Gold price: ETF holdings jump to near 5-year high

By analyst

Gold price: ETF holdings jump to near 5-year high

By Frik Els

On Tuesday, gold climbed back towards the $1,340 an ounce level bringing gains since mid-December to nearly $100 an ounce or 8%.

Large-scale speculators have been increasing their exposure to gold on derivatives markets doubling net long positions – bets that gold will be more expensive in future – in the space of three weeks to the equivalent of 20m ounces.

Retail and institutional investment in gold-backed exchange traded funds (ETFs) also continues to grow.

According to data compiled by Bloomberg ETF vaults now hold around 2,250 tonnes, the most since May 2013, as investors piled in ahead of a US government shutdown.

Ole Hansen, chief commodity strategist at Saxo Bank noted that “price corrections have so far been shallow”:

“Gold continues to attract demand from investors seeking protection from rising inflation and the risk of a stock and especially bond market weakness.

“Geopolitics may receive some attention this week with Trump and many other world leaders meeting in Davos.”

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Source:: Infomine

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Company News – Tue 23 Jan, 2018

By Cory Novo Receives Comet Well Programme of Works Approval

Here is the latest news out of Novo Resources. I think we are all anxiously awaiting the results from their trenching program and some more clarity on exactly what Novo has int he Karratha gold project. I will be chatting with Quinton and his team in the coming weeks. If you have any questions please email me at Fleck@kereport.com.

Click here to listen to our last interview.

Click here to visit the Novo website for more information.

Novo Resources Corp. (“Novo” or the “Company”) (TSX-V:NVO) (OTCQX:NSRPF) is pleased to announce that the Programme of Works (“POW”) submission for exploration activities at Comet Well has been approved by the Department of Mines, Industry Regulation and Safety of Western Australia. To date, Novo’s exploration activities at the Karratha gold project have been focused on the Purdy’s Reward tenement, part of a 50-50 joint venture with ASX-listed Artemis Resources Limited. Following heritage clearance activities and granting of the Comet Well tenements in late 2017 (please refer to the Company’s previous announcement dated December 13, 2017), the POW approval now clears the way for Novo to commence exploration activities in this highly prospective area of tenure. Comet Well represents a significant extension of the targeted gold-bearing conglomerate sequence encompassing an additional 5km strike southwest of Purdy’s Reward.

Trenching, bulk sampling and diamond drilling are scheduled to commence at the end of the month and will complement ongoing work at Purdy’s Reward.

Novo CEO and Director, Mr. Rob Humphryson commented, “Exploration to date has centred on Purdy’s Reward, pending tenement permitting, Aboriginal heritage access and government departmental approvals at Comet Well. With access now granted, Novo has the ability to access new, high priority target areas. We look forward to further exploring this unique gold system across a much broader footprint.”

About Novo Resources Corp.

Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km. Novo also controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au-Ag vein district, Nevada. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”
Quinton Hennigh
President and Chairman

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking information
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such …read more

Source:: The Korelin Economics Report

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Cory’s Insights – Tue 23 Jan, 2018

By Cory

Welcome to the New Reality of Leaping U.S. Treasury Debt Sales

We have been watching the bond market closely especially since the 10 year broke above 2.6%. This all comes at the start of 2018 which is a year that we will see a pickup in central banks stepping out of the markets. This will take the largest buyer out of the bond market (yes this will be gradual). A demand side consideration.

Now we have this story about the US Treasury about to announce a larger note sale for the first time since 2009. This makes perfect sense if we step back an understand what is happening in terms of the finances in the country. Trump is a debt guy and will use increased debt to move infrastructure and economic growth along. Even with the new tax plan that he is hopping will increase economic growth there is expected to be a short fall in terms of money coming in. All this will lead to more debt and in turn the issuance of more bonds.

This year is going to be very interesting for the bond market. If the central banks continue to stay the course and increase rates and unwind QE programs around the world where are all the buyers for these bonds going to come from?

