Gold fell as low as $1,255 overnight but received a boost from a lower-than-expected U.S. payrolls number for January…as of 7:30 am Pacific, bullion is up $6 an ounce at $1,264…Silver is 4 cents higher at $19.98…Copper is flat at $3.26…Crude Oil is up 47 cents at $98.31 while the U.S. Dollar Index is down one-tenth of a point to 80.78…
U.S. non-farm payrolls came in at only 113,000 vs. expectations of 185,000, but many traders and analysts are attributing the weak number to bad weather conditions in many parts of the country last month…the Labor Department also reported that the unemployment rate fell to 6.6%, a function of a continued decline in the labor force as the participation rate remains mired around 36-year lows…there was hardly any change in the revised December jobs report (75,000 vs. 74,000, well below the 200,000 originally expected)…what will the excuse be if there’s a third straight month of weak job growth in February?…
Chinese buyers have returned from the country’s New Year holidays with a “decent” appetite for Gold, according to UBS (source: Kitco)…Shanghai Gold Exchange volume was about 26 metric tons yesterday, in line with the week before participants went on holiday. “Comparing this year’s post-Lunar New Year appetite to last year is somewhat encouraging,” UBS stated…volume in 2013 also picked up after the holiday, but was helped by a 6% decline in the price. “But this year, Gold is actually over 1% higher than where it was before participants in China left for the New Year break a week ago, and yet demand seems to be very resilient upon their return,” UBS says. “This suggests that demand in China is robust.”
Shanghai premiums for 99.99% purity Gold have advanced to $11 an ounce over London prices, a substantial increase from just before China went on holidays…trading volumes today have hit their highest in a month on the Shanghai Exchange…
Emerging Market Equity Outflows
Outflows from emerging market equity funds since the start of this year now exceed those for all of 2013 after investors continued to flee emerging stock and bond funds during the past week, according to data from EPFR Global…the Boston-based fund tracker said $6.37 billion had fled emerging equity funds in the week to Feb. 5, while bond funds shed $1.98 billion…
U.S. Dollar Index Updated Chart& Implications For Gold
The U.S. Dollar Index continues to struggle technically as it remains under pressure from a declining 200-day moving average (SMA)…in September, the Dollar Index broke below both its 200-day and a long-term uptrend on the 2.5-year weekly chart – it immediately sank lower and bounced off strong support at 79…another test of that critical support is certainly very possible, and such an event would probably give Gold the lift it needs to gain some traction above $1,300 an ounce…
Today’s Markets
Asia
Trading resumed in China overnight, following the holidays there…the Shanghai Composite gained 11 points to close at 2044 while Japan’s Nikkei surged 307 points or 2.2%…however, the Nikkei still finished 3% lower for the week…
Europe
European markets are up slightly in late trading overseas…German industrial output unexpectedly fell in December, signaling that Europe’s largest economy remains vulnerable to weakness in the rest of the region…however, the overall economic outlook for Germany still remains very positive with consumer confidence at near-record levels and declining unemployment hinting at a pickup in consumption…manufacturing in the country expanded for a seventh month in January, according to a survey of purchasing managers…
North America
The Dow is up 4 points through the first hour of trading…the TSX is down 12 points while the Venture is at 954 as of 7:30 am Pacific, up a point…
Oskiso Mining Corp. (OSK, TSX) Update
Interesting that Osisko Mining (OSK, TSX), the target of course of a hostile takeover attempt by Goldcorp Inc. (G, TSX), has commenced a drill program on its Canadian Malartic Property as announced in a news release this morning…drilling is targeting additional low-grade, near-surface disseminated mineralization outside the mine area as well as traditional vein-type lode Gold systems deeper on the property (our emphasis) near the Cadillac-Larder Lake fault…it’s not just the current output of Canadian Malartic that Goldcorp would like to get its hands on – they likely see strong potential for additional discoveries on the property…
New Gold Inc. (NGD, TSX) Reports Lowest Cash Costs In Company History
New Gold Inc. (NGD, TSX) yesterday reported full-year 2013 production of 397,688 ounces of Gold, 85.4 million pounds of Copper and 1.6 million ounces of Silver with total cash costs of $377 per ounce, the lowest in the company’s history, and all-in sustaining costs of $899 per ounce…New Gold’s year-end cash balance was $414 million…focus will be on further cost reductions in 2014 with targeted total cash costs of $320 to $340 per ounce and all-in sustaining costs of $815 to $835 per ounce…like other Canadian producers, NGD is benefiting from a weak loonie…
Redhill Resources Corp. (RHR, TSX-V) – Potential New Player In The Sheslay Valley?
