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November 2, 2024

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Price Momentum Oscillator (PMO) Internals Still a Problem

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We noticed on Thursday evening how poor the internals were for the SPY, based on Price Momentum Oscillator (PMO) internals. These internals are the percent of stocks with rising PMOs and the percent of stocks with PMO Crossover BUY Signals. The accompanying short-term Swenlin Trading Oscillators (STOs), along with IT Breadth Momentum (ITBM) and IT Volume Momentum (ITVM), are also in decline.

Currently a mere 18% of stocks hold rising momentum. This is not a good foundation for a rally. At the same time, I know that things get as bad as they are going to get before they start getting as good as they can get. These are oversold readings that could see an upside reversal. For now, they are puny readings. Note also that the STOs turned down in negative territory.

We currently have less than one quarter of stocks with PMO BUY Signals where the PMO is above its signal line. We note that this indicator also saw a top below the signal line, which is also quite bearish. Both the ITBM and ITVM continue to decline out of overbought territory. They still have plenty of real estate to fall further.

Conclusion: While the rally on Friday could change the face of some of these indicators, the PMO indicators won’t likely see a significant upside reversal. Even if they do, they are still likely to be reading below our bullish 50% threshold. Considering how close we are to all-time highs, we should have stronger internals. Beware.

Good Luck & Good Trading,

Erin Swenlin

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Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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Price Momentum Oscillator (PMO)

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ITBM and ITVM

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Top Ten Charts to Watch for November 2024

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With the Magnificent 7 stocks struggling to hold up through a tumultuous earnings season, what sort of opportunities are emerging on the charts going into November? Today, we’ll break down some of the names we’ve included in our Top Ten Charts to Watch for November 2024.

Some of these charts are overextended, having already logged significant gains in the last month. Others have already experienced short-term pullbacks and may provide actionable entry points around an ascending 50-day moving average. Still others may be worth following less as an investment candidate, but more as a good measure of overall risk appetite for investors.

Let’s start with one of the sectors that I have found investors to be generally underweight, even though the relative performance has really begun to shine in recent months.

Stifel Financial Corp. (SF)

In my recent podcast interview with Ari Wald of Oppenheimer, we talked about emerging strength in the capital markets group, fueled by likely Fed rate cuts into early 2025. Stifel Financial Corp. (SF) has made a new 52-week high pretty much every month in 2024, October included.

After recently pushing above the $105 level, the stock has now pulled back enough to bring the RSI back below the overbought level. While the overbought condition speaks to the strength of the long-term uptrend, we can see that previous pullbacks in May and February featured a very similar configuration with price and momentum indicators.

This is the type of chart in a clear long-term uptrend of higher highs and higher lows. But given the recent drop in the RSI after the October peak, I’d be looking for a tactical pullback which could provide a new higher low. The 50-day moving average is often an area where this sort of pullback could occur, similar to frequent tests earlier this year.

Home Depot, Inc. (HD)

The chart of Home Depot (HD) may provide a perfect example of the “fat pitch” chart, marked by a short-term pullback within a long-term uptrend. The stock broke above its March high around $390 in September, and, after peaking around $420, the price has pulled back to that same pivot point.

This chart provides a clear illustration of the technical analysis concept of “polarity”, where resistance later becomes support. Given that HD has pulled back to this pivot point around $420, as well as an ascending 50-day moving average, I’m inclined to label this as an actionable pullback within a long-term uptrend phase. Also note the RSI just above 40, which is often the lower end of the range for RSI when the stock is in a bullish phase.

Alphabet Inc. (GOOGL)

The Magnificent 7 stocks all deserve our attention given their significant weights in our equity benchmarks. But Alphabet (GOOGL) in particular may be the most important to watch in November, given its meager follow-through after earnings this week.

Alphabet has been building up an inverted head-and-shoulders bottoming pattern since August. The recent breakout above the neckline around $168 seemed to complete this pattern and indicate a high likelihood of further upside. On Wednesday, we saw a gap higher on earnings, but, by that day’s close, the stock was down by the lows of the day.

I’ve found that during bull market phases, breakouts tend to persist, as there are usually plenty of willing buyers interested in taking on additional risk for the possibility of greater returns. But, during bear markets, breakouts often will fail, as investors sell strength because they’re way more concerned with downside risk than upside potential.

Looking for the other seven charts to watch?  Check out the full video on my YouTube channel!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Election-Related Market Swings: How to Stay Ahead

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After yesterday’s “trick,” investors received a “treat” at the end of the trading week, as the stock market regained its footing and bounced back a bit.

