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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,283 and $1,290 so far today…as of 7:00 am Pacific, the yellow metal if off $1 an ounce at $1,285 as it tries to rebound from a bout of profit taking…some stronger than expected U.S. economic data, the possibility of a near-term U.S.-China trade deal, and rumors of potential monetary accommodation in China all contributed to a sudden correction in Gold after a strong run to key resistance at $1,350…TD Securities commented, “The combination of higher U.S. dollar opportunity costs, the redirection of capital flows into equities and the recent rejection at $1,350/oz all helped to persuade traders to take profits”…the $33 billion SPDR Gold Shares ETF, or GLD, saw a net withdrawal of $496 million on Friday, the most in a single day since February 2018…that pushed the 5-day total to about $720 million, marking the 4th consecutive week of outflows…Silver is off a penny at $15.06…the Gold-Silver ratio is now at its highest since late December…base metal prices are firm…Nickel has shot up 19 cents a pound to $6.17…Copper is 4 cents higher at $2.97 while Zinc is up slightly at $1.28…Crude Oil has added 25 cents a barrel to $56.84 as OPEC-led efforts to tighten supply offset the restart of Libya’s biggest Oilfield…Russia’s energy minister says his country plans to speed up its output cuts this month…the U.S. Dollar Index has gained one-tenth of a point to 96.74…

2. Jeff Currie, Goldman’s global head of commodities research, says Gold has sold off on overly optimistic views that Washington and Beijing will soon resolve their ongoing trade dispute…“We actually think this is a pound-the-table time to be buying Gold right now,” Currie told CNBC…“We’re sticking to our $1,450 target”…

3. Embattled Canadian Prime Minister Justin Trudeau is in Toronto…however, in rather bizarre timing given PDAC, Trudeau and his Minister of Mother Nature last night delivered Alexandria Cortez-Ocasio-style speeches on the environment and the need for drastic action to combat “climate change” and prevent the world from imploding within 12 years (Trudeau’s rally was just a short distance away from PDAC at the Danforth Music Hall)…not once did Trudeau mention the word “pipeline” in his speech…the fact he would choose the middle of PDAC to push his jobs-killing carbon tax and National Energy Program which includes controversial Bill C-69 is yet another example of how he has contempt for an industry that has built our country…Trudeau’s “climate strategy” is costing Canada billions of dollars and tens of thousands of jobs, and Canadian Association of Petroleum Producers (CAPP) President and CEO Tim McMillan warns that Bill C-69 represents “an existential threat to the resource sector in Canada”…meanwhile, Canada continues to slip further behind the United States in economic growth…U.S. GDP annualized growth in Q4 was 2.6%…Canadian GDP annualized growth in Q4 was a meagre 0.4%…Trudeau is carrying out a devastating program that is wreaking havoc across the Oil and gas industry, the biggest single contributor to Canada’s GDP, while making Canadian businesses in general less competitive vs their U.S. counterparts…

4. China must be prepared for a “tough struggle” as the country faces a “grave and more complicated environment”, Premier Li Keqiang said at today’s opening of the country’s annual parliamentary meeting (National People’s Congress)… “We must be fully prepared for a tough struggle”, Li told a delegation of nearly 3,000 representatives…“The difficulties we face must not be underestimated, our confidence must not be weakened, and the energy we bring to our work must not be allowed to wane”…this year’s meeting comes amid serious trade tensions with the U.S., China’s largest trading partner, which have placed immense pressure on China’s economy and financial markets…in prepared remarks, according to an official English handout, Li warned that there will be greater risks ahead for the world’s 2nd-largest economy…“A full analysis of developments in and outside China shows that in pursuing development this year, we will face a graver and more complicated environment as well as risks and challenges, foreseeable and otherwise, that are greater in number and size”…

5. Barrick Gold (ABX, TSX; GOLD, NYSE) CEO Mark Bristow says he’s open to a joint venture with Newmont Mining (NME, NYSE) to combine the companies’ Nevada operations instead of doing a takeover…“We would be delighted to meet Newmont to see if they’re sincere, and see if a JV can be agreed upon. We’ll consider (dropping the hostile bid) when we get a workable JV”...hmm…Barrick last week proposed acquiring Newmont for $17.8 billion (U.S.) in a deal valued at 8% below Newmont’s stock price…Barrick made the questionable argument that no takeover premium was necessary because the combination of the 2 giants would generate at least $750 million (U.S.) a year in cost savings over the first 5 years…most of those savings would be in Nevada, where they both have large mines in the same region…yesterday, Newmont formally rejected Barrick’s takeover offer, criticizing its “high risk” mine portfolio and its governance record, and calling out new CEO Bristow for his inexperience in running a global miner…“The emperor doesn’t have anything to sell,” Gary Goldberg, CEO of Newmont, said regarding Bristow’s attempts to woo investors…

