An ambiguous technical picture has developed on the EUR / USD currency pair. The trading instrument is in lateral movement. Unidirectional trends are not observed. Participants in financial markets expect additional drivers. At the moment, the following key support and resistance levels can be distinguished: 1.10200 and 1.10600, respectively. We do not rule out further recovery of the single currency. We recommend that you keep track of up-to-date information regarding trade negotiations between Washington and Beijing. Positions must be opened from key levels.
At 17:00 (GMT + 3: 00), a JOLTS report will be published in the United States.
Indicators do not give accurate signals: the price is consolidating near 50 MA and 100 MA.
The MACD histogram is close to 0.
The Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.10200, 1.09900, 1.09600
Resistance levels: 1.10600, 1.10850, 1.11150
If the price consolidates above 1.10600, expect further growth toward 1.11000.
Alternatively, the quotes can decrease toward 1.09900-1.09700.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.22700
Open: 1.23431
% chg. over the last day: +0.50
Day’s range: 1.23353 – 1.23527
52 wk range: 1.1995 – 1.3385
The GBP/USD currency has moved up again. The trading instrument reached the two-month highs. Members of the House of Commons of the British Parliament voted against early elections due to Brexit. Additional support for GBP was provided by positive a positive GDP report and the data on the volume of production in the country’s manufacturing industry. Currently, GBP/USD quotes are consolidating. The key range is 1.23150-1.23800. The GBP/USD currency pair can grow further. Open positions from the key levels.
At 11:30 (GMT+3:00), investors will evaluate the report on the labor market in the UK.
Indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.
The Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.23150, 1.22550, 1.22100
Resistance levels: 1.23800, 1.24400
If the price consolidates above the resistance level of 1.23800, expect further growth toward 1.24200-1.24400.
Alternatively, the quotes could drop toward 1.22600-1.22400.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.31748
Open: 1.31654
% chg. over the last day: -0.03
Day’s range: 1.31636 – 1.31782
52 wk range: 1.2727 – 1.3664
The USD/CAD currency pair has stabilized after a sharp drop since the beginning of this month. CAD is currently consolidating. There is no defined trend. The local support and resistance levels are: 1.31550 and 1.31900, respectively. A trading instrument has the potential to further decline. The Canadian dollar is further supported by the positive dynamics of oil quotes. Positions must be opened from key levels.
At 15:30 Canada will publish a report on construction permits.
Indicators do not give accurate signals: the price crossed 50 MA.
The MACD histogram is near 0.
The Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.31550, 1.31400
Resistance levels: 1.31900, 1.32250, 1.32450
If the price consolidates below 1.31550, expect a further drop toward 1.31200-1.31000.
Alternatively, the quotes can recover toward 1.32200-1.32400.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 106.824
Open: 107.241
% chg. over the last day: +0.37
Day’s range: 107.182 – 107.496
52 wk range: 104.97 – 114.56
The USD/JPY currency pair continues to show positive dynamics. The trading tool again updated local highs. The USD/JPY quotes found resistance at 107.450. Mark 107.150 is already a “mirror” support. The USD/JPY currency pair has the potential for further growth. We recommend that you pay attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.
The Economic News Feed for 10.09.2019 is calm.
Indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone and above the signal line, indicating bullish sentiment.
The Stochastic Oscillator is in the neutral zone, the% K line is below the% D line, which gives a signal to sell USD / JPY.
Trading recommendations
Support levels: 107.150, 106.850, 106.650
Resistance levels: 107.450, 108.000
If the price consolidates above 107.450, expect further growth toward 108.000.
Alternative, the quotes can drop toward 106.900-106.800.
The US dollar has not changed much against a basket of major currencies. The dollar index (#DX) ended the trading session with a slight decrease (-0.12%). Investors expect news on the progress in trade relations between the United States and China. So, yesterday, US Treasury Secretary Steven Mnuchin said that the United States made great progress in negotiations with the PRC.
Members of the House of Commons of the British Parliament once again voted against the holding of early elections in the country. Last week, officials voted against a similar proposal. British Prime Minister B. Johnson believes that the UK needs early elections, as he failed to advance his idea of leaving the country from the EU without an agreement. The official said that he would fight for a deal with the EU, but did not exclude Brexit without an agreement.
