Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,275 and $1,284 so far today…as of 7:00 am Pacific, the metal is down $6 an ounce at $1,276…Silver has dipped 14 cents to $16.91…Copper and Nickel are both up slightly at $3.19 and $5.40, respectively…Crude Oil has jumped 38 cents to $52.28 while the U.S. Dollar Index is up one-tenth of a point at 93.90…President Trump told reporters yesterday he is “very, very close” to making his decision on who should chair the U.S. Federal Reserve after Janet Yellen’s term ends in early February (she could still be asked to continue)…the issue around who will lead the Fed has contributed to strength in the dollar and some weakness in bullion…investors seem to be forgetting that higher interest rates favored by a hawkish candidate, while temporarily boosting the dollar, would also promote higher U.S. budget deficits which historically has been Gold-bullish (increased interest costs on the debt helped push the deficit to $666 billion in the fiscal year ended September 30, the 6th highest on record and up 14% from fiscal 2016)…Gold may respond very well to tax cuts and higher interest payments on U.S. debt next year as both could accelerate the deficit trend…
2.Ā Russiaās central bank last month purchased the most Gold in nearly a year, according to Commerzbank. āBy its own account, the Russian Central Bank (CBR) topped up its Gold reserves by 1.1 million to 57.2 million ounces in September.Ā As such, the CBR purchased a good 34 tonnes of Gold last month. According to the World Gold Council, the CBR bought 129 tonnes of Gold in total in the first 8 months of the year. Thus the September purchases reported by the CBR were the highest since October 2016.ā
3. Copper is trading at near 3-year highs while Nickel is just a dime short of its late summer high, its best level since mid-2015, following strong readings on the Chinese economy and a healthy global backdrop…investors continue to monitor the Chinese Communist Party Congress which concludes this week for possible hints about the country’s future economic policies..
4. Crude Oil remains firm as top exporter Saudi Arabia repeated today that it’s determined to end a supply glutĀ while prices are also drawing support from forecasts of a further drop in U.S. Crude inventories…the Saudi energy minister today said the focus remains on reducing Oil stocks in industrialized countries to their 5-year average and he raised the prospect of prolonged output restraint once an OPEC-led supply-cutting pact ends…meanwhile, the disruption to exports from Iraq, the 2nd-largest producer in OPEC, has also encouraged the bulls and should aid the cartel’s already high compliance with the cutback agreement…Iraqi pro-government paramilitaries today launched an offensive against Kurdish troops near the Turkish frontier, pushing towards a strategic border crossing and Oil export pipeline hub that Baghdad says must come under its control…nothing like a Middle flare-up to keep Oil prices healthy…
5. The Dow rose sharply at the open on the back of strong quarterly results from 3M and Caterpillar…as of 7:00 am Pacific, the Dow is up 153 points…the TSX has added 37 points in early trading…the federal government will unveil a budget update widely expected to show shrinking short-term deficits as beleaguered Finance Minister Bill Morneau looks to turn the page on questions about his own finances…Morneau will deliver his Fall Economic Statement immediately after markets close today…the mid-year update to the March budget will reflect the improving picture for government finances, driven by surprisingly strong growth…over the past 4 quarters, the economy expanded by an average of 3.7%, the best performance in a decade…the Venture is steady at 785 as of 7:00 am Pacific…yesterday’s volume leader, Leonovus (LTV, TSX-V), is trading heavily again this morning, easing off 2 pennies to 38 cents after an apparent breakout above Fib. resistance at 35 cents…meanwhile, Fintech Select (FTEC, TSX-V) is pushing higher on strong volume after just announcing that is has completed API integration for cryptocurrency capability for the company’s existing point-of-sale (POS) infrastructure…3 weeks ago FTEC entered into a letter of intent (LOI) with Canadian Bitcoins, a national cryptocurrency dealer…the terms spelled out in the definitive agreement will form the basis for a national rollout of POS cryptocurrency purchasing and selling capability…
6. PyroGenesis Canada (PYR, TSX-V) is up another 3 pennies to 71 cents after a strong move yesterday when the company announced that it has successfully completed the ramp-up phase of its first plasma automization process…6 non-disclosure agreements have been signed with distributors and 3D printer manufacturers…3 NDA’s are being negotiated with multinational aircraft engine manufacturers…an exclusive distributorship is under negotiation in Asia…6 sample orders have been received for metal powder, 5 of which have been delivered, and the company says it has developed new and potentially “game changing” intellectual property…
7.Ā Hive Blockchain Technologies (HIVE, TSX-V) hit a new high of $3.74 intra-day yesterday and traded up to $3.71 in early trading today on continued robust volume after the company announced yesterday that it entered into a legally binding letter agreement with its largest shareholder, Genesis Mining Ltd., under which the company will finance the construction of a cryptocurrency mining data centre in Sweden…the Sweden Data Centre will be a newly constructed GPU mining facility with an anticipated completion date of December 2017…the company’s cryptocurrency mining capacity or hashpower is expected to increase by approximately 175% with this addition…the Sweden Data Centre will be constructed by Genesis for consideration of an estimated $22 million (U.S.)…as part of an agreement between the company and Genesis, the latter will be responsible for hosting, maintenance and related services for the Data Centre for a monthly fee…
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GGI – won’t it be neat to own a wafer, bar or ingot from our mine
Comment by DavidW — October 24, 2017 @ 9:13 am
GGI nice video of Sprott talking about GGI posted on you tube
https://www.youtube.com/watch?v=w1L6n-hWOSk
Comment by Gregh — October 24, 2017 @ 9:53 am
Eric Sprott on Youtube talks about GGI and Novo. Expects a big run on GGI when assays are released hopefully this week. He’s a big believer in GGI. Well worth the view.
