Gold has traded between $1,123 and $1,142 so far today…as of 10:15 am Pacific, bullion is up $9 an ounce at $1,135, reclaiming the $1,130 support area we referred to earlier in the week…Silver is a nickel higher at $14.57…Copper is up a penny at $2.34…Crude Oil, after its biggest single-day run in 6 years yesterday, is up another $2.79 a barrel at $45.35 (a resistance level) while the U.S. Dollar Index has climbed a quarter of a point to 96.05…
Gold is finishing the week on a positive note with bargain hunters stepping in after the metal retraced by more than $40 in recent days following last Friday’s $1,160 close…bullion is still on track to post its 1st monthly advance since May despite its biggest weekly drop since late July…traders/investors will be closely monitoring comments on policy normalization from Fed officials attending the Jackson Hole Economic Symposium which wraps up tomorrow…2 top Fed officials who have pressed for interest rate increases said yesterday that a spate of violent swings in financial markets won’t knock the U.S. economy off its feet…
Meanwhile, Fed Vice Chair Stanley Fisher told CNBC this morning that it’s still too early to tell if recent market and international turmoil has made a September rate hike more or less compelling…Fisher delivers a speech on inflation tomorrow at Jackson Hole…
Lots of chatter regarding news yesterday that activist billionaire investor Carl Ichan has taken a big position in Freeport McMoran Inc. (FCX, NYSE), the world’s largest publicly traded Copper company…he disclosed an 8.5% stake in the company (worth roughly $900 million, and enough to make him one of the company’s biggest shareholders) in a filing with the U.S. Securities and Exchange Commission…the filing said he would potentially seek board representation and wants the company to cut spending levels and executive compensation…this was followed by a statement from Freeport that included the sentence, “FCX maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value.”
Check out the excellent piece by Kip Kean this morning at Mineweb.com regarding Ichan’s interesting move and the timing of it…
Today’s Equity Markets
Asia
China’s Shanghai Composite rallied again overnight (the government “rescue team” jumped in again very late in the trading session to produce another 5% gain) but resistance will be strong at the previous critical 3400 support level that collapsed on Monday…the communist government is doing all it can to prop up this market which doesn’t give us a lot of confidence…China’s Vice Minister of Human Resources and Social Security announced today that Chinese pension funds will invest $313 billion in stocks and other assets as soon as possible…
Europe
European markets finished mixed today…the latest reading of the U.K.’s Q2 GDP came in at 0.7% quarter-on-quarter, as expected…a monthly European Commission survey released today showed that businesses and households across the euro zone were more upbeat…as a heavy Oil importer, the region has certainly been benefiting from weak Crude prices…
North America
After 7 consecutive triple digit daily moves, the Dow is more subdued today…it’s off 42 points as of 10:15 am Pacific…in Toronto, the TSX has added 60 points while the Venture has gained another 7 points to 552 as of 10:15 am Pacific…
Volatility Index (VIX) Update
The VIX has settled down considerably (closed yesterday at 25.70) after spiking to a multi-year intra-day high of 53 during Monday’s wild trading session in New York…going forward, the key will be whether the VIX remains above 25 or sinks below that key level – and for how long…
Venture 4-Month Daily Chart
Technically, this is really the best the Venture has looked in quite a while with a move above the EMA(8), declining sell pressure, and RSI(14) finally emerging out of oversold conditions on this 4-month daily chart…
An indication that this market has regained some serious traction will come when the Index pushes above its EMA(20) which has provided stiff resistance since May…
Pure Energy Minerals (PE, TSX-V) Update
Pure Energy (PE, TSX-V) has been pure power this year with the company moving aggressively on the exploration and development sides of its Clayton Valley South Lithium Brine Project in Nevada…since releasing an inferred resource July 28, and some updates since, PE has nearly doubled in price and has pushed above key Fib. resistance at 47 cents today…
