(2) The article noted that US officials said the new king signaled continuity in energy policies, and the two discussed the stability of the oil market but not current low prices.
Central banks split on oil fallout: Bloomberg reported that central banks globally aren't seeing the growth and inflation implications of cheaper oil the same way. Japan and South Korea say the weaker prices will give way to stronger demand as consumers spend the windfall, moderating the risk of deflation. China also expects a boost to employment and growth. However, Singapore became at least the ninth economy to ease policy this month as global price pressures evaporate.
Big oil faces time of reckoning: The WSJ noted that in the coming days, the world's biggest oil companies will report Q4 earnings, offering the best look yet at the bit lower oil prices have taken. The article said few analysts are expecting financial turmoil at the big companies. The integrateds are cushioned somewhat from the collapse in prices by their refining and other processing businesses, which often benefit from a decline in prices. The companies are also loaded with cash and have taken on relatively little debt after years of high prices.
Lemetropole Cafe -
WTI Crude (1.5%) to $45.51 and Brent (0.4%) to $49.40. Some bearish inventory data weighing on prices after the API reported weekly US supply rose by 12.7M barrels versus expectations for a 3M barrel decline. The DOE reports crude inventories this morning, with analysts expecting a 4M barrel increase.
UBS says $90/oil will take 60 months: The WSJ noted that UBS says prices will return to their pre-collapse levels in no less than 60 months, which would be a much slower recovery than previous episodes when prices recovered in an average of 17 months. The bank said an oversupply, combined with lackluster demand and the additional burden of not having OPEC as a willing defender of prices by reducing quotas, will make the recovery slower and more painful. It estimates supply is currently overshooting demand by 1.3M bpd.
Saudi's battle with US shale far from over: The Business Spectator reported that it appears that rather than just maintaining production, Saudi Arabia has actually increased supply even as prices tumbled. The article noted that the chief executive of Saudi Aramco told a conference this week that the kingdom was producing about 9.8M bpd - about 300K barrels more than previously publicly acknowledged. The article noted that if the Saudis want to permanently limit the impact of US shale on the global market for oil, they will need to ensure the price remains below the levels which would bring the dormant reserves back into the market. It added that they believe prices around $50/barrel or just below are achieving their objectives in reducing supply from the sources they are targeting.
Saudi king and Obama meet: Reuters noted that Saudi King Salman met with US President Obama to pay respects to the late King Abdullah and bolster a relationship that now stretches well beyond oil interests to security cooperation across the region.
Apr 15, 2013 6:50 PM
Lost 60% of my FAMILYS NET WORTH IN 2 DAYS. I'm simply DEVASTATED
I'm lost for words. I was long NUGT and many other shares, including TRX. Sinclair assured us by his birthday 3/27/13 this would all be over, and this was the low in gold due to the events in Cyprus. How can he claim to be a gold expert? I trusted him so very much. I have to call my 80 year old dad tonight and explain to him how I lost almost his entire net worth in mining shares. I hardly feel like waking up tomorrow morning. To the folks shorting, please keep in mind the pain we longs are feeling, its not comical, its pain like you cannot imagine. Great for your profits, but be mindful of the absolute devastation that has taken place.
Apr 15, 2013 TRX was around $2.50 a share
The Direxion Daily Gold Miners Bull & Bear 3x Shares seek daily investment results, before fees and expenses, of either 300% or 300% of the inverse (or opposite) of the performance of the NYSE Arca GoldMiners Index. There is no guarantee the funds will meet their stated investment objectives.
These" leveraged" ETFs seek a return that is +300% or -300% of the return of their benchmark index for a single day. The funds should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day.
Submitted by Tyler Durden on 01/16/2015 12:48 -0500
All morning, mainstream media has been down-playing the insolvency of various retail-focused FX brokers using words like "contained" and even suggesting retail 'moms-and-pops' should not be allowed to trade FX. Now, we get more news from a non-retail institution:
*CITIGROUP SAID TO LOSE MORE THAN $150 MLN ON CURRENCY MOVES
So should Citi be banned from FX trading too? It appears so - Citi's head of European FX sales is 'said to leave' the company.
*CITIGROUP HEAD OF EUROPEAN INVESTOR SALES, FX, SAID TO LEAVE
As Bloomberg reports,
Citigroup Inc., the world’s biggest currencies dealer, lost more than $150 million after the Swiss central bank decided to let the franc trade freely against the euro, according to a person briefed on the matter.
The losses occurred on the New York-based bank’s trading desks and aren’t tied to its relationships with FXCM Inc. and other retail trading platforms, said the person, who asked for anonymity because the information hasn’t been disclosed publicly.
Citigroup Inc.’s head of European investor sales, foreign exchange and local markets, Alex Jackson, left the firm this week, a person with knowledge of the matter said.
His departure isn’t related to investigations into the rigging of the foreign-exchange market, according to the person, who asked not to be identified because the move isn’t public.
* * *
See what happens when you can't rig the market?
