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1. Gold has traded between $1,294 and $1,304 so far today…as of 7:00 am Pacific, bullion is unchanged at $1,296…Gold imports by the world’s 2nd largest consumer dropped for the 5th consecutive month in May to 48 tonnes, according to Thomson Reuters-owned metals consultancy GFMS…yellow metal prices hit a 21-month high in India last month which restrained retail demand for Gold jewelry…Silver has added 13 cents to $16.77…the Gold-Silver ratio has dipped to 77.3, its lowest level in several months…Silver’s recent outperformance vs. Gold reflects the risk appetite of market participants and is consistent with the sharp rise in base metal prices…Copper has added another 4 pennies to $3.28…Nickel – continuing its hot run – has pushed 4 cents higher to $7.10 while Zinc is flat at $1.45…Crude Oil (WTI) is up 63 cents at $65.36 while the U.S. Dollar Index has retreated another one-fifth of a point to 93.31…the number of Americans filing for unemployment benefits fell more than expected last week, pointing to a further tightening in labor market conditions…the robust labor market and firming inflation have cemented expectations the Federal Reserve will raise interest rates next week (policy meeting is Tuesday-Wednesday)…President Trump, heading into this weekend’s meeting of the Group of Seven industrialized nations in Quebec, has signaled his intention to continue pursuing an aggressive trade agenda… the “world trade system is a mess,” Trump’s top economic adviser, Lawrence Kudlow, told reporters yesterday…“Trump is trying to fix this broken system”…the President comes to Canada focused like a laser beam on economic issues – trade, tax cuts, regulatory rollbacks – while Prime Minster Trudeau continues to push a reckless environmental and social agenda…the last time the 2 countries were on such divergent paths, not surprisingly, was in the early 1980’s when Pierre Trudeau was PM and Ronald Reagan was President, and we all know how that turned out…
2. Oil prices have firmed up on fresh concerns about a plunge in exports from Venezuela, helping to lower the odds of another weekly loss for Crude futures…Venezuela, which faces the threat of U.S. sanctions and is in the midst of a major economic crisis (isn’t socialism great!), is nearly a month behind delivering Crude to customers from its main Oil export terminals, according to shipping data, and chronic delays and production declines could breach state-run PDVSA’s supply contracts if backlogs are not cleared soon…
3. The Dow is up 105 points through the first 30 minutes of trading…the big news of the day so far came when Commerce Secretary Wilbur Ross said the U.S. has struck a deal with Chinese telecom giant ZTE to end crippling American sanctions…the deal includes a $1 billion penalty against ZTE and a U.S.-chosen compliance team to be embedded at ZTE…Berkshire Hathaway Chairman Warren Buffett says he expects the U.S. economy to perform strongly for years to come…“Right now, there’s no question: It’s feeling strong. I mean, if we’re in the 6th inning, we have our sluggers coming to bat right now,” Buffett said in an interview on CNBC…in Toronto, the TSX is up 25 points while the Venture has slipped 2 points to 773 as voters decide today on a new government in Ontario, a critical election for the entire country…Premier Kathleen Wynne, thankfully, has already conceded defeat after years of creeping socialism, exploding debt and general Liberal mismanagement and corruption…the Party could lose every seat it holds as justice is served…Ero Copper (ERO, TSX) is up strongly in early trading, following through on yesterday’s advance after news that hole FVS-212 at the company’s Vermelhos mine in Brazil intersected 39.8 m grading 5.57% Copper including 21.9 m grading 9.4%…this hole is the first to test the south extension of the main Vermelhos deposit and was drilled approximately 25 m south of the main Vermelhos orebodies…the newly identified extension remains open to the south…meanwhile, at the Pilar mine, hole FC4884 intersected 18 m @ 6.28% Cu in a down-dip extension of Copper mineralization on the East Limb of the mine with the zone remaining open along strike and at depth…Copper Mountain Mining (CMMC, TSX) has commenced drilling at the New Ingerbelle deposit at the Copper Mountain mine near Princeton, BC…this Phase 2, 10,000-m drill program is following up on a successful 2017 program that validated historical data and confirmed that mineralization is open both laterally and at depth…
4. Just as the stock was starting to gain some fresh traction, Aphria (APH, TSX) announced a $225 million bought deal this morning at $11.85 per common share…in the event the overallotment option is exercised in full, the aggregate gross proceeds of the offering will be $259 million…the company intends to use the net proceeds to finance its state-of-the-art Extraction Centre of Excellence, announced yesterday, in addition to its recently announced capacity increase at Aphria Diamond…the company will also use the proceeds for construction of additional cannabis production facilities globally, in both foreign and Canadian jurisdictions where cannabis is legally permitted, as well as evaluating strategic acquisitions, investments and other industry-related transactions…