John’s latest 2.5-year weekly chart shows increasing RSI(14) up momentum leading into September, so technical and fundamental factors both continue to be in PE’s favor as they have been since the summer of last year…
PE is up 4 cents at 52 cents as of 10:15 am Pacific…
Simba Energy Inc. (SMB, TSX-V)
One of our readers brought this situation up yesterday after Simba Energy (SMB, TSX-V) was halted and then announced it has received formal approval from the government of Kenya for its farm-in agreement with Essel Group, as reported June 8…the market responded enthusiastically to the news after SMB resumed trading very late in yesterday’s session…
Under the terms of the deal, Essel Group Middle East (Dubai) will earn a 60% participating interest in Simba’s African portfolio, including block 2A in Kenya, in exchange for providing Simba a full carry through financing of all required exploration, as governed by each concession’s respective production sharing contract/agreement…as a result of government approval in Kenya, Essel has confirmed its commitment to invest over $100-million (U.S.) in Simba’s portfolio over the next 12 to 18 months, including Kenya…
The 2 companies have commenced the planning and scheduling of the next 2-D seismic work in support of finalizing locations to drill initial exploration wells at block 2A next year…
This 5-year weekly chart from John does a strong overall bullish trend and an important breakout in June above a downsloping flag…Fib. resistance at 9 cents while the rising 50-day moving average (SMA) is currently 7 cents…a lot of shares outstanding (nearly 300 million, which also provides liquidity) but the investment by Essel is key…as always, perform your own due diligence…
SMB traded as high as 10.5 cents this morning and is up half a penny at 8.5 cents as of 10:15 am Pacific…
Biorem Inc. (BRM, TSX-V) Update
There’s nothing like old-fashioned earnings momentum to drive a stock…on the Venture, of course, that’s rarely seen…
Yesterday, Biorem (BRM, TSX-V) reported its Q2 financial results, showing net earnings for the quarter of $718,000 or 5 cents per share (undiluted)…this brings net earnings for the 1st half of the fiscal year (January 1 to June 30) to $1.25 million or 9 cents per share (vs. a net loss of $1.36 million for the 1st 6 months of 2014)…
Biorem’s revenues for Q2 were $4.7 million, a 91% increase over the $2.2 million in revenue recorded during the same period last year and consistent with the $4.7 million recorded in Q1…year-to-date revenue has totaled $9.4 million, a $5 million or 112% jump in revenue over the 1st half of 2014…the revenue increase came from each of the geographic markets in which Biorem operates (the U.S. represents its largest single market)…the value of the company’s order backlog as of June 30 was $14.4 million…management estimates that more than 50% of the order backlog will be converted into revenue by year-end (MD&A)…
We initially introduced to our readers to Biorem a few months ago when it trading around 30 cents…with only 13 million shares currently outstanding, BRM is an environmental biotechnology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds and hazardous air pollutants…
Technically, what we like here is the strong probability of a confirmed breakout above a long-term downtrend line…
BRM is up a nickel at 40 cents as of 10:15 am Pacific…
Lingo Media Corp. (LM, TSX-V) Update
Another Venture company with strong earnings momentum is Lingo Media Corp. (LM, TSX-V), which brands itself as a leader in changing the way the world learns English…Lingo reported very encouraging Q2 results yesterday with net earnings of nearly $1 million or 4 cents per share (vs. net earnings of $225,000 in Q1)…the stock responded on record high volume and really took off this morning…
“This performance is attributable to an increase in revenue from digital learning which increased approximately 776% year over year,” stated Michael Kraft, President & CEO. “In the quarter, digital revenue as a percentage of total revenue was greater than print-based revenue for the first time in our operating history. This is a direct result of our enhanced sales and marketing effort which led to securing new sales contracts in Colombia, Mexico, Peru and other Latin American markets. The EdTech market for English language learning continues to present us with favourable sales growth opportunities in Latin America and globally.