Even though the October nonfarm payrolls were much weaker than expected—up by 12,000 when the Dow Jones estimate was for an increase of 100,000 jobs—the market shook it off. The decline is attributed to Boeing’s strike and two major hurricanes. According to a recent Barron’s report, the Bureau of Labor Statistics survey responses were below average, so the data may be skewed. Unemployment is steady at 4.1%, and wages grew by 4.4% annually.

Stocks Bounce Back

The data doesn’t indicate the US economy is heading toward a recession. The major stock market indexes bounced back, with the Nasdaq Composite ($COMPQ) gaining the most after Thursday’s spooky selloff. However, Friday’s bounce didn’t change the Nasdaq’s big picture (see daily chart below).

FIGURE 1. NASDAQ COMPOSITE SHOWS DOWNSIDE MOVEMENT. Friday’s selloff didn’t change the technical picture. The index needs to close above its 21-day EMA to reverse the downside move.Chart source: StockCharts.com. For educational purposes.

The Nasdaq broke above its tight consolidation range on Monday, but, after Thursday’s selloff, it closed well below its 15-day exponential moving average (EMA). Friday’s rebound didn’t change the technical picture. The index went as high as the 15-day EMA, but closed below it in what resembles an inverted hammer, although it didn’t close lower than Thursday’s close.

There is a weakening in market breadth, as displayed by the breadth indicators—Bullish Percent Index, Percentage of Nasdaq stocks trading above their 200-day moving average, and the Advance/Decline Line—displayed in the lower panels.

Small Caps Ain’t Getting Much Love

With interest rate cuts already in play and with more to come, you would think that small-cap stocks would start getting some attention. But we haven’t seen that yet. Even though the S&P 600 Small Cap Index ($SML) broke above a trading range on the weekly chart, there’s not enough buying pressure to send the index into an uptrend.

FIGURE 2. SIDEWAYS FOR SMALL-CAP STOCKS. The high probability of a 25-basis-point interest rate cut at the next FOMC meeting isn’t helping small-cap stocks, which continue to trade in a consolidation.Chart source: StockCharts.com. For educational purposes.

Treasury Yields Jump

Yields fell after the weak jobs report, but that was short-lived. Treasury yields reversed and climbed higher, with the 10-year US Treasury yield closing at 4.36% on Friday (see chart below). $TNX is trading above its 15-day EMA. The question now is whether $TNX will reach its July 1 high.

FIGURE 3. 10-YEAR US TREASURY YIELD INDEX ($TNX) KEEPS ON RISING. $TNX has been on a steady rise since the end of September, when it broke above its 15-day EMA.Chart source: StockCharts.com. For educational purposes.

Treasury yields have been trending up after breaking above the 15-day EMA at the end of September. The rise in yields doesn’t help bond prices, which move in the opposite direction.

The iShares 20+ Year Treasury Bond ETF (TLT) has been trading below its 15-day EMA since September 19, and Friday’s price action was very bearish (see chart below).

FIGURE 4. BOND PRICES SINK. The iShares 20+ Year Treasury Bond ETF (TLT) has been cascading lower since mid-September when it broke below its 15-day EMA.Chart source: StockCharts.com. For educational purposes.

While Treasury yields climb, the economic data shows the economy is growing while the labor market is cooling. This supports the narrative of an interest rate cut. The CME FedWatch Tool shows a 99.7% probability of a 25-basis-point interest rate cut on November 7.

Next week could bring some volatile action to the market, although given the way the stock market has been acting in the last two weeks, there’s no telling what it will do. The best you can do is take it one day at a time.

End-of-Week Wrap-Up

  • S&P 500 closed down 1.37% for the week, at 5728.80, Dow Jones Industrial Average down 0.15% for the week at 42,052.19; Nasdaq Composite closed down 1.50% for the week at 18,239.92
  • $VIX up 7.62% for the week, closing at 21.88
  • Best performing sector for the week: Communication Services
  • Worst performing sector for the week: Real Estate
  • Top 5 Large Cap SCTR stocks: Summit Therapeutics (SMMT); Reddit Inc. (RDDT); Ubiquiti, Inc. (UI); Applovin Corp. (APP); Carvana (CVNA)

On the Radar Next Week

  • US Presidential Election
  • October ISM Services PMI
  • Fed Interest Rate Decision
  • Fed Press Conference
  • November Michigan Consumer Sentiment Index
  • Earnings from Palantir Technologies (PLTR), Marathon Petroleum Corp. (MPC), Novo Nordisk (NVO), Arm Holdings (ARM), Gilead Sciences (GILD), Applovin Corp (APP), among many others.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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These S&P 500 Stocks Are Poised To Outperform!

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In this StockCharts TV video, Mary Ellen reviews the negative price action in the broader markets while highlighting pockets of strength. She shares how the rise in interest rates is impacting the markets ahead of next week’s FOMC meeting. Last up is a segment on how to use longer term charts to uncover long term winners and ride out short term volatility.

