Visit our comments section during the day today for updates and helpful information, and be sure to check for the possibility of a BMR Evening Alert. BMR Morning Market Musings returns tomorrow.
1. Gold has traded between $1,259 and $1,269 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,267…Silver has added 7 cents to $16.63…Copper has slipped a penny to $2.85…Nickel has retreated 2 cents to $4.65…Crude Oil is 14 cents higher at $49.73 while the U.S. Dollar Index has recovered nearly one-tenth of a point to 92.98 as it hovers near strong support at 93…Gold touched a 7-week high yesterday with investors positioning themselves ahead of U.S. jobs data tomorrow which should give further clues on the outlook for further interest rate increases…investors in global Gold ETP’s have scaled back their exposure to the yellow metal at the fastest pace since December…net redemptions reached 64 tonnes in July, the weakest month for ETP activity in 2017…
2. Global demand for Gold fell 14% in the 1st half of this year, including 10% in Q2, due mainly to a sharp decline in purchases by ETFs, the World Gold Council reported today…but the WCG remains optimistic, noting that if ETFs are taken out of the equation, Gold demand shows healthy signs in other sectors…“dramatically” lower ETF inflows were the biggest disappointment during Q2, totaling just 56 tonnes, down 76% from the record-hitting Q2-2016 ETF data…keep in mind that during last year’s Q2, Gold-backed ETF demand was the 4th largest on record, in part fueled by market uncertainty around the U.K. referendum on EU membership…that has skewed comparisons to what occurred this year in Q2…demand from jewelry and technology sectors during the most recently completed quarter was very strong, up 8% and 2% respectively, the WCG said…bar and coin investment also saw strong gains, with Q2 figures rising 13%, driven by a recovery in India…the report also showed that central bank demand remained supportive, climbing 20% to 94 tonnes in Q2…one of the highlights was the purchase of 21 tonnes of Gold by the Turkish central bank, marking the first significant addition to its reserves since the 1980’s…
3. Gold prices could react positively to economic news just out that showed a drop in momentum in the U.S. service sector…the Institute of Supply Management (ISM) has reported that the non-manufacturing PMI reading came in at 53.9% in July, below expectations and down from June’s reading of 57.4%…that marks the slowest activity in 11 months…
4. The Venture is off 1 point at 768 as of 7:00 am Pacific…3 of the top 5 volume leaders in early trading are companies active in the Eskay Heart of Gold Camp…significantly, Metallis Resources (MTS, TSX-V), which has only about 20 million shares outstanding and adjoins the southern border of Garibaldi Resources’ (GGI, TSX-V) E&L Project with its 100 sq. km Kirkham Property, has come to life by hitting a new multi-year high of 31 cents…drilling begins soon at Kirkham which features a known Copper-Gold porphyry system, based on historical drilling, and high-grade Gold targets parallel to that…Cobalt Power Group (CPO, TSX-V) is active this morning, hitting a 5-month high of 14.5 cents…the Dow has slipped slightly below 22,000 while in Toronto, the TSX is also flat in early trading…home prices in Toronto, Canada’s largest city, posted their biggest monthly drop in at least 17 years in July and sales plunged as government efforts to cool the market and the near-collapse of a mortgage lender made buyers leery…prices are still up 18% from the same month a year ago, according to the Toronto Real Estate Board…
5. Aben Resources (ABN, TSX-V) has commenced its summer diamond drilling program at its 230 sq. km Forrest Kerr Gold Project in the Eskay Heart of Gold Camp…the company intends to drill 2,100 m with initial targets focused on the Carcass Creek and Boundary zones to confirm and extend impressive high-grade Gold mineralization discovered in historical drilling…based on recent data compilation, structural geological interpretation and additional field reconnaissance work, Aben has a solid opportunity at Forrest Kerr…the company currently owns certain mineral tenures outright and has agreements in place with various 3rd parties whereby it has the exclusive right to a 100% interest in the large property area that was wisely consolidated last year…ABN is off half a penny at 19.5 cents as of 7:00 am Pacific…