Have a read below and please share your thoughts…

Click here for the original posting over at Bloomberg.

Issuance seen more than doubling to exceed $1 trillion in 2018

Announcement on bigger coupon-bearing sales expected Jan. 31

The world’s biggest bond market is about to get a taste of the future, with the U.S. Treasury expected to unveil bigger note sales for the first time since 2009 to fund budget deficits that are likely to deteriorate for years to come.

Treasury Secretary Steven Mnuchin’s debt-management squad is scheduled to announce on Jan. 31 how it plans to finance the government’s shortfall over the next three months, and Wall Street prognosticators anticipate bigger auctions of coupon-bearing securities. Dealers forecast an onslaught of debt supply that will lead issuance to at least double this year to more than $1 trillion, the most since 2010, starting with sales of short- to medium-term maturities.

The catch is that buyers may struggle to keep up: Central banks are showing signs of stepping back, and other investors may want to see higher yields before pouncing. That backdrop also contributes to forecasts for a flatter yield curve in 2018, given expectations that the Federal Reserve will hike rates further as inflation picks up.

Ballooning Burden

Source: Congressional Budget Office

“There will always be demand, but the question is just at what price,” said Torsten Slok, chief international economist at …read more

Source:: The Korelin Economics Report

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Pot Alert: From the Desk of Ray Blanco…

Don't Miss the Boat

By Ray Blanco

This post Pot Alert: From the Desk of Ray Blanco… appeared first on Daily Reckoning.

A big swing state is gearing up for legalized pot sales in the next couple of months.

It could quickly become one of the biggest markets for marijuana nationwide.

But first let’s take a look at the cannabis cash cow up north.

Canadian Pot Stocks on Major Rip

Everyone’s gearing up for July 2018 in Canada.

That’s when the Canadian government expects to have legislation in place fully legalizing recreational marijuana use.

By all accounts, they are right on track with their expectations.

As you might expect, Canadian cannabis companies and investors are gearing up for a big year.

The money is flowing heavily into Canadian weed in anticipation of the legislation, and payoffs could be huge for early movers.

The Canadian Marijuana Index, an index of the 24 largest Canadian cannabis companies by market cap, is up almost 13% from 931.55 to 1048.27, as of this morning.

Check out the chart below.

This is going to be one boat you really don’t want to miss.

Now on to news from the Keystone State.

A Two-Month Countdown

In April 2016, Pennsylvania passed legislation allowing medical marijuana (MMJ) sales. Regulators are targeting the first medical marijuana sales by April 2018. That’s just over two months away.

Despite recent volatility in the recreational pot market thanks to Attorney General Jeff Sessions, medical marijuana is off-limits to Washington.

The Rohrabacher-Blumenauer Amendment forbids the Justice Department from using any resources to interfere with state legal medical marijuana until at least January 2019. It’s up for extension Feb. 8, the new date for Congress to agree upon a budget and amendments.

There are a few reasons that make Pennsylvania’s new MMJ law something special.

For starters, it’s the fifth-most populous state in the country — that fact alone makes it an important new venue for weed sales. The state’s MMJ bill is also fairly permissive in terms of the ailments it’ll be allowed to treat.

Estimates put together by Marijuana Business Daily say the state’s dispensary sales could exceed $100 million annually once the program matures.

Finally, Pennsylvania’s MMJ program is significant because it’s happening in a political battleground state.

The bipartisan way that medical marijuana was legalized in PA is indicative of the shifting public sentiment for pot. (Nearly 70% of Americans believe in some form of legal marijuana.)

Pennsylvania plans on issuing licenses for up to 150 dispensary locations and 25 grower licenses for its medical pot program. Simply put, we’re mere months away from medical pot coming to be in one of the biggest states in the country.

That’s a positive step for all the pot companies in our portfolio, even if they don’t have direct exposure to Pennsylvania.

