Post cyclone coking coal price plunge

By analyst

Post cyclone coking coal correction

By Frik Els

The price of coking coal dropped sharply on Thursday with the industry benchmark price tracked by the Steel Index losing 4.6% to $289.50 a tonne as supply disruption following tropical storms in Australia begin to ease.

Last week the price of Australia free-on-board premium hard coking coal jumped to highest since the second quarter of 2011. That price spike was also the result of flooding in Queensland that saw quarterly contract prices negotiated at an all time high of $330.

While coking coal is returning to more expected levels, iron ore’s unnerving decline appears to have been arrested

Cyclone Debbie caused serious damage to key rail lines serving mines in the state of Queensland and while three lines have now reopened according to operator Aurizon, but large sections of the Goonyella railroad in the centre of the network is only be expected to be up and running in a week’s time.

Earlier expectations were that roughly 12–13 million tonnes of Australian met coal cargoes destined for China, India and Japan could be delayed, but Aurizon said this week up to 21 million tonnes have been affected.

A total of 221 million tonnes of coal was exported last year from Queensland, according to the Queensland Resources Council quoted by Reuters and of that at least 75% be steelmaking coal.

Customs data released last week showed Chinese imports of coal – both thermal and metallurgical coal – in March rose 12.2% from a year ago and 25% from February to 22.1 million tonnes.

The global met coal market is around 300 million tonnes per year with premium hard coking coal or PHCC constituting more than a third of the total market. More than half of PHCC seaborne coal come from Australian producers according to TSI data.

A reduction in allowable work days at China’s coal mines last year sparked a massive rally in coal prices, lifting met coal prices to multi-year high of $308.80 per tonne by November from $75 a tonne earlier in 2016. But the speculative rally fizzled soon fizzled out with the commodity hitting a 2017 low of $150.10 a tonne last month.

While coking coal is returning to more expected levels, iron ore’s unnerving decline – more than a third over just the last month – appears to have been arrested.

The Northern China import price of 62% Fe content ore advanced for a second day on Thursday trading at $64.70 a tonne after dipping to a six-month low of $61.50 per dry metric tonne on Tuesday according to data supplied by The Steel Index.

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Source:: Infomine

The post Post cyclone coking coal price plunge appeared first on Junior Mining Analyst.

Imminent Sign of Market Collapse?

By Brian Maher

This post Imminent Sign of Market Collapse? appeared first on Daily Reckoning.

We have it on high authority — Reuters — that “the ‘reflation’ trades of 2016 that were supposed to mark a turning point in global markets are fading. Fast.”

And CNBC senior markets commentator Michael Santoli sees the scribbling on the wall:

The question now is how it ends — with a whimper or a bang.

David Stockman has his answer. And it’s of the combustible variety:

The sweeping Trump tax cuts and fiscal stimulus are dead as far as the eye can see… So now comes the fiscal bloodbath and the day of monetary and fiscal reckoning.

One sign that something has to give — and probably soon — is the widening chasm between stocks and bonds.

Bond yields are at historical lows. Yet stock prices are at historical highs.

And therein lies a tale indeed…

Low bond yields suggest an uncertain future… subdued growth expectations… and low inflation.

High stock prices suggest faith in the future… elevated growth… “healthy” inflation.

Since peaking at 2.6% in mid-March, yields on the bellwether 10-year Treasury bond have slipped to 2.2%.

Shyam Rajan, strategist at Bank of America Merrill Lynch, says the interest rate market reflects the increasing likelihood that Trump’s tax reforms might never see dawn:

The rates market is pricing in the death of tax reform and dimming 2018 economic prospects.

Scott Minerd, global chief investment officer at Guggenheim, now projects that the 10-year yield could plummet to a dour 1.50% by summer.

Meanwhile, stocks bounce right along, merry as a wedding bell.

The Dow weighs in at 20,578 today, up another 174 points. The S&P’s also up 18 today, and the Nasdaq a cheery 54.

Thus, we have two seemingly incompatible market narratives locked in a bitter combat.

Stocks versus bonds.

Hope versus fear.

In this great tug of war, the market seems to pull on both ends of the rope… pitted against itself.

It can’t last.

Which side is the “real” economy throwing its weight behind?

Bonds, apparently…

As most recently as Feb. 1 the Atlanta Fed’s closely watched GDPNow had first-quarter growth around 3.4%.

But its latest estimate, out this week, weighed in at just 0.5%.

