Archive for Opinions

Admiral Markets Australia Introduces Negative Balance Policy

As of October 11 2018, Admiral Markets Pty Ltd. has introduced a negative balance policy to allow clients to trade and analyse the financial markets with confidence.

Being prone to volatility, investors who trade in the Forex and CFD (Contract for Difference) markets can be vulnerable to sudden price changes. When these movements occur in instruments being held in an open trade, this can have a significant impact on the value of those positions and could result in an investor’s account balance falling below zero.

Should this happen, Admiral Markets may exercise its discretion to relieve clients of their repayment obligations by returning the negative balance to zero. This will protect the financial position of eligible clients, and will prevent them from falling into debt due to unsuccessful trades.

This policy follows global trends in consumer protection. In Europe, recent regulatory changes made by the European Securities and Markets Authority (ESMA) require European CFD providers to limit Retail client losses with automated negative balance protection.

Cristian Moreno, CEO of Admiral Markets Pty Ltd.

The CEO of Admiral Markets Pty Ltd., Cristian Moreno, commented, “Although negative balance protection is not an Australian regulatory requirement, we are proud to be leading the way with this initiative. Our new negative balance policy will help give retail clients the peace of mind they need to trade confidently, and is just one of the ways we support our clients’ investment journey.”

Jens Chrzanowski, Co-CEO of Admiral Markets Group AS

Meanwhile, Co-CEO of Admiral Markets Group AS, Jens Chrzanowski, stated, “As a global company, Admiral Markets feels that the success of our clients is paramount. When our clients succeed, we succeed! Negative balance policies help ensure they have the best possible trading experience, and the entire Admiral Markets Group is proud to see the Australian subsidiary taking the initiative to voluntarily add this policy to their offering.”

Admiral Markets Pty Ltd.’s negative balance policy will be provided on a purely discretionary basis for balances ranging from zero to negative AUD100,000. Find all terms and details of the  policy here.

About Admiral Markets

Admiral Markets is a leading online Forex and CFD trading provider. In addition to a wide range of financial instruments, Admiral Markets offers free educational materials, including analytics, webinars and seminars.

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Risk disclosure: Trading in financial markets on margin carries a high level of risk and losses may exceed your initial deposit. Admiral Markets UK Ltd. recommends you seek advice from an independent financial advisor to ensure that you understand the risks involved with Forex, CFDs and margin trading (https://admiralmarkets.com/risk-disclosure).

 

 

 

Golden Triangle Property Yields ‘High-Grade Gold Discovery’

By The Gold Report

Source: Streetwise Reports   10/17/2018

A Canadian explorer reported the first assays from two zones at its project.

Initial drill results from the Boiling zone at the Hank project revealed that Golden Ridge Resources Ltd. (GLDN:TSX.V) encountered a style of high-grade mineralization unlike any other seen on its property in British Columbia’s Golden Triangle, and the company stated that it “signifies a new high-grade gold discovery.”

HNK-18-010, the first of three holes drilled in the Boiling zone, intersected 20 meters (20m) at 11.63 grams per ton (11.63 g/t) Au and 13.8 g/t Ag, including 2.85m at 67.27 g/t gold and 74.1 g/t silver.

These gold and silver grades are “associated with a quartz-carbonate-pyrite vein stockwork which cuts altered Stuhini volcanic rocks,” according to the release, rather than with high lead-zinc values, as is common in Hank’s Lower Alteration zone.

“This new style of mineralization and high ratio of precious to base metals indicate a higher temperature zone within the overall epithermal system, which may be vectoring toward the core and potentially higher grades,” Chris Paul, vice president of exploration, said in the release.

As for the Kaip zone, standout hole HNK-18-004 returned 168.6m at 0.27 g/t gold and 1.99 g/t silver, also associated with altered and brecciated Stuhini volcanics.

Also noteworthy is that mineralization in both zones was encountered fairly shallowly, making the potential for expansion along strike and at depth likely, according to the company. Testing of these extensions along with stepout drilling in the Boiling zone will comprise the company’s exploration efforts in 2019.

Golden Ridge will release assays from the pending nine drill holes once they become available.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Golden Ridge Resources. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Golden Ridge Resources, a company mentioned in this article.

( Companies Mentioned: GLDN:TSX.V,
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Central Banks Scramble to Buy Gold; David Smith: Pending Trifecta To Boost Metals

By Money Metals News Service

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Coming up David Smith of The Morgan Report and MoneyMetals.com columnist joins me to discuss the recent stock market volatility and what the future is likely to hold when it comes to equities, and also lays out three potential market dynamics that may all converge at once in the near future to give gold and silver the long awaiting boost that metals investors have been looking for. Don’t miss another wonderful interview with David Smith, coming up after this week’s market update.

A second week of stock market volatility is helping to stimulate gold’s safe haven appeal. The gold market shows a gain of $10 or 0.8% this week to bring spot prices to $1,228 per ounce.

Silver is once again lagging, with prices moving up a slight 0.3% on the week. Silver now checks in at $14.69 an ounce.

Platinum is posting an 0.7% weekly loss to trade at $838. Its sister metal palladium is faring better, up 1.5% this week to come in at $1,089 an ounce.

Metals markets are facing the headwind of a rising U.S. dollar. The dollar gained against foreign currencies this week as data on retail sales and industrial production confirmed continuing U.S. economic strength. However, the reports did show deceleration taking place.

Former Federal Reserve chairman Alan Greenspan said on Wednesday that he sees the economy now “sagging.”

If economic reports in the weeks ahead show a trend of growth petering out, the Fed may reconsider its plans for further rate hikes. But for now a December hike is still on the table and further tightening in 2019 remains a possibility in spite of President Donald Trump’s protests.

This week President Trump’s attention turned to the incoming migrant caravan making its way to the southern border. Trump vowed to send military troops to seal the border if necessary to prevent illegal crossings.

Over the past few years, Europe has been hit with waves of migration from outside the continent. The government of Germany and the European Union are demanding that all European countries take in quotas of so-called refugees – many of whom are obviously opportunists seeking free housing and other welfare benefits.

Some countries are resisting the EU’s demands on migration, notably Poland and Hungary. Countries in Eastern Europe that suffered under Communism seem to instinctively recognize the threat posed by an external bureaucracy bent on undermining national identity.

Hungary has enacted laws aimed specifically at thwarting billionaire currency manipulator George Soros. His network of far-left and pro-globalist organizations are actively involved in promoting and financing the migrant crisis in Europe.

Both Hungary and Poland have been better able than other European countries to resist globalization in part because they have hung on to their own respective national currencies. Neither is on the euro. And recently the central banks of both countries have been accumulating large quantities of gold.

