Posted by AGORACOM-JC
at 5:00 PM on Tuesday, January 7th, 2020
SPONSOR: Spyder Cannabis (SPDR:TSXV)
An established chain of high-end vape stores. Aggressive expansion
plan is already in place that will focus on Canadian retail and US Hemp
derived kiosks in high traffic areas. Click here for more info.
More Canadians passing on beer in year one of legalization
The report cites data from industry advocacy group Beer Canada, which found beer volumes fell by three per cent through November. Declining sales have led to several partnerships between alcohol and cannabis companies, such as Constellation Brands Inc.’s investment in Canopy Growth Corp. in November 2018. The recent decline in volumes is “far worse†than trends seen in the previous four years, when beer industry volumes fell an average of 0.3 per cent, according to Cowen & Co. analyst Vivien Azer.
Posted by AGORACOM-JC
at 12:35 PM on Tuesday, January 7th, 2020
Investment Highlights
Kenbridge property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper
17.5 (21.8 fully diluted) percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property
Kenbridge Ni Project (ON, Canada)
Advanced stage deposit remains open in three directions, is
equipped with a 623m deep shaft and has never been mined
Preliminary Economic Assessment completed and updated returned robust project economics and operating costs including a NPV of C$253M and cash costs of US$3.47/lb of nickel net of copper credits
Plans for Kenbridge include updating PEA,
advancing the project through to feasibility and exploring the open
mineralization at depth
Posted by AGORACOM-JC
at 12:03 PM on Tuesday, January 7th, 2020
SPONSOR: BetterU Education Corp.
aims to provide access to quality education from around the world.
The company plans to bridge the prevailing gap in the education and job
industry and enhance the lives of its prospective learners by developing
an integrated ecosystem. Click here for more information.
The Major Edtech Trends In 2020, According To VCs In India
India, being one of the youngest countries in the world and boasting a rapidly-growing startup ecosystem, offers a widely untapped opportunity for many sectors, both locally and globally.
Venture capitalists have gravitated to the Indian market in great numbers in the past decade to pour capital into this opportunity, pushing startups towards scalability in every sector.
Edtech startups need to take stock of the VC view of the ecosystem and keep pace with the trends they expect in the new year.
Venture capital is about capturing the value between the startup
phase and the public company phase. — Fred Wilson, co-founder of Union
Square Ventures
India, being one of the youngest countries in the world and boasting a
rapidly-growing startup ecosystem, offers a widely untapped opportunity
for many sectors, both locally and globally. Venture capitalists have
gravitated to the Indian market in great numbers in the past decade to
pour capital into this opportunity, pushing startups towards scalability
in every sector. Edtech is no different, and in recent years, this
sector has become one of the biggest opportunities for tech startups in
the Indian context.
As Unitus Ventures’ senior associate Sunitha Viswanathan told Inc42,
the large market of close to 250 Mn students in the K-12 segment and
over 10 Mn youth graduating every year mean that India is the land of
massive potential for edtech disruption.
“Given the huge lopsided teacher: student ratio, this can only be
solved by using tech. Hence, there is a necessity more than a choice.
And rightly so,†she added.
While we spoke to edtech startups about the trends
they expect to observe in 2020, we also wanted to take the VC view and
what they expect from the ecosystem in the new year. What will be the
factors that make or break edtech startups in 2020.
Factors For Success In Edtech
Indians spend tens of billions on education every year. With
disposable incomes continuing to rise, there is a massive prize for the
startups that achieve success in this space. According to Anirudh Damani,
managing partner, Artha Venture Fund, the key to success for an edtech
startup will be to sell directly, thereby keeping a short feedback loop.
“That will allow them to innovate faster, adapt, and cater to their
end-user requirements quicker. Therefore, in my opinion, selling
directly to end-users is the key to creating success in the edtech
space,†he added.
Sajith Pai,
director, Blume Ventures further said that the increased focus on
regional language learning and data analytics will play an important
role in the success of edtech startups in 2020, just like it did in
2019.
Edtech’s Focus On Increasing User Adoption In 2020
Omkar Kulkarni,
the head of GMC Calibrator (Gray Matters Capital’s Digital Accelerator
Program, suggests four areas that edtech startups in India need to focus
on in the near future:
Gain engagement by learning insights through user behaviour analytics
Highlighting common user patterns to improve product and monetisation at early stage
Cut reliance on digital marketing to reach out to users
Deliver content through a human-centric design process to increase engagement
Blume’s Pai further added that products that teach with a mix of
technology and human intervention will be able to generate faster
adoption while keeping costs low and scalability high.
