Archive for Metals – Page 11

17 Dec

COT Metals Charts: Speculator Bets led by Platinum & Palladium

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday December 12th and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.

Weekly Speculator Changes led by Platinum & Palladium

The COT metals markets speculator bets were lower this week as just two out of the six metals markets we cover had higher positioning while the other four markets had lower speculator contracts.

Leading the gains for the metals was Platinum (2,576 contracts) with Palladium (614 contracts) also showing a positive week.

The markets with declines in speculator bets for the week were Gold (-15,311 contracts), Silver (-7,845 contracts), Copper (-2,010 contracts) and Steel (-318 contracts).

Data Snapshot of Commodity Market Traders | Columns Legend
Dec-12-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
Gold469,93922188,23360-212,8084224,57546
Silver134,2812528,45859-47,4963619,03872
Copper176,03423-4,004295,13176-1,12711
Palladium21,30972-10,638610,92097-28225
Platinum74,004627,70933-11,713694,00422

 

Strength Scores led by Steel & Gold

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Steel (98 percent) and Gold (60 percent) lead the metals markets this week. Palladium (6 percent) comes in as the next highest in the weekly strength scores.

On the downside, Palladium (6 percent) comes in at the lowest strength level currently and is in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
Gold (59.9 percent) vs Gold previous week (66.7 percent)
Silver (58.9 percent) vs Silver previous week (70.1 percent)
Copper (28.5 percent) vs Copper previous week (30.3 percent)
Platinum (33.4 percent) vs Platinum previous week (27.4 percent)
Palladium (5.6 percent) vs Palladium previous week (1.6 percent)
Steel (97.6 percent) vs Palladium previous week (98.8 percent)

 

Silver & Copper top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that Silver (12 percent) and Copper (12 percent) lead the past six weeks trends for metals.

Platinum (-7 percent) and Palladium (-3 percent) lead the downside trend scores currently.

Move Statistics:
Gold (10.9 percent) vs Gold previous week (23.8 percent)
Silver (11.8 percent) vs Silver previous week (17.1 percent)
Copper (11.8 percent) vs Copper previous week (16.9 percent)
Platinum (-7.2 percent) vs Platinum previous week (13.0 percent)
Palladium (-2.5 percent) vs Palladium previous week (-0.1 percent)
Steel (8.3 percent) vs Steel previous week (20.9 percent)

Individual Markets:

Gold Comex Futures:

Gold Futures COT ChartThe Gold Comex Futures large speculator standing this week reached a net position of 188,233 contracts in the data reported through Tuesday. This was a weekly lowering of -15,311 contracts from the previous week which had a total of 203,544 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 59.9 percent. The commercials are Bearish with a score of 41.8 percent and the small traders (not shown in chart) are Bearish with a score of 45.9 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Gold Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:58.222.59.9
– Percent of Open Interest Shorts:18.267.84.7
– Net Position:188,233-212,80824,575
– Gross Longs:273,536105,71046,457
– Gross Shorts:85,303318,51821,882
– Long to Short Ratio:3.2 to 10.3 to 12.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):59.941.845.9
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:10.9-11.614.7

 

Silver Comex Futures:

Silver Futures COT ChartThe Silver Comex Futures large speculator standing this week reached a net position of 28,458 contracts in the data reported through Tuesday. This was a weekly fall of -7,845 contracts from the previous week which had a total of 36,303 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 58.9 percent. The commercials are Bearish with a score of 36.4 percent and the small traders (not shown in chart) are Bullish with a score of 72.4 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: New Buy – Long Position.

Silver Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:41.528.222.8
– Percent of Open Interest Shorts:20.363.68.6
– Net Position:28,458-47,49619,038
– Gross Longs:55,68437,85030,602
– Gross Shorts:27,22685,34611,564
– Long to Short Ratio:2.0 to 10.4 to 12.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):58.936.472.4
– Strength Index Reading (3 Year Range):BullishBearishBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:11.8-17.434.2

 

Copper Grade #1 Futures:

Copper Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week reached a net position of -4,004 contracts in the data reported through Tuesday. This was a weekly lowering of -2,010 contracts from the previous week which had a total of -1,994 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 28.5 percent. The commercials are Bullish with a score of 75.9 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 11.4 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: New Buy – Long Position.

Copper Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:37.338.97.7
– Percent of Open Interest Shorts:39.636.08.3
– Net Position:-4,0045,131-1,127
– Gross Longs:65,63068,47613,473
– Gross Shorts:69,63463,34514,600
– Long to Short Ratio:0.9 to 11.1 to 10.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):28.575.911.4
– Strength Index Reading (3 Year Range):BearishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:11.8-11.00.7

 

Platinum Futures:

Platinum Futures COT ChartThe Platinum Futures large speculator standing this week reached a net position of 7,709 contracts in the data reported through Tuesday. This was a weekly gain of 2,576 contracts from the previous week which had a total of 5,133 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 33.4 percent. The commercials are Bullish with a score of 69.3 percent and the small traders (not shown in chart) are Bearish with a score of 21.8 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Platinum Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:49.728.110.3
– Percent of Open Interest Shorts:39.343.94.9
– Net Position:7,709-11,7134,004
– Gross Longs:36,78920,8047,620
– Gross Shorts:29,08032,5173,616
– Long to Short Ratio:1.3 to 10.6 to 12.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):33.469.321.8
– Strength Index Reading (3 Year Range):BearishBullishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-7.25.18.6

 

Palladium Futures:

Palladium Futures COT ChartThe Palladium Futures large speculator standing this week reached a net position of -10,638 contracts in the data reported through Tuesday. This was a weekly gain of 614 contracts from the previous week which had a total of -11,252 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 5.6 percent. The commercials are Bullish-Extreme with a score of 96.6 percent and the small traders (not shown in chart) are Bearish with a score of 24.8 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Palladium Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:24.759.77.8
– Percent of Open Interest Shorts:74.78.49.1
– Net Position:-10,63810,920-282
– Gross Longs:5,27012,7191,653
– Gross Shorts:15,9081,7991,935
– Long to Short Ratio:0.3 to 17.1 to 10.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):5.696.624.8
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-2.54.8-22.4

 

Steel Futures Futures:

Steel Futures COT ChartThe Steel Futures large speculator standing this week reached a net position of -485 contracts in the data reported through Tuesday. This was a weekly lowering of -318 contracts from the previous week which had a total of -167 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 97.6 percent. The commercials are Bearish-Extreme with a score of 1.3 percent and the small traders (not shown in chart) are Bullish-Extreme with a score of 82.9 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Steel Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:23.569.73.0
– Percent of Open Interest Shorts:25.969.60.6
– Net Position:-48523462
– Gross Longs:4,67113,862587
– Gross Shorts:5,15613,839125
– Long to Short Ratio:0.9 to 11.0 to 14.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):97.61.382.9
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:8.3-9.943.0

 

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Financial News Metals
13 Dec

Copper Shortages Are Looming and Four Stocks to Benefit

Source: Ron Struthers  (12/12/23)

Investment in copper mining is very low at a time when it should be at record highs to accommodate electrification of world economies. Ron Struthers of Struthers Resource Stock Report looks into three promising copper exploration plays and a pure producer, Capstone. 

For a long time, copper has been described with a PhD in economics. It is tied so much to all industries that its demand cycles can mirror economic cycles.

As most of the world seeks to reach net-zero targets and transition to cleaner, renewable forms of energy, copper is a big requirement. However, the amount of copper needed to successfully facilitate the energy transition is staggering. Nearly 70% of all copper produced is used in electrical applications, which is why it’s so important to the energy transition.

While the average internal combustion engine vehicle contains approximately 48 pounds of copper, a typical EV contains nearly four times that amount. Solar Technology uses about 5.5 tons copper/MW of electricity and wind about 4 tons/MW onshore and 10 tons/MW offshore.

Jerome Leroy, vice president of the Canadian business unit of cable supplier Nexans, worries that copper mines won’t be able to keep up. This concern partly stems from the fact it takes many years to secure regulatory approvals for new mines. Moreover, ore grades at existing mines have long been in decline. (Production is concentrated in Chile, Peru, and China.) Mr. Leroy points to forecasts suggesting production capacity will grow to 27 million tonnes a year by the end of this decade, whereas demand could rise as high as 35 million tonnes. A shortfall could materialize as soon as next year, he warns.

“I start to see it happening at the power utility level,” he said. “People are requesting more and more cable. The likes of BC Hydro and Hydro-Québec, and others, say that probably they will need at least 5% more cable every year starting from now.”

Blair DeBruyne, the director of operations, inventory, and fleet services at SaskPower, points out that copper is a major ingredient in transformer coils and almost every power line. But he’s worried about all mined materials because order lead times are being pushed out.

Last year, IHS Markit (a market research firm owned by S&P Global) projected that copper demand could double in little more than a decade — from 25 million tonnes today to 50 million by 2035.

“The chronic gap between worldwide copper supply and demand projected to begin in the middle of this decade will have serious consequences across the global economy,” an IHS report warned, “and will affect the timing of net-zero emissions by 2050.”

Demand for copper in energy transition applications is expected to climb about 8.2% over the next decade, outstripping a projected 2.9% increase in copper demand in that period for traditional uses such as construction, infrastructure, machinery, and transportation, said Mohsen Bonakdarpour, executive director of economics & country risk for Market Intelligence.