This month the Hungarian National Bank announced an enormous jump in its monetary gold holdings. Hungary’s central bank purchased 28.4 tonnes of gold – nearly 10 times the total amount it held in reserve as of last month. It is the country’s first major gold purchase since 1986. The purchase comes shortly after the European parliament threatened Hungary with financial penalties for refusing to participate in the trans-continental trafficking of African and Middle Eastern migrants.

Poland is responding similarly. In fact, the Polish central bank has steadily accumulated several tons of gold over the past few months, bringing its total reserves up to 117 tons.

Russia, meanwhile, continues to be the world’s most aggressive gold buyer year to date. The Russians are adding about 20 tons to their reserves every month as they liquidate holdings of U.S. Treasuries.

The U.S. pushed Russia into a corner with heavy economic sanctions, so now the Kremlin is turning to gold as a way of shoring up its standing in international trade. Russia’s economy isn’t big enough by itself to threaten U.S. dollar supremacy. But together in an alliance with China, they could certainly strike a major blow against the prevailing dollar-centric system.

Those countries that are building up their gold monetary reserves are ensuring their long-term economic viability. And for smaller countries that lack military strength, gold helps ensure their ability to continue existing as independent nations. Given the fragile state of the Eurozone and the attendant risk of the euro currency ultimately collapsing, national currencies that have some gold backing them may be the last ones standing.

Well now, without further delay, let’s get right to this week’s exclusive interview.

David Smith

Mike Gleason: It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, it’s been too long. How are you my friend?

David Smith: I’m very good. It’s been a while since we’ve spoken Mike, and I’m really looking forward to chatting with you again.

Mike Gleason: Well, David, the volatility in the stock markets is dominating the financial news over the past few days and week or so. Lots of metals investors are wondering when we might get the next big correction in stock prices. They’ve been waiting for a few years now. We’ve had some significant selloffs and each time we start wondering if the bears might have the upper hand, but markets seem to recover quickly. What do you make of the recent action in stocks? Are the equity markets in real jeopardy here or this is just another bump in the road?

David Smith: I subscribe to the view that has been very clearly articulated, I think more than by anyone else, by Steve Sjuggerud of Stansberry Research, and this is the way I’m going to play it, even though I have most of my investment money in the resource sector. But his view is that we are going to see a much higher, high before this lengthy bull market is over. And even though we’re going to see a lot of volatility and we can see sharply lower prices from where we are here, over the next few weeks or so, but at some point there will be a bottom and then we’re going to see new all-time high prices in the Dow and the S&P and the triple Q’s. And that will lead to something like a (year) 2000 moment where we really get speculation and people all jumping in because they don’t want to miss out, and we’ll have a bull market top at some point, perhaps some time next year. Maybe 2020, but very probably I would think, next year.

There will be a high in the market that will last for a number of years, maybe a decade and we’ll see a number of years of sub-par performance like we did after 2000, where the markets degrade by several percentage points every year for 8 or 10 years and that will affect a time, accounts and everything else. But before we get to that point there will be a blow off top and if you are a droid enough to get on and then get out in time, you can make quite a bit of money as we go to new all times highs, so that’s the view that I’ve subscribed to in terms of the general market condition.

Mike Gleason: I also wanted to get your take on what we should expect from the Fed in the months ahead. Now they’ve been getting a lot of criticism here recently, especially from the President. We know that our nation’s central bank is anything but altruistic or independent but we don’t know whether the officials there will bow to the pressure that is beginning to mount on multiple fronts. It is starting to look like the next few hikes are going to be a lot tougher than the last few.

Markets look ready to start rebelling and that may not be good for Jerome Powell’s job security. There is another argument which says the Fed is an integral part of the deep state and if Trump is truly at war with the deep state the official there might be willing to finally let markets correct and see if they can stick the blame on the President. So, we would not be shocked to see the Fed start capitulating pretty soon on rate hikes and try to keep markets juiced nor will we be surprised to see officials stay the course on tightening. How about you care to guess on which way Fed policy might be headed?

David Smith: I think all the above are kind of elements in a mix, which in a lot of ways is a toxic sewage, because the Fed has let rates drop to the point of the last decade or so that has become almost, in some cases, negative interest rates. So they’re now draining the punch bowl so to speak and they’re pulling money out on a monthly basis. And so that means there is less money sloshing around for investments and speculation and this type of a thing and getting mortgages at 1 or 2 percent and now they are up to 4 or 5 percent. I think this draining of money each month from the Fed is a function, indirectly of rising interest rates, because by definition there is less money to loan out. All those things are going to create warps and weaves.

The Fed has never gotten it right. If you look back through history, they’ve always done the wrong thing at the wrong time. So whatever they do probably won’t be very helpful. I think it will create a lot of uncertainty in the market. And I think that uncertainty will spill over into people saying, you know I think I need to have some precious metals here to bring certainty back and predictability. And that will be just one of many elements that I believe will help people move more forcefully into the metals than they have in the recent years.

Mike Gleason: We don’t normally delve too deeply into politics here but in the current era it is getting harder to separate politics and the market. So, we’ll put you on the spot and get your predictions about the coming midterms elections. It looks like polling favors the Democrats in a number of races. But the polls have been pretty unreliable of late. You have to account for the clear bias towards the left in the conventional media. So, will Democrats get control of the House and Senate, David, what do you think?

David Smith: You know, Mike, I think it’s a coin flip in here. My sense is that it is certainly possible that they could regain House and perhaps even the Senate. I think the odds because it was such a strange 2016 election where hardly anybody believed what happened could happen. I think that could happen again and if that does, for example, the Republicans maintain control of the House and the Senate. I think it’s going to create a massive civil issue on the streets because the left is already gone really proleptic about having a couple of Supreme Court Justices nominated that they maybe didn’t agree with. That would mean that there would be a third one that would most certainly come during the next couple of years. High probability of that and that’s going to cause all sorts of angst on the left. Near where I live in Portland we’ve seen some really disgusting types of clashes between both sides of the fence here.

On the other hand, if the Republicans lose control of one or both of the House or the Senate, then you’re going to see more and more of the same, with the idea that the President’s that currently elected is illegitimate, and that he should be impeached, which may or may not involve him leaving office. Probably not. But it’s just going to create more and more discord and deepen the division that both sides of the country face. I think either way we’re in for a lot more civil issues, more than we’ve seen the last couple years, and that kind of uncertainty again, is going to cause people to want to have some level of certainty. Especially after the stock market tops, perhaps in the next year.

So, I think the intermediate is a longer-term case for the metals, is becoming brighter than it has been, really since 2011, with the possible exception of that 6-month run we had in January 2016 that ran until that June, which caught most people by surprise, and most people disbelieved it all the way through. So, I think we’re looking at that possibility again, something like that only maybe more durable than what we saw in 2016.