“Also, college admissions and employability are becoming highly
competitive and thus big stress points for parents and students. Thus,
education platforms that can create FOMO among students (or parents) –
either by having a large number of students on board or by having the best students onboard, attract more customer adoption faster,†Pai told Inc42.
Pranjal Kumar,
CFO and head of Education Fund at Bertelsmann, believes that being
outcome focussed i.e. credentials, test results, job placements etc will
deliver a higher chance of success for edtech startups. “High-quality
product with high average-order-value and the right balance of online
and offline, depending on the target learner and segment of education
should be the focus in the near future for edtech startups.â€
7 Trends For Indian VCs In Edtech In 2020
Indian edtech startups are currently focussing on all fronts — B2B,
B2C, B2B-B2C and C2C. The most prominent sub-sectors have been test
preparation, online certification, skill development, online discovery,
STEAM kits, and enterprise solution among others.
According to Datalabs by Inc42, in terms of
the number of unique edtech businesses funded between January 2014 and
September 2019, skill development-focused startups have been the most
preferred. However, capital inflows into the test preparation and online
certification segments are comparatively higher. Together, these two
sub-sectors make up for 91% of the total funding in edtech startups.
This shows an imbalance in terms of business models in the Indian edtech
ecosystem.
However, according to Bertelsmann’s Kumar, a few more models are
expected to see a lot of innovation in the near future. He said
bootcamps with or without job assurance, higher education, online
programme management models, K-12 tutoring will be huge markets and are
currently starved of quality teaching both in curricular as well as
co-curricular subject.
Here’s what VCs told us to expect in 2020.
Skilling Startups
The pace of change in technology continues to accelerate. Therefore,
education is no longer just the standard 12+4+2 experience. There’s a
need for continuous education that will re-skill or up-skill the workers
of today for the challenges of tomorrow. Startups that provide
platforms to teach, train, and engage the working population to improve
their skills will do very well.
AI Transformation
AI in edtech can help understand better how learning actually
happens. If we can understand how one learns the steps in quadratic
equations, then this can be used in classrooms by teachers to deliver it
more effectively. This will help define pedagogy more tightly
OTT Educators
Even though we hear a lot of buzzwords like artificial intelligence,
virtual reality and blockchain, it is the exponential increase in
viewership of the likes of TikTok, YouTube and other OTT platforms that
will see a trend of content creators delivering educational content on
OTT platforms to improve discoverability, reach and scale.
Parents To Invest More
Another challenge for edtech platforms is the cost aspect for
families. As far as high school education is concerned, VCs see parents
getting more accustomed to spending on tech products for cognitive
learning as well as a change in focus of parents from traditional
curriculum to 21st-century skills.
Unbundling Of Education
Don’t hope for an edtech superapp. Venture capitalists see startups
providing customers (students and teachers) specific standalone services
(test prep, counselling, professional and vocational training among
others) rather than a combined / bundled product which does it all.
Vernacular Learning
Just over 10% of India’s population can speak English. To build large
businesses that can capture greater value, incorporating vernacular
learning is key. As seen in the OTT, media and entertainment space,
regional language learning will be one of the biggest trends in 2020,
according to the VCs that Inc42 spoke to.
Learning for ‘Yearning’
Learning programmes that cater to non-professional interests, or
those that work with passion projects and hobbies will see an uptick
according to investors. These may or may not lead to employment-related
outcomes, but will be about holistic individual skill development, which
will be critical for the edtech ecosystem as well as startups at large.
Posted in betterU Education Corp | Comments Off on The Major #Edtech Trends In 2020, According To VCs In India SPONSOR: BetterU Education Corp. $BTRU.ca $ARCL $CPLA $BPI $FC.ca
Posted by AGORACOM-JC
at 10:47 AM on Tuesday, January 7th, 2020
SPONSOR:ThreeD Capital Inc. (IDK:CSE)
Led by legendary financier, Sheldon Inwentash, ThreeD is a
Canadian-based venture capital firm that only invests in best of breed
small-cap companies which are both defensible and mass scalable. More
than just lip service, Inwentash has financed many of Canada’s biggest
small-cap exits. Click Here For More Information.
Bitcoin 2020: The Bottom is In and Prices are About to Surge, Several Analysts Claim
Bitcoin corrected by over 50% from the 2019 high of $13,880.
With the retracement in the last six months, some analysts believe that the bottom is in.