This video originally premiered November 1, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

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S&P 500 Under Pressure, Can Strong Seasonality Save It?

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In this video from StockCharts TV, Julius begins by looking back at the completed monthly bars for October to assess the long term trends in the 11 S&P sectors. He follows that up with an updated view for SPY in coming weeks. After that, Julius looks forward using seasonality to find sectors that have strong seasonal tendencies and overlays them on a Relative Rotation Graph, in order to see whether these seasonals are aligning with current relative trends.

This video was originally published on November 1, 2024. Click anywhere on the icon above to view on our dedicated page for Julius.

Past episodes of Julius’ shows can be found here.

#StayAlert, -Julius

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Outstanding Copper-Nickel Discovery

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Asian Battery Metals PLC (ABM or the Company, ASX: AZ9) is pleased to report the results of the remaining assay data from the Phase 1 diamond drilling program at the 100% Oval Cu-Ni-PGE prospect, located in the Gobi-Altai region of Mongolia.

HIGHLIGHTS:

  • Massive sulphide intercept in hole OVD021 of 8.8m @ 6.08% Cu, 3.19% Ni, 1.63g/t E31, 0.11% Co (CuEq2 12.57%) from 107.2m is encountered in between high grade zones of:
    • Dense disseminated intercept – 7.85m @0.75% Cu, 0.78% Ni, 0.15g/t E31, 0.04% Co (CuEq2 2.25%) from 99.35m and
    • Net textured intercept – 15.8m @ 1.36% Cu, 1.00% Ni, 0.44g/t E31, 0.04% Co (CuEq2 3.4%) from 116m.
  • OVD021 is located within 800m+ of strike which remains open at depth and in the SE, NW, NE and SW directions. The copper-nickel sulphide mineralisation represents a new style of deposit for the South Western part of Mongolia.
  • Drilling to recommence immediately upon receipt of Downhole Electromagnetics (pending).

The Company’s Managing Director, Gan-Ochir Zunduisuren commented: “After 4 years of systematic exploration in Mongolia, with the help of the BHP Xplor program in 2023, it is exciting to be a part of an outstanding Copper-Nickel discovery. It is an exceptional result that shows the mineralisation system at Oval has potential for hosting a substantial deposit with a higher grade zone of copper and nickel. With the confirmation of high-grade massive sulphide intercepts, future exploration work at the Oval Cu-Ni discovery will primarily focus on the extension of the high-grade zone and understanding its size, true dip, and orientation. We will recommence drilling within two weeks and look forward to continuing the journey of discovery with our shareholders”.

Summary of the Phase 1 Diamond Drilling Program

During the Phase 1 program, a total of 19 holes were completed (with an additional 2 being abandoned due to drilling and core loss issues) totalling 2896.85 metres (Appendix 1), at the Yambat Project. This included 2183.85 metres of drilling at the Oval Cu-Ni-PGE discovery, 459.8 metres of scout drilling in the South-East area and 253.2 metres of diamond drilling at the Copper Ridge prospect. The abandoned holes SC02 and OVD013A (as shown in Appendix 1) provided no meaningful information and were excluded from the totals.

The Company previously reported the results of 7 Phase 1 2024 drill holes from the Oval discovery (OVD011, OVD012, OVD014, OVD015, OVD017, OVD018, and OVD019) and 2 drill holes from the Copper Ridge prospect3. Laboratory assay results from all the remaining samples from the Phase 1 drilling program have now been received. These samples cover Oval drill holes (OVD009A, OVD010, OVD013, OVD020 and OVD021) and scout drill holes (SC01, SC03, and SC04). Significant intercepts are provided in Table 1.

The most significant achievement of this drilling phase has been intercepting massive sulphides in hole OVD021, now confirmed by the assay results to have outstanding grades of Cu-Ni-PGE. This further confirms that the Oval magmatic sulphide system is a rich system capable of forming high- grade ore.

In addition to the high-grade massive, net textured, and disseminated sulphide intercepts in OVD021, other significant assay results from drill holes with disseminated mineralisation returned:

  • OVD013 – 33.4m4 @ 0.23% Cu, 0.22% Ni, 0.07g/t E3, 0.01% Co from 111m
  • OVD009A – 16.7m4 @ 0.17% Cu, 0.14% Ni, 0.11g/t E3, 0.01% Co from 200.5m
  • OVD021 – 92.35m4 @ 0.27% Cu, 0.30% Ni, 0.08g/t E3, 0.02% Co from 7m and – 31.2m4 @ 0.19% Cu, 0.20% Ni, 0.10g/t E3, 0.01% Co from 131.8m

Drill hole OVD021

The drill hole OVD021 was designed to target a 98m x 16m DHEM conductor and was drilled at an acute angle along the strike of the mineralised gabbro. The true width of the mineralisation is currently unknown and the mineralisation remains open in NE, SW, up dip and down dip directions. Further investigation of the massive sulphide is the primary objective of the Phase 2 drilling program and will be targeted based on the DHEM that was used to design the OVD021 drill hole and recently completed DHEM described below.