Mike Gleason: Expanding the point here a little bit, setting aside the political ramifications, what outcome do you expect would be better for gold investors? It would be easy to say that the Democrats returning to power in Congress would be bad for traditional markets, and good for metals. But we can also see gridlock in Washington, which we might expect given a Republican President, and a Democratic Congress, being good for Wall Street. Stocks, for example, often perform well when agendas are stalled in Washington D.C. As a metals investor, and again setting aside political ideology, which outcome in November do you think will be better for the gold price in the near term?

David Smith: Well, I think that either outcome is going to be reasonably positive for the metals. And there are issues that go far beyond just internal politics, because we have the issues of the potential of the crumbling Saudi Arabian alliance with the petrodollar. There could be an assassination there, which would throw the Kingdom into chaos, and the war is not going well for Saudi Arabia in Yemen, with the problems with Iran. The Iranian government could actually fall. There’s all sorts of issues in the wider area of the world that could have effects on the metals, and that’s why, I think, one of the reasons we’ve seen countries like Hungary, that increased their gold holdings by 10 times this month. The first holdings that they’ve added since 1968, and it takes their holdings back to the level of 1949, in the central bank. They said, this gives us stability, and it’s one of the least risky assets you could own. This is the central bank talking. Other countries like Poland are adding to their reserves, or they’re repatriating their gold that’s been held in New York for them over the years, or in London.

And so, there’s this massive shift going on… and Russia and China and India continue to buy more gold than they did the last month. So, we’re moving toward a situation where the petrodollar, which is U.S. dollars established outside the U.S., which is about 80 percent of the transaction in the world commerce, I believe now. I think that’s going to becomes more questioned, and I believe that the U.S. dollar will always be first among equals for quite a while. But if you look at where we have been, where we could print any number of dollars to finance things that we didn’t really pay for, and other countries would soak it up. But if we move from 80 percent of the transactions to 70 or 65 or 60, because of the use of the yuan, and the use of gold, in exchange in the One Belt, One Road in China and India, and Iran… that would mean it would really put us in a crimp in terms of our ability to issue unlimited dollars.

We’d have to become a little bit more fiscally accountable. So, all of those things which are really, in a sense, moving in the same direction of discord that we see for different reasons in the United States, I think is going to create a very, very toxic mix of uncertainty and question on the part of people to hold paper assets, and they want something that’s got a backing. And gold, silver, platinum, and palladium are the answer to that. They always have been and I think they’re going to continue to be the answer for part of that equation.

Mike Gleason: Dave, switching gears here, I know you’ve been examining recently the idea of how dollar cost averaging, or buying in tranches can be a great investment strategy, in that you don’t absolutely have to luckily catch the bottom of a market in order to win big. Talk about that, if you would, because I know many metals investors might be trying to pick that bottom and holding out for a drop further from here and I know you’ve got some good advice on that topic. Share that, if you would please.

David Smith: Well you know, it’s so easy to see what happened the last couple weeks; gold was up $35 one day, and I think it’s down about $10 now altogether, after the last few days, and think “Oh well, I can’t afford it now.” But if you have the bigger picture and if you believe, as I do, that we’re seeing a major change in turn here, and this may be the bottom, or it may not be the bottom. But it’s so close in relationship to what’s been in recent years, that the risk-reward had really shifted heavily in the favor of people who accumulate precious metals, especially the gold and silver.

I think the big mistake that anybody makes when they finally decide to do it, or they decide “Oh, I should do it now.” Is to do what some people call a price plop; where they take every cent that they’re going to put into it, and they buy today. Well, maybe that’ll work out, if tomorrow gold is up a hundred dollars, you’ll be a hero. But the odds are that we’re going to see backing and filling, and after strong days like we saw, we’re going to see the markets give back half of it. If you buy in tranches or portions, I have found it’s the easiest way to turn the psychology of fear and greed on their head.

So what happens is, if you buy a third or a fourth of what you want to buy right now, if you’ve decided to do that. Or if you’re going to make an addition, you add a fourth to it. Then you say, “Well, if it goes up tomorrow I’ll wish I had bought a little more. But if it down tomorrow, I’m actually hoping for this so I can buy another quarter of it. Or I’ll buy it next week when it’s lower.” And you keep cheering for lower prices so that your goal is to get the whole thing filled at progressively lower prices, because you’ve decided this is a good value place to do it. But if you buy at higher prices, or you buy too much at one time, you get scared and you get knocked out of the market, and you start reading all these negative things and go “I shouldn’t have bought it, it’s going to make new lows. We’re going to see a thousand dollar gold. And you get out, and it turns right around just the day you get out.

That, to me, is such a simple way to deal with the fear and greed that we all have to deal with. It doesn’t make it a sleep walk, but it does make it so much easier that I really recommend it. I do it myself, and when I don’t do it, when I get too carried away, if I buy mining stocks; if I buy too much of one particular one, sure enough it’s down for a couple of days, and it kind of frightens me too. I just have to remind myself of what I talk about. And you know they say that the path to excellence is followed by repetition of the basics. I know I’ve written about this more times than once, you’ve talked about it, and people say “Well, I’ve heard that before.”, but you know what? If you bring it back into you consciousness and follow it, you will find, I think, it will give you much greater success, and much greater peace of mind than almost any other approach that I can think of.

Mike Gleason: Extremely well put, yes. Very, very good advice. Very valuable advice for people who are going to make any sort of investments. Just take the emotion out of it, too. Like you said, just make your decision about what you’re going to do, and proceed with it, and don’t let the waves take you and toss you from here to there, it’s very valuable.

Now we often talk about the different drivers for precious metals demand, and how those drivers are not necessarily the same depending on which part of the world you’re in. For instance, in Asian cultures; China and India, etc., they call it the love trade because there is a generations old cultural affinity for gold. Meanwhile, in the western world, talking about Europe or the Unites States, it’s the fear trade that drives precious metals buying; people seeking safety in gold and silver.

There are often other drivers too, such as it being an inflation hedge and so forth. And it seems like we’ve got the potential, David, to have all of these key drivers going full tilt at the same time. Talk about that, because it could be there perfect storm here, that we’ve been looking for to finally drive prices higher. Give us your thoughts there.

David Smith: I totally agree with what you’re saying, Mike. And if you look back at the beginning of this bull market, going back to 2000, after we had 20 years of declining prices from the 1980 peak. When that started driving, part of that was the fear trade, and then part of it was the love trade, but the inflation trade hardly existed at all. And now we have a situation where we really have a fairly substantial amount of inflation going on, not only officially, but unofficially too. We all know that when we go to the store and just about everything is going up.