6. Richmont Mines (RIC, TSX) reported robust Q2 financial results this morning, posting earnings of $10.5 million (CDN) or 17 cents per share…company-wide production was 31,249 ounces of Gold for the quarter, primarily driven by solid production from the Island Gold Mine which had record low cash costs…company-wide All-In-Sustaining-Costs were $957 (CDN) or $711 (U.S.), positively impacted by record low AISC of $677 (CDN) or $503 (U.S.) from the Island Gold mine…that operation remains on-track to meet, or beat, annual production and cost guidance…Richmont’s cash balance at the end of the quarter increased to $95.9 million (CDN), an increase of $20.7 million over Q1…RIC is up 21 cents at $10.46 as of 7:00 am Pacific…
7. Kirkland Lake Gold (KL, TSX), another highly attractive Canadian producer, is holding steady around $13 in early trading after it reported strong Q2 results yesterday with net earnings jumping to $34.6 million (U.S.), or 17 cents per share, compared to $13.1 million or 6 cents per share in the previous quarter this year, and $10.6 million or 9 cents per share in Q2 2016…revenue more than doubled from Q2 2016 to $189.9 million in Q2 2017, based on sales of 151,208 ounces at an average realized price of $1,256 per ounce…cash and cash equivalents of $267.4 million at June 30, 2017…both Fosterville and Macassa were key drivers of KL’s improved cost performance, which included achieving AISC per ounce sold of $729 (U.S.) on a consolidated basis…
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Jon- Regarding GGM, do you think it should be accumulated now,
very quiet, but with 5M oz. one would think there must be things
going on behind the scenes…any thoughts?
Comment by Bob — August 3, 2017 @ 8:03 am
couldnt agree with you more Bob!!!!
Comment by Jeremy — August 3, 2017 @ 8:43 am
very very annoying that we havent heard anything from GGM for a month now. the DRA update was supposed to be end of May.
Comment by marc — August 3, 2017 @ 10:45 am
Jon, when or is GGM already drilling the Genesis target north of the Long Bars Zone? Or just targetting the drill locations? Did you hear anything from Frank about marketing plans for GGM to commence this or next month? Your thoughts on the current status woth DRA? Your comments are always much appreciated. Thank you in advance and have a good evening. Regards, Arjan
Comment by Arjan — August 3, 2017 @ 11:10 am
I know you are all excited about GGI with good reason. But BHS looks ready to move well.
Comment by Carl — August 3, 2017 @ 5:32 pm
I wonder how long it takes before the majors start knocking on regoci’s door, or maybe they are already. Maybe we’ll get an update in the am. Get that drill spinning….
Comment by Laddy — August 3, 2017 @ 7:47 pm
Cxo is the real hidden gem, these .30s are a complete give away! Can’t believe people are selling at these prices?
Comment by Greg — August 3, 2017 @ 9:25 pm
News out on Cxo and the word gold count is in it. Wooo hoooooo
Comment by Greg — August 4, 2017 @ 5:01 am
Goldcorp
Comment by Greg — August 4, 2017 @ 5:02 am
Goldcorp Invests In CXO, Colorado Gets 100% Of KSP!
Mr. Adam Travis reports
COLORADO ANNOUNCES STRATEGIC INVESTMENT BY GOLDCORP AND AGREEMENT TO ACQUIRE REMAINDER OF KSP PROJECT
Colorado Resources Ltd. will complete non-flow-through and flow-through non-brokered private placements that will include up to 10 million units at an issue price of 26 cents per unit and 12.72 million flow-through units at an issue price of 36.5 cents per FT unit. Following completion of the Placements Colorado expects to raise up to $7,242,800.
Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one half of one non-transferable Common Share purchase warrant. Each whole warrant (a “Warrant”), will entitle the holder thereof to acquire an additional Common Share at an exercise price of $0.45 for 30 months after the date of issuance (the “Closing Date”).
Each Flow-Through Unit will consist of one flow-through common share of the Company that qualifies as a flow-through share for purposes of the Income Tax Act (Canada) (a “FT Share”) and one half of one Warrant on the same terms as described herein. The FT Units are part of a donation arrangement structured by PearTree Securities Inc. through which Goldcorp is expected to be the ultimate holder of the FT Units. Goldcorp will also purchase 4,240,000 Units directly from Colorado. The Placements are expected to close on or before August 31, 2017, following which Goldcorp will own approximately 14.25% of the issued and outstanding shares of Colorado.
