Gold has traded between $1,079 and $1,103 so far today as it finishes the month on its longest losing streak in 16 years…however, a moderate reversal this morning is encouraging…as of 8:45 am Pacific, bullion is up $6 an ounce at $1,094…Silver has added a dime to $14.82…Copper is unchanged at $2.37…Crude Oil has slipped 76 cents to $47.76 while the U.S. Dollar Index has tumbled two-thirds of a point to 96.81…Gold reversed and the dollar went into immediate retreat following the release of some key data this morning, the U.S. employment cost index…
Gold is in danger of posting its 6th straight weekly loss (if it closes below $1,098) and its biggest monthly decline in 2 years…technically, key support has held at the bottom of a downsloping channel on John’s regular 2.5-year weekly chart…major rallies have developed over the last 2 years from the bottom of that channel…any breach of that support, or the next important level in the mid-$1,060’s, would likely produce a very quick test of the $1,000 mark…we’ll have an updated Gold chart tomorrow as part of our regular Week In Review…
Oil prices are under pressure again today as concern over global oversupply intensified after comments from OPEC’s secretary general yesterday, suggesting there would be no OPEC cuts in production…the fall mirrored a general sell-off in commodities on persistent worries about demand in China, the world’s biggest user of energy and many key materials such as Copper…China’s state planner said today that a slowing economy must not be allowed to morph into social risks as the volatile Chinese stock market fell again…
“You Will Hear The Roar of The Printing Presses From Mars”
Central banks in the Western world have set the scene for an “even bigger version” of the 2007-2008 global financial crisis, according to Societe Generale’s bearish strategist Albert Edwards…in a research note yesterday, Edwards said that China’s intervention to stabilize its volatile stock market was part of a larger global story, in which “rock bottom” interest rates and large fiscal deficits in the western world were pushing the global economy towards a fall. “QE will be stepped up to such a pace that you will hear the roar of the printing presses from Mars,” Edwards declared..
Gold Stock Rally In The Works?
Below is an updated and interesting “inverse” look at Gold stocks using the chart for DUST, the highly leveraged (3x) Gold miners’ bear ETF that trades on the NYSE…it nearly quadrupled in value since mid-May but is now up against strong resistance (RSI-14 and the top of a downsloping channel)…a breakout (false?) could occur, BUT…the already overbought conditions in this reverse ETF suggests that a reversal in Gold stocks is likely not far off, if indeed it’s not already underway…
The TSX Gold Index has strong chart support at 115, so that has been a key level to watch…the Gold Index dipped as low as 117 July 24, a whopping 20% decline over just 8 trading sessions…while more downside can’t be ruled out, an ultimate bottom somewhere between 115 and 100 is where this bloodletting will probably end…
Below is the DUST 5-year weekly chart…it does have a tendency to spike (spring 2013, fall 2014, and again now)…
Gold In Canadian Dollars
Gold continues to perform well in currencies other than the U.S. dollar, and the loonie is but 1 good example…in Canadian dollar terms, Gold has been following an uptrend since mid-2013…a move above or below the current symmetrical triangle would be a key technical event…certain Canadian-only producers are actually seeing their balance sheets strengthen…
Today’s Markets
Asia
China’s Shanghai Composite widened losses late in the trading session, ending down 42 points or 1.1% for the day…that brought the monthly decline to a whopping 13.4%…Chinese securities regulator continues to spook investors…Reuters reported that Chinese authorities, investigating the impact of “automated trading” on the market, had restricted 24 stock trading accounts for suspected irregularities…China’s various attempts to clamp down on selling is only making the market problem worse, as well as exposing broader structural ills in the country’s financial system…in the eyes of foreigners, the China brand is taking a serious hit…
Europe
European markets were up modestly today…
North America
