Relief Rally in Gold Mining Stocks

By Jordan Roy-Byrne CMT, MFTA In recent days the gold stocks (GDX, GDXJ) traded within 1% of our downside targets of GDX $21.00 and GDXJ $29.50. Last week we wrote: “the miners are getting oversold and a bounce could begin from those levels.” GDXJ troughed first last week at $29.84 while GDX printed a low of $21.27 on Monday. From their September peaks down to those lows, GDX and GDXJ had declined nearly 17% and 21% respectively. They are oversold, nearly touched good support and now the rate hike is behind them. We expect a rally in the sector well into January. With a rebound underway we should turn our attention to potential upside targets. GDX closed the week at $21.99. It has resistance at $23.00 including its 200-day moving average at $22.83. GDXJ closed at $31.46. It has resistance at $33.00. Its 200-day moving average is at $33.49. In … Continue reading

Mexican miners reach deal with Canadian company, go back to work

By analyst By Valentina Ruiz Leotaud Following a 40-day stoppage, employees of Minera Media Luna who work at El Limón-Guajes site in the Mexican state of Guerrero are going back to work. Minera Media Luna is Canada’s Torex Gold Resources (TSX:TXG) wholly-owned subsidiary in the Latin American country. It operates the El Limón-Guajes project, one of the richest open-pit gold deposits in Mexico at a resource grade of 2.65 g/t. Starting on November 6, 2017, some three dozen workers blocked the entrance of the mine near the town of Real de Limón, demanding the right to join the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic, known as Los Mineros. The problem was that Media Luna had already signed an agreement with a different union. To resolve the issue, the company organized a series of meetings with Los Mineros and a consultation process, which was … Continue reading

CHART: High flying metals to fall back to earth in 2018

By analyst By Frik Els Gold’s looks like it’s limping to the finish line with a $100 decline from it’s 2017 high hit three months ago, but bullion bulls would probably feel happy about a second year of near double digit gains (provided the last fortnight of 2017 has no surprises in store). Silver’s been a real disappointment this year with the precious metal failing to capitalize on the fact half of demand is from industry and a good chunk of that from green energy. Platinum and palladium has gone in opposite directions with the latter up by more than 50% this year, stretching the gap with its sister metal to the widest in 16 years. This helps to explain why platinum is the pick among forecasters for an improvement next year, while palladium is likely to retreat from today’s lofty levels. Copper suffered its worst one day fall in … Continue reading

Alrosa recovers huge yellow diamond from Yakutia mine

By analyst By Valentina Ruiz Leotaud The world’s largest diamond producer by output, Alrosa (MCX:ALRS), announced today the recovery of a large gem-quality diamond of 98.63 carats from its historic Jubilee (Yubileynaya) pipe, located in the eastern Republic of Yakutia. The octahedron crystal has inclusions of olivine, graphite and sulphide, is transparent yellow-tinted and measures 28.96 х 28.03 х 27.30 mm. “According to our information, more than twenty large rough diamonds over 50 carats have been extracted from Jubilee since the beginning of 2017. We are waiting for the new stone to be delivered to USO for a detailed examination and valuation,” the Director of the United Selling Organization Alrosa, Evgeny Agureev, said in a media statement. Given that large stones tend to receive unique names, diamond fans are impatiently waiting to see how the new yellowish gem is going to be baptized. Earlier this year, a 51.91-carat rough diamond … Continue reading

Should You Buy Carnival Stock Before Earnings?