I saw the report. Looks exceptional. CEO and team highlights how they'll tackle the emergency loan and pay it off in the near term while setting record forex metrics. They will continue to operate and expand operations. I'm excited for next week.
By JENNY STRASBURG and Telis Demos
Updated Jan. 23, 2015 4:02 p.m. ET
Foreign-exchange broker FXCM Inc. plans to consider sales of noncore assets to help pay off portions of a $300 million rescue loan it received after trading losses nearly sank the firm, according to people familiar with the matter.
New York-based FXCM also is reviewing countries where it offers currency trading, with an eye toward possibly lopping off jurisdictions where capital requirements and other costs are too onerous, one of the people said.
FXCM was forced to seek a bailout last week after the Swiss National Bank in a surprise move scrapped the cap on the country’s currency. That left FXCM customers owing it about $225 million, and the company warned it might be in violation of capital requirements as a result.
NEW YORK, Jan 23 (Reuters) - Losses from the surprise move by the Swiss National Bank nearly crippled brokerage FXCM , but all the attention has resulted in a surge of activity among options traders on the online forex broker.
FXCM's shares fell nearly 90 percent on Tuesday after the company faced $225 million in losses on the SNB's shock decision last week to remove the cap on the Swiss franc. It then agreed to an emergency loan from Leucadia National Corp.
The loan kept FXCM from falling short of regulatory requirements that could have kept it from operating. The shares, which touched a low of $1.28 on Tuesday, have recovered slightly, though on Friday they were down 31 percent at $2.14 in active trading on the New York Stock Exchange.
The drastic drop in the price of the shares has spurred a surge of interest in both the stock and its options, with some hoping for a buyout for FXCM.
"The action in the underlying stock has been highly speculative and now it's moved to the options market," said Ian Bezek, an independent trader based in New York.
Recent trading appeared to be driven by speculative call buying, said Fred Ruffy, options strategist at WhatsTrading
Options trading in FXCM shares had been sparse, averaging less than 15 contracts a day last year. The volume has now exploded and since Tuesday has averaged more than 50,000 contracts a day.
"The stock suffered such a big sell-off that the logic might be: 'Well, if it recovers even 20 percent of the losses, that translates to a substantial move higher from current levels,'" Ruffy said.
Meanwhile, short sellers have jumped at the chance to open new positions in FXCM this week, data from SunGard's Astec Analytics shows.
Following the Swiss central bank's move, borrowing of FXCM shares jumped 29 percent in just two days and latest figures show short sellers are betting on more declines, Karl Loomes, market analyst at SunGard's Astec Analytics said.
Current Month Last Month Two Months Ago Three Months Ago
Strong Buy 1 1 1 1
Buy 6 6 6 6
Hold 2 2 2 2
Underperform 1 1 1 0
Sell 0 0 0 0
Allied Nevada Announces Preliminary Full Year 2014 Gold and Silver Sales Increase 19% and 115%, Respectively, Year-Over-Year
Wed January 21, 2015 8:45 AM|Marketwire | About: ANV
RENO, NEVADA -- (Marketwired) -- 01/21/15 -- Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (TSX: ANV)(NYSE MKT: ANV) provides full year preliminary production and sales for 2014 and an update on the status of the mill expansion financing process. In 2014, we increased production by 12% for gold and more than doubled the silver production compared with 2013. Full year 2014 production and sales, as compared with 2013, were as follows:
Years ended 2014 vs 2013
December 31, Increase
Gold ounces 216,937 181,941 19%
Silver ounces 1,841,737 858,073 115%
Gold ounces 214,345 190,831 12%
Silver ounces 1,818,637 882,225 106%
"In 2014 we achieved a number of key goals, including completing positive prefeasibility and feasibility studies for the Hycroft mill project, increasing production and improving efficiency at the mine. While we did not hit our original production and sales targets for the year, we believe we have learned from our 2014 efforts and benefited from our focus on costs," commented Randy Buffington. "I believe the work done in 2014 will position us well in 2015 as we continue to concentrate on operational improvements and cash generation."
The increase in gold and silver production in 2014 resulted primarily from the higher mining rate year-over-year and the resultant additional ore tons...
It's just amazing how the large holders of this stock at $10 a share don't average down
at these insane levels. The short squeeze play would be massive.
There are some. The beauty part... this stock has shorts piled the hilt. That's the energy you need to go the other way. Unexpected things can happen when everyone piles on. One bit of news is all it takes.
Thanks...it was posted last June, but shows MCP is a state of the art operation.
Published on Jun 30, 2014
After more than three years of design, engineering, construction, and commissioning, Molycorp's new, state-of-the-art rare earth processing facility at Mountain Pass, California is fully operational and is now ramping up production of rare earth materials for customers around the globe.
McEwen Miniing just reported strong production results, and it's about to get better.
This is in line with my expectations.
The stock is probably at or near the bottom, but fear over Los Azules being located in Argentina may weigh on the shares.
McEwen Mining (NYSE:MUX) just announced extremely strong production results for the fourth quarter at 27,000 oz. of gold and 973,000 oz. of silver, and for the year at 84,000 oz. of gold and 3.2 million oz. of silver. Furthermore, the company expects to grow its gold production in 2015 to 96,500 oz. while silver production remains flat.
