Free Digital Markets
Archive

November 9, 2024

Browsing
Stock

Three Sectors Leading SPY Back to Offense

By

First of all, for those of you looking for a new video this week, I have intentionally skipped it because I didn’t want to make a video right before such an important event with much uncertainty.

After the elections, which were obviously eventful, I wanted to see what the market’s reaction would be and let the dust settle down before diving into any analysis, which might have been too preoccupied and presumptuous too early.

However, it’s now Friday, the end of the week, and we have a little more color on how markets have responded to the election results. It’s time to see what the sector rotation is telling us and how the chart of the S&P 500 has changed—because it has definitely changed!

The S&P 500’s Post-Election Reversal

If you look at that chart right now with the annotations, which were the cornerstone of my view, I have to say that it was a little conservative going into the elections. This has now pretty much turned around. On the chart, a very clear island reversal is now visible.

We have the gap down on the 31st of October, followed by three more or less sideways days, which took SPY to a low of just around 567. On November 5th, election day, the market closed at the high, followed by a massive gap up the day after. It was not only a gap up but also a move above the S&P 500’s all-time highs.

So we have a massive gap up. We have an island reversal, which completed just above pretty important support around 565, and we now already have two days of good follow-through. That is a strong sign. This market wants to go higher, at least in the near term.

If we switch to the weekly chart for SPY, those mild divergences between the RSI and price and the MACD and price are still visible, but the price action itself is so strong that it cannot and should not be negated.

So, at least in the near term, this market wants to go higher. For now, corrections holding above support around 585 (the former peak) should be regarded as buying opportunities.

Reversals in Sector Rotation

On the relative rotation graph for the 11 S&P sectors above, I have intentionally set the tail length at six trading days. That means that each tail has seven nodes, and the 4th node, so the middle one, is November 5th. This allows us to see the 3 days leading up to election day and then the 3 days after election day. As you can see, most of the tails have continued to travel in the direction they were already heading.

The most prominent ones are consumer discretionary and communication services, which entered and moved further into the leading quadrant. On the other side is the utility sector, which accelerated further into the lagging quadrant.

Sectors with Notable Changes

I want to highlight a few sectors that really changed direction, where we saw a change in detail before and after election day. The two sectors with the most prominent changes are financials and health care.

This first RRG shows the tails for both sectors ending on the 5th of November.

Financials Sector (XLF)

If we zoom in on the tail for XLF, you can see that it ended November 5th just inside the weakening quadrant. It just crossed over from leading to weakening. Then, in the 3 days after November 5th, it completely reversed course and is now almost back into the leading quadrant.

Health Care Sector (XLV)

The same sort of move is visible on the other side of the chart for the healthcare sector, XLV. On November 5th, XLV had just crossed into the improving quadrant and was on a positive heading. In the 3 days after, the sector completely reversed course and is now back into the lagging quadrant at a negative heading.

XLP and XLRE Rolling Over

Other sectors where we see a change in the course of the tail include consumer staples, which was inside the improving quadrant but hooked back down, rolled over, and is now back into the lagging quadrant, and real estate, which was also inside the improving quadrant but rolled over and is now accelerating into the lagging quadrant.

The technology sector changed course a bit, but not as clearly as the other sectors. It is still right around the 100 level on the RS ratio scale and very close to the benchmark without a very clear direction.

The Big Winners Post-Election

I think the biggest winners from these election results with good potential going forward are consumer discretionary (XLY), and Communication Services (XLC).

XLY is obviously led by TSLA, which is distorting the performance of the consumer discretionary sector with an almost 27% gain in 3 days. But consumer discretionary stocks have picked up roughly between 3% and 7% across the board, which still indicates strength. The communication services sector is slightly more evenly spread out, and has a good base and a good foundation to move higher and push further into the leading quadrant.

Conclusion

All in all, the market as a whole seems to have reversed its course. After only a very mild corrective move, it has now started a new up leg in the existing uptrend. The sectors that have come out on top are consumer discretionary and communication services, followed by financials.

All 3 are on the right-hand side of the RRG, either already inside the leading quadrant or almost there, and traveling at a positive RRG heading. On the opposite side, the sectors with a less favorable outlook are health care, consumer staples, and utilities. Overall, the sector rotation has now shifted from defense back to offense.

#StayAlert, and have a great weekend. –Julius

Keep Reading
By
Stock

Stock Market Hits Record Levels: Prepare for What Inflation Can Bring Next

By

Another packed week for the stock market has come to a close. The broader stock market indexes broke out of their sideways trading range with the S&P 500 ($SPX), Nasdaq Composite ($COMPQ), and Dow Jones Industrial Average ($INDU) closing the week out at record levels.

The US election results and the Federal Reserve’s decision to cut interest rates by 25 basis points are now in the rearview mirror. When Jerome Powell took the podium on Thursday, he made it clear that the Federal Open Market Committee (FOMC) remains focused on their dual mandate of maximum employment and price stability.

