Gold fell as low as $1,240 overnight but has jumped higher on short covering, bargain hunting, and fresh weakness in the struggling U.S. Dollar Index…as of 7:00 am Pacific, bullion is up $26 an ounce at $1,266…Silver is 54 cents higher at $20.38…Copper is up 2 pennies to $3.26…Crude Oil has climbed another 97 cents a barrel to $97.98 while the U.S. Dollar Index is off one-quarter of a point to 79.89…
Winds of political change are blowing in India where Prime Minister Manmohan Singh’s government suffered a resounding setback Sunday…voters handed victories in three state polls to the opposition Hindu nationalist Bharativa Janata party, led by prime ministerial candidate Narendra Modi…India’s general election is looming early next year…many investors are pinning their hopes on Modi who has campaigned as a pro-business, reform-minded leader…potential political changes in India may also bring to an end the current incompetent government’s hard stance regarding Gold imports…jewellers from across the country, diamond retailers and bullion traders are all lining up to pledge their support for Modi…
Very positive sign that Gold is about to turn the corner – large speculators, typically on the wrong side of the trade, cut their bullish Gold futures and options holdings to the lowest ever last week, according to data released late Friday by the Commodities Futures Trading Commission…the overall COT structure is very bullish with commercials – the “smart money” – slashing their net-short positions…
PwC Global Gold Price Report
A PwC survey of the top 40 global mining companies by market cap determined only seven companies provide an all-in cost figure…only six companies – Barrick, Goldcorp, Gold Fields, Kinross, Newmont and Vale – disclose their definition of sustaining capital…āTransparency on costs can help management make the case for difficult decisions, such as workforce reductions, care-and-maintenance announcement and divestitures,ā said the report. āThe prospect of continuing tight margins for the foreseeable future suggests that analysts and shareholders will keep up the pressure on miners for improved disclosure.ā
To access the 2013 PwC Global Gold Price Report, go to www.pwc.com/ca/goldsurvey
Today’s Markets
Asian markets were relatively flat overnight with China’s Shanghai Composite down just 1 point to 2237…data released today showed Chinese November retail sales beat estimates while industrial output matched market expectations…those numbers follow stronger-than-expected trade figures released over the weekend and confirm hopes that the world’s second-largest economy can sustain its positive trend into year-end…
European shares are down modestly in late trading overseas…
The Dow is 27 points lower as of 7:00 am Pacific…the TSX is up 20 points, thanks in part to strength in the Gold Index, while the Venture has added 2 points to 904…yesterday’s drop of 15 points appeared to be related almost entirely to tax-loss selling, the bulk of which is likely out of the way which sets the stage for a sharp reversal higher during the last half of the month…
Reservior Minerals Inc. (RMC, TSX-V), which reported a spectacular hole last week, has hit another new all-time high this morning…it’s up 22 cents at $5.60 through the first 30 minutes of trading…
Platinum Group Metals (PTM, TSX) has arranged a $175 million bought-deal financing (148.5 million shares at $1.18 a share), shortly after announcing impressive assays from its 87% owned Waterberg Extension Project in South Africa including 1.4 g/t Au Pt, 3.59 g/t Pd and 0.27 g/t Au (5.26 g/t Au 3E) in hole WE-08…PTM is down 7 cents at $1.18 as of 7:00 am Pacific…should be an interesting play to watch in 2014…
Crude Oil Updated Chart
WTIC continues to trade within an ascending triangle, and the recent weakness was quite normal when one examines the long-term chart…if Crude can continue to hold support, and perhaps get back above the $100 level, this would obviously be very helpful for Gold…
Contact Exploration Inc. (CEX, TSX-V)
An oil and gas junior that weāve been tracking in recent months with increasing interest is Contact Exploration (CEX, TSX-V) which continues to accelerate its Kakwa Montney play in Alberta…CEX continues to look poised for a breakout based not just on fundamental factors – continued increases in production as East Kakwa pushes westward ā but given the underlying bullishness of the long-term chartā¦as always, perform your own due diligenceā¦
Below is an updated 2.5-year weekly CEX chart from Johnā¦since late 2012, CEX has been trading in a horizontal channel between 18 cents and 28 cents, and a decisive move above that channel appears to be in the works but exact timing of course is uncertain...CEX climbed as high as 30 cents yesterday before closing at 28.5 cents…it’s off half a penny at 28 cents as of 7:00 am Pacific…
Prosper Gold Corp. (PGX, TSX-V) Update
At BMR, we have only begun to highlight the potential of the Sheslay Valley region of northwest British Columbia to host a series of world class Cu-Au porphyry deposits, and we are currently preparing a special report for release early in the New Year to follow up on months of exhaustive research that has included discussions with some of the top geologists and prospectors in the country…BMR intends on being the leading online source for the Sheslay Valley area in 2014 – focusing in particular on Prosper Gold (PGX, TSX-V) and Garibaldi Resources (GGI, TSX-V)Ā – as the wealth opportunity for investors is immense in our view given what has been learned through exploration in recent months by both companies…