And Gallup reports that confidence in the economy is at its lowest in five months.

More rain: The March jobs report came in about 82,000 short of expectations… retail bankruptcies are rising… auto sales dropped sharply in the first quarter.

Meanwhile, commercial and industrial (C&I) credit growth has slowed to 5.4%… down from 10.3% a year ago.

That’s a rate of decline not seen since December 2008, according to The Telegraph’s Ambrose Evans-Pritchard — the onset of the Lehman Bros. crisis.

He says that’s “hard to square with the exuberant view of investors that the world is on the cusp of an accelerating economic boom.”

We’re inclined to agree.

So are Elga Bartsch and Chetan Ahya of Morgan Stanley, apparently:

We have not seen such a sharp deceleration in bank lending to U.S. corporates since the Great Financial Crisis… Historically, credit downturns have led recessions.

Rather disturbing …read more

Source:: Daily Reckoning feed

The post Imminent Sign of Market Collapse? appeared first on Junior Mining Analyst.

Daily Market Wrap – Thu 20 Apr, 2017

By Cory Market Wrap with Trader Vic – Near terms drivers for gold

Trader Vic joins me on a longer than usual market wrap. We discuss the near terms drivers for the markets and gold which include the first round of the French election on Sunday and upcoming US Q1 GDP and budget talks. Trader Vic does not trust the polls and provides a couple trades that he is entering if these polls are wrong again.

Download audio file (2017_04_20-Market-Wrap-Trader-Vic.mp3)

…read more

Source:: The Korelin Economics Report

The post Daily Market Wrap – Thu 20 Apr, 2017 appeared first on Junior Mining Analyst.

Craig Hemke from TF Metals Report – Thu 20 Apr, 2017

By Cory A Focus on the Silver Market and a COT Update

Commercial traders have built on their net short positions now to a record level. Craig Hemke shares his thoughts on the COT report for silver as well as the bigger picture investing climate for silver. With the paper market continuing to dominate price what does that mean moving forward?

Download audio file (2017_04_20-Craig-Hemke.mp3)

…read more

Source:: The Korelin Economics Report

The post Craig Hemke from TF Metals Report – Thu 20 Apr, 2017 appeared first on Junior Mining Analyst.

Why IBM Stock is Rated a ‘Hold with Caution’ Today

By Rob Otman

IBM (NYSE: IBM) is a $153 billion company today. Investors that bought shares one year ago are sitting on a 16.28% total return. That’s above the S&P 500’s return of 13.69%.

IBM stock is beating the market, 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: IBM reported a recent EPS growth rate of -11%. That’s below the IT services industry average of 14.3%. That’s not a good sign. We like to see companies that have higher earnings growth.

Price-to-Earnings (P/E): The average price-to-earnings ratio of the IT services industry is 25.46. And IBM’s ratio comes in at 12.33. It’s trading at a better value than many of its competitors.

Debt-to-Equity: The debt-to-equity ratio for IBM stock is 231.9. That’s above the IT services industry average of 133.1. That’s not a good sign. IBM’s debt levels should be lower.

Free Cash Flow per Share Growth: IBM’s FCF has been lower than its competitors over the last year. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It’s one of our most important fundamental factors.

Profit Margins: The profit margin of IBM comes in at 9.64% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. IBM’s profit margin is below the IT services average of 11.76%. So that’s a negative indicator for investors.

Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for IBM is 69.82%, and that’s above its industry average ROE of 24.46%.

IBM stock passes two of our six key metrics today. That’s why our Investment U Stock Grader rates it as a hold with caution.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here.
Thoughts on this article? Leave a comment below. …read more

Source:: Investment You

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Red Eagle Declares Commercial Production at San Ramon

Source: The Gold Report 04/20/2017

Commercial production was declared at Red Eagle Resources’ San Ramon mine in Colombia, nearly five months after announcing the first gold pour in November.

On April 10, Red Eagle Mining Corp. (R:TSX; RDEMF:OTCQX; R:BVL) announced that it declared commercial production at its San Ramon mine in Antioquia, Colombia, on March 31. The company reported that “the processing facility has reached a steady operating throughput capability and underground mining is progressing at an increasing rate with the opening up of additional ore development headings.”

The company is advancing the decline at the rate of up to 27 meters a day, an increase from an earlier rate of 3 meters a day when the decline was going through less-stable oxidized rock. The decline is now 2.4 kilometers long.