After parliament voted against early elections, it officially suspended its work until October 14. At this time, the discussion of any legislative acts will be stopped. The current parliamentary session is the longest in the history of the British Parliament in almost 400 years. It lasts from June 2017.
In addition, important economic data from the UK was published yesterday. So, GDP (q/q) remained unchanged, while experts expected a decrease of 0.1%. The volume of production in the manufacturing industry grew in July by 0.3%, while experts expected a decrease of 0.1%. Today, investors will evaluate the report on the labor market in the UK.
The “black gold” prices continued to rise. Currently, WTI crude oil futures are testing the $58.15 per barrel mark. At 23:30 (GMT+3:00) weekly stocks will be published according to the American Petroleum Institute.
Market indicators
In the US stock markets yesterday, a variety of trends were observed: #SPY (+0.05%), #DIA (+0.18%), #QQQ (-0.21%).
The 10-year US government bonds yield started to grow. At the moment, the indicator is at the level of 1.63-1.64%.
The news feed on 2019.09.10:
– The UK labor market data at 11:30 (GMT+3:00);
– The number of open jobs in the JOLTS labor market in the USA at 17:00 (GMT+3:00).
The US dollar was seen posting declines after price turned flat in the previous two sessions. Lack of any economic data from the US saw investors focusing on Friday’s payrolls report and Fed Powell’s speech. The Fed Chair did not commit to easing but cautioned against the risks of lowering interest rates prematurely. Elsewhere, safe-haven assets took a breather with investors looking for news from the US and China trade talks which are due to resume in October.
Euro Rises on Germany’s Plans
The common currency was seen taking advantage of a weaker USD and some fundamental developments. Germany’s government is reportedly looking at ways to increase government spending. Dubbed as a shadow budget the plans are underway to circumvent the strict debt rules. Reuters reports that officials are looking at ways to set up public entities in order to take advantage of cheap borrowing costs to boost the economy.
EURUSD Bounces Off Support
The EURUSD currency pair bounced off the support level near 1.1030. Price action was also supported by the falling trend line. The currency pair promptly turned higher. However, in the run up to this week’s ECB meeting, the gains come under question. The next main resistance is at 1.1140.
UK July GDP Eases Concerns of a Recession
The UK’s Office for National Statistics released the monthly GDP figures yesterday. In the month of July, the UK’s GDP grew 0.3% on the month. This beat estimates of a 0.1% increase. Manufacturing production was also stronger, rising 0.3%. Despite the beat on estimates, ONS cautioned not to read too much into one month’s data. Meanwhile, the Brexit saga continues as PM Boris Johnson vowed to part ways with the EU on October 31st. This comes as lawmakers passed a no-deal Brexit law.
GBPUSD Posts a Bullish Engulfing Pattern
The currency pair was seen logging strong gains on Monday. This led to price action posting a bullish engulfing pattern on the daily time frame. However, divergence on the other time frames continue to keep the currency pair a bit uncertain. The support level has now moved to 1.2328 which could be tested in the near term ahead of further gains.
Gold Stays Muted as Risk Appetite Stays Firm
The precious metal was trading weaker on Monday as investors’ moods remained upbeat. Equity markets continued their march higher following up from Friday’s gains. However, the ECB’s monetary policy meeting weighs on investors. Gold prices are likely to remain subdued in the run-up to this Thursday’s meeting.
XAUUSD Hugs the Support Level
XAUUSD remained weak, following through from Friday’s declines. However, prices were largely muted with gold testing the support area of 1508. With price breaking below the 1500 support, gold is now testing the lower support area of 1485. We expect the declines to stall at this level in the near term as gold prices could now move within the range of 1485 and 1508.
Market activity during the Asian session on Tuesday was a mixed affair as investors juggled with soft inflation data from China and optimism around trade relations between the two largest economies in the world. European shares are positioned to enter standby mode ahead of the highly anticipated European Central Bank meeting on Thursday. Where global equity markets conclude this week will not only be influenced by ongoing trade developments but whether ECB satisfies expectations by introducing a new wave of monetary policy stimulus to support the eurozone economy.
Is the Pound out of the Brexit woods?
The British Pound heaved a sigh of relief after Boris Johnson’s latest attempts to reclaim control of Brexit hit a brick wall.
