By Orbex – One of the biggest mistakes that many new Forex traders make is wrongly believing that they do not need a strategy.
Lots of new FX traders think that successful forex trading is about merely looking at the charts and being able to trade on a hunch, anticipating where price is heading next.
However, these traders all find out the hard way that trading without a strategy is a recipe for disaster.
Having a solid Forex trading strategy is a vital part of achieving success as an FX trader and certainly vital to maintaining success.
A good strategy specifically sets out the exact trade setups you can take so that you know what to look out for in the market. It determines your risk and also your reward, letting you know where to place your stops and targets and at what size to trade as well as how to manage your trades.
So, how do you build a Forex strategy?
Time
The first thing to consider is time. How much of it do you have available to trade? How much of it do you want to spend trading?
If you work a fulltime job, you most likely only have mornings and evenings to place trades and can maybe quickly monitor progress on a break. This means that higher time-frame swing Forex trading will be most appropriate.
This is where you place trades using the daily or H4 candles and typically hold a trade for 1 – 2 days.
Alternatively, if you have a lot of free time and like to be more active, shorter time frame trading such as day-trading will be more appropriate. This is where you trade from as little as a 5 – 10 minutes per trade up to one day.
Learn or Develop
The next step is to decide whether you want to learn techniques and setups that other FX traders already use successfully, or whether you want to develop your own.
Again, time and motivation are important here. Developing a strategy requires a lot more time whereas learning a strategy already in use by other Forex traders can help you quickly get up and running in the markets.
Backtesting
Once you have your strategy, you need to conduct backtesting to get an idea of the types of returns you can expect as well as an idea of the distribution of returns.
For example, does the strategy have long drawdown periods? What is the recovery rate? How many trades do you average a week or a month etc. Which market conditions work best, trade or range?
Set Out Your Criteria
Once you know what your setup is, you need to have it written down and clearly defined so that you know exactly what trades to take (and also, which not to take).
Criteria for entry should be noted as well as rules for stop loss placement, position-sizing, target and how to manage your trades.
It is best to think of as many different scenarios as possible here to make your plan as thorough as possible and avoid getting caught out.
For example, if I’m in profit and the market reverses more than half my gains, shall I move the stop to break even or close the trade out? If I have a position open ahead of a key news release, do I close my trade or move my stop or take partial profits, etc?
Monitoring Performance
All good strategies need to be monitored and tweaked occasionally. Journaling your Forex trading and tracking your results will allow you to track the strategy’s performance against your test results.
If there are any huge deviations, it is important to work out what is causing them and how to adapt the strategy to perform better going forward.
If you consider each of these different factors, you will be well on your way to build a robust forex trading strategy which will help you navigate the markets and provide you with an advantage over other traders.
AUDUSD is trading at 0.7003; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6990 and then resume moving upwards to reach 0.7055. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 0.6940. In this case, the pair may continue falling towards 0.6870.
NZDUSD, “New Zealand Dollar vs US Dollar”
NZDUSD is trading at 0.6729; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6705 and then resume moving upwards to reach 0.6785. Another signal to confirm further ascending movement is the price’s rebounding from the support level. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 0.6655. In this case, the pair may continue falling towards 0.6580.
USDCAD, “US Dollar vs Canadian Dollar”
USDCAD is trading at 1.3049; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3070 and then resume moving downwards to reach 1.2975. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 1.3110. In this case, the pair may continue growing towards 1.3190.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
As we can see in the H4 chart, the ascending channel continues. By now, EURUSD has formed several reversal candlestick patterns, including Hanging Man, close to the channel’s upside border. We may assume that later the price may reverse and get back to 1.1136 to continue the ascending tendency. However, one shouldn’t exclude a possibility that the price may continue growing towards 1.1257.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, the pair is trading near the rising channel’s downside border and has already formed Hammer pattern. The current situation implies that the price may reverse and then resume growing towards 109.60 to continue the ascending tendency. At the same time, the pair may choose another scenario and start a new decline to reach 108.50.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
By Orbex – Ahead of the UK’s official departure date from the EU on January 31st, 2010, the first rumblings about the deadline for the transitional phase are already starting to emerge. The UK is due to enter into talks with the EU. These are aimed at agreeing on terms of future trade between the two economies.
