Gold, which has held important support recently at $1,160, has traded between $1,167 and $1,184 so far today…as of 8:15 am Pacific, bullion has jumped $13 an ounce to $1,180…Silver is up 44 cents at $16.31…Copper has retreated 2 pennies to $2.37…Crude Oil has surged $2.50 a barrel to $45.69 while the U.S. Dollar Index has fallen one-third of a point to 96.62 with a fresh Fed policy announcement due at 11:00 am Pacific today following the central bank’s 2-day meeting…it’s hard to imagine the Fed will want to state anything that could lead to another spike in the greenback…
Commerzbank, in its weekly report, says that Gold has been consolidating in a healthy fashion after reaching the 50% retracement of the drop from its January high to its July low…dips lower are expected to be contained within a range of $1,135 to $1,150 for another leg higher to then take hold, it says…our charts generally confirm this with the yellow metal showing a strong support band from $1,130 to $1,160, and stiff resistance of course beginning at $1,190…
Thomson Reuters has just published its GFMS Gold Survey: Q3 2015 Review and Outlook…this survey, first published nearly 50 years ago, is the world’s most authoritative source of independent supply and demand data for the Gold industry….
Physical Gold demand in Q3 2015 was up by 7% year-on-year, thanks to an increase in net official sector buying and a stellar level of retail purchases of bars and coins; jewellery fabrication, the largest consuming sector, was marginally lower year-on-year, as higher demand in India was offset by a slow recovery in Chinese offtake, although demand in the latter was not as bleak as in the first half; total Gold supply was slightly higher in the 3rd quarter, largely thanks to a 3% increase in global scrap supply, while mine production remained broadly flat compared to a year ago; Gold is set to remain under pressure, the report states, as Fed uncertainty continues to weigh on sentiment; in country markets, India regained its top position as the largest overall consumer of Gold this year through Q3…total consumption amounted to 642 tonnes in the first 9 months, with China trailing by 63 tonnes (recent data suggests China may regain the lead from India in Q4)…
India’s Gold Appetite Strong For First 3 Quarters
The GFMS Gold Survey states that India’s jewellery consumption increased by 5% year-on-year to an estimated 193 tonnes in Q3 2015, the highest quarterly consumption since Q1 2011 and the highest third quarter demand since 2008…retail investment rose 30% year-on-year to 55 tonnes, the highest since Q4 2013…gains in the 3rd quarter were primarily attributed to the fall in the local Gold price to the lowest since August 2011…gross official imports to India in Q3 2015 were 263 tonnes, up 23% year-on-year and also the highest quarterly volume year-to-date…
China Gold Demand Accelerating
According to Comerzbank, China has now imported 582 tonnes of Gold from Hong Kong on a net basis this year, which is just shy of 3% more than in the same period last year. “In other words, imports have now caught up following a subdued start to the year; Gold imports in the first half of the year were nearly 20% down on the previous year.”
Increased Swiss Gold exports to China and Hong Kong and record-high Gold withdrawals on the Shanghai Gold Exchange had already indicated “robust” Chinese Gold imports, Commerzbank says. HSBS added that “brisk demand from China is central to sustaining prices, as after a strong August, Indian demand for imported Gold seems to have cooled.”
Canada To Withdraw But U.S. To Intensify Air Campaign Against ISIS
Reports this morning say the White House is seriously considering deploying a small squadron of Apache attack helicopters to Iraq as part of a package of new assistance programs to counter ISIS…yesterday, Defense Secretary Ash Carter signaled a willingness to deepen the military commitment to the region, though new Canadian Prime Minister Justin Trudeau – in an embarrassment to this country – is insisting on withdrawing Canada’s CF-18’s from the coalition effort against ISIS…rather than kill members of this despicable organization and degrade the ability of ISIS to expand, it seems Trudeau would rather risk importing some terrorists into the country by rushing 25,000 Syrian refugees into Canada by the end of December…
The U.S. Defence Secretary told a Senate Armed Services Committee hearing yesterday, “We expect to intensify our air campaign, including with additional U.S. and coalition aircraft, to target ISIL with a higher and heavier rate of strikes. This will include more strikes against ISIL high-value targets as our intelligence improves, and its Oil enterprise, which is a critical part of ISIL’s financial infrastructure.”
