Markets, Bonds, USD – All Down Today In The Face Of Economic Data and Tariff News
Chris Temple wraps up today with his thoughts on what caused the markets, bonds, and US Dollar to move down. There was a lot of data released today as well as some comments regarding the Fed and trade that all played their rolls.
Click here to visit Chris’s site and keep up to date on what he is writing.
As a shareholder I think its a low ball offer and I am not happy with it. However, I also think no one else will step in to make a better offer and therefore it will get sold and therefore I also sold my shares today rather than wait 3 months for an extra 3%.
Yeah I saw that news today James. It is actually a pretty good deal for Continental Gold, all things considered, and gave longer term shareholders an escape hatch out of the troubled jurisdiction of Colombia (which has gotten more and more confrontational there with local communities opposing mining projects).
It also should be another shot across the bow for Canadian & US companies to wake up and get into the mix with acquisitions as the Australian and Asian groups are going to get all the low hanging fruit. Those that doubt the coming wave of acquisitions must not be paying that close of attention, because starting with the big Mega Mergers earlier this year, there have been a number of mergers and acquisitions, and if the metals start to move higher in 2020 the scramble to buy the good developers and distressed producers will only get more and more expensive.
Ever Upward!
Zijin Mining Acquires Continental Gold: How The Acquisition Stacks Up Against Past Takeovers
Dec. 2, 2019 – Taylor Dart
“It’s been a busy couple of weeks in the mining sector (GDX), with over 20 million ounces of gold taken off the market in 10 trading days between the Detour Gold (OTCPK:DRGDF) and Continental Gold (OTCQX:CGOOF) acquisitions.”
“It is clear that gold majors are not yet satiated when it comes to adding to their production profiles, and Continental Gold is the most recent example. The company was acquired Monday by Zijin Mining (OTCPK:ZIJMF), a Chinese mining group, for $1.053 billion dollars. This works out to an enterprise value per ounce of $93.91 for Continental’s Buritica Project in Colombia and is the highest amount paid for a junior in the past five years.”
“This certainly bodes well for those hoping to be vindicated for holding onto the best junior miners (GDXJ), as we now have a record acquisition price in the sector since 2015 and an appetite from not only the well-known majors but also Chinese firms. I view this as a positive development for the sector and believe it’s only a matter of time before more of the best names get snapped up.”
Here is another Colombian acquisition that hit the wires this morning:
(GOLD) (GLDLF) GoldMining Completes Acquisition of Yarumalito Gold Project in Colombia
by @newswire on 3 Dec 2019
https://ceo.ca/@newswire/goldmining-completes-acquisition-of-yarumalito-gold
I think the Chinese will be targeting K92. Big, rich, expanding mine. The Chinese are infiltrating Australian government, and are doing the same in New Guinea. Promises of infrastructure go a long way with second world locals. By promising more than just a wage, they will be much more welcomed by both govt and the citizenry. A msg to Canadian and western mining executives: you pigs with your expense accounts, bloated Boards, endless junkets, price manipulation, newsletter writer payoffs and endless drill programs on cow pastures……with dividends for yourselves and your shareholders on the very rare occasion that you successfully bring a mine into profitable production…..your greed and incompetence is being played and roundly defeated by the communist chinese. Well done.
The Fed has pretty much run out of options.
It cannot lower interest rates much more yet without bankrupting banks,
and it cannot raise interest rates without seriously observable monetization and/or bankrupting the country.
It is monetizing the cost of carrying the debt as it is.
The liquidity is a serious problem, which can only be solved by higher interest rates.
The carry cost of the debt can only be solved by lower interest rates.
And thus the stale mate of where we are…..monetization and but for other countries being worse, we would also have a sinking dollar.
‘We need more inflation’ said nobody – ever – anywhere (excepting central bank inmates)
+1 Agreed Nigel.
The banksters may like inflation, but no average citizen does. The low interest rate loans and cheap prices on goods are a boon to every family. Why would any consumer want runaway inflation in the price of their goods or want to pay more to banks with higher interest rates.
It is high interest rates, however, that keeps inflation in check, according to classical economic theory.
Governments always want some inflation to increase taxation invisibly.
Meanwhile in China it does not pay to criticize government:
https://theduran.com/chinas-orwellian-social-media-police/
The central banks around the world left classical economic theory years ago when they started “Too Big To Fail” Tarp, QE, negative real rates, and many countries have actually embarked into the wacky world of actual negative interest rates.
We are in uncharted economic waters, where the debt is unpayable, and there is not way to inflate ourselves out of this mess without imploding the whole system.
A complete currency reset is what is on the menu, and when people scream loud enough, then they’ll introduce a new global currency.
Until then….. buy Precious Metals.