This period, during which time the UK will remain in the single market, currently has a deadline of December 31st, 2020. The PM has been adamant in his affirmation that a deal can be done within that time. Although, he has also added that the deadline will be honored, regardless of whether a deal is done. Critics, however, argue that the current timeframe is unrealistic and accuse of Johnson of setting trade talks up for failure.
Taskforce Europe
Johnson announced this week that he is launching a special task-force aimed at delivering a deal ahead of the deadline. Johnson’s new team, called “Taskforce Europe” is slated to begin operating by January 31st. They will take over from the former Department for Exiting the European Union (DExEU). Taskforce Europe will be the vehicle through which Johnson negotiates with Europe regarding the terms of a free trade agreement. It will be led by the PM and David Frost, his Europe adviser.
EC President Calling For Transition Phase Extension
Despite Johnson’s insistence that the current timeframe offers ample room for agreeing to a deal, the EU does not seem to share the same confidence. Ursula von der Leyen, the new European Commission president told the French newspaper Les Echos “I am very concerned about how little time we have.”
She further commented:
“It seems to me that, on both sides, we should seriously consider whether the negotiations are feasible in such a short time.”
The new EC president went on to say that pending a review of negotiations in summer 2020, the deadline might need to be extended. Von der Leyen said:
“it would be reasonable to evaluate the situation mid-year and then, if necessary, agree on extending the transition period.”
Johnson’s Defensive Over Trade Talks Deadline
While the EU might push for such an adjustment, the political backdrop in the UK poses a challenge. As part of the Withdrawal Agreement Bill, Johnson included a clause to prevent parliament from extending the deadline. As such, the deadline can now only be extended if Johnson passes a motion to revoke that clause.
However, it seems unlikely that such a motion would pass. This is given the concern shared among many Brexiteer MP’s that a Brexit deal would result in the UK entering an indefinite limbo with the EU. As a result of this, while the UK has avoided the immediate economic risks of Brexit, later into next year, we could see fresh risks arise if trade negotiations look to be struggling.
Technical Perspective
The post-election rally in GBPUSD was capped by a test of the 1.3379 level, following the break of the bearish long-term trend line from 2015 highs. While price was knocked lower following this test, 1.2967 offered support. Price is once again moving back above the trend line. While above the 1.2697 level, a further test of the 1.3379 level is likely, in line with the bullish channel which has framed the recovery in GBP. For now, the focus remains on further upside.
The monthly consumer confidence index report for December will be coming out today from the Conference Board. Today’s report will mark the US economic performance for the final month of the year 2019.
Economists are hopeful that the consumer confidence index will rise to 128.0. In October, the figure fell to 125.5. If the index comes in at the expected 128.0, this will mark an increase for the first time for the past four months.
After deteriorating slightly in November, the expectations are for a rebound. There is a good chance that we will see a modest improvement from the declines in November. Given the fact that consumers spend more during the holiday months, the forecasts remain consistent.
Further to the above, the fact that the payrolls saw a big jump in November is another contributing factor. Payrolls rose 266,000 during the month, marking a return to the 200k+ figure after four months.
While wage growth was weak, it was relatively stable. Considering the fact that the consumer prices remain sluggish, it translates to relatively better spending power for the consumers.
Will Jobs and China Relations Add to the Bump?
The overall economy was relatively stable. However, it was closer to the latter part of December that the United States and China agreed to the phase one deal. The initial part of the month saw a lot of doubts being cast.
However, closer to the December 15th deadline, both parties agreed to a trade deal. The result was that the US equity markets soared to fresh highs.
With the trade tensions easing at least for now, and the November jobs report, it is quite likely that the CB Consumer confidence index will rise from the November levels.
One of the reasons for this bullish view is the Federal Reserve. Given the fact that the US economy turned sluggish, the Fed responded with three rate cuts over the year. At the December meeting, Fed officials pledged to keep interest rates steady over the course of the year ahead.
