Gold has traded between $1,336 and $1,346 so far today…as of 10:30 am Pacific, bullion is down $6 an ounce at $1,334…Silver is off 17 cents at $20.15…Copper is up a penny at $2.20…Crude Oil is 78 cents lower at $41.14 while the U.S. Dollar Index is steady at 96.67…
Gold shrugged off a fresh statement from the Fed yesterday that the near-term risks to the U.S. economic outlook had diminished (potentially, in the view of the Fed, leading to a resumption of monetary policy tightening this year though we all know they won’t have the courage to increase rates anytime before December if at all in 2016)…bullion strengthened after the Fed’s statement and closed up $20 an ounce, hitting a 2-week high…the top of a very strong support band between $1,290 and $1,320 has held this month, setting the stage for a push to $1,400 or better this quarter as we’ll show in an updated chart this morning…
Holdings of the world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, have seen an outflow of nearly 28 tonnes in the last 3 weeks but that’s after a big run-up…
Palladium has soared 18% so far in July, its best monthly performance in a nearly 8-and-a-half years, as it catches up on gains made by other precious metals in the wake of the Brexit vote and benefits from greater demand for cyclical assets…Platinum, meanwhile, hit a fresh 14-month high as it gained 1.7% yesterday to close at $1,152 an ounce…
Agnico Eagle Lowers Cost Guidance, Hikes Production, Increases Dividend – Hat Trick!
The biggest Gold producers reported 2nd quarter results last night…and while the numbers were mixed according to to analysts’ expectations, a key theme was stronger cash flow and improving margins…Barrick Gold (ABX, TSX), the world’s biggest Gold miner, had adjusted earnings of $158 million (U.S.) and a whopping $274 million (U.S.) of free cash flow…the company also slashed its all-in-sustaining cost guidance for 2016 (for the second time) to between $750 and $790 (U.S.) an ounce…Kinross Gold (K, TSX) and Agnico Eagle Mines (AEM, TSX-V) also reported major improvements in cash flow generation, and Agnico also lowered its cost guidance, hiked its production guidance and even raised its dividend 25%…AEM is bucking the trend among producers today, up $1.72 to $73.91 (a 6-year high) as of 10:30 am Pacific…
The one negative exception was Goldcorp (G, TSX) which had significantly lower year-over-year Gold production due to several factors, including a rapid workforce reduction at the Cerro Negro mine in Argentina…Goldcorp’s adjusted operating cash flow declined 41% to $307 million (U.S.)…Goldcorp listed a net loss of $78 million (U.S.) or 9 cents per share, compared to net earnings of $392 million, or 47 cents, in the year-ago period (net earnings in 2015 included non-recurring after-tax gains on the sale of non-core assets of $358 million, or 43 cents per share)…Gold production from April through June was 613,400 ounces at all-in sustaining costs of $1,067 per ounce, compared to 908,000 ounces at AISC of $853 per ounce a year ago, the company said…still, Goldcorp is maintaining 2016 guidance for Gold production of between 2.8 million and 3.1 million ounces at AISC of between $850 and $925 per ounce…
Oil Update – The Loony Left’s Damage To Canada
Canada desperately needs to get more economic value out of its energy resources, but that’s not going to happen with the Loony Left controlling Ottawa and some of the provinces while climate change fanaticism continues to run rampant across this country and down south…numerous radical American groups continue to target Canadian projects including Energy East…the uptick in Oil prices this year notwithstanding, it’s critical to note that Canada’s Oil exports continue to sell at a steep discount to the world price – about 30% less per barrel – because a lack of export pipelines has us almost entirely dependent on the U.S. market which also doesn’t need us quite as much as it used to…no infrastructure project in this country is more important at the moment than Energy East, but what are the chances of it ever getting built with zero political leadership?…what a sad state of affairs in this country…
In Today’s Morning Musings…
1. 784 (Fib.) – what’s the Venture’s next immediate move?…
2. Columbus Gold (CGT, TSX) creates more “blue sky” at Montagne d’Or deposit in French Guiana…
3. How the Law of Supply & Demand could cause this stock to soar…
4. Update on the DR’s Dynamic Duo…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
ALSO…click here for a free BMR eAlert on a 9-cent junior ($2.3 million market cap) that’s set to SOAR on higher Silver prices.
angrygeolgistblogspot.ca for interesting review of Columbos Gold-Eastside-Deposit
Comment by Robert — July 28, 2016 @ 11:10 am
Brent Cook really likes CXO, and the geological team he says is one of the best he’s seen anywhere. Now that will bold well for CXO as institutional investors respect his opinion. BMR team, you have really done your due diligence as well and have given your subscribers some good information and us retail investors a shot at getting into this stock early on. Thank you!
Comment by Dan1 — July 28, 2016 @ 2:33 pm
Dan1, a lot of junior companies would shudder at the thought of having Brent Cook on their property, because he is such a skeptic, very hard to please, and an astute economic geologist. The fact Brent endorsed KSP and CXO on BNN, speaks volumes IMHO. It’s the real deal and the level of execution on the ground is absolutely superb. This is how major discoveries are made.
Comment by Jon - BMR — July 28, 2016 @ 5:26 pm
re CXO learned today that Khyber Pass drill platforms are built and drilling will start there next week. Exciting times!
Comment by Rockman — July 28, 2016 @ 6:59 pm
We saw those fresh pads, Rockman, during our helicopter fly-over last week and mentioned that a few days ago. There’s good reason to believe they’ll hit some very nice holes at Khyber Pass (same “green” rocks 2 km to the south) and connect more dots in the process. Also, given the technical expertise here, it would be pretty difficult IMHO to drill this many holes over such fertile ground (Inel and Khyber Pass) and not hit a hole that would really capture the excitement of the market. Onward and upward for CXO, market cap still cheap and the odds of something really big emerging here are growing by the day.