My take — I am not as bullish as many on the speed to electrification and EVs, but if demand even grows at half of the projections, there will be shortages. You see, the problem is really on the supply side, mainly because of years of underinvestment in mining. The chart below on copper production shows that growth has been flat since 2016.

The global copper industry needs to spend more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030, Erik Heimlich, head of base metals supply at CRU, said in 2022.

The supply gap for the next decade is estimated at six million tonnes per year as the clean energy and electric vehicles sectors ramp up. This means the world would need to build eight projects the size of BHP’s (ASX: BHP) Escondido in Chile, the world’s largest copper mine, over the next eight years.

Such task, Heimlich said, seems questionable.

“Many of the projects currently developed have been in the making for almost three decades, and with exploration activity relatively limited in recent years, supply increases may fade from 2025,” experts at BoA said.

Global development and expansion capital for primary copper mines peaked in 2013 at $26.13 billion, almost halved in subsequent years, and has not recovered since.

Capital spending on copper projects is estimated to have been only $14.42 billion in 2022, based on Mine Economics’ universe of coverage. A further decrease of 18.7% is projected for 2023. This chart is just the top 10 companies.

Mine expansion activities rose in 2021, with some major announcements in Chile, Indonesia, and Mongolia that will add 3 million tonnes (mt) over the next four years. Most miners continue to allocate a major portion of the budget to the expansion of existing mines, while the root share was 34% in 2021.

Over the last decade, there have been 19 major grass root discoveries, but only three in the past five years, adding just 5.6mt to the total production. Latin America (LatAm) remains the top region in terms of total discoveries; however, over the past decade, new supplies have come more from Africa and Asia. In particular, between 2012 and 2021, around 56% of the top 10 discovered deposits were added by the Kamoa-Kakula deposit in the Democratic Republic of the Congo in 2014 and the Onto deposit in Indonesia in 2013.

Catch 22 — The Climate Activists Want to Electrify and Go Green but Don’t Want New Copper Mines — Dah!

The changes in LatAm royalty taxes add to the regulatory uncertainty prevailing in the region. The Chilean government is considering a modified version of a 2021 bill to impose a 1% sales tax for copper companies producing less than 200 kilotonnes per annum (ktpa) and up to 3% for companies with output exceeding 200ktpa.

However, companies producing under 50ktpa are exempted from this tax. Similarly, tax changes and local community protests in Peru have impacted production from major mines in the region. This is likely to impact the new project pipeline over the coming years.

Freshwater usage is another major concern for copper mines, especially in Chile, Peru, and the southwest United States. Peru has been rocked by protests since former President Pedro Castillo was ousted in December 2022 in an impeachment trial. The South American nation accounts for 10% of the global copper supply.

Shares in First Quantum Minerals Ltd. (FM:TSX; FQM:LSE) have dropped a whopping 2/3rds (66%) since opposition to a mining contract on their massive copper mine went viral in Panama.

The mine is about 1/2 their copper production, so the stock might be getting oversold.

Let’s see where it bottoms.

Their contract deal gave the company the right to mine the site for at least the next two decades in exchange for US$375 million a year to the government. It has become a flashpoint for local protesters. That opposition has escalated into broader anti-government protests that officials say are costing Panama US$80 million a day.

The mine faces legal and constitutional challenges from the country’s top court, and citizens may get a chance to vote on the contract extension in a referendum next month. Because of the blockade, Quantum announced on November 23 that they suspended production at the mine.

No Way Supply Will Meet Demand

There is no way that supply will ramp up enough to meet rising demand, even if demand increases are half of what is expected. Bringing new mines on stream is becoming more difficult with regulation and climate activists.

The major mining companies are mostly focused on expanding and improving profits at their existing mines. The two main results are higher copper prices, which will likely go to new highs, and a huge focus on junior copper explorers. Not by investors yet, but the majors who are watching these like hawks will be jumping on discoveries and promising projects.

First, a long-term chart on copper. Prices have not gone crazy, but the 2011 highs were tested in 2021 and 2022. Since then, a wedge pattern has developed. A breakout will occur, and I would bet to the upside.

Next chart, short term on the next page, the recent move up and then back was a test of resistance and support levels.

There are virtually no pure copper producer plays, but perhaps one and the big copper producers also produce other base metals, so they are nowhere near a pure copper investment. One option is the junior copper explorers, and I will highlight three of my favorites before I touch on the best pure producer play.

Midnight Sun Mining Corp. (MMA:TSX.V; MDNGF:OTCQB)

Recent Price: $0.20

Midnight Sun has done a lot of exploration work on their Solwezi mineral exploration licenses in Zambia that are located directly adjacent to the largest copper mine in Africa — Once again, First Quantum Minerals’ Kansanshi copper/gold mine.

Midnight Sun has a copper discovery there and needs further work to prove it.

With Midnight Sun, it is all about location.

The Zambian-Congo copper belt is host to some of the world’s richest mines, with operators that include Barrick, Rio Tinto, Glencore, Ivanhoe Mines, and First Quantum and a lot of them surround MMA.

This graphic shows a better closeup.

MMA has four main targets: Dumbwa, Kazhiba Dome, Mitu Trend, and Crunch Zone.

Dumbwa is a continuous high-grade copper-in-soil anomaly for over 20 km along strike and about 1 km wide with peak values up to 0.728% copper.

Kazhiba Dome has multiple high-grade hits in the 22 zones, with the discovery hole running 11.3 meters and grading 5.71% copper. Other intercepts include 21 meters of 3.26% copper and 6.4 meters of 5.08% copper.

The Mitu Trend shows a similar style of mineralization as the Sentinel Mine with associated cobalt and nickel. Drill hits include 11.6 meters of 3.44% copper and 11.5 meters of 1.41% copper.

The Crunch Zone has a newly identified structural target with a largely untested VTEM conductive anomaly. It occurs on the same stratigraphy as First Quanum’s Kanasanshi Mine.

MMA has a large 506 sq km property and already has two high grade discoveries. They are in the right place and have caught the attention of the major miners. I expect we will see some type of JV deal on one or more of their target areas and/or some more great results in the next drill program.

They have 118 million shares out, and at $0.20, the market cap is just around CA$24 million, which is quite cheap for their location and discovery. The company is run by CEO Al Fabbro, whom I have known for many years and who made good returns on his last deal, RoxGold.

The stock bottomed in 2022 with the correction in copper prices. Since then, it recovered but has been stuck in a range between $0.20 and $0.32. It is a good buy here at the bottom of this range.

Zonte Metals Inc. (ZON:TSX.V)

Recent Price: $0.08

Zonte is in a great location as well, miner-friendly NFLD Canada. Year-round road access, high voltage power at the one end of the property, and near tidewater at the other end.

There has been a gold rush there with New Found Gold Corp.’s (NFG:TSX.V; NFGC:NYSE.American) high-grade discovery at their Queensway project.

There has not been much copper exploration, although NFLD was the world’s 4th largest copper producer back in the WW2 era. However, I think this will soon change as Zonte has discovered a grassroots new copper district, an Iron Oxide Copper Gold (IOCG) system.

These can produce huge mines, and Zonte has done a lot of tedious work over the past several years and has discovered 12 priority targets so far. I expect multiple mines could be discovered.

Zonte did some drilling, testing magnetic and gravity highs, and from this, learned that potential deposits are likely adjacent to these anomaly highs. Their soil sampling and rock sampling in the last two years appear to confirm this.

They did make one high-grade hit at their Dunns Mountain target, but it was narrow. It was 0.43 meters with 14% copper, 15 g/t gold and 352 g/t silver. With their new exploration approach, they are currently drilling the K6 target.

In the graphic, you can see that the copper soil anomaly sits adjacent to the gravity and magnetic highs. It is also proven with copper in rocks. Zonte has drilled four holes there so far, and I expect results in the New Year.

The stock just bottomed at historic lows in October but needs to break the downtrend channel. There is only mild resistance, around $0.08, with stronger resistance, around $0.13.

I did an 18-minute interview with CEO Terry Christopher, and we went over, in detail, the exploration of the K6 target. It is well worth watching at this YouTube link.

Zonte also has a gold project in the Yukon that is adjacent to Victoria Gold’s mine. Victoria Gold has been advancing a second discovery there and has been conducting sampling and drilling right up to Zonte’s property boundary. I have little doubt that it extends onto Zonte’s property. Zonte also had a drill discovery on this property in 2015 that is on trend. Zonte has about 70 M shares outstanding and, at current prices, has a market cap of just over $5 million.

Element 29 Resources Inc. (ECU:TSX.V; EMTRF:OTC)

Recent Price: $0.15

Element 29 is advancing two new, high-quality copper projects in Peru — Flor de Cobre & Elida — each with excellent potential for resource growth and development.

They have 100% ownership in these projects and are at a favorable lower elevation < 2,700 meters and with good infrastructure.

ECU’s Elida project is in an advanced stage, but things have been quiet with the company. However, they just closed a $2.8 million financing in the middle of September, so I expect they will soon announce a new exploration and drill program. ECU has 106 M shares outstanding, so at $0.16, it has a market cap of about $16 million.

Explorers Ripe for Deals and Buyouts

All three of these junior explorers are ripe for either a JV deal or a buyout from a major. Of the three juniors, Zonte is the cheapest with a market cap of $5 million compared to the $16M (ECU) and $24M (MMA ) of the other two and has an active drill program, so additional catalysts to move the stock.