Crude Oil Update
Given the glut in world supplies, the best chance of a jump in Crude Oil prices would be a worsening geopolitical situation in the Middle East which could bring a risk premium back into Oil…
While the decline in the U.S. rig count over the last 8 weeks appears bullish, foreign imports of Oil have surged, offsetting the modest drop in U.S. production…this morning, the Energy Information Administration (EIA) said U.S. commercial Crude inventories rose by 3.4 million barrels to a total of 480 million barrels in the previous week (near levels not seen for this time of the year in at least the last 80 years)…gasoline and distillate inventories fell, however, while Crude stocks at the Cushing delivery hub dropped by 785,000 barrels, the EIA reported…
Technically, WTIC closed below $44 yesterday for the first time since August…on the 6-month daily chart, WTIC has not been able to hold support at the 50% RSI(14) level…base price support at $38 could be tested if Oil doesn’t gain fresh traction quickly, so today’s movement is encouraging…$50, which represents both the 200-day SMA and a Fib. level, was key resistance in the latest rally…
Alberta NDP To Rack Up $50 Billion In Debt
The devastation of Alberta and a brain-drain from that province has certainly started…yesterday, NDP Finance Minister Joe Ceci tabled a “shock absorber” tax, spend and borrow budget (more like a “shocking” budget) for Canada’s top Oil and gas producing province that will see provincial debt skyrocket over the next few years, thanks to continued growth in government day-to-day spending and a Justin-Trudeau style “infrastructure” program in excess of $30 billion…
Next year, the NDP will have used up all the cash left in Alberta’s Contingency Account, so the government will borrow $712 million to cover its day-to-day operations, and a further $3.1 billion the year after that…under the NDP plan, within 3 years the province could owe more than $50 billion and by 2017-2018 the INTEREST on the projected debt will cost taxpayers more than $1 billion per year…by that time, health-care spending of $20.4 billion will eat up nearly 50% cent of all government revenue…not since the early 1990’s has the Alberta government borrowed to keep the storefront open…Ralph Klein must be rolling over in his grave…
It’s estimated by the Canadian Association of Petroleum Producers that 42% of Alberta’s economy is related to the energy sector, but the NDP is doing nothing but threatening that sector with higher royalties despite the industry’s plea for a 3-year lag before the royalty structure is changed…
Ceci indicated that royalty increases are still coming, as are tougher climate change regulations, once reviews now under way are completed over the next couple of months. “Alberta’s royalty system will provide that as prices for our energy resources recover, the people of Alberta will share appropriately in better times. We are going to work to recover our good name among our key energy markets, by doing our part to address climate change.”
The NDP budget also makes questionable assumptions about future Oil prices…for a government that says it doesn’t want to rely as much on Oil revenue as an economic driver, it’s certainly banking heavily on significantly higher prices than currently exist to grow government and fund its infrastructure addiction…the NDP budget assumes an average 2015 Oil price of $50 per barrel U.S., nearly $7 above yesterday’s closing price, $61 in 2016-17, and $68 in 2017-18…even if those dreams become true, the aggressive spending program for both operations and capital works ($38 billion over 5 years) will demand a flood of cash, both from borrowing and higher taxes…so much for the “Alberta Advantage”…free-spending “Progressive” Conservative governments in recent years (after Klein) hurt that advantage – now the NDP is officially burying it…
“Stimulating The Economy By Spending Heavily On Infrastructure”
The effect of the Alberta NDP’s increase in public spending (this also applies at the national level) could even be to slow down the Alberta economy…an influential study by Harvard economist Roberto Alesina and three of his colleagues, published in the American Economic Review, the most prestigious academic economics journal, shows that increased public spending might be even worse for private investment and growth than tax increases…the reason is that public investment crowds out private investment, competing to attract workers and capital…consequently, the private sector has access to fewer resources at a higher price…and with slower economic growth, the standard of living of all strata of society stagnates, with the middle class and the poor generally suffering more than the rich…try to convince a socialist of that, however…
“Welcome to the NDP,” Wildrose leader Brian Jean said yesterday. “Pushing forward risky economic theories, raising record levels of taxes and still running the largest deficit in the province’s history. Tax increases are now hitting every Albertan, the cost of government is higher than it’s ever been, and by the time the NDP are done, Alberta will be buried under billions of dollars in interest payments and every individual will have less money in their pockets.”
