Gold has traded between $1,174 and $1,184 so far this morning…as of 9:00 am Pacific, bullion is up $4 an ounce at $1,178…Silver has added a nickel to $16.00…Copper is up a penny to $2.70…Crude Oil has surged $1.90 a barrel to $60.04 while the U.S. Dollar Index has slipped one-tenth of a point to 95.12…
Although demand has been lackluster for Gold recently, HSBC analysts say they expect it to strengthen if the metal’s price continues to fall. “In light of the recent bullion price decline, we have noticed a continued absence of Asian physical demand, which traditionally materializes on declining price,” they noted in a research note yesterday. “We believe demand may resurface if Gold drops below $1,150 and increases if bullion falls closer to the psychological $1,100 level,” they added. However, they said that “until this buying surfaces”, Gold will remain weak in the near-term…HSBC analysts did point to two other factors that may provide relief for the metal – stabilization in the Crude Oil market as well as potential delays in U.S. rate hikes…
Oil Update
Higher seasonal demand in developed economies and expectations of falling U.S. shale production are giving Crude a lift today…Oil production declines from the largest U.S. shale plays are forecast to deepen for a 3rd consecutive month in July even as rig productivity remains high, according to monthly drilling data from the U.S. Energy Information Administration yesterday…however, there’s still a massive U.S. Crude inventory mountain to deal with…
Two major Canadian Oil sands operators said yesterday they have resumed output at sites that had been shut down by a more than 2-week old wildfire in northern Alberta, which exports much of its Crude Oil production to the U.S….the blaze had shut-in nearly 10% of Canada’s Oil sands output, or about 233,000 barrels a day, since it was first detected on May 22…
The Tim Hortons “Enbridge Error”
We’re not sure we’d say Tim Hortons has declared “war” on Canada’s energy industry, but the company has certainly shown poor judgement in addition to disrespect for a critical industry and another great Canadian company, Enbridge (ENB, TSX)…last week, Tim Hortons allowed itself to be manipulated by radical groups who organized tweet and web campaigns into announcing it would stop running Oil-related Enbridge commercials on video screens in some of its locations…rather than standing up for Canada, as it should have, Tim Hortons sided with a bunch of Oil-haters from down south…shame on Tim Hortons…you insulted many of your own customers…
Ezra Levant, now at therebel.media, went a little further in his condemnation of Tim Hortons and is gaining traction with a “Boycott Tims” campaign on “The Rebel” web site…we do need more Ezras – more “rebels” – to counter extremists who continue to ramp up their campaigns against the Canadian Oil industry that provides so many jobs and has helped build this great country…
Ezra: “A U.S.-based lobby group called ForestEthics pressured Tim Hortons to rip up an advertising contract they had with a Canadian pipeline company. And Tim Hortons agreed.
Tim Hortons has no problem doing business in OPEC dictatorships. They have stores in Kuwait. In the United Arab Emirates. In Qatar. In Oman. Those are all dictatorships. Tim Hortons happily takes their money.
But they think Canadian oil and gas workers are too unethical.
Fine. If Tim Hortons doesn’t want Canadian oil money, let’s not give it to them. Boycott Tims.
Please sign our petition, demanding that they reverse their anti-Canadian decision.
And if you’re as mad as me, please chip in to help pay for radio ads. You can hear the ads right here.
This is about self-respect. How can we shop at a store that doesn’t respect us?
And if Tim Hortons does this today – and gets away with it – who will do it to us tomorrow?”