UK Parliament voted against Boris Johnson’s request for an early election on Monday evening which soothed concerns over the Prime Minister plucking Britain out the European Union with no-deal on October 31st. With Parliament officially prorogued until 14th of October and Queen giving the royal assent to a bill that blocks a no-deal Brexit, it is looking likely that Brexit will be delayed until January 2020. However, given the complex and uncertain nature of Brexit it is certainly too early to come to any meaningful conclusions over what could happen on October 31st. The question on the mind of many investors is whether Boris Johnson will be able to get an agreement with Brussels before the European Council summit on 17-18 October. Whatever the outcome, it will have a profound impact on Sterling.
Commodity spotlight – Gold
It has been a slow start to the week for Gold with prices dipping below $1500 on the back of renewed US-China trade optimism. While the precious metal has scope to weaken further in the near term, the downside will most likely be limited by lower interest rates across the world as central banks join the global easing train.
Taking a look at the technical picture, the breakdown below $1500 has resulted in a decline towards $1485. If $1485 gives way, Gold is seen testing $1470 in the short to medium term.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Kazakhstan’s central bank lived up to its guidance from July and raised it base rate by 25 basis points to 9.25 percent as inflation is above expectations and said future policy decisions will be based on how inflation is expected to develop with respect to the bank’s 4.0 to 6.0 percent target corridor. The rate hike by the National Bank of the Republic of Kazakhstan (NBK) follows a 25-basis-point rate cut in April and brings the rate back to the level seen from October 2018 to March 2019. Kazakhstan’s inflation rate declined to 5.2 percent in August from 5.4 percent in July but the central bank expects inflation to rise toward the top of its target corridor at 5.7 to 5.8 percent by the end of this year due to robust consumer demand, price increases on certain foods and the waning effect of lower tariffs on regulated services, which it said creates the risk of inflation exceeding the upper bound of the target corridor. Raising the base rate now will help increase the attractiveness of the tenge currency, reducing the risk of higher inflation from import prices, NBK said, adding during 2020 inflation is then expected to decelerate and settle within its target corridor. Economic growth in the first 7 months of the year is forecast at 4.2 percent by the NBK, which creates inflationary pressure and is above expectations. For the full year, NBK forecast growth of 3.8 percent before slowing to 3.5 percent in 2020, with expanding household consumption and growth in investment the main drivers. Economic growth will then ease due to weaker fiscal stimulus and net exports. The central bank added that during the next week it will release an inflation report that will contain a detailed analysis of the main macroeconomic factors affecting inflation to increase transparency and improve its communications. Kazakhstan’s tenge firmed in the wake of the rate hike to 384.5 to the U.S. dollar but has depreciated since steadily since September 2018 and is 2.3 percent down since the start of 2019.
Dollar strengthening halts despite rising consumer borrowing
US stock indexes ended mixed on Monday as Treasury Secretary Mnuchin said the administration was willing to continue with its tariff policy unless a good deal for US companies and workers could be struck The S&P 500 finished 0.01% lower at 2978.43. Dow Jones industrial rose 0.1% to 26835.51. The Nasdaq composite retreated 0.2% to 8087.44. The dollar strengthening reversed despite data showing consumer borrowing rose 6.8% annual rate in July from a 4.1% rate in the previous month: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 98.31 but is higher currently. Stock index futures point to higher openings today.
FTSE 100 lags European indexes
European stocks pulled back on Monday. Both GBP/USD and EUR/USD turned higher yesterday with both pairs falling currently. The Stoxx Europe 600 index ended 0.3% lower led by healthcare and utilities shares. The DAX 30 however gained 0.3% to 12226.10 lifted by unexpected strong July trade surplus. France’s CAC 40 slipped 0.3% and UK’s FTSE 100 slid 0.6% to 7235.81.
Nikkei up while other Asian indexes slip
Asian stock indices are mixed today. Nikkei rose 0.4% to 21392.10 as the yen slide against the dollar continued. Markets in China are mixed as data showed consumer inflation rose more than expected in August, although the producer prices unexpectedly fell in August from a year ago.: the Shanghai Composite Index is down 0.1% while Hong Kong’s Hang Seng Index is 0.1% lower. Australia’s All Ordinaries Index turned 0.5% lower despite a halt in Australian dollar’s climb against the greenback.
