Visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,320 and $1,333 so far today…as of 7:00 am Pacific, bullion is up $12 an ounce to $1,332…Silver has jumped 28 cents to $16.69…Copper is up 5 cents to $3.17…Nickel has climbed 9 cents to $6.16 while Zinc is a penny higher at $3.51…Cobalt has slipped to $36.06…Crude Oil has added 9 cents to $62.66…the IEA says global Oil demand is expected to grow significantly during the next 5 years while output from OPEC producers would rise at a much slower pace…makes one wonder why there has been no sense of urgency in Canada among our current political leaders to increase pipeline capacity, the lack of which has plunged Western Canadian Select prices vs. WTI at a staggering cost to the Canadian economy…heads need to roll…the U.S. Dollar Index continues to struggle with resistance around 90…it’s off nearly half a point to 89.59…President Trump’s hardline approach with “Rocket Man” could be paying off…the Wall Street Journal reported this morning that North Korean leader Kim Jong Un told a visiting South Korean delegation that he’s willing to hold talks with the U.S about giving up nuclear weapons and normalizing relations with Washington, and would halt weapons tests during any negotiations…
2. According to a report from S&P Global Market Intelligence during PDAC, global spending on exploration for nonferrous metals rose to an estimated $8.4 billion (U.S.) last year, up more than 15% compared with $7.3 billion (U.S.) in 2016. “Improved equity market support for explorers allowed many companies to launch or resume drill programs on their most promising projects,” said Mark Ferguson, associate research director at S&P Global Market Intelligence in a news release…the research firm noted that Gold exploration led the way with the sector spending more than $4 billion last year, up 22% compared to 2016…at the same time, the analysts noted that base metals related to the battery sector saw a significant increase in exploration capital…larger producers were more conservative in their exploration budgets as most of the spending came from junior and intermediate companies…
3. The Canadian dollar fell to its lowest level in 8 months yesterday in a downtrend that shows no signs of letting up, given the latest federal budget and how the feds with help from certain provinces are suffocating this country’s Oil and gas sector as part of a radical “climate change” globalist (not Canada First) agenda…meanwhile, as the International Agency Administration reported yesterday, the United States is set to dramatically ramp up its Oil exports with massive investment taking place in Texas in particular…if Canada doesn’t wish to get its resources to market, other countries will gladly fill the gap – that’s what happening, that’s how international markets work…it’s also a likely contributing factor in President Trump suddenly deciding to play hardball on trade with Canada…the billionaire businessman correctly senses weakness among this country’s politicians when it comes to effective economic leadership, and he’ll smartly exploit that…meanwhile, things are sliding so badly in Canada (Scotiabank says lack of pipeline capacity will cost the economy $16 billion this year) that the world’s biggest money manager – Black Rock – is saying the Bank of Canada will increase interest rates only once more in 2018, if that, due to concerns over everything from investment activity to business formation to trade and household debt…the recent federal budget was more of a social policy manifesto than a blueprint for economic success…combined with provincial policies across key parts of the country, Canada’s competitiveness vs. the United States is eroding each and every day…Canadians of all political stripes should be deeply concerned about that…
4. Jason Kenney, Alberta’s Opposition leader and candidate for Premier, says his government would ensure “serious consequences” for British Columbia if it blocks Kinder Morgan’s Trans Mountain pipeline expansion…Kenney said yesterday he would be prepared to stop permits for the shipment of Alberta Oil to B.C. through the existing Trans Mountain line, which pumps 300,000 barrels a day of Oil, gasoline and other petroleum products to Metro Vancouver. “If British Columbia is unwilling to help us export Canadian energy, then I would ask: Why should the NDP government benefit from shipments from Alberta? Thousands of British Columbia drivers are going down to Bellingham and Washington state to fill up their gas tanks. That situation, unfortunately, would get a whole lot worse without Alberta Oil.”
