Archive

November 8, 2024

Browsing

The risk-on sentiment has returned to the stock market. Stocks traded significantly higher ahead of the open on Wednesday after former President Trump’s victory. With the uncertainty of the election results out of the way, investors were ready to pile back into equities. All broader US equity indexes saw strong upside movement, and the Cboe Volatility Index ($VIX) fell, closing at around 16 (see screenshot of the Market Overview Dashboard Panel below).

FIGURE 1. THE STOCKCHARTS MARKET OVERVIEW DASHBOARD PANEL. All equity indexes closed significantly higher, while the VIX dropped.Image source: StockCharts.com. For educational purposes.

The stock market had priced in a Trump victory, but investors were clearly waiting for the result before adding more positions, although we saw signs of a head start on Tuesday ahead of the results. The strong upside move was apparent during the trading day, and the indexes closed near their highs.

The biggest gainer was the S&P 600 Small Cap Index ($SML), which closed higher by 6.09%. Its big move is worth studying more closely, since it broke out of a trading range it has been in since mid-September (see daily chart below).

FIGURE 2: DAILY CHART OF THE S&P 600 SMALL CAP INDEX. The index broke through its trading range and gapped up. Market breadth is also positive.Chart source: StockCharts.com. For educational purposes.

The percentage of S&P 600 stocks trading above their 50-day moving average is at a healthy 78%, and the advances vs. declines also show increasing market breadth.

What’s behind the move in small-cap stocks? A boost in financial stocks. Financial stocks comprise a large fraction of $SML, and, with the possibility of deregulation and tax cuts on the horizon, the small-cap index spiked. 

Financials Sector Leads

Financials were the leading sector in Wednesday’s trading. The StockCharts MarketCarpets of the Financials sector clearly show that many banks saw strong gains.

FIGURE 3. BANKS SAW LARGE PERCENTAGE INCREASES IN THEIR STOCK PRICE.Image source: StockCharts.com. For educational purposes.

This is clear in the chart of the KBW Bank Index ($BKX). Its performance relative to the S&P 500 ($SPX) jumped to 25.8%.

FIGURE 4. BANK STOCKS RISE. Wednesday’s massive surge is worth monitoring, as it could benefit bank stocks. Chart source: StockCharts.com. For educational purposes.

It may be worth considering adding bank stocks to your portfolio, especially when they pull back and until interest rates rise.

Crypto, US Dollar, Yields Rally

Cryptocurrencies are also rallying. $BTCUSD has broken out of its consolidation pattern with momentum (see weekly chart below).

FIGURE 5. BITCOIN SOARS. Bitcoin to US Dollar broke out of its consolidation pattern and the MACD shows rising momentum.Chart source: StockCharts.com. For educational purposes.

The moving average convergence/divergence (MACD) indicates bullish momentum as the MACD line crosses above the signal line.

The US dollar and Treasury yields spiked after Trump’s victory. This move could be in anticipation of an inflationary environment ahead. If inflation rises, the Fed may have to pivot and raise rates. We’ll probably not hear anything about that in Jerome Powell’s presser on Thursday. Still, it’ll be one to listen to, especially for clues of what could be in store for December. If bond prices continue to fall (bond prices move opposite to yields), expect a tapering in interest rate cuts by the Fed.


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.

Lithium Universe Limited (referred to as ‘Lithium Universe’ or the ‘Company,’ ASX: ‘LU7”) is pleased to announce that further to its announcement dated 31 October 2024 (ASX:LU7 LU7 Completes Share Placement and Launches Entitlement Offer) (Announcement), it has now settled the first tranche of its share placement to sophisticated and professional investors (Tranche 1).

Highlights

  • Successful settlement of Tranche 1 of the share placement to sophisticated and professional investors, raising $1.94 million
  • Entitlement Offer to open to shareholders on 11 November 2024
  • Tranche 2 of the Placement (subject to shareholder approval) is anticipated to be completed on or around 9 December 2024, raising $0.20 million

Tranche 1 under the Company’s Placement comprised of 161,791,667 fully paid ordinary shares (Shares), which have been issued today under the Company’s existing capacities under Listing Rules 7.1 (15% capacity) and 7.1A (10% capacity). The Shares were issued at a price of A$0.012 per share, raising A$1,941,500. In addition, subject to shareholder approval, the Tranche 1 investors will be entitled to one new option for every share subscribed to, with an expiry date of 12 January 2026 and an exercise price of $0.03 (Options).

As detailed within the Announcement, the Company advised that it would be conducting an additional placement to sophisticated and professional investors, which will be subject to shareholder approval (Tranche 2), as well as a pro-rata 1 for 10 non-renounceable entitlement offer (Entitlement Offer). Investors under the Tranche 2 placement and Entitlement Offer will also receive options on the same term as the Tranche 1 investors.

Tranche 2 Placement

The Tranche 2 placement comprises of 16,666,667 shares, with the issue of such shares being subject to shareholder approval. The Company will seek shareholder approval at an upcoming general meeting, which is scheduled to be held on or around Monday, 9 December 2024.

Entitlement Offer

The Entitlement Offer will open on Monday, 11 November 2024 and has been made under a transaction-specific prospectus that was lodged with ASIC and ASX on 1 November 2024.

Click here for the full ASX Release

This post appeared first on investingnews.com

Hot on the heels of Donald Trump’s victory in the US presidential election was an important meeting of the US Federal Reserve’s Federal Open Markets Committee (FOMC) on November 6 and 7.

At the meeting, the committee decided to lower the benchmark rate by 25 basis points to 4.5 to 4.75 percent. This marks the second cut by the FOMC, which made an outsized 50 point cut at its last meeting in September.