Brent futures prices are edging lower today after earlier gains following Saudi Arabia confirmation of continuing support for global deal to cut oil production by 1.2 million barrels per day. Prices rose yesterday: November Brent crude closed 1.7% higher at $62.59 a barrel on Monday.
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This company’s unique option/royalty model has caught the attention of major resource investors.
Ely Gold Royalties Inc. (ELY:TSX.V; ELYGF:OTCQB) features a unique royalty generation model. The company holds a sizeable portfolio of resource properties in the Western United Statesmostly Nevadathat it makes available to sell outright or through a four-year option contract. Once the buyer completes the payments, it owns outright 100% of the project, and Ely Gold retains a royalty on future production.
The buyer has no work commitments. If a buyer on a four-year option decides not to continue with the payments, the property is returned to Ely Gold.
Trey Wasser, Ely Gold’s president and CEO, told Streetwise Reports, “Our model is much more scalable than the traditional joint venture model, as we have no property/exploration management responsibilities. This allows us to build a much larger portfolio that is constantly generating new royalties. It also allows us to keep our overhead very low and operate just like a royalty company. This keeps the company’s cash flow positive. We, in turn, then can actively seek and purchase additional existing third-party royalties. This is how Ely Gold is transitioning into North America’s newest gold royalty company.”
Ely Gold’s portfolio currently includes 33 deeded royalties, 21 properties optioned to third parties, and more than 20 properties available for optioning.
The company is one the radar of some of the most well-known names in the resource industry. In July, a company controlled by Eric Sprott purchased a 1% royalty on the Fenelon Mine property, located in central-west Quebec, that is operated by Wallbridge Mining Company Ltd., for US$1.25 million. Ely Gold retains a 2% royalty on the property.
Sprott also participated in an Ely Gold private placement, purchasing approximately 5.6 million Ely Gold units at the price of CA$0.18 for gross proceeds of more than CA$1.01 million. Each unit consists of one common share and one half of a common share purchase warrant; the warrant carries an exercise price of CA$0.30 and is valid for three years. This placement has Sprott holding 5.7% of Ely Gold shares, 8.3% if the warrants are exercised.
In January, Exploration Capital Partners 2005 Limited Partnership, where noted resource investor Rick Rule serves as president, subscribed for 9.069 million units at CA$0.11 per unit in the first tranche of a private placement. Each unit consists of one common share and one common share price warrant to purchase an additional share at an exercise price of CA$0.22 for five years. Exploration Capital Partners holds 9.74% of the issued and outstanding shares of Ely Gold on a non-diluted basis, and 17.75% on a partially diluted basis.
Additionally, McEwen Mining recently purchased an option agreement from Fremont Gold Corp. for Gold Canyon claims in Nevada for 300,000 McEwen shares. The claims are located in McEwen’s Gold Bar Mining Complex, where the company achieved commercial production in May. McEwen takes over the obligation to pay the option payments to Ely Gold for the property, $112,500 per year for three years and a final payment of $300,000 on or before December 29, 2022.
Ely Gold has been actively selling options on properties, including:
The past-producing Green Springs gold project in Nevada to Contact Gold Corp. for 2 million common shares of Contact Gold, US$25,000 and reimbursement of prepaid claims fees, $50,000 annually for three years, and a final payment of $100,000 in the fourth year. Ely Gold will retain a 1% net smelter royalty on 76 core claims and a 0.75% royalty on two leased claims.
Castle West property in Nevada to Bitterroot Resources Ltd. for $241,000 in payments over four years. Ely Gold retains a 3% net smelter return royalty on precious metals production.
Nevada Rand property in Nevada to Goldcliff Resource Corp. for $250,000 in payments over four years. Ely Gold retains a 2.75% net smelter return royalty on precious metals production.
War Eagle property in Idaho to Integra Resources Corp. for $200,000 in payments over four years. Ely Gold retains a 1% net smelter royalty.
Ely Gold has also been acquiring royalties, including, since the first of the year:
Jerritt Canyon Processing Facilities per ton royalty interest for the Nevada facility operated by Jerritt Canyon Gold LLC, a privately held company. Ely Gold paid US$650,000 and issued 500,000 warrants for the interest. The royalty varies from US$0.15 to US$0.40 per ton, leveraged to the price of gold.
