Gold has traded between $1,048 and $1,064 so far today…as of 10:15 am Pacific, bullion is up $7 an ounce at $1,060…Silver is 7 cents higher at $14.04…Copper is flat at $2.08…Crude Oil has surged nearly $2 a barrel to $41.69 while the U.S. Dollar Index has tumbled 2 points to 98.05 due to a stronger euro and an ECB policy decision that disappointed the markets by not being robust enough on the stimulus side…the greenback came very close to its March high this morning before a sharp pullback on the ECB news…
Holdings in the SPDR Gold Trust, the largest exchange-traded product backed by the metal, dropped 2.4% yesterday to 639.02 metric tons, data on the fundâs website show…that was the largest single-day tumble since January, 2011 – another bullish contrarian sign that Gold bugs are throwing in the towel…assets are at the lowest since September 2008…
Gold imports by India, the worldâs second-biggest consumer, more than doubled in November as a slump in global prices to a 5-year low stoked demand amid the peak festival and wedding seasons…overseas purchases last month climbed to 101 metric tons from 45 tons in October, according to a Bloomberg report…in the 8 fiscal months through November, however, imports dropped 22% to 655 tons from 841 tons a year earlier…
Newmont Mining (NEM, NYSE) expects all-in sustaining costs (AISC) for production of Gold to remain under $1,000 an ounce through 2020, the company said late yesterday. âWe expect to keep our all-in sustaining costs below $1,000 per ounce and maintain profitable production of between 4.5 and 5 million ounces of Gold per year over the next 5 years,â said Gary Goldberg, President and CEO…
Euro Surges As Super Mario Disappoints
The euro surged to a 1-month high and stock markets in Europe got hit hard after the European Central Bank served up a package of stimulus measures today that fell well short of many investorsâ expectations…the central bank cut interest rates slightly and extended its bond-buying program by 6 months…for investors, the ECBâs moved marked a major disappointment from a central bank whose offerings had typically surprised them on the upside…today, it was felt that ECB President Mario Draghi’s actions didn’t match his rhetoric…he also made it easier for Fed chair Janet Yellen to initiate a rate hike in 2 weeks…
Yellen Further Prepares Market For U.S. Rate Hike
Yellen reiterated her outlook on the U.S. economy today…she said that the economic data since October is consistent with the central bank’s expectations of an improved labor market, adding that the Fed has almost achieved its goal of full employment…she also said that drags on inflation will diminish next year, but of course we’ve heard that from the Fed repeatedly the last few years…inflation, by the Fed’s preferred measure, has run below its target for 42 consecutive months…
Yellen spoke in front of Congress today after stating in a speech yesterday that she’s “looking forward” to the day when the central bank raises rates…futures markets now put a 75% probability on a quarter-point rate increase at the Fedâs December 15–16 meeting…Yellenâs comments since yesterday have done little to diminish those expectations…
âOn balance, economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market,â Yellen said in her speech yesterday.  âContinuing improvement in the labor market helps strengthen confidence that inflation will move back to our 2% objective over the medium term.
âI donât need unanimity. I think we have to tolerate some dissent,â Yellen added in reference to a possible rate hike. âI wouldnât try to stifle dissents, and I would even expect some at critical junctures.â Rather than complete unanimity, she said she wanted âa certain degree of consensus.â
In todayâs Morning MusingsâŚ
1. Electra Stone (ELT, TSX-V) aims to cash in on the growing demand and increasing prices for B.C. nephrite jade…
2. Integra Gold (ICG, TSX-V) ramps up at Lamaque South, 100,000 m of drilling planned for 2016…
3. A Venture company that stands to benefit from the “infrastructure trend” in Canada…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
The Venture 2.5 pts away from achieving ANOTHER all time low. Funny how nobody is mentioning this.
Comment by Tony T — December 3, 2015 @ 11:55 am
you just did Tony. whats wrong with that? buy low sell high.
Comment by moemoney — December 3, 2015 @ 12:02 pm
Dave- further George’s post #63, is this scenario simply a reason for delay, or is it something that could possibly have significant implications for the short term SP (positive or negative)? And the line of ” I donât like holding any stock right before assays come. This has proven to be dangerous”- is this in relation to the scenario at EQT (something EQT holders should read into) or was it just a blanket statement (as you have explained before). Thanks again for all your valuable input- we really appreciate it.