The Dow is up 18 points as of 8:45 am Pacific…U.S. wages and benefits grew in the spring at the slowest pace in 27 years, stark evidence that stronger hiring hasn’t boosted pay…the slowdown also reflects a sharp drop-off in bonus and incentive pay…the Labor Department reported this morning that the employment cost index rose just 0.2% in the April-June quarter after a 0.7% in Q1…the index tracks wages, salaries and benefits…wages and salaries alone also rose 0.2%…both measures recorded the smallest quarterly gains since the 2nd quarter of 1982…
In Toronto, the TSX has climbed 107 points while the Venture has gained 2 points to 590…for the month, the Venture is currently off 12%…will there be an August turnaround?…we’ll explore that possibility over the weekend…
Sheslay District Controversy: Fiction & Facts, Continued…
This morning, we once again examine fiction and facts surrounding the Sheslay controversy – this time, another quote from Tahltan Central Council President Chad Day in his July 8 open letter to Energy & Mines Minister Bill Bennett and Doubleview Capital (DBV, TSX-V) President Farshad Shirvani…
“RESPECT”
STATEMENT: “Doubleview has chosen to ignore our request and to carry on with exploration work. This is an infringement of Tahltan title and rights and we will not accept the lack of respect for Tahltan authority or territory.” (Chad Day, July 8)
FACT: Day’s initial letter May 21, posted on the TCC website and sent to Doubleview, Garibaldi Resources (GGI, TSX-V) and Prosper Gold (PGX, TSX-V), “respectfully requested” that the companies halt exploration and drilling…that “request” would later change into a demand, as demonstrated by Day’s arrival by helicopter at the Hat discovery with a group of protesters on the afternoon of Tuesday, July 7, a day before his letter to the Minister and Shirvani…
Day didn’t show up at the Hat for a “neighborly visit”…he came with the explicit intent to shut down a legally permitted drill program, and even CFNR (First Nations Radio) referred to the event as a “blockade” in its story several days later (see screen shot/picture below)…
On the issue of “respect”, Day loses all credibility (apart from showing up as an uninvited guest, along with several other Tahltan, putting strains on the camp)…
It’s not respectful to ignore a genuine “reaching out”…Tahltan sources, clearly somewhat baffled by their own leader’s antics, have informed BMR, on the condition of anonymity, that Shirvani actually sent a “very respectful” letter to Day June 15, 2015, which was ignored by the Tahltan President…ignoring a “respectful” letter is in itself disrespectful, and further underscores our contention that Day has not dealt wisely with this entire matter…
Respect for people of all cultures, including First Nations and the Iranian-born Farshad who may have a valid case for feeling discriminated against in this situation, is a 2-way street…it’s not respectful to pretend that legal agreements (between the Tahltan Nation and the provincial government) and legal permits simply don’t exist, and then publicly and recklessly attack and damage the market value of a company that is merely fulfilling the mandate of its permit and its duty to shareholders…especially in this unique (bizarre) case when the Tahltan Nation, through its business arm (owned by the Tahltan people), had actually carried out an activity (drilling) at the Hat Property for nearly 2 years that the TCC President suddenly 2 months ago decided to strategically oppose for apparent reasons of “leverage”…this is chaotic behavior that’s actually hurtful to the brand and the long-term interests of the Tahltan Nation, not to mention B.C. as a whole…
In addition, Day has shown disrespect to all First Nations by challenging the Taku River Tlingits’ claim to the Sheslay district…we say that with particular emphasis because the 2011 Land Use Agreement signed between the Taku and the provincial government was an historic achievement for First Nations in British Columbia – it was the 1st major land use agreement in the province that had significant First Nations’ involvement…
By making such an aggressive public claim to the Sheslay district, Day is directly challenging the authority and rights of the Taku while ignoring an historic legal agreement, successfully implemented, that allows for exploration and resource development in the area…this puts Day on the wrong side of history…