For a more detailed breakdown of the drilling results, please refer to Tables 1, 2 and Figure 5 (Appendix 2).

Drill hole OVD021 provides additional evidence (in addition to the DHEM plate shown in Figure 2) supporting the interpretation that the massive sulphide may be injected at a high angle relative to the Oval gabbro. The hole was drilled semi-parallel to the strike of the Oval mineralisation and intersected extended intervals of disseminated mineralisation, which aligns with expectations for a hole in this orientation. However, the massive sulphide was intercepted over a shorter distance, and no additional intercepts were encountered. This outcome is consistent with the hole not being drilled parallel to the massive sulphide body and not traversing in and out of the massive sulphide due to changes in contact geometry. Drill holes being planned for the next drilling phase will test this interpretation and provide information to establish true widths of the massive sulphide, which are currently unknown.

Click here for the full ASX Release

This post appeared first on investingnews.com

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Mixed Bag as Tech Giants Apple, Amazon and Intel Release Quarterly Results

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Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) released their latest quarterly results this week, revealing a mixed bag as competition in the artificial intelligence (AI) sector intensifies.

Read on for more details from their announcements and how investors reacted.

You can also click here for a look at the latest results from Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT).

Apple posts record revenue, loses ground in China

Apple reported record revenue of US$94.9 billion for its fourth fiscal quarter of 2024, marking a 6 percent year-on-year increase. However, the gain came alongside a sharp 36 percent drop in net income to US$14.74 billion, attributed largely to a one-time US$10.2 billion charge linked to a European tax decision.

The iPhone segment remains Apple’s biggest revenue contributor, with sales rising 6 percent to US$46.22 billion, bolstered by the launch of the iPhone 16 series. Apple’s Services division also achieved a quarterly revenue high of US$24.97 billion, driven by growth in the App Store, Apple Music and Apple TV+ subscriptions.

A key area of concern for Apple, however, is its relatively stagnant revenue in Greater China.

Quoting data from IDC, Reuters states that iPhone sales in China dipped 0.3 percent in the third quarter as rival Huawei posted a 42 percent surge in smartphone sales. Apple’s market share in China has slipped to 15.6 percent, allowing it to be overtaken by Huawei, which gained 4.2 percent year-on-year.

The competitive environment in China poses a critical risk for Apple, which has been proactive in diversifying its supply chain by increasing iPhone production in India and reducing lead times globally.

Cloud and ad segments dominate in Amazon’s results

Amazon announced Q3 net sales of US$158.9 billion, an 11 percent increase from last year, with net profit rising to US$15.3 billion. Sales were driven in large part by Amazon Web Services (AWS), which continues to attract businesses looking for AI-powered cloud solutions. It brought in US$27.5 billion, a year-on-year rise of 18 percent.

The competitive landscape for AWS, however, has never been tougher, as both Microsoft and Alphabet’s (NASDAQ:GOOGL) Google intensify their focus on AI investments and cloud infrastructure.

To match the competition, the company plans to scale AWS’ AI capabilities by building new data centers and computing capacity to meet increasing demand from enterprise customers.

Amazon’s advertising revenue also posted a 19 percent increase year-on-year, signifying the division’s growing role within the company’s broader business. In addition, the firm’s international segment posted an operating profit for the first time in over a year, pointing to a recovery in regions outside the US.

Intel beats estimates as restructuring efforts continue

Intel released its Q3 results as it continues a restructuring plan geared at improving performance.

Revenue for Intel’s data center and AI segment rose 9 percent to US$3.3 billion, outpacing analysts’ estimates, but the company posted a US$16.6 billion net loss due to restructuring and impairment charges.

Intel has been facing mounting pressure from NVIDIA (NASAQ:NVDA) and AMD (NASDAQ:AMD), which dominate the AI chip market in market share. While Intel’s traditional PC and server chip businesses have seen renewed demand, the company has largely missed out on the AI investment boom, which is dominated by NVIDIA’s GPUs.

Intel’s outlook for Q4 projects revenue of between US$13.3 billion and US$14.3 billion, and the company has set ambitious targets to increase its capital expenditures for AI hardware in 2025.

However, Intel’s gross margin for the quarter fell short of expectations at 18 percent, indicating that the company has significant ground to cover in cost management and profit recovery.

