October « 2018 « BullMarketRun.ca

October 1, 2018

BMR Evening Alert!

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7 @ 7:00

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1. Gold has traded between $1,184 and $1,193 so far today…as of 7:00 am Pacific, the yellow metal is off $3 an ounce at $1,189…bullion fell for the 6th straight month in September, its longest monthly losing streak since 1997...Commerzbank remains optimistic, however, saying “the tide will soon turn for Gold“ with the bank expecting $1,300 an ounce by year’s end…Silver has retreated 22 cents to $14.42 after a big jump on Friday…Copper is off 3 pennies at $2.80…weak manufacturing data yesterday from top consumer China has created fresh nervousness about demand, but bulls are encouraged by falling inventories in London Metal Exchange-approved warehouses…Nickel has slid 12 cents to $5.58 while Zinc and Cobalt are steady at $1.18 and $28.12, respectively…Crude Oil continues to climb, up 24 cents at $73.49, while the U.S. Dollar Index has added one-tenth of a point to 95.25…

2. Markets are looking favorably upon a U.S.-Canada agreement reached last night to replace the North American Free Trade Agreement…the 24 year-old NAFTA, which President Trump rallied against as a disaster, will be renamed USMCA – the United States-Mexico-Canada Agreement…“USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region,” Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said in a joint statement released late yesterday. “It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home,” the statement said. “We look forward to further deepening our close economic ties when this new agreement enters into force”…at the heart of the deal is a trade-off between greater U.S. access to Canada’s dairy market, which is heavily protected by a system of supply management, and Canadian demands for the maintenance of a dispute resolution process…

3. Tesla (TSLA, NASDAQ) produced a record number of vehicles in the 3rd quarter, according to a report in electric vehicle blog Electrek, which cited unnamed sources…the report said Tesla made about 80,000 cars in the last 3 months, which would be nearly as much as it produced in the previous 2 quarters combined…that number includes 53,000 Model 3 sedans, squarely within Tesla’s goal of producing between 50,000 and 55,000 Model 3’s during the quarter…the Model 3 is Tesla’s mid-size electric sedan, and the car that is meant to turn Tesla into a mass manufacturer of electric vehicles…the automaker is expected to release production and delivery numbers this week…meanwhile, CEO Elon Musk has settled charges with the Securities and Exchange Commission over his recent aborted bid to take the firm private…as part of the settlement, Musk will relinquish his position as Chairman of the Board at Tesla for at least 3 years while Tesla and Musk will each pay a $20 million…

4. The Dow has soared 231 points through the first 30 minutes of trading with investors pleased about the new U.S.-Mexico-Canada trade agreement…in Toronto, the TSX is up 76 points while the Venture has added 2 points to 711…Chemesis International (CSI, CSE) has touched the $2 level for the first time…last week, the company announced it’ll be entering the cannabis-infused beverages market…Aton Resources (AAN: TSX-V), with more than 250 million shares outstanding, has jumped on high volume after releasing results (including 36 m @ 12.5 g/t Au) from the first 3 holes of an RC drill program at its Rodruiin prospect within the company’s 100%-owned Abu Marawat Concession in the Eastern Desert of Egypt…Phase 1 drilling of up to 6,000 m continues…Harvest Gold (HVG, TSX-V) is up half a penny at 9 cents…the company is earning an 80% interest in the promising high-grade Cerro Cascaron Gold-Silver Project in Mexico through a JV with Evrim Resources (EVM, TSX-V)…crews have mobilized for the start of a 3,000-m drill program…Cerro Cascaron, covering 69 sq. km, hosts a low to intermediate sulphidation epithermal Gold bearing system and includes a high-grade Gold vein field spanning approximately 18 sq. km in area on the eastern third of the property…veining has been mapped on a cliff face for over 900 vertical meters, with classic textural evidence of multiple phases of hydrothermal boiling accompanying the highest Gold grades…these boiling zones have been established in the upper 380 m of the vein field…beneath the boiling zones, silver and base metal-rich veins and breccias provide additional exploration targets…

5. Skeena Resources (SKE, TSX-V), which continues drilling at Eskay Creek, has intersected 33.2 g/t Au and 1,903 g/t Ag over 10.5 within a broader interval of 14 g/t Au and 707 g/t Ag over 28.5 m in SK-18–004…the Phase I program on the 21A, 21C and 22 zones is designed to upgrade Inferred Resources to Indicated Resources in areas with low drill density to allow for future economic analyses and to collect fresh core for a planned metallurgical characterization and testing program…no historical drill core remains for any zones at Eskay Creek…overall, the metallurgical program is designed to gather unbiased, representative material that is spatially distributed throughout the various zones that will ultimately be used to optimize future mine planning…

6. Copper Mountain Mining (CMMC, TSX) has released a Feasibility Study for its 100%-owned Eva Copper Project in Queensland, Australia…highlights include an after-tax NPV (8% discount) of $256 million (U.S.), an after-tax IRR of 28%, average annual Copper production (years 1 through 9) of 90 million pounds, cash costs of $1.74 per pound, and an initial capital cost of $350 million…“The results of the Eva Feasibility Study clearly demonstrate the quality and size of this asset,” commented Gil Clausen, Copper Mountain’s President and CEO. “Eva has the potential to add significant cashflow to our operating base, at one of the lowest capital intensities for near-term greenfield projects anywhere, in the best mining jurisdiction in the world”…

7. No surprise – environmentalists on a mission to “save the planet” by killing good-paying jobs are lining up against the largest single infrastructure investment in B.C. history, led in part by B.C. Green Party leader Andrew Weaver…2 of the 5 primary investors in a proposed liquefied natural gas project in northern B.C. granted their final approval Friday for the development, bringing Canada’s first major LNG project one step closer to becoming a reality…PetroChina and Kogas, of South Korea, have both announced their readiness to move forward with the $40 billion investment led by the joint venture LNG Canada…meanwhile, the Green Party, which has been propping up the provincial NDP minority government, has warned that significant LNG development would violate their power-sharing deal…the NDP and Greens’ Confidence and Supply Agreement (CASA) pledges to draft a climate plan that would reduce greenhouse gasses by 40% by 2030 and 80% by 2050, something Wacky Weaver believes is impossible with LNG…