This could translate to a sense of stability among consumers. One aspect is that the housing markets are showing signs of a rebound. Although still nascent, recent data on housing shows a pick up in sales.
With mortgage rates likely to stay low, US consumers are likely to see more spending power in their hands. Although the economy is still not fully out of the woods, the initial response looks quite encouraging.
One of the aspects to look out for is the Conference Board’s present situation index. In November, this component fell from 173.5 to 166.9 during the month. But the report from November indicates a positive outlook.
Consumer Confidence Still Remains High
Despite the monthly declines, the overall outlook for the consumer confidence index remains on a firm footing. This is seen from November’s outlook which showed that holiday spending will likely keep consumer optimism alive.
Respondents to the survey suggested that the economic growth into the final quarter of 2019 will remain weak. This is somewhat in line with the forward-looking indicators.
For example, the current GDP trackers suggest that US growth will average around 2% or more in the fourth quarter of 2019. Comparing to the third quarter, the expectations are for a pick up in the economy, albeit at a slower pace.
Today’s consumer confidence report comes ahead of the January 1st bank holiday in most of the major markets. Therefore, investors aren’t likely to read much into the numbers.
On Monday the 30th of December, the euro was 23 points up at the end of trading (+0.20%). The US dollar has remained under pressure throughout the holiday season. The euro rose to 1.1211 in Asian trading and resumed its growth up to 1.1221 in the US session.
Day’s events (GMT+3):
17:00 USA: S&P/Case-Shiller Home Price Indices (YoY) (Oct).
17:45 USA: Housing Price Index (MoM) (Oct).
18:00 USA: Consumer Confidence.
Current situation:
After hitting a new high, the price consolidated within a narrow range for 14 hours. The market remains optimistic about the US-China trade deal. According to reports, Liu He, China’s Vice Premier, will visit Washington over the weekend to sign an agreement. Market activity has calmed down around news concerning the trade deal, so after the New Year, market players will shift their focus to Brexit.
On Tuesday, the news calendar offers up two housing price indices and the consumer confidence indicator out of the US. Many traders and investors left their positions before Christmas. We believe that reactions to the publication of these statistics should not be expected.
According to the forecast, we expect multidirectional dynamics from the euro: a decline to 1.1190 with a subsequent increase to 1.1223. The pair is technically ready for correction, but since the market is thin, it is more profitable to consider the continuation of upwards movement rather than a decline in value.
By Orbex – Equity markets were posting declines for the second consecutive session, following up from Friday’s bearish close. Economic data remains sparse amid talks that the United States and China are close to inking the Phase one of the trade deal. The yearend flows are also likely to blame as investors book profits.
Euro Extends Gains Largely on Dollar Weakness
The euro currency continues to maintain the bullish momentum as the common currency rose to a four-month high. Economic data out of the Eurozone was quiet. The dollar was weakening as investors await further details of the trade deal.
EURUSD Trend Likely to Shift
The currency pair is currently struggling near the resistance area of 1.1193 – 1.1177 region alongside a confluence with the trend line. We, therefore, expect a retracement if price fails to breakout higher convincingly. Given the thin liquidity in the markets, the euro remains at risk of a move in either direction. But the overall trend is looking up.
Sterling Holds on to Gains
The pound sterling maintained its position firmly as the year comes to an end. Investors will likely focus on the Brexit talks that will dominate the wires into the year ahead. So far, the pound sterling is seen retracing some of the declines.
GBPUSD at Risk of a Correction Lower
The cable is seen trading near the resistance level of 1.3100. However, with the Stochastics on the 4-hour chart signaling a hidden bearish divergence, prices could snap back. A decline will likely see GBPUSD retesting the lower support near 1.2960. But a higher low formation could signal a shift to the upside.
Gold Prices Set to Close out the Year Near Current Highs
Gold investors keep the price of the precious metal well bid near the current highs above 1500 an ounce. There seems to be a bit of a modest risk-on sentiment besides the year-end profit-taking. With equities likely to retreat, gold prices are likely to hold steady into the close of the year.
