Check back later today for Daniel’s Den and visit the BMR comments section for updates and helpful information throughout the day!
1. Gold has traded between $1,231 and $1,239 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,235…the yellow metal is on track for its 4th straight weekly gain, the longest weekly winning streak since January, as Asian stocks slumped amid increasing worries over the outlook for U.S. corporate earnings and global economic growth…technically, Gold is still trying to confirm a breakout above critical resistance at $1,230…Silver is 4 cents higher at $14.65…Copper is off 2 pennies at $2.80…Nickel has tumbled 12 cents to $5.36…Cobalt is steady at $27.56 while Zinc is unchanged at $1.22…Crude Oil has retreated 37 cents a barrel to $66.96 while the U.S. Dollar Index has gained another one-fifth of a point to 96.75…the greenback and Gold are both moving in the same direction today, not a common occurrence but it’s a bullish sign for bullion…
2. The U.S. economy grew at a faster-than-expected rate in the 3rd quarter as inflation was kept in check and consumer spending surged, according to data released by the Commerce Department this morning…GDP expanded by a 3.5% annual rate, slightly higher than the consensus estimate of 3.4%…the PCE price index, a key measure of inflation, increased by only 1.6% last quarter, much less than the 2.2% increase expected by most economists…consumer spending, which accounts for more than two-thirds of total economic output, rose at a 4.0% annual rate in the 3rd quarter, the strongest rate of growth in nearly 4 years…a low unemployment rate, steady job and wage growth, tax cuts and regulatory rollbacks are all contributing to a robust U.S. economy…adding to the growth burst, federal government expenditures were up at a 3.3% annual rate in the 3rd quarter while state and local government spending also rose at a 3.2% annual clip…
3. Sun Metals (SUNM, TSX-V) resumes trading at 8:45 am Pacific after a halt 45 minutes into yesterday’s session…regulators asked for clarification and retraction of certain statements in Sun Metals‘ news release after the company reported very impressive high-grade intercepts at its Stardust Project in north-central British Columbia…diamond drill hole 18-SD-421 intersected 36.50 m grading 3.9% Copper, 4.5 g/t Au and 84.6 g/t Ag…this includes higher-grade intervals of 5.5 m @ 6.3% Cu, 7 g/t Au and 202.1 g/t Ag, and a 2nd interval of 6.8 m grading 8.5% Cu, 11.2 g/t Au and 162 g/t Ag…downhole from this intercept, drilling intersected another zone of skarn alteration with visible sulphide mineralization…assays from the lower section of the mineralized skarn extension are pending…“These kinds of grades, coupled with the multiple repeated mineralization stages readily seen in core, suggest we’re on a major mineralization fluid pathway. The textures suggest we’re still pretty distal, so there should be plenty of room to follow this high-grade skarn back towards the source of the system,” said Dr. Peter Megaw, chair of Sun Metals‘ technical advisory committee…SUNM opened strongly yesterday, jumping 7.5 cents to 23.5 cents on total volume (all exchanges) of nearly 2 million shares before the stock was halted by regulators pending “clarification” of news…
4. Goldcorp (G, TSX) posted a net loss of $101 million or 12 cents a share for the quarter ended September 30, but the company paints a much rosier picture for Q4…on an adjusted basis for Q3, Goldcorp reported a loss of 8 cents per share, 5 cents lower than analysts had estimated…Q3 production came in weaker than expected, with output and grades falling sharply at its Cerro Negro mine in Argentina…Goldcorp also struggled with Gold recoveries at Penasquito in Mexico, one of its biggest mines…production at its Musselwhite mine in Ontario and Pueblo Viejo in Dominican Republic, which it owns alongside Barrick Gold, also fell more than anticipated…Goldcorp estimates it’ll produce 2.28 million ounces of Gold this year compared with its previous forecast in July of 2.5 million ounces..its all-in sustaining cost will end up being $850 (U.S.) an ounce for the year, $50 (U.S.) an ounce higher than previously predicted…as a result, Cormark Securities has cut Goldcorp from “buy” to “market perform”…
5. Volatility continues on Wall Street…the Dow has fallen 380 points in the first 30 minutes of trading after yesterday’s strong rally…stocks were pushed lower at the open as a series of disappointing quarterly results from key tech companies overshadowed strong economic data…technically, though, watch for a potential late day reversal to the upside…in Toronto, the TSX is off 116 points while the Venture is flat at 646…Westhaven Resources (WHN, TSX-V) is up 4 cents at 73 cents…the company reported late in yesterday’s session that it has received received proceeds of $867,000 from the exercise of warrants and options…the Gowganda district in Northern Ontario is destined to heat up going into month-end on major new potential developments from Canada Cobalt’s (CCW, TSX-V) Castle Property to iMetal Resources‘ (IMR, TSX-V) Gowganda West Property…
6. Great Bear Resources (GBR, TSX-V) is raising an additional $3.5 million in a bought deal flow-through financing with Cormark Securities at $3.50 per share…the offering is expected to close by mid-November…Chris Taylor, President and CEO of Great Bear, said, “The recent discovery of a new high-grade gold zone at the South Limb, together with multiple new drill targets related to D2 folding and newly discovered ultramafic units, have led us to plan for an increased scope of exploration activity at Dixie. Proceeds of the current placement will fund this expanded program and allow thorough concurrent exploration of the high-grade Gold discoveries at the Dixie Limb and Hinge Zones”…the company is currently engaged in a 30,000 m, approximately 150 drill hole program which is expected to continue through 2018 and 2019 at its flagship Dixie Property in the Red Lake district…expanded exploration work will be informed by ongoing results, and may include additional drilling, geophysical surveys, trenching and downhole survey methods…
7. The Tax Man is a poor loser: Cameco (CCO, TSX) announced this morning that it has received notification that the Canada Revenue Agency (CRA) has filed an appeal with the Federal Court of Appeal regarding the Tax Court of Canada decision of September 26, 2018, which found in favour of Cameco for tax years 2003, 2005 and 2006. “We are disappointed that the CRA has taken this action after such a clear and decisive ruling from the Tax Court,” stated Tim Gitzel, Cameco’s President and CEO. “We will continue through the appeal process and expect the appeal to be decided in our favour as well. We are pleased that the CRA did not appeal Justice Owen’s decision that sham does not apply. We do not agree with their remaining grounds for appeal. We hope to have a reasoned discussion with the CRA to see if we can reach a resolution for all years based on the principles laid out in the ruling”…Cameco estimates it would take about 2 years for the Federal Court of Appeal to hear and decide the matter…decisions of the Federal Court of Appeal may be appealed to the Supreme Court of Canada, but only if the Supreme Court agrees to hear the appeal…if an appeal to the Supreme Court is pursued, Cameco estimates that a further 2 years would be required to receive a decision…despite CRA’s appeal, Cameco will be making an application to the court to recover substantial costs incurred over the course of this case…
Most Popular Recent BMR Posts
Video: How This Innovative Junior Is Winning The “Battery Arms Race” In Northern Ontario
“The Enemies Of Progress, The Radical Environmentalists, Are Ramping Up For A War In The Woods”
Why Are These People Smiling? – Their Stock Has Tanked 80%!
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
