RCKS TALK Keith Edwards, Chartman Market Analysis Technical Market Analyst RCKS Charts RCKS Charts: BHP, TECK, KL, FM, ANX, ECS, WDO & TK In this edition of RCKS Charts, Keith has evaluated BHP Billiton Ltd. (NYSE:BHP), Teck Resources Ltd. (NYSE:TECK), TSX Diversified Metals & Mining Group, Kirkland Lake Gold Ltd. (TSX:KL), First Quantum Minerals Ltd. (TSX:FM), Anaconda Mining Inc. (TSX:ANX), ecobalt Solutions Inc. (TSX:ECS), Wesdome Gold Mines Ltd. (TSX:WDO) and Tinka Resources Ltd. (TSXV:TK). We have been watching metal prices (gold, silver, copper, zinc, nickel) climb for several weeks. At the same time many metal and mining stocks had been held back into yearend, likely due tax-loss selling. With that pressure out of the way metal and mining stocks are again attracting attention as the New Year gets underway. What impressed us were the huge breakouts in major global mining names, such as BHP Billiton, Vale S.A., and Teck Resources, in the final days of 2017; suggesting global funds were positioning into metal and mining stocks. This growing interest is also evident in the Canadian market as the TSX Diversified Metals & Mining group is edging toward a breakout of its 13-month consolidation pattern accompanied by rising momentum and improving Relative Strength within the Materials sector. From our perspective this bodes well for metal and mining stocks as we enter 2018. Figure 1: BHP Billiton Ltd. (NYSE:BHP) & Teck Resources Ltd. (NYSE:TECK) Priced as of prior trading day's market close, EST (unless otherwise noted). All values in CAD unless otherwise noted. For Disclaimer and Applicable Disclosures, see the end of this report
Figure 2: TSX Diversified Metals & Mining Fittingly two other strong names entering the new year have been Kirkland Lake Gold Ltd. and First Quantum Minerals Ltd. Kirkland Lake Gold Ltd. (TSX:KL) is extending its upleg from May 2017 with positive momentum and money flow (OBV). The next level is the 2010 high at $24-25. Figure 3: Kirkland Lake Gold Ltd. (TSX:KL) 2
First Quantum Minerals Ltd. (TSX:FM) has also broken out to the upside with positive momentum and money flow. There is minor resistance at $20 and once clear the door is open to challenge the summer highs of 2014 at $24-27. Figure 4: First Quantum Minerals Ltd. (TSX:FM) A number of smaller names are also perking upwards following the sloppy December period. We have a lengthy list of names we are watching but at this point several stand out: Anaconda Mining Inc. (TSX:ANX) which has again bounced off its uptrend line with momentum and a sharp uptick in its volume and the Accumulation/Distribution Indicator. Once through $0.11 next resistance appears at $0.14-.15 and at $0.25-.35. 3
Figure 5: Anaconda Mining Inc. (TSX:ANX) ecobalt Solutions Inc. (TSX:ECS) - which is pausing within a solid uptrend with accompanying momentum, volume and accumulation (OBV). Next indicated level is $2.30, higher levels are possible. Figure 6: ecobalt Solutions Inc. (TSX:ECS) Wesdome Gold Mines Ltd. (TSX:WDO) challenging its downtrend from March 2017 with rising momentum and a crossover by the 50dma of its now rising 200dma, suggesting a trend change is unfolding. Breaking above the downtrend line opens resistance at $3.00-3.25. 4
Figure 7: Wesdome Gold Mines Ltd. (TSX:WDO) Tinka Resources Ltd. (TSXV:TK) has bounced from testing its upside breakout. Both momentum and the On Balance Volume (OBV) line are rising. There is resistance in the $0.85-.92 area but once through the next level is $1.25. Figure 8: Tinka Resources Ltd. (TSXV:TK) 5
Keith Edwards, Chartman Market Analysis Technical Market Analyst Red Cloud Klondike Strike Inc. 105 King Street East, 2nd Floor Toronto ON, M5C 1G6 RCKSTalk@RedCloudKS.com /rcks-talk Disclaimer Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business"). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This publication should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report. Company Specific Disclosure Details Company Name Ticker Symbol Disclosures First Quantum Minerals Ltd. TSX:FM None Teck Resources Ltd. NYSE:TECK None BHP Billiton Ltd. NYSE:BHP None Kirkland Lake Gold Ltd. TSX:KL None Anaconda Mining Inc. TSX:ANX 1,3,4 ecobalt Solutions Inc. TSX:ECS 1,2,3,4 Wesdome Gold Mines Ltd. TSX:WDO None Tinka Resources Ltd. TSXV:TK 1,4 1) A member of Red Cloud KS team has visited/viewed material operations of the issuer. 2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer. 3) In the last 12 months, Red Cloud KS has received compensation for investment banking services. 4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer. 5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer. 6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer. 7) A member of Red Cloud KS team or a member s household serves as a Director or Officer or Advisory Board Member of the subject issuer. 6