I suggest owning all three stocks with a focus first on Zonte if you don’t own any because they will have drill results in early 2024. For a copper producer, I think the best play is:

Capstone Copper Mining Corp. (CS:TSX)

Recent Price: $6.05

52-week trading range: $4.40 to $7.25

Shares outstanding: 695 million

Capstone is a pure copper producer with four producing mines: one in Arizona, one in Mexico, and two in Chile. And 97% of its revenues are derived from copper sales.

An expansion of their Mantoverde Mine in Chile is going to significantly increase copper production in 2024 and lower costs. Here are the operating results of the four mines in Q3 2023.

All operations performed a bit lower in Q3 and are temporary in nature.

Pinto Valley Mine, Arizona U.S.A.

Copper production of 13,600 tonnes in Q3 2023 was 3% lower than in Q3 2022, mainly on lower mill throughput during the quarter (Q3 2023 — 47,426 tonnes per day (tpd) versus Q3 2022 — 48,143 tpd), resulting from unplanned eight-day downtime related to the secondary crusher jack shaft replacement and counter shaft repairs. The grade was consistent quarter-over-quarter (Q3 2023 — 0.34% versus Q3 2022 — 0.34%). Recoveries were lower compared with the same period last year (Q3 2023 — 87.4% versus Q3 2022 — 89.1%).

Mantos Blancos Mine, Chile

Q3 2023 production was 12,200 tonnes, composed of 9,100 tonnes from sulfide operations and 3,000 tonnes of cathode from oxide operations, 11% lower than the 13,600 tonnes produced in Q3 2022. The lower production was driven primarily by lower dump throughput, grade, and recoveries impacting cathode production. The mill throughput of 14,176 tpd in Q3 2023 was impacted by mill downtime caused by planned repair and maintenance of the concentrator plant that lasted six days (liners and major components change). Recoveries were lower in Q3 2023 compared with the same period last year (76.3% in Q3 2023 versus 79.3 % in Q3 2022), mainly driven by ore characteristics in the upper areas of the mine. A plan to address the plant stability during the second half of 2023 is underway which includes improved maintenance and optimization of the concentrator and the tailings system.

Cozamin Mine, Mexico

Q3 2023 copper production of 5,900 tonnes was lower than the same period the prior year, mainly due to lower mill throughput (3,567 tpd in Q3 2023 versus 3,829 tpd in Q3 2022). Recoveries and grades were consistent quarter-over-quarter.

Mantoverde Mine, Chile

Q3 2023 copper production of 8,600 tonnes was 26 % lower compared with 11,600 tonnes in Q3 2022. Heap operations grade was lower as a result of mine sequence (0.32 % in Q3 2023 versus 0.45 % in Q3 2022), and recoveries were lower (66.5 % in Q3 2023 versus 86.7 % in Q3 2022) due to lower solubility ratio of the processed mineral and lower grades, all of which was partially offset by higher heap throughput (2.7 million tonnes in Q3 2023 versus 2.5 million tonnes in Q3 2022). Throughput from dump operations was lower compared with the same period last year due to a temporary sulphuric acid supply shortfall in September, and grades were consistent with the same period last year.

Mantoverde development project’s overall progress is at 93 % and remains on schedule. Construction is progressing well in all key areas of the project. Total project spending since inception was $763 million at the end of September 2023, compared with $706 million in June 2023.

The project is on target for construction completion by year-end 2023. As the project nears completion, the updated total project cost is estimated at $870 million, which is a 5% increase and includes approximately $20 million in project improvements.

Financial

Total available liquidity of $424.5 million as of September 30, 2023, composed of $129.5 million of cash and short-term investments, and $295 million of undrawn amounts on the corporate revolving credit facility. Capstone is in strong financial shape to get the Mantoverde on stream, and from that, revenues and cash flows will see significant increases.

Conclusion

Q3 2023 copper production totaled 40,300 tonnes at C1 cash costs of $2.88 per payable pound of copper produced. Copper production in the third quarter was impacted by an unplanned eight days of cumulative downtime at Pinto Valley related to the secondary crusher jack shaft replacement and counter shaft repairs, plus planned maintenance downtime at Mantos Blancos. Lower production levels and maintenance expenses were the key drivers related to higher consolidated cash costs in the quarter.

The company reaffirms its H2 copper production guidance of 83,000 tonnes to 93,000 t. C1 cash costs are trending toward the upper end of the H2 guidance range of $2.55/lb to $2.75/lb due to additional unplanned maintenance expenditures noted above.

John MacKenzie, CEO of Capstone, commented in the Q3 results: “I am encouraged by the progress we made during the third quarter in executing on our plan to improve operational reliability and expand margins across our portfolio. As construction at our flagship Mantoverde development project (MVDP) approaches completion by year-end, we look forward to a transformational year in 2024. Our excitement follows many years of dedicated effort by our mine build team in Chile. MVDP will drive a significant reduction in our consolidated unit costs and provide a pathway to record operating cash flow generation for Capstone Copper.”

This graphic is from their presentation and highlights the strong growth in 2024 with the MVDP ramp-up. Future growth is expected with their Santo Domingo project in Chile. It is an IOCG system with a targeted 200,000 tonnes per year of low-cost copper with cobalt. An updated feasibility is planned for 2024.

With Capstone, you get the leverage to copper prices and exposure to strong production growth. The stock dipped with the overall market weakness in September/October and has recovered.

The drop in the stock in 2022 was when copper prices had some substantial weakness, see copper charts above.

The stock has strong resistance above $7.00 and will probably take higher copper prices or when their increased production and revenue come on stream in 2024.

The stock has seen a very good rally, and I would look for some weakness or pull back to around $5.50 to buy.

 

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [Midnight Sun Mining Corp.].
  2. [Ron Struthers]: I, or members of my immediate household or family, own securities of: [Zonte Metals and Midnight Sun]. I determined which companies would be included in this article based on my research and understanding of the sector.
  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. 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.

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Metals Opinions
10 Dec

COT Metals Charts: Speculator Bets led higher by Gold & Silver

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday December 5th and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.

Weekly Speculator Changes led by Gold & Silver

The COT metals markets speculator bets were higher this week as four out of the six metals markets we cover had higher positioning while the other two markets had lower speculator contracts.

Leading the gains for the metals was Gold (3,460 contracts) with Silver (2,023 contracts), Copper (1,878 contracts) and Steel (66 contracts) also recording positive weeks.

The markets with declines in speculator bets for the week were Platinum (-4,901 contracts) with Palladium (-1,081 contracts) also seeing lower bets on the week.

Data Snapshot of Commodity Market Traders | Columns Legend
Dec-05-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
Gold487,46930203,54467-226,9453623,40143
Silver139,7533236,30370-52,0143115,71154
Copper176,37324-1,994302,13973-14518
Palladium21,27172-11,252211,27799-2540
Platinum75,508675,13327-9,183744,05022

 

Strength Scores led by Steel & Silver

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Steel (99 percent) and Silver (70 percent) lead the metals markets this week.  comes in as the next highest in the weekly strength scores.

On the downside, Palladium (2 percent) comes in at the lowest strength level currently and is in Extreme-Bearish territory (below 20 percent). The next lowest strength scores were Platinum (27 percent) and Copper (30 percent).

Strength Statistics:
Gold (66.7 percent) vs Gold previous week (65.1 percent)
Silver (70.1 percent) vs Silver previous week (67.2 percent)
Copper (30.3 percent) vs Copper previous week (28.6 percent)
Platinum (27.4 percent) vs Platinum previous week (38.7 percent)
Palladium (1.6 percent) vs Palladium previous week (8.7 percent)
Steel (98.8 percent) vs Palladium previous week (98.6 percent)

Gold & Steel top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that Gold (24 percent) and Steel (21 percent) lead the past six weeks trends for metals.

Palladium (-0.1 percent) leads the downside trend scores currently with Palladium (0 percent) as the next market with lower trend scores.

Move Statistics:
Gold (23.8 percent) vs Gold previous week (38.4 percent)
Silver (17.1 percent) vs Silver previous week (20.7 percent)
Copper (16.9 percent) vs Copper previous week (19.8 percent)
Platinum (13.0 percent) vs Platinum previous week (22.4 percent)
Palladium (-0.1 percent) vs Palladium previous week (8.7 percent)
Steel (20.9 percent) vs Steel previous week (21.8 percent)

Individual Markets:

Gold Comex Futures:

Gold Futures COT ChartThe Gold Comex Futures large speculator standing this week came in at a net position of 203,544 contracts in the data reported through Tuesday. This was a weekly gain of 3,460 contracts from the previous week which had a total of 200,084 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 66.7 percent. The commercials are Bearish with a score of 36.3 percent and the small traders (not shown in chart) are Bearish with a score of 42.6 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Gold Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:59.321.29.7
– Percent of Open Interest Shorts:17.567.74.9
– Net Position:203,544-226,94523,401
– Gross Longs:288,840103,19347,483
– Gross Shorts:85,296330,13824,082
– Long to Short Ratio:3.4 to 10.3 to 12.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):66.736.342.6
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:23.8-23.619.2

 

Silver Comex Futures:

Silver Futures COT ChartThe Silver Comex Futures large speculator standing this week came in at a net position of 36,303 contracts in the data reported through Tuesday. This was a weekly lift of 2,023 contracts from the previous week which had a total of 34,280 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 70.1 percent. The commercials are Bearish with a score of 30.9 percent and the small traders (not shown in chart) are Bullish with a score of 53.8 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: New Buy – Long Position.