Comment by johnz — December 3, 2015 @ 4:57 pm
Any thoughts on blo? Long time since we have heard news
Comment by Matt — December 3, 2015 @ 5:11 pm
Wonder if Regoci will give s more to chew on over the weekend? Like more drill core pics, exact position of hole 5 and location of hole 6 would be fine with me.
Comment by Dan1 — December 3, 2015 @ 6:08 pm
BLO.. should react once the fed gov confirms legalization in throne speech tommorrow… some moron sold 12K at market this day questrade dummies!!!!:) dropped the SP.. have emailed IR 4 x and nothing back!!
Comment by Patricia — December 3, 2015 @ 8:01 pm
Dave/EQT – I am confused, you you been given some info that you wont elaborate on that is positive speculation and mentioned it to us as being important but don’t hold the stock as you would rather wait for assays…..?
Comment by George — December 3, 2015 @ 8:44 pm
Correct, nothing confusing about it. There are no lines to read through here. I do not like holding just prior to assays. Too many disappointing situations time after time. I do hold a small position in EQT just in case. I will buy more EQT if the chart situation warrants it, but only for a trade. There is just too much money to be made after if the assays are a home run. I am speculating on a situation that is holding up assays, yes info given to me. This is just us guessing together, no rumor, and not talked about anywhere. Lets let the assays do the talking. I will say that EQT is one of the rare ones that gives a reason to hold. This goes off all the past DD prior to drilling. For those who hold a lot, lets hope it a Merry Christmas.
Comment by dave — December 3, 2015 @ 10:27 pm
George – I do not recall saying that the situation with EQT was important, I merely said that it could be causing the delay in assays. They are expected next week, that does not mean promised.
Comment by dave — December 3, 2015 @ 10:34 pm
@dave. Excuse me for asking but you cheerlead/pumped eqt on a daily basis months ago. Now just before they announce initial results u do not have a stake. U own ggi who are waiting lab results. But u stated that u don’t own shares of companies awaiting assays. What gives? Your messages are getting mutt led lately
Comment by seamus — December 4, 2015 @ 3:42 am
Post 8. Mutt led = muttled
Comment by seamus — December 4, 2015 @ 3:43 am
Finally the new DBV power-point presentation is out.
Have a look at slide 4 with the core pictures. My eyes see some very nice calchopyrite…..looks highly mineralized! No idea what hole this is but hopefully this is the remainder of H23 or H24!
Comment by DDD4 — December 4, 2015 @ 5:58 am
DBV- right DDD4 very nice Calchopyryte and in the picture the slide 1 is very nice Calchopyrite !
Comment by Guy Delisle — December 4, 2015 @ 6:16 am
doubleview.ca/investor-information/powerpoint-presentation/
Comment by ConcernedCitizen — December 4, 2015 @ 6:23 am
Nice presentation, this demonstrates how the Hat is coming together as a world class deposit, and why this is B.C.’s #1 greenfield district.
Comment by Jon - BMR — December 4, 2015 @ 6:33 am
Now if Farshad can just get some $$ asap and start the drills!
Comment by Steve A. — December 4, 2015 @ 6:57 am
This has been a classic example of a weak in which to buy on weakness…the Gold dump was overdone, the Gold Index and the HGU are taking off, and the Venture and quality juniors are going to start moving as well. It is BUY time.
Comment by Jon - BMR — December 4, 2015 @ 7:09 am
Jon: do you see this rally having some legs?….
clivemaund.com/article.php?art_id=3638
Comment by STEVEN1 — December 4, 2015 @ 7:20 am
I have a lot of respect for Clive’s work, Steven1, especially his excellent studies on the COT structure. However, John’s charts have proven to be tremendously reliable on Gold which is another reason we went long on the HGU recently for double leverage on this anticipated move.
This is the time to gobbling up as much as possible that has looked the best in recent weeks/months in the junior sector, because the Venture has a big move written all over it as we go thru December (the last half especially), January and February. We’ll be highlighting those plays Sunday.
Comment by Jon - BMR — December 4, 2015 @ 7:33 am
I am very impressed with DBV’s new investor presentation. The technical data and share structure information are particularly useful. Great job!
Comment by Jamie — December 4, 2015 @ 7:42 am
Walker finally announces the start of drilling…
Comment by Jon - BMR — December 4, 2015 @ 8:19 am
seamus – your incorrect. I do have a small position in EQT. I don’t own any GGI.