“During the second half of 2015, we expect our revenue growth and profitability to trend in a similar fashion as to the first half of 2015. We look forward to providing our shareholders with updates as we continue to achieve sales and earnings milestones.”
Lingo broke out above a long-term downtrend line earlier this year (same thing is just happening with Biorem) and shot up as high as 60 cents in early trading today, before backing off, and after closing up 6.5 cents at 34.5 cents yesterday…weak buy pressure has replaced sell pressure which has been dominant since late 2011…
Keep in mind that 5 million Lingo shares from a private placement at 10 cents became free trading in mid-August (5 million warrants exercisable at 12.5 cents until April 16, 2016)…
LM is up a nickel at 40.5 cents as of 10:15 am Pacific…
Note: Jon holds a share position in PE.
Another week over and nothing from DBV. Disappointing.
Comment by Steve A. — August 28, 2015 @ 12:31 pm
Steve A. I have to agree. I appears DBV will do nothing untili some kind of agreement is reached with the BC government and the Tahltan and that may take months. It would be good if DBV would make a statement as to where they stand with the present situation and their options . We are all just guessing as to what’s going on. GGI starting drilling would really shake things up.
Tick tock indeed .
Comment by Les — August 28, 2015 @ 12:46 pm
I agree DBV is not able to put a news! What is the role of DBV in the discussions? is this really just between the government and the Tahltan ? Why GGI announce drilling and DBV is not able to put a news ??I’m getting tired of being taken hostage by the Tahltan and DBV!??
Comment by Guy Delisle — August 28, 2015 @ 1:23 pm
If Regoci has the balls to drop a drill rig at the Grizzly which is close to the spot where the Big chief and the granny’s had their pow wow , watch the spark’s fly ! Personally I don’t think he has the balls , he’ll continue sit on his hands like he has for months .
Comment by Les — August 28, 2015 @ 1:52 pm
Ted – My post #25 on yesterday’s musing may help you along. As for the expertise you say, I can only answer to years of experience. Today’s trading on EQT a prime example.
Comment by dave — August 28, 2015 @ 1:54 pm
Dave Dave, the EQT cheerleader…. why does he keep harping on EQT??? crap … had to buy some!! 🙂 Did some small DD and at 11 it could be a steal… If it goes to 5 then Dave will be tracked down and forced to buy beer!!
Comment by Jeremy — August 28, 2015 @ 1:55 pm
Good question Guy . What is DBV’s roll in all of this if the Hat is not in Tahltan territory.
Comment by Les — August 28, 2015 @ 1:58 pm
Jeremy EQT $5.00 I`LL BUY KEGS OF BEER
Comment by brian — August 28, 2015 @ 2:05 pm
Brian – I meant .05:)
Comment by Jeremy — August 28, 2015 @ 2:20 pm
Lol Brian
I’ll pitch in too
And I don’t even drink beer!
Comment by Greg — August 28, 2015 @ 2:24 pm
Dave. Care to elaborate on Goose Bay lit up today? Thanks.
Comment by Dan — August 28, 2015 @ 2:26 pm
Guy, GGI have not announced drilling. They are finalising targets for drilling but have not yet said when they will start drilling.
Comment by Tom UK — August 28, 2015 @ 2:43 pm
Greg if it hit 5.00 you would start
Comment by BRIAN — August 28, 2015 @ 3:41 pm
I know that Tom but we know by GGI that we have productive discussion from DBV nothing !
Indeed this will be a busy and exciting summer at the Grizzly as productive discussions with all stakeholders concerning this emerging world class district are giving us great encouragement. Steve Rigoci
Comment by Guy Delisle — August 28, 2015 @ 4:50 pm
Is there anyone who knows what is the role of DBV in discussions between Tahltan and BC government? They are at the discussion table?
Comment by Guy Delisle — August 28, 2015 @ 5:23 pm
Think I mentioned CRS last week here @ .09. Had a good day trading 850k vol and was facing .11. Over due on their drilling update. Could be early next week. Insiders are in this big @.15.
