Gold touched a low of $1,550 this morning before rebounding…as of 5:05 am Pacific, the yellow metal is down $7 an ounce at $1,561…Silver is off 39 cents at $27.81…Copper is down 6 cents at $3.47…Crude Oil is 89 cents lower at $90.96, on growing hopes of a deal between Iran and the U.N. nuclear watchdog, while the U.S. Dollar Index is off slightly at 81.68…it faces stiff resistance around 81.80…
Healthy Demand For 0% German 2-year Bonds
Germany attracted healthy demand from investors wanting to lend to the country today despite offering no interest payments at a two-year bond sale, as worries about a Greek euro exit heightened demand for safe-haven assets…Germany sold 4.56 billion euros ($5.8 billion) of the new two-year bonds, which carry a 0% coupon, and with an average yield of just 0.07% it was almost free money for the country…with German government bond yields falling over the last year to record lows and with euro zone inflation at an annual rate of 2.6% last month, investors are actually losing money in real terms…
EU Informal Summit – Expectations Low
European leaders meet in Brussels tonight for an informal dinner being billed as a showdown between German Chancellor Angela Merkel and French President Francois Hollande over the tricky issue of Eurobonds – bonds issued by the EU and backed by euro zone members collectively…the Germans are still vehemently opposed to the idea of Eurobonds but are apparently much warmer to the idea of Project Bonds to fund infrastructure investment in the euro zone…
World Bank Cuts China Growth Forecast
The World Bank has cut its economic growth forecast for China this year to 8.2% and is urging the country to rely on easier fiscal policy that boosts consumption rather than state investment to lift activity…in a biannual East Asia and Pacific economic update, the World Bank said a slowing China will drag growth in emerging East Asia to two-year lows this year, but warned Europe’s seething debt crisis could inflict even bigger damage if it worsens…sluggish U.S. and European demand and a softening Chinese property market would combine to weigh on the Chinese economy in the near term, it said…but if governments and central banks act in time to stabilize activity, economies should recover next year…
Mining Industry Aggregate Market Cap At Lowest Level Since December
The mining industry’s aggregate market capitalization fell in April to $1.82 trillion, the lowest level since December, according to Metals Economic Group…they stated their pipeline activity index showed that significant drilling results also appear to be stalling…Gold drilling has remained flat since peaking in November and base metals results are at levels similar to late 2010/early 2011 after a moderate spike in February…
Today’s Markets
Japan, with a nearly 2% loss, led Asian markets lower overnight while European shares are down significantly this morning as well in the order of 2%…stock index futures in New York as of 5:30 am Pacific are pointing toward a weak opening (75-point loss) on Wall Street…
Venture Exchange
The Venture climbed as high as 1261 yesterday with an intra-day gain of as much as 33 points but couldn’t hold that level and closed up 19 points at 1248…below is John’s updated CDNX chart which shows some encouraging signs but investor patience is required as the Index tries to gain traction and establish some “up” momentum…
GoldQuest Mining (GQC, TSX-V)
GoldQuest has been trading recently at levels not seen since the depths of the 2008 Crash, yet the company is drilling its still very promising La Escandalosa Property in the Dominican Republic with initial results due in the near future…a 3,000-metre program commenced back in February and is testing the northern and southern extensions of known mineralization…previous results included 53 metres grading 3.02 g/t Au in hole #41 at Escandalosa Sur and 17 metres of 3.45 g/t Au in hole #65 to the north at Hondo Valle…this is a flat-lying, near-surface deposit and the current drilling has an excellent chance of significantly expanding resources…with GQC trading around 6 cents for a market cap of only $6.6 million, a very good drill result – even in this market – has the potential to push the stock significantly higher…John’s updated GQC chart shows resistance around 10 cents…
Gold Standard Ventures (GV, TSX-V)
GV has been a top performer on the Venture this year thanks to excellent drilling results from its Railroad Project in Nevada…a cleansing of the recently overbought technical condition has occurred, setting the stage for a possible test of resistance at the $3 level…
Note: John, Jon and Terry do not hold share positions in GQC or GV.
Problem with GQC, is that result should be out by now, last year it took 2 mouths from begining of drilling to the announcement of results. So result may not be that good.
Comment by Martin — May 23, 2012 @ 4:40 am
Do you guys cover Tembo Gold?
Comment by Michael — May 23, 2012 @ 5:21 am
Jon
Have you looked over the 43-101 for GBB? Curious on your impressions for them moving forward.
Comment by pete — May 23, 2012 @ 5:39 am
GBB… as I said yesterday…. the 8 cents lot will be dumped….. now at 7.5 cents …. danger guys….. if you want to bet for your luck… you can scoop some at 7 cents… It might revert back to 6 cents stock… . There are too many shares ready to be dumped….