Lincoln Hill property in Nevada, a 1% NSR royalty on the project operated by Coeur Mining Inc. for $755,000 and 500,000 common share warrants at an exercise price of CA$0.18 for two years. This project is next door to Coeur’s Rochester Mine.
Isabella Peart Mine in Nevada, 0.75% gross receipts royalty on the producing mine operated by Gold Resource Corp. for US$300,000. Ely Gold holds additional royalties on other Gold Resource projects.
Fenelon Mine in Quebec, operated by Wallbridge Mining Company, a 2% NSR royalty, for CA$600,000.
“Ely Gold has royalties on three properties that are producing: Isabella, Fenelon and Jerritt Canyon,” Wasser told Streetwise Reports. “In addition, eight or nine of our properties have been optioned to companiessome of the best operators in Nevadathat have mining operations right around the optioned properties. These are operations that are in production or near to achieving production. That means that as the operators explore our properties, all they have to do is find a minor deposit. If they find 200,000 to 500,000 ounces of gold, that might not be enough to build a new mine, but it would work as a satellite deposit. The timeline to production is much shorter, as is the threshold of discovery. They are just looking for more resources to feed their existing mines.”
Wasser believes the company is in a sweet spot for picking up royalties. “Ely Gold is now in a position with a market cap of CA$33 million where we are able to look at $2 million to $5 million royalty deals. We have very little competition at that end of the market. For royalty companies with $200 million market caps and higher, that size of deals won’t move the needle, but it does for us. These deals really do add up and result in more capital appreciation for shareholders.”
Industry observers are following Ely Gold closely. On June 12 Resource Maven Gwen Preston noted that Eric Sprott paid CA$1.67 million for a 1% royalty on the Fenelon Mine property. “This royalty sale is a great example of how Ely balances building a strong royalty portfolio with ensuring it captures opportunities to make money today. Ely paid $700,000 for the 1% royalty just last fall, so it’s clearing almost $1 million in a move that also brings a famous and followed mining investor into the shareholder registry.”
On June 19, after Ely Gold optioned the Nevada Rand and Castle West properties, Preston commented, “These are just two more examples of the deal-making mode Ely has been in of late. It’s monetizing its assets while continuing to build out its robust royalty portfolio. Given the leverage that Ely offers on bullish precious metals markets, this is definitely a company we’ll want to hold onto as those markets begin to hit their stride.”
After Ely Gold acquired the 1% NSR royalty on Coeur Mining’s Lincoln Hill project, Thibaut Lepouttre of Caesars Reportcommented on May 1, “Considering the average grade at Lincoln Hill is higher than the grade of its adjacent Rochester mine, we would expect Coeur to be very interested in bringing Lincoln Hill into production as fast as possible in which case Ely’s net smelter royalty could start to bring in cash.”
Ely Gold’s shares have appreciated rapidly in the last year, from a 52-week low of CA$0.09 last October, to a high of CA$0.41 in early August, before settling to around the current CA$0.31.
Ely Gold has around 99 million shares outstanding and 126 million fully diluted. It has a tight share structure with approximately 11% of the shares held by management and insiders; 25% by long-term shareholders; 10% by Exploration Capital Partners, a Sprott Resource company helmed by Rick Rule, and 5% by Eric Sprott.
“After spending three years on the road with my partner, geologist Jerry Baughmanpresident of the company’s U.S. subsidiary, Nevada Select Royaltybuilding up the portfolio, we are now at the point where investors both large and small are recognizing the shareholder value that we are creating,” Wasser stated.
Disclosure: 1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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: Ely Gold Royalties Inc. 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.
Additional disclosures:
Disclosures from Resource Maven, June 12 and 19, 2019 Companies are selected based solely on merit; fees are not paid.
The publisher, owner, writer or their affiliates may own securities of or may have participated in the financings of some or all of the companies mentioned in this publication.
Caesars Report: Disclosure: The author has a long position in Ely Gold.
