Jack Chan on What Bullish Sentiment Means for Oil Prices

Source: Jack Chan for The Energy Report 04/15/2017 Technical analyst Jack Chan charts a reversal in the oil markets and outlines his strategy. $OSX is on a major buy signal, which can last for months and years. Speculative sentiment, according to open interests in the Commitment of Traders report, suggests that current sentiment is too bullish to support overall higher prices. What appeared to be a breakout this week was promptly reversed, thus resulting in a trend that is well established on the downside. SummaryThe energy sector is on a major buy signal. A correction is in progress. We have taken profits from our long positions and shall now wait for the correction to complete. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Energy 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 with industry analysts and commentators, visit our Streetwise Articles page. Disclosure: 1) Statements … Continue reading

Golden Arrow and Silver Standard Join Forces in Argentina

Source: The Gold Report 04/13/2017 Stars aligned for Golden Arrow when Chinchillas was ready to move to production and the company only had to look 18 miles down the road to Silver Standard’s Pirquitas mine and its established production facility. On March 31, Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) and Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ) announced they would be forming a 75%-25% joint venture that will combine the Chinchillas project and the Pirquitas mine. In the announcement, Golden Arrow highlighted that the agreement provides: Golden Arrow an opportunity to fast-track development of the Chinchillas property, in a capital efficient manner, through use of the existing production facilities at the Pirquitas Mine and establishment of common infrastructure. Near-term production from Chinchillas based on construction beginning in the third quarter of 2017, followed by ore delivery to the mill in the second half of 2018. Option exercise payment by Silver Standard to Golden Arrow of 25% of Pirquitas mine earnings less certain expenditures incurred since October 1, 2015 until closing, currently estimated at approximately US$15 million, payable on closing, which is expected on or before May 30, 2017. Golden Arrow Executive Chairman, President and CEO Joseph Grosso stated, “This is a landmark achievement for our Company. As Golden Arrow transitions an exploration discovery into a mining operation, our shareholders stand to benefit from this profile and strengthened financial position.” In an April 12 webcast, Grosso describes the circumstances leading to Golden Arrow and Silver Standard joining forces. In Silver Standard’s … Continue reading

DNI Delivers Profitable Graphite

Source: Bob Moriarty for The Gold Report 04/13/2017 For Bob Moriarty of 321 Gold, the boom in demand for lithium ion batteries also means a boom in demand for graphite, and he is placing his bets on a junior he believes has nothing but blue sky ahead. A lithium ion battery is no more lithium than 6 k gold is really gold. Regulations require gold be the major component of jewelry to be called gold. 6 k gold is really copper and silver, not gold. Same same with batteries, a lithium battery increases the demand for graphite a lot more than it does for lithium. What is called a lithium ion battery contains 10–20 times more graphite than lithium. So a boom in lithium battery requirement is really a boom in graphite demand. Maybe we should start calling them graphite batteries with a little bit of lithium? But both the demand and price of graphite have shot up in recent years with the increase in demand for battery storage. A couple of years ago there were probably seventy-five Canadian juniors all claiming to be the next big thing in graphite. Alas, cold hard economics stopped most of them in their tracks. Canada has some great hard rock graphite projects but they all require a lot of money to get into production. With China being the world’s biggest supplier of graphite, they are quite willing to dump graphite at a moment’s notice. Those who fund mining projects want stable prices more … Continue reading