The rate cuts have come as inflation has cooled towards the 2 percent target set by the Fed when it first began raising interest rates in February 2022. While the personal consumption expenditure index for September had fallen to an overall 2.1 percent increase year-over-year, the committee was still concerned about some stickiness, as the PCE less food and energy prices was up 2.7 percent.

A key factor influencing the Federal Reserve’s decision is the current state of the jobs market, which has stabilized significantly. Labor market conditions are now less constrained than they were before the pandemic in 2019, reducing its contribution to inflationary pressures. As a result, the central bank has been able to shift its focus within its dual mandate of promoting maximum employment and maintaining stable prices.

In his statement following the decision, Federal Reserve Chairman Jerome Powell suggested that while he thinks the economy and policy are in a very good position, there is still some uncertainty. He said the data would inform future rate decisions, and the FOMC would react appropriately.

“We know that reducing policy restraint too quickly could hinder progress on inflation. At the same time, reducing policy restraint too slowly could unduly weaken economic activity and employment,” Powell said. “We are not on any preset course. We will continue to make our decisions meeting by meeting.”

The election results bore little influence over the decision at the November meeting. When asked how election results may affect future rate decisions, Chairman Powell suggested there would be no influence in the short term.

“We don’t know what the timing and substance of any policy changes will be,” he said. “We therefore don’t know what the effects on the economy would be, specifically whether and to what extent those policies would matter for the achievement of our goal variables of maximum employment and stable prices.”

While commenting on the longer-term implications of a Trump presidency, Powell was neutral in his remarks, saying any government could implement policies that could have economic effects that would matter over time. Powell said the Fed would take those factors into account in future modelling.

When asked if he was concerned that Trump’s incoming administration would ask him to step down as Chairman of the Federal Reserve, Powell answered “no.” He also said he would not step down before his term ends in 2026. Even though the President is responsible for appointing the Chairman of the central bank, terms are fixed at four years and cannot be overridden.

Market reaction to the rate cut decision boosted gold, which climbed by 1.84 percent since markets opened to US$2,707.93 by 3:30 PM EST, while silver surged 3.12 percent to US$32.12.

Equity markets saw slight gains as of that time, with the S&P 500 (INDEXSP:INX) gaining 0.84 percent to 5,978.81, the Nasdaq 100 (INDEXNASDAQ:NDX) adding 1.66 percent to 21,123.64 and the Dow Jones Industrial Average (INDEXDJX:.DJI) increasing 0.15 percent to reach 43,793.06.

How Trump’s policy promises could affect inflation

While Powell did not address Trump’s proposed policies in his statement, if president elect Donald Trump does enact some of the policies he promised frequently in his campaign, it may increase deficit spending and cause further inflation, which could influence future interest rate decisions.

For example, his proposed changes would see tariffs applied broadly to goods entering the United States, which will make everyday goods more costly for Americans. This is because tariffs are paid by importers in the US when they purchase goods from overseas, and the cost increases are passed along to the consumers.

Likewise, sweeping border reform with the promise to deport 20 million undocumented migrants would cost US$88 billion a year to enforce. The impact would be felt by business owners who are already struggling to fill job openings, especially in the agricultural sector. This will likely lead to higher costs at the grocery store or reduced availability of produce.

Additionally, the loss of undocumented workers would see US$100 billion per year in lost tax revenue, requiring the government to increase deficits to pay for government programs.

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

This post appeared first on investingnews.com

Battery metal cobalt has been in focus in recent years for its role in lithium-ion batteries, bringing attention to the top cobalt producing countries.

One of the metal’s main catalysts is the electric vehicle roll out. The lithium-ion batteries that power electric vehicles and energy storage require lithium, graphite and cobalt, among other raw materials, and demand for these important commodities is expected to keep rising as the shift toward clean technologies continues at a global scale.

Additionally, the metal is predominantly produced as a by-product of copper and nickel, two other metals that are important for the green transition.

However, supply growth in many of the battery metals has out scaled near-term demand, leading to a price pullback over the last two years. The cobalt market has trended downwards in 2024, with prices falling 10 percent from July to September.

As Roman Aubry, cobalt pricing analyst at Benchmark Mineral Intelligence, pointed out, Q3 cobalt values across all grades tracked by Benchmark Mineral Intelligence hit record lows unseen since 2017. The retraction was driven by prolonged weak demand and mounting surplus supply.

Investors interested in the sector should learn the top cobalt producers by country. According to the US Geological Survey, world production has increased significantly over the past two years. In 2023 total cobalt output topped 230,000 metric tons (MT), a large increase from 2022’s 190,000 MT, and a big jump from 2021’s 165,000 MT.

Read on for a closer look at cobalt supply and which countries lead in production.

1. Democratic Republic of Congo

Mine production: 170,000 metric tons

The Democratic Republic of Congo (DRC) is by far the world’s largest producer of cobalt, with 170,000 metric tons of production in 2023, accounting for roughly 73 percent of global production. The country has been the top producer of the metal for some time, and is likely to remain crucial to the cobalt market for the foreseeable future.

However, cobalt mining in the DRC is associated with rampant human rights abuses and child labor, due in part to the large presence of unregulated artisanal mining. Attempts have been made to regulate the DRC’s artisanal mining sector. But with hundreds of thousands of people relying on artisanal mining for income, eliminating it completely isn’t possible.

Efforts to date include the creation of a new state company, Entreprise Générale du Cobalt, to buy and market all artisanal cobalt mined in the DRC; it was set up in 2019 and struggled to make progress. However, in February 2024, it signed an agreement with state miner Gecamines for exclusive mining rights to five mining areas.