In fact, I’ve read just a couple days ago that the Social Security, which indexes the payments out to the inflation of the preceding year, I believe is going to give out the largest one next year… and I don’t know when that cuts in, but at the beginning of the year, or halfway through or whatever… it’s going to be the largest Social Security payout, inflation adjusted, in about 7 years. We know officially then, that there’s quite a bit of inflation going on. In fact, the Fed actually wants it, but they want to keep it under control. But there’s also a lot more that doesn’t register as well too. Now we’re nearing the strong season for buying in India and in China for, like you say “the love trade”, so that’s going on pretty strong.

And the we have the fear trade with all the stuff we just talked about over the last ten minutes, in the Middle East, and civil unrest in the United States, problems in the Eurozone. And I think all three of these are clicking right now, and they’re not going full tilt, but they’re going pretty strongly so, it’s almost like the tide is reversed, and all the riblets are running in the same direction. There’s no tide that’s right in the middle, and there’s a little bit of current going left and right, and you don’t know which way it’s going. I think the tide is showing itself to be moving in a very pronounced direction, and I expect all 3 of those elements that we’re talking about here to move, demonstrably and visibly, in the same direction going forward for here on in for quite a while.

Mike Gleason: That’s certainly going to be very interesting to see, and it could be what we’ve finally been looking for in terms of higher metals prices if we do in fact get a convergence of all of those things, the love trade, fear trade and inflation hedging all working in unison, that would really boost the metals you would have to think.

Well, finally David, as we begin to wrap up, share with us any final thoughts on the metals that you may have… maybe what you’re looking for during the balance of the year and then comment on anything else that perhaps we didn’t cover, that you think ought to be on people’s minds.

David Smith: I do think that if people wait until what you and I are talking about are front page in the New York Times, if it ever does occur there, when they’re on the talk shows and all this, where everybody’s kind of agreeing with us, which a lot of people don’t right now. Right now we have information risk. We don’t have price risk because prices are relatively stable but if you wait until what we believe happens, comes to pass, which I think it will, and we see $1,400 gold next year and $25 silver, you’re now going to have price risk. You’re going to have the information that’s in the market, but you pay for that by paying a much higher price. I think there’s a lot to be said for people, if they kind of agree with what we’re saying, to start a reasonable acquisition program or add, if they’ve been waiting. And not wait until the coast is clear because then the coast will be a lot more expensive. So, that’s one thing I’d really like to share with people.

Mike Gleason: Yeah, very well put. It’s always fun to get your thoughts on these matters because you do have a different perspective, and I love getting that and having you share that with our audience. Thanks so much for your time today, and for enlightening us, I look forward to catching up with you again before long. I hope you have a great weekend, and we’ll talk to you soon. Take care, David.

David Smith: Very good, Mike. Thank you and I wish everyone in our listening audience the very same.

Mike Gleason: Well that will do it for this week, thanks again to David Smith, Senior Analyst at The Morgan Report and a regular columnist for MoneyMetals.com, and the co-author, along with David Morgan of the book Second Chance: How to Make and Keep Big Money During the Coming Gold and Silver Shock Wave, which is available at MoneyMetals.com and Amazon. Pick up a copy today.

And check back here next Friday for our nextWeekly Market Wrap Podcast. Until then, this has been Mike Gleason, with Money Metals Exchange. Thanks for listening and have a great weekend everyone.


The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.

Gold Junior ‘Set to Break Out’

By The Gold Report

Source: Clive Maund for Streetwise Reports   10/17/2018

Technical analyst Clive Maund charts a relatively unknown gold stock that he believes is positioned to break out.

Casa Minerals Inc. (CASA:TSX.V) is a relatively unknown gold stock that is likely to get more known and more appreciated as the sector comes back into favor again after years in the wilderness.

Yesterday, the company’s stock gapped higher on very strong record volume on news of a gold discovery at one of its properties. We can see this move on the latest 1-year chart for the stock which shows how it has been stuck in a rectangular consolidation pattern from the start of this year. We can also see how yesterday’s sharp gain failed to break the price out of the top of the pattern, since it closed at the resistance at the top of it.

However, what is most important to observe is the large gap combined with very heavy record volume accompanying the move – this is very bullish and indicates a high probability that the stock will soon proceed to break above the resistance at the top of the Rectangle to enter a new bull market, and in this it should be assisted by the sector as a whole advancing, which it is now in position to do. Note that we could see a minor reaction back from the resistance first before it breaks out, which would not be a problem.


Casa Minerals is therefore rated an immediate speculative buy, and especially on any minor reaction. The company has a reasonable 36.4 million shares in issue. Note that this stock is only traded on the Toronto Venture exchange.

Casa Minerals website.

Casa Minerals Inc, CASA.V, closed at C$0.215 on 16th October 2018.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Casa Minerals. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Casa Minerals, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: CASA:TSX.V,
)

Israel’s 50-Year Time Bomb

Why Is the Trump Administration Compounding Palestinian Distress?

By Dan Steinbock

In the quest to change Israel’s very nature, the Netanyahu government is pushing Palestinians to an edge – with the support of the Trump White House.

Recently, a report by the International Monetary Fund (IMF) warned that “deepening rifts between key stakeholders and surging violence in Gaza further imperil prospects for peace.” That should not come as a surprise anymore.

While economic and strategic polarization is steadily deepening between Israel and the Palestinians, the “peace initiatives” of the Trump White House are undermining half a century of American diplomacy and pushing the region closer to an abyss.

In the past, the Netanyahu government has vehemently opposed all parallels with South African apartheid. Unfortunately, new data suggests that under apartheid South African blacks had more to hope for than Palestinians today.

Unsettling parallels

Between 1994 and 2017, Israeli GDP per capita, adjusted to purchasing power parity, increased by 150%; in West Bank and Gaza, the comparable figure was 160%. Yet, the Palestinian starting-point is so low that progress in living standards is largely fiction.

In 1994 – amid the peace talks in Oslo – Palestinian living standards were only 6.4% ($1,526) of the Israeli level ($23,693) (Figure a). At the time, the hope was that peace would bring increasing stability, which would foster prosperity and rapid catch-up growth – until the radical-right assassination of Prime Minister Yitzhak Rabin triggered still another cycle of violence.

Last year, Palestinian living standards were about 7.3% ($2,494) of the Israeli level ($34,135). After more than two decades of new wars and friction, terrorism and restrictions, the catch-up has amounted to less than a percentage point.

Let’s set aside political debates about the causes and only focus on economic facts; i.e., changes in income polarization. And let’s compare the last two decades of apartheid South Africa with the past two decades between Israel and Palestinians. In the mid-70s, black South Africans’ annual per capita income relative to white levels was about 8.6%; that is, two percent higher relative to the Palestinian level vis-a-vis the Israelis. By the time apartheid came to an end with the formation of a democratic government in 1994, black South Africans’ per capita income relative to the whites had climbed to some 13%. In contrast, the comparable Palestinian level was half of that figure last year (Figure b).