In spite of the company's terrible stock performance, it continues to grow, primarily due to its El Gallo 1 Mine which will see 30% production growth in 2015. The company also has an extensive pipeline of projects that make it more appealing than many of its peers with this level of production, hence the ~$300 million valuation.
Yahoo deletes the full article....Search title
They play with fire. Zero Hedge picked it up.
Russia Cuts Off Ukraine Gas Supply To 6 European Countries
Submitted by Tyler Durden on 01/14/2015 19:56 -0500
Thursday, Jan 15th 2015
By Robert Lea
Russia cut gas exports to Europe by 60 per cent today, plunging the continent into an energy crisis 'within hours' as a dispute with Ukraine escalated.
This morning, gas companies in Ukraine said that Russia had completely cut off their supply.
Six countries reported a complete shut-off of Russian gas shipped via Ukraine today, in a sharp escalation of a struggle over energy that threatens Europe as winter sets in.
Bulgaria, Greece, Macedonia, Romania, Croatia and Turkey all reported a halt in gas shipments from Russia through Ukraine.
Croatia said it was temporarily reducing supplies to industrial customers while Bulgaria said it had enough gas for only 'for a few days' and was in a 'crisis situation'.
Read more... daily mail
Submitted by Tyler Durden on 01/11/2015 16:30 -0500
Speaking to his favorite money-honey, billionaire Saudi Prince Alwaleed bin Talal told Maria Bartiromo that the negative impact of a 50% decline in oil has been wide and deep. As USA Today reports, the prince of the Saudi royal family said that while he disagrees with the government on most aspects, he agreed with their decision on keeping production where it is, adding that "if supply stays where it is, and demand remains weak, you better believe it is gonna go down more. I'm sure we're never going to see $100 anymore... oil above $100 is artificial. It's not correct." On the theory that the US and the Saudis have agreed to keep prices low to pressure Russia, the prince exclaimed, that is "baloney and rubbish," adding that, "Saudi Arabia and Russia are in bed together here... both being hurt simultaneously."
Exceprted from USA Today,
Q: Can you explain Saudi Arabia's strategy in terms of not cutting oil production?
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.
If you go to the 43-101 released in November of 2012, GCU used a figure of $1400 for gold and $15 for silver. The numbers were based on an 80% recovery for gold and 60% for silver. The open pit resources were just over 5 million ounces of gold and 25 million ounces of silver. Therefore, in a buyout, management would be remiss if they accepted below $60 million. $75-$80 million would be a more reasonable offer.
At $.10 a share, you are paying $3 an ounce for gold and you get 25 million ounces of silver for free. I don’t expect that to last for long. One day soon the wholesale dumping will cease. The buying will not.
Even the majors have begun to realize gold still has a future and are starting to nibble at projects in safe jurisdictions. Gold Canyon is low grade at just about 1 g/t gold but in the safest jurisdiction in the world. That’s worth something. If a bidding war starts on this nice size deposit, the price could go a lot higher.
Shares are still being dumped but more important, they are still being snapped up just as fast.
Gold Canyon is not an advertiser. I have bought shares in the open market. I’m not daft. Do your own due diligence.
Gold Canyon Resources
GCU-V $.105 (Jan 08, 2015)
GDCRF-OTCBB 70.6 million shares
Bob Moriarty Jan 9, 2015
In the six weeks since the start of December 2014, Gold Canyon Resources has traded 50 million shares in a company with only 147 million shares outstanding. While insiders holding more than 10% of the shares are supposed to report their trades within three days by the rules of the exchange, the rules are mostly ignored. We know that Pinetree Capital (PNP-T) and Sheldon Inwentash owned about 20 million shares. He reported selling some shares in early January. I personally think he’s sold them all but that’s just an opinion.
I also happen to know that Sprott owned about 17-18 million shares. For some reason they don’t report their insider transactions but that’s not unknown.
I did some research and found that since December 1st, 2014 to now, of the 50 million shares sold, Anonymous represented just under 68% of the sales but only 10% of the buying volume. TD Sec did only 13% of the sales but 31% of the purchases.
I think both Sprott and Pinetree were selling under Anonymous to keep their actions under the radarscope of investors. Perhaps investors are missing the 1800-pound gorilla sitting on the sofa. GCU began the month selling for $.21 and with over 1/3 of the total float being dumped on the market; the price only dropped 55% at the worst when GCU hit $.09 on December 19th.
The big question isn’t who sold; we have a pretty good idea of that from knowing who owned big blocks. The important issue is just who managed to absorb tens of millions of shares in an illiquid market? And a hint comes from the big buyer of over 31% of the total shares traded, TD Sec.
Someone is taking a run at Gold Canyon. I have no idea if they will report the insider sales when they go over 10% or not but someone bought over 15 million shares through TD Sec.
To get an idea of what Gold Canyon would be worth in a buyout, we know that the market is valuing gold in the ground at $12 to $15 an ounce.