How long can the provincial government stay silent on this matter, especially when Premier Christy Clark championed the Land Use Agreement as bringing “certainty” to investors?…Day’s behavior has potential major implications for investor confidence in B.C.’s exploration and mining sector, and we believe Minister Bennett and the Premier are experienced and wise enough to appreciate that…
Below is a link to last weekend’s report including a fascinating government video from 2011 featuring Premier Christy Clark championing the historic Atlin Taku Land Use Plan agreement signed between B.C. and the Taku River Tlingit First Nation…
Premier Clark Video – B.C. Exploration-Mining-Sheslay
Richmont Mines (RIC, TSX-V) Update
The average person on the street probably believes Gold stocks are a silly investment right now, especially when they keep hearing in the mainstream media that the metal is “tumbling” (in the context of the U.S. dollar, of course)…Joe Canuck would likely be shocked to hear that Gold is up almost 14% in Canadian dollar terms since the middle of 2013…
That’s why profitable Canadian-only producers are particularly attractive right now – they’re being overlooked by the general population, even including experienced investors…a classic example is Richmont Mines (RIC, TSX) which has a superb balance sheet and set quarterly production and revenue records in Q2…next Thursday (Aug. 6), the company is expected to report its full financial results for Q2…they should be stellar…
Richmont was trading within a downsloping flag for most of this year until just recently when it briefly broke out of that formation to the upside, though that did come on decreasing buy pressure…the recent wipe-out in the Gold sector immediately took Richmont in the other direction, and it traded as low as $3.22 July 22 – a similar situation to the sudden, overdone drop that occurred last fall…
The long-term outlook for Richmont is particularly favorable considering the company’s impressive high-grade resource that’s being prepared to be mined beneath existing workings at its Island Gold mine in northern Ontario…
RIC is up 8 cents at $3.44 as of 8:45 am Pacific…exceptional support around the $3 level which was previous resistance…
Note: John and Jon both hold share positions in DBV and GGI.
Excellent write-up Jon. Now, just when will the BC Government come out in support of the companies and the Taku River Tlingit First Nation?
I hope one day soon that DBV announces that they have completed X number of drill holes since the blockade.
As for Garibaldi. How many drill holes will they do?
Comment by Andrew — July 31, 2015 @ 8:02 am
Andrew, I hope one day soon that DBV announces the re-starting of drilling…obviously we can assume there has been no drilling since the July 7-8 blockade…I’m sure they’re working the political channels, same with GGI…
It’s a very important issue regarding the Land Use Plan, and the Taku…the Taku hold a federal comprehensive claim to the Sheslay district, thru the treaty process (Tahltan are not part of the treaty process)…these 2 First Nations once fought a war in the Sheslay district…is Chad Day trying to start another war?…if I were the Taku, I’d be very concerned about Day’s aggressive stance toward the district, his claim to aboriginal title and rights, and the fact he’s ignorning a Land Use Agreement or in fact challenging it…this is extremely serious stuff on a provincial scale…
Comment by Jon - BMR — July 31, 2015 @ 8:10 am
More holes have now been put in Chad’s ruse to obtain something he is clearly not entitled too . I would think there would be a statement to come from the BC government before Dbv resumes drilling. Good work BMR crew , in digging all this information keeping everyone informed.
Comment by Les — July 31, 2015 @ 8:19 am
Yes it is clearly Chad’s intent to open old wounds to obtain financial gain. He is unscrupulous and has a lot of gall.
Comment by Les — July 31, 2015 @ 8:26 am
Jon do you know something about the government and the situation in sheslay ? after more than 3 weeks the government is very quiet !
Comment by Guy Delisle — July 31, 2015 @ 8:41 am
To change gears for a moment, SKE.V is looking like a potential winner. Richard l
Comment by richard l — July 31, 2015 @ 8:46 am
Ignore Farshad’s respectful letter, ignore the law, ignore historic Land Use Agreement and the rights of the Taku River Tlingits, show up uninvited on another tribe’s territory armed with a gun, tell lie after lie after lie, financially damage innocent shareholders of at least 3 companies, … Great president you have there Tahltans!