Silver Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:45.329.318.9
– Percent of Open Interest Shorts:19.366.57.6
– Net Position:36,303-52,01415,711
– Gross Longs:63,24140,97426,387
– Gross Shorts:26,93892,98810,676
– Long to Short Ratio:2.3 to 10.4 to 12.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):70.130.953.8
– Strength Index Reading (3 Year Range):BullishBearishBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:17.1-21.130.6

 

Copper Grade #1 Futures:

Copper Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week came in at a net position of -1,994 contracts in the data reported through Tuesday. This was a weekly rise of 1,878 contracts from the previous week which had a total of -3,872 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 30.3 percent. The commercials are Bullish with a score of 73.4 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.6 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Copper Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:35.639.37.6
– Percent of Open Interest Shorts:36.738.17.7
– Net Position:-1,9942,139-145
– Gross Longs:62,78069,40213,390
– Gross Shorts:64,77467,26313,535
– Long to Short Ratio:1.0 to 11.0 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):30.373.417.6
– Strength Index Reading (3 Year Range):BearishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:16.9-15.93.1

 

Platinum Futures:

Platinum Futures COT ChartThe Platinum Futures large speculator standing this week came in at a net position of 5,133 contracts in the data reported through Tuesday. This was a weekly lowering of -4,901 contracts from the previous week which had a total of 10,034 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 27.4 percent. The commercials are Bullish with a score of 74.5 percent and the small traders (not shown in chart) are Bearish with a score of 22.4 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Platinum Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:49.529.710.3
– Percent of Open Interest Shorts:42.741.94.9
– Net Position:5,133-9,1834,050
– Gross Longs:37,39522,4487,743
– Gross Shorts:32,26231,6313,693
– Long to Short Ratio:1.2 to 10.7 to 12.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):27.474.522.4
– Strength Index Reading (3 Year Range):BearishBullishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:13.0-9.0-16.8

 

Palladium Futures:

Palladium Futures COT ChartThe Palladium Futures large speculator standing this week came in at a net position of -11,252 contracts in the data reported through Tuesday. This was a weekly decrease of -1,081 contracts from the previous week which had a total of -10,171 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 1.6 percent. The commercials are Bullish-Extreme with a score of 98.8 percent and the small traders (not shown in chart) are Bearish with a score of 40.2 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Palladium Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:23.160.28.7
– Percent of Open Interest Shorts:76.07.28.9
– Net Position:-11,25211,277-25
– Gross Longs:4,92012,8141,859
– Gross Shorts:16,1721,5371,884
– Long to Short Ratio:0.3 to 18.3 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):1.698.840.2
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-0.11.2-10.8

 

Steel Futures Futures:

Steel Futures COT ChartThe Steel Futures large speculator standing this week came in at a net position of -167 contracts in the data reported through Tuesday. This was a weekly gain of 66 contracts from the previous week which had a total of -233 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 98.8 percent. The commercials are Bearish-Extreme with a score of 0.2 percent and the small traders (not shown in chart) are Bullish with a score of 77.0 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Steel Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:25.568.22.9
– Percent of Open Interest Shorts:26.469.50.7
– Net Position:-167-241408
– Gross Longs:4,70712,586543
– Gross Shorts:4,87412,827135
– Long to Short Ratio:1.0 to 11.0 to 14.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):98.80.277.0
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:20.9-22.955.8

 

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Financial News Metals
04 Dec

Trade of the Week: Gold hits all-time high before rocket ship falters

By ForexTime 

  • Gold hits all-time high above $2130
  • Precious metal boosted by Fed cut bets
  • Key US data including NFP could trigger volatility
  • Prices firmly bullish but RSI signals overbought
  • Key levels of interest at $2100, $2070 and $2035

Gold kicked off Monday shooting for the stars, soaring more than 3% to create a fresh all-time high above $2130 before surrendering most of those gains.

Everyone wanted a piece of the precious metal last Friday after dovish comments from Jerome Powell hit the dollar along with Treasury yields. Investor appetite for gold seems to have intensified over the weekend with bulls stepping into higher gear as rate-cut bets intensified.

Despite the sharp pullback in prices, gold prices remain fundamentally bullish due to geopolitical risk and growing expectations for a US rate cut in 2024. Indeed, the precious metal is up roughly 15% since the October low and still trading a distance away from the psychological $2000 level.

Taking a quick look at the technicals, prices remain on an uptrend but this could be threatened if the current daily candle stick forms a shooting star pattern.

Note: A shooting star is a bearish candlestick that signals a potential reversal. It can be identified with a long wick and small-bodied candlestick.

This could be another wild week for gold as the focus falls on key US economic reports that may influence expectations around what the Fed will do beyond 2023. 

Here are some events that may rock gold over the next few days:

  1. US data + November jobs report

It is a data-heavy week for the US economy with all eyes will be on the latest non-farm payrolls report on Friday. 

As far as markets are concerned, the Federal Reserve’s hiking campaign is over with the next move being a rate cut in 2024. Dovish comments by Powell last Friday simply reinforced these expectations with traders now pricing in a 67% probability of a 25-basis point cut by March 2024.

The real market moving this week will most likely be November’s jobs report. Markets expect the US economy to have created 200,000 jobs last month while unemployment is expected to remain unchanged at 3.9%.

  • Should overall economic data disappoint along with the NFP report, this could support gold prices as rate-cut bets grow.
  • Strong-than-expected economic data including the jobs report may weaken gold, especially if the dollar stabilizes as traders push back rate-cut bets.

  1. Geopolitical tensions 

The end of the truce deal between Israel and Hamas could fuel risk aversion and investors’ concerns. 

A truce deal between both sides that began on November 24th ended last Friday after negotiations reached a deadlock. The temporary truce initially sparked hopes for a long-term peace deal that could reduce geopolitical risks. However, with the conflict between Israel and Hamas resuming this could send investors rushing towards safe-haven destinations like gold.

  • More signs of escalating tensions in the Middle East may sap risk sentiment, keeping gold prices buoyed as a result.
  • Any signs of easing tensions could boost market sentiment, dragging gold prices lower.

  1. Technical forces

After gaining aggressively during early trading on Monday, prices came crashing down, giving back most of the gains.

Gold remains bullish on the daily charts as there have been consistently higher highs and higher lows while prices are trading above the 50, 100, and 200-day SMA. However, the Relative Strength Index (RSI) is above 70, indicating that prices are heavily overbought. In addition, the current daily candle stick could be a threat to bulls if it closes as a shooting star pattern.

  • Prices could rebound back towards $2070 and $2100 regions if $2035 proves to be a reliable support.
  • A decline back below $2035 may trigger a selloff towards $2010 and $2000, respectively. 

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Metals
02 Dec

COT Metals Charts: Speculator Bets led higher by Gold, Silver & Platinum

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday November 28th and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.

Weekly Speculator Changes led higher by Gold, Silver & Platinum

The COT metals markets speculator bets were higher this week as five out of the six metals markets we cover had higher positioning while the other one markets had lower speculator contracts.

Leading the gains for the metals was Gold (28,379 contracts) with Silver (6,828 contracts), Platinum (2,898 contracts), Steel (682 contracts) and Palladium (116 contracts) also recording positive weeks.

The only market with a decline in speculator bets this week was Copper with a dip of just -329 contracts.

Data Snapshot of Commodity Market Traders | Columns Legend
Nov-28-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
Gold505,65839200,08465-218,5924018,50829
Silver139,1443134,28067-47,8553613,57542
Copper173,23321-3,872284,91276-1,04012
Palladium19,90465-10,171910,34893-17731
Platinum70,4375210,03439-14,272644,23825

 

Strength Scores led by Steel, Silver & Gold

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Steel (99 percent), Silver (67 percent) and Gold (65 percent) lead the metals markets this week.

On the downside, Palladium (9 percent) comes in at the lowest strength level currently and is in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
Gold (65.1 percent) vs Gold previous week (52.6 percent)
Silver (67.2 percent) vs Silver previous week (57.4 percent)
Copper (27.5 percent) vs Copper previous week (27.8 percent)
Platinum (38.7 percent) vs Platinum previous week (32.1 percent)
Palladium (8.7 percent) vs Palladium previous week (7.9 percent)
Steel (98.6 percent) vs Palladium previous week (95.9 percent)

 

Gold & Platinum top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that Gold (38 percent) and Platinum (22 percent) lead the past six weeks trends for metals. All the markets in the metals category have positive trends for the past six weeks.