Disclaimer: This report contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including statements regarding the Companys contemplated acquisition or sale of royalties and Properties, and any stated plans for further near-term exploration and development of the its Properties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the risk of accidents and other risks associated with mineral exploration, development and extraction operations, the risk that its partners will encounter unanticipated geological factors, or the possibility that they may not be able to secure permitting and other governmental clearances, necessary to carry out their stated plans for the Properties, the Companys inability to secure the required TSXV acceptance required for any Transaction, and the risk of political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company’s business and prospects. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.
After announcing publication in the scientific journal Immunity that it had created a 61-fold improvement process for predicting cancer-specific antigens, Neon Therapeutics’ stock has traded wildly today, up more than 46% at times on nearly 100-times average daily volume, but has since pulled back greatly.
Shares of clinical-stage immuno-oncology firm Neon Therapeutics Inc. (NTGN:NASDAQ) are trading up today on enormous relative volume after the company announced publication in the scientific journal Immunity of a breakthrough process for predicting which neoantigens will be presented by MHC class II molecules in the tumor microenvironment.
The company notes that predicting the relevant cancer-specific antigens is a crucial precursor to developing immunotherapies that effectively train T cells to traffic to the tumor and destroy malignant cells. In the paper titled “Defining HLA-II ligand processing and binding rules with mass spectrometry enhances cancer epitope prediction,” Neon’s proprietary mono-allelic profiling technology called MAPTAC facilitated the development of convolutional neural network-based predictors. These algorithms achieved up to a 61-fold improvement in predicting MHC class II peptides compared to publicly available tools.
The company advised that MHC class II prediction technology will be integrated into Neon’s RECON bioinformatics platform and is expected to improve the efficacy of immunotherapies developed by Neon by predicting recruitment of CD4+ T cells, which are believed to be important in controlling tumor growth.
Richard Gaynor, M.D., Neon’s president of research and development, commented, “The publication of this work represents an extensive research initiative to significantly improve the recruitment of CD4+ T cell responses. We believe this novel technology and prediction approach significantly advances the neoantigen field by setting a new benchmark for understanding the MHC class II pathway. These new insights may enable the development of improved immunotherapies, as well as therapies for other areas, including autoimmune disorders”.
Associate Director, Proteomics at Neon and lead author of the paper Jennifer Abelin, Ph.D added, “Until recently, neoantigen-directed therapies have been focused primarily on eliciting CD8+ T cell responses toward ligands presented on MHC class I molecules. It has been historically difficult to predict the antigens that will be presented through class II due to inaccurate peptide binding prediction and unsolved complexities of the class II pathway. Through the research published today in Immunity, we have integrated novel proteomics and genomics strategies to build a more accurate tool for defining and understanding the rules of the class II pathway, leading to algorithms that have been shown to significantly outperform currently available prediction tools.”
The company claims that the findings in the Immunity publication demonstrate that Neon’s proprietary class II prediction algorithms substantially outperform NetMHCIIpan, the current benchmark for class II prediction. Key findings in the research include the development of novel proteomic strategies that resolve over 40 MHC class II motifs and the observation that intra-tumoral MHC class II presentation is dominated by professional antigen presenting cells (APCs) rather than tumor cells. Tracking which tumor epitopes are most readily phagocytosed and presented by APCs further enhances the ability to pinpoint therapeutically relevant epitopes.
Neon Therapeutics lists that its clear mission is “to build a breakthrough oncology company creating neoantigen-based therapeutics that significantly improve the lives of patients.”The firm states that it is a leader in the field of neoantigen-targeted therapies, dedicated to transforming the treatment of cancer by directing the immune system towards neoantigens. The firm is using its neoantigen platform to develop both vaccine and T cell therapies, including NEO-PV-01, a clinical-stage neoantigen vaccine for the treatment of metastatic melanoma, non-small cell lung cancer, and bladder cancer; NEO-PTC-01, a neoantigen T cell therapy for the treatment of solid tumors; and NEO-SV-01, a neoantigen vaccine for the treatment of a subset of hormone receptor-positive (HR+) breast cancer.
Neon Therapeutics started today with a market capitalization of about $82.6 million. The company has 28.38 million shares outstanding and typically trades 145,000 to 195,000 shares per day. Today in early trading, volume has already exceeded 18 million shares. NTGN shares opened today at $3.58 (+$0.67, +23.02%) compared to yesterday’s $2.91 closing price. The stock has traded today between $3.22 and $4.25/share and at present is trading at $3.36 (+$0.45, +15.46%).