The number one crypto is flashing accumulation signals convincing
popular traders that the cryptocurrency has turned bullish in 2020.
Bitcoin may have started 2019 strong but ever since it posted a high
of $13,880 in June, the top cryptocurrency has been correcting. It
dropped to as low as $6,425 in December. At that point, bearish calls
for a revisit to $5,000 levels were strong.
One analyst expecting bitcoin to drop to $5,000. | Source: Twitter
Those who have been waiting to buy below $6,000 have been left out.
The digital gold is now trading above $7,000 and analysts are expecting
bitcoin to leave this price area soon. Many see a base being formed,
which can propel the number one cryptocurrency to greater heights early
this year.
Analysts Claim Bitcoin Has Bottomed Out
After a weak second half of 2019, it appears that the worst is behind
for the most dominant cryptocurrency. A number of widely-followed
analysts on Twitter say that bitcoin is carving a bottom.
For instance, Faisal Sohail believes that the cryptocurrency has
already tapped the bottom when it dropped to $6,475 in December. He
believes that the digital asset will trade between $7,000 and $12,000
before the halving.
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Bitcoin to start climbing before the May 2020 halving. | Source: Twitter
User Bitcoin Macro supports Faisal’s view. In an emphatic tweet,
Bitcoin Macro exclaims that the bottom is already in. He also tells his
followers not to get shaken out.
Majin, Crypto Twitter’s biggest bull, has also turned bullish after
months of uncertainty. The liquidity game theorist believes bitcoin will
take off and leave $7,000 behind.
Accumulation Pattern to Send Bitcoin Above $11,600
BTC has been range trading between $6,700 and $7,600 since November
20, 2019. That’s a $900 range over 45 days. To many analysts, this is a
sign that a new base is being built to prepare bitcoin for the next leg
up, hence, the call for a bottom.
Charles Edwards, head of digital investment firm Capriole, sees a
potential accumulation pattern forming. More importantly, he believes
that the bottom is already in. According to Edwards, his bias would be
confirmed once bitcoin trades above $8,000.
Charles Edwards sees a Wyckoff accumulation pattern developing in bitcoin. | Source: Twitter
Edwards is not alone in seeing a pattern indicating that whales and
other smart money investors are accumulating the largest cryptocurrency.
Trader CryptoWolf also sees an accumulation pattern
developing. His bias will be confirmed once the price goes above
$8,090. A move above that level would also trigger the breakout from a
large falling wedge.
CryptoWolf’s initial target is $9,550 and then $11,600.
Bitcoin needs to take out $8,090 to gain bullish momentum. | Source: Twitter
Traders Starting to Have a Rosy Outlook
With these signals, other traders are expressing their optimism on
the prospects of the top cryptocurrency. The popular trader The Crypto
Dog tweeted that he’s bullish on bitcoin.
It is not everyday that The Crypto Dog posts bullish tweets on bitcoin | Source: Twitter
The widely-followed Crypto Rand shares The Crypto Dog’s upbeat outlook on the dominant cryptocurrency.
The Crypto Rand is also bullish on bitcoin | Source: Twitter
Is it a coincidence that the top analysts are tweeting bullish
statements on bitcoin as the top cryptocurrency prints an accumulation
pattern? Probably not. It’s very likely that these analysts are also
seeing the bottom or base-building signals on the number one coin. If
they’re right, then strap in. Bitcoin’s 2020 price action might start off with fireworks.
Posted by AGORACOM
at 10:22 AM on Tuesday, January 7th, 2020
Sponsor: Loncor is a Canadian gold exploration company focused on two projects in the DRC – the Ngayu and North Kivu projects, both have historic gold production. Exploration at the Ngayu project is currently being undertaken by Loncor’s joint venture partner Barrick Gold. The Ngayu project is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Click Here for More Info
Recent strong price gains are a bullish upside technical ‘breakout’ from recent trading levels, to suggest still more price gains are very likely in the coming weeks and months, or longer
Bullion’s price has benefited from heightened political tensions but also has enjoyed softness in the dollar,
Gold futures on Monday marked their highest settlement since April of 2013, as the killing last week of a top Iranian military commander, Qassem Soleimani, reverberated through financial markets, momentarily upending appetite for assets considered risky and boosting traditional haven assets like gold.
February gold GCG20, +0.23%
on Comex added $16.40, a gain of 1.1%, to settle at $1,568.80 an
ounce, after it briefly touched $1,590.90 in intraday action. The most
active contract saw its highest settlement since April 9, 2013,
according to FactSet data. Gold also rose for a ninth consecutive
session, its longest period of straight gains since an 11-day streak
that ran from December 2018 to January 2019.