Meanwhile, as many expected, the policy shift from Jeff Sessions could actually be the catalyst for legalizing pot on a national level.

New bipartisan legislation has been announced in both houses of Congress that could finally remove the federal restrictions on marijuana, leaving pot regulations up to the states.

It’s a developing story.

I’ll keep you posted as …read more

Source:: Daily Reckoning feed

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KER Politics – Tue 23 Jan, 2018

By Big Al Word Leaks Out About Hillary’s Post-Election Condition courtesy of PJ Media. Is this satire or is it Truth. You have to make up your own mind.

UNITED STATES SECRET SERVICE

SUPERVISING SPECIAL AGENT’S WEEKLY REPORT

DUTY STATION: Chappaqua, New York

PROTECTEE: Hillary Rodham Clinton

Date: Jan. 24, 2017

DETAILS:

Mrs. Clinton did not emerge from sleeping quarters until almost noon again today, as has often been the case since Nov. 9. Her attention to personal grooming continues to deteriorate, as evidenced by her now customary attire of housecoat and fuzzy slippers, both of which are very much in need of laundering. As has also become customary, she spent the afternoon pacing the house with a cup of coffee in one hand and a tumbler of Wild Turkey in the other, which are replenished as needed by Ms. Mills and Ms. Abedin, respectively. Mrs. Clinton has also taken up smoking cigarettes, unfiltered Camels to be precise, and is often careless with the ashes. The carpeting throughout the house now bears numerous burn marks along with stains from spilled coffee and whiskey. (See accompanying requisition for additional fire extinguishers.)

While pacing the house, Mrs. Clinton talks to herself, at times making reference to some hoped for but yet unplanned visits to Iowa and New Hampshire. At other times she shouts, often inquiring as to the whereabouts of President Clinton. “Where’s Bill?” she screamed at one agent this morning. “Where the [redacted] is my husband? Where the [redacted] is my [redacted][redacted][redacted][redacted] husband?”

Mrs. Clinton’s full-time hair-and-makeup staff, which during the campaign numbered as high as 25, saw the final resignation last week. “I can’t do this anymore,” the woman screamed as she ran from the house. For Mrs. Clinton’s attendance at the inauguration, hair and makeup artists had to be recruited from the D.C. area market. Even then, Mrs. Clinton’s mercurial reputation is such that some would only sign on for the task after being assured that Mrs. Clinton would be disarmed and medicated. Household staff also suffers from high rate of attrition due to Mrs. Clinton’s behavior, which grows more erratic by the day.

The decision to surreptitiously medicate Mrs. Clinton prior to the inauguration, though fraught with risk at the time, appears to have been prudent. Members of the detail report that in no one’s memory has she been as easily handled as she was on Friday. “I didn’t hear her curse all day,” said one agent, “at least not until the meds wore off.” More importantly, the medication allowed agents to retrieve and conceal the revolver Mrs. Clinton has taken to carrying, thus lessening (but not eliminating) the potential threat to Mr. Trump during the ceremony at the capitol.

Should the tactic of medicating Mrs. Clinton be employed again for some future public appearance, I recommend additional precautions be taken. Though President and Mrs. Clinton are seldom together, we should guard against President Clinton being accidentally exposed to the substances used to sedate his wife. He appeared to have …read more

Source:: The Korelin Economics Report

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Exclusive Company Introduction – Tue 23 Jan, 2018

By Cory Marathon Gold – A 2.8mil oz Gold Resource With Lots Of Exploration Upside

Marathon Gold was formally introduced to me a couple months back from the Junior Miner Junky David Erfle. I already had some knowledge of the Company but only then did I start asking around and doing my DD. The Company passed all my initial tests so I wanted to bring them on the show to hear what all of you think. Please comment below or email me with your thoughts – Fleck@kereport.com.

Marathon already has a 2.8mil oz gold deposit in Atlantic Canada (Newfoundland) plus there is a lot of exploration upside potential. The President and CEO Phil Walford joins me to outline the known resource and share the drill program for this year.