XAUUSD Steady at 1515 Resistance
The precious metal was seen holding steady near the resistance level of 1515. Given the fact that prices retreated off this level previously, there is scope for a pullback. However, the precious metal is on track to close out the year with gains. Expect further gains if the current 1515 level of resistance gives way.
Bob Moriarty of 321gold unwraps the people and projects he believes makes these companies compelling investments.
In my experience everyone tends to make investing wisely way too complicated. Simple works, complicated doesn’t.
I think the first site visit I went on was to a gold project in Xinjiang province in Western China over eighteen years ago. The gold bull was but a calf. Site visits had totally stopped after the Bre-X scandal in 1996. The sponsor of the trip managed to assemble the most highly qualified and experienced writers and geos in the business for the visit. And then there was me.
My qualifications consisted of having a new gold site, doing some writing and having run a small placer gold operation in Alaska in 1980. By the way, don’t ever get involved in any market after the top; it’s a loser’s game. Every other person on the trip had far more in the way of qualifications than I did.
I used the trip as a way of measuring other writers and professionally qualified geologists to see how they viewed projects. I didn’t say much and certainly didn’t want to advertise my ignorance by asking stupid questions.
One of the first properties of the company was a gold mine that had been mined for six hundred years. There were literally thousands of dumps of waste rock covering dozens of acres of ground, and they had to have tens of thousands of uneconomic rock. You see, to mine at a profit (and believe it or not, everyone used to mine at a profitwhen they couldn’t profit, they stopped mining) that long ago, they had to have very rich rock and they tossed everything aside that wasn’t what we now consider very high-grade material.
When I got back to Miami and was preparing an article, I got into contact with the president of the company, who happened to be a professionally qualified geologist with lots of initials after his name signifying something, I’m sure.
I asked him what the grade was of the numerous piles of waste rock. He replied that he didn’t know. I asked how much an assay would cost. He said, “$50.” Since there were literally tens of thousands of tons of already broken-up rock at surface that might contain gold, it seemed reasonable to me that it would be nice to know the average grade. The business class airfares the company had just spent ran into medium six figures, so $50 for an assay didn’t seem like much to me.
The president of the company had what he believed was a perfectly rational answer as to why it wouldn’t be worth spending thousands of dollars on a sample program of what he called waste rock. “We don’t know exactly where the waste rock came from,” he said smugly.
I persisted, “You don’t know it’s waste rock, first of all, and you know exactly where it came from: it came from the holes right next to the hundreds of piles of rock. You can map the sample and it will give you a lot of information a lot cheaper than a drill program.”
Eventually I convinced him that a $25,000 program could provide data cheaper than anything else he could do. He took 500 samples and sent them off to the lab. Months later I hadn’t heard anything back so I followed up with a phone call. “What kind of average grade did you come up with?” I asked.
“Well, er, hmm. . .It wasn’t really a scientific test because we don’t know exactly where the ore (notice the change in terminology here from ‘waste’ to ‘ore’) came from, so I don’t think we learned much,” he mumbled.
I persisted, “What was the average grade?” “Well, er, hmmm. . .it was just over 2 grams a ton.”
Two grams a ton of gold at surface in Western China was economic ore and what could be the start of a successful mining program as there were many thousands of tons of what was now ore.
I learned something important with that episode. Many people in the mining business confuse the journey with the destination. Profitable mining is the destination. Exploration is not the destination; it just gets you eventually to profitable mining if everything works out.
In other words, don’t ignore the obvious just because it’s cheap and easy. That would be a great lesson for investors.
Quinton Hennigh is my best friend in mining. We have spent a lot of time together since meeting for the first time in October of 2008. I realized then that I didn’t really have to know jack about mining if I knew someone who did know something. Quinton does. He knows a lot. Five minutes chatting about a project with him is worth a semester in a boring classroom being preached to by someone who doesn’t know the difference between a journey and a destination.
Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB) began its Japan journey in early 2016 and in mid-December of 2016 announced their first assays. I’ll quote the interesting bit from the release: “At the Honpi (‘Main Vein’ in English) occurrence, rock chip samples collected from float boulders of vein material returned exceptional assays including 480 gpt gold (Au) and 9,660 gpt silver.”