Despite these challenges, Intel’s longstanding relationships with PC manufacturers and its ongoing investment in foundry services offer the potential to expand its revenue streams.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Top 5 Canadian Mining Stocks This Week: Sabre Gold Surges on Minera Alamos Acquisition

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The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 2.87 percent on the week to close at 603.95 on Friday (November 1). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) was down 0.82 percent to 24,255.16.

Statistics Canada released its August GDP figures on Thursday (October 31). The data indicated GDP remained flat following a 0.1 percent increase in July. Headline data suggests finance, insurance and public administration sectors were up 0.1 percent while goods-producing sectors fell by 0.4 percent to their lowest since December 2021.

On a more granular level, the resource sector saw a 0.6 percent gain in August, led by 1.5 percent increase in oil and gas. Meanwhile, mining and quarrying posted a 0.7 percent increase, marking a fifth month in a row of gains. Iron ore mining increased 4.7 percent, while there was a 2.8 percent increase in copper, nickel, lead and zinc mining.

South of the border, three key releases this week painted a mixed picture of the US economy before a divisive presidential election on November 5, and the US Federal Open Market Committee’s meeting on November 6 and 7.

First, on Wednesday (October 30), the US Bureau of Economic Analysis (BEA) released advanced GDP estimates for Q3. The data shows the pace of economic growth in the US may be slowing, posting a 2.8 percent increase, down from the 3.0 registered in the second quarter of the year. The numbers fell short of analysts’ expectations of 3.1 percent.

This was followed by the BEA’s release of September’s personal consumption expenditures price index data on Thursday. The index is the favored indicator of inflation by the US Federal Reserve in making its rate policy decisions. Data for the month showed a 0.2 percent month-on-month increase and was in line with analysts’ expectations. On a yearly basis the data indicated 2.1 percent growth to inflation, down from 2.6 percent just six months ago.

Lastly, the US Bureau of Labor Statistics released its October employment situation summary on Friday. The data indicates nonfarm payrolls remained virtually unchanged, with just 12,000 jobs added during the month — that’s well short of the 110,000 expected by analysts. Unemployment remained at 4.1 percent, with 7 million people unemployed.

The agency notes that while disappointing, the lower figures are likely temporary as it’s the first labor force survey conducted since the dual impacts of hurricanes Helene and Milton. The bureau also said the collection period for October was toward the shorter end of the usual 10 to 16 days and likely had a larger influence on its data.

Gold continued to set new highs, climbing to US$2,787.04 per ounce on Wednesday before falling to US$2,733.88 on Friday at 4:00 p.m. EDT. Silver also remained elevated, trading as high as US$34.41 per ounce on Wednesday before regressing to US$32.44 on Friday. Copper was largely flat, closing at US$4.39 per pound on the COMEX.

More broadly, the S&P GSCI (INDEXSP:SPGSCI) fell 1.27 percent to close at 534.79.

Markets were in decline this week, with the S&P 500 (INDEXSP:INX) shedding 1.8 percent to finish at 5,728.81, and the Nasdaq-100 (INDEXNASDAQ:NDX) declining 2.06 percent to close Friday at 20,033.14. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.5 percent to reach 42,052.18.

Find out how the five best-performing Canadian mining stocks performed against that backdrop.

1. Wolfden Resources (TSXV:WLF)

Company Profile

Weekly gain: 166.67 percent
Market cap: C$14.83
Share price: C$0.08

Explorer and developer Wolfden Resources is focused on base and precious metals projects in North America.

Up until February of this year, the company was working to advance its Pickett Mountain property in Maine, US. The site hosts a high-grade polymetallic massive sulfide deposit and sits within the Gander Terrane.

However, the company announced on February 15 that its rezoning application for the property was denied by commissioners for the Maine Land Use Planning Commission, despite evidence that weighed in favor of the approval.

While the company has not provided an update on Pickett Mountain, it said on Tuesday (October 29) that it has entered into an option agreement to earn a 75 percent stake in the Rockland Property in the Walker Lane Trend in Nevada, US.

The terms of Wolfden’s agreement with Evergold (TSXV:EVER,OTC Pink:EVGUF) state that to earn an initial 51 percent interest it must complete US$1.18 million in exploration expenditures, including a minimum of 1,500 meters of drilling, and make cash payments totaling US$600,000 over three years by March 2028.

Wolfden can boost its stake to 75 percent by completing a prefeasibility study within five to eight years. It also holds first rights of refusal on the final 25 percent interest and royalties that can be purchased.

The 1,054 hectare property hosts a large epithermal gold-silver system with similar characteristics to Hecla Mining’s (NYSE:HL) neighboring Aurora project and has drill permits in place. The company said through due diligence it retrieved four rock and core assay reject samples containing between 1 gram per metric ton (g/t) gold and 10.4 g/t gold.