Comment by dave — December 4, 2015 @ 8:20 am
PHM seems to be starting another leg up. Keep in mind that double bottom where the second bottom did not fall below the lower bollinger band. Over the coarse of a few months the stock will uptrend. Good looking chart on PHM.
DBV – nice job.
Comment by dave — December 4, 2015 @ 8:23 am
Yes Jon, WRR has to be watched. A lot of resistance at .04 with paper pushing through, but it could move in time.
Comment by dave — December 4, 2015 @ 8:24 am
Hi Dave, about PHM I thought you said that the second low as to be within a half a cent of the first one to be valid?
Comment by jasi — December 4, 2015 @ 8:41 am
Jasi – That was on KEK, not PHM. – PHM is in a nice uptrend. Remember, when you mentioned KEK and I corrected you and told you to be careful with it cause the two lows were .32 and .36 and the bollinger band rule did not apply.
Comment by dave — December 4, 2015 @ 8:58 am
PE – looks like we are close to .50 not holding and she starts a further downside. Good one to watch from .35 to .38 for a correction candle. The key with any stock in a downtrend is to look at the buyers and sellers. PI still pushing their paper through in odd lots. When the odd lots end with PI, TD, and CIBC and you have a correction candle, then you know that you hit bottom.
Comment by dave — December 4, 2015 @ 9:11 am
YFI could hit a decent break out soon. Resistance is at .28 – then minor resistance at .33 beofre hitting .46 – They are expecting big news coming anytime. the key here is not to let the .28 get away when the volume increases. Yesterday was a key sign on volume something is brewing. If their news is on the announcement of the Fortune 500 company, its going to make GGG move this week look like a piece of swiss cheese. YFI is in watch mode.
Comment by dave — December 4, 2015 @ 9:17 am
yes, like to hear what Jon thinks of WRR,etc…..great report that was written up in the spring when they ‘were’ going to drill….wouldn’t mind seeing it again now that they are ‘finally’ drilling……project looks interesting….I think Jon said this has the potential like BLO did when it was around 5 cents and exploded to like 60 that time!?
Comment by STEVEN1 — December 4, 2015 @ 10:16 am
WRR’s strategy, I’m sure, Steven1, will be to drill immediately into known high-grade zones, so the opportunity for initial success here is very high IMHO. They know they need a high-grade hit right off the bat, and that’s what they’re aiming for. It will get more complicated and risky, of course, on step-outs. The trend runs for a considerable distance, however. As Dave indicated, lots of paper to churn through but a couple of great holes and high volume can solve that problem. It does have explosive potential (BLO, non-mining deal of course, actually went from a nickel to 77 cents) but I’m not calling for that kind of a move yet on WRR, until initial results are in and we see how the system looks. However, WRR should gain nice traction from here by early in the New Year IMHO, and they’ll definitely be helped if there’s improved sentiment in the Gold sector as we expect.
Comment by Jon - BMR — December 4, 2015 @ 10:30 am
WRR- It’s possible to have the first result before Christmass, the 6 first hole as only 150 meters….probably 2 holes per week ! The hole are send to Reno Lab.
Comment by Guy Delisle — December 4, 2015 @ 10:43 am
I doubt it, Guy. They may be able to provide visuals – certainly some sort of an update – but don’t bank on assay results by Christmas for WRR since they just started drilling. Labs just aren’t that quick right now.
Comment by Jon - BMR — December 4, 2015 @ 10:48 am
WRR – middle of Ja. for first round at the earliest.
Jon, post #30 was well written and thought out. I agree, there is no way WRR sees the 60’s this early. the non-mining stocks do much better than the mining stocks when they are being pumped. Examples this year – NPH, YFI, SEV, SLC, BLO, NSP and on and on. If this were pre 2007, that would be different.
Comment by dave — December 4, 2015 @ 10:57 am
Jon/Dave – I don’t understand why you guys both think there’s a lot of paper to go through. Just checked level 2 up to .05 there’s just over 1 million shares offered. With any decent results that paper will disappear in a hurry. This stock is cheap at current levels with a market cap of around 1.5 million, its a BUY!!! IMO
Comment by Jeff — December 4, 2015 @ 11:06 am
WRR-Jon, Michel told me that he goes each week at Reno for bring core probably with 2 hole ! Reno is at 150 KM. but I understand that Christmass is soon !