In today’s Morning Musings…
1. GoldQuest Mining (GQC, TSX-V) continues to push higher after impressive drill results yesterday (updated chart)…
2. Richmont Mines (RIC, TSX) delivers a robust PEA for the expansion of its Island Gold mine…
3. Potential breakout in Naturally Splendid Enterprises (NSP, TSX-V)…
4. Strong value in Biorem Inc. (BRM, TSX-V) with earnings momentum expected to continue…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
Jon, what was Regoci intention of showing this outcrop, knowing the drill should have been turning (my guess) in the 200 to 300 level. Have you spoke with geologists about in? To me it look like grizzly west outcrop. Up to 17% cu where sample there.
Comment by Martin — October 28, 2015 @ 8:09 am
I guess it’s called corroboration of evidence, Martin. You can tell from the location markers on this outcrop that it’s from the general area where they are drilling, along the western margins of Grizzly Central. I think the point is that even though there is very limited outcrop at Grizzly Central (95% overburden covered), the outcrop that is showing up contains all the right stuff. You add that to the other geological info, the geophysics and the geochem, and the initial indications from the core photos….well, there you have it. They are clearly into a system – the evidence overwhelmingly supports that – with signs of Sheslay red stock as well in core photo 1. Even Farshad would likely confirm that (the Sheslay red stock). These are valuable clues ahead of more news, for sure.
Comment by Jon - BMR — October 28, 2015 @ 8:23 am
Nice, that is very good Jon, plus the fact they may incounter surprising suff at depht. My guess, core photo friday. What a terrible market this week :-(, no rush for news.
If i recall DBV it the red at greater depht.
Comment by Martin — October 28, 2015 @ 8:37 am
red stock
Comment by Martin — October 28, 2015 @ 8:37 am
Sheslay red stock has degrees of intensity, Martin. Can be found at shallower depths and of course deeper.
Comment by Jon - BMR — October 28, 2015 @ 8:39 am
CDNX has found support in this area and is up a tad so far today 1.11%
Comment by Les — October 28, 2015 @ 9:17 am
DBV goes well today !
Comment by Guy Delisle — October 28, 2015 @ 10:08 am
DBV seems to be reviving
Comment by Phil — October 28, 2015 @ 10:08 am
what just happened with gold and the US$?
Comment by tony T — October 28, 2015 @ 10:22 am
USD up / gold down . Same old ,same old.. The action in DBV indicates a resolution is near. Friday is court day.
Comment by Les — October 28, 2015 @ 10:37 am
Big bid of 100,500 @ .12 / DBV
Comment by Les — October 28, 2015 @ 11:38 am
Very nice to see some movement with DBV…bids holding strong and a few different houses picking up the ask…I like it. Let’s hope for good news next week after court, and here’s hoping Mr. Day doesn’t try any antics in court that could delay this any longer. DBV is in good hands, could be an exciting resumption to drilling.
Comment by ChetBaker — October 28, 2015 @ 11:47 am
John- have you heard anything further re: EQT PP,
stock is being punshed for this delay…..
Comment by Bob — October 28, 2015 @ 12:05 pm
Oops- there it is, final tranche $309,500.
Comment by Bob — October 28, 2015 @ 12:08 pm
EQT closes 2nd tranche … only 300k raised in this one but with the 1st tranche and 500k from warrants they have 1.9M more going forward. Hopefully they will follow up with an update from the Garland before the share price gets in the single digits.
Comment by Treb — October 28, 2015 @ 12:14 pm
EQT (finally) closes second tranche:
Read on Stockhouse… Oct 28, 2015… “Equitas Resources Corp. Closes Final Tranche of Private Placement, Raising over $1.9M”
Comment by Terry — October 28, 2015 @ 12:15 pm
Equitas closes $309,500 final tranche of financing
2015-10-28 16:06 ET – News Release
Mr. Kyler Hardy reports
EQUITAS RESOURCES CORP. CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT, RAISING OVER $1.9M
Equitas Resources Corp. Corp. has closed the second and final tranche of the private placement that was announced on Sept. 10, 2015. This closing included gross proceeds raised of $309,500.