Now everyone can understand what $28,841.94 rock is. It’s a home run out of the park. There were other samples grading multi-ounce gold in the release so clearly this wasn’t a one-off. Japan is home to the highest-grade gold mine in the world. It’s certainly home to a lot of volcanic activity. Irving’s Hokkaido project is a classic epithermal hot spring deposit with multiple pulses of both silver and gold.
The highest-grade gold and silver shouldn’t be at surface; it should be 300500 meters deep. so getting $29,000 rock at surface means the system was spitting out pieces of high-grade rock that made it to surface.
Folks, this isn’t rock science. First of all, everyone knew Quinton Hennigh was part of the deal. That’s a high credibility plus, and then right off the bat they found ultra bonanza rock that shouldn’t have been at surface. That’s can’t happen in a vacuum.
I went into their private placement (PP) at $0.40/share and still own the shares. Every press release since then has added to what we know about the system, and it’s all been positive. If you want to make your fortune investing in junior mining stocks, you should invest based on solid results when it appears to be risky. Smart investors knew everything they needed to know in December 2016. Everything since has been a cherry on top of whipped cream on a sweet apple pie.
As far as I am concerned, I knew what I needed to know in 2016, but for those who need convincing and are willing to pay 700% more for the shares, Irving managed to put in a deep hole that got down to where the main body should be in hole 10. Those results should be out in mid-February.
LLion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) is another zero-brainer, run by a serial investing genius named Wally Berukoff who keeps building companies and selling them for a fortune. In early March of 2019, with $12 million in the bank, a resource of high-grade 5+ g/t gold of over 900,000 ounces and a market cap of about $50 million, Wally made an interesting addition to the company. He announced bringing in Quinton Hennigh as a technical advisor.
In all candor, with that kind of ounces and a tiny market cap, being fully permitted and with $12 million in the bank, this wasn’t all that hard a choice for me. When Wally brought in Quinton, I knew I had a fistful of aces. Wally has been running the company slow but steady. Quinton managed to convince him to speed it up. Raise some money and start poking holes in to the ground.
Actually, while Lion One is a gimme, I do have a competitive advantage. When I first met Quinton in October of 2008 we were driving up to Wyoming to look at Rattlesnake Hills, another alkaline deposit. As president of Evolving Gold at the time, he needed a home run project and Rattlesnake filled the bill. Evolving went from $0.15/share in the dismal days of late 2008 to $1.65/share a year later. Quinton just loves alkaline deposits. Like porphyry deposits they tend to be large. Unlike porphyry deposits, they tend to be very rich.
When Quinton climbed on board Wally’s train, I started buying Lion One shares. After he twisted Wally’s arm and got him to understand that the road to riches consisted of spending $10 million doing a lot of exploration and deep drilling. I frankly think that anyone who didn’t recognize what an outstanding investment Lion One was by early 2019 shouldn’t really be investing. It was the low-hanging fruit. No other junior in the world controls an alkaline deposit all by itself.
The most interesting pick I have ever made, and it’s one few investors would be able to duplicate, was that of Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). And my rationale would be out of the box for just about everyone.
Let me tell you a little story. . .(that used to start, “Meanwhile back at the ranch. . .”)
In 1976 I was making a living delivering small planes built in the U.S. all over the world. I ended up with about 240 trips of Cessnas and Pipers and Beech aircraft over every ocean. I was working for a slave driver based in Lakeland, Florida. One day he sent me out to California to pick up a used Rockwell 685 aircraft previously owned by a Las Vegas singing star who needed to have his wife flown to LA for medical treatment once a month.
In technical terms, the 685 aircraft was a piece of crap. But it was a high-wing piece of crap. A fellow in Australia named Lang Hancock wanted a pressurized aircraft with a high wing so he could play prospector all over Australia and Southeast Asia. Hancock just happened to be the fellow behind turning the Pilbara into the world’s richest iron deposit.
I ended up flying the plane from the U.S. to Australia. It was an adventure all by itself. Did I mention that the 685 aircraft was a piece of crap? Worse, the slave driver I worked for forced me to bring along on the flight as copilot the son-in-law of Lang Hancock, who was married to his only daughter, now Gina Rinehart.
