as Sudbury, Thompson, Norilsk and Raglan comprise clusters of deposits…to date, Voisey’s Bay stands alone…the question is, where is the rest of the system?…or is there a “rest of the system”?…
In a regional context, magnetic signatures and structural interpretations indicate Garland shares the same style and scale of structural deformation documented at Voisey’s Bay…the east-west strike of the anomalies is notable at Garland…the trend of the anomalies, up to 1 km or greater, lend further encouragement for the discovery of significant mineralized systems…
We look forward to further exploring the geological possibilities at Garland in the weeks ahead…
Technically, an overall uptrend in EQT remains firmly intact (particularly impressive given overall market conditions) and there’s every reason to believe the strong support that’s very evident should continue to hold…near-term resistance is 10 cents…
EQT is off a penny at 9 cents as of 9:45 am Pacific…
NexGen Energy Ltd. (NXE, TSX-V) Update
NexGen Energy (NXE, TSX-V) is vigorously drilling its high-grade Arrow Zone Uranium discovery in Saskatchewan’s Athabasca Basin, and the A2 and A3 cores continue to impress with strong, very dense mineralization encountered over wide intervals as reported by the company July 16…the 25,000-m summer drill program is in full swing…
The Arrow zone now covers an area of 550 by 215 m with the vertical extent of mineralization commencing from 100 to 920 m, and it remains open in all directions and at depth (a cool 90-second 3-D video of Arrow generated from Leapfrog is available for viewing on the NexGen’s website).
Technically, NXE has retraced to an uptrend support line just slightly above its rising 100-day SMA…given the extent of drilling this summer, and the quality of the project, it’s hard to imagine NXE not generating much more exploration excitement leading into the fall…
NXE is up 2 pennies at 67 cents as of 9:45 am Pacific…
Note: John holds a share position in EQT.
Well dont say I never told you so but check out DVI Diamonds. a womans best friend.
Comment by Mickey Mac — July 30, 2015 @ 8:58 am
Any idea when WRR could be drilling?
Comment by STEVEN1 — July 30, 2015 @ 9:03 am
Highbank Resources (HBK.V) check the last two news releases. Solid fundamentals and very bullish technicals. HBK lifting off as we speak.
Comment by Jack — July 30, 2015 @ 9:09 am
Jon, when will you be releasing the bombshell news?
Comment by Dan — July 30, 2015 @ 12:09 pm
DVI – ??????????
HBK – nice day
EQT – look forward to the drills turning in about 3 weeks. A discovery with this one ends the free fall of the Venture.
Comment by dave — July 30, 2015 @ 12:34 pm
I agree Dave. A discovery 30km south of Voisey’s Bay will turn the venture around. And the likelyhood that happens is pretty darn good given the nine identified targets below the limits of previous geophysics. Some up to 1km in length is even more encouraging that we have buried intrusive Voisey analogues. Then add one of the best geological teams on top of that with Makela and King. All it takes are visuals as they can tell from the nickel tenor approximate grades. Two examples of that were the visuals of Noront’s find and North American Nickel’s. Exciting times for sure.
Comment by Dan — July 30, 2015 @ 3:28 pm
We expect to be posting important new material on Saturday or Sunday, Dan.
Comment by Jon - BMR — July 30, 2015 @ 4:43 pm
Thanks Jon. Hopefully the material will be important enough to get the drills turning again.
Comment by Dan — July 30, 2015 @ 4:46 pm
Attention all. Blog on stockhouse by flyonthrwall just might br very important. Richard l
Comment by richard l — July 30, 2015 @ 6:10 pm
Dan – I agree with your earlier post. Anyone who does enough DD on this one should know .09 is cheap even at this time before drilling given it just touched the bottom of .065.
EQT – Allowing for any kind of short delay which is normal I expect drilling to start around end of August, but many are saying 3rd week, we shall see. I will buy more if any weakness occurs between now and then. Cheers
Comment by dave — July 30, 2015 @ 6:14 pm
Hi Jon, I don’t drink so I can’t say that I am drunk here. Can you look at the NR on GGI. They are granting options at .10 and it says that its at a price that has not been lower than a closing price. GGI closed at .05???????. What am I missing here.
Comment by dave — July 30, 2015 @ 6:27 pm
Hot off the press from Casey Research: Living Legend Jeremy Grantham who is a senior Chief analyst with GMO who manages 118 billion says:
The bottom is near if not here already. We shall see.
Comment by dave — July 30, 2015 @ 6:30 pm
Richard,
Nice text about Tahltans on stockhouse, but it doesn’t seems related to Sheslay. In fact, It has nothing to do in DVB’s. Bullboard.