The company has issued 2,476,000 units at 12.5 cents per unit. Each unit consists of one common share and one share purchase warrant. Every share purchase warrant entitles the holder to purchase one common share at a price of 25 cents for 12 months after the closing.
Combining both tranches, the company issued a total of 10,887,393 units for combined gross proceeds of $1,360,924. In addition, since Sept. 1, 2015, the company has received over $550,000 through the exercise of share purchase warrants and stock options.
All securities hereunder are subject to a four-month-and-one- day hold from the closing date. Finders’ fees paid in conjunction with this closing were $10,625 cash and the issuance of 64,000 share purchase warrants exercisable for 12 months from closing at 25 cents per share.
The proceeds received from the units will be used by the company for continuing exploration and drilling of the company’s Garland nickel project, corporate development, and general and administrative purposes.
We seek Safe Harbor.
Comment by Bob — October 28, 2015 @ 12:15 pm
EQT- All this delay for $309k….I guess they had problems finding people to participate in it….atleast its finally closed!
Comment by DDD4 — October 28, 2015 @ 12:25 pm
EQT – Update coming shortly according to the email I received.
Comment by Dan1 — October 28, 2015 @ 12:29 pm
garibaldiresources.com/i/maps/Grizzly/Grizzly-Central-Magnetics.pdf
Comment by Martin — October 28, 2015 @ 12:56 pm
More than 300k DDD4. Warrants and options excercised as well for another 500k. Bottom line $1.9 million raised for drilling.
Comment by Dan1 — October 28, 2015 @ 1:00 pm
Dang – thanks for the info. Hopefully now that the PP is closed their choice of wording will instil optimism on a possible early discovery
Comment by DDD4 — October 28, 2015 @ 1:05 pm
Opps….Dang = Dan1
Comment by DDD4 — October 28, 2015 @ 1:06 pm
I like the 2 Km from “heat engine”
Comment by Martin — October 28, 2015 @ 1:28 pm
Martin, have you heard anything from the Walker River Camp?
Comment by Jeff — October 28, 2015 @ 2:54 pm
I called Michel today but had no response
Comment by Guy Delisle — October 28, 2015 @ 3:35 pm
Hi Jon, If I was to guess, prior to all your recent promotion on GGI and hours of time spent on documentation in Morning Musing and Sunday Sizzler Report’s….. I would say the volume of shares would have been much higher then what has transpired of the last three trading days and share price would be slightly higher.
What is the word on the streets and where we are now with GGI? What’s your chart saying?
Comment by vepper — October 28, 2015 @ 3:41 pm
Martin, I noticed that too – The 2km “Heat Engine” Anyone know if the drill hole indicated is to scale? If it is, I estimate hole 1 between 300 and 350 meters in length.
Comment by Dan1 — October 28, 2015 @ 4:21 pm
No Jeff, i have quit the projet with him, last time i have spoke with Michel contractor where suppose to be on site the next day, equipment and everythink where ready to be fired up. That was a mouth and a half ago. Deceide to move on and had to GGI instead. Geological expertise 10/10, busines skill and promotion 4/10.
Comment by Martin — October 28, 2015 @ 4:23 pm
I would consider buying if they do start drilling with a news, graph look better do.
Comment by Martin — October 28, 2015 @ 4:37 pm
The way thing are shaping up at grizzly central west is that they will focus entirely in this area alone on the first round of drilling. First hole, first strike, Let’s built that winter camp then :-).
Comment by Martin — October 28, 2015 @ 4:59 pm
OK all… is the BS meter on EQT getting pegged????? I really have a bad feeling about this… if the real stuff was presented to those who have the dough and they didnt bite then what are we to think????
Over a 50% drop with an anemic PP closure.. they tried to milk the 2nd tranche and failed… I recommend agility with this.. Something doesnt smell right.. dont know bout you guys.. but smelled this before… smells the same I think.. what you think??
Comment by Jeremy — October 28, 2015 @ 5:40 pm
Eqt – I am underwater on this investment. I feel better knowing that the PP is closed and that management owns quite a bit of stock. I hope the they hit massive sulphides.
