Check back later this morning for today’s BMR Morning Market Musings.
1. Gold traded as high as $1,180 overnight and is up $13 an ounce at $1,176 as of 7:00 am Pacific…bids got supported when the ADP employment report, released at 5:30 am Pacific, showed private employers in the U.S. added only 153,000 jobs last month, below the expected 170,000…as per John’s New Year’s Day 1-year daily chart, Gold’s Fib. resistance levels on the path back to $1,200 are $1,169 and $1,195…
2. This has been a big week for both Platinum and Palladium…Platinum has jumped another $29 an ounce to $970 this morning while Palladium is $3 higher at $741…Palladium has surged 9.3% this week while Platinum is up 7.7%…
3. Oil is pushing higher again after a sudden reversal to the downside toward strong support on a volatile first trading day of 2017…WTI is up 58 cents at $53.84 as of 7:00 am Pacific, thanks in part to U.S. dollar weakness…the recent OPEC deal – the first of its kind in 8 years – has failed to quell skepticism that Oil producers would make good on their promises to limit production, given their past records of cheating on quotas…this time, however, the cartel has set up a monitoring committee to keep producers in check…the group is reportedly holding a 2-day meeting on January 21 and 22 to assess the compliance situation…
4. The Venture cut through 784 resistance like a knife through butter at the open this morning and is up 12 points at 793 as of 7:00 am Pacific…the 2nd leg of the Venture bull market does indeed appear to be in progress after a 16% correction ended December 20 just 3 points above major support at 708…
5. Dowa Metals, Japan’s largest Zinc smelting company, has exercised its option to participate as a partner in the further development of Constantine Metals‘ (CEM, TSX-V) Palmer VMS Project in Alaska…Dowa has completed its $22 million (U.S.) earn-in and a JV has been formed with CEM owning a 51% participating interesting and Dowa owning a 49% stake…Palmer is one of the best located VMS/Zinc projects in terms of getting concentrate to a hungry Asian market…in addition, CEM still holds a package of high-grade Gold properties in Ontario after recently selling non-core Gold assets there for $4.5 million cash…CEM is up half a penny at 11.5 cents as of 7:00 am Pacific…
6. In August, GoldQuest Mining (GQC, TSX-V) announced it had commenced a 40-hole, 10,000-m drill program at its Tireo Project south of its Gold-Copper Romero deposit in the Dominican Republic…today, buried in a news release, GQC revealed that by the end of December it had completed 13 of the planned 40 holes…GoldQuest says it’s currently moving the drill to the next target area and drilling is expected to recommence next week…results from Target A, released on Halloween, were frightful, and results from Target B are expected in the near future…elsewhere in the Tireo Gold Camp, Precipitate Gold has been showing more momentum and reported encouraging visuals from 4 holes completed in December at its Ginger Ridge discovery…the drill program has been expanded from the original 10–12 holes with initial results pending…
7. The BMR Top 50 Opportunities List finished with a gain of 118% at the end of 2016, vastly outperforming the markets…by comparison, for the same time frame after the Top 50 List was unveiled in early December 2015, the Venture surged 47%, the TSX climbed 14.4%, the Dow was up 10.7% and the NASDAQ added 4.7%…Gold rose 6%…the top performing individual stock in 2016 on the Top 50 List was Cordoba Minerals (CDB, TSX-V) which soared 461%…the best-performing resource stock on the Top 50 List for the 4th quarter of 2016 was Garibaldi Resources (GGI, TSX-V) with a 93% gain following confirmation of the first magmatic Ni-Cu-PGE-AU-Co massive sulphide system in northwest British Columbia’s prolific Golden Triangle…the top non-resource plays on the Top 50 List for the 4th quarter were Cannabix Technologies (BLO, CSE), up 138%, and Canopy Growth (CGC, TSX-V), up 126%…check back for more details in a complete report to be posted within the next couple of days…
OK BMR minds…Terranga Gold TGZ hold or sell?
Comment by DavidW — January 5, 2017 @ 7:34 am
Will have to think about that one for a bit, DavidW, though the half billion shares outstanding would normally turn me off…
Interesting what the media chooses to focus on…take a look at CNN.com and FOXnews.com this morning…can’t help but think, if the victim in that despicable video was a minority and anti-Obama or anti-Clinton comments were being made during the course of the live Facebook video torture, they would have slapped it front and center on their homepage…CNN downplayed it to focus instead on Russia…
Comment by Jon - BMR — January 5, 2017 @ 7:55 am
WOW. Venture is ripping it up. Blew by resistance of 780pts
Comment by tony t — January 5, 2017 @ 7:56 am
Is there anything to report about the recent project acquisition by ABN?
Comment by maikenders — January 5, 2017 @ 8:25 am
We’ll have more on ABN in due course, maikenders…its key driver is going to be the Forrest Kerr Project in the Heart of Gold Camp, and with that there’s great upside this year…
Comment by Jon - BMR — January 5, 2017 @ 8:44 am
DavidW — will look into answering that question for you on Teranga. At first blush, its priced ok on an “production” basis, about $2,700 (we’d seen M&A deals done last year between $3 and $4,000). Strip ratio seems unusually high. And they recently had to raise $60M due to lack of profitability, yet they say their AISC is below $1,000. It wouldn’t be my top choice, but with Gold up Teranga will tag along (you’d hope). I’ll give their recent conference a listen and report back. In my view K92 (KNT) will emerge as a favorite gold mining stock.
Comment by daniel — January 5, 2017 @ 9:27 am