Mere speculation on our part, but it’s interesting that Redhill Resources Corp. (RHR, TSX-V) cut a deal just recently with privately-held Divitiae Resources to acquire an option on Divitiae’s SAT Property in central British Columbia…Divitiae also holds some important claims (the Dickster Property) in the Sheslay Valley, contiguous to the northern borders of ground held by both Prosper Gold Corp. (PGX, TSX-V) and Garibaldi Resources Corp. (GGI, TSX-V)…knowing that Redhill has just completed an agreement with Divitiae on the SAT, might they have the inside track on also picking up the Dickster?…
Redhill was rolled back 1-for-10 in October and currently has just over 13 million shares outstanding…it had about $4 million in cash according to its latest financials ending November 30, and increased its equity position in High North Resources Ltd. (HN, TSX-V) to 13% in the fourth quarter last year (High North is an active oil and gas play with assets in northwest Alberta…it hit a new 52-week high yesterday of 56 cents)…
Below is a 3-year weekly Redhill chart from John…RHR has backed off modestly this morning after nearly doubling over just a few trading sessions, climbing from a closing price of 15.5 cents February 3 to 30 cents yesterday…the potential breakout to watch for in RHR this year is a move above the long-term down trendline, currently around 55 cents…there’s also Fib. resistance at 70 cents…
Contact Exploration Inc. (CEX, TSX-V) Chart
Speaking of northwest Alberta oil and gas opportunities, we continue to follow Contact Exploration (CEX, TSX-V) with great interest…CEX staged an important breakout in December above a horizontal channel in place for more than a year…Contact continues to accelerate its Kakwa Montney play, and is poised for further increases in production as East Kakwa pushes westward…
Technically, CEX is performing in textbook fashion – retracing to test the uptrend support – as you can see in John’s 2.5-year weekly chart…CEX is down a penny at 30 cents through the first hour of trading…as always, perform your own due diligence…
Global Coal Met Corp. (GMZ, TSX-V) Update
Encouraging news from Global Coal Met (GMZ, TSX-V) recently with the company announcing that it has received (at long last) the final permit for its Black Creek metallurgical coal project from the Alabama Department of Environmental Management…what’s even more significant, in our view however, is that the terms of GMZ’s agreement with the landholder have been changed, through a new LOI, to allow GMZ to purchase the surface rights for Black Creek on much more favorable terms…instead of the lump-sum $3 million previous arrangement, GMZ will now only have to pay out $30,000 upon execution of the LOI, $30,000 within 90 days of the execution of the agreement, and then $20,000 per month afterward…in addition, the optionors will receive a 7% royalty on all coal sales…this underscores the optionors’ faith in the project and GMZ’s ability to advance it…GMZ expects to announce a timetable for development of Black Creek later this quarter, so we don’t expect extraction to begin until the second half of the year…however, patient investors have an opportunity to do extremely well with this play given the current 4-cent price…John will have an updated chart in the near future…
Canadian Zinc Metals Corp. (CZX, TSX-V) Updated Chart
Canada Zinc Metals Corp. (CZX, TSX-V) has been a strong performer in recent months and is certainly worthy of our readers’ consideration as 2014 progresses…CZX is once again testing long-term resistance after a brief pullback…the stock has been very resilient since waking up last June and has seldom fallen below its 20-day SMA, currently at 52.5 cents…
Canada Zinc is a dominant landholder in B.C.’s Kechika Trough which hosts several known Zinc-Lead-Silver deposits including the company’s Cardiac Creek deposit which has a NI-43-101 resource…Cardiac Creek forms one of CZX’s two 100%-owned projects – the other is the Kechika Regional which holds significant exploration upside…CZX is off a penny at 56 cents as of 7:30 am Pacific…
Magor Corp. (MCC, TSX-V) Update
Magor Corp. (MCC, TSX-V) reported yesterday that it has closed the second and final tranche of a brokered private placement debenture offering, raising another $1.1 million for total proceeds of $2.3 million…Magor appears to be on track and expects to be cash flow break-even in the 2015 fiscal year starting May 1…President and CEO Mike Pascoe stated, “As a direct result of this successful raise, we have significantly strengthened our cash position, allowing us to continue to expand our global presence through our sales channels, partners and the service providers whom we are currently in trials with. Operationally, we continue to receive orders from our key global customers and, due to high demand from the Middle East, we recently opened an office in Dubai. Based on our current growth in business and as a result of this last capital raise, we are confident we have enough capital to reach the significant milestone of cash flow break-even during fiscal 2015.”