Comment by 02charoc — October 28, 2015 @ 6:29 pm
I think we have a great end of the week with DBV !
Comment by Guy Delisle — October 28, 2015 @ 7:08 pm
Probably to scale Dan, at about 50 deg, my guess is 400m depend on what they see. Hole 1 is probably over as we speak, the fact that they are still focussing on providing us with detail from this “island” is very possitive. If it wasn’t so good they would have probably indicate the fault interpretation at grizzly central north. We need a started pit to shake these market.
Comment by Martin — October 28, 2015 @ 7:14 pm
EQT- I can say there are signifigant differences in exchange rules for PP’s re Australia vs Canada.
Comment by murf — October 28, 2015 @ 7:44 pm
The pump on eqt was substantial and was bound to retrace significantly without the highly unlikely event that they hit the motherlode right off the bat. It was inevitable. That being said, nothing has changed regarding the completion of phase 2 at the Garland and the potential it yet might hold.
Comment by Treb — October 29, 2015 @ 4:15 am
EQT- the 2nd trache took very long to fill and I think they were scrambling to find money to fill this supposedly “over subscribed” PP. I think smart money saw the warning signs and hesitated. As I said a while ago, things don’t add up and consequently I don’t trust K.H. I don’t like how he was pre-maturely pumping this. If he fails he will look like a traditional VSE “pumper” and nobody will trust him in the market but on the other hand if he is successful he will be a superstar and people will flock to his next plays. Which one will he be? I still hold my shares for one reason……the potential of a discovery since the odds do look good and it’s definitely worth a try. Lets see what words he uses in the update they are supposed to release soon.
Comment by DDD4 — October 29, 2015 @ 4:39 am
Jon, you do realize that Alesina’s study makes no distinction between public spending when the economy is overheating, versus when it’s up against the zero lower bound and the economy is sputtering to get started, and was very heavily criticized for that after it was published right?
There’s a difference between when the economy is strong and resources are scarce, and when the economy is weak and resources are underutilized. Studies that look at government stimulus in the latter situation always contradict Alesina’s findings. In such a weak economy, government spending actually creates demand that wouldn’t otherwise be there, to which then private investment responds by also investing more.
Comment by Tim — October 29, 2015 @ 4:42 am
DDD4 – Who ever said it was “over subscribed”?Also, they raised quite a bit of money in the previous PP and first tranche of 2nd PP. So I dont see it as scrambling.
Comment by 02charoc — October 29, 2015 @ 5:20 am
DBV bids stacking up…..court case on 30 Oct. I’m hearing that the odds are very high that they will get the injunction tomorrow! If so, drilling resumes next week!
Comment by DDD4 — October 29, 2015 @ 5:22 am
EQT- gapping up this morning with the PP closed yesterday after close. I think the bottom was hit yesterday and we move up from here…….if the update uses some key words expect it to quickly move up…
Comment by DDD4 — October 29, 2015 @ 5:24 am
EQT- I think the shorting games may be over now that the PP is closed…..will see how it trades today but so far so good as asks are thin
Comment by DDD4 — October 29, 2015 @ 5:32 am
EQT – should close .14 or .15 today. I’m hearing a very good update is imminent.
Comment by dave — October 29, 2015 @ 5:42 am
EQT .. 15 minutes in, a million shares changing hands and up 40% from yesterday’s close. Nice start to the day. 🙂
Comment by Treb — October 29, 2015 @ 5:45 am
Look at the blocks of trades. This could be the family’s buying. Mr. Shortie so far was only able to cover a little bit at .115. He could be in some trouble.
Comment by dave — October 29, 2015 @ 5:47 am
I have to leave in an hour. Best of luck whatever you decide to do on EQT, sell, buy, or hold.
Comment by dave — October 29, 2015 @ 5:58 am
could see .18 by days end
Comment by McIlroy — October 29, 2015 @ 6:04 am
If Mr Shortie is still hanging, he should have tried to participate in the PP to cover. At least it would have put some money in treasury. He is taking a huge risk by being short on a firm that is drilling with the chance of major upside potential. Looks good on him!! In any event I am looking forward to an EQT update.