Fission Uranium Drilling Confirms High-Grade Zone at Patterson Lake South

Source: The Energy Report 04/13/2017 Drilling at Fission Uranium’s Patterson Lake South has confirmed the R1515W zone, and several analysts are expecting the resource to continue to expand. Fission Uranium Corp. (FCU:TSX; FCUUF:OTCQX; 2FU:FSE) announced that follow-up drilling on the R1515W zone of the Patterson Lake South (PLS) project in Canada’s Athabasca Basin region has confirmed the high-grade discovery that the company first announced on March 20. Fission has completed drilling two of the four follow-up holes, and they provide the strongest mineralization yet encountered at the high-grade, near-surface and land-based zone. Ross McElroy, president, COO and chief geologist for Fission commented, “PLS17-553 is the second strongly mineralized hole in the newly discovered zone and confirms the potential for significant widths and high-grade radioactivity. The R1515W is the western-most zone of high-grade mineralization on our Patterson Lake Corridor trend and expands the strike-length of our high-grade mineralized foot-print to 3.14km—the largest in the region. . .it is open in multiple directions and we look forward to the next two holes of our follow-up drilling.” David Talbot, an analyst with Eight Capital, noted on April 4 that the R1515W zone may see further expansion, writing that it is the “third land based zone, and occurs near surface (185m depth), potentially high grade, and open in several directions including along strike. R1515W zone is not included in current resources or PEA. Provides further upside for future economic studies.” He has a Buy rating and a target price of CA$2.25. Analyst Rob Chang … Continue reading

DNI Delivers Profitable Graphite

Source: Bob Moriarty for The Gold Report 04/13/2017 For Bob Moriarty of 321 Gold, the boom in demand for lithium ion batteries also means a boom in demand for graphite, and he is placing his bets on a junior he believes has nothing but blue sky ahead. A lithium ion battery is no more lithium than 6 k gold is really gold. Regulations require gold be the major component of jewelry to be called gold. 6 k gold is really copper and silver, not gold. Same same with batteries, a lithium battery increases the demand for graphite a lot more than it does for lithium. What is called a lithium ion battery contains 10–20 times more graphite than lithium. So a boom in lithium battery requirement is really a boom in graphite demand. Maybe we should start calling them graphite batteries with a little bit of lithium? But both the demand and price of graphite have shot up in recent years with the increase in demand for battery storage. A couple of years ago there were probably seventy-five Canadian juniors all claiming to be the next big thing in graphite. Alas, cold hard economics stopped most of them in their tracks. Canada has some great hard rock graphite projects but they all require a lot of money to get into production. With China being the world’s biggest supplier of graphite, they are quite willing to dump graphite at a moment’s notice. Those who fund mining projects want stable prices more … Continue reading

Stock Warrant Databases and Great Articles

April 11, 2017 Stock Warrant Databases and Great Articles Please scroll down to see our articles for this week, but first I would like to update you on our warrant databases. I have recently added over 20 stock warrants trading on mostly United States companies. Blank Check Companies The Securities and Exchange Commission defines as follows: A blank check company is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person. These companies typically involve speculative investments and often fall within the SEC’s definition of “penny stocks” or are considered “microcap stocks.” Because of the nature of blank check companies, the SEC does not allow them to use some of the exemptions from the registration requirements when selling their securities. For more information about these exemptions, read our brochure, Small Business & the SEC. In addition, a blank check company registering for a securities offering may be subject to additional requirements for the protection of investors, including depositing most of the raised funds in an escrow account until an acquisition is agreed to and requiring shareholder approval of any identified acquisition. A type of blank check company is a “special purpose acquisition company,” or SPAC for short. A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to … Continue reading

Trump's Missile Strike on Syria and Gold

Source: Clive Maund for The Gold Report 04/11/2017 Technical analyst Clive Maund charts gold’s movements following the U.S. missile attack on a Syrian airbase. In Britain in the old days there was a saying, which was “Buy on a strike.” It had nothing to do with economics and everything to do with psychology. When a general strike by workers was declared, stock prices would have fallen up to the point at which the strike started, when the economic outlook would have been at its worst, but well before the strike ended they would actually start rising again, as investors perceived an eventual resolution of the problems. Thus, savvy investors who bought when things looked at their worst would have made the best of the situation. The same thing works in reverse when gold and silver look like they are going to rise due to a ramp up in geopolitical tensions. Thus, on Friday, we had any number of market commentators and “green” investors declaring a breakout by gold and silver due to the apparently increased danger of conflict between Russia and the U.S. after Trump lobbed about 50 cruise missiles at a Syrian airbase. Trump had three main reasons for initiating this strike. One is that he appears to have been genuinely outraged at the chemical attack having seen film of the victims of it, and wanted to hit back at those he saw as the perpetrators. The second is that it couldn’t do any harm to his flagging ratings … Continue reading