Comment by pole — October 24, 2017 @ 11:18 am
Oh My, if you listen to that Eric Sprott interview you may need to reach for your Digitalis. Still got a 15 bagger left in it!
Comment by Marshall — October 24, 2017 @ 11:39 am
And that’s the sound of the GGI freight train
Comment by Weatheritout80 — October 24, 2017 @ 11:47 am
Thank you all at BMR and thank you to the crew at GGI! Keep up the good work! Stay safe!
Comment by toro — October 24, 2017 @ 12:40 pm
Gregh – thx for the video.. like wowswers!!!!!!!!! I cant imagine GGI at 10 let alone 30:)
Comment by Jeremy — October 24, 2017 @ 2:07 pm
Jeremy
lets split the difference $20.00 will be just fine with me, lol
Comment by Gregh — October 24, 2017 @ 2:27 pm
Jeremy if we have the goods, and it does look very positive, 30 is for openers. If this current hole hits the massive sulphide base then 30 will be cheap. I was thinking maybe $50 would be a good buyout number. This is all very new to all of us but I have 50% left and I can sit this one out.
Comment by Patrick — October 24, 2017 @ 2:28 pm
if 30 bucks is reached I will eat a hat…… seriously!!
Comment by Jeremy — October 24, 2017 @ 3:13 pm
Merge the GGI / MTS together and name it NICKEL MOUNTAIN MINING and then we’ll start over with GGI2 and MTS2 …… That will put GGI and MTS combined $1 Billion Dollars …… nuff said Farmer Tom
Comment by farmer — October 24, 2017 @ 5:29 pm
I continue to be amazed that some people seem to think that $20 to $30 may be a high buyout number and satisfied with it. It’s all about the market cap isn’t it? If GGI hits big with multiple cores, proves up size, length and tenor and matches Voisey then 50 bucks would be about 5 billion MC. Now just let your imagination run with GGI’s property, number of anomalies, size, management, the best advisor in nickel on site, Sprott pouring money in thru pp and the open market and MTS next door attempting the same result as GGI, this in my mind, if GGI is successful would make $50 giving the company away and a big steal for the buyout suitor.
Comment by Roger — October 24, 2017 @ 5:35 pm
@BMR team. Kudos on a great run with ggi. With the recent surge in shares would it be wise to lighten up at this point or ride it out. What is your crystal telling you ??
Comment by Seamus — October 24, 2017 @ 5:51 pm
Roger
to match VB GGI would have to prove up a 150 million tons of ore, that is a whole lot of ore and a lot of proving up to do, now if all 4 large anomalies A B C and D are indeed mineralized and proven to be Lightfoot’s theory of pearls on a string then yes 5 billion may be too low, but right now with not one assay that proves anything, if GGI happens to get to $20 bucks on speculation alone, I’m outta here and very happy too.
Comment by Gregh — October 24, 2017 @ 5:59 pm
I don’t think it will go to 20 bucks on spec. First set of assays soon and that imo if great will start to take the risk out of this spec and become more evident that this is for real. Then as more assays are released and continue to prove this as an economic and viable property that can be bought out, then you will start to see the price going to 10, 20, 30 bucks ( possibly pretty quick depending what those cores have to offer)
Comment by Roger — October 24, 2017 @ 8:13 pm
The way I look at it, if it goes to 20 it’s because of positive news on the cores and being derisked. Why sell at 20 with less risk and not now at 4 or 5 with your highest risk and at least walk away with your gains? Imo, if it gets to 20 it’s going much higher
Comment by Roger — October 24, 2017 @ 8:30 pm
Sprott indicated we may get some assays out this week. He stated the assays would show if GGI “hit nickel sulphides”. What did he mean by nickel sulphides? Is he talking about assays from the first 12 holes which presumably would be first through the assay lab? We already know these holes contain disseminated nickel sulphides from the visuals. Was Sprott referring to assay confirmation of the disseminated nickel sulphides from these 12 holes or does he and others think these holes contain many meters of massive sulphides? Wouldn’t that be an error to think that as GGI geologists would have stated that the holes contain long intercepts of massives and not just dissseminated sulphides from the visuals? I think the best we can expect from these assays is confirmation of the mineral content, grade and tenor of the disseminated sulphides. Will this be enough for the market?
We know that subsequent drilling to these 12 holes is “vectoring toward an interpreted massive sulphide core.” Unless we get massive sulphides (or at least visual confirmations) assays from the subsequent vectoring holes I don’t think we should expect anything significant regarding massive sulphides.