Comment by Concerned Citizen — July 31, 2015 @ 8:48 am
Yes, SKE is looking good, Richard…interesting high-grade play, 75 km southeast of the Sheslay district and on trend…the fact they have a porphyry system and a high-grade system at Spectrum demonstrates the great potential of the entire region, including the possibility of a stand-alone high grade gold deposit somewhere over the Grizzly, Hat or elsewhere at Sheslay…the geological power of this whole area is phenomenal…
Comment by Jon - BMR — July 31, 2015 @ 8:49 am
SKE – I mentioned they had a lot of shares outstanding. It still put on a run. Now, imagine the run EQT will put on in a month with only 40 million out. Something to think about. I haven’t been able to watch SKE as I have been gone during the last few days until now. Very impressive run on SKE.
Comment by dave — July 31, 2015 @ 8:50 am
Keep in mind, Dave, a lot of that stock in SKE is tied up, on hold, restricted…there’s an historical high-grade resource with significant upside potential…
Comment by Jon - BMR — July 31, 2015 @ 8:53 am
Yes Jon, but I think SKE might correct a little, we shall see.
Comment by dave — July 31, 2015 @ 9:34 am
i said last week keep an eye on ske,well i dove in and its doubled since,i know lots of shares out,but,the valley made me do it,now hopefully the rest of the valley takes off real soon,keep up the great work bmr.
Comment by tombc — July 31, 2015 @ 9:47 am
I would agree, Dave, there’s certainly a chance of a pullback after this morning’s surge…the question is, are there results imminent? This morning’s move is curious although part of it is certainly technical related…
Comment by Jon - BMR — July 31, 2015 @ 9:48 am
This mornings move is the result of Kaiser mentioning it late yesterday at the conference.
Comment by dave — July 31, 2015 @ 9:49 am
Oh Jon, National bank selling on GGI, is that part of the remainder of all those warrants or what?
Comment by dave — July 31, 2015 @ 9:51 am
It may be related to more than just that, Dave, but as they have been drilling for a while now…
Comment by Jon - BMR — July 31, 2015 @ 9:52 am
National Bank on GGI would be the flow thru, Dave…
Comment by Jon - BMR — July 31, 2015 @ 9:54 am
Ok, thanks on GGI info.
Comment by dave — July 31, 2015 @ 9:55 am
Just doing a little research on SKE and find the Tahltan , BC government and SKE have an exploration agreement. No problem there or at Red Chris to mine , but a big problem at the Hat which is in Taku jurisdiction. I believe the greedy little twit is about to get his fingers slapped and have the riot act read to him not to mention a possible court injunction instructing him to stay off DBV and Taku territory.. Just my thoughts ………
DBV and GGI could be back drilling a lot sooner than expected.
Comment by Les — July 31, 2015 @ 9:59 am
It’s kinda comical to hear all the different speakers at the Sprott – Stansberry conference talk about the metals. Some say copper is dead and will stay there for some time and some say its going to come alive. Everyone has different opinions on different metals. Today, gold and silver is up while everything else is in the red. From what I have noticed over the years, that usually means we may have a bottom soon. Just my opinion.
Comment by dave — July 31, 2015 @ 10:22 am
Jon .. #16 … not sure I understand..???
Comment by Jeremy — July 31, 2015 @ 10:22 am
WATCH EQT next week!!!!!!
Comment by dave — July 31, 2015 @ 10:25 am
John Kaiser (Sprottsberry) very recently picked SKE as his top pick for 2015. (From chat.ceo.ca)
Comment by Andrew — July 31, 2015 @ 10:37 am
SKE – just as I thought, the sell off is on. I will see where it settles next couple days.
Comment by dave — July 31, 2015 @ 10:39 am
SKE – Yes Andrew, I posted that earlier today. It might possibly close that gap though.
Comment by dave — July 31, 2015 @ 10:49 am
Oh, a little birdie flew past my ear. Watch LME, there has been some serious accumulation on this one that started on the last day of June.