2. Argenta Silver (TSXV:AGAG)

Weekly gain: 151.61 percent
Market cap: C$62.572
Share price: C$0.39

Formerly Butte Energy, Argenta announced on October 24 that it was changing its name, and would commence trading under the new symbol AGAG. The change comes after the completion of its acquisition of the El Quevar silver project following the takeover of Silex Argentina for total consideration of US$3.5 million.

The 56,709 hectare site hosts the Yaxtche deposit, which holds an indicated resource of 45.3 million ounces of silver with an average grade of 482 g/t from 2.93 million metric tons of ore. Yaxtche also has an inferred resource of 4.1 million ounces of silver with an average grade of 417 g/t from 310,000 metric tons of ore.

The project has seen more than 100,000 meters of historic drilling and comes with permitting in place. The company says the site is home to a 100 worker camp, with power and transportation already in place.

Additionally, the company announced the appointment of Joaquin Marias as vice president of exploration and development. Marias is a geologist and has been active at El Quevar for more than 10 years.

In the announcement, Argenta also said it had completed a non-brokered private placement for gross proceeds of C$15.27 million, as well as an additional C$925,000 in the form of unsecured, non-interest bearing one year term loans.

3. Sabre Gold Mines (TSX:SGLD)

Company Profile

Weekly gain: 76 percent
Market cap: C$18.32
Share price: C$0.22

Sabre Gold Mines is working to advance its Copperstone gold project located in Western Arizona, US. The site consists of 546 unpatented federal mining claims and two state mineral leases across a total area of 13.8 square miles.

According to the company, historic mining at the property between 1987 and 1993 produced 514,000 ounces of gold from 5.6 million metric tons of ore with grades of 2.8 g/t. Further operations between 2012 and 2013 produced an additional 16,900 ounces of gold from 163,000 metric tons of ore with grades of 3.2 g/t.

A resource estimate from February 2023 demonstrates 300,000 ounces of gold in the measured and indicated categories from 1.21 million metric tons of ore with an average grade of 7.74 g/t gold. Additional inferred values stand at 197,000 ounces of gold from 970,000 metric tons with a grade of 6.3 g/t gold.

An August 2023 preliminary economic assessment presents a base-case scenario with after-tax net present value of US$61.8 million, an internal rate of return of 50.5 percent and a payback period of 1.8 years.

Shares of Sabre surged this week after it announced on Monday (October 28) that it has entered into an agreement to be acquired by Minera Alamos (TSXV:MAI,OTCQX:MAIFF).

4. Compass Gold (TSXV:CVB)

Company Profile

Weekly gain: 77.27 percent
Market cap: C$17.83
Share price: C$0.195

Compass Gold is an exploration and development company working to advance its Sikasso property in Mali into a small-scale mining operation. The site consists of a 1,176 square kilometer land package, which the company says makes it the largest ground position in Southern Mali, and hosts four primary gold trends.

To date, the company has completed 44,206 meters of drilling, confirming bedrock mineralization and identifying four areas with open-pit mining potential: Tarabala, Massala West, Farabakoura and Samagouela.

Compass’ most recent news came on Monday, when it entered into a joint production agreement to process ore from the Massala prospect at Sikasso at the nearby small mining facility owned by Malian business group SMAT.

The company said it will allow Compass to advance near-term objectives and expedite near-surface gold production with minimal capital investment. The company still needs to apply for a small mining license from the Malian government; this will allow it to produce 160,000 ounces over a four year period. Funds generated from production will allow the company to repay debts and pursue opportunities to expand production at Sikasso.

5. East Africa Metals (TSXV:EAM)

Company Profile

Weekly gain: 31.03 percent
Market cap: C$35.01
Share price: C$0.19

East Africa Metals is a gold explorer and developer focused on its Adyabo and Harvest projects in Ethiopia’s Tigray region. Its principal asset is Adyabo, in which it holds a 30 percent net profit interest; Tibet Huayu Mining (SHA:601020) owns the remaining 70 percent. The 195.2 square kilometer site hosts two mining licenses, Mato Bula and Da Tambuk, that are located in an area known for high-grade gold and copper mineralization.

East Africa Metals also owns a 70 percent share of the Harvest polymetallic project, which hosts the Terakimti mining license, as well as a 30 percent streaming interest in the Magambazi gold mine in the Tanga region of Tanzania.

The company saw gains this week alongside a surging gold price, but did not release news.

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many companies are listed on the TSXV?

As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Data for this 5 Top Canadian Mining Stocks article was retrieved at 12:00 p.m. EDT on November 1, 2024, using TradingView’s stock screener. Only companies trading on the TSX and TSXVwith market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Investing

A Guide to Investing in Physical Gold (Updated 2024)

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Gold is known as an attractive safe-haven investment and has been used to store wealth during volatile times through history.