Bond Market Action Is Key

The 10-Year US Treasury Yield Index ($TNX) closed at 4.31% on Friday, which is significantly higher than its September low of 3.61%. Bond prices, which move inversely to yields, fell due to possible economic growth and inflation under the new administration.

The weekly chart of the iShares 20+ Year Treasury Bond ETF (TLT) may be flirting with its 50-week simple moving average (SMA), but it’s trending to the downside. For as long as economic growth, inflation, and a widening budget deficit remains in play, bonds are likely to continue trading at low levels.

CHART 1. WEEKLY CHART OF THE ISHARES 20+ YEAR TREASURY BOND ETF (TLT). Bonds have been struggling of late and is likely to remain low for a while.Chart source: StockCharts.com. For educational purposes.

Volatility in stocks and bonds have also declined. Bond volatility measured by the MOVE Index ($MOVE) which is displayed in the lower panel in the above chart, fell significantly this week. This is an important indicator to monitor, as it can give an early signal of a turn in market action.

The Cboe Volatility Index ($VIX) also fell and closed just below 15 for the week. On Wednesday, the VIX fell over 20%, which shows that going into the elections, there was uncertainty among investors. Once the election results were known, the anxiety dissipated, as seen by the action in the VIX.

With an upward trend in stocks and a low VIX, investors are in a sweet spot. There’s no reason to be bearish now unless some unknown event resurfaces, which is always a possibility. If you’re holding long positions, hang on to them, but when there’s a pullback, use it as an opportunity to add more positions. Or maybe you’ve made enough profits, and you want to sell some of your positions. It all depends on your financial objectives and risk tolerance level.

Small-Cap Stocks Getting Saucy

Small-cap stocks have been interesting this week. After breaking out of a sideways trading range, the S&P 600 Small Cap Index ($SML) had a massive upside breakout (see chart below). The long green candle followed by the two small body days could end up being a Rising Three Methods candlestick pattern. The fourth and fifth days need to form before the pattern is confirmed. So save this chart to your ChartLists and see what happens Monday and Tuesday next week. 

CHART 2. DAILY CHART OF THE S&P 600 SMALL CAP INDEX ($SML). After breaking out of a sideways trading range, $SML had a massive upside move. This move could continue depending on how the daily bars play out in the next two trading days.Chart source: StockCharts.com. For educational purposes.

Market breadth continues to favor a bullish move, with 77% of the $SML stocks trading above their 50-day moving average. The Advance-Decline Percent is relatively stable.

Taking a Cue from the US Dollar

There have been some sharp moves in the US dollar. The US Dollar Index ($USD), which tracks the US dollar against a basket of major currencies, spiked on Wednesday, pulled back on Thursday, and resumed its uptrend on Friday (see the chart below). This move is based on anticipating tariffs, which will strengthen the US dollar.

CHART 3. US DOLLAR INDEX ($USD) SPIKES. The rise in the US Dollar Index is in anticipation of tariffs on imported goods. Monitor it closely for early indications of shifts in stock market action.Chart source: StockCharts.com. For educational purposes.

The US dollar is another chart to monitor closely. Like the $MOVE, $USD can give an early indication of shifts in market action.

Next week, we will receive some key inflation data coming out, although they may not impact the market much. The market has probably already priced in inflation expectations.

If you want to be notified of new articles published in the ChartWatchers blog, sign up on this page.

End-of-Week Wrap-Up

  • S&P 500 up 4.66% for the week, at 5995.54, Dow Jones Industrial Average up 4.61% for the week at 43,988.99; Nasdaq Composite up 5.74% for the week at 19,286.78
  • $VIX down 31.72% for the week, closing at 14.94
  • Best performing sector for the week: Consumer Discretionary
  • Worst performing sector for the week: Consumer Staples
  • Top 5 Large Cap SCTR stocks: Applovin Corp. (APP); Summit Therapeutics (SMMT); Redditt Inc. (RDDT); Palantir Technologies (PLTR); Ubiquiti, Inc. (UI)

On the Radar Next Week

  • October Consumer Price Index (CPI)
  • October Producer Price Index (PPI)
  • Powell and other Fed member speeches
  • October Retail Sales

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.

Keep Reading
By
Stock

Best Way to Capitalize on Election Rally!

By

In this StockCharts TV video, Mary Ellen presents a deep dive into last week’s sharp rally in the markets. She highlights what areas could perform best under a Trump administration and how to spot a pullback. She takes a close look at the “New Economy” and how best to capitalize.

This video originally premiered November 8, 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.

Keep Reading
By
Investing

Mawson Finland Limited Provides Summary of 2024 Exploration Drilling at Rajapalot: Setting the Stage for Continued Success into 2025

By

Mawson Finland Limited (‘ Mawson ‘ or the ‘ Company ‘) (TSXV:MFL) is pleased to provide an exploration summary of the highly successful 38 hole, 11,376 metre 2024 exploration drilling programme at the Company’s wholly-owned Rajapalot gold-cobalt project in Finland (see Table 1, Table 2, Table 3, and Figure 1 in Schedule ‘A’ hereto). Additionally, the balance of outstanding cobalt results are also presented.