Comment by Guy Delisle — December 4, 2015 @ 11:07 am
Jeff – its NOT what you see on level 2, it is other paper involved that will keep showing up at .04 as it has the last 2 months when WRR hit it. There is someone with I believe 8 million warrants that is passing it along and wants out. I may be off on that number, but it is huge. There are things that you need to know about a company rather than just looking at L2.
You want some more examples: why don’t you look at level 2 on PE and go buy it go ahead, or how bout ELT, RYU, I can name many more.
You must have KNOWLEDGE because that is power.
Comment by dave — December 4, 2015 @ 11:26 am
Just since Oct. 27, WRR has hit .04 17 times, yes 17. It hasn’t been able to break it. There is a REASON for it.
Now, I am not saying that it won’t go up on good results, but it is going to take a lot of trading at .04 to clean this guy out with the overhang. This is all that I am saying.
There is a lot of overhang on PE and ELT. ELT was the one that I was going to bring to the board last Friday when I mentioned about a new pick. IronicallyJon brought it to the bmr members on Monday. I like the story and it may give a small run here very soon. But in my digging, I discovered 2 things. I did not mention ELT last Friday for these reasons:
1. They will have to do another financing
2. They have 21 million warrants outstanding.
3. I didn’t think anyone here would have seen the value in it.
Now, for ELT, the CEO is the first I have seen in many years to admit somber about the warrants. He is not happy about this and admits that it could hold the price down for a while. However, there is a lot of muscle in this, my contacts for one, but they got in at .05. The CEO is in China now looking to sign a huge deal for this Jade. If the contract goes through, ELT will move up some but the warrants come right behind it holding the run down some, so maybe .14 tops for now. If the deal isn’t signed next week, this stock is dropping.
Comment by dave — December 4, 2015 @ 11:47 am
Jon, KSK SP down to 1.5 cents. The results didn’t impress the market. Do you see some sort of catalyst that will move the SP in the near future?
Comment by Dan1 — December 4, 2015 @ 11:49 am
Didn’t think .135 was in the cards with GGI considering what may be revealed soon at Grizzly central.
Comment by Dan1 — December 4, 2015 @ 11:53 am
Dan, it wasn’t that those Teck results didn’t impress the market. It was that there is no immediate follow-up drilling taking place, nothing for the market to immediately look fwd to, no near-term catalyst. In addition, KSK at the moment is doing nothing to market their story. I believe the dynamics of that whole situation will change in the New Year. It’s an obvious smart buy at current levels for patient investors as we stated earlier.
Comment by Jon - BMR — December 4, 2015 @ 11:54 am
Jon – I agree on KSK, for a long term hold you can’t go wrong. Another sleeper I have my eyes on is MKN. They have a lot to chew through to .04, but if they hit it should move. I have not done enough DD to know where they are at in reference to NXE which I like a lot.
Comment by dave — December 4, 2015 @ 12:04 pm
MKN – I have to do more DD. Right now my time is limited with the house closing and me moving.
Comment by dave — December 4, 2015 @ 12:05 pm
dave, you made some great points about the warrants, share structure is one of the first things I look at. I did look at ELT, it’s a very interesting story. Of the warrants, 12.4 million can be exercised at .15, the rest at .10 so it could keep the price down short term but sometimes all it takes is 1 really good piece of news to blow through much of it. At least the warrants being exercised puts money in their kitty. I did take a small position.
Another interesting one is Zonte (ZON), big move up today on speculation they could win a court case down the road. Wish I had bought more. It’s a gamble but a publication in Columbia (no political risk there) came out with a story recently that says they could. It’s a gamble.
Comment by Danny — December 4, 2015 @ 12:24 pm
Dave – one minor detail you overlooked is that when it hit .04, 17 times they WEREN’T drilling, now they are. That .04 overhang won’t be there next week…is it true that you sold 94% of your EQT???? Know something that we don’t??
Comment by Jeff — December 4, 2015 @ 12:27 pm
Thanks Danny – When I spoke with the CEO on ELT, he said that the warrants were at .05 and .08. Not sure about the .10 and .15 or where you coming up with this figure. I found him to be very honest and he beleived in calling it like it was which is my motto. What I’m thinking is that the warrants came in at a cheaper price when they did the financings. I am not down on ELT or WRR for that matter, I am just saying they have some to get through before moving up on a run. I will take a look at ZON.