Click here to view the Company presentation and follow along on the slides that we mention. (Link will open in a new tab)

Download audio file (2018_01_23-Phil-Walford-Marathon-Gold.mp3)

…read more

Source:: The Korelin Economics Report

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Pretium shares are tanking after Brucejack ramp up disappoints

By analyst

By Frik Els

Shares in Pretium Resources Inc (NYSE:PVG) tanked on Tuesday after the company announced disappointing production and cost forecasts from its Brucejack gold-silver mine in British Columbia.

During lunchtime trade the Vancouver-based producer was exchanging hands for $7.95 a share, down 26.3% on the New York Stock Exchange, in massive volumes of more than 10m shares traded. Pretium is now worth $1.9 billion down 37% from its year high hit early February.

In a statement Pretium said after six months of ramp-up at the Brucejack mine in the northwest of the Canadian province, production totaled 152,484 ounces of gold, but fourth quarter output was nearly 12,000 ounces below the prior quarter. Gold recoveries declined to 95.8% in the quarter compared to the previous three months.

Pretium said it expects steady state gold production at Bruecjack, its only operating mine, to be achieved in mid-to-late 2018. Gold production at Brucejack for the first half of 2018 is expected in the range of 150,000 – 200,000 ounces, for total first year ramp-up gold production of 302,000 – 352,000 ounces.

The all-in sustaining costs for H1 2018 are expected to range from $700 -$900 per ounce gold sold according to the company. That compares to $788 an ounce during the third quarter when the company predicted costs to decline.

With 14.1 g/t of gold in reserves, the Brucejack mine, is one of the highest grade gold projects to enter production in recent years. Final construction costs are expected to be in the region of $1 billion with a life of mine of 18 years.

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Source:: Infomine

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Russia to invest $250 million in uranium exploration, production in Argentina

By analyst

By Cecilia Jamasmie

Russia and Argentina signed Tuesday a memorandum of understanding to advance uranium exploration and production in the South American country, which already generates 5% of its electricity with three heavy-water nuclear reactors.

The deal, sealed during a visit by Argentine President Mauricio Macri to Moscow, could bring up to $250 million in investments into the country’s sector, according to Argentina’s foreign ministry official statement (in Spanish).

Currently, Argentina imports uranium from countries such as Russia and Kazakhstan for its own use, and for export.

The agreement includes Russia’s state nuclear agency Rosatom commitment to build a nuclear power station in Argentina, which had already revealed plans to build other two new nuclear reactors in the second half of this year. The $13 billion-plan will be financed mostly by Chinese organizations.

Argentina, Brazil and Mexico are the only three Latin American countries with functioning nuclear power plants.

Russia and Argentina vowed to apply an extraction method known as “in-situ recovery” (ISR), developed by Canada’s Uranium One, a wholly owned subsidiary of Rosatom, and the world’s fourth-largest uranium producer.

It involves the extraction of uranium-bearing water that is then filtered through resin beads and, according to Argentina’s foreign ministry, is the most cost-efficient technique, which also has a minimum environmental impact, as it doesn’t require soil removal.

Currently, Argentina imports uranium from countries such as Russia and Kazakhstan for its own use, as well as for exporting it after enrichment to other markets, including Brazil.

Today’s agreement, said the Argentine government, will help the country achieve “national self-sufficiency in uranium.”

The post Russia to invest $250 million in uranium exploration, production in Argentina appeared first on MINING.com.

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Source:: Infomine

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How to Profit from Biotech Buyout Bait

By Greg Guenthner

This post How to Profit from Biotech Buyout Bait appeared first on Daily Reckoning.

More all-time highs are in the books for the major averages as a temporary fix to the government shutdown come through and earnings season starts off hot…

But the real action is in happening in biotech stocks. A couple of big buyouts paved the way for some impressive biotech gains to kick off the new trading week.