2024 Drilling Highlights:

  • Discovery of a new zone of high-grade mineralization, ‘New Lens’ , located in the footwall below the South Palokas mineralized zone: PAL0335 drilled a thick 21.75m interval grading 5.25 g/t gold and 515 ppm cobalt from 295.05 m ( 21.75 m @ 5.25 g/t Au & 515 ppm Co , including 3.2 metres @ 21.61 g/t Au and 373 ppm Co
  • Shallow and high-grade step-out intercept at Palokas zone: PAL0346 intercepted 7 m @ 9.1 g/t gold and 706 ppm cobalt from 88.75 m demonstrating that thicker and higher-grade mineralization exists in the southern margin of the Palokas gold-cobalt system
  • Significant gold-cobalt mineralized intercepts drilled at depth at Palokas and South Palokas zones, with multiple intercepts in step-out holes PAL0354 (Palokas) and PAL0361 (South Palokas), expanding and opening the ‘at depth’ strike-length of each of these mineralized bodies – both mineralized zones remain open at depth
  • Drilling at Raja, The Hut, Terry’s Hammer and Joki expanded the mineralized footprint of these zones which are expected to contribute to the inferred gold and cobalt resource inventory in future updates to the resource calculation

Ms. Noora Ahola, Mawson Finland CEO, states: ‘ We regard our latest drilling season at Rajapalot a success and believe that the gold-cobalt resource at Rajapalot has a great potential to be extended beyond its current size. The most significant highlights reported here demonstrate that depth potential at South Palokas remains open, with 2 gold-cobalt mineralized horizons now present in this new, deeper drilling. Similarly, an additional thick intercept on ‘New lens’ follows-up our previously reported discovery of this mineralization, demonstrating geological and grade continuity of this zone of gold-cobalt mineralization of which we are eager to follow-up at depth in this coming 2025 winter drilling season. Our work continues with ongoing geophysical measurements and planning of a new extensive drill program starting in January 2025. We anticipate that our success should continue into 2025 as we work towards our goal of adding ounces to the resource’.

Detailed Summary

During January to April 2024, 3 drill-rigs drilled a total of 11,376 metres of diamond core from 38 drillholes around the Palokas, South Palokas, The Hut, Raja and Joki zones of gold-cobalt mineralization (Figure 1). Primary aims of this 2024 drilling campaign at the Rajapalot project were to further delineate additional gold-cobalt mineralization in order to enlarge the inferred category mineral resource over the property beyond its presently defined size of 9.78 mt @ 2.8 g/t gold and 441 ppm cobalt, with total contained metal of 867 koz of gold and 4311 tonnes of cobalt.

Palokas Area: Twenty drillholes were drilled around the Palokas and South Palokas mineralized zones, with several intercepts encountering significant gold-cobalt mineralization. Along the southern margin of the presently defined limits of the Palokas zone, several significant intercepts were drilled, including a shallow high-grade intercept of 7 m @ 9.1 g/t gold and 706 ppm cobalt approximately 70 metres below surface (PAL0346), and a deeper intercept of 12 m @ 1.7 g/t Au approximately 300 metres below surface (see Figure 2). At South Palokas, significant intercepts were also recorded along the southern margin of its presently defined limits, with holes PAL0335, PAL0340, PAL0344, PAL0361 and PAL0364 all intercepting multiple significant intercepts from approximately 100 metres, to 450 metres below surface (see Figure 2). A new zone of high-grade mineralization was discovered in the footwall of South Palokas, approximately 100 metres below the presently defined gold-cobalt mineralized envelope of the South Palokas. Here, a thick 21.75 metre lens of high-grade mineralization was intercepted in PAL0335, grading at 5.25 g/t Au & 515 ppm Co. A follow-up intercept on this ‘New Lens’ of mineralization, located 50 metres up-plunge from the PAL0355 intercept, drilled a 17 metre thick interval grading 1.05 g/t Au and 224 ppm Co, confirming both the local geological and grade continuity of ‘New Lens’ (see Table 1, Table 2, Figure 2 and Figure 3).

Raja Area: Six drillholes were drilled around the Raja zone of mineralization in an effort to extend the mineralized envelope here to both the north-east, and south-west of its presently defined limits. Five of 6 drillholes intercepted significant mineralization, with drillholes PAL0355, PAL0353, and PAL0358 extending the known limits of gold-cobalt mineralization between 40 metres and 90 metres to the north-east (see Table 1, Table 2 and Figure 4)

The Hut Area: Drilling around The Hut area consisted of 8 drill holes; 4 holes investigating potential extensions to The Hut inferred resource, 2 drillholes below the Terry’s Hammer mineralized zone, and a further 2 drillholes in the unexplored area located between South Palokas and The Hut zones of mineralization (See Table 1, Table 2 and Figure 2). Drillholes PAL0363 and PAL0368 extended the mineralized strike-length at The Hut in both the north and south directions, while drillhole PAL0371 encountered gold-cobalt mineralization below Terry’s Hammer.