Wanted Technologies Corp. (WAN, TSX-V)
Another tech company we like is Wanted Technologies Corp. (WAN, TSX-V)…headquartered in Quebec City with subsidiary offices in New York, Wanted provides real-time business intelligence for the talent marketplace…it’s also the exclusive data provider for the Conference Board’s Help-Wanted OnLine Data Series™, the monthly economic indicator of hiring demand in the United States…
Technically, WAN has been unwinding an overbought condition that emerged late last year and has found strong support at the Fib. 61.8% level…
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in MCC.
Alert. check out OCO.V and other companies in this area of mexico. Hi grade gold area. RICHARD L
Comment by richard l — February 7, 2014 @ 8:17 am
Inca One (v.io)Begins Construction to Double Capacity at Chala One Production Plant
http://incaone.com/news/news_releases/index.php?&content_id=102
Comment by Tony T — February 7, 2014 @ 11:13 am
Can anyone look at fnc.v weekly.chart and confirm if there is strong accumulation over the last 6 weeks? I think.there is but would like for some else to.confirm it. Thanks
Comment by tony t — February 7, 2014 @ 3:06 pm
Hi Tony
On my weekly charts CMF shows Sell Pressure is dominant and at a strong -.34. Vol. is high, but not Buy Pressure.
Comment by John BMR — February 7, 2014 @ 6:45 pm
Hi guys! Not a bad week despite the slow start. Noticed that most of the action sits on DBV/GGI this week….also, noticed that ABR started to finally clean-up! Also, noticed that some others out there like VGD, VGN, etc were hit hard but managed to have some rebound after the cleanup! BMR: i know you guys are busy,etc but the ‘cheapies with a chance’ is due sooooon! Stocks like TYE/CYP/VGD/VGN/ABR/AIX/TJ/DYG,etc all come to mind!….Let’s get in some of these while they are cheap?
Comment by STEVEN1 — February 7, 2014 @ 7:43 pm
Sorry Tony
I looked at Buy Pressure…. there was a drop in the Acc/Dist line over the last 6 weeks.
Comment by John BMR — February 7, 2014 @ 8:25 pm
Garibaldi Resources launches online marketing and awareness program via AGORACOM
Comment by Dan — February 8, 2014 @ 5:10 am
Thanks john. Much appreciated
Comment by tony t — February 8, 2014 @ 6:20 am
Hi Steven, the ones I like in particular that you just mentioned are VGN, ABR, and DYG…VGN and SFT have a very interesting oil and gas play in a prolific area of NW Alberta – they farmed it out to Direct Energy which now has the permitting to proceed with drilling this well…literally everything in that area is hitting…no confirmation yet as to when they’re going to start drilling but the rumor is sometime this quarter (so likely very soon)…keep an eye on Romios Gold (RG) which has doubled its land position in the Sheslay Valley, they have butted right up against the Grizzly in their latest staking…we’ll have a chart on RG Monday morning and it looks very promising…
Comment by Jon - BMR — February 8, 2014 @ 6:20 am
Back & may i add, well rested.. To give one an idea how the
past market behavior has taken a toll on my way of thinking,
i will continue.. I showed faith in GGI right from the beginning,
when PGX was brought forward. I quietly accumulated, at an overall
average of 0.11. When the stock started to move, i wasn’t about to
lose a profit, which has been hard to come by for some time now.