6. The Dow has retreated 66 points through the first 30 minutes of trading…in Toronto, the TSX is up 51 points while the Venture has added 1 point to 623 as it continues to grapple with key resistance in the low 620’s…Organigram Holdings (OGI, TSX-V) has hit a new high of $9.27 in early trading…48North Cannabis (NRTH, TSX-V) is off 3 pennies at $1.24 as of 7:00 am Pacific after surging to a new high yesterday on big volume…Ventripoint Diagnostics (VPT, TSX-V) is one of this morning’s top gainers…the company announced that its VMS system used to analyze the right ventricle (RV) of the heart has been approved for use in China…“We commend our Chinese partners for their diligence in achieving approval for the VMS,” lauded Dr. George Adams, CEO…“Now all 32,000 hospitals in China and its territories have access to a 2D ultrasound analytical system to accurately assess right-heart function”…Atlantic Gold (AGB, TSX) earned $27.9 million (13 cents per share) in 2018 on total net revenue of $128 million in its first year of commercial operations…annual cash costs of $558 (CDN) per ounce and annual AISC of $731 (CDN) per ounce were both within 2018 guidance…Gran Colombia (GCM, TSX) has announced a $20 million (CDN) convertible debenture bought deal to replace its previously announced equity offering…

7. CIBC analyst John Zamparo says Canopy Rivers (RIV, TSX-V) provides “compelling value for investors in the cannabis space, particularly for those concerned about sector valuations, which are approaching all-time highs”…Zamparo jacked his share target up a loonie to $8, stating, “We consider RIV undervalued for two reasons.  First is a deemed lack of U.S. exposure, which we believe to be misguided.  We count four main avenues to the U.S.  First, RIV’s PharmHouse partners own a significant amount of greenhouse space in America, which could be converted quickly upon a legalization event, at an attractive cost.  Second, RIV’s TerrAscend asset already generates U.S. revenues and EBITDA, and is accompanied by a leadership team with a solid track record in an adjacent industry.  Recent investments in Greenhouse Juice and Headset comprise the final two avenues.  These are relatively immaterial for now, but we believe they could grow substantially larger, particularly Greenhouse, following the 2018 Farm Bill that moves forward the production and sale of CBD-based beverages”…Canopy Rivers earned $1.42 million in Q3 and just recently closed a $93.5 million financing…the stock is up 3 cents at $4.53 as of 7:00 am Pacific…

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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,304 and $1,314 so far today…as of 7:00 am Pacific, the yellow metal has rebounded from its lows of the morning and is off just $1 an ounce at $1,312…not surprising that bargain hunters stepped in as bullion approached strong technical and psychological support at $1,300 which could be tested more vigorously…Silver has backed off 14 cents to $15.43 but should also snap back quickly based on a continuing favorable overall technical pattern…base metals remain firm…Nickel has jumped 13 cents to $6.00, Copper is up 3 pennies to $2.98 while Zinc has added 1 cent to $1.28…Zinc mines have been ramping up but smelters have not been able to keep pace, so shortages of refined metal have persisted…“Most if not all Western smelters are probably working flat out, but in China, with the environmental scrutiny clampdown, capacity is being cut and new capacity has been delayed,” stated Robin Bhar, head of metals research at Societe Generale in London…“The deficit in the refined market is being met by the drawdown in stocks, so that’s lending a lot of support to the Zinc price”…Cobalt continues to rebound, up another 45 cents to $15.42...Crude Oil is 29 cents higher at $57.51 while the U.S. Dollar Index is off slightly at 96.16…

2. Not only do central banks want more Gold but some of them want to hold it in their own vaults…according to international reports, Romania is the latest nation that wants its bullion back…the country’s Social Democrat Party (PSD) leader Liviu Dragnea and PSD senator Serban Nicolae have proposed legislation that requires the National Bank of Romania (BNR) to hold most of its Gold reserves domestically…a description of the bill posted on the Senate’s website said, “The National Bank of Romania can deposit Gold from the established reserve abroad exclusively for the purpose of obtaining income through trading and other specific operations. The Gold deposited by the National Bank of Romania abroad cannot exceed 5% of the total Gold reserve”…while the central bank does keep some Gold in its vaults in Bucharest, the majority of Gold is held in the United Kingdom with the Bank of England…

3. This morning’s strong early moves on Wall Street come a day after the major indexes posted solid monthly gains in February, pushing the S&P 500 to its best start to a year since 1991…the S&P 500 is already up more than 11% for 2019, along with the Dow…the NASDAQ, meanwhile, has climbed 13.5%…this could mean further gains for investors as the year goes on…data compiled by LPL Financial show that, in 25 of 27 occasions since 1950, the S&P 500 has posted gains in the final 10 months after rising in January and February…those are compelling numbers…decreasing trade tensions between China and the U.S., combined with declining fears of tighter monetary policy from the Federal Reserve, have helped propel stocks higher to kick off 2019…

