Daily Market Wrap – Mon 20 Mar, 2017

Gold stocks sharing in the move up for gold

We finally saw some follow through on the stock side of gold. It did come on lower volume but throughout the day I was seeing some nice gains in select stocks that were sustained by the market close. In this market wrap I discuss the strategy that Doc and I are employing and some of the factors to consider before making the move into these stocks for a long term play.

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Featuring:
Cory Fleck
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Comments:
  1. On March 20, 2017 at 2:00 pm,
    Silverdollar says:

    “for a long term play”…How long do you plan on holding for your long term thoughts to come to fruition, Cory?

    • On March 20, 2017 at 2:43 pm,
      Cory says:

      Hey Silverdollar,

      If I am correct and we are just starting another bull market then it could easily run for 4 – 5 years. In terms of the stocks starting to move I am expecting this to happen toward the later part of this year (Q4) or in Q1 of next year.

      Thanks for asking me to clarify 🙂

  2. On March 20, 2017 at 5:35 pm,
    Steele says:

    Gold price hits 2-wk high as Fed rate outlook weighs on dollar. Meanwhile, interest rates continue to fall after the Fed decided to rates interest rates. :O

    http://www.gold-eagle.com/gold-price-hits-2-wk-high-fed-rate-outlook-weighs-dollar

  3. On March 20, 2017 at 11:17 pm,
    Excelsior says:

    Sabina Gold and Silver March 2017 Corporate Presentation Video

    CEO.CA – Subscriber Investment Summit

    https://www.youtube.com/watch?v=8t9ND36_f5k#t=446.048047

    • On March 21, 2017 at 1:30 am,
      Excelsior says:

      $CNX $CLLXF Callinex Acquires High-Grade Tara Lake VMS Deposit Near Flin Flon, MB (Marketwired – March 20, 2017)

      > Agreement to acquire the Big Island Project located near Flin Flon, Manitoba that includes a high-grade Volcanogenic Massive Sulphide deposit;
      > Previous drilling at the Tara Lake Deposit is highlighted by results including 7.4m of 35% Zn Eq, 12.4m of 34% Zn Eq. and 19.6m of 24% Zn Eq., with no subsequent exploration conducted since 1991; and
      >Callinex now controls over 100 sq. km land package within the Flin Flon Mining District. #Zinc

      https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1301-tsx-venture/cnx/30395-callinex-acquires-high-grade-tara-lake-vms-deposit-near-flin-flon-mb.html

    • On March 21, 2017 at 8:25 am,
      Excelsior says:

      SABINA GOLD & SILVER ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED 2016
      March 21, 2017 – (SBB) (SGSVF)

      “Much was accomplished in 2016,” said Bruce McLeod, the Company’s President& CEO. “Although we received a set-back from the Nunavut Impact Review Board (“NIRB”), we understand and support the NIRB’s desire for a high level of confidence in our proposals for the Back River Project. We are happy to be back in the process and believe that our recently submitted Final Environmental Impact Statement Addendum presents additional mitigation, information and plans that will address NIRB’s concerns. In 2016, we also continued optimization and trade off studies which we believe could positively impact the Project economics.”

      “On the exploration front, a new discovery at Convergence and the successes at our Hivogani and Kogoyok targets continued to demonstrate the opportunities for new discoveries and extended mine life at Back River. Other geological programs completed during the year enabled us to plan a high impact drilling campaign for 2017 with our recently raised flow-through financing. 2017 has started out positively and we look forward to continued support for the Back River Project from all stakeholders as we work through the process.”

      http://www.sabinagoldsilver.com/news/sabina-gold-and-silver-announces-financial-results-for-the-year-ended-2016

  4. On March 20, 2017 at 11:25 pm,
    Excelsior says:

    $5.5 billion private capital ready to invest in mining
    Frik Els | about 7 hours ago

    http://www.mining.com/5-5-billion-private-capital-ready-invest-mining/

  5. On March 20, 2017 at 11:42 pm,
    Excelsior says:

    Guardian of Rockefeller fortune, philanthropy dies at 101
    DEEPTI HAJELA – 8 hours ago

    https://www.yahoo.com/finance/news/billionaire-philanthropist-david-rockefeller-dies-age-101-143850010–finance.html

    • On March 20, 2017 at 11:55 pm,
      Excelsior says:

      David Rockefeller

      * Non-governmental leadership positions

      Council on Foreign Relations – Honorary Chairman[58]
      Americas Society – Founder and Honorary Chairman
      Council of the Americas – Founder and Honorary Chairman
      Trilateral Commission – Founder and Honorary North American Chairman
      Bilderberg Meetings – Only member of the Member Advisory Group

      ____________________________________________________________________

      Rockefeller also reportedly had connections to the Central Intelligence Agency (CIA)[citation needed]. As well as knowing Allen Dulles and his brother John Foster Dulles—who was an in-law of the family[22]—since his college years,[23] it was in Rockefeller Center that Allen Dulles had set up his WWII operational center after Pearl Harbor, liaising closely with MI6 which also had their principal U.S. operation in the Center.