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.
The reasons this energy firm warrants a rerating are discussed in a Raymond James report.
In an Aug. 28 research note, analyst J.R. Weston reported that Raymond James upgraded Targa Resources Corp. (TRGP:NYSE) to Strong Buy from Outperform “as we feel this is an attractive entry point to gain exposure to the longer-term theme; the selloff is overdone.”
That theme, Weston explained, is “meaningfully improved” financial flexibility in 2020 and beyond for this midstream energy corporation now that capex has “dialed down” and cash flow is increasing. “The worst is largely behind the company,” and now, it is on the cusp of “reaping the rewards of a long-running and ambitious growth program.”
That program involved Targa integrating business and enhancing downstream assets to strengthen its long-term strategic position, noted Weston. “With Grand Prix online this month and expected to ramp to 200,000 barrels per day September, Targa has connected the natural gas liquids value chain between its Permian/Midcon assets and top-tier downstream footprint.”
Targa “is poised to rate into a group of midstream players that are perceived to be higher quality,” Weston commented, and as the company nears full integration, “we expect that investors become willing to provide it with a substantial premium valuation, closer to large-cap C corps.”
Raymond James’ target price on Targa remains unchanged at $48 per share. This compares to $36.78, where the stock is currently trading.
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 Raymond James, Targa Resources Corp., August 28, 2019
ANALYST INFORMATION
Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination including quality and performance of research product, the analyst’s success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks.
The analysts J.R. Weston and Justin Jenkins, primarily responsible for the preparation of this research report, attest to the following: (1) that the views and opinions rendered in this research report reflect his or her personal views about the subject companies or issuers and that no part of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views in this research report. In addition, said analyst(s) has not received compensation from any subject company in the last 12 months.
RAYMOND JAMES RELATIONSHIP DISCLOSURES Certain affiliates of the RJ Group expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next three months.
Raymond James & Associates, Inc. makes a market in the shares of Targa Resources Corp.
Raymond James & Associates received non-securities related compensation from Targa Resources Corp. within the past 12 months.
Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available here.
The recently released resource estimate and other reasons why this Canadian firm makes a premium takeout target are provided in an iA Securities report.
In a Sept. 3 research note, iA Securities analyst George Topping reported that the size, potential and location of Probe Metals Inc.’s (PRB:TSX.V) Val d’Or projects in Quebec put the company on “producers’ mergers and acquisitions screen.”
“Probe has the largest Val d’Or land package and now the largest resource in the camp, which elevates it to a premium takeover candidate,” the analyst added.
That just released resource estimate totals 2.6 million ounces at an average grade of 1.9 grams per ton (1.9 g/t) gold. About 70%, as opposed of the previous 56%, of the resource is open pit at a grade of 1.5 g/t.
The grade for the open pit Measured and Indicated resource is 1.7 grams per ton and for the inferred resource, 1.4 g/t. Yet, iA Securities expects the Inferred grade will increase with further infill drilling, noted Topping. Whereas the grades of the Inferred open-pit resources were “slightly lower than expected,” they were offset by the total ounces.
Further, adding the 565,000 ounces located on Probe’s optioned properties, Monique and Sleep, takes Val d’Or’s total resource estimate to 3.1 Moz, Topping pointed out. Plus, “recent parallel trends to the New Beliveau deposit should continue to grow.”
iA Securities expects that Probe will be acquired in one to two years, perhaps by Agnico Eagle or any of a number of midtier or senior producers, particularly those in the area. The management team has done it before, selling its Borden mine to Goldcorp. “The longer it runs, the higher the eventual takeout price,” Topping commented. Probe, with $23 million in cash, does not need financing any time soon.
IA Securities has a Buy rating and a CA$2.40 per share target price on Probe Metals, whose stock is currently trading at around CA$1.50 per share.
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 iA Securities, Probe Metals Inc., Research Update, September 3, 2019
Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.
Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.
Company Related Disclosures: Probe Metals Inc.: In the past 12 months, Industrial Alliance Securities Inc. has managed or co-managed a public offering of securities for the issuer. The analyst has visited the issuers operations. No payment or reimbursement was received from the issuer for the associated travel costs.