Comment by dave — July 31, 2015 @ 10:53 am
I believe DBV will be drilling soon. The kid leader of the Tahltan will get what he deserves soon.
Comment by D4 — July 31, 2015 @ 11:03 am
Dave. Would this be LME = Laurion Mineral Exploration Inc.
If it is someone (BBS mostly) has already dumped 2.3M @ .015. This may be because the 1st tranche from OPEG is over 2 weeks based on the previous news release. Yikes. What a chart.
Comment by Andrew — July 31, 2015 @ 11:28 am
Yes Andrew, LME is Laurion. I have never been high on this one but the birdie flew by so I will watch. BBS dumped and CIBC picked them all up. I don’t know if I will ever buy it unless I see the volume continue.
Comment by dave — July 31, 2015 @ 11:42 am
EQT starting to shift positive in L2 again. Keep a watch on her if interested.
Ok, I’m off to visit with daughter. Jon, you remember when I mentioned a week or so ago that I saw a shift in the non-mining stocks and the mining stocks. Money is starting to come into the mining. IMHO, it is time to start looking at the ones with a chance for high level of success. SKE – EQT come to mind. I also like PGD, URE, NXE, and GGI. I am sure there are a few others I can’t think of right now. Cheers
Comment by dave — July 31, 2015 @ 11:50 am
I did some Quick DD on SKE, I like this one. I have a bid in at the gap just in case. Cheers
Comment by dave — July 31, 2015 @ 11:51 am
Oh, sorry, Jon will probably restrict me from so many postings. Sorry gang.
Has anyone been paying attention in class how many shares Anon has accumulated on EQT. Ok, gone see ya.
Comment by dave — July 31, 2015 @ 11:54 am
thought ske would pullback more,eqt ske, ones to watch next week, while we wait for someone to put that brat back in his crib and stick a moose bone in his mouth to shut him up..imo a court injuction/law suit should be considered.have a ducky long wknd folks….
Comment by tombc — July 31, 2015 @ 12:15 pm
Now what was with the last 3 trades that took DBV to close @ .125? Perhaps there is good NR due out early next week.
Comment by Andrew — July 31, 2015 @ 12:56 pm
I saw that too Andrew…although BMO only hit 15k shares, it was nice to see! Lots of speculation seems to be swirling today about the tide turning for DBV – let’s hope there’s some validity to it. Jon’s comment that (in his opinion) DBV drills will likely be turning soon was enough to get me excited!
Comment by Steve A. — July 31, 2015 @ 1:05 pm
CDNX had a 1% move up today since its 580 bottom I’m thinking its money into the mining sector rather than oils.
Either DBV of BC government will be making a statement this coming week as it appears Chad Day and his followers have no business being at the DBV Hat site in Taku River Tingits territory . IMHO
Comment by Les — July 31, 2015 @ 1:33 pm
Any updates on when Blo beta will be released.
Comment by Matt — July 31, 2015 @ 4:19 pm
It is Friday so it is time for an open letter from Chad Day etc, to remind us all on the dangers that are out in the areas during hunting season. Is it possible that he could be any more transparent? Nice try Chad.
http://tahltan.org/open-letter/
Comment by Andrew — July 31, 2015 @ 6:00 pm
Not sure what to think , Andrew . It appears Chad has other things to do besides intimidation and extortion.
Comment by Les — August 1, 2015 @ 6:49 am
Well, gentlemen, at least he now publicly admits the Tlingits exist and actually do have a traditional territory which also includes of course the Sheslay district. Probably a positive sign that things can move forward on a more intelligent basis in the district now that we all know Chad doesn’t hold “title” to the house. He’s showing a little more respect to his neighbors.
Comment by Jon - BMR — August 1, 2015 @ 6:53 am
Yes Jon , is is a good thing that shows there is continued dialogue among The First Nations and indicates their disputes can be sorted out without holding DBV and GGI hostage. But I still wouldn’t trust Chad as far as I could throw him.