The Company may pay finder’s fees in accordance with the rules and policies of the TSX Venture Exchange (the “Exchange”). The Placements remain subject to the approval of the Exchange. All securities issued in the Placements will be subject to a statutory hold period of four months from the Closing Date of the Placement.
On completion of the Placements, Goldcorp will have the right to maintain its pro-rata ownership percentage in Colorado during future financings. This right will entitle, but not obligate Goldcorp to participate in any future equity financings by Colorado to the extent necessary for Goldcorp to maintain a 19.95% equity ownership interest in the issued and outstanding common shares of Colorado. Goldcorp will also have a right of first refusal in respect of any non-equity financing and tolling arrangements related to future exploration or development on the KSP property and any BC properties Colorado expends the Goldcorp use of proceeds.
Proceeds from the FT Units will be used by Colorado to incur eligible Canadian exploration expenditures to expand the 2017 exploration program. Colorado will renounce the qualifying expenditures to subscribers of the FT Units for the fiscal year ended December 31, 2017. Proceeds from the sale of Units will be used for general corporate purposes.
Concurrently, further to Colorado’s news release of May 11, 2017 wherein Colorado earned a 51% interest in KSP and outlined the exploration spending that would vest a further 29%, Colorado has entered into an amending agreement with SnipGold Corp. a wholly owned subsidiary of Seabridge Gold Inc. (“Seabridge”) wherein the parties will amend the original Option and Colorado will purchase the outstanding 49% interest currently held by Seabridge in Colorado’s flagship KSP project immediately. The transaction is subject to TSX Venture Exchange approval and will result in Colorado owning a 100% interest upon payment to Seabridge of $1,000,000 in cash, 2,000,000 Colorado shares and a 2% NSR on the property (half of which can be repurchased at any time for $2,000,000).
Adam Travis, President and CEO of Colorado stated “This is one of the most important milestones in Colorado’s 8 year history. The Company’s 2016 exploration focused on the Inel zone at KSP and highlighted significant results (see News Release date December 19, 2016). Goldcorp’s investment will not only allow us to increase our ownership of KSP to 100%, it will also provide additional funding to expand our 2017 exploration program and drill-test targets we would not otherwise be able to explore this year. We look forward to welcoming both Goldcorp and Seabridge as shareholders and now have the opportunity to advance KSP with significant support on all levels.”
Colorado’s financial advisor with respect to the strategic investment was Minvisory Corp.
About Colorado
Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and Nevada.
Colorado’s main BC exploration projects include the KSP property currently under option with Seabridge Gold Inc., the 100% owned Kingpin property and the 100% owned North ROK property. Additionally Colorado holds an option on the Green Springs Property (Nevada) from Ely Gold & Minerals Inc.
We seek Safe Harbor.
Comment by Jon - BMR — August 4, 2017 @ 5:20 am
I was just expecting results,not this…….this is so huge for Cxo Jon and john
Comment by Greg — August 4, 2017 @ 5:34 am
It is big, Greg, Goldcorp grabs 14.25% interest in CXO and Colorado gets 100% ownership of KSP…
Silver Standard now Goldcorp make significant moves to position themselves in district, who’s next?…Friedland?…
Comment by Jon - BMR — August 4, 2017 @ 5:53 am
Golden Triangle is definitely heating up Jon. Interesting you mentioned Friesland! I was pondering that last evening. Wonder if he has been watching GGI. I’m sure he is aware.
Comment by Dan1 — August 4, 2017 @ 6:14 am
GGI
Was expecting drilling news this week and surprised we didn’t get any news this week, I’m sure there is probably alot going on behind the scenes but this is why Regoci has his doubters. last NR says drilling is IMMINENT over a week later nothing, not one word from the company…
Comment by Gregh — August 4, 2017 @ 7:31 am
GGI coming alive! Should be an interesting close today.
Comment by Dan1 — August 4, 2017 @ 9:32 am
GGI . yupp even we are building platforms keeps the mom going. geesch
Comment by david — August 4, 2017 @ 9:45 am