CMB @.03 last week. Now facing .04
GGI I’m betting on we see .10 sometime next week
DBV will be just fine IMO.
EQT feels like showtime next week. Going to be an exciting few months.
HMK.c huge bids stacking and UMB.c looking like .04 will be supported.
For all u twitter folks
@BigRig_Trader
Have a great weekend.
Comment by BigRig — August 28, 2015 @ 5:24 pm
Wow, gotta love the humor on this board. If EQT goes to .05, I will buy the beer. If it goes to $5.00 I will buy the beer and pizza.
Hi Jeremy, welcome aboard the EQT train. All joking aside I think you are going to be very happy, and I like your humor.
Dan, Maybe dem guys tripped over a couple rocks of nickel, Maybe!
Comment by dave — August 28, 2015 @ 5:46 pm
Dave – consider your feet at the fire… and the beer would not be coors light… but expensive Muskoka beer!!!:) with tequila shooters:)
Comment by Jeremy — August 28, 2015 @ 5:59 pm
What is Muskoka beer????
Comment by dave — August 28, 2015 @ 7:01 pm
Wow.. message order is of note here.. DAVE.. regardless of performance.. you are buying something!!! how about a bunch of NOT shares:) LOL too much wine stalls my opinion !! my win:) or sorta!! peace love and more peace for all … my aunt dies 2 days ago… 74… I know that some of you are close.. remember bert at 78 ..
we are not immune… remember the good stuff… and transfer it to our kids… BTW I am 34:) LOFL!!!!!! ok I am 62:) not many weekends left!!! remember the real things!!! it all that matters!!
me
Comment by Jeremy — August 28, 2015 @ 7:20 pm
Sorry to hear about your Aunt.
Comment by dave — August 28, 2015 @ 8:37 pm
In the most recent grizzly map, note where the northest arrow is, my gess is this is exact where the first drill hole will take place. Then some step out hole trait up to pyrrotite creek.
Comment by Martin — August 28, 2015 @ 8:43 pm
Dan, Maybe dem guys tripped over a couple rocks of nickel, Maybe!
Comment by dave — August 28, 2015 @ 5:46 pm
Is that a rumor Dave, or wishful thinking? lol
Comment by Dan — August 29, 2015 @ 5:09 am
Dan – It can’t be fact without an official NR, so lets call it a rumor. BUT, judging from the excitement and buzz in Goose Bay yesterday and the very unusual trading action in EQT yesterday (has anyone in EQT noticed or do I need to put it out here) I would say its a strong rumor.
Comment by dave — August 29, 2015 @ 6:39 am
Fair enough Dave. I am so pumped I picked up more on Friday. This could end up being one for the history books.
Comment by Dan — August 29, 2015 @ 7:24 am
Hey Dave .. thx for the condolences.. she was a hoot… and Muskoka Cream Ale..:) its a craft brewery in the muskoka region of ontario!!:) very good suds!!
Comment by Jeremy — August 29, 2015 @ 7:46 am
VENTURE UP 10 PTS YESTERDAY!
Comment by STEVEN1 — August 29, 2015 @ 8:29 am
Not only that, Steven, but the reversal from the all-time low Monday morning was dramatic. For the week, the Venture actually outperformed the Dow, the TSX and Gold. We’ll have an interesting review and a look ahead later today.
Comment by Jon - BMR — August 29, 2015 @ 8:31 am
CDNX had down side capitulation readings with a hammer reversal candle Monday. Look forward to your article , Jon.
Comment by Les — August 29, 2015 @ 11:51 am
You’re bang-on with those readings, Les. This could get quite interesting.
Comment by Jon - BMR — August 29, 2015 @ 12:01 pm
Jeremy – Thanks for the beer description. EQT hits and I’m up there to celebrate.
Dan – This could be one for the history books, Hmmmmmmm, interesting comment Dan, so its the weekend and lets have some fun.
