Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has traded between $1,214 and $1,229 so far today with some downside pressure following release of a modestly stronger than expected U.S. jobs report…as of 7:00 am Pacific, bullion has fallen $10 an ounce to $1,215 while Silver has retreated 30 cents to $15.73…Silver experienced a “flash crash” shortly after 7:00 p.m. EDT last night, dropping $1.70 in minutes on huge volume of 8,500 contracts…it appears a firm or individuals couldn’t cover margin requirements and were forced to liquidate…such events typically occur at or near turnaround points in the market…base metals are relatively flat but Cobalt continues to shine – it has hit yet another new 9-year high of $27.90, giving fresh strength to some of the Cobalt plays including Ontario-based Castle Silver Resources (CSR, TSX-V), breaking through resistance at 26 cents, and Cobalt Power (CPO, TSX-V)…
2. The U.S. economy created more jobs than expected in June – 222,000 – while the the unemployment rate held at 4.4%…the key metric of wage growth was little changed from prior months as average hourly earnings for private sector workers rose 0.2%, a little less than expected which is not what the Fed wants to see…despite the fact the unemployment rate is at historically low levels, wage pressures are simply not kicking in…investors are placing about a 60% chance on the Fed lifting rates 1 more time before the end of the year, according to CME Group data based on fed funds futures contracts…
3. In what should be interpreted as a strong message to Canadian governments, Apache Corp. (APA, NYSE) announced last night that it has exited the country – Apache has sold its assets in British Columbia, Alberta and Saskatchewan for close to $1 billion…the Houston-based Oil and gas company explained that leaving Canada was part of its goal of streamlining its portfolio to focus on projects in the United States, the United Kingdom and Egypt – a polite way of saying that Canada is no longer such a great place to do business when it comes to Oil and gas, thanks to climate change fanaticism, increasing regulatory burdens, higher taxes, and native issues…jurisdictions reap what they sow…in the good old days under Ralph Klein, companies could get a drill permit in Alberta in 2 weeks – now it can take many months…Canada is making it more difficult to do business in this critical sector, in a misguided effort to “save the planet”, while at the same time the United States and other countries are making it easier…investment dollars will flow accordingly…
4. Weekly U.S. government data showed yesterday that U.S. Oil production rose 1% to 9.34 million barrels per day, correcting a drop in the previous week that was down to one-off maintenance and hurricane shutdowns…the rise in U.S. output coincides with exports from OPEC climbing for a 2nd consecutive month in June to the highest this year…meanwhile, the Wall Street Journal reported this morning that OPEC is considering imposing production caps on Libya and Nigeria…the 2 countries are exempt from the output cut deal and both have raised production significantly in recent months
5. The Venture is down 2 points at 757 as of 7:00 am Pacific but volume remains light…Ryan Kalt’s Clean Commodities (CLE, TSX-V), now chasing Zeolite, is the Venture’s volume leader with the stock up a penny-and-a-half to 6 cents…it climbed as high as 7 cents where it hit at least a temporary wall at the declining 200-day moving average (SMA)…Castle Silver Resources (CSR, TSX-V) finally appears to be breaking out above key resistance at 26 cents and a symmetrical triangle after a high volume session yesterday and follow-through this morning…CSR is up a penny at 27 cents…more news on the Cobalt front is expected shortly from CSR…the TSX is off more than 100 points in early trading while the Dow is up modestly…
6. Expect some more high-grade surface sample results soon from Jaxon Minerals (JAX, TSX-V) from the company’s Hazleton Property near Smithers…Jaxon provided an exploration update this morning, noting that several new significant massive sulphide occurrences have been identified at the historic Max zone – both stratiform and feeder/breccia systems to the overlying stratiform mineralization…the new showings and 8 newly discovered extensions to existing historical showings (along both strike and adjacent bedding) are distributed on the hillside from elevations of 539 m to 753 metres (214-m vertical extent) and over a lateral extent of approximately 1,000-m…a total of 122 rock samples have been submitted to the lab for assaying including 89 channel samples…
7. Corvus Gold (KOR, TSX) announced this morning that it has completed a $4.65 million private placement with Coeur Mining at 75 cents per share for a total of 6.2 million common shares representing 6.2% of Corvus‘ issued and outstanding shares…proceeds will be used to advance KOR’s new Mother Lode Project over the next 6 months…Coeur also has the option to complete a second private placement financing with Corvus for an additional $4.65 million (CDN) at any time until January 15, 2018, at a 5% discount to KOR’s 10-day volume weighted average price…the second financing would provide Corvus with funding for its second phase of project development work at Mother Lode and the analysis of the integration of the Mother Lode and North Bullfrog projects into a unified mining plan…Corvus acquired the past producing Mother Lode Property last month from Goldcorp USA…an important untested target for additional high-grade mineralization is the intersection of the major, low-angle east-northeast-trending Fluorspar Canyon fault zone and the high-angle north-northwest-trending feeder structures approximately 50 m below the existing Mother Lode deposit (historic non-compliant resource of 8.5 million tonnes at a grade of 1.6 grams per tonne gold totalling 430,000 ounces of Gold)…
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The Most Important Venture Development Since The New Bull Market Began
Jon, it seems someone is playing with GGI again. Hope when they release their VTEM results, they get burned.
