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1. Gold has traded between $1,208 and $1,217 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,212…the support band between $1,204 and $1,194 has held nicely so far…Silver is flat at $14.01…base metals are inching higher today…Copper is up 4 pennies at $2.81, Nickel has gained 6 cents to $5.14 while Zinc has added 3 pennies to $1.20…Cobalt is 34 cents higher at $23.13…Reuters reported this morning that China has delivered a written response to U.S. demands for wide-ranging trade reforms, a move that could trigger more formal negotiations to resolve a withering trade dispute between the world’s top economies…President Trump has imposed tariffs on $250 billion of Chinese imports to force concessions from Beijing on the list of demands that would change the terms of trade between the 2 countries…China has responded with import tariffs on U.S. goods, but the Chinese will never win a tariff battle against the United States…Trump is expected to meet President Xi Jinping on the sidelines of a G20 summit in Argentina at the end of this month…Trump has repeatedly railed against Beijing over intellectual property theft, industrial subsidies, Chinese entry barriers to American businesses and the huge U.S. trade deficit with China…Crude Oil is trying to stabilize with WTI up 26 cents at $56.51…the U.S. Dollar Index, meanwhile, is flat at 96.99 after a mixed bag of U.S. economic data this morning…overseas, 2 British Cabinet ministers have resigned today in opposition to the Brexit deal struck by Prime Minister Theresa May with the EU – a major blow to her authority and ability to get the agreement pushed through Parliament…
2. Did President Trump outsmart the Saudis?…Oil market analysts say it now appears that Trump hoodwinked Saudi Arabia, fooling the regime into pushing the Oil market into oversupply and sparking a roughly 25% drop in Crude prices since the beginning of October…Trump, who re-emphasized his desire for low Oil prices in a news conference a week ago (“I don’t want to drive Oil prices up to $100 a barrel…because I’m driving them down”) has accomplished his goal of lowering energy costs for Americans while Oil-dependent nations like Saudi Arabia and others face the prospect of shrinking revenues…analysts say Trump essentially bamboozled the Saudis by threatening for months to implement sanctions against Iran so strictly, the Islamic Republic’s exports would go into free fall…but when the administration’s deadline for Oil buyers to quit Iranian Oil arrived on November 4, Trump instead dolled out 6-month exemptions to some of the country’s biggest customers…now that Trump has succeeded in bringing Oil prices down, let’s see if he starts taking aim again at the rising U.S. dollar which he helped “talked down” early in the year…
3. Atlantic Gold (AGB, TSX) has recorded net income of $8 million or 3 cents per share for Q3, lifting net earnings for the first 9 months of the year to $19 million…the company remains on track to deliver on its annual guidance of producing 82,000 – 90,000 ounces of Gold at its Moose River consolidated Gold mine in Nova Scotia with all-in-sustaining costs between $675 and $735 (CDN) per ounce…during the 3 months ended September 30, a total of 581,129 tonnes of ore was processed at an average grade of 1.54 g/t Au and average process recovery of 95.5% which exceeded the design process recovery of 94.0%…investors should keep an eye on Atlantic Gold’s well-funded neighbor, MegumaGold (NSAU, CSE), which has built a major land position in the area and has aggressive exploration plans…“We believe potential similarities to Nevada’s Carlin Gold district may be present within Nova Scotia’s Meguma Gold district, and continue to be excited by the exploration potential available to our well-financed operations,” stated MegumaGold CEO Regan Isenor…NSAU, trading at 13 cents, has 63 million shares outstanding and approximately $6 million in working capital to fund a near-term initial drill program…
4. “Progressives” in Canada, wedded to climate change extremism, have created a made-in-Canada energy crisis: Now, Cenovus Energy (CVE, TSX) CEO Alex Pourbaix thinks current politicians who helped create the problem can actually fix it???…Pourbaix says Alberta is facing a “wholesale economic catastrophe” and is urging the provincial government to intervene directly in the market to cut the province’s Crude production and boost severely depressed prices…Pourbaix says current conditions justify the Alberta government departing from free-market principles and ordering companies to reduce their production of Oil…any move by Alberta to enact limits on the amount Oil producers can send to market would represent a major strategic shift in a province that historically has promoted free enterprise and open competition…however, Pourbaix stated: “We really are in the middle of a full-blown economic crisis. I don’t take any pleasure in suggesting we should have government intervention, but we are dealing with a complete failure of the market”…yes, the Oil sector in Canada, unlike its American counterpart, is in state of crisis but this is directly related to a failure of government – policies at the provincial and federal levels that have literally strangled the industry and sent Canadian Crude prices far below where they should be…Canadians across the country should be outraged…the same career politicians who created the problem are expected to fix it?…
5. Good grief: Federal Natural Resources Minister Amarjeet Sohi said in Calgary yesterday that he shares Albertans’ “frustration” at billions of dollars being lost to the Canadian economy due to Oil-price discounts linked to export pipeline capacity constraints…however, he says Ottawa is focused on finding long-term solutions by getting approval for new export pipelines such as the Trans Mountain expansion project it bought in August and by pursuing Bill C-69 to reform the National Energy Board (unfortunately, the Liberals’ Bill C-69 will only make matters worse)…following a speech at an Energy Council of Canada forum in downtown Calgary, Sohi told reporters the key to building pipelines is building trust in regulatory processes and engaging affected parties early on so that approvals aren’t overturned (isn’t that funny, another failed politician is lecturing Canadians on “the key to building pipelines”)…