 

Figure   Unsettling Comparisons

  • GDP Per Capita PPP: Israel Vs West Bank and Gaza (1994-2017)

 

  • Living Standards: Palestinians/Israelis and Black/White South Africans

Source: a. World Bank. b. Palestinians/Israelis: World Bank. Black and White South Africans: OECD.

 

Ironically, South African apartheid was more conducive to economic progress in its last two decades than life in the West Bank and Gaza in the past two decades.

Moreover, the Netanyahu government’s economic policies have also dramatically increased economic polarization in Israel. In the early 1990s, the Gini coefficient, a measure of inequality, was around 35 in Israel, at the level of Portugal and Italy. Closer to 43 today, it is among the highest in OECD countries, and at the level of Nigeria and Zimbabwe. But there may be still worse ahead.

Undermining Israeli Constitution

Protests in Gaza ahead of, and turbulence since Israel’s Independence Day and the relocation of the U.S. embassy to Jerusalem in May, mark the most serious escalation since the 2014 war. With his decision, President Trump departed from the decades-long U.S. executive branch practice not to recognize Israeli sovereignty over any part of Jerusalem.

Meanwhile, a steep decrease in Palestinian Authority and external funding to Gaza since 2017 has worsened already dangerous humanitarian conditions there. According to the World Bank, Gazans’ real per capita incomes have fallen by one-third since 1994, owing largely to the West Bank-Gaza split and to Israel’s and Egypt’s tight controls on goods and people transiting Gaza’s borders.

Instead of seeking to alleviate acute distress in the region, the White House has given de facto support to the new nation-state law, which defines Israel as a Jewish nation-state, despite a significant Arab minority. Unsurprisingly, the new law has been opposed by demonstrations and a high-profile petition by Israeli intellectuals – including Amos Oz, David Grossman, A. B. Yehoshua, Eshkol Nevo, Etgar Keret and Orly Castel-Bloom – who demand the Netanyahu government to abolish it: “The nation-state law, according to which the State of Israel is the national state of the Jews only, expressly permits racial and religious discrimination, nullifies Arabic as an official language alongside Hebrew, does not mention democracy as the foundation of the country and does not mention equality as a basic value.”

In this status quo, Trump’s indiscriminate support for the Netanyahu government effectively nullifies any remaining impression about the U.S. as a “neutral arbiter” in the peace process. What makes the moment even more dangerous is Netanyahu’s inclination to ignore the warnings of Israel’s highest defense authorities, the willingness of the Trump administration to embolden these fatal shifts, and the erosion of any remaining hope on the Palestinian side.

50 years of missed warnings

At the eve of the Yom Kippur War in 1973, when I toured the West Bank and Gaza, what was most striking was the apparent calm on the surface and the lingering tensions behind the official façade. It was this odd mixture of hollow expectations and raw realities that accounted for the nightmares that ensued.

After the Yom Kippur War, the Labor coalition began to expand the boundaries of Jerusalem eastward, which encouraged a group of Messianic settlers to create a foothold in the West Bank, including Ma’ale Adumim by the Gush Emunim which sparked a protest by the “Peace Now” movement. I was there, as was my good friend Amos Oz, the famous Israeli author and one of the leaders of the peace movement. The concern was that if the settlers were permitted to create a substantial de facto presence, it might be legitimized over time with de jure measures, which would undermine Israel’s foundations, polarize the relationship between Israel and the Palestinians, while fostering cycles of terror and conflicts.

Despite a relatively broad popular opposition against the settlements, successive Israeli governments failed to contain them, despite Egyptian President Sadat’s bold peace initiative. Once again, the writing on the wall was ignored and the ‘80s wars in Lebanon ensued, along with the first large-scale Palestinian uprising against Israel in the West Bank and Gaza at the turn of the ‘90s. That’s when the Madrid Conference in 1991 and the subsequent Oslo Accords offered a glimpse of an alternative future scenario – but one that perished after Rabin’s assassination.

Today, half a century has passed from the Six-Day War and the Israeli conquest of the West Bank and Gaza. According to the Peace Index by the Israel Democracy Institute, last July three out of every four Israelis (74%) viewed the chances of Trump’s peace plan being a success as low or very low. According to the most recent survey, 89% of Israeli Jews do not see peace in the horizon. Almost half of Israeli Jews believe the Palestinians should have a state of their own. More think the two-state solution would be impossible to implement. After a generation of increasing bitterness, the share of the skeptics is relatively higher in younger age groups.

The message is fairly clear. Most Israelis believe that President Trump’s initiatives are undermining peace in the region. Most support a two-state plan. But since Washington is not seen as a neutral arbiter, a lasting peace plan is not enforceable.

As the U.S. provides one-third of the annual budget of the UNRWA, the vital relief agency for Palestine refugees since 1948, and has refused to make further contributions, some 5.4 million Palestinian refugees in the West Bank and Gaza, and in Jordan, Lebanon and Syria find themselves in a new situation.

Reportedly, Israel supported only gradual reduction of the UNRWA’s funding and no reductions in Gaza until Netanyahu changed course without consulting his own security officials. Meanwhile, leading Israeli defense authorities have suggested that steep UNRWA cuts could further radicalize Gaza and destabilize the West Bank.

As the IMF data suggests, the status quo is entering an entirely new stage, in which economic agony could result in a failed state before an actual state is formed, while militarization of the crisis and the absence of hope on the Palestinian side could unleash even more desperate waves of terror internationally.

Half a century of policy mistakes should be an adequate warning.

About the Author:

Dan Steinbock is the founder of Difference Group and has served as research director of international business at the India, China and America Institute (US) and a visiting fellow at the Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/     

The original commentary was published by the prestigious Consortiumnews on October 16, 2018.

 

The Incredibly Bullish Set-Up for Gold

By The Gold Report

Source: Michael J. Ballanger for Streetwise Reports   10/17/2018

Precious metals expert Michael Ballanger discusses the bullish set-up for gold and why he believes this time is different.

For the first time in months, Fido the Wonder Dog has been in my office and at the foot of my bed 24/7 for the past few days giving me great solace that the current advance in precious metals prices is here to stay. Gone are his nervous tics every time my chair squeaks or when I give a little “Whoop-whoop!” at the sight of decent gold quote and most certainly absent are all of the caked mudballs in his fur from having to sleep (hide) under the tool shed.