Move Statistics:
Gold (38.4 percent) vs Gold previous week (44.1 percent)
Silver (20.7 percent) vs Silver previous week (21.6 percent)
Copper (19.0 percent) vs Copper previous week (9.7 percent)
Platinum (22.4 percent) vs Platinum previous week (16.6 percent)
Palladium (8.7 percent) vs Palladium previous week (6.2 percent)
Steel (21.8 percent) vs Steel previous week (19.0 percent)

Individual Markets:

Gold Comex Futures:

Gold Futures COT ChartThe Gold Comex Futures large speculator standing this week reached a net position of 200,084 contracts in the data reported through Tuesday. This was a weekly lift of 28,379 contracts from the previous week which had a total of 171,705 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 65.1 percent. The commercials are Bearish with a score of 39.5 percent and the small traders (not shown in chart) are Bearish with a score of 29.1 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Gold Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:57.322.99.0
– Percent of Open Interest Shorts:17.866.15.4
– Net Position:200,084-218,59218,508
– Gross Longs:289,845115,59645,650
– Gross Shorts:89,761334,18827,142
– Long to Short Ratio:3.2 to 10.3 to 11.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):65.139.529.1
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:38.4-35.09.0

 

Silver Comex Futures:

Silver Futures COT ChartThe Silver Comex Futures large speculator standing this week reached a net position of 34,280 contracts in the data reported through Tuesday. This was a weekly lift of 6,828 contracts from the previous week which had a total of 27,452 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 67.2 percent. The commercials are Bearish with a score of 35.9 percent and the small traders (not shown in chart) are Bearish with a score of 41.8 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Silver Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:45.229.019.2
– Percent of Open Interest Shorts:20.663.39.4
– Net Position:34,280-47,85513,575
– Gross Longs:62,88040,28726,647
– Gross Shorts:28,60088,14213,072
– Long to Short Ratio:2.2 to 10.5 to 12.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):67.235.941.8
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:20.7-19.79.5

 

Copper Grade #1 Futures:

Copper Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week reached a net position of -3,872 contracts in the data reported through Tuesday. This was a weekly fall of -329 contracts from the previous week which had a total of -3,543 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 27.5 percent. The commercials are Bullish with a score of 75.7 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 11.9 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Copper Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:36.238.97.7
– Percent of Open Interest Shorts:38.536.08.3
– Net Position:-3,8724,912-1,040
– Gross Longs:62,74967,34813,309
– Gross Shorts:66,62162,43614,349
– Long to Short Ratio:0.9 to 11.1 to 10.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):27.575.711.9
– Strength Index Reading (3 Year Range):BearishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:19.0-15.2-22.8

 

Platinum Futures:

Platinum Futures COT ChartThe Platinum Futures large speculator standing this week reached a net position of 10,034 contracts in the data reported through Tuesday. This was a weekly lift of 2,898 contracts from the previous week which had a total of 7,136 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 38.7 percent. The commercials are Bullish with a score of 64.0 percent and the small traders (not shown in chart) are Bearish with a score of 24.9 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Platinum Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:54.625.010.5
– Percent of Open Interest Shorts:40.345.34.5
– Net Position:10,034-14,2724,238
– Gross Longs:38,43817,6037,403
– Gross Shorts:28,40431,8753,165
– Long to Short Ratio:1.4 to 10.6 to 12.3 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):38.764.024.9
– Strength Index Reading (3 Year Range):BearishBullishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:22.4-18.2-11.5

 

Palladium Futures:

Palladium Futures COT ChartThe Palladium Futures large speculator standing this week reached a net position of -10,171 contracts in the data reported through Tuesday. This was a weekly boost of 116 contracts from the previous week which had a total of -10,287 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 8.7 percent. The commercials are Bullish-Extreme with a score of 92.9 percent and the small traders (not shown in chart) are Bearish with a score of 31.1 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Palladium Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:24.159.28.1
– Percent of Open Interest Shorts:75.27.29.0
– Net Position:-10,17110,348-177
– Gross Longs:4,80411,7901,610
– Gross Shorts:14,9751,4421,787
– Long to Short Ratio:0.3 to 18.2 to 10.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):8.792.931.1
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:8.7-7.1-12.6

 

Steel Futures Futures:

Steel Futures COT ChartThe Steel Futures large speculator standing this week reached a net position of -233 contracts in the data reported through Tuesday. This was a weekly advance of 682 contracts from the previous week which had a total of -915 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 98.6 percent. The commercials are Bearish-Extreme with a score of 1.1 percent and the small traders (not shown in chart) are Bullish with a score of 61.2 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Steel Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:24.070.32.2
– Percent of Open Interest Shorts:25.170.40.9
– Net Position:-233-30263
– Gross Longs:4,96714,556453
– Gross Shorts:5,20014,586190
– Long to Short Ratio:1.0 to 11.0 to 12.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):98.61.161.2
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:21.8-23.546.4

 

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Financial News Metals
22 Nov

Copper Stocks: Short-Term Pain for Long-Term Gain

Source: Streetwise Reports  (11/17/23)

Despite stockpiles of copper growing quickly, analysts polled at London Metal Exchange Week believe the red metal will bring good returns in the long run. 

Stockpiles of copper registered with the London Metal Exchange (LME) more than doubled this summer and were at their highest level since May 2022 in September.

Despite that, just one month later, an informal poll of 800 people attending LME Week in London found that 53% believed the red metal needed for the green energy revolution would be the metal with the most upside price potential next year, according to Reuters.

Copper will be “THE bullish energy transition trade within commodities,” said Max Layton of Citi during an analysts’ debate, the report said.

Tin came in a distant second in the survey with 23%.

Copper will be “THE bullish energy transition trade within commodities,” said Max Layton of Citi during an analysts’ debate.

Analysts said several companies — including World Copper Ltd., Granite Creek Copper Ltd., and Fabled Copper Corp. — could be there to reap the benefits of that upside.

The International Copper Study Group met in Lisbon, Portugal, last month, and found that stockpiles are expected to grow, and 2024 could see a surplus of about 467,000 pounds of copper on the market as a consequence of higher supply from new or expanded mines.

“Although the global economic outlook is challenging, an expected improvement in manufacturing activity, the ongoing energy transition and the development of new semis production capacity in various countries should support higher growth in world refined usage in 2024,” the group wrote in a release.

The Catalyst: Deficits Will Grow

Copper (Cu) prices haven’t moved much since spiking earlier this year, but BMI analysts believe deficits could still grow at an extreme pace over the coming decade as the clean energy revolution takes hold, predicting prices of US$11,500 per ton by 2032. Copper’s price was US$8,030 per ton ” Friday morning.

“In the longer term, we expect the copper market to remain in deficit as the green transition accelerates along with the demand for ‘green’ metals, including copper,” BMI’s analysts said, according to Stockhead.

EVs use more than three times as much copper as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles long-term, analysts have said.

“In the longer term, we expect the copper market to remain in deficit as the green transition accelerates along with the demand for ‘green’ metals, including copper,” BMI’s analysts said, according to Stockhead.

“Based on industry-wide capital intensity data, we calculate that some US$196 billion of investment will be required,” a market analysis issued by RFC Ambrian said. “Of this, US$80 billion is for greenfield projects, and US$116 billion is for brownfield projects, of which US$71 billion is simply for replacement capacity. A further US$35 billion of investment will be required to close the supply gap.”

An S&P report called copper “one of the most underappreciated critical minerals.”

“Deeper electrification requires wires, and wires are primarily made from copper,” the report said.

Billionaire Robert Friedland, founder and executive co-chairman of Ivanhoe Mines Ltd., recently told Bloomberg that he fears copper prices could jump tenfold eventually.

“We’re heading for a train wreck here,” he said.

World Copper Ltd.

One company that could benefit from a future spike in copper prices is Vancouver-based World Copper Ltd. (WCU:TSX.V;WCUFF:OTCQX; 7LY0:FRA), which is focused on the exploration and development of its copper porphyry projects: Escalones and Cristal in Chile, and Zonia in Arizona.

Taylor Combaluzier of Red Cloud Securities has rated the stock a Buy with a target of CA$2.15. He said World Copper has “transformed from an explorer into a developer with a portfolio of high-quality copper projects in premiere copper mining jurisdictions.

Streetwise Ownership Overview*

World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQB)

Retail: 40.67%
Strategic Investors: 31.16%
Management & Insiders: 27%
Institutions: 1.17%
40.7%
31.2%
27.0%
*Share Structure as of 4/20/2023
Source: Thomson Reuters & World Copper Ltd.

 

“We believe Escalones shows compelling economics when compared to other copper development projects and that it offers lots of potential for resource expansion,” he wrote. “Additionally, we believe Zonia has lots of untapped potential, as it could either be rapidly developed for nearer-term production or potentially be expanded through exploration to increase the scale of the project.”

Zacks Small-Cap Research analyst Steven Ralston has a CA$0.59 per share target price on the junior mining company. Its share price on Friday, in comparison, was CA$0.065 per share, implying a potential return for investors of more than 800%.

Earlier this year, World Copper filed an updated mineral resource estimate (MRE) for Zonia. It increased total resources by about 90% to about 198 million tonnes from a 2017 estimate, with contained copper increasing by 55% to about 1.03 billion pounds.

Escalones is about 100 kilometers from Santiago. Its PEA (preliminary economic assessment) estimates an inferred resource of 426 million tonnes of 0.367% copper, containing 3,447 pounds of copper.

Coming catalysts include permitting for Escalones and a preliminary feasibility study (PFS) of Zonia’s main deposit.

Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) owns about 15.8% of World Copper or about 19.2 million shares. About 27% is owned by management and insiders, including Director Robert Kopple with 11.84% or 14.8 million shares and Board Chairman Hendrik van Alphen with 2.67% or 3.25 million shares. CEO Peterson said he holds about 700,000 shares. The rest is retail.

Its market cap is CA$8.13 million. It has 125 million shares outstanding, including 87.2 million of them free-floating. It trades in a 52-week range of CA$0.26 and CA$0.07.