      He also knew and associated with the former CIA director Richard Helms, as well as Archibald Bulloch Roosevelt Jr., a Chase Bank employee and former CIA agent whose first cousin CIA agent Kermit Roosevelt, Jr. was involved in the Iran coup of 1953. Also, in 1953, he had befriended William Bundy, a pivotal CIA analyst for nine years in the 1950s, who became the Agency liaison to the National Security Council, and a subsequent lifelong friend.

      Moreover, in Cary Reich’s biography of his brother Nelson, a former CIA agent states that David was extensively briefed on covert intelligence operations by himself and other Agency division chiefs, under the direction of David’s “friend and confidant”, CIA Director Allen Dulles.

      Additionally, he served as the only member of the Advisory Board for the Bilderberg Group.

      On the world stage, influenced by the globalist perspective of his father, Rockefeller involved himself in a number of policy organizations focused on improving international relations. Rockefeller began a lifelong association with the Council on Foreign Relations (CFR) when he joined as a director in 1949, the youngest member appointed to that position yet. He would later become head of the nominating committee for future membership and after that the chairman of this foreign policy think-tank.

      In 1965, Rockefeller and other businessmen formed the Council of the Americas to stimulate and support economic integration in the Americas. In 1992, at a Council sponsored forum, Rockefeller proposed a “Western Hemisphere free trade area”, which subsequently became the Free Trade Area of the Americas in a Miami summit in 1994. His and the Council’s chief liaison to President Bill Clinton in order to garner support for this initiative was through Clinton’s chief of staff, Mack McLarty, whose consultancy firm Kissinger McLarty Associates is a corporate member of the Council, while McLarty himself is on the board of directors.

      Displeased with the refusal of the Bilderberg meetings to include Japan, Rockefeller helped found the Trilateral Commission in July 1973. Zbigniew Brzezinski, the National Security Advisor under Carter and fierce advocate for international cooperation, became the inaugural United States director.[citation needed]

      The Clinton Administration had close to a dozen Commission members, including Clinton himself; both Gerald Ford and George H. W. Bush had consulted the think tank.

      Addressing this and other claims proffered by traditional media, far-left and far-right academics, and many conspiracy theorists, in Rockefeller’s 2002 autobiography Memoirs he wrote: “For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as internationalists and of conspiring with others around the world to build a more integrated global political and economic structure—one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”

      https://en.wikipedia.org/wiki/David_Rockefeller

      • On March 21, 2017 at 4:27 am,
        GH says:

        May he now be enjoying his just reward, whatever that may be.

        • On March 21, 2017 at 7:51 am,
          Bonzo Barzini says:

          He’ll be waiting for Soros, the Clintons, and Kissinger to join him down there.

          • On March 21, 2017 at 12:08 pm,
            GH says:

            And papa Bush, and Cheney…

        • On March 21, 2017 at 6:12 pm,
          Robert Moriarty says:

          GH:

          Golly gee, it’s getting pretty hot in here.

  6. On March 21, 2017 at 1:24 am,
    Excelsior says:

    Gold and Debt: Intertwined
    Charts and commentary by David Chapman – March 17, 2017

    http://www.321gold.com/editorials/chapman_d/chapman_d_032017.pdf

  7. On March 21, 2017 at 7:22 am,
    Excelsior says:

    JAGUAR MINING REPORTS STRONG FULL-YEAR AND FOURTH QUARTER 2016 RESULTS; GENERATED $38 MILLION IN OPERATING CASH FLOW AND TURNED FREE CASH FLOW POSITIVE
    Mar 21, 2017

    FY 2016 Consolidated Highlights

    > Operating cash flow up 56% to $37.8 million as compared to FY 2015. Free cash flow turned positive year-over-year to $11.3 million.
    > 2016 gold production of 96,608 ounces exceeded 2016 guidance. Delivered record gold recovery of 91%, higher grade of 3.74 g/t, and higher throughput levels.
    > Increasing consolidated 2017 gold production guidance between 100,000 – 110,000 ounces.
    > Substantial increase in capital investments with $25.4 million of sustaining capital in FY 2016 to transform operations, support a growing production profile, and expand mine life. Primary development increased 44% to 5,462 metres while secondary development more than doubled to 4,751 metres compared to FY 2015.
    > Capital expenditures up 58% to $29.8 million, of which 85% was invested in sustaining capital, financed 100% through operating cash flow demonstrating the sustaining capability of the operations.
    > Improved cash operating costs to $719 per ounce sold, from $755 in FY 2015. > Despite the strengthening of the Brazilian Real and restart of development at Pilar, the Company achieved the lower end of 2016 COC guidance range of $700 – $750 per ounce sold.
    > All-in sustaining costs (“AISC”) of $1,099 per ounce sold, reflects a 47% increase in sustaining capital spend.
    > Working capital improved to $8.9 million as at December 31, 2016, up from $2.0 million at December 31, 2015.
    > Working capital reflects a substantial increase in cash invested in primary and secondary development, up 44% and 113% respectively, and includes $10.3 million in loans from Brazilian banks which are renewed every six months and are all classified as short-term.

    https://www.jaguarmining.com/investors/news-releases/2017/jaguar-mining-reports-strong-full-year-and-fourth-quarter-2016-results-generated-38-million-in-operating-cash-flow-and-turned/

  8. On March 21, 2017 at 7:23 am,
    spanky says:

    Silver miners calling BS on today’s move in the metals.