5. Aurora Cannabis (ACB, TSX-V) Inc. and Capcium Inc. have signed a strategic agreement to produce high-quality cannabis-based softgels for patients…additionally, Aurora has acquired a 19.99% ownership interest in Capcium by way of a non-brokered private placement for consideration of $10 million…Capcium, a privately owned Montreal-based global leader in softgel manufacturing, has emerged as one of the leading manufacturers in the cannabis industry…production of high-precision dosage controlled softgels is an extensive and complex process…Capcium, through its pharmaceutical and encapsulation experience, has developed expertise that is ready to be applied to the cannabis industry and deliver high-volume production capacity…the company intends to use the proceeds from the Aurora investment to expand its cutting-edge cannabis softgel manufacturing business, which includes the construction and operation of a large, state-of-the-art facility, to be completed in Q4 2019…
6. Lupaka Gold (LPK, TSX-V) has sampled 9.2 g/t Gold equivalent over a strike length of 130 m, with an average width of 4.2 m, on newly developed production sublevel 3430 at the company’s 100%-owned Invicta Gold Project in Peru…the results demonstrate the continuity of the Atenea vein mineralization both up-dip from the 3400 Level (estimated grade there is 8.12 g/t AuEq) and along strike…a recently announced PEA at Invicta outlined positive project ecnomics targeting an initial mining rate of 350 tonnes per day over a 6-year mine life, resulting in positive near-term annual cash flow of $10.2 million (U.S.) pre-tax…by utilizing the existing infrastructure, the project requires very little upfront capital and illustrates a payback of less than 1 year…
7. What kind of country has Canada become when the CEO of Suncor (SU, TSX) says that indigenous ownership of the Trans Mountain expansion might help blunt opposition to the contentious pipeline project?…the reality is, it doesn’t matter who owns this pipeline – climate change extremism has reached such a ridiculous feverous pitch in Canada that another pipeline will never get built in this country until there is major political change and a massive shift in thinking by the masses…several First Nations groups have floated the idea of buying an ownership stake in the project since the federal government announced it would acquire the existing line for $4.5 billion…Suncor CEO Steve Williams points to the company’s partnership formed last year with two indigenous groups in Fort McMurray (Fort McKay and Mikisew Cree First Nations) who bought a 49% stake in a Suncor Oil-storage facility…to finance the deal, the groups raised $545 million in Canada’s biggest-ever First Nations-led bond issue…Williams says ownership in Trans Mountain could complement engagement efforts undertaken by proponent Kinder Morgan…the company had touted benefit agreements with 43 First Nations along the route from Edmonton to Burnaby before it sold the project last month…still, many First Nations groups still oppose the $7.4 billion project along of course with the radical, obstructionist B.C. government and others…
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Hi guys, not trying to spam on GTT. Just puzzled with another pullback just when it seems ready to bust through. Since the market has priced in drilling and what not, what’s it going to knock down these walls? I know the interest behind the scenes for GTT is very strong.
Comment by BigBid — June 7, 2018 @ 9:15 am
MOON looking like it wants to go higher here soon. Get in before the permits are received and the drills are turning, IMHO. CCW looking stronger again. It may try another run at the 48-50 cent range very soon.
Comment by ED — June 7, 2018 @ 9:22 am
Massive bids showing up on AIS….
Comment by BigBid — June 7, 2018 @ 12:48 pm
Jon, do you think MOON will have to raise any money for their drill program once permits are granted. Last financials show $666,000 in cash. Will that be enough for what they plan to do? Thanks
Comment by Danny — June 7, 2018 @ 2:56 pm
Cheap to drill there, Danny, so they don’t need money to commence drilling. Keep in mind, GGI started last year with just a million in the till and look what happened! At some point during 2nd half of year, MOON will raise some more but at significantly higher prices. They have strong backers.
Comment by Jon - BMR — June 7, 2018 @ 3:18 pm
Excellent, thanks for the reply Jon.
Comment by Danny — June 7, 2018 @ 4:12 pm
Progressive Conservative majority government in Ontario…great news for mining sector vs.what the alternative would have been…
Comment by Jon - BMR — June 7, 2018 @ 6:19 pm
Progressive Conservative majority government in Ontario is a big win for Canada. Congratulations to the good people of Ontario for ending 15 years of liberal/socialist misrule!
Next up will be the Alberta provincial election in 2019 where it is expected that the United Conservative Party will crush the NDP socialists.
Hopefully the Green Monster/NDP coalition in BC will collapse sooner than later and we get an opportunity to kick those wacky enviro/socialists out as well.
Subscriber John
Comment by John — June 7, 2018 @ 7:44 pm
Go CAPS!!!
Comment by flyinthruu — June 7, 2018 @ 7:53 pm