March silver SIH20, +0.28%
edged up by 2.8 cents, or 0.2%, to finish at $18.179 an ounce, pulling
back from a high of $18.55, which was the highest intraday level since
late September.
Last week, the most-active gold contract gained 2.3%, its second week
of gains, while silver prices added 1.1%, also landing it higher for
two consecutive weeks.
“History shows that a big spike up in prices amid higher volatility
tends to produce near-term market tops sooner rather than later, after
that initial spike up,†said Jim Wyckoff, senior analyst at Kitco.com.
“That means in the coming days the gold market could put in a
‘near-term’ top that will last for a moderate period of time.â€
“However, for the longer-term investors in gold, it’s important to
note that the recent strong price gains are a bullish upside technical
‘breakout’ from recent trading levels, to suggest still more price gains
are very likely in the coming weeks and months, or longer,†he said in
daily commentary.
On Sunday, the Iraqi parliament passed a nonbinding resolution to
expel American troops in the wake of the U.S. drone strike that killed
Soleimani, leader of the foreign wing of Iran’s Islamic Revolutionary
Guard Corps, on Iraqi soil.
That act has intensified tensions in the Middle East, boosting the
appeal of assets considered safe during global political conflicts.
Trump has threatened harsh sanctions against
Iraq if it expels U.S. troops, and doubled down on earlier comments
threatening to target Iranian cultural sites if Iran strikes back. Iran has said it would no longer honor the 2015 nuclear deal with a group of world powers, which the U.S. backed out of in 2018.
Meanwhile, the benchmark 10-year Treasury yield TMUBMUSD10Y, +0.24% was up at 1.7917%, after tapping a four-week low on Friday after the Iranian military leader’s killing.
Bullion’s price has benefited from heightened political tensions but
also has enjoyed softness in the dollar, which has occurred as investors
shift to Swiss franc USDCHF, +0.3719% and Japanese yen USDJPY, +0.09% amid the potential for political turmoil.
The U.S. ICE Dollar Index DXY, +0.33%,
a measure of the buck against a half-dozen currencies, was down 0.2% at
96.661 and has posted weekly declines in the last two weeks.
A weaker buck can make gold more attractive to buyers using other
currencies, and lower bond yields can also help boost the comparative
appeal of gold against government debt.
“Gold continues its breakout higher as it is now at the highest level
since April 2013,†wrote Peter Boockvar, chief investment officer at
Bleakley Advisory Group, in a Monday research report.
“I remain bullish but caution not to buy it on geopolitical concerns
because as stated they are usually temporary. Buy it instead because the
dollar continues to weaken and real yields continue to fall,†he said.
Among other metals, March copper HGH20, -0.11% added 0.1% to $2.79 a pound. April PLJ20, -0.34% shed 2.4% to $966.20 an ounce, but March palladium PAH20, +0.87%
added 1.7% to $1,989.60 an ounce. Palladium futures notched a record
high, as they’ve done each day so far this year and many times
throughout 2019.
The platinum group markets are “not concerned that recent geopolitical events could derail the global economy and therefore demand for auto catalysts,†analysts at Zaner Metals, wrote in daily note. “Instead, it is apparent that platinum and palladium are being considered as safe haven instruments, with classic physical market fundamentals being pushed to the sidelines.”
Posted by AGORACOM
at 9:35 AM on Tuesday, January 7th, 2020
American Creek has strengthened its position both financially and strategically
Treaty Creek will be advancing in a major way
Eric Sprott made two separate investments of $1,000,000 making Mr. Sprott the largest external investor in Treaty Creek
American Creek Resources Ltd. (TSXV: AMK) (OTC Pink: ACKRF)
(“American Creek”) (“the Corporation”) is pleased to report that 2019
was a pivotal year for the company which is now positioned to take full
advantage of the precious metals bull run that many experts believe we
are only in the early stages of, even though gold hit a 7 year high of
$1,580 this week. Looking back, on the first day of trading in 2019 AMK
closed at $0.03 and on the last day of trading in 2019 AMK closed at
$0.09 representing a significant annual increase. Management envisions
positive developments to continue in 2020 through the geological
advancements of its properties including the potential for a world class
resource on the Treaty Creek JV project located in the “Golden
Triangle” of Northwestern British Columbia.