Comment by Dan1 — July 7, 2017 @ 9:10 am
It won’t just be the VTEM that burns them, Dan1…
Comment by Jon - BMR — July 7, 2017 @ 9:47 am
I guess if one thinks the sky is falling,then sell everything and buy a lottery ticket,see how much further ahead one would be.tension around the world didn’t change overnight,in fact its going to get ugly in the days ahead,starting with a wwe style bout between putin and trump.
Comment by Laddy — July 7, 2017 @ 9:52 am
Yes, the vtem results ect, would be a bonus, what I’m mainly waiting to see is that they have commenced drilling, that shouldn’t be that far off, maybe next week?
Comment by Laddy — July 7, 2017 @ 10:20 am
http://www.gold-eagle.com/article/time-new-gold-standard-asia Alasdair Macleod is one of the more astute analysts imo for big picture perspectives.
Comment by Chris — July 7, 2017 @ 10:28 am
JAX, CXO, ESK, DEC, all drilling now in the triangle. Cmon GGI.
Comment by dave — July 7, 2017 @ 10:49 am
CSR – according to stockta.com – it is not just .26 that is strong resistance, but also .28 – now a large offer at .275
Comment by dave — July 7, 2017 @ 10:52 am
Yes, Dave, but have you looked at the symmetrical triangle breakout in CSR, just like occurred in February?…John has it in today’s report…forget about the larger offer—I would argue that’s actually bullish…
Comment by Jon - BMR — July 7, 2017 @ 11:37 am
Larger offer is bullish? I must be missing something here, that’s definitely a case of looking at the glass as half full. CPO looking strong here, looks like accumulation to me. Not sure what’s going on with GGI, Regoci is testing people’s patience again and some are walking away.
Comment by Danny — July 7, 2017 @ 12:07 pm
I wasn’t going to say it Danny. Never heard of a large offer as being bullish. CPO has a lot to chew through higher above also.
Comment by dave — July 7, 2017 @ 1:06 pm
Yes, Danny, it’s the opposite of a situation where you have an imbalance of bids vs. offers…very heavy on the bid side and light on the offer side—that can sometimes prove tricky and backfire on inexperienced traders who interpret that as a very bullish sign…the market then turns the other way and the bids are hit…seen that a lot…
Likewise, a large offer on a stock that’s taken out – obviously that contributes to increased bullishness along with higher volume…given how we’ve seen CSR trade this week, and what’s happening with Cobalt again now, some larger than usual offers don’t phase me a bit…the trend is toward higher prices and higher volume, which I’m sure we’ll see play out next week…what’s notable about CSR on the push through 0.26 resistance is how it came on the best back-to-back daily volume since February…volume is one of the best indicators there is, and we’re seeing it here…this could be the precursor to some much higher volume…
Comment by Jon - BMR — July 7, 2017 @ 1:15 pm
Dave, you and I have had this exact same discussion on this board before, so not only have you heard this previously—you’ve actually seen it…
Comment by Jon - BMR — July 7, 2017 @ 1:19 pm
CLE – no shortage of volume today. Jon, i haven’t seen CLE mentioned here for quite some time. Can I get your thoughts on the financing announced near close? Seems low but there is the provision regarding insiders… that seems positive to me.
Comment by Charles — July 7, 2017 @ 1:39 pm
Charles, Ryan Kalt has made some smart moves over the past year in terms of picking up some great ground – but where he has struggled is leveraging that and converting that into sustained market action…some cheap financings haven’t helped…latching on to a hot area or a hot commodity just isn’t good enough in today’s market environment…
Comment by Jon - BMR — July 7, 2017 @ 1:48 pm
Jon, you are assuming the large offers get taken out. I guess I am not making the assumption that they will get taken out for sure. A large offer by itself is not bullish in my book.
No question dave that CPO has some shares to chew through because of the financing it has done but the big volume the this week (I think approx 12 million) has to be reason for optimism.
Comment by Danny — July 7, 2017 @ 2:19 pm
You’re right, Danny – and that assumption is made based on a range of dynamics…involves some forward thinking…I didn’t say any large offer on a stock is bullish – that’s obviously not the case at all, of course…however, depending on the circumstances and the direction of the trend (in this specific case, with CSR, those factors are bullish), a bigger than usual offer size that appears can be a very bullish set-up…hence my comment to Dave that I was interpreting the bid-offer alignment as very favorable in this particular instance…there are clear signs that pros have stepped into the CSR market and I believe that bodes well for some fireworks next week…
Comment by Jon - BMR — July 7, 2017 @ 2:30 pm
Thanks Jon!
Comment by Charles — July 7, 2017 @ 8:52 pm