Sort of mirrors the book of Revelation…
(HRT) (HRTFF) Harte Gold Announces Discovery of New High Grade Gold Showing Initial Sampling Returns Grades Up To 247 g/t
by @nasdaq on 2 Dec 2019
“17 chip samples across a 40 metre strike extent have returned gold values from 11.1 g/t to 247.0 g/t Au”
https://ceo.ca/@nasdaq/harte-gold-announces-discovery-of-new-high-grade-gold
@anomalloy – “(HRT) likely to make the TSX’s most active list for the third day in a row. Looks like some profit taking going on this am, but heading back up on this mornings news, imho. Still have that gap to fill above $.225”
(OSK) (OBNNF) Osisko Intersects 106 g/t Au over 13 Metres in Lynx Extension
by @nasdaq on 2 Dec 2019
“Infill drilling at Lynx Extension has returned one of the highest-grade intervals intersected a Windfall to date, returning 106 g/t Au over 13.0 metres in OSK-W-19-991-W8. A second infill hole in the Lynx Extension (OSK-W-19-1857-W8) returned 62.4 g/t over 5.7 metres. ”
https://ceo.ca/@nasdaq/osisko-intersects-106-gt-au-over-13-metres-in-lynx
First Artificial Intelligence “big Brother Cameras, rolling out in Australia.
http://www.msn.com/en-us/news/technology/cell-phone-detection-cameras-rolled-out-in-australia/ar-BBXAA0a?pfr=1
Will UK or China be far behind ?
(China may be there already)
Orocobre Limited – December Quarter 2019 Lithium Carbonate Pricing Guidance
by @nasdaq on 2 Dec 2019
“Orocobre is in the fortunate position of having a very strong balance sheet and the business continues to focus on reducing the cost of production through this period of market weakness to maintain our position as one of the lowest cost producers of lithium chemicals.”
Is Trump intent on causing inflation ?
(TV) (TREVF) Announces Drill Results For the Newly Discovered T3 Horizon at the Perkoa Mine and Updates on Regional Exploration and the Hanging Wall Lens Infill Programs
by @nasdaq on 2 Dec 2019
– Hole PUX021 intersected 3.42 metres at 13.8% Zn, including 1.66 metres at 19.4% Zn.
– Hole PUX020a intersected 6.80 metres at 6.4% Zn, including 1.50 metres at 9.5% Zn.
– T3 horizon has been intersected over 400 metres along strike.
https://ceo.ca/@nasdaq/trevali-announces-drill-results-for-the-newly-discovered
Ex – In your opinion, is TREVF a buy here? I noticed the volume spike lasst week which looks positive, but it also looks like it could continue to drift for a while. I don’t own any, but always liked what I heard about the company.
Well, anything in the base metals space could continue to slide in the short term, but if a “Phase 1” trade deal between the US and China is reached, or of other countries announce large infastructure plans, or if the US Dollar softens, then any of those things could help out the raw materials sector.
What I like about Trevali is that they are in production at 4 mines, have been doing well with exploration expanding their resources, and most importantly they’ve really been paying down huge amounts of debt over the last 3 quarters. If they keep that up in the 4th quarter, and 1st quarter of 2020, then they’ll finally be debt free and generating free cash flows from their revenues (likely in Q2 of 2020).
It doesn’t seem like the marketplace cares about any of the Zinc stocks right now, and there are good tax loss candidates across the board, but most of these are just exploreres or developers, that are waiting on the big boys to acquire them.
As we know in the Gold or Silver space, or in the Zinc or Nickel or whatever resource or commodity, it is the smaller to mid-size Producers that have the immediate upside on a price rebound, so that makes (TV) (TREVF) stand out amongst most of the other Zinc companies, as they can immediately monetize those gains. In addition, they are not too large and clunky like many of the other base metal conglomerates. Lastly, they still have a nice Silver credit along with their Zinc & Lead concentrates, which will only get a boost if the PMs do well.
Trevali may not have the wild surges of an explorer (like Cantex did this year) or the takeover potential of some of the developers, but it could have steady growth higher as their balance sheet gets cleaned up, and they are back-stopped by Glencore which makes it very easy for me to dump in a few coins to Trevali down at these levels.
One last thing to mention is they are getting ready to start buying back some of their shares, because they believe it is the best value for the company, which is typically a strong endorsement from the company as well.
__________________________________________
Trevali Announces Renewal of Normal Course Issuer Bid
by @nasdaq on 29 Nov 2019
“Trevali may purchase up to a total of 50,000,000 common shares under the NCIB (representing approximately 8.5% of Trevali’s “public float” (calculated in accordance with the rules of the TSX).”
https://ceo.ca/@nasdaq/trevali-announces-renewal-of-normal-course-issuer-bid
sounds like it is time to take out a small starter position. Thanks very much for your thoughts Ex! Great Analysis!
Meanwhile in Iran:
DUBAI, United Arab Emirates (AP) — At least 208 people in Iran have been killed amid protests over sharply rising gasoline prices and a subsequent crackdown by security forces, Amnesty International said Monday, as one government official acknowledged telling police to shoot demonstrators.