http://www.therebel.media/boycotttims
Today’s Equity Markets
Asia
Asian markets were weak overnight…China’s consumer price inflation for May came in 1.2% year-on-year, versus 1.5% in April…producer prices, meanwhile, fell 4.6% in May, year-on-year…this data has deflationary tones and will put more pressure on China’s central bank to inject further stimulus into the economy…
Europe
European markets were down moderately today…the EU’s Q1 GDP rose just 0.4% vs. the last quarter of 2014…
North America
The Dow is up 22 points as of 9:00 am Pacific while the NASDAQ is off 10 points at 5011…
NASDAQ Updated Chart
Regardless of how accommodating the Fed continues to be, the NASDAQ is battling very stiff resistance just above 5000…this 20-year monthly chart puts the current situation in good perspective with the index having reached the top of two upsloping channels, one of them going back to 2004…the RSI(14) divergence with price is also a concern…
In Toronto, the TSX, which fell 403 points the last 3 sessions, has recovered 64 points as of 9:00 am Pacific while the Venture is down a point at 685…
More Industry Consolidation
A merger of 5 companies was announced this morning – Oban Mining Corp. (OBM, TSX), with $10 million in cash at the end of March and 120 million shares outstanding, has entered into binding letter agreements providing for the launching of supported share exchange takeover bids with each of Eagle Hill Exploration Corp. (EAG, TSX-V), Temex Resources Corp. (TME, TSX-V), Ryan Gold Corp. (RYG, TSX-V) and Corona Gold Corp. (CRG, TSX)…Oban says the combination of these 5 companies will create a leading Canadian-focused Gold exploration and development company..all are up in trading this morning with Eagle Hill enjoying the biggest price jump, adding 43 cents to 77 cents..this kind of merger activity is another sign of a bottom in the junior resource market…
Walker River Resources Corp. (WRR, TSX-V) Update
Walker River Resources (WRR, TSX-V) continues to prepare for drilling at its 100%-owned Lapon Canyon Gold Project in Nevada…drill access roads and all drill pad construction are complete, including the sourcing of sufficient water on site for drilling purposes…6 holes have been spotted, with planned lengths varying from 150 to 400 m…during exploration work that began in April, visible Gold was noted in 2 different locations in the upper adit of the Lapon Rose Zone (1 of at least 4 shear zones at Lapon Canyon), the site of underground development…this shear zone shows a minimum strike length of 4 km, has a width of over 60 m and a vertical extent of at least 650 m…high-grade Gold is hosted in what appears to be a quartz monzonite intrusive…
WRR is up a penny at 3.5 cents as of 9:00 am Pacific…
North Arrow Minerals (NAR, TSX-V) Update
Investors are expressing their disappointment with news this morning from North Arrow Minerals (NAR, TSX-V)…the company provided results of a valuation completed on a diamond parcel recovered from the Qilalugaq Project bulk sample…the parcel of 383.55 carats of diamonds greater than +1 DTC (approximately 1 mm) was valued at $13,795 or $36 per carat and a modeled range of possible values was also produced with a “possible low” model price of $43 per carat and a “possible high” model price of $92 per carat (U.S.) – 2 or 3 times that value would have prevented this morning’s sell-off but this is still early in the game…panic-selling drove NAR down to as low as 37.5 cents in early trading…the diamond valuation exercise was conducted by WWW International Diamond Consultants, an international diamond consultancy that specializes in the valuation and modelling of diamond parcels of this type…
Ken Armstrong, NAR President and CEO noted, “The diamond parcel recovered from the Q1–4 bulk sample is very small and, as a result, the primary conclusion reached by WWW is that these valuation results and modeled values should be treated with considerable caution when it comes to assessing the Qilalugaq Project. The valuation of this small diamond parcel is further challenged by the presence of two distinct diamond populations, including a population of rare Type Ib yellows diamonds. The occurrence of two identifiable diamond populations within a single deposit is unusual and was not known to exist at Q1–4 when the 2014 sample program was conceived. Additional evaluation of the project will require the recovery of a larger diamond parcel including sufficient carats from each of the two populations to allow for a more confident assessment.”
