By: Tomas Ronolski - AllPennyStocks.com News

Friday, February 5, 2016

The U.S. Labor Department today reported a mixed jobs report for the month of January. While the jobless rate dropped to an eight-year low, the number of job additions in January was well below the consensus forecast. The mixed jobs report has led to a sell-off in U.S. equities, with the S&P 500 down more than 2% in late trading. The concerns investors have following the jobs report is how will the Federal Reserve react. The Fed has already hiked benchmark interest rates after nearly a decade, however, there is still no clarity over the pace of rate hikes going forward. Market participants were hoping that the January jobs report would give them an idea about the future course of action. A strong jobs report would have meant that the Fed would continue with its rate hikes this year. A mixed jobs report though has created some doubts.

Apart from the mixed labor market data, the Fed will be also watching global events. Global markets remain under pressure due to lower oil prices and the slowdown in China. All these developments are positive for gold though. Indeed, gold has been one of the best performing assets in the current risk-off environment. Year-to-date, the SPDR Gold Trust (ETF) (NYSE:GLD) has gained more than 9%.

This morning, Abitibi Royalties Inc. (TSX-Venture:RZZ), a Canada-based company engaged in promoting and developing projects, announced that it has entered into a binding Letter of Intent (LOI) with Frontier Gold Corp. to acquire an additional 1% net smelter royalty (NSR) on its Menderes Gold Project. The acquisition of an additional 1% NSR has increased RZZ’s NSR interest to 2%. The Menderes Gold Project surrounds Eldorado Gold Corporation’s Efemcukuru gold mine in Turkey on three sides. In exchange for the additional 1% NSR, RZZ has paid Frontline C$16,000. RZZ will pay the cash consideration from its cash flow.

RZZ also provided an update on its financials. The company said that its total cash flow in 2016 so far has totaled approximately C$250,000. RZZ also noted that since receiving approval for its Normal Course Issuer Bid (NCIB) on October 6th, 2015, the company has repurchased approximately 43,000 shares of its common stock. The NCIB allows RZZ to purchase up to 546,300 shares of its common stock over a period of twelve months.

As with most other miners of late, shares of RZZ are in a multi-month uptrend and advanced close to 6% today alone.

Copyright © 2015 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.