Joki Area: Drilling around the Joki mineralized zone consisted of 4 drillholes, of which 3 holes were designed to further design gold-cobalt mineralization up-dip of the main lens, while an additional drillhole was located to the north-east in order to step-out from the known limits of mineralization. The 3 drillholes placed up-dip or mineralization returned no significant intercepts, while the remaining north-east step-out drillhole (PAL0338) returned only a single significant intercept (see Table 1, Table 2 and Figure 5).

Technical Background, Data Verification and Quality Assurance and Quality Control

Three diamond drill rigs from MK Core Drilling Oy, Comadev Oy and Arctic Drilling Company Oy, all with water recirculation and drill cuttings collection systems, were used in this drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are excellent and average close to 100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals of between 0.5 to 2 metres are taken, then half-sawn by independent contractors the Geological Survey of Finland (GTK) in Rovaniemi, Palsatech Oy in Kemi and Geopool Oy in Sodankylä. The remaining half core is retained for verification and reference purposes. Analytical samples are transported by commercial transport from site to the independent contractor CRS Minlab Oy (‘ CRS ‘) facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (including cobalt) are pulped at CRS, then transported by air to MSALABS in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. All the foregoing laboratories are independent of the Company. The quality assurance and quality control program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks placed within sample runs in interpreted mineralized rock. In addition, CRS inserts blanks and standards into the analytical process. In addition to the sample preparation and security measures described above, data verification procedures are well integrated into the Company’s quality assurance and quality control program. Routine ongoing checking of all data is undertaken prior to being uploaded to the database. This will be followed by independent data verification audits at exploration milestones throughout the Rajapalot project’s development. Dr. Fromhold (see ‘ Qualified Person ‘ below) has also reviewed the qualifications and analytical procedures of the above-mentioned laboratories, photographs of drill cores, and the PEA in connection with verifying the exploration information presented herein.

All maps have been created within the KKJ3/Finland Uniform Coordinate System (EPSG:2393). Tables 1-3 in Schedule ‘A’ hereto provide collar and assay data. Due to the typically low angles of drill intercepts, the true thickness of the mineralized intervals are interpreted to be approximately 80-90% of the drilled thickness. Table 3 gives detailed individual assay data of all intervals reported in this press release. Intersections are reported with a lower cut of 0.3 g/t Au over 1 metre intervals, with composite data (Table 2 in Schedule ‘A’ hereto) containing no more than 2 consecutive 1 m intervals of waste-rock (i.e., 1 m intervals with <0.3 g/t Au). No upper-cut was applied.

Deposit Model

At Rajapalot, mineralization is regarded as orogenic in nature. All examples of gold-cobalt mineralization are consistently located within highly-sheared and foliated wall-rocks adjacent to strongly hydrothermally altered, northwest to north dipping shear-zones. Mineralization is typically encountered as disseminated to semi-massive sulfide lenses (predominantly pyrrhotite and lesser pyrite ± cobaltite), hosted within strongly deformed and altered, mafic volcanic and volcaniclasitic stratigraphy of the upper portions of the Paleoproterozoic-aged Kivalo Group of the Peräpohja Greenstone Belt. Prospects with high-grade gold and cobalt mineralization at Rajapalot occur across a 3 km (east-west) by 2 km (north-south) area within the larger Rajapalot project area measuring 4 km by 4 km with multiple mineralized boulders, base-of-till (BOT). Gold-Cobalt mineralization at Rajapalot has been drilled to approximately 470 metres below surface at both South Palokas and Raja prospects, and mineralization remains open at depth across the entire project.

Rajapalot Mineral Resource

An Inferred Mineral Resource (‘MRE’) has been calculated for the Rajaplot project (effective date August 26, 2021), and is based on an ‘underground only’ scenario containing 9.8 million tonnes @ 2.8 g/t gold (Au) and 441 ppm cobalt (Co), equating to 867 thousand ounces (‘koz’) gold and 4,311 tonnes of cobalt.

Rajapalot Inferred Mineral Resource Effective August 26, 2021

  • The independent geologist and Qualified Person as defined in NI 43-101 for the mineral resource estimates is Mr. Ove Klavér (EurGeol). The effective date of the MRE remains unchanged to the Previous MRE (August 26, 2021, available on SEDAR as filed by the previous owner, Mawson), and will be restated in the PEA technical report when it is filed.
  • The mineral estimate is reported for a potential underground only scenario. Inferred resources were reported at a cut-off grade of 1.1 g/t (AuEq 1 Au g/t + Co ppm /1005) with a depth of 20 meters below the base of solid rock regarded as the near-surface limit of potential mining.
  • Wireframe models were generated using gold and cobalt shells separately. Forty-eight separate gold and cobalt wireframes were constructed in Leapfrog Geo and grade distributions independently estimated using Ordinary Kriging in Leapfrog Edge. A gold top cut of 50 g/t Au was used for the gold domains. A cobalt top cut was not applied.
  • A parent block size of 12 m x 12 m x 4 m (>20% of the drillhole spacing) was determined as suitable. Sub-blocking down to 4 m x 4 m x 0.5 m was used for geologic control on volumes, thinner and moderately dipping wireframes.
  • Rounding of grades and tonnes may introduce apparent errors in averages and contained metals.
  • Drilling results to 20 June 2021.
  • Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Qualified Person

The technical and scientific information in this news release was reviewed, verified and approved by Dr. Thomas Fromhold, an employee of Fromhold Geoconsult AB, and Member of The Australian Institute of Geosciences (MAIG, Membership No. 8838). Dr. Fromhold is a ‘qualified person’ as defined under NI 43-101. Dr. Fromhold is not considered independent of the Company under NI 43-101 as he is a consultant of the Company.