Now given a choice between a copilot and a wet soggy sandwich, I would opt for the wet soggy sandwich in a heartbeat, but we had an interesting and adventurous flight. For about forty hours of flying over a period of about ten days he regaled me with tales of how rich the Pilbara region of Western Australia was in both grade and quantity of iron.
You see, the iron that had been dissolved in a saltwater basin covering the Pilbara region 3 billion years ago came out of solution when single cell creatures began to produce oxygen.
And the funny thing is that when Quinton and I were driving up to Rattlesnake in October 2008, he sorta told me a similar story. Except Quinton said gold would do the same thing in the presence of carbon as oxygen increased. You see, minerals will precipitate out of solution when the right combination of temperature or pressure or chemistry takes place.
Hmmm!
We met with Mark Creasy in June 2009 and chatted out the theory. Mark believed the Pilbara had a “shit pot” of gold. That’s the technical term for it. And then we went up and spent some time in the field with Mark’s geos swigging $1,200 a bottle wine. (That’s another story all by itself.)
Mark and Quinton finally came to terms on a deal. Quinton formed the company, raised some money at $0.25/share for those who were believers and I did my first story on them seven years ago.
When we did our tour in late 2009, Quinton found me a piece of carbon and in that instant I became a believer. You see, you cannot have the world’s biggest and richest iron deposit without having the world’s richest and biggest gold deposit if the metals come out of solution in the same way.
Everything since then has done nothing for me except convince me I had it exactly right when I said, “You are getting 700 square miles of a Wits model deposit for about $5 million. It doesn’t get any better than that. It is easily a ten-bagger. It could be a 100-bagger. It’s going to be big.”
There is no question; there have been some exceptional technical issues to sort out. The company actually had three totally different deposits: one more or less conventional at Beaton’s Creek with just short of a million ounces of gold; a hard-rock deposit at Karratha that is impossible to measure because of the nature of the nuggety gold; and a near-surface, nuggety, alluvial deposit that might extend from Egina all the way into the Indian Ocean.
I knew in 2009 the gold was there. I said so in 2012 and those who listened, as I was a lone voice in the wilderness, have made a lot of money.
From a technical point of view, Quinton has made incredible progress in a district that everything was known about 135 years ago. Well, almost everything.
He has brought in Newmont Mining; Mark Creasy is still a major investor, as is Eric Sprott and Kirkland Lake Gold, and there is a joint venture (JV) with Sumitomo at Egina. Just lately he has made an announcement that is so giant that it should be on banners being towed behind aircraft over every major city in North America. Mr. Yoshikazu Ishikawa, general manager of the Non-Ferrous Metals Business Department of Sumitomo, has just become a member of the board of directors.
Sumitomo has never done a deal with a junior before.
I like Novo a lot and I understood there was a boatload of gold there ten years ago.
All three companies are advertisers. I am biased. I have both bought shares in the open market and participated in private placements with each of the companies. Do your own due diligence. But keep it simple, not complex.
Lion One Metals $1.52 (Dec 27, 2019); 117.5 million shares Lion One website.
Novo Resources $3.74 (Dec, 27, 2019); NSRPF $2.94 OTCQX; 178.8 million shares Novo Resources website.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
Disclosure: 1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Novo Resources, Lion One Metals and Irving Resources. Novo Resources, Lion One Metals and Irving Resources are advertisers on 321gold. I determined which companies would be included in this article based on my research and understanding of the sector. 2) The following companies mentioned are billboard sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Irving Resources, a company mentioned in this article.
Highlights of that document and the mine ramp-up are presented in a BMO Capital Markets report.
In a Dec. 18 research note, analyst Andrew Mikitchook reported that BMO Capital Markets increased its target price on Victoria Gold Corp. (VIT:TSX.V) to CA$14 per share from CA$12 “to reflect the updated feasibility and ramp-up progress at Eagle,” a gold project that is “flying toward commercial production.”
The company’s current share price is CA$8.12. BMO has an Outperform rating on Victoria.