It was only last February that I found myself waking up to the sight and sound of my faithful pet soundly (and safely) asleep at the foot of the bed. Those were the days of gleeful celebration in the certainty of a $1,400 breakout as gold was being heavily promoted by all of the letter writers and bloggers and Bay St. analysts with the HUI (NYSE Arca Gold BUGS Index) was around 210 and all seemed right with the world. However, that fateful morning when I woke up to see gold down $10 to $1,365 after enduring yet another “failed breakout” and was about to slam my chair into my desk, I suddenly stopped because that was Fido’s favorite locale during the day. To my astonishment, he was outside my main floor den window, looking in at me with a stressed look on his face and tail firmly between his legs. As I was about to admonish him for his absence, he suddenly turned on a dime and tore off towards the tool shed as if fleeing from a mountain lion, whereupon I was devoid of dog for what I am sure was the entire month of February, during which, I might add, the HUI crashed from 210 to 168 and gold cratered from $1,365 to $1,301. The direct correlation between the future trends of gold and silver prices and the future living accommodations of my dutiful dog was then and remains today intact. With gold in its current rally mode, it is as if Fido senses a buried and very dead fish in the ground and is reveling in the mere thought of rolling in it. Ergo, gold is going higher—MUCH higher. (Fido takes a bow.)

What the Fed is attempting to do is remove the punch bowl during a time when rising domestic prices are empowering the labor force to demand wage increases but since outsourcing (and the threat thereof) has crushed any and all leverage for North American workers, they are making a mistake. The Federal Reserve Board and all of its global central bank brethren are REACTIVE in their policy moves; they are never PREDICTIVE. They are simply trying to manage the bubbles now floating in the global atmosphere and ensure that they are not going to cause anything close to the panic that gripped the world in 2008. The problem with that is the sheer magnitude of the fiscal impropriety of governments and by that I mean ALL governments whose experimentations and speculations have disrupted the natural order of Darwinian economics and created an ocean of moral hazard the likes of which we shall never again encounter.

If there were no central bankers out there tampering with the natural ebb and flow of goods and services for the enrichment of the elite classes (née bankers), they would never have to arbitrarily set the Fed funds rate or have a meeting to discuss economic policy. I have written about this before but the boom/bust nature of capitalism that is the Battle Hymn of the Socialist State is not caused by big business or billionaire entrepreneurs with black top hats and handlebar mustaches; it is caused by corrupt politicians and even MORE corrupt non-elected, government administrators appointed to positions of power on a platform of protecting the elite classes by way of bureaucratic edicts and rules and regulations raising the barriers to entry and lowering the barriers of abuse.

The problem today lies in one word—DEBT. DEBT is the leviathan lurking beneath the waves of economic stability. It used to be self-cleansing, in that countries that went to war (such as Great Britain) without the resources to finance a campaign usually lost their status as purveyors of the world’s reserve currency because in order to maintain their military advantage, they were forced to extend their budgets beyond their means by way of DEBT. It crushed the once-thriving German economy in the 1920s (War Reparations Act) and the British economy in the late 1940s (debts owed to America) and the U.S. economy in the 1970’s (Vietnam) before the Americans figured a way to flood the world with U.S. dollars thus ensuring the longevity of its reserve currency status and minimize any need whatsoever for fiscal prudence or monetary accountability.

As an investor, there are times when I feel a crushing need to write down on paper, in bullet form, the reasons for buying (or selling) an asset. During these times, if I discover that my reasons have held up after days upon days of self-scrutiny and inward testing, I will usually pull the trigger. I have learned over the years that if you are planning to hold a position longer than it takes for the email confirmation to arrive (in the 1980s I used to say “before the ink dries on your confirmation letter”), your entry should never be the split-second after you have made your mind up; it should be a staged entry where you divide your capital into five equal parts and commit 20% every two to three days. That said, look at the two charts shown below:

COT and Gold charts
See Full Size Image

Notice the two massive offsetting net long/net short positions between Large Speculators and Commercials back in February and continuing through mid-June as gold had THREE probes into the $1,365-1,375 resistance before finally succumbing to the oceans of Commercial paper sales which created the price cap. Fast forward to today, where the situation has gone 180 degrees with the roles from first half of 2018 completely reversed.

Now, could these numbers be fabricated by the bullion banks in order to entrap the managed money crowd? Could the CME and the banks be colluding to cloud the landscape? The answer, of course, is “Yes, quite possibly,” but it is unlikely that is the case. I have traded off these data successfully in the past but I stress that the COT data is rarely, if ever, a timing tool. It is more of a sentiment indicator where the two main protagonists, the Large Specs and the Commercials (bullion banks), convey their bullish or bearish bias via the COT. Furthermore, it is not infallible as there have been occasions where the usually correct Commercials have been offside and been forced to unwind losing positions. However, the probability of winning while betting AGAINST these cretins is very low, which is precisely why I backed up the truck in late August and why I am adding aggressively this week.

Now, in recent days, the COT Report is everyone’s newfound elixir for solving the gold enigma so you have to beware of any indicator that suddenly becomes widely analyzed, anticipated and advanced. When I called the bottom of the gold market on Dec. 4, 2015, at $1,045, there were only a handful of guys like me that wrote about the COT. Today, there are dozen upon dozens all dissecting the data with meticulous attention to the Bank Participation Rate, the Managed Money breakdown, and of course the EFP fiasco, and everyone draws their own conclusions from the data, which is what interpretation is all about.

My bullish bias for gold and silver is tempered by my fear that global liquidity may be under stresses not unlike 2008 but looking beyond the next 90 days, the new bull market that began in late 2015 for the metal and on January 19, 2016 in the HUI has resumed and is a far safer investment haven than bonds, stocks or real estate, all of which have levitated into bubble territory and are ripe for a crash of epic proportions. The precariousness of the month of October has created a pause in the gold and silver rallies, which I believe one should use to increase exposure to the space.

On a side note, the exploration game is a very difficult game (as we all know too well) but it can be exciting and profitable as a few weeks back, I put out a note regarding Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB) at around the $0.35 level while following up with a mention of Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTC) at $2.35. Since then, ABN is down 50% and GBR is up 50% with ABN’s last two releases falling in the “underwhelming” category while GBR’s have been decent but the main difference between the two is the shares issued. GBR has a very manageable 35.3 million while ABN has a log-jamming 140 million, so the market makers are having a field day shorting every little uptick in ABN while they are deathly afraid of getting caught with the tight share structure enjoyed by GBR. Nevertheless, ABN is running out of time as winter bears down on the B.C. Rockies and on ABN shareholder faithfulness. That is a direct contrast with GBR whose Red Lake operation actually prefers winter due to the ability to build winter roads on the ice and snow improving site accessibility and reducing costs. I am inclined to add to GBR while holding ABN but for those with little patience and shallow pockets, 24 ABN holes remain unreported and are scheduled for release right up until December. Since it is sure to go very quiet thereafter, that will be our window into which to lighten the positions with a view to re-entry in the spring.