Comment by Jamie — October 29, 2015 @ 6:17 am
I don’t think .18 today, but next week maybe it will. I think .14 today. that’s a 40% hike in a day. But then again, if shorty has to cover for month end, then .17 to .18 is possible.
Comment by dave — October 29, 2015 @ 6:25 am
where is concernedcitizen and his posst about stuff not TSX related. miss those!
Comment by david — October 29, 2015 @ 6:45 am
EQT-So the PP closed, but what took it so long to close such a small amount? They promoted this so much it was the “saving’s grace” of the exchange, it was watched/bought by a lot of us, news… abundant . Now it’s gone sleepy,…ohh except for today. Well doing my DD over this sleep period, there is lots of negative thought about this play across all the boards. In the way it was promoted/hyped. and the backing of Zimtu Capital involved in the hype with there Rockstone Research boys , thrown in for good measure, who by the way,also back Cardiff’s oil play. The pump from these boy and the handling of the results/samples from the company(no pictures,notting ),the word is something is just not right. Well Dave says he here’s some news coming ,… “i would hope so”. I am invested in this play but, i am worried the hype machine might have been to much into overdrive. As for news, here’s something that Zimtu Capital is unto in Germany (more hype) ……
Comment by bigbear — October 29, 2015 @ 6:49 am
Jamie – Mr. Shorty could not participate in the PP. I posted this before.
Comment by dave — October 29, 2015 @ 6:55 am
Bigbear – please keep your type of useless comments for stockhouse
Comment by 02charoc — October 29, 2015 @ 6:55 am
Imminent good news dave?
Comment by McIlroy — October 29, 2015 @ 6:59 am
Thanks Dave. Glad to hear Mr Shortie was unable to participate and sorry I missed your previous post regarding this. It is a very common toactic for people and occasionally unethical insiders to short before a PP is done. In any event, nothing I love better then the smell of a short getting torched..LOL Reminds me of one of my favourite movie lines “I love the smell of napalm in the morning”
Comment by Jamie — October 29, 2015 @ 7:09 am
#53. That’s not fair. Big bear is only voicing his concern, which after a 50%drop in 10 days he is entitled too. Absolutely no guarantees with this play
Comment by Seamus — October 29, 2015 @ 7:24 am
02charoc- Didn’t mean to hit a nerve there,I’m in this play,as well as other’s that BMR is giving us insite too.Just that there are lots of questions, being asked by some smart people about how this is playing out. And… stockhouse…LO.. LO … you hit me hard with that one . But do go to CEO.CA…… check that out … lots of smart people there ..good chats going on .Check out EQT on there read some opinions, it’s doing your DD right?
Comment by bigbear — October 29, 2015 @ 7:32 am
Seamus- Thanks
Comment by bigbear — October 29, 2015 @ 7:34 am
It is quite fair. They have raised a ton of cash. Everything thinks it is just so easy to finance in the junior market these days.
Comment by 02charoc — October 29, 2015 @ 7:35 am
I would like to add my vote in favour of caution re eqt. To many red flags right from the start, if they hit then it is a good but at a dollar ashare and not a gamble. I got out early in the week. I also see where bigbesr is coming from and I agree with the post by dd4. Richard l
Comment by charleybarley — October 29, 2015 @ 9:55 am
ddd4 – who said that the PP was oversubscribed?Also, can someone point out the “red flags” on EQT? I haven’t seen any valuable chats on ceo.ca re EQT.
Comment by 02charoc — October 29, 2015 @ 11:45 am
02charoc- if you been to the ceo.ca chat site/not the web site and you hi-light the symbol EQT (it is usually highlighted in red as most of the symbols are), then all the chats about that symbol well show up,and they are chats from people as diverse as Eric Coffin, to ceo’s from other companys , and these chats ,or responses to what they think might be going on , go back for days … so scroll back a few days of chat to hear what people in the business have to say … i hope that helped
Comment by bigbear — October 29, 2015 @ 5:31 pm
02charoc- the site you need ..https://chat.ceo.ca/index.html
Comment by bigbear — October 29, 2015 @ 5:39 pm
Bigbear – what “smart” people, “big names” or “ceos” what been talking about EQT?
Comment by 02charoc — October 29, 2015 @ 6:38 pm