About Mawson Finland Limited

Mawson Finland Limited is an exploration stage mining development company engaged in the acquisition and exploration of precious and base metal properties in Finland. The Company is primarily focused on gold and cobalt. The Corporation currently holds a 100% interest in the Rajapalot Gold-Cobalt Project located in Finland. The Rajapalot Project represents approximately 5% of the 100-square kilometre Rompas-Rajapalot Property, which is wholly owned by Mawson and consists of 11 granted exploration permits for 10,204 hectares and 2 exploration permit applications and a reservation notification area for a combined total of 40,496 hectares. In Finland, all operations are carried out through the Company’s fully owned subsidiary, Mawson Oy. Mawson maintains an active local presence of Finnish staff with close ties to the communities of Rajapalot.

Additional disclosure including the Company’s financial statements, technical reports, news releases and other information can be obtained at mawsonfinland.com or on SEDAR+ at www.sedarplus.ca .

Media and Investor Relations Inquiries

Please contact: Neil MacRae Executive Chairman at neil@mawsonfinland.com or +1 (778) 999-4653, or Noora Ahola Chief Executive Officer at nahola@mawson.fi or +358 (505) 213-515.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No securities regulatory authority has reviewed or approved of the contents of this news release.

Forward-looking Information

This news release includes certain ‘forward-looking information’ and ‘forward-looking statements’ within the meaning of applicable securities laws (collectively, ‘forward-looking information’) which are not comprised of historical facts. Forward-looking information includes, without limitation, estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking information may be identified by such terms as ‘believes’, ‘anticipates’, ‘expects’, ‘estimates’, ‘aims’, ‘may’, ‘could’, ‘would’, ‘will’, ‘must’ or ‘plan’. Since forward-looking information is based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, and management of the Company believes them to be reasonable based upon, among other information, the contents of the PEA and the exploration information disclosed in this news release, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, any expected receipt of additional assay results or other exploration results and the impact upon the Company thereof, any expected milestone independent data verification, the continuance of the Company’s quality assurance and quality control program, potential mineralization whether peripheral to the existing Rajapalot resource or elsewhere, any anticipated disclosure of assay or other exploration results and the timing thereof, the estimation of mineral resources, exploration and mine development plans, including drilling, soil sampling, geophysical and geochemical work, any expected search for additional exploration targets and any results of such searches, potential acquisition by the Company of any property, the growth potential of the Rajapalot resource, all values, estimates and expectations drawn from or based upon the PEA, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: any change in industry or wider economic conditions which could cause the Company to adjust or cancel entirely its exploration plans, failure to identify mineral resources or any additional exploration targets, failure to convert estimated mineral resources to reserves, any failure to receive the results of completed assays or other exploration work, poor exploration results, the inability to complete a feasibility study which recommends a production decision, the preliminary and uncertain nature of the PEA, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Source

Click here to connect with Mawson Finland Limited (TSXV:MFL) to receive an Investor Presentation

This post appeared first on investingnews.com

Keep Reading
By
Investing

Heritage Mining Announces Oversubscribed Closing of the Final Tranche of its Non-Brokered Private Placement of Units and Flow-Through Shares

By

(TheNewswire)

VANCOUVER, BC TheNewswire – November 8, 2024 Heritage Mining Ltd. (CSE: HML) (‘ Heritage ‘ or the ‘ Company ‘) is pleased to announce that it has closed the final tranche (‘ Tranche Two ‘) of its non – brokered private placement financing previously announced on September 23, 2024 (the ‘ Offering ‘).

‘We are thrilled to announce the oversubscribed closing of our non-brokered private placement. We have deployed capital towards planned exploration activities including ongoing drone mag and prospecting at Drayton Black Lake –  Zone 3 as well as drone mag at Contact Bay (Rognan Mine area). We are making great progress and look forward to updating everyone on our findings in short order.’ Commented Peter Schloo, President CEO and Director

The Company raised an aggregate of $322,000 pursuant to Tranche Two, of which $ 47,000 was raised on the issuance of 940,000 units (‘ Units ‘) and $275,000 was raised on the issuance of 5,500,000 flow-through shares (‘ FT Shares ‘).  Each Unit was issued at a price per Unit of $0.05 and is comprised of one common share in the capital of the Company (‘ Common Share ‘) and one Common Share purchase warrant entitling the holder to acquire one Common Share for a period of 36 months at an exercise price of $0.10 (‘ Warrant ‘).  The FT Shares were issued at a price of $0.05 per FT Share which will qualify as a ‘flow-through share’ as defined in subsection 66(15) of the Income Tax Act (Canada).