    • On March 21, 2017 at 8:03 am,
      Excelsior says:

      ??? – Spanky I wouldn’t call this Silver Miners calling BS…..

      Silver Stocks SYMBOL % CHG

      Prospero Silver Corp. PSL.V +11.11%
      Defiance Silver Corp. DEF.V +7.69%
      Silver Bull Resources, Inc. SVB.TO +7.14%
      SilverCrest Metals Inc. SIL.V +2.02%
      Hochschild Mining PLC HOC.L +4.46%
      Castle Silver Resources Inc. CSR.V +4.26%
      Minco Silver Corporation MSV.TO +4.17%
      Silver Bear Resources Inc. SBR.TO +3.80%
      Golden Minerals Company AUM.TO +3.45%
      Alexco Resource Corp. AXU +3.34%
      Golden Arrow Resources Corporation GRG.V +2.94%
      Pan American Silver Corp. PAAS +2.50%
      Silver Standard Resources Inc. SSRI +2.10%
      Brixton Metals Corporation BBB.V +2.11%
      Fresnillo PLC FRES.L +1.83%
      Kootenay Silver Inc KTN.V +1.79%
      MAG Silver Corp. MAG.TO +1.56%
      Silvercorp Metals Inc. SVM.TO +1.47%
      Americas Silver Corporation USAS +1.40%
      Hecla Mining Company HL +0.98%
      Bear Creek Mining Corporation BCM.V +0.82%
      First Majestic Silver Corp. AG +0.63%
      Endeavour Silver Corp. EDR.TO +0.58%
      Fortuna Silver Mines Inc. FSM +0.48%

      • On March 21, 2017 at 8:08 am,
        spanky says:

        AG and EXK, which should be some of the highest beta silver miners around for midcaps are barely up.

        • On March 21, 2017 at 11:15 am,
          Excelsior says:

          I decided to buy back into my Endeavour position today because I still think it is far undervalued relative to other Silver mid-tiers. They have a strong production profile and development pipeline of more projects they want to bring into production (and Exploration upside) so I at least want a fishing pole in the water with EXK.

      • On March 21, 2017 at 8:19 am,
        Matthew says:

        I share your lack of concern, Ex, but GDXJ did start the day much stronger than SILJ or SIL.

        SIL and GDXJ are up about the same amount, at the moment but SILJ is still way behind. Which is normal. Gold or silver, the smallest miners don’t tend to move first when things turn bullish.

        • On March 21, 2017 at 8:30 am,
          Excelsior says:

          Good points Matthew. Yes, the initial moves are often in the larger Senior miners at the very beginning of a trend change (as institutional money gets positioned), but then the Juniors quickly surpass them on a percentage basis to the upside.

          There are some larger Silver miners starting to move today like Hochschild, Pan American Silver, Silver Standard, Fresnillo, and Hecla, but there are a fair number of Mid-tiers and Jrs moving today as well. I hold a number of stocks on that list above in the Green today, so maybe my vantage point is skewed and I need to go look at the ETF action more closely. Thanks!!

        • On March 21, 2017 at 8:37 am,
          Matthew says:

          I was mostly referring to the explorers moving last. My best days are often the day after GDXJ does well.

          It does make sense that higher quality and more liquid companies would move first while skepticism is still high.

          • On March 21, 2017 at 10:31 am,
            Excelsior says:

            Ah yes…. as for Explorers I would agree they tend to tail the action in the producers in an uptrend, and then go flying by them on the upside if they hit on their exploration work from grab samples and trenching to geochem and drilling. Some of the solid explorers have already had nice moves earlier this year so I’m interested to see how things go as exploration results for 2017 start coming out on press releases.

  9. On March 21, 2017 at 7:56 am,
    Excelsior says:

    $GXY.AX $GALXF Certified Grade of Lithium Concentrate Above Specification
    March 21st, 2017

    http://cdn.ceo.ca/1cd2fca-43gy0118f136kz.pdf

  10. On March 21, 2017 at 7:59 am,
    spanky says:

    $gold needs to bust through $1253 (the 50 month MA) for good. If/when it does manage to get through that level, it could explode higher very quickly.

  11. On March 21, 2017 at 8:18 am,
    OOTB Jerry says:

    the quite before the storm………………

  12. On March 21, 2017 at 8:20 am,
    spanky says:

    The 20, 50, 100 and 200 day EMA for slv are more or less all right on top of each other. A large trending move is coming within the next month or so.

  13. On March 21, 2017 at 8:39 am,
    Silverdollar says:
  14. On March 21, 2017 at 8:42 am,
    Matthew says:

    The most important resistance for SLV is probably the 50% Fib fan line on the following weekly chart at roughly 17.25…

    http://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=7&mn=7&dy=0&id=p53006504730&a=513702030