Some feel that EQT is the real voisey bay. The current voisey bay is just an off shoot or the baby deposit. If this turns out to be true and DFI went to $177, where does EQT wind up. I have heard the comment “this is not 1995”. No, its not but everything is the same as was then. Gold and all metals were beaten down then and the only thing that was hot back then were the diamond stocks and that stemmed from Dia-met. If you recall when the DOT.COM boom took place, you could barely give gold away. Nickel was at $2 back then. Only the drill bit discovery and the market at this time will know. Other than the best nickel geo’s in the world, there are other factors one should look at here. The thompson nickel belt drill targets were based on 1,000 siemens. EQT target drill hole B has 10,000. Voisey bay discovery extends east toward Garland with the exact same signatures and with a 20% dip. Target B dips to 20%. They finished target A on Wednesday, which means they were on Target B on Friday, hmmmm, this can get real interesting. This is very tight lipped and I am not able to find out any information so we just have to wait and see.
But I can tell ya that the stock closed very negative on Thursday and according to TA it should have finally seen its drop to .105 or .10 before reversing. It opened with a gap down from .115 close on Thursday to .11 open on Friday. I received a phone call just after noon. The stock changed coarse with .12’s coming through like mad. At 2:47, large blocks started coming through including a 500k buy, that $60,000 worth in one whack. Many of the buys went from average to large and the volume exploded in the last hour of trading. The seller was anon who is obviously the MM’s trying to throw closet shares that they have to keep the price down. I understand the flow through is done and they are waiting on something for the smaller amount. If this is true, the MM’s can let the stock run upon the first tranche being complete and announced. I understand Hardy wanted to announce both at the same time. What will Monday or Tuesday bring us. This could get interesting. I know that my target price was .18 to .21 when drilling starts, but all joking aside this stock could get a little parabolic prior to this.
To Jeremy and everyone else who holds paper, I’m putting my poms poms down now and lets hope for a grand slam as EQT carries on.
Comment by dave — August 29, 2015 @ 12:42 pm
Dave, I am curious about that phone call!
Here are 3 of the 9 anomolies
Anomaly A (589205E | 6219700N) is modelled as a 200m long, east-west striking, -20o south dipping plate with a dip extent of 50m. Conductance is modelled at 800 Siemens, with a depth to top of 267m below surface. The anomaly possibly extends over 2-3 lines. There is a strong coincident magnetic response. The anomaly area occurs 250m south of a multi-km long East-West lineament interpreted to be part of the Gardar-Voisey’s Bay fault system, a major structural control on emplacement at Voisey’s Bay.
Anomaly B (586480E | 6219035N) is modelled as a 400m long, east-west striking, -10o south dipping plate with a dip extent of 20m. Conductance is modelled at 10,000 Siemens, with a depth to top 178m below surface. There is an adjacent moderate to strong magnetic feature. The anomaly is observable over 2-3 lines. The east-west strike is notable as being parallel to the Gardar-Voisey’s Bay fault trend.
Anomaly C (576570E | 6218255N) is interpreted as a 200m long, east-west striking, flat-lying plate with a dip extent of 60m. Conductance is modelled at 400 Siemens. Depth to top is interpreted at 162m. This is a well-defined single line response, in a magnetically quiet area at the interpreted suture between the Archean Nain and Proterozoic Churchill cratons, remarkably similar to the location of the Discovery Hill mineralization at Voisey’s Bay.
Comment by Dan — August 29, 2015 @ 2:54 pm
Dan, I am curious about that call too but obviously dave can’t share everything and I don’t expect him to. There is a lot of excitement on the boards regarding EQT but everyone must know that it’s still a speculative situation. I own a position but ready to take some profits along the way. There are certainly some on the board with more knowledge of EQT than myself but I have been around long enough to know that until you drill you don’t know for sure. I will have taken some money off the table before drill results are announced hoping that speculation will drive up the price before then. We will see, I think next week will give us a real good indication of where we are headed.