The Company paid an aggregate of $21,620 in cash commissions and issued an aggregate of 332,400 compensation warrants (the ‘ Compensation Warrants ‘) in connection with Tranche Two.  Each Compensation Warrant entitling the holder to acquire one Common Share at a price of $0.05 for a period of 36 months following the date of issuance.

Proceeds of Tranche Two will be used to fund the Company’s previously announced exploration and drilling program on its flagship Drayton-Black Lake Project and Contact Bay, in addition to general working capital. All securities issued pursuant to the Tranche Two are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation.

Insiders of the Company subscribed for 100,000 Units and 1,000,000 FT Shares under tranche one (‘ Tranche One ‘) of the Offering and 800,000 Units under Tranche Two of the Offering.  Each transaction with an insider of the Company constitutes a ‘related party transaction’ within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘ MI 61-101 ‘).  The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company’s market capitalization.

Together with the Tranche One, the Company raised an aggregate of $1,398,002, of which an aggregate of $533,000 was raised on the issuance of an aggregate of 10,660,000 Units and an aggregate of $865,002 was raised on the issuance of an aggregate of 17,300,040 FT Shares.  Together with Tranche One, the Company paid an aggregate of $64,400.12 in cash commissions and issued an aggregate of 1,149,602 Compensation Warrants.

As part of the closing of Tranche Two, the Company settled $33,212 in debt obligations through the issuance of 664,240 Common Shares at a price of $0.05.

ABOUT HERITAGE MINING LTD.

The Company is a Canadian mineral exploration company advancing its two high grade gold-silver-copper projects in Northwestern Ontario. The Drayton-Black Lake and the Contact Bay projects are located near Sioux Lookout in the underexplored Eagle-Wabigoon-Manitou Greenstone Belt . Both projects benefit from a wealth of historic data, excellent site access and logistical support from the local community.  The Company is well capitalized, with a tight capital structure.

For further information, please contact:

Heritage Mining Ltd.

Peter Schloo, CPA, CA, CFA

President, CEO and Director

Phone: (905) 505-0918

Email: peter@heritagemining.ca

FORWARD-LOOKING STATEMENTS

This news release contains certain statements that constitute forward looking information within the meaning of applicable securities laws. These statements relate to future events of the Company. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as ‘seek’, ‘anticipate’, ‘plan’, ‘continue’, ‘estimate’, ‘expect’, ‘forecast’, ‘may’, ‘will’, ‘project’, ‘predict’, ‘potential’, ‘targeting’, ‘intend’, ‘could’, ‘might’, ‘should’, ‘believe’, ‘outlook’ and similar expressions are not statements of historical fact and may be forward looking information. All statements, other than statements of historical fact, included herein are forward-looking statements.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks include, among others, the inherent risk of the mining industry; adverse economic and market developments; the risk that the Company will not be successful in completing additional acquisitions; risks relating to the estimation of mineral resources; the possibility that the Company’s estimated burn rate may be higher than anticipated; risks of unexpected cost increases; risks of labour shortages; risks relating to exploration and development activities; risks relating to future prices of mineral resources; risks related to work site accidents, risks related to geological uncertainties and variations; risks related to government and community support of the Company’s projects; risks related to global pandemics and other risks related to the mining industry. The Company believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. These statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update any forward‐looking information except as required by law.

This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States, or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors.

NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Copyright (c) 2024 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

This post appeared first on investingnews.com

Keep Reading
By
Investing

Top 5 Canadian Mining Stocks This Week: Black Iron Up 78 Percent on Offtake Deal

By

The S&P/TSX Venture Composite Index (INDEXTSI:JX) climbed 0.91 percent on the week to close at 608.54 on Friday (November 8). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) was up 2.1 percent to 24,735.99.

Statistics Canada released its October Labour Force Survey on Friday (November 8). The announcement said there was little change to employment, with the economy adding just 15,000 jobs during the month and the unemployment rate holding steady at 6.5 percent.

South of the border, Donald Trump was declared the winner of the US presidential election in the early morning hours of Wednesday (November 6). Initially, experts expected the election to be too close to call, anticipating that counting would last days or even weeks.

How could his win affect the resource sector? Trump ran on a divisive platform that would see increasing tariffs, immigration reform and cuts to government spending. He’s also made broad promises for the resource sector, particularly oil and gas, that would see a lowering of environmental standards, access to protected federal land and a focus on exports.

The actual effects of these proposals won’t be known until well into 2025. Under the Biden administration, the US became the number one oil producer in the world, pumping more than 13 million barrels of crude per day in 2024, the most under any president.

How Trump’s policies will affect the metals and mining sector is unknown. His promise to pull back on climate laws could threaten the future of the Inflation Reduction Act, which has provided billions in targeted funding to projects tied to the energy transition. However, Trump is expected to support the industry by focusing on US-based projects and streamlining the permitting process.