As a speculation, I have added a small piece of Canuc Resources Corp. (CDA:TSX.V) today at $0.10 after the announcement of the closing of the Full Circle Energy deal. The company will be soon drilling a well into a zone believed to be in the Upper Shaunavon Formation, a well-known oil-producing horizon in southwest Saskatchewan. At a $4.5 million market cap, the stock appears to be undervalued. I base that on the current revenue stream emanating from its Texas gas wells, which amounts to around $30,000 (U.S.) per month. Now, while that alone is not enough to justify any type of multiple, it at least keeps it from encountering any burn rate that always results in continuing dilution. If successful, the cost of this soon-to-be-drilled well will be recovered in four quarters from completion and generates $240,183 initially declining to $63,556 in monthly cash flow for seven years. Net result: a significant bump in the stock but without the normal downside because of a) the current depressed valuation. b) ongoing revenue from Texas, and c) the retention of the San Javier silver/gold prospect in Mexico where the company reported 10m of 210 g/t silver and 5 g/t gold earlier this year. I like speculations like that especially on a $0.10 stock.

I urge you all to take a snapshot of that COT report shown above; it may be the last time in history that you see two forces at both ends of the trade with such ferocity of size and conviction. History favors the Commercials just as we witnessed in 2015 so I am heeding history and betting large on the final quarter of 2018 delivering a $1,400 gold price, $20 silver, the HUI at 300, and fair-weather Fido asleep at my feet.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Great Bear Resources, Aben Resources and Canuc Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Great Bear Resources and Aben Resources. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aben Resources and Canuc Resources, companies mentioned in this article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

( Companies Mentioned: ABN:TSX.V; ABNAF:OTCQB,
CDA:TSX.V,
GBR:TSX.V; GTBDF:OTC,
)

Groundbreaking Biotech Company Takes Major Step Forward with Deal with Chinese Partner

By The Life Science Report

Source: Streetwise Reports   10/17/2018

Canada-based biotech company signs major deal with Chinese partner to advance groundbreaking technology in the skin and tendon rejuvenation space.

RepliCel Life Sciences Inc. (RP:TSX.V; REPCF:OTCQB), a Canada-based biotech company, focuses its attention on regenerative medicine technology.

On October 11, RepliCel announced that it had closed an investment with Chinese partner YOFOTO.

Initially in January 2018, RepliCel Life Sciences landed its key commitment from YOFOTO. The company shared that, “YOFOTO (China) Health Industry Co. Ltd [was] to invest in becoming RepliCel’s strategic partner for Greater China,” with two of the three licensed programs focused on skin rejuvenation.

Most experts regard China as the third largest cosmetic treatment market (after the United States and Brazil). Management considers the recent news significant for RepliCel’s future development.

“The Chinese cosmetic treatment market is growing up to six times faster than the global average by number of treated people with the number of procedures increasing as much as 40% year-on-year,” RepliCel reported.

In May 2018, RepliCel Life Sciences announced bind terms with partner YOFOTO that involved an “up-front investment of CA$5,090,000 at CA$0.95 per share plus 20% warrant coverage exercisable at CA$0.95 per share for a period of two years.”

YOFOTO has committed to spending a minimum of $7 million over the next five years in greater China on ReplicCel’s programs and related infrastructure. “This includes [YOFOTO] financing technology transfer, manufacturing, regulatory submissions and clinical trials in greater China as well as the commercial launch of our dermal injector in greater China.” But RepliCel notes that YOFOTO has indicated that it expects to spend much more than the minimum figure.

In addition, YOFOTO has “committed to over $4.5-million in milestone payments, some of which are pre-commercial, plus sales royalties.”

Now that the deal is fulfilled, what does this mean for RepliCel’s future growth?

Products Launching in Europe and Asia

RepliCel believes its technology has the potential to disrupt the dermatology space. CEO R. Lee Buckler shares that, as of late, the company has continued to extend its blueprint into both Asia and Europe.

According to RepliCel, “The [YOFOTO] transaction includes the grant of an exclusive license to YOFOTO of the company’s tendon regeneration cell therapy technology (RCT-01), skin rejuvenation cell therapy technology (RCS-01) and its injection technology for dermal applications (RCI-02) (excluding hair-related treatments) in greater China (Mainland China, Hong Kong, Macau and Taiwan).”

While all of the products are currently pre-commercial, the company says it has a strategic plan for maturing its first wave of developing assets to commercial launch in select markets in the short-term.

RepliCel’s nearest-term commercial asset is RCI-02, the proprietary “dermal injector that brings microdose precision in a way in which no other injector is capable of doing,” according to the company. Once the European CE Mark is received, that will open up pathways beyond Europe.

According to Buckler, “There are a number of countries that accept a CE Mark or an FDA 510(k) approval as sufficient to commercialize medical devices in their country. One of those countries is Hong Kong.”

Each of RepliCel’s cell therapies successful completed phase 1 trials last year. Some countries have a faster pathway to commercialization of these types of products. Through RepliCel’s partnership with Shisheido, a clinical study of RCH-01 is being run in Japan. Data is expected to be released sometime in 2018. RepliCel noted, “With sufficiently positive data from the RCH-01 clinical study in Japan, Shiseido may be in a position to launch the product in Japan for the treatment of patients with androgenic alopecia.”

The company’s tendon regeneration cell therapy, RCT-01, is designed to help those who suffer from chronic tendon degeneration. Early pilot studies showed that an injection of these highly collagen-specific cells produced significant reduction in pain and an increase in function within the participants. The same collagen-producing cell therapy product recently demonstrated, in a clinical trial of RCS-01, the capacity to significantly increase the collagen matrix under the skin which keep skin young-looking and wrinkle-free.

These therapies are now being codeveloped in greater China with RepliCel’s new partner, YOFOTO.

This week, RepliCel released a list of near-term catalysts over the next 15 to 18 months:

  • Anticipated announcement of clinical results from the Shiseido-funded pattern baldness study in Japan;
  • Commercial-grade prototypes of the dermal injector built and available for clinical and functional testing;
  • Launch of clinical testing of the injector at select clinical sites for limited clinical applications;
  • CE Mark of the dermal injector to be followed by a new level of commercial partnership discussions;
  • Registration of the RCI-02 CE Mark in Hong Kong for a commercial launch of the dermal injector by YOFOTO;
  • A decision from Shiseido on if and when it intends to launch of the RCH-01 in Japan;
  • Data from the gene marker identification study continuing at University of British Columbia;
  • Receipt of grant financing to finance further product development;
  • Completion of YOFOTO’s manufacturing facility in Ningbo, China;
  • Completion of technology transfer of the two licensed cell therapy programs to YOFOTO;
  • Guidance from Chinese regulators on approvals for clinical trials of RCS-01 (skin rejuvenation) and RCT-01 (tendon regeneration) in China;
  • A designation from Chinese regulators for the RCI-02 (dermal injector) in mainland China.