Aside from that, the Responsible Minerals Initiative, in cooperation with the Global Battery Alliance, has drafted a framework for a regulated artisanal mining sector. The DRC’s mines minister formally approved the ASM Cobalt Standard in 2022, and plans for assessing its effectiveness at pilot sites are being developed.

Outside the DRC’s artisanal mining sphere, cobalt is largely produced as a by-product of copper mines, including the Tenke Fungurume mine, owned by the CMOC Group (OTC Pink:CMCLF,HKEX:3993); Metalkol RTR, owned by Eurasian Resources Group and the KOV; and the Mutanda and Mashamba East mines, owned by Glencore (LSE:GLEN,OTC Pink:GLCNF). While the CMOC Group has ramped up cobalt production at Tenke Fungurume, Glencore has dialed back its production.

2. Indonesia

Mine production: 17,000 metric tons

Indonesia has ramped up production to become the second largest producer of the EV metal, with 17,000 metric tons of cobalt in 2023 compared to only 2,700 MT of cobalt in 2021. This rapid change was the result of an increase in investment in Indonesia’s battery metals supply chain, predominantly from Chinese companies, which moved in after Indonesia banned nickel ore exports in 2019. The country’s higher cobalt production has come from four new high-pressure acid leaching (HPAL) facilities that process ore to produce both nickel and cobalt in mixed hydroxide precipitate, which can then be exported.

The first two HPAL operations came online in 2021 as part of the existing Indonesia Morowali Industrial Park. The facilities were developed by QMB New Materials, a joint venture between Tsingshan Holding Group, GEM (SZSE:002340), CATL (SZSE:300750) and Hanwa (TSE:8078). As of late 2023, two others are also operating in the country — one run by Huayue, owned by Tsingshan and CMOC Group, and one run by Halmahera Persada Lygend, owned by Lygend Resources (HKEX:2245) and Trimegah Bangun Persada (IDX:NCKL).

In mid-2024, partners Eramet (EPA:ERA) and chemical producer BASF (OTCQX:BFFAF,FWB:BASF) decided against executing the planned US$2.6 billion Sonic Bay nickel-cobalt hydrometallurgical complex due to nickel market dynamics, including low prices and oversupply. Sonic Bay would have processed ore from the Weda Bay nickel mine to produce 7,500 MT of cobalt and 67,000 MT of nickel per year.

According to a market report released in May 2023 from the Cobalt Institute, Indonesia has the potential to increase its cobalt output 10 fold by 2030. In the same vein, data from Benchmark Mineral Intelligence indicates that Indonesia’s 2030 cobalt output will make up 20 percent of global production compared to 1 percent in 2021 and 5 percent in 2022.

While the market has been searching for an alternative to the DRC for its cobalt, both Indonesia’s nickel industry and this rapid build out come with their own environmental concerns.

3. Russia

Mine production: 8,800 metric tons

After rising in 2022, Russia’s cobalt production declined in 2023, falling from 9,200 metric tons to 8,800 metric tons. While the country’s cobalt reserves stand at 250,000 MT, Russia is still well behind the DRC in terms of production. Large Russian miner Norilsk Nickel produces cobalt and is among the world’s top five producers of the mineral.

With concerns about DRC cobalt running high, some automakers have been calling for increased electric vehicle battery production in Europe. There was hope that this push could boost Russia’s future cobalt production — however, that may now be out of the question while the country wages war against Ukraine.

In April 2022, the US hit Russian cobalt with a 45 percent duty that was set to expire on January 1, 2024. The sanctions on Russian and Belarusian cobalt were extended in June 2024, and in September the US imposed a 25 percent tariff on Chinese cobalt.

4. Australia

Mine production: 4,600 metric tons

As the DRC becomes increasingly challenging for miners and as investors try to divert their interests away from Africa, Australia is another country that’s receiving more attention — the island nation’s cobalt reserves are the second largest in the world at 1,700,000 MT.

Despite holding a large amount in reserves, Australian cobalt production contracted year-over-year from 2022 to 2023. After output spiked to 5,900 metric tons in 2022, cobalt production declined to 4,600 metric tons in 2023.

As is the case for many other countries on this list, cobalt is produced in Australia as a by-product of copper and nickel mining. The country’s nickel mines are located in the western part of the country, mostly around the Kalgoorlie and Leonora regions.

Additionally, the Australian government has been sending geologists to search for cobalt in mine waste, an effort that bore fruit when Queensland geologist Anita Parbhakar-Fox tested a copper mine waste sample that graded 7,000 parts per million cobalt.

The CEO of Australian company Cobalt Blue Holdings (ASX:COB,OTC Pink:CBBHF) described the discovery as a game changer to the Financial Times, estimating there could be up to 300,000 MT of cobalt in Australian mine waste.

Another important cobalt project in the country under Cobalt Blue is the Broken Hill project, which will allow for cobalt production on-site, rather than extracted as a by-product of nickel.

Broken Hill is planned to begin production in 2026, and is anticipated to have an output of around 4,000 metric tons of cobalt annually over a 20 year mine lifespan.

5. Madagascar

Mine production: 4,000 metric tons

Madagascar’s cobalt-mining industry produced 4,000 metric tons in 2023, up significantly from the 3,500 MT in 2022rebounded through 2021, putting out 3,500 MT in 2022, and 4,000 MT in 2023.

Much of the country’s cobalt production comes from the Ambatovy nickel-cobalt mine, owned through a joint venture by Japanese company Sumitomo (TSE:8053) and a Korean state-owned entity. The mine has faced production and profitability issues.