By Rob Otman Carnival (NYSE: CCL) is a large cap company that operates within the hotels, restaurants and leisure industry. Its market cap is $47 billion today, and the total one-year return is 27.56% for shareholders. Carnival stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company. Our system looks at six key metrics… [iu-adbox] ✓ Earnings-per-Share (EPS) Growth: Carnival reported a recent EPS growth rate of -4.66%. That’s above the hotels, restaurants and leisure industry average of -1059%. That’s a great sign. Carnival’s earnings growth is outpacing that of its competitors. ✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the hotels, restaurants and leisure industry is 29.92. And Carnival’s ratio comes in at 16.93. … Continue reading

Flash Update (12/15)

By Jordan Roy-Byrne CMT, MFTA This 7-page flash update was published and emailed to subscribers Friday morning. It was also posted to the website. The update covers the recent rebound in the gold stocks, how far it could run, the outlook for Fed policy and when a fundamental catalyst for Gold is more likely to emerge. …read more Source:: The Daily Gold The post Flash Update (12/15) appeared first on Junior Mining Analyst. … Continue reading

The Perfect Gold Stock for Revivalists

Source: Clive Maund for Streetwise Reports 12/15/2017 Technical analyst Clive Maund charts a young gold company that he believes “is going places.”Revival Gold Inc. (RVG:TSX.V) is a young gold stock that looks like it’s going places. After starting trading in March it immediately went into a steady uptrend that later accelerated into a peak in August–September, after which it ran off sideways into a rectangular trading range that has continued up to the present, as we can see on its 1-year chart below. This trading range looks like a consolidation pattern not a top, and if so we can expect the price to break above the resistance at the top of it in due course and enter another uptrend. With the gentle downtrend of the past few weeks having brought it down towards the lower boundary of the trading range, it looks like a buy here, and a stop may … Continue reading

Canadian diamond producer dealing with water issues in South Africa

By analyst By Valentina Ruiz Leotaud Canada’s Diamcor Mining (TSX-V:DMI) announced this week not so positive results from the tender and sale of rough diamonds recovered from its 5,888-hectares Krone-Endora project in South Africa, located next to De Beers’ Venetia mine, the world’s third largest. “The Company sold 4,353.91 carats of rough diamonds for gross proceeds of USD $864,546.09, resulting in an average price of USD $198.57 per carat. The lower number of carats tendered and sold is attributable to a reduction in the volume of material being processed due to the previously announced water recovery issues associated with excessively suspensive properties of the very fine kimberlitic clay materials,” Diamcor said in a media statement. The Kelowna-based junior has not been able to operate the Krone-Endora plants at full capacity due to insufficient recoveries of water from the project’s settling dams. The company said that corrective measures, such as the … Continue reading

Indian captive power plants running at half capacity due to coal shortage

By analyst By Valentina Ruiz Leotaud The Indian Captive Power Producers Association or ICPPA held a press conference on Thursday where its president, Rahul Sharma, denounced that most captive power producers are getting half of the coal they need from state-owned Coal India and are considering increasing their imports. The scarcity of the mineral is due to the government’s decision to divert most of the country’s output to electricity generators in order to prevent outages. Coal India’s shipments to power plants rose 9.2 per cent to 290.6 million tonnes in the eight months ended November 30, 2017. This accounted for 79 per cent of the overall supplies of 368 million tonnes during the period. Local reports state that India’s thermal power capacity of 137 GW requires about 1.43 million tonnes of coal daily and, despite the increased supply, power plants currently have enough stock for eight days, when they are … Continue reading

Kazakhstan’s largest iron ore company now has a smart mine

By analyst By Valentina Ruiz Leotaud A major iron ore project in Kazakhstan is getting a high-tech makeover. The Kacharsky mine, operated by Eurasian Resources-owned JSC Sokolov-Sarbai Mining Production Association or SSGPO, is being transformed into a “smart mine.” With an investment of $10 million, a new modular automated system for production processes was integrated with Kacharsky’s existing Geographic Information System and Enterprise Resource Planning System. From now on -the company said in a press release-, operators will be able to build an optimal production scenario via GIS MineSched and GIS Surpac and use US Modular Mining Systems to plan the despatch and delivery of products. This means that the mine can be monitored in real time by sensors that can detect where changes should be made in the mining process to improve productivity. Once this happens, the computer system will then make the required adjustments, including allocating mining vehicles … Continue reading