4. U.S. GDP annualized growth in Q4: 2.6%…Canadian GDP annualized growth in Q4: 0.4%…the Trump economy continues to severely outperform the Trudeau economy, but by now that should come as no shock to anyone…Canada’s economy practically came to a halt in the final 3 months of 2018, growing just 0.1% – the weakest quarterly growth since the middle of 2016 – for annualized GDP of only 0.4% vs. 2.6% in the United States…how long will Canadians put up with mediocrity, economic under-performance and poor fiscal management by career politicians?…Statistics Canada said the late-2018 slowdown was mostly due to a 2.7% contraction, on a quarter-over-quarter basis, in investment spending (wonder why what happened?)…overall exports saw a slight decline and household spending slowed for a 2nd straight quarter…here’s another astonishing statistic after Trudeau’s legalization of marijuana which he erroneously claimed would kill the black market – household spending on marijuana, at an annual rate, totalled $5.9 billion in the 4th quarter – with illegal pot accounting for $4.7 billion of the total and legal weed representing only $1.2 billion…meanwhile, StatsCan is under fire for releasing GDP data nearly 30 minutes early through a tweet…

5. Justin Trudeau is no friend of the resource sector in Canada – in fact, our besieged Prime Minister is the enemy of the resource sector in this country as demonstrated by his words, actions and inaction over the last 3.5 years (getting pot to market during that time has been a much higher priority for Trudeau than pushing Oil or other resources to market)…Bill C-69, which Trudeau is urging the Liberal Senate to ratify, is only the the latest example…Canadian Association of Petroleum Producers (CAPP) President and CEO Tim McMillan calls Bill C-69 “an existential threat to the resource sector in Canada…almost every province has serious concerns and are referencing many of the same things”…meanwhile, as far as the “rule of law” is concerned, it meant nothing to Trudeau when on June 17, 2014, the then leader of the 3rd place federal Liberal Party vowed to kill the Northern Gateway pipeline if he became Prime Minister – and indeed he did kill it shortly after he won the 2015 election – even though the project had already been approved by the National Energy Board’s joint review panel in December 2013 and had just been passed in the House of Commons…not only had Calgary-based Enbridge jumped through literally hundreds of planning and regulatory hoops starting in 2002 – including meeting all 209 extra conditions placed upon it by the NEB – and spent more than $500 million with the project’s other proponents, Trudeau had no regard for a semi-judicial and extremely rigorous process that set Canada apart as a country that did not resort to arbitrary measures and political whim when it came to determining the viability of large infrastructure projects…is it any surprise, then, that he ignored the “rule of law” with regard to SNC-Lavalin (SNC, TSX) in an effort to protect jobs in his home province of Quebec?…

6. The Dow, gunning for a 10-week winning streak, is up 162 points through the first 30 minutes of trading…in Toronto, the TSX has gained 101 points while the Venture has added 1 point to 625 as it continues to attempt to conquer key resistance in the low 620’s…Canopy Growth (WEED, TSX; CGC, NYSE) and NEEKA Healthcare Canada have scheduled a news conference for tomorrow to unveil a transformative clinical research initiative in partnership with the NHL Alumni Association…the news conference will feature Glenn Healy, Executive Director with the NHLAA, Dr. Amin Kassam from NEEKA Healthcare Canada, and from Canopy Growth Dr. Mark Ware, Chief Medical Officer, and Hilary Black, Chief Advocacy Officer…additional former NHL players will also be in attendance…American Pacific Mining (USGD, CSE), which jumped 60% in February, has closed an over-subscribed private placement for $1.46 million at 10 cents per unit…the company is advancing a promising high-grade Gold project (Tuscarora) in Nevada that delivered impressive results in USGD’s initial round of drilling last year…fresh channel sample results released this morning by iMetal Resources (IMR, TSX-V) from Zone 1 South at Gowganda West feature Gold values as high as 16.6 g/t, underscoring the point that the ongoing maiden drill program is likely intersecting high-grade Gold…the green carbonate that was channel sampled, and features quartz veining and finely disseminated pyrite, looks very similar to what is found in drill core, according to long-time district geologist Dave Gamble…drilling has also intersected red jasper conglomerates similar to those found at Kirkland Lake…IMR is unchanged at 14.5 cents as of 7:00 am Pacific while Gowganda neighbor Canada Cobalt (CCW, TSX-V) is up 2 pennies at 50 cents…we’ll be hearing more from both companies during PDAC which starts Sunday…

7. Sherritt International’s (S, TSX) refinery in Fort Saskatchewan, Alberta, has reached 3 billion pounds of finished Nickel production since its operations first began in 1954...“As one of Canada’s oldest mining companies, we are proud of this important milestone,” stated President and CEO David Pathe…”It serves as a testament to the refinery’s dependability over the past 65 years, and the ability of our employees to adapt to changes in the industry and introduce innovations that have enabled Sherritt to maintain our leadership position as a producer of low cost, high quality Nickel”…the Fort Saskatchewan refinery was constructed in 1954 and initially processed feed from Sherritt’s Lynn Lake mine in Manitoba…today, the Fort Saskatchewan refinery processes mixed sulphides produced through the Moa Joint Venture, which was created in 1994 and in which Sherritt maintains a 50% partnership interest, to produce Class 1 Nickel in briquette and powder forms…Class 1 Nickel is the purest form of Nickel and is particularly suited for applications, such as electric vehicle batteries, that require high purity levels…

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