This is a long way of stating that the market may be setting itself up for a disappointment when the first assays are released. I think this upcoming NR will have to be handled with the utmost delicacy to avoid precipitating an uncomfortable selloff in the share price. Are you guys and gals reading this the same way I am? Love to hear some other interpretations or analysis of what could happen when the first assays are released.
Comment by John — October 24, 2017 @ 8:54 pm
John
I do not think that there is anyway they have results on all 12 holes yet, the first 3 holes would be my guess that we will see results on first then the others should trickle in between middle of November and end of February, Jon could probably comment better on this as far as timing, but there is no way all 12 holes have been assayed.
Comment by Gregh — October 24, 2017 @ 10:09 pm
Here is a quote from Eric Muschinskis’ recent and widely distributed report on GGI/MTS from the Gold Investment Letter blog. “Keep in mind that the run thus far hasnāt even included assays on the most recent 12 holes, which are due this coming week. I expect GGI to confirm very high grade massive sulphide intersections as the photos of core on their website show:”
Say what? Okay high grade massive sulphide intersections of 1 foot, 2 feet a meter here and there? I hope investors understand that it certainly does not appear there will be any long intersections of massives from the first 12 holes. Expectations for these holes could be somewhat misguided. Again I hope what is disclosed form the first assays will be enough to satisfy the market.
Comment by John — October 24, 2017 @ 10:15 pm
Roger,
totally get what you are saying, and believe me I’ve been doing a lot of soul searching about selling it all right here right now to lock in some fantastic gains, but I think there is still a lot of upside from here, as Jon keeps reminding us the masses have not yet learned of GGI and the potential, with more videos and news like today with Sprott and his involvement and Irwin, the more the masses are going to want to get in and drive this higher on speculation alone imo. That’s when I plan on taking some or all off the table.
Comment by Gregh — October 24, 2017 @ 10:25 pm
Thanks Gregh,
I agree with you that there is still big upside here. I still hold a very large percentage of my shares. I just hope investors realize they shouldn’t expect massive sulphides of much consequence from the first series of holes. An ideal news release would contain the assays from the holes that have been processed and a hint (core visuals?) that they are NOW into some massive sulphides of consequence. If they could give us something like that then they would mute any shareholder unrest/disappointment that the first holes lack massive sulphides.
As an ex-broker Regoci understands investor psychology better than most company presidents so I would like to think he will word the upcoming news release in such a way as to allay investors concerns about a lack of massive sulphides in the first holes.
Comment by John — October 25, 2017 @ 4:31 am
John
I agree with your post 21 and I also do not think the market expects massive sulfides in the first few holes, I do think it expects to see some good intercepts similar to the ones that were reported In The first hole that was drilled away from the known conductor and every hole after that to get better and better as they vector to the core , if we get to hole 12 and after and still no long intercepts and high grades of MS then we are in trouble as far as what the market is expecting imo.
Comment by Gregh — October 25, 2017 @ 6:05 am
I’m confused is this John from BMR posting or subscriber John.
Comment by large — October 25, 2017 @ 6:09 am
large, Greg is responding to another John (subscriber), not our TA John.
Comment by Jon - BMR — October 25, 2017 @ 6:11 am
Sprott told Eric Muschinski of the Gold Investment Letter that the deposit is more similar to the Russian deposit Norelsk than Voisey Bay. Norelsk is the largest Nickel Copper Paladium deposit in the world so he is obviously expecting very large scale here. This seems to be borne out by the GGI news release on the 13th where they state that the deposit is way larger than they had ever imagined. So it seems we will have extremely long intercepts of minable grades in all the holes. The tenor tells us that these grades will be good and the visuals support this. The current hole searching for the massive sulphide base of the system might be the hole that makes huge headlines but we have the right mineralization over a large area and we also have three similar anomolies with similar tenor for future investigation. Whether it will be GGI doing that investigation or a major who knows but the comparison to Norelsk is significant and very promising.
Comment by Patrick — October 25, 2017 @ 6:16 am
Looks like GGI wants to break the $5.00 level. “WOW”! Is all I can say.
Comment by pole — October 25, 2017 @ 7:28 am
OMG! What’s going to happen to GGI’s share price when they release assay results.
Comment by pole — October 25, 2017 @ 7:46 am
Exciting times, pole…and the same small thinking in recent months that has robbed some investors of huge potential profits in GGI is allowing for an incredible accumulation opportunity in AIS.H in the 50’s IMHO…
Comment by Jon - BMR — October 25, 2017 @ 9:15 am
Jon –
Is there a US version of AIS.H?
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Comment by lease — October 25, 2017 @ 9:38 am
Yeeeehaa… she’s a rollercoaster boys and girls.
Comment by Weatheritout80 — October 25, 2017 @ 10:50 am
Hi Jon…I know ggi and Mts have hit all time highs…I hold core positions on both. I’m curious if you think adding before the news or simply holding is the right move. Just curious on your opinion. Thanks.
Comment by Dan — October 25, 2017 @ 11:04 am