5. The Dow is up 48 points through the first 30 minutes of trading after yesterday’s big turnaround…in Toronto, the TSX is 24 points higher while the Venture is gaining momentum with a 10-point gain to 849…it appears the Index today will confirm an important breakout above resistance in the low 830’s and a downtrend line that goes back to mid-January…the Venture’s performance during PDAC this year is opposite to what it was in 2017 when the Index slumped more than 3%…marijuana stocks are strong with Cronos Group (CRON, TSX-V) up another 52 cents on the Venture at $13.15…keep an eye on Pascal Biosciences (PAS, TSX-V) which continues to trade heavily…the focus at PDAC is more on growing momentum in base metals as well as Cobalt with much less interest in Gold and Silver, though that’s likely a sign that now is one of the best times for patient investors not looking for instant gratification to be building positions in the precious metal space…MGX Minerals (XMG, CSE) has released a Preliminary Economic Assessment for its Driftwood Creek Magnesium Project…highlights include a pre-tax NPV @ 5% of $529.8 million (CDN) and an IRR of 24.5% with a 3.5-year payback…initial capital costs would be $235.9 million…the PEA presumes a conventional quarry pit operation with a process plant and a furnace/kiln combination to produce a saleable Dead burn magnesium oxide (DBM) product…the plant would also have the ability to produce Caustic-calcined magnesium oxide (CCM) as a separate salable product…
6. Marathon Gold (MOZ, TSX) has drilled 20 m grading 3.16 g/t Au in step-out drilling at its Marathon deposit situated in the company’s 100%-owned Valentine Lake Gold Camp in Newfoundland…step-out drill holes along the northeast end of the deposit have intersected an abundance of en-echlon stacked QTP-Au veining, thereby pushing the extents of the main mineralized corridor further along strike to the northeast and also further expanding the resource within the boundary of the open-pit…meanwhile, drill holes in the south-central portion of the mineralized corridor have penetrated along the outer edges of the corridor; succeeding in discovering significant new QTP-Au veining. “The Marathon deposit keeps growing in size as continued drilling intersects QTP veining and high-grade Gold along strike to the northeast as well as along the outer margins of the mineralized corridor,” stated Phillip Walford, President and CEO. “We are excited by the continued success of our exploration drilling as we also progress with our PEA which will be released in Q2 2018.”
7. Sean Roosen, CEO of Osisko Gold Royalties (OR, TSX), bemoaned the lack of investor interest in mining, the dearth of investment over the past few years in exploration projects, skyrocketing capital costs and, in particular, the rapid-fire rise of alternative sectors such as Bitcoin and marijuana, which have captured investors’ attention, in an unscripted and candid keynote speech at PDAC. “People used to invest in prospectors and exploration because they wanted to take risks and they wanted to have fun,” Roosen said. “That money has now moved over to cryptocurrency and weed stocks.” He also noted that pot companies have gobbled up much of the speculative equity capital that has been raised in Canada over the past few years. “Weed stocks kind of ate our lunch,” Roosen said…he predicts the future of the industry will see companies increasingly teaming up to share the risk…
Most Popular Recent BMR Posts
Venture Locked and Loaded For Powerful Q1
The Template For The Next 10% Stake In Garibaldi Resources
The Nickel Mountain Magma Highway
Two Big Plays Emerge in B.C., Setting The Stage For A Summer To Remember
How To Bring A Junior Resource Market To Life!
Northern Ontario Cobalt Junior Attracts Interest From Metal Trading Companies
The Most Important Venture Development Since The New Bull Market Began
Marathon Gold (MOZ), MOX is Morien Resources.
Comment by Gojira — March 6, 2018 @ 9:26 am
Hey BMR have you had a chance to check out UAV at pdac?
Comment by Shawn — March 6, 2018 @ 12:11 pm
Thanks, Gojira…that was my typo (not enough sleep last night, I guess!)…our administrator just fixed it to MOZ…
Comment by Jon - BMR — March 6, 2018 @ 12:26 pm
The Show Must Go ON !!!! Does GGI / MTS have to continue to fall ?? Having expected the sp on GGI to be trading near $2.70 Friday previous, and the PDAC Show showing the World what Garibaldi is all about, only to see it sell off to $2.20 ?? CCW also wallowing under .40 and AIS looking like it had no reason to be trading over $1.40 just a few weeks ago. My my ….. swapping out some of these to buy more GGI seems the only sensible thing to do. MTS also a good buy here around $1.02 Farmer Tom
Comment by farmer — March 6, 2018 @ 2:41 pm
Hey Jon make sure to drink some vodka to make sure you get some sleep!!
Comment by BigBid — March 6, 2018 @ 3:51 pm
Last week on BNN business news week, Andrew Mac Creath (sp?) interviewed an English stock analyst from the London Stock Exchange who threw up a massive road block for the long term holding of any lithium stocks. The reason… there is 400 years of potential supply in the world vis. say copper with only a 30 year supply. Lithium is not used much and so many companies are vying for a position. This of course does not take away from capitalizeg on a short term stock play. To me this is a red flag, do your own D.D.
Comment by richard — March 6, 2018 @ 7:22 pm
Big news. Gary Cohn out… https://www.cnbc.com/2018/03/06/gary-cohn-plans-to-resign-as-trumps-top-economic-advisor-new-york-times.html
Comment by BigBid — March 6, 2018 @ 7:29 pm
Jon just going through Dr Lightfoot’s videos from PDAC again and trying to get my head around what he is saying in layman’s terms. The two new plates, HC 1&2′ are giving EM readings in excess of 10,000 siemens. These type of readings are way too high for disseminated sulphides and are in the range of massive sulphides and high grade. Now I know he cannot say outright that these two plates are nickel/copper massive sulphides but is there any other logical explanation for these readings.?