In August 2024, the companies submitted a debt restructuring plan to a London court. According to media reports, Sumitomo, the project’s major shareholder, has accumulated 410 billion yen in losses stemming from the project, including a 265.5 billion yen total impairment loss.

Most recently, in October, a pipeline moving ore from the mine to a processing and refining plant had to be shut down due to damage. While production began slowly ramping up at the end of the month, Ambatovy’s future remains uncertain.

6. Philippines

Mine production: 3,800 metric tons

The Philippines is the sixth largest cobalt producer in the world. The country’s cobalt production has remained steady over the last two years, coming in at 3,800 metric tons. The Asian country is also a top nickel producer.

The fate of mining in the Philippines was up in the air for a while as former President Rodrigo Duterte and former Environment Secretary Roy Cimatu called for a shutdown of all mines in the country based on environmental concerns. However, Duterte seemed to have a change of heart in early 2021, lifting a ban on new mine permits in an effort to boost revenues.

His successor, President Bongbong Marcos, has ordered the country’s Department of Environment and Natural Resources to enforce stricter guidelines and safety protocols on both small- and large-scale mines. He hopes to bring illegal mining operations into compliance so they can operate legally and with safer conditions for employees.

7. Cuba

Mine production: 3,200 metric tons

Cuban cobalt production fell in 2023 to 3,200 metric tons, down from 3,700 MT in the year prior.

The country’s Moa region is home to the Moa joint venture nickel-cobalt operation held by Canadian firm Sherritt International (TSX:S,OTC Pink:SHERF) and the General Nickel Company of Cuba.

Moa uses an open-pit mining system to produce lateritic ore, which is processed into mixed sulfides containing nickel and cobalt using HPAL. The country’s state-owned nickel miner is the sole operator of the Che Guevara processing plant at Moa.

8. New Caledonia

Mine production: 3,000 metric tons

New Caledonia, a French overseas territory in the Pacific Ocean east of Australia, is known for its mineral industry, primarily focused on nickel and cobalt mining. According to a 2019 USGS Mineral Yearbook report, nickel mining contributes roughly 7 percent of the country’s annual GDP.

Although cobalt production in New Caledonia has increased year-over-year, climbing from 2,000 MT in 2022 to 3,000 metric tons in 2023, the island nation’s primary cobalt producing mine has been embroiled in controversy.

The Goro nickel and cobalt mine, which was brought into operation by Vale (NYSE:VALE), has been impacted by weak nickel prices and electoral reform unrest. In 2020, Vale opted to sell the project as part of a broader company restructuring. The following year, Goro was acquired by Prony Resources New Caledonia consortium, a joint venture owned by New Caledonian entities and international commodities trader Trafigura.

Earlier in 2024, the mine was again making headlines when Trafigura Group declined to provide additional funding for Prony Resources Nouvelle-Calédonie, as part of a French government rescue plan for New Caledonia’s struggling mining sector.

9. Papua New Guinea

Mine production: 2,900 metric tons

Papua New Guinea has made the list of top cobalt producers by country for the sixth year in a row. In 2023, the small country off the coast of Australia produced 2,900 MT of cobalt as a by-product of nickel production, staying nearly flat with the previous year’s output of 3,000 MT.

The country’s main cobalt producer is the Ramu nickel mine near Madang, a joint venture between private company MCC Ramu NiCo, Nickel 28 Capital (TSXV:NKL,OTC Pink:CONXF) and the Papua New Guinea government.

A mid-October report from Benchmark noted that by 2030, Chinese companies are expected to control 85 percent of cobalt output from Papua New Guinea, enhancing China’s global share of mined cobalt supply to 46 percent.

10. Turkey

Mine production: 2,800 metric tons

Taking the tenth spot on the list is Turkey, which has seen its annual cobalt output rise from 2,100 MT in 2022 to 2,800 metric tons in 2023. The nation also boasts large reserves totaling 91,000 MT.

A 2021 report from the British Geological Survey, underscored the importance of Turkey’s cobalt potential amid the energy transition, noting “the greatest cobalt resource potential lies in laterite deposits in the Balkans and Turkey and in magmatic and black shale-hosted deposits in Fennoscandia.”

It went on to point out that in the Balkans and Turkey, 27 nickel laterite deposits are known to contain cobalt in significant quantities, with several deposits holding over 10,000 MT of cobalt metal. Currently, only nickel is extracted from these deposits, but advancements in processing technologies like high-pressure acid leaching may allow for cobalt recovery in the future.

In September 2024, the planned expansion of the Meta nickel-cobalt mine in Gördes sparked local resistance. Community members raised concerns that the project was destroying forests, draining water and harming agriculture. The mine is one of only a few nickel mines in Europe, making it important to the EU’s ability to meet European demand for electric vehicle battery materials.

FAQs for cobalt production

What is the most common source of cobalt?

As cobalt is only found in a chemically combined form, it must be separated from mined ore. Most commonly, cobalt is produced as a by-product at copper or nickel mines. According to Benchmark Minerals, currently three-quarters of cobalt is produced from copper-primary mines and 25 percent is produced from nickel-primary mines. The agency forecasts that by 2030, cobalt production from copper-primary mines will fall to 57 percent, while that from nickel-primary mines will rise to 41 percent.

How rare is cobalt on Earth?

Cobalt is the 32nd most common element on Earth, according to the Cobalt Institute, meaning it isn’t particularly rare. However, only a handful of countries have cobalt reserves over 300,000 MT, with the DRC coming in first place at 4 million MT, Australia in second at 1.5 million MT and Indonesia coming in third place with 600,000 MT. In fact, the DRC has higher cobalt reserves than the rest of the world combined.

How many years of cobalt are left?