In his report, Mikitchook presented the highlights from the recently filed feasibility study and a technical session with Victoria management to discuss it. The report outlines a 20% increase in reserves totaling 3.3 million ounces and an addition of 766,000 ounces (766 Koz) in the Measured and Indicated category. These increases were “primarily driven by the new resource estimation parameters resulting in a larger resource,” the analyst explained.
As for Victoria’s Eagle gold project, ramp-up is now about 75% complete, noted Mikitchook, and the mine is on track for commercial production in Q1/20. So far, about 2.3 million tons of the 3.0 million ton goal have been stacked. By year-end, Victoria will be close to reaching that mark, according to management. Stacking will continue into January, and that extra month will boost the production rate outlined in the mine plan by 10%.
Management also indicated that “early results show good correlation between the blast hole sampling grades and the resource model,” Mikitchook pointed out.
Looking forward, he concluded, “In our view, 2020 is a potential breakout year for Victoria Gold that should drive a rerating as it aims to achieve commercial production in Q2/20 and graduate to a producer targeting roughly 205 Koz by year-end 2020.”
Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from BMO Capital Markets, Victoria Gold, December 18, 2019
IMPORTANT DISCLOSURES
Analyst’s Certification I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Company Specific Disclosures
Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to Victoria Gold within the past 12 months.
Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Victoria Gold within the past 12 months.
Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to Victoria Gold within the past 12 months.
Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Victoria Gold within the past 12 months.
Disclosure 6A: Victoria Gold is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services
Disclosure 16: A research analyst has extensively viewed the material operations of Victoria Gold.
Disclosure 17: Victoria Gold has paid or reimbursed some or all of the research analyst’s travel expenses.
For Important Disclosures on the stocks discussed in this report, please click here.
Shares of Israel-based renewable energy firm Ellomay Capital got a jolt today after the firm released details of the development plans for photovoltaic projects in Italy with aggregate capacity of 265 megawatts.
Renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel Ellomay Capital Ltd. (ELLO:NYSE.AMEX) yesterday announced “the execution of a Framework Agreement between its wholly-owned subsidiary, Ellomay Luxembourg Holdings S.àr.l. and an established and experienced European developer.”
The company advised that “pursuant to the Framework Agreement, the Developer will provide Ellomay Luxembourg with development services with respect to photovoltaic greenfield projects in Italy in the scope of 350 MW with the aim of reaching an aggregate ‘ready to build’ authorized capacity of at least 265 MW over a 41-month period.” The firm noted that Ellomay Luxembourg also has the option to purchase approximately 37 MW that are already under development by the developer, of which 30 MW have already been approved to connect to the Italian electricity grid.
Ellomay’s CEO Ran Fridrich commented, “The Framework Agreement executed by the Company is another tier in the Company’s plan to increase its portfolio of photovoltaic facilities that are based on [grid] parity. Today the Company’s projects under development are in an aggregate scope of approximately 550 MW and the Company intends to increase the scope shortly to approximately 1,000 MW that are expected to be built over the coming three years. The Company’s deep knowledge and extensive experience in constructing and operation photovoltaic facilities in Italy and Spain enable it to cooperate with experienced and reputable developers.”
The company indicated that it has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, which include 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel.
Ellomay Capital is headquartered in Tel Aviv, Israel, and is involved in the business of energy and infrastructure. The bulk of the company’s operations are involved primarily with production of renewable and clean energy. The firm stated in the release that it is controlled by Shlomo Nehama, one of Israel’s prominent businessmen and the former chairman of Israel’s leading bank, Bank Hapohalim, and Hemi Raphael and Ran Fridrich, who both have experience in financial and industrial businesses. The company claims it has extensive experience in managing and recognizing suitable business opportunities worldwide and the ability to take on significant and complex transactions.
Ellomay Capital has a market cap of about $148.1 million with around 10.14 million outstanding shares. ELLO shares opened more than 20% higher today at $17.79 (+$3.19, +21.85%) compared to the prior trading day’s closing price of $14.60. The stock set a new 52-week high price in early trading of $18.28/share. The shares have traded today between $17.02 and $18.28 per share and are presently trading at $17.05 (+$2.45, +16.78%).
Disclosure: 1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