It has interesting currency-like tendencies, and retains its purchasing power better than paper currencies.

What physical gold product is best to buy?

Physical gold investors are generally looking for items that are 0.999 fine. Most gold bullion coins fit this description, including the Canada Gold Maple Leaf, the South African Krugerrand and the American Buffalo Gold coin. American Gold Eagles are popular with investors, but they are have a much lower purity at 91.67 percent.

An alternative to gold coins is gold rounds, which are also 0.999 fine but are not legal tender. This makes them slightly cheaper than gold coins, as the premium for gold coins is higher because of the credibility that comes from being fabricated by government mints.

Both gold coins and gold rounds come in various sizes, usually ranging from 1/10 ounce to 1 ounce, though other less common sizes are available.

Gold bars are another popular option. These also come in a variety of sizes, and as choices can range from a 1 gram bar to 400 ounce bar, this category of products can accommodate a range of investors. They are also 0.999 fine.

When the objective is to get the most metal for the least money, it’s generally best to shop for gold rounds and gold bars, which tend to be cheaper than gold coins of the same weight.

Another factor that may need to be considered is the amount to be invested. Bars may be the best option for large investments since bigger sizes are available. Further, it is often easier to manage large products than it is to manage an array of smaller gold items.

However, physical gold investors also need to give forethought to when they may want to sell their gold. Large products will require liquidating a more sizeable portion of one’s gold portfolio, and such products may be more difficult to sell in some instances. Individuals making ongoing or significant investments may want to consider purchasing gold in various weights.

What is the difference between the gold spot price and retail price?

Investing in physical gold is often oversimplified, and the misconceptions can begin with pricing.

A spot price by definition is the cost of immediate delivery, and is a way to gauge the legitimacy of an ask or retail price. The spot price is what is reported on and what most gold price charts will show. Unfortunately, some investors don’t realize until they make their first purchase that the spot price is not what one actually pays for physical gold.

The retail price of gold is based off the spot price but includes a markup, also called a premium. In addition to premiums, there are numerous other expenses investors should be prepared to pay when purchasing pure gold, including shipping, handling and insurance. In some instances, prices may be higher for individuals who choose to pay with a credit card.

There may also be processing fees to own the yellow metal or fees for small lot purchases. On the other hand, gold prices are sometimes lower for those purchasing larger quantities.

Where can investors buy physical gold?

Gold buying can be done through government mints, private mints, precious metals dealers and even jewelry stores. Some of these locations will offer numismatic coins or other gold items geared toward collecting and gift giving, which bullion investors should generally avoid. These products are for play in a different ball game and are not what the average gold investor needs.

When choosing where to buy gold, it is again best to give thought to reselling it. Some businesses that sell gold will also buy it back. Some will even buy gold that they didn’t sell, but may pay lower prices.

Furthermore, premiums and fees are not one size fits all when buying physical gold. Different sellers may offer the same items at different prices, so investors should take the time to find the best deal.

How and when to sell physical gold?

Just as buying gold often provides investors with a pricing wakeup call, investors who decide to sell are sometimes surprised at the prices they receive. That is because the buyback price, or bid, is lower than the asking price. The difference between the two is referred to as the spread, and it is a loss that the seller initially bears.

For example, if an investor pays US$2,500 for a 1 ounce Canadian Maple Leaf and decides to sell it back the same day, the buying price may only be US$2,419. The spot price is generally in the middle of the two.

Furthermore, there are usually other costs involved with selling gold, including shipping, insurance and liquidation fees. Some businesses have minimum purchase requirements, and depending upon payment arrangements, it may be necessary for the investor to pay bank wire fees or postage to receive a check.

Individuals who want to sell their gold quickly may consider “we buy gold” businesses as a convenient alternative. However, while these businesses can serve as a quick source of liquidity, they are usually not the best option, as their underlying business strategy often involves making lower-than-average offers, meaning you will receive less than you would at a bullion exchange or mint.

The reality is that, given the spread and the costs associated with acquiring and selling gold, a sharp price move is generally needed to turn a profit. Investors are encouraged to consider building positions in physical gold as a long-term investment, possibly even for retirement savings.

How should physical gold be stored?

Determining the best storage option involves weighing risks against costs.

Paying for secure storage eats into profits from the metal’s gains, so some people choose to store their gold at home or in their office. In theory, that is the riskiest option as it involves the highest potential for loss due to theft or disaster. But in many instances these risks are not substantial enough to justify the cost of other storage options. For home storage of smaller amounts of gold, mitigate theft risk by keeping it hidden somewhere that is less likely to be discovered. Of course, a sturdy home safe comes with an upfront cost and a footprint, but it can help protect valuables from theft and some disasters.