How long it will take to deplete cobalt reserves and resources depends on the approach and speed with which electrification and a fully renewable society is approached, according to a 2019 study. Another factor is whether or not lithium-ion battery formulas that require cobalt will continue to be the norm in the future. If widespread cobalt substitution does take place, that will ease demand pressures on the metal.

Why is cobalt so valuable?

Cobalt has risen in recent years due to supply chain difficulties and the metal’s necessity in many lithium-ion battery cathodes, with prices peaking in March and April 2022 at over US$80,000 per MT. However, prices have fallen since then, and sat around the US$33,000 mark as of November 2023. The EV story has led to increased cobalt supply, meaning that there will be short-term price pressures due to oversupply as demand continues to rise in the coming years.

What is the problem with cobalt mining?

Most cobalt production takes place in the DRC, which is known for artisanal mining. Artisanal miners are adults and children who are not employed by mining companies, but mine independently using their own tools or just their hands.

A 2023 ABC news report on the country’s artisanal mining industry estimates that 200,000 artisanal miners are working on cobalt deposits; unfortunately, a lack of oversight and safety measures means injuries and death are more frequent than in regulated mining. While organizations are working to keep the supply chain transparent, it is hard to fully avoid cobalt that is sourced through child labor and human rights abuses.

Other countries are not exempt from concerns related to mining cobalt — Indonesia’s burgeoning cobalt production comes with the vast environmental concerns that plague the nation’s nickel industry.

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

This post appeared first on investingnews.com

Melbourne, Australia (ABN Newswire) – Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce that further to its announcement dated 31 October 2024 (LU7 Completes Share Placement and Launches Entitlement Offer) (Announcement), it has now settled the first tranche of its share placement to sophisticated and professional investors (Tranche 1).

Highlights

– Successful settlement of Tranche 1 of the share placement to sophisticated and professional investors, raising $1.94 million

– Entitlement Offer to open to shareholders on 11 November 2024

– Tranche 2 of the Placement (subject to shareholder approval) is anticipated to be completed on or around 9 December 2024, raising $0.20 million

– Funds will be predominately used to further progress the Definitive Feasibility Study and the payment of the Becancour land option costs

Tranche 1 under the Company’s Placement comprised of 161,791,667 fully paid ordinary shares (Shares), which have been issued today under the Company’s existing capacities under Listing Rules 7.1 (15% capacity) and 7.1A (10% capacity). The Shares were issued at a price of A$0.012 per share, raising A$1,941,500. In addition, subject to shareholder approval, the Tranche 1 investors will be entitled to one new option for every share subscribed to, with an expiry date of 12 January 2026 and an exercise price of $0.03 (Options).

As detailed within the Announcement, the Company advised that it would be conducting an additional placement to sophisticated and professional investors, which will be subject to shareholder approval (Tranche 2), as well as a pro-rata 1 for 10 non-renounceable entitlement offer (Entitlement Offer). Investors under the Tranche 2 placement and Entitlement Offer will also receive options on the same term as the Tranche 1 investors.

Tranche 2 Placement

The Tranche 2 placement comprises of 16,666,667 shares, with the issue of such shares being subject to shareholder approval. The Company will seek shareholder approval at an upcoming general meeting, which is scheduled to be held on or around Monday, 9 December 2024.

Entitlement Offer

The Entitlement Offer will open on Monday, 11 November 2024 and has been made under a transaction-specific prospectus that was lodged with ASIC and ASX on 1 November 2024.

About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe’s mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.

Source:
Lithium Universe Ltd

Contact:
Alex Hanly
Chief Executive Officer
Lithium Universe Limited
Tel: +61 448 418 725
Email: info@lithiumuniverse.com

Iggy Tan
Chairman
Lithium Universe Limited
Email: info@lithiumuniverse.com

News Provided by ABN Newswire via QuoteMedia

This post appeared first on investingnews.com

Kinross Gold (TSX:K,NYSE:KGC) reported its Q3 results on Tuesday (November 5), highlighting record free cashflow supported by debt reduction and key developments at its operatios.

The miner outlined quarterly production of 564,106 gold equivalent ounces, a year-on-year decline of 4 percent. According to the company, the decrease was largely due to planned lower output at certain mines.

The average realized gold price recorded by Kinross in Q3 was US$2,477 per ounce, up substantially from US$1,929 in Q3 2023. Notably, the firm’s margins rose to US$1,501 per gold equivalent ounce sold.

Operating cashflow came to US$733.5 million, while attributable free cashflow reached a record of US$414.6 million. On a year-to-date basis, Kinross’ attributable free cashflow stands at US$905.8 million.

Net earnings more than tripled to come in at US$355.3 million, or US$0.29 per share.

In a press release, Kinross CEO J. Paul Rollinson emphasized that because of the company’s operational and financial resilience, it remains on track to meet its annual production and cost guidance.

“We remain heavily focused on consistent operational performance, cost control, capital discipline and delivering on planned grades to generate value for our shareholders,” he added.

Additionally, Rollinson highlighted the company’s strengthened balance sheet through a significant reduction in its outstanding term loan balance, with US$650 million repaid on the US$1 billion loan in 2024.

Kinross highlights Q3 operational success

Kinross’ third quarter operational highlights include strong performances at several mines.

Tasiast, a mine located in Central-Western Mauritania, achieved high throughput rates and remains one of the company’s lowest-cost assets despite higher royalty costs due to the elevated gold price.

Meanwhile, Fort Knox in Alaska benefited from the start of production at the Manh Choh project, resulting in record grade and recovery levels, which significantly boosted cashflow. At the Paracatu mine in Brazil, production rose due to higher grades, though year-on-year output was lower due to mine sequencing.