Comment by Patrick — March 7, 2018 @ 1:57 am
We’ll have A LOT more on the incredible geophysics angle at Nickel Mountain very shortly, Patrick…
A couple quick things: GGI has already shown proof of concept with regard to geophysics (VTEM and borehole EM) at Nickel Mountain, and that’s huge…going back to last year, of course, everyone was having similar discussions – what could Anomaly D represent? We came to the conclusion, based on our research and interviews with multiple experts, that it had to a massive sulphide body, and indeed that turned out to be the case – and with world class grades! Fortunes have been made in the market as a result. Geometric error, graphite, barren sulphides would be the only possibilities for HC-1 and HC-2 (or other conductors) not proving out. HC-1 and HC-2 are exceptionally strong and have scale, beyond anything seen so far at Nickel Mountain. In my view they are vectoring in to something huge, and that’s certainly the feeling among others who have studied Nickel Mountain intensely. There are never any guarantees in this business, but we have seen what has happened to date. Alan King has a high confidence level in these conductors. There’s also additional evidence that HC-1 vectors right into the discovery zone, that’s powerful.
Geophysics is playing a major role in the delineation of the E&L Nickel Mountain deposit and what could turn out to be the Nickel sulphide discovery of a generation at the E&L and along the Nickel Mountain trend. Historic geophysics data alone, in particular the gravity signatures, suggest there is more than enough volume of mafic rock to produce multiple Nickel sulphide deposits along the western margins of the Eskay Rift. This is all coming together in an extraordinary way with the world’s top Nickel sulphide experts (geologists and geophysicists) pulling together massive amounts of data.
Comment by Jon - BMR — March 7, 2018 @ 3:35 am
Another fascinating and entertaining day in Trump World, BigBid. It’s not like politicians across the globe over the last 20 years haven’t really messed up the steel market – huge overcapacity problems and policies that have flopped. Interesting article by Terence Corcoran in today’s Financial Post, “Why Trump is on the right side of a steel trade war”.
Comment by Jon - BMR — March 7, 2018 @ 4:27 am
BMR Wednesday content alert: No 7 @ 7:00 this morning as Jon is conducting interviews and in meetings at Convention Center all day beginning early this morning…Daniel’s Den as usual later today…watch for BMR Morning Alert tomorrow followed by 7 @ 7:00…
Comment by BMR — March 7, 2018 @ 4:32 am
I’ll check out that article thanks Jon.
Does this article sum up the mood at PDAC in your opinion?http://www.kitco.com/news/2018-03-05/Gold-Silver-Take-Back-Seat-To-Base-Metals-Cobalt-Zinc-At-PDAC-2018.html?sitetype=fullsite
Comment by BigBid — March 7, 2018 @ 5:11 am
Farmer t, your suggestion for selling ais at these prices and buying other stock is completely crazy……..especially when you thought holding this exact same company over a 1.40 was a great move, you know exactly what’s going on here, PAPER and lots of it…. I won’t be a bit surprised if the company has a plan here! Buying at these prices should be preached here BY BMR…..patience can be a very hard thing at times, but this is one of those times my friend……I’m buying at these levels!
Comment by Gregory — March 7, 2018 @ 6:34 am
I didn’t see any more information on BMR’s interview with Frank, or updates on CCW that were promised for last weekend (https://lpojrdpg.elementor.cloud/7-700-315/).
This is not helping my confidence in the stock.
Comment by Matt — March 7, 2018 @ 7:38 am
I know you guys are extremely busy and thanks in advance for the coverage…just a bit disheartening to see such LOW volume on our fav plays.
Comment by BigBid — March 7, 2018 @ 7:55 am
Jon,
last week you mentioned we will see CCW, Franks video by monday… is there a reason why it was pushed back? perhaps because of PDAC or waiting for a betting time to release it when CSR chart is in a better position?
Comment by TradingAgent — March 7, 2018 @ 7:59 am
I posted this before, but I guess it didn’t go through the first time:
‘I didn’t see any more information on BMR’s interview with Frank, or subscriber updates on CCW that were promised for last weekend (https://lpojrdpg.elementor.cloud/7-700-315/).
This is not helping my confidence in the stock.’
I’ll add to that, a concern of mine is that low volume and cheap dividend shares drag us back into the low 30’s/20s and keep us there, then CCW ends up requiring more share dilution to complete dewatering of levels 2 through 11. Did Frank mention to you what he expected the dewatering to cost?