Immediately prior to the YOFOTO investment, there were 21 million RepliCel shares outstanding, with another 5 million issued to YOFOTO (19.9% of outstanding shares) in exchange for the investment.

CEO Buckler says 15% to 20% of shares are held with management, shareholders close to management and long-term committed shareholders.

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Disclosure:
1) Nikia Wade compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: RepliCel Life Sciences. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of RepliCel Life Sciences, a company mentioned in this article.

( Companies Mentioned: RP:TSX.V; REPCF:OTCQB,
)

Gold Explorer Finds Mineralization South of Recent Discovery

By The Gold Report

Source: Streetwise Reports   10/17/2018

Drill results from this Golden Triangle project continue highlighting further exploration potential.

Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB) reported that the first three drill holes from the South Boundary zone at its Forrest Kerr project “intersected numerous broad horizons of mineralized veins containing abundant pyrite and variable amounts of chalcopyrite,” according to a news release.

Uncovering this mineralization constitutes a “significant development for the company and illustrates the robust discovery potential over the relatively untested 4 kilometer (4 km) by 2 km geochemical anomaly,” said President and CEO Jim Pettit in the release.

The three holes over 1,153 meters (1,153m) were drilled 1.5 km south of the delineated mineralization in the North Boundary zone. Hole FK18-21 hit 379.2m of 0.1 grams per ton (0.1 g/t) Au starting at a depth of 4.8m, including 89m of 0.24 g/t Au and 9m of 0.95 g/t Au.

In the 1m or 2m sample intervals, gold values ranged from trace to as high as 5-plus g/t, silver values ranged from trace to 8.7 g/t and copper values from trace to up to 9,500 parts per million.

Within Forrest Kerr’s South Boundary zone is a mineralizing event that warrants follow-up drilling, Pettit noted, adding that the chance of finding further metal mineralization, in any direction, is high.

Some 9,900 meters of drilling in 36 holes has been completed in Forrest Kerr during the 2018 season, mostly in the North Boundary area. The company has not yet reported on 24 holes, all from the North Boundary Zone.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Aben Resources. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Aben Resources, a company mentioned in this article.

( Companies Mentioned: ABN:TSX.V; ABNAF:OTCQB,
)

Biotech Reports Encouraging Interim Gene Therapy Data for Skin Disorder

By The Life Science Report

Source: Streetwise Reports   10/17/2018

This company’s findings to date for its topical therapy candidate have encouraging implications for an orphan indication.

In an Oct. 15 research note, analyst Joseph Pantginis with H.C. Wainwright & Co. reported that interim data were encouraging from Krystal Biotech Inc.’s (KRYS:NASDAQ) ongoing Phase 1/2 study with KB103, its topical gene therapy candidate for recessive dystrophic epidermolysis bullosa (RDEB), a genetic disorder causing severe skin fragility and easy blistering. “Although only in two patients, the overall reported results were compelling and provided the rationale for the study to move forward as the first potential topical gene therapy,” he added.

Based on these results, H.C. Wainwright now projects KB103 has a 25% versus 22% chance of success in the United States and the European Union. Therefore, it raised its price target on Buy-rated Krystal Biotech to $35.50 per share from $32. Pantginis noted further potential upside exists as clinical data are released for KB103 in DEB and for another of Krystal’s assets,KB105, for treatment of autosomal recessive congenital ichthyosis, another skin disease.

Pantginis summarized the interim results of the Phase 1/2 trial evaluating KB103 in DEB. In general, the two enrollees met the efficacy and safety endpoints. Both experienced wound closure within two weeks in areas topically treated with KB103. The wounds treated with a placebo never closed in one patient and took 10 weeks to close in the other.

Additionally, the KB103-treated wounds remained closed over time. At 4.5 and 3.5 months out, for Patient One and Patient Two, respectively, the wounds were still closed. One patient even chose to stop bandaging a KB103-treated wound that had needed constant bandaging prior to the treatment. “Importantly, this represents a significant improvement in the patients’ quality of life,” Pantginis pointed out.

The patients tolerated KB103 well, with no inflammation or skin reactions in the treated areas or serious adverse events overall. This held true even when patients received additional KB103 applications.

Also worth noting, according to Pantginis, is that topical administration yielded results similar to those with intradermal injection. A topical therapy is more convenient for patients and gives Krystal an advantage over its competitors. “We believe the results presented today represent the first and important clinical validation for KB103 and lifts the initial, potentially overhanging questions related to the validity of the topical administration.”

Based on these interim results, Krystal amended its protocol for the Phase 3 trial, designed to evaluate wound closure durability. For one, it eliminated the intradermal injection arm. Also, it opened enrollment to pediatric patients and allowed for increased KB103 dosing for larger wounds. The Phase 3 study is expected to start in H2/19.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.

Disclosures from H. C. Wainwright, Krystal Biotech Inc., Target Price Revision, Oct. 15, 2018

I, Joseph Pantginis, Ph.D., certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Krystal Biotech, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of Sept. 30, 2018 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Krystal Biotech, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The Firm does not make a market in Krystal Biotech, Inc. as of the date of this research report.

H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.

( Companies Mentioned: KRYS:NASDAQ,
)

Deep Drilling Hits Thick Oxide Gold Intervals at Nevada Deposit

By The Gold Report

Source: Streetwise Reports   10/17/2018

This Canadian company released the results from two more drill holes.

Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) reported that one core hole and one reverse circulation hole drilled in the northern portion of Dark Star at its Railroad-Pinion project intersected vertically continuous zones of oxidized gold mineralization. Intercepts from core drill hole DC18-22 included 213.7 meters (213.7m) of 2.52 grams per ton (2.52 g/t) gold and 163.1m of 1.24 g/t gold.

“These results continue to confirm oxide gold resource potential below the depth of the current resource model as well as lateral continuity to higher-grade mineralization,” noted the company.

With these two holes, Gold Standard has reported results from 121 of the 132 holes drilled at Dark Star. CEO Jonathan Awde stated, “Dark Star is a truly exceptional opportunity which has still not reached its full potential as an oxide, heap-leach project. We have just begun to explore its emerging potential for higher-grade sulfide mineralization at depth.”

An expanded fall 2018 drill program, with two components, is underway. In one, about 17 reverse circulation holes over 5,400m will test new targets at depth below the known resource. In the other, 18 more holes will test the potential for further lateral expansion to the north, west and south of the current resource.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Gold Standard Ventures. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.

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