Following the election, the US Federal Reserve held its November meeting on Wednesday and Thursday (November 7) and announced that it would make a 25-point cut to its benchmark Federal Funds Rate.

This marks the second time the central bank has cut interest rates, with the first being a 50 point cut in September, since it started raising them in February 2022 in response to rising inflation. In the announcement, the Fed cited an easing inflation rate, close to the 2 percent target, and a job market that has become less restrictive.

A surging US dollar and rising treasury yields pushed the price of gold down following the election. Although it recovered some ground on the Fed announcement, it ultimately lost 1.85 percent on the week, closing the period at US$2,685.10 on Friday at 4:00 p.m. EST. Silver took a harder hit, shedding 3.7 percent to US$31.24 on Friday. Copper was also down, dropping 1 percent to US$4.35 per pound on the COMEX.

The S&P GSCI (INDEXSP:SPGSCI) saw a slight increase of 0.67 percent to close at 539.73.

The election pushed major US indices to record highs this week, with the Nasdaq-100 (INDEXNASDAQ:NDX) surging 5.51 percent to close Friday at 21,110.08, the S&P 500 (INDEXSP:INX) jumping 4.72 percent to finish at 5,995.53, and the Dow Jones Industrial Average (INDEXDJX:.DJI) gaining 4.72 percent as well to reach 43.989.98.

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

1. Black Iron (TSX:BKI)

Weekly gain: 77.78 percent
Market cap: C$24.33 million
Share price: C$0.08

Black Iron is an iron development and exploration company focused on advancing its Shymanivske project in Southeastern Ukraine.

The mineral resource estimate in the 2020 preliminary economic assessment for the project included measured and indicated resources grading 18.8 percent magnetic iron and 31.6 percent total iron from 645.8 million metric tons of ore, with additional inferred resources of 18.4 percent magnetic iron and 30.1 percent total iron from 188.3 million metric tons.

The report suggested that the project’s development would have an after-tax net present value at 10 percent of US$1.44 billion, with an internal rate of return of 34.4 percent and a payback period of 3.33 years.

Shares in Black Iron saw gains this past week after it announced on Thursday that it had signed binding royalty and offtake agreements with Anglo American (LSE:AAL,OTCQX:AAUKF). Anglo American will invest US$4 million in return for a 1 to 1.5 percent royalty, dependent on the price of iron, as well as offtake rights to whichever is higher: 60 percent of Phase 1 production or 2.4 million metric tons of iron per year for the life of the mine.

Among other terms, the agreement also provides Anglo American with the opportunity to further invest at least 15 percent of the Phase 1 construction costs, which would increase its offtake rights to 100 percent of Phase 1 production or 4 million metric tons of iron per year following the end of the conflict between Russia and Ukraine.

2. Patagonia Gold (TSXV:PGDC)

Company Profile

Weekly gain: 60 percent
Market cap: C$16.28 million
Share price: C$0.04

Patagonia Gold is a precious metals production and development company primarily focused on advancing its Cap-Oeste and Calcatrau underground projects in Argentina.

Located in Santa Cruz province, Cap-Oeste hosted open-pit mining operations until 2018. While Patagonia is working on the exploration and development of the underground resource at the site, it has been able to recover gold and silver from residual leaching on site.

In the company’s management discussion and analysis, released on August 28, it reported that it had produced 889 ounces of gold and 42,363 ounces of silver from Cap-Oeste during the first six months of 2024.

According to the company’s website, a 2018 mineral resource estimate for Cap-Oeste reported measured and indicated values of 704,300 ounces of gold and 21.43 million ounces of silver from 10.56 million metric tons of ore with average grades of 2.07 grams per metric ton (g/t) gold and 63.2 g/t silver.

Acquired in a deal with Pan American Silver (NYSE:PAAS,TSX:PAAS) in 2017, the Calcatreu project is located in Argentina’s Rio Negro province and covers approximately 90,000 hectares. A 2018 mineral resource estimate for Calcatreu reported measured and indicated values of 669,000 ounces of gold and 6.28 million ounces of silver from 9.84 million metric tons of ore with average grades of 2.11 g/t gold and 19.8 g/t silver.

The company’s most recent news came on Thursday when it announced it had received full and final permitting approval to advance with construction at Calcatreau. The company is working to complete studies to develop heap leach operations at the site.

3. Trilogy Metals (TSX:TMQ)

Company Profile

Weekly gain: 54.44 percent
Market cap: C$238.14 million
Share price: C$1.39

Trilogy Metals is a polymetallic exploration and development company working to advance its Upper Kobuk mineral projects in Northern Alaska, US, which it owns in a 50/50 joint venture with South32( ASX:S32,OTC Pink:SHTLF).

Its most advanced asset is the Arctic copper, zinc, lead, gold and silver project, which is in the feasibility stage. In an updated feasibility study from February 2023, the company reported annual payable production volumes of 148.68 million pounds of copper, 172.6 million pounds of zinc, 25.75 million pounds of lead, 32,538 ounces of gold and 2.77 million ounces of silver.

