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June 1, 2016

BMR Morning Market Musings…

Gold has traded between $1,206 and $1,221 so far today…as of 9:30 am Pacific, bullion is down $8 an ounce at $1,207…Silver is off a nickel at $15.90…Copper is down 3 cents at $2.11…Crude Oil, after a strong May, shed over $1 a barrel in early trading this morning but has recouped those losses and is now almost even on the day at $48.95 while the U.S. Dollar Index is off one-quarter of a point to 95.56

Despite falling for 9 straight sessions and losing $75 or 5.8% for the month, Gold prices held support at $1,200 in May while of course also remaining above the rising 200-day moving average (SMA) in the mid-$1,160’s…significantly, the Venture actually gained 3 points in May to 678 – unusual given the pullbacks in Gold, Silver and Copper…by shrugging off losses in those markets, the Venture as a leading indicator is telling us that the primary trend in precious metals remains bullish and that the rally in the U.S. dollar is not sustainable…

Any desire by the Fed to raise interest rates this month will be complicated by the news that public opinion in the UK may have shifted toward an exit from the EU in the referendum slated for June 232 Guardian/ICM polls, published yesterday, suggest as the referendum campaign picks up pace, voters are split 52% to 48% in favor of a “Brexit”, whether surveyed online or by phone…previous polls have tended to show voters surveyed online to be more in favor of Britain leaving the EU…but in the latest ICM research, carried out for the Guardian, both methodologies yielded the same result – a majority in favor of leaving…the Fed meets 1 week ahead of the vote…

The Organization for Economic Cooperation and Development (OECD) is increasingly pessimistic about the global economy and is warning that the “low-growth trap” will continue if governments don’t change tack on spending and trade…overall, the OECD is forecasting global growth of 3% this year and 3.3% next year…both are down one-third of a percentage point from the organization’s November outlook…

In its Global Economic Outlook, the OECD reiterated its view that a so-called vote for Brexit in the country’s upcoming referendum “would depress growth in Europe and elsewhere substantially”…it also says Europe’s refugee surge – and the lack of a unified response – also threatens global financial stability…

China’s official purchasing managers index (PMI) came in at 50.1 for May, steady on April’s level and above a Reuters poll forecast for 50.0…however, the non-manufacturing component fell in May, showing slowing growth in services activity…in addition, the Caixin China manufacturing PMI, which focuses on smaller companies, fell in May to 49.2, which was below expectations…

In today’s Morning Musings…

1. New month begins – what the seasonality charts say for June for both the Venture and Gold

2. Lithium surprise in Utah? – overlooked area with sound geology could be a big score for Umbral Energy (UMB, CSE)…

3. Kinross (K, TSX) invests more into Colorado Resources (CXO, TSX-V) as CXO closes financing and prepares to drill at KSP…

4. Updated charts for ASC, CLZ and KSK

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

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13 Comments

  1. DBV – Up 20% to 0.12$ today. Sounds like news is coming!

    Comment by Reno — June 1, 2016 @ 9:38 am

  2. Yes, looking good, Reno.

    Comment by Jon - BMR — June 1, 2016 @ 9:39 am

  3. Anyone heard when we might expect the first DBV news release regarding the remainder of H23? Hopefully DBV provides a steady stream on NRs going forward to make up for lost time.

    Comment by Steve A. — June 1, 2016 @ 11:20 am

  4. Can’t say Steve. One thing’s for sure, the results aren’t in DBV’s hand, or they would have had to disclose them.

    There was a news expected yesterday, but it didn’t happen. Maybe post market today?

    The news stream should start soon, though I’m guessing we can’t really expect a NR every other day or so. They might be a week apart from one another.

    Big player bought 300 000 shares in two days (TD). Which is a good sign.

    The resistance level is nearly non-existant (159 000 seller volume). Once the news get going, there won’t be much in the way to higher levels!

    Good luck to all.

    Comment by NickB — June 1, 2016 @ 12:09 pm

  5. Good news for DBV should also be OK for GGI shouldn’t it.

    Comment by Carl Sundmacher — June 1, 2016 @ 12:38 pm

  6. ANY UPDATE ON GGI JON? LOOKS LIKE THE SELLER AT 8.5 IS FINISHED SELLING!

    Comment by STEVEN1 — June 1, 2016 @ 2:24 pm

  7. Too bad about Gbb. Thought it would gain momentum after cofa not drop like a stone. I guess the sell on news mantra pays off once again.

    Comment by Matt — June 1, 2016 @ 4:54 pm

  8. Hi guys,

    Are you still following Fairmont Resources (FMR)? It’s up over 900% since February this year. It did almost 6 million shares today doubling from $.085 to $.18. I recall BMR mentioned FMR several times in the past based on its industrial minerals projects. FMR has now acquired a lithium property in addition to a recent deal to purchase a Spanish stone mine business for close to 5 million dollars. FMR has a very tight share structure at 22,000,000 shares outstanding (which will change if the Spanish deal is equity financing and not debt) which may account somewhat for todays massive trading volume and spike in price as there are not a lot of shares available.
    Any ideas? Is it the lithium? or the stone business? Is there some real value here or is it just speculators having a go at “another lithium” project?

    John

    Comment by John — June 1, 2016 @ 6:30 pm

  9. Hi John, yes, we’re still following FMR—-I guess we were a year early on this play when we first uncovered it in January of last year. I was hoping they would get into the Lithium space in addition to their industrial minerals exposure. Right now it’s both that are helping drive the stock. Will provide an update for subscribers in the coming days.

    Comment by Jon - BMR — June 2, 2016 @ 2:28 am

  10. Thanks Jon.

    Comment by John — June 2, 2016 @ 4:57 am

  11. Thanks Nick – I agree, DBV is poised to take off if all things fall into place. Hopefully Farshad has the new worker contracts completed and they are back at the site – I’m assuming maybe that is the next NR you talked about for this week.

    Comment by Steve A. — June 2, 2016 @ 5:20 am

  12. Jon

    any rumors or news from Regoci on Rambo results? Shouldn’t they have results back by now?
    thanks

    Comment by GREG — June 2, 2016 @ 6:00 am

  13. Steve, DBV won’t be on the property or drilling before a financing is done. Maybe about a week or so.

    It appears news won’t be out before next week.

    On a side note: Can anyone explain what today’s “Constant selling of 500 shares every minute” by TD means or represent?

    Comment by NickB — June 2, 2016 @ 7:39 am

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