so i ended up selling half my position, the last amount received
was 0.23, a solid double. No matter what, i can now say, i did well
with GGI. When the drill results come back from Mexico & if they are
not what the market likes, i may wish that i sold the works, but if
they are good, i will continue to profit. Not knowing is the dilemma
we all face, especially since we found out they have changed labs. I
have read that they have excellent management, excellent this &
excellent that, yet they picked a lab they couldn’t stick with.
Although they may have had a valid reason, for now, it’s a red flag
for sure. My portfolio has increased significantly, which tells me,
the market is coming back friends. Good luck ! R !
Comment by Bert — February 8, 2014 @ 8:24 am
GOOD TO HEAR YOUR STORY BERT! I think next week will be a good test as it is approaching mid February.
Comment by STEVEN1 — February 8, 2014 @ 8:57 am
It’s great to have you back, Bert, and that you’re well rested, but you know what—-something very critical you’re missing with GGI and the whole Sheslay play for that matter….I’ve lived in British Columbia all my life, I’ve gone through the Eskay Creek discovery and all the major discoveries in this province going back 30 years….you’re 4 thousand or so miles away and understandably may not have the same feel for this….mark my words, the Sheslay Valley, which I have studied intensely over the last 8 months, will rank right up with all the other major discoveries in this province over the last several decades…that’s the direction this thing is headed, so what’s emerging here IMHO is an entire new mining camp right on trend with all the other huge deposits (current and past producers) along this amazing belt….the significance of that cannot be understated…and, more importantly, that’s not just my opinion—–that’s the opinion of many different geologists, prospectors and others who are a lot smarter than both me and you, and are watching this extremely closely…
These are still the early stages with PGX, GGI and DBV and the other companies like ABR (with a growing list) who hold ground in the area….the intensity out here with regard to this whole situation is something I have not seen in a long time, it’s exciting, refreshing and just the beginning….I know for a fact that a few of the wealthiest, most well connected brokers in Canada are starting to understand what’s happening here, and they’re beginning to enter this play – DBV, PGX, GGI and even ABR…..when the masses start looking at this (the masses have not yet discovered this), watch out……at least two majors, rumor has it, are also already taking a keen interest in what’s unfolding….the probability of multiple Cu-Au porphyry deposits with the right volume and grade over at least 3 different properties (Prosper, Hat, Grizzly) has to be considered unusually high given all the evidence to date, and the geological history of this part of B.C……if this is proven to be the case, these stocks will all become 10-baggers or better, and millionaires will be born just like in all previous B.C. staking rushes and major discoveries…..as far as GGI is concerned, they have some terrific targets over a very wide area at the Grizzly and control the largest land position by far of any junior….if this becomes the hottest exploration area in the country as we suspect it will in the coming months, investors won’t even care what GGI comes up with in Mexico – good or bad, it won’t matter….in fact, the Sheslay area has become so significant that GGI may even have to look at spinning out its Mexican assets into a separate company as a dividend to shareholders…the valuation in the market will go to the Grizzly and GGI won’t get the valuation it deserves for its Mexican or other assets…that’s what always happens in discovery situations……some of the best geologists and geophysicists in this country are involved in looking at the Grizzly, the Sheslay and the Hat—-as investors, we should all be grateful, confident and encouraged by that because at the end of the day it’s about people, having that kind of expertise that will truly unlock the full and incredible potential of this very special and well-endowed area….