While Garibaldi has held up well due to exploration and drilling this winter in Mexico, Prosper has taken a hit simply due to the fact of inactivity on the ground as the Sheslay is its only project…”short-term” investors (traders) exited PGX beginning at the end of October due to the fact they saw “dead money” for a few months – no drilling and no news…they’ll be piling back in at the appropriate time…meanwhile, the hair cut in the PGX share price has created in our view an even greater opportunity for investors who can see beyond the next 24 hours to what should unfold over the next 12 months…the “Star” is just one of several Cu-Au porphyry targets at the Sheslay, and the consistency of mineralization in 29 holes drilled to date at the Star – 23 historically and six by Prosper – is nothing short of remarkable in terms of intersection lengths and grades…a back-of-the-envelope calculation shows that if Prosper is able to connect the Star target with just the North Star, a very real possibility given what was learned over the summer, a deposit of at least several hundred million tonnes is in the cards…with a superior management team – the same group that discovered Blackwater with Richfield Ventures getting taken out by New Gold Inc. (NGD, TSX) for half a billion dollars – Prosper has enormous potential in our view from current levels…they have a model for the Sheslay, and we believe they’ll be able to prove it up…
Below is an updated 2.5-year weekly PGX chart from John…strong support at 25 cents has held…expect Pete Bernier and Company to come out swinging in January…
Revolver Resources Inc. (RZ, TSX-V)
While the Shelsay has clearly taken the lead over Colorado Resources‘ (CXO, TSX-V) North ROK discovery as the top exploration play in the general “Red Chris” area of northwest B.C., speculators will certainly be keeping an eye in the coming weeks on little Revolver Resources (RZ, TSX-V) which has completed a small financing and mobilized a drill rig to its Summit “B” Property contiguous with North ROK…Revolver’s timing is good – Venture tax-loss selling is winding down, and we should see a significant turnaround in the Venture during the last half of the month…RZ closed at 3 cents yesterday and is supported by rising 100 and 200-day moving averages (SMA’s) as shown in John’s 2.5-year weekly chart…as always, perform your own due diligence…RZ is up half a penny at 3.5 cents as of 7:00 am Pacific…
LX Ventures Inc. (LXV, TSX-V) Updated Chart
Social media darling and the ever-volatile LX Ventures (LXV, TSX-V) found support recently near its 20-day SMA, as expected, and has stabilized after a healthy pullback from its recent high of 96 cents…below is an updated 2.5-year weekly chart from John…as of 7:00 am Pacific, LXV is up a penny at 74 cents after falling as low as 68 cents in the first minutes of trading – 4 pennies above the 20-day SMA…
Note: John and Jon both hold share positions in GGI.Ā Jon also holds a share position in PGX.
Is it only me but I’ve noticed there is a bit more financing done the past two weeks done for small cap gold companies. Backed by some of the smarter players like sprott….
Comment by alex — December 10, 2013 @ 7:19 am
Lets hope GGI releases good results soon on Mexico drilling to back up their video Why GGI? In 90 Seconds
Comment by Dan — December 10, 2013 @ 7:32 am
Why are u calling this a trading market then blast traders for the demise of pgx’s share price? Pgx is the perfect example of why you should not buy and hold these risky plays.
Comment by OldMan — December 10, 2013 @ 10:49 am
lxv is a sell on bnn today
Comment by gil — December 10, 2013 @ 12:06 pm
Gil
I assume a so called expert made that call,
maybe the same one that said Apple would
never get off the ground & the same one maybe,
who said a better name for the company would
have been orange. In fact, it’s about time we
made up our own minds, that’s been our problem,
listening & believing in too many. Anyway, have
a good day. R !
Comment by Bert — December 10, 2013 @ 12:18 pm
V.GGI 18.75%
V.HBK -5.00%
T.SAM -13.51%
V.IO -16.67%
V.TGK -33.33%
V.GTA -25.00%
V.KWG -10.00%
V.RBW -50.00%
V.FMS -5.88%
V.PGX -1.45%
V.GBB -25.00%
V.GMZ -37.
bmr members stock picks
Comment by gil — December 10, 2013 @ 1:39 pm
Gold up $25.00 & the venture struggles, which shows how
infected it is, infected to the point, that it’s hands’ off,
unless you are wearing gloves. My stock LXV was also down,
but i am not willing to sell, because of a call from a talking
head on BNN. No doubt, some do listen & are swayed by what the
talking heads say. if BNN had all the answers, they would not be
having guests on. I have decided on my own, by the way, that i am
going to give LXV a chance & if it goes down, i feel it will come
back, too many people involved right now for it to flop, but if it
fails, we are use to that here aren’t we ? I still stand by my
previous prediction that the Venture will not come back to any
extend in December. R !