Comment by Theodore — May 23, 2012 @ 6:25 am
When BMR stops being bullish on TSX-V, then I will buy.
Comment by Don — May 23, 2012 @ 7:22 am
BMR – The 15 cent warrants that are still left are apparently mostly in the hands of management
and a few close associates,
Bert – It seems someone wants to pounce every time our stock price moves up a penny or so & sell
their shares down to 0.15, to buy their warrants. This type of action tells me that some may be
showing that they may be nervous & not willing to hold their shares while exercising their warrants,
or they have no cash left. R !
Comment by Bert — May 23, 2012 @ 7:28 am
Good stuff, Don, that’s being a contrarian investor! I think u need to understand our position a little better….we believe this is the right time to be bullish, in the context of where things could be in the coming months………could the Venture still go to a new low? absolutely…….but when everyone is so negative and down on these markets, as they are right now, that has always proven to be a good time to jump in as a medium or longer-term investor, or a trader that plays the rallies…….
Comment by Jon - BMR — May 23, 2012 @ 7:30 am
BMR – But when everyone is so negative and down on these markets, as they are right now,
that has always proven to be a good time to jump in as a medium or longer-term investor,
or a trader that plays the rallies…….
Bert – I say this jokingly, because most times i am on your side. When you state,
”now is a good time to jump in”, do you think i am Bert Bernanke, with a money
printing press ?
Comment by Bert — May 23, 2012 @ 7:45 am
Bert, I picked up some more myself this morning on the RBW but the feeling I get from looking at the market is that there’s one main seller here, and it’s probably a situation where he has needed to raise some cash……..could be someone with a margin call, who knows…….but that’s the sense I have of it……..
Comment by Jon - BMR — May 23, 2012 @ 7:46 am
RBW very sad action Bmr& I dropped the ball on this as others,im still holdin but not happy ,all of sudden the warrants are the flavor du jour,Gqc really yall mentioned it at 0.40 range if im not mistaken.
Comment by Gerry — May 23, 2012 @ 7:49 am
Bert – that was a good one. I’m all in, no cash, so just try to switch things around and I’m hoping to pick up a few more RBW this afternoon. 🙂
Comment by Andrew — May 23, 2012 @ 7:51 am
the anon selling has stopped for now…we now what and see what the last hour has in store for us. I had a bid at 16.5 and was surprised to see it hit after the first couple trades looked so promising for the day…
Comment by db — May 23, 2012 @ 8:42 am
old article (April 17th) but confirms graphite demand… especially high grade flake grphite..
kootenaybiz.com/bizblog/article/slocan_valleys_eagle_graphite_to_expand_production_to_meet_demand
Comment by db — May 23, 2012 @ 10:18 am
db – I cleaned up the .055 ASWs this afternoon 🙂
Comment by Andrew — May 23, 2012 @ 10:24 am
nice work! hope it works out for you. the 15% graphite outcrop on Blu Starr is encouraging, escpecially as less than 25% of the property was covered by the airborne in 2010. I would love to spread my wealth but have decided to commit to RBW for the time being and have brought my average down quite nicely over the last few weeks…
Comment by db — May 23, 2012 @ 10:30 am
Thanks db – RBW is my main holding and I’m also picking away at bringing down my average. It was a toss up between RBW at .16 or ASW. Now I’ll just watch and play accordingly. Good luck!
Comment by Andrew — May 23, 2012 @ 10:40 am
Just a quick note on RBW……I’ve done checking into things this morning and the likely 1 seller of most of the 423,000 shares sold by ANON since Thursday are connected to the 1 individual with the iceberg order and a pro-trader…….and he’s rapidly running out of stock….needed to raise some cash…..
Comment by Jon - BMR — May 23, 2012 @ 10:41 am
Cool! – thanks, Jon
Comment by Andrew — May 23, 2012 @ 10:43 am
thx jon- i sent an email to IR trying to find out that exact info!
Comment by db — May 23, 2012 @ 10:46 am
Jon – 1 seller of most of the 423,000 shares sold by ANON since Thursday are connected to the 1 individual with the iceberg order and a pro-trader.
Bert – I wouldn’t consider him a professional trader, having to sell RBW shares at around 0.15, for
whatever reason & trying to hide his sales behind anonymous. If he was a professional, he shouldn’t
be in a position of having a reason.. I felt the whole world was uncorrupted, until i got involved
in this game & now i am addicted. Please Lord show me the way. R !
Comment by Bert — May 23, 2012 @ 10:56 am
Today looks to be the bottom in gold. Gold stocks are rallying while gold has made its final bottom. Venture should rally from here on.
Comment by Andrew M — May 23, 2012 @ 10:58 am
The Canadian markets are coming back. Toronto in the green & the Vulture is getting there.
looking good ! R !