Comment by Jon - BMR — February 8, 2014 @ 9:17 am
Did you take notice my friends, i posted just one negative line
in my last post & to be honest, i just waited for Jon to reply.
as it was intentional on my part. I have to thank Jon for his
response, it was appreciated & helped me get back to why i bought
GGI in the beginning. I believe in the saying, you reap only what
you sew. Come on friends, put some life back into this board, if
not, BMR may state some day, use it or lose it. I have taken a
position in ABR., i notice it is getting cleaned up & may be ready
to move up soon… R !
Comment by Bert — February 8, 2014 @ 12:17 pm
Didn’t ABR just increase their private placement in their latest news release? That is obviously a good sign and nice bids showing up….ABR only has 29M shares outstanding and is cheap compared to the rest….I believe it is 1200m from DBV discovery? Jon? ABR has a whole bunch of Yukon stuff too close to WG. Plus I think they have the Uranium property close to MKN which has been moving up lately!
makenaresourcesinc.com/i/maps/Makena-Claim.jpg
Comment by STEVEN1 — February 8, 2014 @ 3:02 pm
Bert , a great comment from Jon, also picked up some ABR shares earlier last week, along with GMZ, Thinking about RG and AIX next week. Anyone have any comments on the latter 2 stocks?? Much appreciated! Thanks.
Comment by Greg J. — February 8, 2014 @ 4:16 pm
GGI& ABR giddy up
Comment by BRIAN — February 8, 2014 @ 4:47 pm
Greg: i think AIX picked up some ground in the area too. Anybody in the area has potential to go up big time as the area heats up ‘all around’! I like management of companies that can see what’s going on rather than keep crying about the last 3 years. It’s time to get going is what i tell them! I like ABR too for all their projects!
Comment by STEVEN1 — February 8, 2014 @ 8:51 pm
A GOOD READ HERE: https://dl.dropboxusercontent.com/u/14283192/MajorBottomReportFree.pdf
Comment by STEVEN1 — February 8, 2014 @ 9:16 pm
I’d be weery of companies like ABR. They create zero shareholder value and seem to change their focus like the wind. They have a small float because throughtout years and years of raising money and diluting the %$#@ out of the current shareholders, they consolidated a couple of years ago at a 10 to 1 rate. ABR has doubled in the past month. Don’t be greedy and move on. I’d stick with the leaders in the area if you like this play
Comment by Pete — February 9, 2014 @ 2:54 am
Pete, I understand what you’re saying, but ABR’s Hackett Property is simply too strategic not to come into play here IMHO. The Hoey showing (named after Frank Hoey, an old-time prospector) literally straddles the border between the Hat and the Hackett, and some of the Gold and Copper numbers he came up with were quite eye-popping (read the 43-101 technical report on the Hat by Erik Ostensoe). Others since then have followed up on that showing and have reported very encouraging signs of mineralization. Importantly, the Hackett is right on trend, and within just hundreds of metres of DBV drill holes. If ABR goes ahead and drills the Hackett, it’s almost a guarantee that this stock – based purely on speculation – will make a big run. If you look back at all the major Canadian discovery plays over the last few decades, even companies with nothing but moose pasture (and no drilling) in a hot area have soared in value. Obviously the leaders in this situation are PGX, DBV and GGI, but ABR will do extremely well if they play their cards right. They also now hold some interesting platinum properties in the Yukon.
Comment by Jon - BMR — February 9, 2014 @ 4:34 am
Anyone else notice the ventures 50ma has crossed the 200 ma (golden cross)??
Comment by Tony T — February 9, 2014 @ 6:31 am
The only negative thing about this site is you don’t know
if you are being read or not, but that shouldn’t matter,
one should express his/her views & it will at least, clear
one’s mind. A few posts today, which is positive for a
Sunday. I even appreciated Brian’s post “giddy up”, it tells
me he is being caught in the recent positive atmosphere.