NAR is off 44 cents to 51 cents as of 9:00 am Pacific…
Kennady Diamonds (KDI, TSX-V)
Diamond enthusiasts are seeing hope in Kennady Diamonds (KDI, TSX-V) which continues to report encouraging drill results from its Kennady North…the project is immediately adjacent to the new Gahcho Kue diamond mine currently under development by De Beers Canada and Mountain Province Diamonds (MPV, TSX)…
Technically, KDI is looking quite favorable at the moment, supported by a now-rising 50-day SMA while the stock has also pushed above its 200-day SMA for the first time since late last year…
KDI is off a nickel at $5.20 as of 9:00 am Pacific…
Sign Of The Times
Facing the imminent possibility of seeking bankruptcy protection, NWM Mining Corp. (NWM, TSX-V) has received a half-cent takeover offer…it has entered into a definitive arrangement with GFM Minera SAPI de CV (GFMM), and one if its affiliates, and the company’s lender, Global Resource Fund, pursuant to which GFMM will acquire, for cash, all of the issued and outstanding shares of NWM subject to a court-approved plan of arrangement under the Business Corporations Act (Ontario)…
Although NWM has produced Gold at an annualized rate of approximately 20,000 ounces over the last 2 years, a decline in Gold prices combined with an inability to raise the additional capital required to expand production has left the company in a severely distressed position…NWM currently owes Global in excess of $25 million (U.S.) – principal plus accrued interest…going to production and generating cash flow is often riskier than exploration…
Mezzi Holdings Inc. (MZI, TSX-V) Update
In early May, John noted Mezzi Holdings‘ (MZI, TSX-V) breakout above a downsloping channel, and the uptrend has continued since then…a near-term challenge of the next Fib. resistance level appears to be in the works…
MZI is up half a penny at 29 cents as of 9:00 am Pacific…
Ohhhh, so much going on. Jon, was that you that took out 300k of GGI, cmon you can tell us, whats ya know big guy. Ohhhh, NAR hit a landmine, ouch.
OK, my humor for the day is done. Looking forward to late summer early fall on WRR. In the meantime:
OK DAN, I know you own some CRS. We should see a small correction as the PP closes at .15 here soon. If your going to add any pennies from your piggy bank, I would watch it closely next couple days and try to add lower. Once the PP closes, she is going to rise and then really rise as drilling is announced. Keep in mind this is a horizontal well which have a 97.3 success rate and no fraq is required. They are in Texas and where heavy oil exists. This is exiting times for sure. Grab your shares accordingly on the correction and then lick your chops.
Comment by dave — June 9, 2015 @ 9:05 am
I think someone posted they were in EAG – kudo’s to you on the gain, wow. Always love to see people make money and beat the MM’s on the vulture exchange. Take their money for a change, gotta love it.
Comment by dave — June 9, 2015 @ 9:11 am
Dave, I do own some cRS and hoping to pick up more on a small pullback. Thanks for your advise and making everyone aware of this play.
Comment by Dan — June 9, 2015 @ 9:39 am
MZI could be on that leg up to .37 – time will tell. She could have a healthy correction after that though. The history of the CEO is fantastic but I wonder about the revenues.
VID – way undervalued, but may actually drop lower. This is one to watch, it is developing a similar chart pattern to MZI before the breakout.
GGI – I’m waiting for the news.
CRS – I’m not hoping, I’m praying for .15 on the correction. My bids are stacked. JNX, move over your going to have company very soon.
WRR – go boys go.
I have an interesting scenerio on one but I will wait for tomorrow, I don’t want to overload. I am going to comment on something very interesting tomorrow and I would ask Jon if he would be kind enough to let John comment and maybe even with a chart.
Lets make some money.
Comment by dave — June 9, 2015 @ 9:41 am
Dan, watch for that closing of the PP – don’t wait after that for adding. I will share something with you on this play after the PP closes, but I want to wait till then.
Comment by dave — June 9, 2015 @ 10:35 am
What’s up with GGI? Lots of volume but no movement.
Comment by Dan — June 9, 2015 @ 12:01 pm
Last of the 10’s (flow-thru) are being gobbled up quickly, Dan. Probably for a reason.
Comment by Jon - BMR — June 9, 2015 @ 12:05 pm
Very nice day for GGI, biggest volume on the past year! Looking very good!!
Comment by Martin — June 9, 2015 @ 12:16 pm
I noticed that volume picked up with GGI, so took some profit in Eagle Hill and bought some more GGI. There could be news on several fronts with GGI so when someone bought 300k in one go it got my attention.
Comment by Tom UK — June 9, 2015 @ 12:17 pm
Pretty much all by the 79 house, have a really strong feeling we’re just days away from that acceleration of news flow that Steve talked about.
Comment by Tombc — June 9, 2015 @ 12:28 pm
IGO (Independence gold) is the place to be!
Comment by Ryan — June 9, 2015 @ 3:50 pm