Granite Creek Copper Ltd.

Another play for copper is Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB), “a Canadian exploration company focused on the acquisition and development of highly prospective brownfields assets in top districts of favorable North American mining jurisdictions,” according to its website. It is a member of the Metallic Group of Companies, along with Metallic Minerals and Stillwater Critical Minerals.

Per a 2023 PEA, its Carmacks Project has the potential for significant additional cash flow from the processing of oxide tailings to increase total copper recovery.

Streetwise Ownership Overview*

Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB)

Retail: 94.29%
Management & Insiders: 5.71%
94.3%
5.7%
*Share Structure as of 8/28/2023
Source: Thomson Reuters

 

The company has also identified additional near-mine exploration targets that have the potential to increase the resource from the current 36 million tonnes grading around 1.07% copper equivalent.  The project currently has a mine life of nine years, at 7,000 tonnes per day (TPD), and any further expansion into the surrounding area could significantly extend that operational lifespan.

Recently, the company announced the preliminary results of a metallurgical study designed to increase the recovery of copper from oxide material at Carmacks, with up to 81% of the copper present in the test samples going into solution.

A Couloir Capital research report referred to Granite Creek Copper as a “promising base metals explorer with a near-term target of reaching a billion pounds of copper at its Carmacks Copper Project.”

Bob Moriarty of 321gold.com said Granite Greek was “a really easy call.”

“Green energy requires enormous quantities of copper, lithium, and graphite, far more than today,” Moriarty wrote. “Prices will have to go up. Granite Creek Copper is in the catbird’s seat, ready to move to production.”

Moriarty wrote that he’s “not a big expert on copper, but Granite has to be one of the lowest market cap copper stories with a real asset.”

Management and insiders own 5.71% of the company. Timothy Johnson owns 2.54% of the company with 4.08 million shares, Robert Sennott owns 1.84% with 2.96 million shares, Michael Victor Rowley owns 1.07% with 1.71 million shares, and John Charles Richard Cumming owns 0.26% with 0.42 million shares.

There are 160.77 million shares outstanding, with 151.59 million free-float traded shares. The company has a market cap of CA$5.63 million. It trades in the 52-week period between CA$0.03 and CA$0.105.

Fabled Copper Corp.

Fabled Copper Corp. (FABL:CSE) has continually seen high grades of copper in fieldwork results from its Muskwa Project in British Columbia.

One float sample taken at about 1,600 meters elevation contained massive sulfides and quartz veining with 60% chalcopyrite, 3% bornite, and 23.4% copper (Cu). Another sample at the western side of the occurrence found “a staggering” 29.3% Cu.

Streetwise Ownership Overview*

Fabled Copper Corp. (FABL:CSE)

Retail: 97%
Insiders & Management: 3%
97%
3%
*Share Structure as of 9/22/2023
Source: Yahoo Finance

 

“We’re finding all this high-grade mineralization,” President and Chief Executive Officer Peter Hawley said. “So that’s a pretty good hint that, you know, we’re, we’re very close to the source . . .  It’s not very often you see high-grade numbers like this.”

Muskwa is in northwestern British Columbia near the Yukon border. It consists of the Toro, Bronson, and Neil claim blocks. All three were explored in the early 1970s before rockslides and snowfields arrested further development. One vein was developed and partly mined — 498,000 tons were milled with a head grade of about 3% Cu.

On the same day as the 29.3% Cu sample, 11 other samples were collected over an altitude of 158 meters. Of the 12 collected, 11 assayed greater than 0.5% Cu, seven greater than 10% Cu, and four greater than 20% Cu.

Fabled has applied for 15 drill sites at the project, including four in the Eagle Vein area. Negotiations with First Nations continue.

According to Yahoo Finance, about 3% of the company is held by insiders. They include Director Luc Pelchat with 1.19% or 210,000 shares, David Smalley with 0.86% or 150,000 shares, and President and CEO Hawley with 0.65% or 110,000 shares, Reuters said.

The rest, 97%, is retail.

Fabled Copper’s market cap is CA$870,000, with 21.75 million shares outstanding, 21.28 million of them floating. It trades in a 52-week range of CA$0.105 and CA$0.03.

 

Important Disclosures:

  1.  World Copper Ltd., Granite Creek Copper Ltd., and Fabled Copper Corp. are billboard sponsors of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Fabled Copper Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fabled Copper Corp.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. 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.

For additional disclosures, please click here.

 

Financial News Metals
18 Nov

COT Metals Charts: Speculator Bets led by Silver this week

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday November 14th and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.

Weekly Speculator Changes led by Silver

The COT metals markets speculator bets were lower this week as just one out of the six metals markets we cover had higher positioning while the other five markets had lower speculator contracts.

Leading the way for the metals this week was Silver with a total gain of 4,145 contracts.

The markets with declines in speculator bets for the week were Platinum (-10,954 contracts), Gold (-10,840 contracts), Copper (-6,320 contracts), Steel (-465 contracts) and Palladium (-207 contracts) also registering lower bets on the week.

Data Snapshot of Commodity Market Traders | Columns Legend
Nov-14-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
Gold486,63430155,37645-177,0195621,64338
Silver134,8262622,39850-31,634569,23618
Copper206,07247-16,6081616,4498515919
Palladium27,381100-11,230211,28399-5339
Platinum85,87097-3,9966-2,365896,36153

 

Strength Scores led by Steel & Silver

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Steel (93 percent) leads the metals markets this week. Silver (50 percent) comes in as the next highest in the weekly strength scores.

On the downside, Palladium (2 percent), Platinum (6 percent) and Copper (16 percent) come in at the lowest strength levels this week and are in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
Gold (45.5 percent) vs Gold previous week (50.2 percent)
Silver (50.2 percent) vs Silver previous week (44.3 percent)
Copper (16.5 percent) vs Copper previous week (22.0 percent)
Platinum (6.4 percent) vs Platinum previous week (31.6 percent)
Palladium (1.7 percent) vs Palladium previous week (3.1 percent)
Steel (92.5 percent) vs Palladium previous week (94.4 percent)

 

Gold & Steel top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that Gold (28 percent) and Steel (15 percent) topped the past six weeks trends for the metals category.

Platinum (-15 percent) and Palladium (-10 percent) were the leaders for the downside trend scores on the week.

Move Statistics:
Gold (28.2 percent) vs Gold previous week (22.2 percent)
Silver (10.1 percent) vs Silver previous week (-2.6 percent)
Copper (4.6 percent) vs Copper previous week (16.0 percent)
Platinum (-15.3 percent) vs Platinum previous week (-0.8 percent)
Palladium (-9.9 percent) vs Palladium previous week (-4.7 percent)
Steel (14.7 percent) vs Steel previous week (19.4 percent)

Individual Markets:

Gold Comex Futures:

Gold Futures COT ChartThe Gold Comex Futures large speculator standing this week came in at a net position of 155,376 contracts in the data reported through Tuesday. This was a weekly decline of -10,840 contracts from the previous week which had a total of 166,216 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 45.5 percent. The commercials are Bullish with a score of 55.6 percent and the small traders (not shown in chart) are Bearish with a score of 37.8 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

Gold Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:52.322.89.3
– Percent of Open Interest Shorts:20.359.14.9
– Net Position:155,376-177,01921,643
– Gross Longs:254,352110,72845,409
– Gross Shorts:98,976287,74723,766
– Long to Short Ratio:2.6 to 10.4 to 11.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):45.555.637.8
– Strength Index Reading (3 Year Range):BearishBullishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:28.2-25.12.5

 

Silver Comex Futures:

Silver Futures COT ChartThe Silver Comex Futures large speculator standing this week came in at a net position of 22,398 contracts in the data reported through Tuesday. This was a weekly lift of 4,145 contracts from the previous week which had a total of 18,253 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 50.2 percent. The commercials are Bullish with a score of 55.6 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.5 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Silver Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:37.333.818.8
– Percent of Open Interest Shorts:20.757.212.0
– Net Position:22,398-31,6349,236
– Gross Longs:50,29145,55125,379
– Gross Shorts:27,89377,18516,143
– Long to Short Ratio:1.8 to 10.6 to 11.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):50.255.617.5
– Strength Index Reading (3 Year Range):BullishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:10.1-1.5-32.3

 

Copper Grade #1 Futures:

Copper Futures COT ChartThe Copper Grade #1 Futures large speculator standing this week came in at a net position of -16,608 contracts in the data reported through Tuesday. This was a weekly lowering of -6,320 contracts from the previous week which had a total of -10,288 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 16.5 percent. The commercials are Bullish-Extreme with a score of 85.3 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 19.5 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Copper Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:30.139.07.3
– Percent of Open Interest Shorts:38.131.07.2
– Net Position:-16,60816,449159
– Gross Longs:61,97680,28715,028
– Gross Shorts:78,58463,83814,869
– Long to Short Ratio:0.8 to 11.3 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):16.585.319.5
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:4.6-2.9-11.4

 

Platinum Futures:

Platinum Futures COT ChartThe Platinum Futures large speculator standing this week came in at a net position of -3,996 contracts in the data reported through Tuesday. This was a weekly lowering of -10,954 contracts from the previous week which had a total of 6,958 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 6.4 percent. The commercials are Bullish-Extreme with a score of 88.6 percent and the small traders (not shown in chart) are Bullish with a score of 53.2 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Platinum Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:52.429.011.5
– Percent of Open Interest Shorts:57.031.84.1
– Net Position:-3,996-2,3656,361
– Gross Longs:44,96924,9429,842
– Gross Shorts:48,96527,3073,481
– Long to Short Ratio:0.9 to 10.9 to 12.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):6.488.653.2
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-15.310.619.5