Comment by Matt — March 7, 2018 @ 10:13 am
BigBid, the thing you have to keep in mind regarding PDAC week is that a lot of investors who would normally be active in the market or certain stocks are not as active – they’re at PDAC, they’re busy, they’re at meetings, they’re not sitting in front of their computer screens…nearly 30,000 investors here…many won’t be back to their normal routines until Friday/Monday…
Comment by Jon - BMR — March 7, 2018 @ 1:41 pm
Let me try to understand this, Matt…you say it’s not helping your confidence in the stock (CCW) because you don’t see any more information on BMR’s interview with Frank or updates on CCW…wow, that’s rather bizarre…yes, I have completed an interview with Frank and, no, we haven’t posted anything yet as hoped because we’ve been extraordinarily busy at PDAC working literally around the clock (for our subscribers) since last weekend with right now at 5 pm being my first 5-minute break today to even look at my laptop…so, on the positive side, you have something to look fwd to…have you ever been to PDAC before?…do you know what it’s like here?…
Comment by Jon - BMR — March 7, 2018 @ 1:52 pm
All good Jon. Thanks. Watched numerous videos of some big names saying this has been the best PDAC in their careers. Guessing must be the same for you.
Comment by BigBid — March 7, 2018 @ 1:55 pm
I would say it has been the best PDAC in quite a few years, BigBid, going back to 2011 by multiple measurements…that’s a good sign.
Comment by Jon - BMR — March 7, 2018 @ 2:01 pm
Take some time for yourself Jon, you’re the hardest worker I know. Also the best stock picker I have ever seen.
Comment by murf — March 7, 2018 @ 2:05 pm
Gregory ……. this is my own suggestion for my personal Accounts …… there may be lower prices yet for AIS and at this point, Id rather be buying GGI and MTS because it’s fairly clear imho, that these 2 Stocks will outperform AIS ……. I can’t stand by idly knowing that GGI shares can be accumulated under $2.35 and with the Millions of shares of AIS floating around, it is going to take some big News and some big Trading sessions to get this sp back up anywhere near .70 and for this reason, I prefer GGI !! Let’s just say .34 – .70 – 1.40 versus 2.20 – 4.40 – 8.80 ??? Sounds nutty but I like my chances with Garibaldi. Farmer T
Comment by farmer — March 7, 2018 @ 4:13 pm
BMR:
CCW chart?
Hope we don’t break .35!
Thoughts.
Comment by GoldenFalcons — March 7, 2018 @ 6:06 pm
Jon, I don’t consider it bizarre at all. I have been very happy with both the fundamental and technical information BMR has provided in the past; I am not challenging that, as even in the stocks that have not performed well to date, you’ve clearly laid out the facts you believed made a strong case for them. That said, I was hoping that after I and a few others asked you about it, you would follow through on posting information from that interview. If you were too busy, why not just say so instead of avoiding any mention of it at all? Nobody here would hold it against you.
I asked you about CCW last week in the link I included above, and I considered asking again after it was left out of the sizzler but held off until today–even asking a couple other folks to hold off on asking earlier in the week–*specifically* because I knew you were busy at PDAC (FYI I did attend once in the past and even then it was both hectic and expensive). My issue is that questions about things like timelines aren’t just coming from me. The question has also been asked on Canada Cobalt Works’ forum, though it wasn’t answered there. Meanwhile, yes, the low volume and asks turning up from 2.5 million dividend units (warrants at $0.10) do concern me. Why shouldn’t they? I don’t know what the plan is to chew through them.
With regards to CCW’s cash position, flyinthruu corrected my misunderstanding on that earlier today, so I’m good there.
Comment by Matt — March 7, 2018 @ 7:06 pm
Looks fine, GoldenFalcons. Just returned from PDAC. We’ll have an update on CCW by tonight.
Comment by Jon - BMR — March 8, 2018 @ 4:59 am
Matt, this is my last comment on this issue – I believe I indicated in the comments section last week that I had just completed an interview with Frank (re: CCW), and I hoped to post that, or the first excerpt from that, by this past Monday. We haven’t yet because my schedule changed and I just returned from 5 days in Toronto at PDAC. So we’ll get to it as soon as we can. My apologies that we haven’t gotten this up as quickly as we were intending to.
Comment by Jon - BMR — March 8, 2018 @ 5:09 am
Ah, okay, looks like my comment did get posted. I don’t want you to misunderstand the tone of my initial question. It got double-posted for some reason, and I only meant to ask it once. My concern was that I didn’t see info about expected timelines from Canada Cobalt or BMR, and low volume has also been a concern of mine since mid-January.
Like I mentioned, I’m very happy with the work Bullmarketrun does and don’t think any apology is necessary on your part.
Comment by Matt — March 8, 2018 @ 5:38 am
Jon:
Thank you.
Comment by GoldenFalcons — March 8, 2018 @ 5:47 am