The company also said it made substantial progress on its exploration and development initiatives, releasing a preliminary economic assessment (PEA) for the Great Bear project in September.

The PEA projects annual production of over 500,000 ounces with all-in sustaining costs around US$800 per ounce for the first eight years, supporting Kinross’ expectations of a high-margin, top-tier operation.

Exploration drilling at Round Mountain and Curlew is ongoing, with promising grades and widths reported, while the closure plan for Kinross’ advanced exploration program at Great Bear is under review by the Ontario Ministry of Mines, with early works construction expected to begin in the near term.

Kinross notes that as part of its dividend program, it has declared a dividend of US$0.03 per common share payable on December 12, 2024, to shareholders of record as of November 28, 2024.

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

This post appeared first on investingnews.com

Three people have been charged in Argentina for crimes related to the death of Liam Payne, a former member of the boyband One Direction, according to the public prosecutor’s office.

A hotel employee and a suspected drug dealer are among the three individuals charged for the crimes of “abandonment of a person before a death, supply and facilitation of narcotics,” Argentina’s National Criminal and Correctional Prosecutor’s Office also said Thursday.

The British pop star, who was 31, died on October 16 after falling from the third floor of a hotel in Buenos Aires, Argentina. The late singer had alcohol, cocaine, and a prescription antidepressant in his system before his death, according to the prosecutor’s statement.

Toxicology analysis indicated that Payne “may have fallen into a state of semi or total unconsciousness,” it said.

The prosecutor’s office also said medical examinations confirmed that the singer’s injuries were “compatible with those caused by falling from a height.” Examinations ruled out self-inflicted injuries or the intervention of other people, the office added.

Who is being investigated?

Investigators are launching investigations into the three individuals after gathering and reviewing evidence, which included over 800 hours of video, the office added.

The first individual is someone whom authorities believe spent time with Payne “on a daily basis” during his visit to Buenos Aires. The suspect is being charged for “abandonment of a person before a death and the supply and facilitation of narcotics.”

The second suspect is a hotel employee who “must answer” for allegedly supplying cocaine to the singer on “two occasions” during Payne’s stay at the CasaSur Palermo Hotel, the statement read. The third person is someone believed by authorities to be a “narcotics supplier” and is suspected of providing drugs to the artist on October 14.

It is unclear if any of the three suspects are currently detained.

Payne’s cell phone also underwent a “forensic extraction,” and authorities were able to analyze calls, text messages, chats in messaging and social media apps, the prosecutor’s office wrote.

He had spoken openly about his struggles with substance abuse and his mental health. In the summer of 2023, Payne said he was marking six months of sobriety after completing treatment in a US facility. Payne’s tour was set to kick off in South America in September of that year, but he had to postpone the scheduled dates after suffering a kidney infection.

Payne rocketed to global stardom as part of One Direction, the massively popular boyband that was created on the British version of the X Factor in 2010. The group, which included members Harry Styles, Louis Tomlinson, Niall Horan and Zayn Malik, announced an “indefinite hiatus” in 2016.

This post appeared first on cnn.com

Germany’s governing coalition has collapsed after disagreements over the country’s weak economy led Chancellor Olaf Scholz to sack his finance minister.

Christian Lindner’s dismissal prompted him to withdraw his Free Democrats Party (FDP) from a coalition with Scholz’s Social Democratic Party (SPD), leaving Scholz in a minority government with the Green Party.

Scholz said he would now call a confidence vote for January 15, which, if he lost, could allow elections to be held by the end of March next year – six months earlier than the elections planned for September 2025.

Germany now faces turmoil at a time of broader uncertainty. The political crisis was triggered just hours after it was announced former US President Donald Trump will get a second term – an election outcome that could bring further woes to Germany’s economy as well as threaten Europe’s united front on key issues. Here’s what we know.

Is a snap election unusual for Germany?

Political stability is the norm for Germany, with power largely moving between the SPD and conservative rival, the CDU. The country’s previous leader, Angela Merkel, held power for 16 years and was a steady presence on the European stage as others came and went. She had a famously testy relationship with Trump.

Germany’s last snap election was in 2005. They were called by then-Chancellor Gerhard Schröder, who subsequently lost to Merkel.

Merkel retired from her position as German chancellor in 2021.

The center-left Social Democratic Party (SPD) stepped up to fill the gap she left when it emerged as the largest party in Germany’s parliament, or Bundestag, in the 2021 federal election. Following the all-powerful and ever-popular Merkel was always going to be fraught with difficulties.

The SPD cobbled together a government with the FDP and the Greens, which have ruled as a “traffic light” coalition since December of that year, referring to the different parties colors.

How successful has Germany’s “traffic light” coalition been?

Bringing together three ideologically different parties into one coalition has not always made for a comfortable alliance, and the SPD-led coalition has faced challenges from the start.

The alliance brought together the FDP, a business-focused party that advocates for a free market and a fiscally conservative approach, with the SPD and the Greens, two left-wing parties that require government spending for social and environmental policies.

The coalition has been at loggerheads over how to revive Germany’s economy. It has also been under pressure from burgeoning far-right, as well as more recently, far-left forces.

The Alternative für Deutschland (AfD) made significant gains in recent years, becoming the first far-right party to win a state election since the Nazi era in September, when it emerged as the strongest in the eastern state of Thuringia.

In efforts to counter the AfD, Scholz’s government was spurred into action on migration, announcing new security measures aimed at speeding up the deportation of rejected asylum seekers and shoring up border controls.

Why have things collapsed now?

Months of tensions over Germany’s budget policy and economic direction boiled over on Wednesday. Essentially, Scholz’s demands for investment have clashed with Lindner’s more prudent approach to government borrowing.