Darren Blaney, CEO of
American Creek stated: “This past year was a significant turning point
for the company and will be the catalyst for more exciting developments
in 2020. The company has strengthened its position both financially and
strategically and is poised to benefit from not only a strengthening
gold and silver market but also from the investment community becoming
more aware of the company’s projects and potential. The Treaty Creek
project will be advancing in a major way and several of our other
projects including the Dunwell and Gold Hill will also be the focus of
attention this year. We very much look forward to 2020 and wish all of
our shareholders the very best this upcoming year!”
Image of the Goldstorm Zone found along the base of this hill at Treaty Creek.
The
company raised over $3.3 million in 2019 through common and
flow-through shares along with the exercise of warrants. Through these
events the company was able to strengthen existing alliances and create a
number of new highly strategic relationships bringing strength,
credibility and future increased exposure to American Creek.
Of
note, Canadian billionaire Eric Sprott made two separate investments of
$1,000,000 into American Creek as well as an additional $8,400,000
investment in our JV partner Tudor Gold for the development of the
Treaty Creek property. This makes Mr. Sprott the largest external
investor in Treaty Creek. He recently stated that he is “very excited about the opportunity there as the project has a great shot at having 20 million ounces.”
Geological Position
TREATY CREEK
The
2019 drilling at Treaty Creek was very successful and produced some of
the most significant gold intercepts in the exploration industry. The
focus has been on the gold enriched Goldstorm Zone which is on trend
with, and part of, the same geological system as Seabridge Gold’s
neighboring KSM deposits. With approximately one billion tonnes of gold
enriched rock identified (potential for a resource calculation in
2020), the Goldstorm has potential to become a world class gold deposit.
The 2019 drilling was designed to define a gold deposit with the
potential of being open pit mined. The upcoming 2020 drilling is
designed to significantly expand the deposit as the system is open to
the north, the east and at depth.
The Treaty Creek Project is a joint venture with Tudor Gold owning 3/5th and acting as project operator. American Creek and Teuton Resources each have a 1/5th
interest in the project. American Creek and Teuton are both fully
carried until such time as a Production Notice is issued, at which time
they are required to contribute their respective 20% share of
development costs. Until such time, Tudor is required to fund all
exploration and development costs while both American Creek and Teuton
have “free rides”.
DUNWELL MINE
A maiden drill program was
initiated in 2019 on the 100% owned Dunwell Mine project located in the
heart of the Golden Triangle a few kilometers outside of Stewart, BC.
This past producing high grade mine (gold, silver, lead, zinc) holds
tremendous potential and may have the best logistics found in the Golden
Triangle. Assays from the program are currently pending.
GOLD HILL AND OTHER PROJECTS
The
Gold Hill property is believed to contain the principle source lode for
Canada’s fourth largest placer deposit located downstream (Wild Horse
River Gold Rush) which produced over 48 tonnes gold (and is still
producing). Work is planned for 2020 which will advance this highly
prospective project.
American Creek also holds several other high
potential projects in other prospective areas of BC such as the
Austruck-Bonanza, Ample Goldmax, Silver Side, and Glitter King.
Marketing
American
Creek will be going to great lengths in 2020 to increase the
Corporation’s exposure and recognition. Near future events including
attending many conferences including the Vancouver Resource Investment
Conference (Vancouver), AME Roundup (Vancouver), Red Cloud (Toronto),
Raise Capital (Toronto), and the Prospectors and Developers Association
of Canada (PDAC) convention (Toronto).
About American Creek
American
Creek is a Canadian mineral exploration company with a strong portfolio
of gold and silver properties in British Columbia. Three of those
properties are located in the prolific “Golden Triangle”; the Treaty
Creek and Electrum joint venture projects with Tudor Gold/Walter Storm
as well as the 100% owned past producing Dunwell Mine.
The
Corporation also holds the Gold Hill, Austruck-Bonanza, Ample Goldmax,
Silver Side, and Glitter King properties located in other prospective
areas of the province.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Corporation is available on its website at www.americancreek.com
Posted by AGORACOM
at 7:52 PM on Monday, January 6th, 2020
Definitive distribution agreement to partner on the sale of
Vertical’s wollastonite from its world-class St-Onge Deposit in place.
Supplying the fast growing cannabis and hemp industries.
Vertical’s high quality Wollastonite has been shown to be beneficial to cannabis plants in a variety of ways
In every case the most optimal results occurred with an admixture rate of 10% to 15% wollastonite to the growth medium.