Comment by Abicabic — July 30, 2015 @ 6:57 pm
Richard,
I agree with Abicabic. The post on SH has nothing to do at all with the Sheslay area.
Comment by Andrew — July 30, 2015 @ 7:41 pm
Had a look at it, Andrew, though I try to avoid that board…if you’re referring to the aboriginal title article, I believe that was actually written by Anita McPhee about a year ago, shortly after that Supreme Court decision, had nothing to do at the time with regard to the Sheslay…unfortunately for the Tahltan, they can assert Aboriginal title all they want right now over the Sheslay district – they’ll never get it, not in our lifetimes, given the overlap claim…Taku are in stage 4 of the treaty process…they have a comprehensive federal claim here, the process of the Tahltan fighting this would take forever and only make the lawyers rich…the Taku also have the district packaged up in the historic land use agreement…this actually makes the Hat even more valuable….chad day is claiming title to a house he doesn’t own…
Comment by Jon - BMR — July 30, 2015 @ 8:09 pm
Just young and dumb, hey Jon. his political career won’t last long either pulling stupid stunts like this. Good!!!
Comment by Tombc — July 30, 2015 @ 8:44 pm
Hi Dave, not sure what you are confused about. The price they are granting options at is not lower than the recent closing price as they say in the news release.
“Garibaldi Resources Corp. has granted to directors, officers and employees of the company incentive stock options on up to 2.95 million shares of the company’s capital stock, exercisable for up to five years, at a price of 10 cents per share, which price is not lower than the last closing price of the company’s shares prior to this announcement, less the applicable discount.”
Comment by Danny — July 30, 2015 @ 9:29 pm
Have to check into this, but I don’t believe GGI has ever granted options below 20 cents. They’re loading up on cheap options. Probably a good sign.
Comment by Jon - BMR — July 30, 2015 @ 9:46 pm
Danny – Thanks, I misread it.
Comment by dave — July 30, 2015 @ 10:53 pm
You are correct Jon. Before yesterdays’ NR, there were 2,775,000 outstanding options @ .20 and @ .35 cents.
The company is under the 10% allowable amount of the issued and outstanding shares (which is approved by shareholders at the AGM annually). At least the exercise price is almost double yesterday’s closing price of .055.
Comment by Andrew — July 31, 2015 @ 1:20 am
If GGI have issued options, then it is likely that news will be forthcoming soon. I’ve not seen the announcement, where does the quote in post 17 come from?
I wonder if there is anything to be read in to the fact that their own drill has been standing quiet at La Patilla site. Why not return it to work at Rodadero, there are still plenty of targets to be drilled there. Could there be a deal in the making with a major?
Comment by Tom UK — July 31, 2015 @ 2:35 am
Tom. Here is a link to the NR mentioned in post 17.
Comment by Andrew — July 31, 2015 @ 4:23 am
Oops. Here you go Tom.
Read on Stock Watch website “Garibaldi grants options to buy 2.95 million shares”…
Comment by Andrew — July 31, 2015 @ 4:24 am
No problem Dave, as Andrew said at least it’s almost double yesterday’s closing price. Not a bad sign. Hopefully .045 was a bottom.
Comment by Danny — July 31, 2015 @ 4:40 am
I’m going to assume that based on Jon’s post (#15) we will hopefully see some DBV drills turning in the near future….one can hope anyway.
Comment by Steve A. — July 31, 2015 @ 5:57 am
It’s certainly nice to see Gold turning a little, Steve…the reversal came as the employment cost index was released by the Labor Department…dollar tumbled as well…casts more doubt on a Fed rate hike anytime soon…
Comment by Jon - BMR — July 31, 2015 @ 6:15 am
17.Les, the “Tahltan incident”? This is much more than just a “Tahltan incident”. The full story hasn’t even come out yet, and DBV will get back to drilling IMHO, so get ready for the real show to begin.
21.Ask me that question again in about 3 days, Andrew.
For Jon wrote that, he probably prepare some very positive for shareholders DBV
Comment by Guy Delisle — July 31, 2015 @ 6:28 am
We do have something to say this morning, Guy, though the best is certainly yet to come…
Comment by Jon - BMR — July 31, 2015 @ 6:49 am
Good Jon !
Comment by Guy Delisle — July 31, 2015 @ 6:50 am
Good Volume on GGI today….very promising.
Comment by John BMR — July 31, 2015 @ 7:39 am
There seems to be a wall set-up at .055 and National Bank appears to have some shares to sell. I wonder if management knows how many shares they have left to sell? Fortunately, buyers are stepping up to pick them off.
Comment by Andrew — July 31, 2015 @ 9:42 am