Scholz said he fired Lindner for blocking his economic plans, telling reporters, “Lindner showed no willingness to implement any of our proposals” and, therefore, “there is no trust basis for any future cooperation.”

Lindner meanwhile accused Scholz of having asked him to pause the “debt brake” – a constitutional article that prevents the government from borrowing excessively and amassing debt – something Lindner said he was not willing to do.

The rhetoric coming from Scholz and Lindner was uncharacteristically pointed. The chancellor told reporters Wednesday night that Lindners’ “egoism is totally incomprehensible.”

Still looming over the government is the thorny issue of how to plug next year’s budget, which has a multi-billion-euro gap. With the FDP now not in the picture, its passage is even more complicated.

Carsten Brzeski, a senior economist at Dutch bank ING, cited “never-ending tensions” within the German government as well as “clear disagreement on how to get the German economy out of its current state of stagnation and structural weakness” as reasons for the collapse.

What problems is Germany’s economy facing?

Germany’s economy, Europe’s largest, shrank last year for the first time since the onset of the Covid-19 pandemic.

Over the last five years, it has grown only 0.2% , compared with 4.6% growth in the 20 countries that use the euro, 4.1% in France and 5.5% in Italy.

There are a number of reasons for Germany’s economic stagnation. The country’s energy-intensive businesses have suffered from the lingering impact of the energy crisis sparked by Russia’s war in Ukraine. Germany’s problems are also structural, ranging from high labor costs, a rapidly aging population and red tape to outdated physical and digital infrastructure.

It faces competition from China in the manufacturing of some of its main exports, which has delivered high-profile damage to Germany’s famous automobile industry. Volkswagen, Germany’s largest manufacturer, is considering factory closures in its home country for the first time in its 87-year history.

What happens now?

Scholz is expected to head a minority government. He would have to rely on cobbled-together parliamentary majorities to pass legislation, until the vote of confidence in January.

He will likely turn to Merz and the CDU – Germany’s most popular party – for support to pass legislation in the short term.

But piling pressure on Scholz, CDU leader Friedrich Merz, the leader of the Christian Democratic Union (CDU) opposition party, has meanwhile said this is too long, and demanded a confidence vote by the beginning of next week “at the latest” rather than early next year.

The collapse of the governing coalition and political uncertainty may serve to bolster support for the far-right as people increasingly lose faith in the mainstream parties. Party leader Alice Weidel has already hailed the coalition’s collapse as a “liberation” for Germany.

“The end of the traffic light coalition is a liberation for our country. The end of the self-proclaimed ‘progressive coalition’ that took Germany to the brink of economic ruin was more than overdue,” Weidel wrote on X.

This post appeared first on cnn.com

China is bracing for what could be a volatile and highly unpredictable path ahead in its escalating great power rivalry with the United States, after Donald Trump made a historic political comeback to win the race to the White House.

His return could bring tariffs as high as 60% on Chinese goods – which could devastate economic growth in the world’s second largest economy and upend global supply chains – more technology controls and fiery rhetoric on Beijing, heightening tension in already rocky relations between the superpowers.

But Trump’s protectionist trade posture and transactional approach to foreign policy may also weaken US alliances and global leadership, presenting opportunities for Beijing to fill the void of America’s retreat and shape an alternative world order.

“Trump’s return to power will certainly bring greater opportunities and greater risks for China,” said Shen Dingli, a foreign policy analyst in Shanghai. “Whether it eventually leads to more risks or more opportunities depend on how the two sides interact with each other.”

Officially, China has sought to present a neutral stance on Trump’s win. Its Foreign Ministry said on Wednesday it “respected” America’s choice.

Chinese leader Xi Jinping congratulated Trump on Thursday. Known for his fondness for autocrats, Trump has regularly praised Xi and called the Chinese leader “a very good friend,” even as US-China relations nosedived under his watch.

Xi told the president-elect that China and America can “find the right way” to “get along in the new era,” according to a readout from the Chinese Foreign Ministry.

But beneath the calm surface, Beijing is likely bracing for impact – and uncertainties.

“Trump is a very mercurial person,” said Liu Dongshu, an assistant professor of international affairs at the City University of Hong Kong. “It remains to be seen whether he will implement, and to what extent, the policies he promised during the election campaign, and if he will stick to his first-term agenda.”

Sky-high tariffs

During Trump’s first term in office, the tough-talking populist who promised to make “America great again” launched a bruising trade war with China, backlisted Chinese telecom giant Huawei on national security grounds and blamed Beijing for the Covid-19 pandemic. By the end of his first term, bilateral relations had plunged to their lowest point in decades.

This time around, Trump has threatened on the campaign trail to slap 60% tariffs on all goods made in China and revoke its “permanent normal trade relations” status, which has given China the most favorable trade terms with the US for more than two decades.

This punitive measure, if carried through, could deliver a body blow to an economy already beset by a property crisis, flagging consumer demand, falling prices and mounting local government debts.

Investment bank Macquarie estimates that, at the sky-high 60% level, the tariffs are likely to cut the country’s growth by a full two percentage points, which would be just under half of China’s expected full-year economic expansion rate of 5%.

“Trade war 2.0 could end China’s ongoing growth model, in which exports and manufacturing have been the main growth driver,” Larry Hu, chief China economist at Macquarie, wrote in a Wednesday research note.

Investors appeared to predict this outcome as Trump’s lead over Vice President Kamala Harris widened on Wednesday, causing Chinese stocks and the yuan to fall sharply.