The
high-grade St-Onge Wollastonite deposit has pit-constrained mineral
resources of: 7,155,000 tonnes Measured@ 36.20% Wollastonite &
6,926,000 tonnes Indicated@ 37.04%
B.C. Buds Testing Confirmed Wollastonite is critical to marijuana growers
Engaged
AGRINOVA over the past year to conduct research and testing of
Vertical’s St-Onge wollastonite on a range of important agricultural end
uses.
WOLLASTONITE
St-Onge-Wollastonite Deposit located approximately 90 kilometres
Northwest of the city of Saguenay, in St-Onge township, in the
Saguenay-Lac-St-Jean region of Quebec, Canada.
Research and testing in the Phase 1 program for use in cannabis growth was managed and monitored by AGRINOVA, a highly-regarded Center for Research and Innovation in Agriculture in Quebec
Posted by AGORACOM-JC
at 4:03 PM on Monday, January 6th, 2020
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces Inferred. Learn More.
Palladium – The Prospects For A Repeat Performance
A fantastic year in 2019.
A rally for the ages since 2016.
A new decade poses threats to the rally.
Of the four precious metals that trade on the NYMEX and COMEX
divisions of the Chicago Mercantile Exchange, palladium is the least
liquid. As of December 27, the total number of open long and short
positions in the gold futures market stood at 765,653 contracts, a
record high representing 76.65 million ounces of the yellow metal.
Silver’s open interest was at 225,753 contracts that contain a total of
over 1.128 billion ounces of silver. A gold future represents 100 ounces
of the metal, while a silver contract has 5,000 ounces.
In platinum, 98,042 contracts hold over 4.9 million ounces of
platinum metal, as each contract is for 50 ounces. A palladium contract
is for 100 ounces of the platinum group metal. As of December 27, 23,735
contracts represented 2,373,500 ounces. Markets with less liquidity
when it comes to volume and open interest tend to be more volatile than
those with higher degrees of liquidity. Palladium has lived up to that
tendency since early 2016 as the price has been explosive on the upside.
The Aberdeen Standard Physical Palladium Shares ETF product (PALL)
replicates the price action in the palladium market. At the same time,
the Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR) holds palladium as well as gold, silver, and platinum bullion.
A fantastic year in 2019
Palladium was, by far, the best-performing precious metal that trades
on the NYMEX or COMEX exchanges in 2019. Palladium’s price action was
impressive considering that as of December 27, gold, silver, and even
platinum have posted double-digit percentage gains compared to their
closing prices as of December 31, 2018.
Source: CQG
As the weekly chart highlights, palladium moved from $1197.50 on the
final day of 2018 to $1875.40 as of December 30, a gain of 56.6%.
Palladium climbed to its most recent continuous contract high of $1963
per ounce in December while the March futures contract peaked at
$1974.60.
Both price momentum and relative strength indicators were in
overbought territory on December 30, but the metrics came down from
recent highs given the correction on Friday, December 20. On the weekly
charts, palladium put in a bearish reversal during the week of December
16. On a year-on-year basis, the total number of open long and short
positions in the NYMEX palladium futures market edged lower in 2019,
falling from 26,773 to 23,735 contracts from the end of 2018. Meanwhile,
weekly historical volatility at 23.12% was just below the midpoint of
the year for the metric.
2019 was such a good year for palladium that it was the
best-performing commodity that trades on US exchanges of all during the
period.
A rally for the ages since 2016
The bull market in palladium kept going in 2019, but it dates back four years to the beginning of 2016.
Source: CQG
The monthly chart illustrates what has been a parabolic trend in the
precious metal since it found a bottom at $451.50 in January 2016. At
$1875.40, the price was over four times higher since the 2016 bottom.
Over four years, every price correction has been a buying opportunity in
the precious and industrial metal. The most recent decline from $1963
to $1808.80 during the week of December 16 was looking like another
opportunity to purchase palladium as the price recovered quickly to
around the midpoint as of December 30.
A new decade poses threats to the rally
Palladium has been nothing short of a bullish beast since early 2016.
The metal that cleanses toxins from the air in gasoline-powered
automobile catalytic converters has experienced significant demand
growth. With tighter pollution regulations around the world, and
specifically in China, the requirements for the metal continue to rise.
The vast majority of palladium output each year comes from South
Africa and Russia. According to Johnson Matthey, 2019 was the eighth
consecutive year of a deficit between supply and demand in the palladium
market, which continues to fuel price gains.