As mentioned, gold can also be stored in a depository or safe deposit box for a cost. If an investor chooses this route, there are a few things to consider. Rates can vary between banks, so price comparison is important. Additionally, the contents of safety deposit boxes in financial institutions are generally not insured. Last but not least, some banks do not technically permit the storage of bullion, so it’s important to make sure it’s possible before signing a terms and conditions agreement. The information should be listed in the agreement as well.

Is it possible to purchase physical gold through the futures market?

A gold futures contract is an agreement to buy or sell gold on a date in the future for a price that is determined when the contract is initiated. The futures market is often referred to as an arena for paper trading. Generally, the bulk of the activity is just that, as metal is not actually exchanged and settlements are made in cash.

However, the futures market can also be an arena for purchasing physical gold. That is not to suggest that it is the best source of metal for all investors as it may not increase one’s purchasing power. Obtaining gold through the futures market requires a large investment and involves a list of additional costs. The process can be complicated, cumbersome and lengthy, which is why this option is considered best for highly experienced market participants.

What are some alternatives to physical gold?

Purchasing metal is not the only way to gain exposure to physical gold. Indeed, the popularity of exchange-traded funds (ETFs) underscores how easily people can get into the gold market without actually owning physical gold.

Gold ETFs may track gold-focused stocks or they may track the yellow metal’s price. Investors looking for the closest analog to buying physical gold will likely want to focus on the latter. However, it’s important to be aware that ETFs that follow the gold price are generally not vehicles to acquire gold, even if they are physically backed.

One advantage of gold ETFs is that they can be easier to trade than physical gold. Some investors choose to hold a set amount of physical gold at all times and use ETFs to trade the metal’s ups and downs.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Editor's Pick

Too little, too late: How Valencia’s residents were trapped with no warning in Spain’s deadly floods

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Adan Ortell Mor had a 7:30 p.m. appointment to cut a client’s hair at his salon in La Torre, Valencia, on Tuesday night. But when the client called to cancel because traffic was bad, it may have saved Mor’s life. Instead, he went home and saw reports of cars floating in floodwaters in a town upriver.

No warning. No alerts. That came about an hour later on his mobile phone. A blaring alarm sent to all residents in Valencia, telling them of heavy rains and to stay at home. Far too late for the many people already trapped in rising floodwaters.

This is the worst natural disaster Valencia has seen in decades. A year’s worth of rain dumped in less than 8 hours, according to Spain’s meteorological agency. The water came rushing down the rivers and tributaries towards the Mediterranean Sea, picking up cars and destroying bridges along the way. More than 200 people have been killed, with authorities warning the death toll is likely to rise.

But it is not unprecedented. Valencia suffered a similar deadly flood in October 1957 caused by the same seasonal weather phenomenon known as a Gota Fria or a Cold Drop. That disaster killed dozens of people when the Turia burst its banks in the crowded neighborhoods of Valencia city. It was so deadly that the city spent millions to reroute the river years later.

So, how did Valencia get caught unawares again?

Spain’s AEMET weather center in Valencia warned of heavy rainfall at 7:30 a.m. on Tuesday, raising the alert level to red in some areas and warning residents to stay off the roads in case of floods.

By 10:30 a.m., firefighters in interior towns like Llombai were rescuing people from the floods. AEMET warned residents to be vigilant, even if there was little rainfall in their areas, as ravines and gullies were quickly filling with water streaming down from the mountains toward the sea.

At noon, Valencia’s regional president, Carlos Mazon, seemed to downplay the crisis by saying the storm was subsiding, contradicting the warnings of emergency services. The statement was posted by his office on X but has since been deleted.

By 5 p.m., Valencia’s emergency services were swamped by hundreds of pleas for help throughout the region.

It was at 8 p.m. that cell phones finally buzzed with the public alert telling residents to stay indoors. Much too little, much too late, even for those downstream of the raging water who might otherwise have had time to prepare.

Politicians are pointing fingers at each other for the failure to act quickly enough. In the end, however, it’s residents like 70-year-old Valentín Manzaneque Fernández who are suffering the consequences. He is furious.

He spent two nights sleeping outdoors on a neighbor’s roof terrace before deciding to slog through hours of mud and debris from his home in the suburb of Sedavi to get food and water in Valencia city.

The waters have receded, but recovering from the destruction will take weeks and months. Valencia’s highways remain blocked or only partially usable, many choked by washed-up vehicles. Train tracks are so badly damaged that service is not likely to resume for weeks, according to Adif, Spain’s rail authority.

His salon business, he says, is completely ruined. But he counts himself lucky. His parents survived the 1957 flood and he managed to get them to safety during this disaster.

“It’s just material stuff that got ruined. The main thing is, my family is safe. We will get through it, my family is all right,” he said. “All we can do now is get to work and clean up.”

This post appeared first on cnn.com

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