Comment by Danny — August 29, 2015 @ 3:53 pm
Dan – I have friends in every province. Cheers.
Maybe the B is the key. I love things that rhyme.
Comment by dave — August 29, 2015 @ 4:41 pm
Voisey Bay – timelines and stock prices
“The Big Score”.
Nov 17 1994 – stock price jumps from $4.65 to $8.00 overnight. Assays from discovery drill hole #2 were announced at 2.23% nickel, 1.47% copper and .123% cobalt over 33 meters.
– one month later stock price went from $9.50 to $13.50 no newfindings since hole #2.
Jan 16 1995 – hole # 6 still no signs of massive sulfides. The “Freidland factor” pushes the stock back to $11.00.
Jan 18 1995 – historic hole #7 was presented to Diamond Fields ……104m of nearly 4% nickel.
Feb 6 1995 – press release on holes #7 + 8 (#8 was 111m) the average for both #7+8 was 3.7% nickel. The stock price went to $20.
Further drilling tests were showing the ore body to be shaped like and egg shaped deep bowl, and ovoid.
March 1995 – Continued drilling of the ovoid brought in more nickel increasing the estimated size with each passing week. Stock price was $24.00 by the end of March.
April 14 1995 – Tech bought 10% of DF at $36.00 a share or $108 million sight unseen. Not one person at Tech had seen the cores at Voisey Bay. More assays are released. The stock prices rises past $40.00.
May 1 1995 – The stock price is $50.00 a share.
May 9 1995 – INCO’s geologist estimates the ovoid’s ore reserve at 25 million tons, with a 10% chance its bigger. Takeover speculation moves stock price up to $56.00
June 8 1995 – stock price continues to $80.00 a share
Aug 3 1995 – Hole # 166 pulls up 1 meter of massive sulfides, the first showing in months of drilling outside the ovoid.
Sept 21 1995 – Stock is almost at $100 and DF did a 4-1 forward split with the new shares valued at $24.00 each.
Nov 17 1995 – Hole # 202 tapped into 40m of massive sulfides, the largest section of sulfides found outside the ovoid. Early December assays for Hole # 202 showed 3.36% nickel.
Dec 12 1995 – Stock price is at $26.00 and remains range bound for months.
Feb 1996 – Drill tests indicate the ovoid has reserves of 30 million tons and there was potentially twice as much in the second ore body.
April 3 1996 – The final 4.3 billion-dollar buy out draft is signed.
Note
Based on the information in the book I estimated that Diamond Fields had approximately 100 million shares and the buy-out realized a share price of $43.00 per share or $172.00 pre-split.
Hopefully this triggers some productive discussions.
Comment by seamus — August 29, 2015 @ 4:47 pm
Great post Seamus
So if you have 100,000 shares of Equitas and it does 1/17 of what Diamond Fields did, your a millionare
Comment by dave — August 29, 2015 @ 6:36 pm
Danny, I don’t expect Dave to release details either regarding his phone call, but it sure is interesting. Large blocks on the bid on Friday, and volume exploding makes for a very intriguing situation. Someone also posted that Kyler is on a flight east. Why I wonder? Either they stumbled upon nickel laden rocks, or the UTEM shone so bright it made their Geos jaw drop in awe. One thing is certain, the VTEM pin pointed the areas of conductivity that wasn’t detected before. You have 250 sq/km of ground that would make it very difficult to find nickel rocks on the surface. But, when you pin point with a VTEM, it narrows down that search area and makes the possibility of finding something on the surface that much greater.
Dave, I like your comment about owning 100,000 shares of EQT and if it turns out to be even 1/17th of VB. I will be ok as well….LOL
Comment by Dan — August 30, 2015 @ 4:16 am
I agree Dan, the large volume increase Friday afternoon got my attention.
Comment by Danny — August 30, 2015 @ 7:52 am