Source: Johnson Matthey
The chart shows that in May 2019, Johnson Matthey projected an
809,000-ounce deficit. The supply shortage was likely even higher as the
price of the metal rose from a low of $1256.50 in early May to over
$1875 per ounce at the end of 2019. The deficit remains significant as
the total annual global output of the metal is around seven million
ounces or 218 metric tons, and gross demand was 11.154 million ounces.
While recycled metal provided additional supplies of 3.349 million
ounces, it was not nearly enough to meet the growing demand.
While fundamentals could be telling us that the $2000 per ounce level
will give way in 2020, platinum is a denser metal with higher
resistance to heat than palladium.
Source: Johnson Matthey
The chart shows that Johnson Matthey projected that platinum would
also move into a deficit in 2019 after a surplus weighed on the price of
the precious metal in 2017 and 2018. Platinum rose from under $790 in
May to the $958 per ounce level on December 30.
Meanwhile, at an over $900 per ounce discount to palladium,
industrial consumers could begin to substitute platinum for palladium in
2020 as the deficit looks set to continue. Any improvement in global
economic conditions would likely increase demand for both platinum and
palladium in 2020.
The downside risk in the palladium market has increased dramatically,
given the four-fold price increase since January 2016. The bearish
price action and correction on December 20 could be a sign of things to
come as volatility is likely to continue to rise with the price of the
metal in 2020. Sudden price spikes to the downside could become the
norm, and if the deficit expands, price vacuums to the upside could
follow. Trading and investing in highly volatile commodities can be like
riding a psychotic horse through a burning barn. The parabolic price
action in the palladium market looks set to continue into the new
decade. However, the path to higher prices could be a wild ride.
PALL is the palladium ETF product
The most direct route for a risk position or investment in palladium
is via the physical market for bars and coins. The deficit and limited
supplies can make premiums to the market price very expensive for these
products. The NYMEX palladium futures have a delivery mechanism, which
guarantees smooth convergence between physical and futures prices during
delivery periods.
The Aberdeen Standard Physical Palladium Shares ETF product provides
an alternative to physical or futures. The most recent holdings of PALL
include:
Source: Yahoo Finance
PALL has net assets of $280.49 million, trades an average of 31,912
shares each day, and charges holders a 0.60% expense ratio. As of
December 30, the price of palladium was 56.6% higher in 2019.
Source: Barchart
The chart shows that PALL moved from $119.05 on December 31, 2018, to
$179.82 on December 30, 2019, an increase of 51% as it marginally
underperformed the price action in the continuous palladium futures
contract.
GLTR has some exposure to palladium, but is diversified
For those looking for a more diversified approach to precious metals
in 2020, the Aberdeen Standard Physical Precious Metals Basket Shares
ETF holds physical palladium as well as gold, silver, and platinum. The
most recent top holdings of GLTR include:
Source: Yahoo Finance
GLTR has net assets of $463.08 million, trades an average of 24,328 shares each day, and charges holders a 0.60% expense ratio.
Source: Barchart
GLTR closed at $63.16 at the end of 2018. At $76.13 per share on
December 30, the ETF product was a bit over 20.54% higher on the year.
Palladium looks like higher prices could be on the horizon in 2020 as
the metal approaches the $2000 per ounce level. However, it could be a
very bumpy ride as parabolic markets can suffer brutal setbacks. A 50%
rise in 2020 would put palladium over $2800 per ounce. If the price of
the metal is heading there, gold, silver, and platinum are likely to
experience significant gains.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I
wrote this article myself, and it expresses my own opinions. I am not
receiving compensation for it (other than from Seeking Alpha). I have no
business relationship with any company whose stock is mentioned in this
article.
Additional disclosure: The author always has
positions in commodities markets in futures, options, ETF/ETN products,
and commodity equities. These long and short positions tend to change on
an intraday basis.
Posted by AGORACOM-JC
at 3:53 PM on Monday, January 6th, 2020
SPONSOR: Tartisan Nickel (TN:CSE)
Kenbridge Property has a measured and indicated resource of 7.14
million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has
interests in Peru, including a 20 percent equity stake in Eloro
Resources and 2 percent NSR in their La Victoria property. Click her for more information
Demand for nickel in PH to spike due to growing demand for electric vehicles
The nickel industry in the Philippines can expect a brighter prospect for 2020 as the global demand is expected to increase for the manufacturing of electric vehicles (EVs).