6. The Dow is down by triple digits for the 5th session in a row…as of 7:00 am Pacific, the Dow is off 111 points…in Toronto, the TSX is 10 points lower while the Venture has rebounded 2 points to 621…Cannabix Technologies (BLO, CSE), developer of the Cannabix Marijuana Breathalyzer for law enforcement and the workplace, announced this morning that it has engaged a leading B.C. based engineering and design firm for the development of a handheld breath collection device for its marijuana breathalyzer unit…MistyWest Engineering of Vancouver has started work on a portable handheld device that will provide for easy collection of breath samples at the point of care…MistyWest is a highly regarded engineering and design firm that has worked on several high profile and innovative product development projects in North America, demonstrating the ability to complete projects rapidly…Cannabix will use the new handheld unit for the collection of multiple samples from many users under a variety of conditions, quickly…
7. GFG Resources (GFG, TSX-V) and its partner, Newcrest Resources, a wholly-owned subsidiary of Newcrest Mining, have elected to suspend the Rattlesnake Hills drill program due to deteriorating field conditions…1,000 m of drilling was completed in 2 drill holes which did not reach their intended target depth and will be left open for completion in 2019…Brian Skanderbeg, GFG President and CEO commented, “Our timeline to complete drill testing of the deep porphyry and greenfield targets during the option period with Newcrest remains intact. We look forward to working with Newcrest over the winter months to strengthen our understanding of the North Stock system as well as the entire district and to re-start the drill program in July 2019“…for the remainder of 2018 and 2019, GFG and Newcrest will continue to work together on re-modeling the district and deposit-scale geological and geophysical data, including VTEM, CSAMT, gravity and magnetic data, to drive both deep and greenfield drill targets…the program will also include the application of Corescan technology to historic deep drill holes and innovative machine-learning technology to constrain geochemical and mineralogical vectors related to Gold mineralization and further refine deep drill targets…meanwhile, GFG continues a minimum 5,000-m maiden drill program at its West Timmins Project in pursuit of a new high-grade Gold discovery in the region…
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Just an observation in your written logic in the above: you seem to laud Trump for having lowered crude oil value and then you say its the progressives fault if the oil industry in Canada is having a hard time, quite confused here where your narrative is going.
Comment by roychr — November 15, 2018 @ 10:18 am
I recently spoke with one of the lead scientists who helped with the testing and approval process of the Drager 5000 as well as the Intox EC/IR II (for alcohol). This person confirmed that there were multiple canadian police forces (including Calgary and Vancouver) who had stated they would not be using the Drager 5000 and were looking at other devices. There are two ‘other’ devices, and are both saliva testers with greatly improved performance and ease of use which can test for a large spectrum of different drugs. These two other devices are currently being tested and will likely be added to the list of approved screening devices. I was dismayed when I mentioned Cannabix technologies and it isn’t even on their radar.
Comment by Charles — November 15, 2018 @ 10:19 am
No need for confusion, roychr – it’s a smart move on Trump’s part to keep Oil prices from breaking out in order to keep the economy going strong…the Oil industry is having a hard time in Canada – Canadian Crude is getting discounted disproportionately – because of absolute total political incompetence in terms of the regulatory regime (messed up by climate change extremism) and the inability to build pipeline capacity…Trudeau’s National Energy Program (just like his father’s) has been a complete disaster, plain and simple, and Trump is laughing because investment keeps heading south…what has been done to the Canadian Oil sector is a tragedy, and so-called “progressive” (globalist) politicians in this country are mostly responsible…someone needs to start putting Canada First and stand up for not only the Oil industry but the entire resource sector…the sad fact is that Trudeau cares more about getting pot to market than Oil to market…
Comment by Jon - BMR — November 15, 2018 @ 10:59 am
those Koch bros. guys w cash who backed Trump, are doing quite well also. They have a refinery that uses Cdn Crude and they have spent millions dissing the oilfields any way they can and then widening the spread and happily refining and selling for a whopper return on investment . the soooner a pipeline goes, the sooner they lose some of thier hold on the heavy oil of western Canada
Comment by David — November 15, 2018 @ 2:46 pm
And Warren Buffett (who backs the liberal left) makes mega millions everytime his train cars get loaded with fuel. Plenty ways to profit by delaying the pipelines…
Comment by Jon (not BMRJon) — November 15, 2018 @ 3:34 pm
Hi Jon,
Thanks for the explanations.
Appreciated.
Comment by roychr — November 16, 2018 @ 6:34 am
CP – true enough , although the majority of CN + CP’s rail is other stuff than oil (lovely chart on CP over 15 yrs). whereas pipelines only ship, oil! If they didnt ship via rail, well, we’d be in a bigger pickle although Id be happy to forgo that shr price appreciation that CP has, with the help of oil, for a ‘safer’ and cheaper method of shipping
Comment by David — November 16, 2018 @ 7:17 am