Iran has yet to release any nationwide statistics over the unrest that gripped the Islamic Republic beginning Nov. 15 with minimum prices for government-subsidized gasoline rising by 50%. Iran’s mission to the United Nations disputed Amnesty’s findings early Tuesday, though it offered no evidence to support its claim.
Iran shut down internet access amid the unrest, blocking those inside the country from sharing their videos and information, as well as limiting the outside world from knowing the scale of the protests and violence. The restoration of the internet in recent days across much of the country has seen other videos surface .
(ROXG) (ROGFF) Roxgold Intersects 19.73 gpt Over 23 Metres in Ancien at Ségéula Gold Project
by @businesswire on 2 Dec 2019
“The exploration success at the Séguéla Project continues to build confidence in the growth potential at our newest development project,” stated John Dorward, President and Chief Executive Officer. “With eight of the first ten holes hitting significant mineralization, these drill results demonstrate how Ancien is quickly becoming a high value target”
Meanwhile…..Creepy Joe’s actual words put to cartoon:
What a fine President ……?
Gold miners breakout:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=7&dy=0&id=p45215688218&a=703954469
Most miners bottomed 6+ weeks ago.
https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=7&dy=0&id=p15262448350&a=704132137
This move was foreshadowed on Friday when GDXJ broke out on a closing basis…
https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=7&dy=0&id=p03464580313&a=703348569
/GC…if the 11/7 high volume bar can be moved above buyers are in control…If not this move since 11/12 low is counter-trend..my 2 cents…do not shoot please
The action in the miners often tells us what to expect from gold and they are saying that this is probably not a coutertrend move.
Plenty of bearish bulls (not referring to you) have been saying for a long time that a much deeper correction is needed and would not be a bad thing. Regarding the miners in particular, I strongly disagree with both claims and have all along. A new low would be catastrophic for all but the biggest picture outlook and is definitely not “needed.”
https://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=5&mn=3&dy=0&id=p37193975794&a=696258078
The action in the miners is an “it” not a “they” – shame on me 🙄🤦♂️
Seek forgiveness, never ascribe shame to oneself.
Thanks Marty. Please forgive my countless grammatical errors of the last decade. 🙏
GDXJ just traded to its highest level since September and the action overall has been darn near perfect for the bullish case.
https://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=5&mn=0&dy=0&id=p78447947281
GDXJ looks great versus GLD/gold and is getting ready to blow it away for weeks to come…
https://stockcharts.com/h-sc/ui?s=GDXJ%3AGLD&p=W&yr=5&mn=0&dy=0&id=p55260201151
The same is true for gold stocks versus conventional stocks. GDX vs DIA:
https://stockcharts.com/h-sc/ui?s=GDX%3ADIA&p=D&yr=1&mn=1&dy=0&id=p07923575534&a=699627862
The gold miners are now nothing but bullish.
GDX and GDXJ have activated double bottoms:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=5&dy=0&id=p79861143992&a=704151104
The juniors and silver stocks are bullishly outperforming the senior golds which helps me to conclude that the summer move was just a warm-up.
https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=1&mn=5&dy=0&id=p15934522574
Gold has a double bottom of its own in the works and it happened at a strong support:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=2&mn=1&dy=0&id=p96908937330&a=444055643
Gotta love that volume spike on Impact Silver
There’s a little resistance at .326 with that 377 day MA:
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=5&dy=0&id=p60805482612&a=704163480
Last week’s volume was the largest in 2 months but this week’s will probably dwarf it…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=3&mn=11&dy=0&id=p95362965875&a=685754391
I agree about the resistance. I came to the same conclusion with the Volume by Price chart. But with the volume today, that resistance should not last long. I picked up a few more shares to top off the tank last night before the close and am glad I did. Here is to the top of the fork!
Gold is once again above “R2” pivot resistance; a level never reached once in 2016 (chart does not yet show today’s action).
Notice Stan Weinstein’s 30 week MA. Gold’s tremendous strength all year should be obvious.
Get ready for the miners to confirm gold in a convincing way.
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=5&mn=11&dy=0&id=p91915595439&a=699861636
Even today’s low for GDXJ is outside its Bollinger Bands. This is how real moves start.
https://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=10&dy=0&id=p14476549796
Go Matthew, go Matthew!!
You have posted 13 positive comments about the precious metals in the last 14 comments here today!! I
I see it as a strong buy signal in this new gold/silver cycel😀
Nice convincing charts, thank’s 👌
Blue, you can be sure that a lot of people see this as a selling opportunity. 😂
Oh I wish I had more capital to invest right now, Im fully invested and I will not sell until the comments in here will be north of 200 and everybody is talking about gold and silvers amazing run👊
That’s a good plan. Those comments will come with overbought readings and significant technical negative divergences.
SLV/silver fork action has been just what we needed:
https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=5&dy=0&id=p77306700167&a=704177881
Could a breakout and backtest be any clearer?
https://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=7&mn=2&dy=0&id=p63264157071&a=681517050
Boys ! China’s Zijin Mining to buy Canada’s Continental Gold for about $ 1,33 Billion ! opinions ?