Jeff – first off, a wise investor never shares his position and what he is doing with it as far as size. second, and I don’t mean to come across rude, but is it any of your business how much I sold or how much I held in EQT, and mostly, does it matter!
Comment by dave — December 4, 2015 @ 12:51 pm
Jeff – in my honest opinion, neither Dave or anyone on this board knows something more than the other about EQT or any other stock. They might have more insight as to some of the technicals when it comes to geology but that’s about it. One they want to pump DBV and EQT they pump and when they decide to sell they sell. We don’t know what’s the truth or what’s a lie.
Comment by 02charoc — December 4, 2015 @ 1:14 pm
dave, got it directly from Sedar (see below), this was for the period ending Sept 30/2015 so I assume it’s the most recent. Unless they got repriced somehow. Now the company did a PP in May for 40,000,000 units at .05 with a warrant at .10 and in June did a PP at .08, perhaps that’s what you are thinking of, the overhang from the PP not the warrants,
Electra Stone Ltd.
(formerly Electra Gold Ltd.)
Notes to the Condensed Interim Consolidated Financial Statements
For the three and nine months ended September 30, 2015 and 2014
(Unaudited â Prepared by Management)
(Expressed in Canadian Dollars)
_____________________________________________________________________________________
The following warrants are outstanding as at September 30, 2015:
Expiry Date Exercise Price
Number of
Shares
Remaining
Contractual
Life (Years)
October 10, 2016 $0.10 3,860,000 1.03
December 5, 2016 $0.10 3,400,000 1.18
March 4, 2017 $0.10 1,850,000 1.43
April 23, 2017 $0.10 1,980,000 1.56
June 9, 2017 $0.10 800,000 1.69
June 26, 2017 $0.15 12,466,800 1.74
Total 24,356,800
Weighted average remaining life of warrants outstanding 1.44
Comment by Danny — December 4, 2015 @ 1:47 pm
Danny, there was NO financing of ELT of 40 million shares at a nickel earlier in the spring. Thankfully, it was cancelled. Refer to October 26 news release. There was a raise of just under $1 million in hard dollars at 8 cents per unit (included one full warrant that can be exercised at 15 cents for 2 years) completed in late June.
In August the Exchange approved a debenture financing (just 2 placees, including the Pres./CEO) for $850,000 with the following terms:
“This is an unsecured two-year convertible loan bearing 12-per-cent interest per year. The lender has an option to convert up to 100 per cent of the principal amount of the loan outstanding plus interest compounded into units of Electra. The conversion price is five cents during the first year and thereafter the greater of 10 cents and the market price as defined by TSX-V policies. Units are described as one share and one warrant, with each warrant being exercisable to purchase one share at any time during the 24-month period from the issue date.
“The proceeds will be used for equipment purchases, jade project development, continuing operations and corporate development.”
Comment by Jon - BMR — December 4, 2015 @ 2:08 pm
Thanks for clarifying Jon, I should have read a little further. Yes, thankfully it was cancelled. My apologies for the inaccurate statement. My bad!
Comment by Danny — December 4, 2015 @ 2:16 pm
Actually, Jon and Danny, I’m just going by what the CEO told me. I looked at sedar and saw 21 million warrants out.
Comment by dave — December 4, 2015 @ 2:20 pm
The Sedar I was looking at was for end of June. I myself will look at it again, but the CEO actually had me on a live hold while he was looking it up. He actually cracked a joke saying that as a CEO you would think he would know this.
So the question is, what is really correct, cause his version differs from Sedar. But I do like ELT. Next week will be key to whether it breaks out or not and how high.
Comment by dave — December 4, 2015 @ 2:26 pm
Jon, I noticed this from the early warning report on November 17 for ELT. I assume this is where a lot of the current selling is coming from.
Zimtu proposes to sell at total of up to 3,939,087 common shares at a price of $0.02 or
higher through a private of sale of 1,500,000 common shares at $0.02 and the balance of
up to 2,439,087 through the facilities of the TSX Venture Exchange.
Comment by Danny — December 4, 2015 @ 2:35 pm
dave, the filing date for the numbers I posted was November 30,2015 so it’s pretty recent.
Comment by Danny — December 4, 2015 @ 2:39 pm
Thanks again Danny. Wow, now you find that on the early warning. frankly, how do we know exactly what they have out. Again, I’m going by what the ceo told me. Maybe he has it right.
Comment by dave — December 4, 2015 @ 4:05 pm