Gwen Preston of Resource Maven noted on April 12 that “the mine and mill are regularly achieving design rates, something that takes a lot more engineering, ingenuity, and dedication that most might realize.”

Preston observed that a “few ground conditions concerns have arisen, enough to slow mining and prompt a switch to mechanized cut and fill instead of long hole stoping. That’s not ideal from a speed and cost perspective, which is why Red Eagle is forecasting 35,000 to 40,000 oz. gold this year, down from earlier expectations. . .the company expects to ramp up the pace and produce the targeted 70,000 oz. in 2018.”

“At this point Red Eagle thinks San Ramon will be cash flow positive in the second quarter. One of the main reasons I invested in this mine is because of its cost structure: San Ramon is supposed to be able to produce an ounce of gold at an all-in sustaining cost of just US$671. That is the other key metric to watch,” wrote Preston.

Preston concluded that she remains “very interested in San Ramon’s potential to produce cash and Red Eagle’s ability to find more gold right around the mine.”

Read what other experts are saying about:

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Red Eagle Mining Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: R:TSX; RDEMF:OTCQX; R:BVL,
)

Dark Star Shining Brightly for Gold Standard Ventures in Nevada

Source: The Gold Report 04/20/2017

Exploration company Gold Standard Ventures has reported multiple results from its Dark Star prospect at its 100%-owned Railroad-Pinon project over the past week and a half.

Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) has had a busy week with the agreement to acquire Battle Mountain Gold and the release of multiple results from its Railroad-Pinon project.

In an April 10 press release, Gold Standard Ventures reported the Dark Star prospect oxide zone had +88% cyanide soluble recoveries. The results “confirm the consistently oxidized nature of gold mineralization within the Main Dark Star and North Dark Star gold zones.” Gold Standard Venture’s metallurgical consultant Gary Simmons will now “proceed with the definition of composites for bottle roll and column leach tests.”

ROTH Capital Partners, PI Financial and Gold Speculator released positive reviews of the Dark Star results.

ROTH Capital analyst Joe Reagor explained in an April 12 note that a combined PEA on Pinon and Dark Star deposits is probably next after the “well above our modeling assumption of an average recovery rate of 82% cyanide soluble” was reported. “We believe our estimates could prove conservative when GSV provides initial project economics. As a result of the strong recovery data for Dark Star, we are increasing our price target from $3.10 to $3.25. . .reiterating our buy rating,” Reagor concluded.

Brian Szeto with PI Financial, in an April 12 Corporate Update, reviewed the Dark Star results as a positive, pointing out that “the project can be mined via an open-pit heap-leach scenario which is a very low capital intensive and proven mining flow sheet.” Szeto maintains a buy rating and a target price of $3.70.

Gold Speculator’s Byron King highlighted on April 11 that Gold Standard Ventures is “cashed up, with a solid drilling program set to kick off when the weather breaks. Plus, there’s upside here as gold prices recover and move back onto an ascending pathway. Maintain buy on GSV, up to $3.25 per share.”

One week later, in an April 18 press release, Gold Standard Ventures announced positive results from a check assay program for the North and Main Dark Start deposits. “The ALS results increase the gold grades of several significant, previously released North and Main Dark Star drill hole intercepts by 2 to 5%.”

Jonathan Awde, CEO of Gold Standard, stated, “This thorough check assay program is an important step towards preparing a new resource estimate for the Dark Star area which will include the most recent drilling at Main Dark Star and North Dark Star. Our drilling last year established that these two deposits connect and we therefore expect the new resource estimate will report a total for greater Dark Star. At the same time, we are proceeding with more advanced metallurgical testing following last week’s positive announcement on the cyanide solubility of Dark Star oxide gold mineralization.”

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) Gold Standard Ventures Corp. is a billboard sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: GSV:TSX.V; GSV:NYSE,
)

NexGen Drill Results Continue Expansion

Source: The Energy Report 04/20/2017

Drill results from NexGen Energy’s A3 Zone of the Arrow project have significantly expanded the zone to the northeast and have discovered massive pitchblende.

NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released results from 18 holes from its winter drill program at the Rook I property in Canada’s Athabasca Basin in Saskatchewan. According to the company, hole AR-17-136c2 is marked by “dense accumulations of massive to semi-massive pitchblende mineralization and is the strongest zone of mineralization encountered in the A3 shear to date. This newly discovered area is open to the northeast.”