Today at the Sprott Symposium I did a fascinating interview with the President of Hy-Tech Drilling, which is carrying out Colorado’s program. Check out their web site at http://www.hy-techdrilling.com. Drillers are obviously critical but they’re often overlooked by the market. This is the best drilling company I’ve ever seen, and they’re harnessing the power of technology to potentially revolutionize the drilling industry.
Comment by Jon - BMR — July 28, 2016 @ 7:05 pm
jon: whats the strategy to get DVR? almost seems impossible?
Comment by STEVEN1 — July 28, 2016 @ 8:30 pm
WRR hit 8 today!!! Jon, start following it again?!
Comment by STEVEN1 — July 28, 2016 @ 8:31 pm
We haven’t stopped following it, Steven – there has just been an absence of news. We can’t invent stuff. Again, I’m still comfortable with the property but Michel David has tested everyone’s patience with his foot dragging and poor communication.
Comment by Jon - BMR — July 28, 2016 @ 8:34 pm
The strategy on DVR, Stephen1, is to grab what u see up to a certain price which I would say is 75 cents. Don’t wait for others to move. There’s only so much supply available under 75 cents, and it’s dwindling rapidly. This will be about supply and demand. If you control the supply, and demand starts pouring in, what happens? Just ask Walter Storm.
Comment by Jon - BMR — July 28, 2016 @ 8:39 pm
Jon
no mention at all lately of MTS Metallis, I know they have not made any announcements but you guys were very high on them a month or 2 ago it was even one of your top 3 stocks to own in the Golden Triangle and now no mention at all… can you get any updates from management? do you still think that if CXO hits a big hole that the other companies close by are going to benefit as well? Do you still own the stock?
thanks
Comment by GREGH — July 28, 2016 @ 9:57 pm
Gregh, we’re meeting with Fiore at MTS shortly. There’s no question that given the MTS share structure and the quality of targets at the company’s Kirkham Property (contiguous to part of the KSP), that this stock has explosive potential – especially if a drill program kicks into gear, and there’s no reason why it shouldn’t. My only suggestion to the MTS group is that they need to get more aggressive in telling their story (CXO, for example, is perfectly meshing technical expertise and ground execution with promotion, so hats off to Adam – he’s doing an incredible job on all fronts).
Murray Pezim didn’t discover Eskay Creek without making a lot of “noise”, as he was so good at doing (he was the best). It’s time for MTS to take advantage of these unique and amazing dynamics in the Heart of Gold Camp (it’s the Perfect Storm right now) to make something happen for themselves. This could be a $1 stock in a flash if they went about things properly, and leverage on your share price makes it easier to raise money and make that all-important discovery.
Comment by Jon - BMR — July 29, 2016 @ 4:38 am
MTS – need to close the PP, evenif its undersubscribed, so they can start talking. things in the works, but time is getting short to stagger out news rather than blurting it all out at once
GGI – oh yeah – they could officially announce that they wiffed on the Mexico high grade no brainer. Needed to go deeper, but they need more cash. but this game of sitting on old news is getting , well, old.
Comment by david — July 29, 2016 @ 5:27 am
CXO on fire this morning. Just the beginning. If it fills the gap, take advantage.
Comment by Jon - BMR — July 29, 2016 @ 5:33 am
o well I was a day late on my , look out below, comment,like your comment on Michel david,remind you of someone else we know….?
Comment by Laddy — July 29, 2016 @ 5:33 am
STEVEN1
If you cannot get DVR shares you can still buy VGN and still play the Drone game.
I have some DVR shares but I started early to accumulate VGN so my average VGN is now 11c. Not too late to buy.
VGN also has a couple of gold properties.
Trade well.
Comment by John - BMR — July 29, 2016 @ 6:08 am
Larry
Not getting what you are referring too? A day late? Look out below?
Please explain
Thanks
Comment by Greg — July 29, 2016 @ 6:53 am
greg,not larry ,laddy,referring to the us $.
Comment by Laddy — July 29, 2016 @ 7:05 am
Oh, “Sweet Colorado” as the song goes…terrific day for CXO…smart money is hammering the dumb money…
DVR train departs Tuesday…
Comment by Jon - BMR — July 29, 2016 @ 11:23 am
Jon – are going to post anything on your Interview with Brian – Hy-Tech? A great interview would be with owner/founder – Harvey Tremblay.
Comment by Mmurphy — July 29, 2016 @ 12:47 pm
Yes, Mmurphy, it was an excellent interview with Brian and we’ll be posting that next week – massive amounts of content we’re trying to sort thru between the camp visit late last week and the symposium in Vancouver this week, which Daniel also attended…with regard to PaulH’s question, I intend on meeting with Regoci on Tuesday for a check-up on GGI…toward the end of next week, we’re targeting a special piece on the Heart of Gold Camp – Who’s Hot & Who’s Not. So we’re checking on everyone right now in terms of where they’re at. Bumped into Jim Pettit with ABN today at the Symposium – all’s good with them and they’re executing their game plan with professionalism and efficiency. Colorado is setting the standard for everyone.
Comment by Jon - BMR — July 29, 2016 @ 4:26 pm
Thanks Jon, look forward to it.
Comment by Mmurphy — July 30, 2016 @ 8:34 am
Drillers are often overlooked and taken for granted Mmurphy, and not all drillers are created equal. That is certainly the case with Hy-Tech.
Comment by Jon - BMR — July 30, 2016 @ 2:08 pm