Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,289 and $1,300 so far today…as of 7:00 am Pacific, bullion is off $6 an ounce at $1,292…Silver has added 3 pennies to $16.42…Nickel, enjoying a powerful week, is up 2 more cents at $6.93…Copper and Zinc are flat at $3.11 and $1.40, respectively, while Cobalt is steady above $41 a pound…Crude Oil (WTI) has retreated 51 cents to $66.53 while the U.S. Dollar Index has gained one-quarter of a point to 94.19 after a strong jobs report and other data…the Institute for Supply Management (ISM) has reported that its latest manufacturing data showed a reading of 58.7% for May, up from April’s reading of 57.3% – more evidence that the American economy is performing very well…“We are restoring our wealth at home,” President Trump declared this morning…overseas, some relief among investors as Italy’s anti-establishment Five Star Movement and the far-right League clinched the approval of Sergio Mattarella, the President, for the launch of a populist government, all but ending a political crisis that has gripped the country for nearly 3 months and spooked investors…
2. Sales of American Eagle Gold coins in May increased by 433% from April for the highest May sales since 2015, according to fresh data released this morning…U.S. Mint sales of American Eagle Gold coins totaled 24,000 ounces in May, up from 4,500 ounces in April…meanwhile, May sales of U.S. Mint American Eagle Silver coins fell 58.5% from April to 380,000 ounces, the lowest May reading in 13 years…an abundance of Silver in the market isn’t helping…
3. The differential between Brent and WTI increased to double digits yesterday for the first time since March 2015…the widening in this spread is largely happening amid growing U.S. production and bottlenecks in pipeline capacity in the country…U.S. Crude output rose in March by 215,000 barrels a day month-on-month, to a record 10.47 million bpd, according to the U.S. Energy Information Administration, but the means to transport that Oil has failed to keep pace (Canada’s pipeline capacity problem is even worse)…the capitulation of the WTI-Brent arbitrage is the market giving its clearest signal yet that U.S. pipeline capacity is being maxed out…Americans are working feverishly to fix that…
4. While Canada nationalizes a pipeline and economic growth and investment decline, it’s a much different story south of the border where the Labor Department reported this morning that U.S. private sector continues its torrid pace of job creation…non-farm payrolls jumped more than expected in May, by 223,000, while the unemployment rate fell to 3.8% – its lowest in nearly 20 years…full-time jobs rose an eye-popping 904,000 for the month while part-time positions declined by 625,000…unemployment for blacks also continues to decline with the rate falling to a record low of 5.9%…job prospects were never this good in the U.S. for blacks under the Obama administration (of course you won’t that on CNN)…meanwhile, the closely watched average hourly earnings metric for all workers rose 0.3%, in line with expectations…that translates to an annualized rate of 2.7%, up one-tenth of a point from April…
5. Canada Cobalt (CCW, TSX-V) has been one of the top-performing stocks on the Venture this week with the company approaching the start of underground drilling at its Castle mine in the Northern Ontario Cobalt Camp – the first company in Canada to drill underground for high-grade Cobalt during this “new era” for the metal (the last company in North America to drill underground for Cobalt – US Cobalt in February – got bought out 3 weeks later by First Cobalt for an implied valuation of $150 million)…what Canada Cobalt reported yesterday, however, was a major metallurgical breakthrough that is sure to draw further investor interest…using CCW’s proprietary Re-2OX process, SGS Lakefield has recovered 99% of Cobalt and 81% of Nickel from gravity concentrates while also removing 99% of the arsenic…arsenic in the complex ores of the Northern Ontario Cobalt Camp has been a longstanding issue and a detriment to Cobalt production, so this represents a significant new development and another competitive advantage for Canada Cobalt…additional stages of Re-2OX,overseen by Canada Cobalt adviser Dr. Ron Molnar, are expected to produce favorable recoveries for precious metals (Silver and Gold) while also achieving a Chinese National Standard Cobalt sulphate and/or Cobalt hybrid formulations…Cobalt test products will be evaluated by potential battery-sector clients who are in discussions with the company’s marketing representative based in China…CCW is up 2 cents at 43 cents as of 7:00 am Pacific and bullish chart indicators suggest a near-term challenge of all-time highs in January in the mid-50’s..
6. The Dow is up 219 points as of 7:00 am Pacific, thanks to this morning’s strong jobs report…in Toronto, the TSX is up 21 points while the Venture is flat at 761…Garibaldi Resources (GGI, TSX-V) and GT Gold (GTT, TSX-V) should give the Golden Triangle a lift next week as drilling commences at Nickel Mountain after a short weather delay while crews now mobilize at GT Gold’s high-grade Saddle South Gold discovery, a 2-hour drive north of the Eskay Camp…Probe Metals (PRB, TSX-V) has increased its previously announced private placement (flow-through and non-flow-through) to $24.69 million to further advance the company’s Val d’Or East Gold Project in northwest Quebec…Datametrex AI (DM, TSX-V) was halted at the open this morning, pending news…
7. With the federal government’s decision to buy Kinder Morgan’s (KML, TSX) Trans Mountain pipeline dominating the political agenda in Ottawa, and creating plenty of controversy across the country, federal legislation that would overhaul Canada’s environmental assessment process is back in the House of Commons, with Conservatives and industry groups warning that it could be a “death knell” for natural resource projects…investors have many reasons to be concerned, especially since this legislation comes from a government obsessed with climate change and gender issues that shaped Justin Trudeau’s disastrous National Energy Program (NEP 2.0 may even inflict more damage on Canada than his father’s National Energy Program in the early 1980’s)…a new bill, C-69, would replace sweeping environmental assessment reforms passed by the former Conservative government in 2012…it aims to “broaden the scope” of environmental assessments while falsely claiming to shorten timelines…it would create a new “Impact Assessment Agency of Canada”, to replace the Canadian Environmental Assessment Agency, which would lead all major assessments…Bill C-69 is another federal government boondoggle and if passed in its current form will further Canadian competitiveness in the resource sector…
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