Trevali Mining Making All the Right Moves

Source: The Gold Report 04/11/2017 Trevali keeps its eye on being THE “pure play” solution as it moves toward closing the agreement with Glencore International to acquire the Rosh Pinah and Perkoa zinc mines. The mine purchase from Glencore, which was highlighted in The Gold Report’s March 16 article, moved closer to the July 31 closing date with Trevali Mining Corp.’s (TV:TSX; TV:BVL; TREVF:OTCQX) March 29 announcement of its “C$264,546,000 bought deal financing and amendment to agreement to purchase the producing Rosh Pinah and Perkoa Zinc Mines.” With this latest announcement, Trevali Mining is moving closer to its goal of being a “multi-asset, low cost global zinc producer,” as Dr. Mark Cruise, Trevali’s CEO and president, stated in the company’s March 13 press release. According to Trevali, “The net proceeds of the Offering will be used to fund a portion of the cash consideration payable to certain subsidiaries of Glencore PLC whereby Trevali will acquire a portfolio of zinc assets from Glencore…” The companies also amended that agreement to adjust the “breakdown of the Cash Consideration and Share Consideration to be paid to Glencore on closing of the Transaction to allow a greater portion of the Consideration to be paid in Common Shares.” Industry analysts have viewed the acquisition favorably. In a March 30 report, Paradigm Capital analyst Jeff Woolley updated its valuation of Trevali “to reflect our pro-forma view of the company. On a pro-forma basis, we estimate Trevali to be trading at a discount to our peer group … Continue reading

Rye Patch Restarts Florida Canyon Mine

Source: The Gold Report 04/11/2017 As iA Securities initiates coverage on Rye Patch, the miner receives state approval to start irrigation at the new pad at its Florida Canyon mine. Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX) announced on March 30 that the Bureau of Mining Regulation and Reclamation has approved the commencement of irrigation on the new South Heap Leach Pad of the Florida Canyon mine in Nevada. According to the company, “mining, crushing and loading of the South Pad are ramping up and are nearing 70% of the forecast production rate coming into the end of the first quarter.” The first gold pour is expected this month and commercial production is expected to commence by mid-2017.” On April 5 iA Securities initiated coverage on Rye Patch with a Buy recommendation. Analyst George Topping noted that the Florida Canyon project “has been redeveloped for commercial production, at a cost of US$29M, which began spraying in late March 2017. The property includes a 1.1 Moz Au M&I oxide resource that is expected to be expanded through additional exploration of the area. All infrastructure needed for the mine is on site, including power, water, transportation, and manpower.” Topping recounted progress at the project, writing that the “majority of the tasks needed to restart the Florida Canyon Mine have been completed. The fleet has been refurbished, the first cell of the SHLP pad has been built, the 20K tpd crusher has been moved and upgraded, the pads have been loaded and stacked, and … Continue reading

Charts Spelling 'Big Trouble' for Silver

Source: Clive Maund for The Gold Report 04/11/2017 Silver’s latest charts show that it is set up for a potentially severe decline, says technical analyst Clive Maund. Silver’s latest charts show that it is set up for a potentially severe decline, a situation that is aggravated by its latest COTs and Hedgers charts showing record extreme readings, which mean BIG TROUBLE for silver. Now, you might think, like so many traders did on Friday morning, that with Cruise Missiles flying around the Mideast, the outlook for the Precious Metals couldn’t be better, but the charts are saying that this is an opportunity—on the short side—dressed up in a crisis that will soon ease. Action in silver on Friday was very bearish as we can see on its 6-month chart below—it tried to break higher in the morning but the breakout attempt failed and it dropped back, zig-zagging around and leaving behind a high volume “Spinning Top” candlestick on its chart, so that it looks like it is about to break down from a Double Top with its highs of late February. The 1-year chart shows silver perched on the edge of a cliff, at the top of a big expanding downtrend channel with no relief in sight until it reaches the support level shown, and COTs and Hedgers charts show that it could drop much further—to the lower boundary of this expanding channel. The risk of silver tipping into a potentially severe decline from here is amplified by its latest … Continue reading