Comment by Les — August 1, 2015 @ 7:17 am
Les, this was a case of a 28-year-old who’s still learning on the job who miscalculated with his approach beginning on the 21st of May, underestimating all the complexities involved. Like any government leader, if he wants to move his people forward in the best way, he needs to win the trust and confidence of not just his own people, but other stakeholders in the Tahltan Nation including investors, companies, the provincial government, and the broad public, not to mention other First Nation groups.
Both the First Nations brand and the B.C. brand can be negatively affected by chaotic actions of a First Nations leader, and vice-versa of course – a provincial government that starts doing outlandish things will quickly lose confidence, and we saw that happen in B.C. before under the NDP. It can have disastrous consequences.
Comment by Jon - BMR — August 1, 2015 @ 7:26 am
I think it’s obvious based on all the research BMR has done that Chad Day has over stepped his authority and made a mistake in judgement to say the least. My concern is that the government will let this drag out over a long period of time since confrontation with native groups is something they don’t want. Jon, are there any signs that the government is going to take action here? I am sure they would prefer to sit back and let DBV and the native parties work things out themselves, that is the easy way out politically.
Comment by Danny — August 1, 2015 @ 8:00 am
Excellent comment (40) Jon. Now onwards to a N.R. from the BC Government or from DBV next week would be very welcome.
Comment by Andrew — August 1, 2015 @ 8:13 am
Jon your bombshell is still for the weekend
Comment by Guy Delisle — August 1, 2015 @ 9:15 am
Matt – re BLO… the last timeline given in the last interview with Raj is that they were ‘hoping’ to have the beta out for testing in 3-6 months… which put out to Dec latest as such.
BUT………………….. we do not know if the alpha version is even working yet.. no news or guidance on that.. the buzzfeed article and the lack of the active ingredient in the test device at the trade show makes one wonder if that was marketing or technical… maybe they thought it might get stolen or something…
so we be in the dark for a bit longer..
Comment by Jeremy — August 1, 2015 @ 10:31 am
http://knba.org/post/knba-news-halibut-donation-four-villages-hurt-walrus-harvest-new-mine-protested
More Chris Day propaganda. …lol.
Comment by d4 — August 1, 2015 @ 12:57 pm
The story from the American reporter is old news, D4, came out several days ago, and wasn’t very well researched either. It amazes me how so many mainstream media types can’t even bother to look at a map or read one properly. Give us a call, Ed, we’ll point u in the right direction.
Comment by Jon - BMR — August 1, 2015 @ 5:16 pm
Ed isn’t a very investigative reporter, that’s pretty much the same article as the 29th. Your lazy ed! Put that in the fluff file, and get a lesson from bmr on the facts…..you need it!!!
Comment by Tombc — August 1, 2015 @ 7:56 pm
Yes, they just republished it again….no new facts or info.
Comment by d4 — August 2, 2015 @ 4:50 am
My hunch, d4, is that the situation has turned in a very significant way over the last week or so given the facts of the Land Use Agreement and how it will be impossible for the govt. to back away from that. This was really an historical document, currently being implemented, and we’ll be exploring it in more detail in the coming days.
Investors need to appreciate that this agreement also adds value to the Hat, Grizzly and Star projects.
One cannot dismiss Tahltan interests in the district, despite the strength of the Taku claim, and it’s very important for the companies and the Tahltan to work cooperatively and constructively together.
The Taku obviously have a huge interest here. Chad has “over-reached” and I’d be shocked if the highest levels of govt. haven’t emphasized that to him. This entire controversy has not been good for the Tahltan brand or the B.C. brand.
There’s no reason IMHO that we won’t see exploration and drilling resume imminently – in other words, the worst-case scenarios are now off the table and the road has cleared for an August resumption. And of course these companies have legal, multi-year permits.
This is an extremely important area for B.C. exploration, which is why it has been caught up in political warfare. This is almost par for the course in B.C. in the process leading up to a new mining area following major discoveries.
Comment by Jon - BMR — August 2, 2015 @ 7:55 am