Comment by Bert — December 10, 2013 @ 2:51 pm
Jon – BG drilled 922 meters in 39 days and released results 3 weeks after drilling ended. Started Sept 5th, ended Oct 24th. That was an average of 23.64 meters per day. The total meters per day of course dropped the deeper the drill went. Now with regards to GGI, the drill started Nov 7th. The deepest they can drill with the current rig is 300 meters. Minimum 25 meters per day would mean the hole would have reached it’s maximum depth on Tuesday Nov 19th give or take a couple of days. That means tomorrow December 11th will be 4 weeks since hole finished. If BG can release results on a 922 meter hole 3 weeks after drilling stopped, why can’t GGI release results on one hole that is maximum 300 meters deep in four weeks. I am starting to think they didn’t get the desired results? What do you think? We all know good results come fast 99% of the time.
Comment by Dan — December 10, 2013 @ 2:55 pm
Correction to my last post, first word, last line should have read extent.
Dan – I agree with your thoughts completely & is exactly how you should
think. Today, i give them a big RED FLAG. Sorry ! but it’s up to GGI to
change my mind & if it pleases me, down comes the flag. R !
Comment by Bert — December 10, 2013 @ 3:13 pm
What I think Dan, is that we’re probably very close to an update from GGI and I’m personally looking forward to it. They just started drilling a month ago at Tonichi, plus other things are happening between Mexico and British Columbia. You don’t go from the start of a hole (or more than one hole perhaps) to full assay results to the market in a month. That would be quite remarkable. Some of your assumptions could be wrong (for example, 12 hour per day drilling or 24 hour per day drilling, what type of rig?). I remember back in 2010, a reader made some similar kind of calculations (assumptions) regarding Seafield’s drilling at Miraflores, sold the stock because he assumed the results wouldn’t be any good as things were taking so long, and then watched in disbelief as the company came out with excellent results and quadrupled in 1 day on 100 million shares. We’re in a different market, of course, but my point is the same. A good rule of thumb is to give a company 6-8 weeks from the start of drilling to produce results, unless they stipulated initially they were drilling a series of holes and would report after assays for all holes were received and interpreted. Be patient. GGI is very much on track with how they are pulling things together IMHO, and I think it’s reasonable to expect we’ll be hearing from them almost any day now with some sort of an update – before Christmas and not just a few days before Christmas. This is a very capable, professional group that’s determined to deliver value to shareholders, and I’m very confident that’s exactly what they’re going to do. I speculated last week I thought this might be the logical week for some news. We’re just 2 days into the week.
Comment by Jon - BMR — December 10, 2013 @ 3:30 pm
Jon – I remember back in 2010, a reader made some similar kind of calculations (assumptions) regarding Seafieldās drilling at Miraflores, sold the stock because he assumed the results wouldnāt be any good as things were taking so long, and then watched in disbelief as the company came out with excellent results and quadrupled in 1 day on 100 million shares.
Joking
Bert – How would you know this person watched in disbelief, unless it was you,
Terry or John . By the way, he may have re-invested & the stock may
have quadrupled, plus. R !
Comment by Bert — December 10, 2013 @ 3:44 pm
Bert, I stated that because it happened and I know who the individual was (and it wasn’t Terry and it wasn’t me). Unfortunate but that’s life in the market.
Comment by Jon - BMR — December 10, 2013 @ 3:48 pm
Hope you are right Jon. I know we are responsible for our own investment decisions. Hopefully they are very tight lipped and no leaks -good or bad.
Comment by Dan — December 10, 2013 @ 4:35 pm
My sixth sense again… GBB reverse split coming 5 to 1 , DYG reverse split 10 to 1.
Comment by Theodore — December 10, 2013 @ 6:53 pm
Bert…..I’m with you!!! I think lxv is just the beginning…hopefully the next twitter!!! Too many big celebs signing on with too much skin in the game. The target market is 18-25…..potential upside is staggering!!! Fabrice Taylor always promotes his own and only his own!!! He is not a fair or objective opinion The proof is if you look back at his other remarks. One could say he is a contrarian…do the opposite of what he discloses as he is often involved in financing and warrants awarded for his input and pumping.
At this point…small cap tech has been preforming well worldwide as gold has not firmly turned and small cap mining does not appear to be in vogue quite yet. I am sure the day will come but not until big gold turns and other events happen!!!
I’m with you..lets see what lxv does..with their fantastic, experienced management team. celebs with skin in the game and tech in vogue!!!
Natalie glta
Comment by natalie — December 11, 2013 @ 4:24 am