 

Palladium Futures:

Palladium Futures COT ChartThe Palladium Futures large speculator standing this week came in at a net position of -11,230 contracts in the data reported through Tuesday. This was a weekly decrease of -207 contracts from the previous week which had a total of -11,023 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 1.7 percent. The commercials are Bullish-Extreme with a score of 98.9 percent and the small traders (not shown in chart) are Bearish with a score of 38.5 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Palladium Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:20.849.67.0
– Percent of Open Interest Shorts:61.88.47.2
– Net Position:-11,23011,283-53
– Gross Longs:5,68913,5831,911
– Gross Shorts:16,9192,3001,964
– Long to Short Ratio:0.3 to 15.9 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):1.798.938.5
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-9.99.05.4

 

Steel Futures Futures:

Steel Futures COT ChartThe Steel Futures large speculator standing this week came in at a net position of -1,768 contracts in the data reported through Tuesday. This was a weekly decrease of -465 contracts from the previous week which had a total of -1,303 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 92.5 percent. The commercials are Bearish-Extreme with a score of 7.6 percent and the small traders (not shown in chart) are Bearish with a score of 47.7 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

Steel Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:19.075.42.2
– Percent of Open Interest Shorts:28.866.41.4
– Net Position:-1,7681,628140
– Gross Longs:3,44613,641400
– Gross Shorts:5,21412,013260
– Long to Short Ratio:0.7 to 11.1 to 11.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):92.57.647.7
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:14.7-15.728.3

 

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Financial News Metals
15 Nov

Mid-Week Technical Outlook: Gold heading back towards $2000?

By ForexTime 

  • Gold boosted by fundamental forces
  • Technical indicators signal further upside
  • Time for bulls to step into a higher gear?
  • All eyes on key psychological $2000 level

Gold glittered on Wednesday after jumping over 1% in the previous session.

The precious metal drew strength from a weaker dollar and falling Treasury yields following the softer-than-expected US inflation data on Tuesday.

This data has knocked the probability of another Fed hike to almost zero with traders pricing in a 50-basis point rate cut by July 2024, according to Fed Funds futures. 

Given gold’s zero-yielding nature, further gains could be on the cards as expectations rise over the Fed cutting interest rates in 2024. It will be wise to keep a close eye on the incoming US retail sales data among other key reports and speeches by Federal Reserve officials this week which could influence expectations around what the Fed does beyond 2023 – ultimately impacting gold prices.

Focusing on the technical picture, gold could push higher if a daily close above $1968 is achieved.

After rebounding from the 200-day SMA earlier this week, bulls have been armed with the technical and fundamental ammunition to attack the psychological $2000 level once again. 

In addition, the Relative Strength Index (RSI) has yet to hit overbought conditions – signaling room for further upside.

On the weekly charts, the trend flipped back in favor of bulls in October after prices breached the bearish channel. However, a solid close above the $2000 resistance is needed for bulls to step into a higher gear.

Taking a brief look at the monthly timeframe, prices remain in a very wide range with key resistance at $2000 and support at $1800. It is worth noting that gold has never secured a monthly close above the psychological $2000 level. Given the solid monthly candle in October and strong fundamental drivers supporting bulls, a significant move could be on the horizon.

Redirecting our attention back to the daily timeframe, bulls look to be in a position of power with all eyes on $2000.

  • A strong daily close above $1968 may open the doors back towards $2000, $2010, and $2018, respectively.

  • Should prices remain capped below $1968, this could trigger a decline back towards $1945 and $1934 – where the 200-day SMA resides.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Metals
14 Nov

Were Still in a Gold Bull Market

Source: Barry Dawes  (11/13/23)

Barry Dawes of Martin Place Securities explains why he believes we are still in a bear market when it comes to gold, despite public sentiment.

Yes, we are still in a bull market for gold, but you wouldn’t know it.

KEY POINTS

Gold

  • Breached support again
  • Major support not too far below
  • Gold in most currencies at or near all time highs

Gold Stocks

  • Volatility is this sector
  • Sentiment still very low
  • Back into support

ASX Gold Stocks

  • Still working through that RHS

Palladium

  • Gets hammered
  • Back into long term support
  • Sentiment worse than 2015 before subsequent 500% rise!

Stock Markets and Currencies

  • S&P 500 about to surge
    • Bond rally to pickup steam?
    • US$ about to surge?
  • Yen teetering
    • Nikkei about to surge
    • Yen Gold at all time highs
  • EURO about to crack as well?
    • Gold in Euros about to surge
    • German DAX near all time highs
    • French CAC in strong uptrend
  • Yuan still weak
    • Shanghai about to surge?
      • 17 year downtrend meets 32 year uptrend
      • What a wedge!
    • Gold in Yuan near all time highs
      • back to key support
  • All Ords in support
    • About to run higher?
    • Gold in A$ near all time highs
    • A$ holding on downtrend
  • Pankind walkathon for Pancreatic Cancer on 19 November
    • Support Sonia Cottee in Canberra walkathon fundraiser

Gold continues to frustrate the bulls and continue to depress small-cap investors in a microcosm that is totally at odds with actions in other world markets.

Gold in most currencies has been making new all time highs and seems ready to run much higher.

That is what you would normally call a bull market!

But you are not feeling it. Sentiment is still so poor. The major currencies seem on the edge of another big decline. The Yen and Euro look very weak, and even small declines from here would suggest major breakdowns ahead.

Economic fundamentals ( whatever that means nowadays) are deteriorating, but stocks are heading higher and seem to want to run very hard to look over the valley and beyond the horizon.

The Israel/Hamas conflict gets stranger by the day, with journalists `embedded’ in the Hamas adventure and the roles being challenged everywhere.

What to believe?

Heed the markets indeed.

What are they telling us?

Apart from yet another US$20 slapdown.

I’m still thinking about this a-b-c pull back into support.

Signs of powerful internal character in gold.

It could come down another US$20.

A lot of long-term support here.

That May 2023 downtrend is there.

And horizontal support.

Another US$20 lower would backtest the breakout and support on that downtrend.

What can you say about this after that fabulous 6% gain on the previous Friday?

Newmont hit the bottom of this wedge.

This ratio goes back to the lower edge.

Really oversold.

Silver

  • Still building up pressure
  • Will break to the upside soon
  • Soonish

Palladium

  • Hammered!

  • Five waves down after an irregular `b’ wave
  • Sentiment as low as 2016 at US$500/oz
  • 2016-2022 gave 500% gain!

Keep in mind the bigger picture is still looking positive for the mining sector.

Currencies, gold, and stock markets.

Is there a pattern here?

US$ is universally expected to crash, but it hasn’t yet and just might not.

Still expecting 155.

  • Bonds are in the early stages of a big rally
  • Five waves down completed
  • And an island reversal

S&P 500 Breaks Downtrend

  • 4600 soon
  • 4800 by year end?

The other currencies tell a slightly different story.

Weak currencies, strong local gold prices, and stock markets that could really surge.

Japanese Yen

  • At very critical stage
  • Very ugly chart
  • Below the Devil’s Number

Gold in Yen

  • Small pull back from all time highs
  • Heading much higher

Japan stock market

  • About break 7-month downtrend
  • Set to surge much higher

Euro

The Euro broke a 50-year uptrend and provided a goodbye kiss backtest before falling away again.

Closing below 105 would crack the Euro.

Gold in Euros is heading higher in a strong uptrend.

Backtesting 2022 downtrend.

German DAX is just off all time highs.

French CAC is just off all time highs.

Chinese Yuan

  • Heading lower

Gold in Yuan

  • Has pulled back from all time high
  • Into major support

Shanghai Stock Market

  • Is this about to surge as well?
  • Same level as 2009
  • 17 year downtrend just about to meet:-
  • 32 Year uptrend
    • What a wedge!

Australia

AU$ is weak, but it is holding onto a 12-year downtrend.

AU$ gold is heading higher.

All Ords holding onto uptrend.

The 7700 resistance seems more important to watch than the 15-year uptrend.

Sonia Cottee

A dear friend in Canberra with Stage 4 Pancreatic Cancer.

Walking on November 19 for Pankind — supporting research for Pancreatic Cancer.

Would you like to support a very brave lady?

PYFD 2023 – Canberra | Walk with Soni (putyourfootdown.org.au)

 

Important Disclosures:

  1. 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.
  2. 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.

For additional disclosures, please click here.

Financial News Metals
08 Nov

Billion Dollar Players

Source: Michael Ballanger  (11/6/23) 

Michael Ballanger of GGM Advisory Inc. shares his thoughts on the current state of the stock market, including movements in gold and silver. Ballanger also explains why he believes one uranium stock may be worth your attention.

I used to HATE listening to a local program called Shark Tank, where a group of Canadian “silver spoons” lecture the viewing public exactly WHY they were “so incredibly successful” in their abilities to take great ideas offered by young people and turn them into serious PERSONAL net worth enhancements.