Cha Olea, Philippine Nickel Association (PNIA) executive director,
said in an interview on Friday that the association has seen an
increasing trend for electric vehicles worldwide, including the
Philippines, leading to a possible industry boom as a result of a shift
from fossil-run vehicles to more environment friendly electricity-run
vehicles to curb carbon emission.
“The primary component of EV battery is nickel because of the
batteries,†she said. Aside from nickel, Olea said the batteries also
need cobalt and magnesium, but 50 percent of the batteries for EVs are
made of nickel.
The executive added that manufacturing plants’ demand for stainless steel, which is also derived from nickel, would increase.
Members of the European Union targets to totally eradicate carbon
emission by 2030, while the United States has been slowly replacing
fossil-run vehicles with EVs, by offering incentives to owners of
electric vehicles.
“Nickel has a very good prospect in the future, especially that
Europe’s direction by 2030 is zero carbon emission. They are shifting to
electric vehicles,†Olea said.
She said the Philippines is one of the biggest producers of nickel in
the world, producing an estimated volume of 30 million metric tons last
year. Of which, around 90% had been exported to China while the
remaining 10% to Japan, Australia, and EU.
“Globally, they are looking for Philippines. Of course, we have to position ourselves strategically,†she said.
She noted that in the Philippines, some public utility vehicles had been replaced with e-tricycles and e-jeepneys.
Olea said at least 70% of the nickel ore extracted from the
Philippines would be used for stainless steel, 3% for other components,
6% for batteries of EVs, 2% for castings, 6% for plating, 9% non-ferrous
metals, and 4% for alloy steel.
She said the new opportunities in the global market would benefit the
domestic nickel industry. According to her, the mining industry in the
Philippines employs some 250,000 workers. (Antonio L. Colina IV /
MindaNews)
Tags: CSE, nickel, nickel demand, stocks, tsx, tsx-v Posted in All Recent Posts | Comments Off on Tartisan #Nickel $TN.ca – Demand for nickel to spike due to growing demand for electric vehicles #EV $ROX.ca $FF.ca $EDG.ca $AGL.ca $ANZ.ca
Posted by AGORACOM
at 3:28 PM on Monday, January 6th, 2020
American Creek owns a 20% Carried Interest to Production at the Treaty Creek Project in the Golden Triangle. 2019’s first hole averaged of 0.683 g/t Au over 780m in a vertical intercept. The Treaty Creek property is located in the same hydrothermal system as the Pretivm and Seabridge’s KSM deposits.
Welcome to 2020, a year in which the President of the United States conducts war via his Twitter account:
Regardless of how you feel about President
Trump or the US/Iran situation, the fact is that things escalated a
great deal over the weekend after a US airstrike eliminated Iranian
General Suleimani on Thursday night in Baghdad.
This
dangerous escalation of posturing between the mightiest military on the
planet and a country of more than 80 million people which also happens
to possess formidable conventional and unconventional military
capabilities could have potentially far reaching financial market
implications.
With Middle East equity indices already
down between 3% and 5% I fully expect S&P futures to open lower
Sunday night. Gold futures and crude oil futures could also rise sharply
in thin Sunday night trading as scared short sellers are forced to
close out losing positions.
My interest is in gold in
particular. Turning to the monthly chart we can see that gold ended
last week right at previous support from 2011-2013:
Gold (Monthly)
There is layer of resistance stretching from
the September 2019 peak at $1565 to the April 2013 high at $1604.30. If
gold gaps higher into the teeth of this resistance it should make for an
interesting week of trading which is likely to be characterized by
higher volatility and higher trading volumes. Gold sentiment is running
hot after a more than $100 rally over the span of five weeks. In
addition, positioning among gold futures traders is also at an extreme
with commercial traders (producers, swap dealers, etc.) in gold futures
holding their largest net notional short position on record (more than
US$50 billion):
Technically speaking, gold is getting a bit
overheated on shorter time frames (daily, hourly, etc.). However, on the
weekly and monthly charts the gold party could be just getting started
after a 6+ year bottoming process that only transitioned into a nascent
uptrend six months ago.
Nobody knows how the US/Iran situation is going to unfold, but one thing is for sure and that is that it’s a scary situation which has the potential to get a lot worse before it gets better. If there was ever a time to own gold it would be now, and perhaps that is why we should take standard sentiment/technical indicators with a grain of salt. Judging by the massive commercial short position in gold futures the yellow metal is in the midst of a massive short squeeze – short squeezes can often reach crazy extremes before experiencing a reversal (only once the most leveraged short players have been forced to cover at the highs). This may be what is about to unfold in gold.
