Gold has traded between $1,225 and $1,243 so far today…as of 10:00 am Pacific, bullion is up $13 an ounce at $1,241…Silver is off a nickel to $15.16…Copper has lost a penny to $2.09…Crude Oil is 59 cents lower at $31.56 while the U.S. Dollar Index has retreated nearly one-fifth of a point to 97.33 (strong resistance around 98)…
Holdings in global exchange-traded funds rose yesterday for a 10th consecutive day, jumping another 10 tonnes…Commerzbank noted, “Since the beginning of the year, holdings in the Gold ETFs tracked by Bloomberg have been increased by 215 tonnes, or 14.7%, and by 160 tonnes since the start of February. For as long as uncertainty persists among market participants and the Oil prices and stock markets show no clear upward trend, Gold is likely to remain in considerable demand, allowing the price to gain accordingly,” Commerzbank added…
Some producers are using the current strength in Gold prices and higher stock valuations to raise money to improve their balance sheets…Kinross Gold (K, TSX) says it has entered into an agreement with a syndicate of underwriters, led by TD Securities and Scotiabank, for a bought deal public equity offering of 83.4 million common shares of Kinross at $3 U.S. per share for proceeds of some $250 million (U.S.)…the offering is expected to close around the end of next week…
Citigroup Warns Of Global Growth Slowing To 2% For 2016
The risk of the global economy falling into a “recession” (2% growth or less as defined by Citigroup) is rising as fundamentals remain poor, Citigroup analysts said yesterday. “We are currently in a highly precarious environment for global growth and asset markets after 2 to 3 years of relative calm,” they noted, adding that global growth was “unusually weak” in the 4th quarter at around 2% on-year. “The most recent deterioration in the global outlook is due to a moderate worsening in the prospects for the advanced economies, a large increase in the uncertainty about the advanced economies’ outlook (notably for the U.S.) and a tightening in financial conditions everywhere,” the bank said…
Fed Official Concerned About Weak Inflation
A top Federal Reserve official yesterday reiterated his opposition to further interest rate hikes given that U.S. inflation expectations have fallen and, in fact, threaten the central bank’s credibility…in a speech before bond traders, St. Louis Fed President James Bullard (voting member of the FOMC) said he regarded it as “unwise” to continue an interest rate normalization strategy in an environment of declining market-based inflation expectations. “The so-called break-even expected inflation rate in 5 years’ time has dropped as global markets sold off this year, and investors are now predicting a price measure of less than 1.5%. That represents an erosion of central bank credibility with respect to the inflation target,” Bullard stated…
In today’s Morning Musings…
1. Strong upside still evident for the TSX Gold Index…
2. Probe Metals (PRB, TSX-V) negotiates an attractive deal as the company returns to an area where its team has enjoyed great success…
3. Another Lithium company with interesting prospects for 2016…
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…
PE – here is a couple of new pieces of information on PE. One from Twitter, one from company email.
Nevada Lithium Bull
@NVLithiumBull
I’m hearing that @pureenergyminer will be doing a presentation & plant tour at #TESLA and possibly $PE.v project discussions on 25th & 26th
Likes
2
TraderJ
“Pure Energy Minerals Named the Top Performing Mining Company on the TSX Venture 50” – Pure Energy Minerals Website
Comment by Vepper — February 25, 2016 @ 11:18 am
Jeremy – Yes, bail. PHM broke below triple bottom low.
Comment by dave — February 25, 2016 @ 12:29 pm
Vepper – I absolutely love PE and may buy some of it late next week, so please don’t take this post out of context. You have to look at percentages gained. So if stock A goes up 20 cents and stock B goes up 3 cents, stock B might actually give you more money. Lets take a scenario.
If EQT goes up 3 cents to 8 cents, that is a 60% gain on your money. PE would have to soar to .99 for the gain to be equal. La de de, la de da.
Comment by dave — February 25, 2016 @ 1:04 pm
Dave – Don’t wait too long to buy PE, 43-101 coming soon. With the extended (deeper than expected total depth, hole #5 could be a in large aquifer. They stepped out a ways and I’m hoping for at least a double in the inferred resource of 816,000 metric tones LCE. I hear PE will also have an updated website in next 1 -2 weeks c/w drone footage of drilling, etc.
Here is a excerpt from CNW “In February of 2016, Pure Energy was able to conclude its Phase 2 drill program in Clayton Valley South with five successful wells completed. Plans for the first half of 2016 will include; proposed pumping tests, the start of Phase 3 drilling, larger scale process testing in a mini-pilot plant, a host of internal studies and updates, and the start of the Preliminary Economic Assessment.” (PEA due in June or July). See full promotional story from today:
“This Emerging Lithium Producer Could Disrupt the Entire Industry” – Newswire website
I’ll keep my PE. My percentage increase is quite good based on my entry point.
Comment by Vepper — February 25, 2016 @ 1:46 pm
Thanks Vepper – I want my 60% on EQT first next week. Then I will consider. Actually short term XMG should do better than PE. They have much more lithium than PE.
Comment by dave — February 25, 2016 @ 5:16 pm
MEK and BSX, 2 more that have doubled quickly on top of the 4 I put out the other day. And I am sure there are some I do not know about. Gold is back.
Comment by dave — February 25, 2016 @ 9:55 pm
ABR news again, acquiring new claim: These new claims are contiguous to the existing ELON claims already held by Ashburton. Additionally, these claims border both Pure Energy Minerals Ltd. (PE-TSX:V) and Lithium-X Corp. (LIX-TSX:V) making the entire Elon project now enclosed between the two companies.
This stock can’t stay at 1.5 cent forever…
Comment by rgiroux — February 26, 2016 @ 6:48 am
Fairmont Resources Inc. (TSX VENTURE:FMR)
Jon, you used to cover this one, and you were very upbeat about it. It is quite in the lows now. Any comment on the news release from yesterday (25 Feb):
Michael Dehn, President and CEO of Fairmont states “Having completed holes
intersecting material thicknesses of quartzite in Zones A, D and F, along with
the historical holes demonstrate that there is a large target of quartzite zones
over many kilometres of strike length on the Forestville Quartzite Property.
With additional work we expect to be able to show volumes and grades of several
of the zones and hope to be able to start permitting this year.”
Comment by rgiroux — February 26, 2016 @ 6:53 am
Richard, the chart for FMR is looking better and that may indicate higher prices in the offing…however, we’re wary about FMR as Dehn was not able to deliver anything close to his goals for this company for 2015…he’s a good guy, I met him in Toronto, and maybe it’s just a matter of timing but FMR struggled last year, related I’m sure to the overall markets…other companies in that area and sector in Quebec that have performed much better are UBR and RRS…I would rank them well ahead of FMR at the moment…
Comment by Jon - BMR — February 26, 2016 @ 7:15 am