Garrett Ainsworth, NexGen’s vice-president of exploration and development, stated, “Drilling has been very successful in significantly expanding mineralization at Arrow on several fronts. The discovery of massive to semi-massive pitchblende mineralization encountered in hole AR-17-136c2 in the A3 shear looks identical to that found in the A2 Sub-Zone.”

The A2 shear zone also shows expansion. Step-out drilling 200 meters northeast of existing drilling has intersected “39.0 m of total composite mineralization including 1.65 m of total composite off-scale radioactivity.” A drill hole 255 meters northeast has intersected “18.5 m of total composite mineralization including 1.6 m of total composite off-scale radioactivity.”

On the A2 shear, Ainsworth said, “Further step outs into the northeast gap of the A2 shear have returned additional high grade intervals, where we expect mineralization to continue further northeast and down-dip to drill hole AR-15-50. Scissor drill holes stepping out and within the A2 and A3 High Grade Domains continues to exceed our expectations.”

Rob Chang, an analyst with Cantor Fitzgerald, wrote on April 18 that “successful drilling has expanded the mineralization at Arrow on several fronts. Today’s results highlight the expansion potential as northeast step-out drilling in the A2, A3, and A4 shears have encountered varying degrees of uranium mineralization. We reiterate our Buy recommendation and $5.15/share target price.”

Chang also noted that the “2017 winter drill program targeting 35,000m using seven drill rigs is ongoing. A Preliminary Economic Assessment for Arrow is expected for Q3/17. NexGen Energy currently has $58M cash on hand which will likely be able to sustain over 2 full years of exploration drilling.”

David Talbot of Eight Capital noted that the drill results showed the A2 and A4 trends “hosted several drill holes with thick intercepts, strong and off-scale (>10,000 cps) radioactivity and therefore potential for high grade uranium mineralization.”

Talbot also noted that “management had expected to have only one high grade subzone at Arrow (A2). This provides a huge opportunity given sparse drill spacing on A3 Shear. Hitting anything that looks remotely like the A2 Shear Subzone is very significant.”

Eight Capital has a Buy recommendation on NexGen and a share price target of CA$5.30.

Talbot concluded that “Arrow is a world-class deposit; the 3rd largest in the Athabasca Basin and may even overtake Cigar Lake this year pending continued positive drill results. . .an initial PEA is due in July-August and investors eagerly await its economics.”

Read what other experts are saying about:

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) NexGen Energy Ltd. is a billboard sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: NXE:TSX; NXGEF:OTCQX,
)

Newmont gets fresh shot at top gold miner spot

By analyst

World's top 10 gold mining companies – 2016

By Frik Els

Barrick Gold’s (TSX, NYSE:ABX) planned sale of a 50% stake in Australia’s Kalgoorlie mine has been pushed out further after Minjar Gold, the Chinese bidder, walked away from the deal citing new capital controls instituted by Beijing.

Perth-based Minjar Gold, a unit of Shanghai-listed Shandong Tyan has also been struggling to secure funding for the deal worth as much as $1.5 billion. Its biggest offshore acquisition was Evolution Mining’s (ASX:CAH) Pajingo mine for $40 million back in 2015.

Barrick president Kelvin Dushnisky told Reuters in February the Toronto-based company, the world’s top gold miner by output, would be “happy sellers” at the right price, but would also be “very happy to continue to own that asset”.

World number two Newmont Mining owns the other half and Barrick handed over operational control of the the iconic mine called the Super Pit to Newmont in May 2015.

Denver-based Newmont would be the natural buyer and has expressed interest in the mine, Australia’s largest gold open pit, in the past. Kalgoorlie produced just over 750,000 ounces last year.

Newmont has first right of refusal on the stake sale, but Barrick could circumvent that by selling shares in Kalgoorlie’s holding company KCGM.

Valuation of Kalgoorlie is all over the place with analyst estimates varying between $400 million to about $1.5 billion. Reserves at the mine top 7.5 million ounces.

The Super Pit is expected to be depleted of ore by the end of the decade but underground mining could continue after that. KCGM also operates the 56,000oz per year Mt Charlotte mine 3km from the Super Pit.

Should a transaction between the companies take place it would push Newmont past Barrick as the world’s largest gold company in terms of output.

The post Newmont gets fresh shot at top gold miner spot appeared first on MINING.com.

…read more

Source:: Infomine

The post Newmont gets fresh shot at top gold miner spot appeared first on Junior Mining Analyst.