Comment by Bert — May 23, 2012 @ 10:58 am
A pro trader lost $2 billion for JP Morgan……pro traders can do stupid things….
Comment by Jon - BMR — May 23, 2012 @ 11:02 am
This trader had 500,000 RBW shares…….
Comment by Jon - BMR — May 23, 2012 @ 11:07 am
Jon – A pro trader lost $2 billion for JP Morgan……pro traders can do stupid things….
Bert – She lost her job & as a result, she is not now a professional, trader that is,
but i do agree, that a pro trader can do stupid things & because some may hide behind
anonymous, is an indication they may not want their stupidity to become known.
I am right some of the time. R !
Comment by Bert — May 23, 2012 @ 11:11 am
Jon – This trader had 500,000 RBW shares…
Bert – Buying a new home Mr. Johnston ?
Comment by Bert — May 23, 2012 @ 11:16 am
RBW – Alpha is a pain, I just bought some RBW at .16 but it doesn’t show on CDNX and the ask is at .165. A bid at .16 should fill no problem
Comment by Andrew — May 23, 2012 @ 11:38 am
I just bought what was available on ALPHA at .165.
Comment by Jon - BMR — May 23, 2012 @ 11:46 am
GoldQuest Reports Drilling Results From the Dominican Republic Hole LTP 90: 231 Metres Grading 2.4 g/t Gold Including 160.3 Metres Grading 2.9 g/t Gold and 0.62% Copper
Comment by Andrew — May 23, 2012 @ 12:26 pm
Monster hole……..good timing with our report and chart this morning! GQC will rock tomorrow….
Comment by Jon - BMR — May 23, 2012 @ 12:34 pm
RBW – What a coincidence, isn´t it ? Yesterday I posted, that there might be shares in bigger quantities hitting the market to cover warrants and / or trade PP shares for warrants.
BMR still states that most shares are held with insiders and “close associates”, which is NOT public knowledge !
SEDI (not SEDAR, Jon) states – and SEDI is reliable, up-to-date public information for insider holdings – that insiders DO NOT hold all the 15 cent warrants. In fact, all 6 reported insiders jointly hold a total (ALL WARRANTS, not only the 15 cent ones) of 650,000 out of 14,666,001 warrants, thats just 4,4% of all issued warrants !
If Jon of BMR is correct, than “close associates” have to hold quite a lot of warrants ! 🙂
First question: whend does a “close associate” does become an insider ?
And if Mr. Johnston and his immediate family do hold “in excess of 2,5 million shares”, as Jon suggested, then again, it´s definitely not Mr. Johnston himself holding these shares, because according to yesterday´s SEDI report, President and Director Johnston holds a total of 200,000 shares and 300,000 options !
That means, that the majority of the “in excess of 2,5 million shares” have to be held by his “immediate family”. My question would be, why is the President of the company only holding 500,000 shares and options, when “his family” is holding more than 4x his amount ? Second question: why did the President NOT participate in the most recent PP ?
A lot of questions, which can´t be answered with publicly available information. So I still question BMR´s answers. Unless they have insider information, they couldn´t know better. And if that´s the case, they should disclose their status. SEDI is very reliable for insider information, which is why I urge all readers to have a look there for yourself.
FANTOMAS
Comment by FANTOMAS — May 23, 2012 @ 1:55 pm
Fanthomas
Don’t forget 500,000 shares were being held by a pro trader, who may be s relative
or just a close associate, anyway, he/she needed some cash for sure. Can you imagine
someone selling 500K shares for 0.15. As the stomach turns.
Rather than submit another post, i will state that i have never seen Toronto & the
Vulture exchanges, after being well down, reverse & close in the green. Quite a comeback,
which bodes well for a positive day tomorrow.
Comment by Bert — May 23, 2012 @ 2:23 pm
Fantomas, we’ll respectfully agree to disagree. First, the recent selling is connected largely to one individual (pro trader) and an iceberg order that first came into the market last Thursday (I strongly suspect). If I’m correct, and I believe I am, then this particular individual is running out of stock (he had 500,000 shares). Over 400,000 have been sold through ANON since last Thursday.
In terms of the 15 cent warrants, there are about 2 million outstanding. It is a fact that most of these warrants are held by directors (about 30% of them) and very close associates of Brian Murray from the original RBW IPO. Do the proper research.
Johnston and his family held 2.5 million shares of the private Braveheart company, before it was taken over by Rainbow, and none of these shares has been sold (confirmed by Johnston). You don’t have to take my word for it – call him yourself (403-701-2781). Most of these shares are in his wife’s name (she is the beneficial owner) and she is not a director and is under the 10% threshold, so this is why you did not see this in the SEDI report. This is common in the industry. CASE CLOSED, my friend. I have my facts.
Comment by Jon - BMR — May 23, 2012 @ 2:35 pm