First up, Celgene Corp. (NADSAQ:CELG) plunked down $9 billion to acquire Juno Therapeutics (NASDAQ:JUNO) and get ahold of its promising line of CAR-T cancer treatments. The announcement juiced JUNO shares by more than 25% on the day, bringing its five day gains to an eye-popping 75%.

If that’s not enough excitement for you, French drug maker Sanofi SA (NYSE:SNY) announced it’s buying Bioverativ (NASDAQ:BIVV) for $11.6 billion. The deal pushed BIVV shares up more than 60% by the closing bell.

Make no mistake, the biotech sector is heating up in 2018. Merger madness is taking hold, pushing shares of many promising companies in the sector to new highs.

The SPDR S&P Biotech ETF (NYSE:XBI) – a good measure of small-cap biotech stocks – gained almost 6% yesterday. Meanwhile, the large-cap iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) jumped almost 4%. The biotech buying frenzy helped lift the Nasdaq Composite to a gain of almost 1% in Monday’s session.

We’re just three full weeks into 2018 and the market’s premier small-cap biotech ETF is already up more than 10%. IBB’s not far behind with a gain of more than 8%.

These incredible rallies should come as no surprise to you. Not two weeks ago, we alerted you to biotech’s impressive outperformance on a rare down day for the major averages. In a sea of red, small-cap biotech stocks stood strong. XBI finished the day higher by more than 1.25% on Jan. 11, while the Nasdaq Composite was stuck in the red. XBI’s comeback rally that began to materialize just before Christmas was once again threatening to break out to new highs.

Fast forward to this week and you can see why it’s so important to take note of the stocks or sectors that are outperforming everything else — especially when the broad market is experiencing a little weakness. Now we’re enjoying our pick of countless bullish biotech breakouts to propel our trading portfolio higher this month.

I scan the biggest gainers on the market every day so I can get a feel for the sectors and industry trends that are sometimes masked by the major averages. As you can probably guess, biotech stocks are stealing the show so far this year. I’ve seen biotech “lotto plays” and buyout bait popping 50%, 60%, or even 70% every single day.

Exploding biotech names are nothing new to this bull market. You might recall the headline swirling around Endocyte Inc. (NASDAQ:ECYT) as it posted one-day gains of more than 150% during the fourth quarter. The triple-digit move was sparked by a licensing agreement for the firm’s phase 3 prostate cancer drug. Now, …read more

Source:: Daily Reckoning feed

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Alrosa inks long-term diamond supply deals with 67 clients

By analyst

By Cecilia Jamasmie

Russian miner Alrosa (MCX:ALRS), the world’s top diamond producer by output, said Tuesday it had signed 67 long-term contracts for the sale of gem quality and industrial rough diamonds.

Twelve of those agreements, said the miner, are with Russian companies and include three new clients – Aives, Diapur and Kristalldiam.

Apart from long-term deals, Alrosa also sells rough diamonds in almost equal shares at auctions and under spot contracts.

The company is also considering another 11 companies as potential candidates for signing long-term agreements with. Of them, nine are potential long-term buyers of gem quality rocks and two – buyers of industrial stones.

Long-term contracts form the basis of the Russian miner’s sales policy, accounting for up to 70% of sales of diamonds dug by the company. The contracts guarantee volumes and assortment of monthly supplies, as well as the possibility to purchase additional batches of rough diamonds.

Apart from long-term deals, Alrosa also sells rough diamonds in almost equal shares at auctions and under spot contracts.

In a separate statement, the company announced it would hold an auction for the sale of special size rough diamonds over 10.8 carats at the International Diamond Week in Israel (IDWI), organized by the Israel Diamond Exchange (IDE) on February 5 – 7.

The post Alrosa inks long-term diamond supply deals with 67 clients appeared first on MINING.com.

…read more

Source:: Infomine

The post Alrosa inks long-term diamond supply deals with 67 clients appeared first on Junior Mining Analyst.