We waited a long while my friends & it may take a while yet,
but things are looking better, that is, if the negative talking
heads out there, will only shut up. As already stated, i did
well so far, with GGI & you know, just to have some movers makes
a difference. All of a sudden, you forget what we have gone
through. I want to make it clear, there’s a lot i don’t know,
but i am a determined person, determined enough that i aim
to gain from the market, what it has taken from me. Was
it Jimmy Durante who said, “Never give up”.
Comment by Bert — February 9, 2014 @ 8:11 am
Tony T
Yes i have been watching & the Golden Cross has occurred. Also of interest,
are the other indicators, which are positive, in particular, the stochastic,
which has crossed up, while below 20. We should have another good day tomorrow,
barring a talking head, once again guessing what may happen, that would
negatively impact the market, eventually, with market strength, they will
just be talking to themselves.R !
Comment by Bert — February 9, 2014 @ 8:22 am
When things go wrong, as they sometimes will,
When the road you’re trudging seems all uphill,
When the funds are low and the debts are high,
And you want to smile, but you have to sigh,
When care is pressing you down a bit-
Rest if you must, but don’t you quit.
Life is queer with its twists and turns,
As every one of us sometimes learns,
And many a fellow turns about
When he might have won had he stuck it out.
Don’t give up though the pace seems slow –
You may succeed with another blow.
Often the goal is nearer than
It seems to a faint and faltering man;
Often the struggler has given up
Whe he might have captured the victor’s cup;
And he learned too late when the night came down,
How close he was to the golden crown.
Success is failure turned inside out –
The silver tint in the clouds of doubt,
And you never can tell how close you are,
It might be near when it seems afar;
So stick to the fight when you’re hardest hit –
It’s when things seem worst that you must not quit
Comment by gil — February 9, 2014 @ 8:45 am
Gil
Way to go !
Comment by Bert — February 9, 2014 @ 8:59 am
Some may think this board is for stock chatting only,
but i beg to differ, in fact, doesn’t it state in BMR’s
disclaimer that it is also for entertainment.
Anyway, here’s a few quotes from Israel Ali :
The future needs your attention. It has something beautiful
to offer you, but first you must let go of the past in order
to receive it.
Make someone smile whenever you can, you never know how much
of a difference you could be making in their life at that moment.
Don’t be discouraged. It’s often the last key in the bunch that
opens the lock.
Comment by B ert — February 9, 2014 @ 9:13 am
GOOD TO SEE OVER 25 COMMENTS ON THIS POSTING! WELCOME BACK GUYS! WAITING FOR BMR’S WEEKEND REPORT TODAY!
Comment by STEVEN1 — February 9, 2014 @ 9:41 am
Jon, Have you ever considered doing some audio versions of BMR? Thanks!!
Comment by Greg J. — February 9, 2014 @ 10:07 am
We’re looking at different potential scenarios, Greg, including audio and video as 2014 progresses.
Comment by Jon - BMR — February 9, 2014 @ 10:12 am
Family day to-morrow, Canadian markets closed. Richard l
Comment by richard l — February 9, 2014 @ 1:24 pm
No, Richard, markets are open tomorrow. For some strange reason, in British Columbia they decided not to synchronize Family Day with Family Day in Ontario, Alberta and Saskatchewan which is the third Monday in February. So Canadian markets are closed on the 17th, not tomorrow, though it’s a holiday in B.C. (for some people) tomorrow. Go figure.
2014 Stock Market Holidays – Stock Markets Closed
New Year’s Day – January 1, 2014
Family Day – February 17, 2014
Good Friday – April 18, 2014
Victoria Day – May 19, 2014
Canada Day – July 1, 2014
Civic Holiday – August 4, 2014
Labour Day – September 1, 2014
Thanksgiving Day – October 13, 2014
Christmas Day – December 25, 2014
Boxing Day – December 26, 2014
U.S. Holidays*
Martin Luther King, Jr. Day – January 20, 2014
Memorial Day – May 26, 2014
Independence Day – July 4, 2014
Thanksgiving Day – November 27, 2014
Comment by Jon - BMR — February 9, 2014 @ 2:21 pm