Tariffs act as a tax on imports, hurting consumers in the country imposing them, as well as businesses that rely on imported raw materials and intermediate goods to make finished products. A significant escalation of global trade tensions will likely inflict pain not just on China and the US, but also on other countries involved in global supply chains.

Unlike his Republican predecessors who hailed from the establishment, Trump wields an erratic and unconventional approach to policy making, adding to Beijing’s sense of uncertainty.

“Trump began his first term as an enthusiastic admirer of Xi Jinping, before levying tariffs and then vilifying Beijing during the pandemic,” said Daniel Russel, vice president of international security and diplomacy at the Asia Society Policy Institute.

“So, Beijing is likely to approach the President-elect with caution — probing to ascertain which Trump to expect and where there may be opportunities to exploit,” added Russel, who previously served as the top Asia advisor to former President Barack Obama.

Challenges and opportunities

But Trump’s “America First” agenda and transactional worldview may also play in Beijing’s favor, experts say.

“Although Beijing is deeply concerned about the unpredictability of Trump’s China policy, it reminds itself that challenges also bring opportunities,” said Tong Zhao, senior fellow at the Carnegie Endowment for International Peace.

“Despite fears of a renewed trade war, Beijing believes that Trump’s tough tariff policies would be deeply unpopular in Europe, creating an opening for China to strengthen economic ties with Europe and counter US efforts to intensify technology and supply chain decoupling between China and Western nations,” he said.

Trump’s longstanding distain for NATO (he said in February he would not defend NATO allies that fail to spend enough on defense from a future attack by Russia), as well as international alliances and institutions more broadly, also threatens to weaken American alliances that outgoing President Joe Biden has carefully cultivated to counter the threats of a rising China.

That would offer some timely relief to Beijing, which is increasingly irritated by what it sees as Washington’s strategy to encircle and contain China with an “Asian Nato.”

America’s potential inward turn under Trump will also be welcome news for Xi, who has ramped up efforts to claim leadership in the Global South and build a new world order no longer dominated by the West.

Taiwan and relations with Russia

Beijing may also be looking for ways to utilize Trump’s penchant for deal-making, including on the issue of Taiwan. China’s ruling Communist Party claims the island as its own, despite never having controlled it.

Under the previous Trump administration, which was staffed with China hawks, the US bolstered support for Taiwan through increased arms sales and diplomatic visits. But the former leader’s recent comments have fueled concerns about American commitment to the democratic island.

On the campaign trail, Trump accused Taiwan of “stealing” the chip industry from the US and said that the self-governing democracy should pay the US for protection.

Industry experts say Taiwan grew its own semiconductor industry organically through a combination of foresight, hard work and investment. And the island has purchased the vast majority of its weaponry from US arms manufacturers over recent decades. But Trump’s campaign rhetoric nonetheless hinted at a more transactional approach to Taiwan.

Asked by the Wall Street Journal in an interview if he would use military force against a blockade on Taiwan by China, Trump said it would not come to that because Xi respected him and knows he’s “crazy.” Instead, he said he would slap 150% to 200% tariffs on Beijing.

“With Trump’s relatively less strong interest in defending Taiwan, Beijing may seek greater concessions from Washington on the Taiwan issue, using both positive incentives and coercive leverage to push the United States to reduce its military and political support for Taiwan,” Zhao said.

Trump, who has touted his good relations with Russian President Vladimir Putin, has made comments that suggest the US could pressure Ukraine into an uneasy truce with Russia.

While ending the grinding war in Ukraine could remove a crucial sore point in China-Europe relations, it could also complicate Moscow’s alignment with Beijing, which has deepened since Russia’s invasion, said Liu at the City University of Hong Kong.

“If the US and Russia ease relations, it could create greater daylight between Russia and China, effectively driving a wedge between them.” Liu said.

“From everything he has said, it’s clear that Trump considers China, not Russia, as the main adversary.”

This post appeared first on cnn.com

Israeli soccer fans were attacked in a “serious incident of violence in Amsterdam” overnight into Friday, Israeli authorities said, with the government saying it was sending planes to evacuate affected citizens.

Hundreds of fans of Israel’s Maccabi Tel Aviv soccer team “were ambushed and attacked in Amsterdam” on Thursday night as they left the stadium following a Europa League game against Dutch side Ajax, the Israeli embassy to the United States said on social media platform X.

Social media video shared by the embassy showed videos of what it said was violence against Maccabi fans.

Israeli foreign minister Gideon Sa’ar said 10 citizens were injured and advised citizens to stay in their hotels.

“The impression from the reports (are) that the situation is calming down in the last hour,” Sa’ar said.

In a statement from his office, Israeli Prime Minister Benjamin Netanyahu called the violence “serious” and said he was ordering the “immediate release of two rescue planes” to assist Israeli citizens.

The Israeli leader also urged Dutch authorities to “act firmly and quickly against the rioters and ensure the peace of our citizens.”

Israel’s foreign ministry overnight Friday said about thirty people have been arrested so far. The statement did not say when those arrests were made or who was arrested.

Maccabi fans had been in the Dutch capital ahead of Thursday night’s Europa League game against Ajax.

Amsterdam’s police said it boosted its presence in the city’s center on Wednesday night, citing “tensions” in several areas, one day ahead of the soccer match.

Officers “prevented a confrontation between a group of taxi drivers and a group of visitors who came from the adjacent casino” on Wednesday night, the police said in a statement on X, noting another incident in which a Palestinian flag was torn down in Amsterdam’s center by unknown perpetrators.

The police also said a demonstration was planned on Thursday near the stadium ahead of the soccer match between Ajax and Maccabi Tel Aviv.

This is a developing story and will be updated.

This post appeared first on cnn.com