One of the final group of “entrepreneurs” on that program in the early days was none other than Kevin O’Leary, the Canadian entrepreneur who made his fortune pitching The Learning Company (originally founded by O’Leary as “Softkey”) to Mattel Inc. for US$4.2 billion in what was later called “one of the most disastrous corporate acquisitions in recent history” as a US$50 million profit forecast turned into a US$105 million loss wiping out US$3 billion in Mattel’s market cap in a single day.

O’Leary was sued by Mattel and snuck away unscathed, but whether it was fined by Autorité des Marches Financiers for violations of the Securities Act (O’Leary Funds) or lawsuits by partners, he seems to have a habit of becoming embroiled in controversy.

The biggest controversy in a career that began in Toronto as a cat food brand manager for Nabisco came last year when he was cited as a spokesperson for FTX Corp. founded by Sam Bankman-Fried (“SBF”), who was this week convicted of defrauding investors of billions of dollars which were diverted from his crypto exchange to his personal hedge fund (Alameda) which in turn threw millions upon millions of dollars at people like Kevin O’Leary (and Tom Brady, Steph Curry, and supermodel Gisele Bündchen) as well as dozens of U.S. politicians (who have been noticeably reticent in returning any of the money.)

Now that the markets have once again spoken loudly in response to the somewhat dovish tone set out by Chairman Powell last Wednesday, the “Seasonality Trade” that I have been chirping about for the last three weeks looks to have finally arrived.

O’Leary continues to pump various products and services that seem to be on the thin edge of the knife, but for a celebrity pitchman who was seen every other week on BNN or CNBC spouting his esteemed opinion on everything from crypto (which he hated before FTX dumped US$10mm into his burgeoning bank account) to IRS tax tips, his career has now devolved into that of a carnival barker or snake-oil salesman.

Countless times, I have written about how decades of unbridled credit creation and deficit spending have created an environment of total disrespect for the purchasing power of a nation’s currency. No better example of how money corrupts was the recent book by one of my all-time favorite authors, the magnificent storyteller Michael Lewis (“Liar’s Poker,” “The Big Short,” “Boomerang”), chronicling the life of SBF that essentially absolves him of any “malice of intent” in his looting of billions of investor dollars while buying properties, sports teams, and political favor through illegal campaign contributions.

When I read the book (“Going Infinite – The Rise and Fall of a New Tycoon”), I came away horrified that an author who cut his teeth working on Wall Street — who wrote the book on shysters and confident men (and women) — could misread SBF and present him as an absent-minded dreamer with aspirations of saving the world from an “Artificial Intelligence Armageddon.”

This is what happens when money mysteriously shows up on a doorstep, and the finder has no idea how it got there. There is zero respect for what labor hours were required to create it or the identity of the people who originally earned it.

Politicians in Ottawa or Washington or London have zero interest in protecting the purchasing power of the savings of the voters they represent because those voters are more than happy flipping houses in a hot real estate market, and as long as the voter next to you gets hit with a tax increase, and you dodge the CRA or IRS bullet, all is good with the Federal deficit and life goes on.

I watched the cable coverage of the SBF verdict, and the talking heads on CNBC still look at SBF as a cult hero of sorts, with Jim Cramer trying to navigate around the fact that he called SBF “the new J.P. Morgan” back in 2022 but now refers to him as “an idiot,” a “con man,” a “pathological liar” in what has to be the greatest 180-degree opinion reversal in cable TV history.

Our entire culture has become a cultist culture where social media creates a myriad of causes that everyone with a cell phone can champion with little or no regard for consequences. You can sit in your mom’s basement and praise Sam Bankman-Fried for his entrepreneurial talents, and then, with the help of the keypad, delete everything you ever tweeted about the crook and deny you ever heard of him.

You can also call Leafs enforcer Ryan Reeves a “weak-kneed pansy” from the safety of cyberspace, knowing full well you would never say it while standing in front of him. In the era of “schoolyard judgment” in which I was raised, if you said something to someone that was out of line, you assumed that a knuckle sandwich was coming your way, and what that created was a “culture of accountability” in which you only said or did what you could back up. Applying that to today’s credit-addicted world, if politicians and central bankers were held accountable for 9% inflation rates and unaffordable house prices, it would be amazing how quickly the policies of the Bank of Canada or the U.S. Fed would change.

Only because Sam Bankman-Fried got caught did the MSM change their tune; now he is going to jail. Well, policy-makers were caught a year ago when the inflation rate hit 9%, and they are still worshipped, deified, and exalted as if they actually do “God’s work” in trashing domestic currencies the world over. Something is not exactly “right.”

Stocks

When the vast majority of the stock market “gurus” make a good call, they usually begin with the phrase “As I told you last week/month/quarter. . .” and then proceed to brag for the next three paragraphs about how much money they made their clients/subscribers/apostles.

I will not do that.

However, now that the markets have once again spoken loudly in response to the somewhat dovish tone set out by Chairman Powell last Wednesday, the “Seasonality Trade” that I have been chirping about for the last three weeks looks to have finally arrived.

More importantly, the trade that confirms this is the iShares 20+ Year Treasury Bond ETF (TLT:NYSE), which I have owned only for a couple of weeks, having bought it in the US$83 range with 10-year and 30-year yields punching out through 5%.

The 10-year yield hit 5.02% last week before a wicked rally kicked in, taking it right back down to 4.55% by Friday’s close.

The U.S. Dollar index had a huge crash to close out the week, dropping 1.01% to 104.90.

I see a move to the 100-dma at US$93.44 and then up to the 200-dma at US$97.71, with my ultimate objective being “somewhere north of US$100.”

I bought the SPDR S&P 500 ETF (SPY:NYSE) Dec US$445 calls in mid-October before the Israel-Hamas war broke out and elected to stick with them despite some fairly intensive selling in the latter part of the month. Luckily (or brilliantly), I sent out an Email Alert right after the Fed rate decision was announced buying the SPY:NYSE Dec US$425 calls, with the result being a three-day ride from the outhouse to the penthouse and a US$10k loss transforming itself into a US$12k gain.

With corporate buybacks kicking in and earnings season now behind us, it should be (operative word “should”) clear sailing until New Year’s, with the proviso being possible geopolitical flare-ups and/or inflation surprises. If I am right on the TLT:NYSE, I will be very right on the SPY:NYSE trade.

The other risk is that the macro outlook weakens sharply and much faster than the Street expects, but that is unlikely until Q1/2024.

Gold and Silver

After the NFP numbers came out and the U.S. dollar began to tank, December Gold bolted out of the gate to US$2,012 and for a while appeared to be headed for a nice weekly close above US$2,000 but for some ungodly reason (tongue-in-cheek), sellers arrive, and prices leaked all the way to the Comex pit session ending with the weekly settlement price at US$1,999.20.

I fully expected to see a bunch of bullion bank traders thumbing their noses at us from the outer ring, giving each other the “wink, wink, nudge, nudge. Say-no-more, say-no-more” Eric Idle routine from Monty Python days.

I exited the SPDR Gold Shares ETF (GLD:NYSE) trade two weeks ago when it punched above my US$184 target price and continued up to US$186 before correcting back down under US$183. The good news is that silver had an excellent day, closing 2.14% higher versus gold’s 0.32% increase, and as I continue to preach ad nauseam, silver must get into gear and consistently outperform gold for the precious metals rally to sweep both metal and miners higher.

The gold miners had a good day on Friday, with the HUI tacking on 4.31%. I own the VanEck Gold Miners ETF (GDX:NYSEARCA:) and the December US$25 calls and the Direxion Daily Gold Miners Index Bull 2X Shares (NUGT:NYSEARCA) and the December US$30 calls all at breakeven prices to close out the week.

Since the miners came down in October acting like “stocks” rather than “gold stocks,” they should (that operative word again) perform in line with the SPY:NYSE (and stock rally) until after New Year’s Day.

New Trade

I have been bullish on uranium since 2017, which means I have seen two rallies, neither of which I traded.

At the start of the year, I came up with the concept of the “Electrification Trilogy,” calling for increases in demand for new sources of electricity (nuclear/uranium), transmission infrastructure (wiring/copper), and electrical storage (batteries/lithium) and while I maintained exposure to copper and lithium, I really only had a small position in one uranium developer forgetting all the while that the best proxy for uranium has to be Cameco Corp. (CCO:TSX; CCJ:NYSE).

While I find it difficult to own any stock after it has nearly doubled, I listened to the conference call this week after they reported blow-out earnings, and what grabbed me by the throat was the forward guidance in which they said: “We are seeing durable, full-cycle demand growth across the nuclear energy industry.”

That is really positive guidance, and with 57 new reactors currently under construction around the globe and with Germany reversing their decision to dismantle three of their power plants, the demand for uranium is going to kick in long before new supply can hit the market.

Accordingly, I decided to bite the bullet and take a punt on a few Cameco March US$40 calls in the US$5.00 range on the assumption that I will see all-time highs above US$46.41 by New Year’s Day and US$50 in Q1/2024.

I know I am late to the party, but with guidance so powerfully bullish and nuclear the only real solution to the global energy problem, I cannot see getting hurt despite the modest overbought conditions it moved into on Friday before backing off.

 

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Cameco Corp.
  2. Michael Ballanger: I, or members of my immediate household or family, own securities of: Cameco Corp. My company has a financial relationship with: Cameco Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
  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. 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.

For additional disclosures, please click here.

Michael Ballanger Disclosures

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.

Financial News Metals
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