After tax, the study pegged the net present value at US$1.11 billion, with an internal rate of return of 22.8 percent and a payback period of 3.1 years.

Trilogy’s other key asset is the Bornite copper-cobalt project located 25 kilometers southwest of its Arctic project. The site hosts widespread mineralization and has seen historic exploration dating back to the 1950s. A January 2023 technical report estimates inferred resources at 6.51 billion pounds of copper from 202.7 million metric tons of ore with an average grade of 1.46 percent.

Trilogy’s share price rose this past week, although the company’s most recent news was its Q3 results in October.

4. Jervois Global (TSXV:JRV)

Company Profile

Weekly gain: 50 percent
Market cap: C$30.02 million
Share price: C$0.015

Jervois Global is working to advance a global portfolio of nickel and cobalt projects. It owns the Idaho Cobalt Operations in the US, at which it suspended mine construction in 2023 due to low cobalt prices.

According to Jervois, the Idaho Cobalt Operations host the largest US cobalt resource. A 2020 feasibility study shows that they have a measured and indicated resource of 50.1 million pounds of cobalt from 5.24 million MT grading 0.44 percent, with inferred values of 12 million pounds of cobalt from 1.57 million MT grading 0.35 percent.

The company announced in June 2023 that it had entered into a US$15 million agreement through the US Department of Defense’s Defense Production Act for exploration activities at its property.

In its most recent announcement from the project, released on July 31, Jervois reported that extensional drilling at the Idaho Cobalt Operations had shown positive resource growth potential, with cobalt, gold and copper mineralization at depth. In the announcement, the company provides a highlighted result of 1.1 percent cobalt, 1.18 percent gold and 0.69 g/t gold over 1.8 meters.

Shares in Jervois Global gained this past week, but the company did not release any news.

5. Adex Mining (TSXV:ADE)

Weekly gain: 50 percent
Market cap: C$10.16 million
Share price: C$0.015

Adex Mining is maintaining its past-producing Mount Pleasant polymetallic project in Charlotte County, New Brunswick, Canada.

Mount Pleasant is composed of 102 mining claims covering 1,600 hectares., and hosts two primary zones of mineralization. According to the company’s website, the Fire Tower zone is home to deposits with indicated grades of 0.33 percent tungsten and 0.21 percent molybdenum from 13.49 million metric tons. The North Zone hosts indicated grades of 0.38 percent tin, 0.86 percent zinc, and 64 parts per million iridium.

While shares of Adex saw gains this week, the company has not released 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 1:00 p.m. EDT on November 8, 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

Keep Reading
By
Investing

Tech 5: Bitcoin Hits All-time High, Tech Stocks React to Trump Win

By

The United States’ 47th Presidential election concluded this week with the appointment of Donald Trump to his second term in the White House after a tumultuous race.

Fueled by the promise of lower corporate taxes and the Federal Reserve’s decision to slash interest rates by another 25 basis points, the stock market soared, with both the S&P 500 and Nasdaq Composite indexes setting record highs.

Bitcoin also surged to a new record high above US$77,000, bolstered by the Republican party’s gains in the midterm elections. With the Senate secured and the House of Representatives within reach, the prospect of a more favorable regulatory landscape for cryptocurrencies in 2025 has ignited investor enthusiasm.

As the dust settles on the 2024 presidential election, the full extent of Trump’s policies on the economy remains to be seen.

1. Big Tech reacts to Trump’s election win

The election of Trump to the White House on November 6 has been perceived as a victory for CEOs, particularly those in the tech industry who have maintained close ties with policymakers. With promises to lower corporate taxes and loosen regulations, the new administration could provide a more favorable business environment.

That sentiment was reflected in the stock market this week, with a handful of tech companies witnessing growth of well over 5 percent. After replacing Intel (NASDAQ:INTC) in the Dow Jones Industrial Average on November 1, NVIDIA (NASDAQ:NVDA) surpassed Apple (NASDAQ:APPL) to become the world’s most valuable company for the third time this year.

It achieved a market capitalization of US$3.43 trillion compared to Apple’s US$3.38 trillion as markets wrapped on Tuesday (November 5) and reached a historic valuation of US$3.6 trillion on Wednesday (November 6). Its share price is up 7.28 percent for the week.

In addition to NVIDIA’s gains, tech giants Broadcom (NASDAQ:AVGO) and Amazon (NASDAQ:AMZN) also experienced significant share price increases of 8.29 percent and 5.87 percent, respectively. Meanwhile, shares of Apple, Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META) and Taiwan Semiconductor (NYSE:TSM) saw more modest gains of 2.63 percent, 3.13 percent, 4.47 percent and 3.87 percent.

Investors may be optimistic after a Reuters report suggested that Trump may be planning to dial back antitrust measures enforced by the Biden administration and that he may even disrupt the proposed breakup of Google (NASDAQ:GOOGL), whose share price is up 5.09 percent for the week.

2. Bitcoin sets new price record

After a slump early in the week, Bitcoin reached a new all-time high after Trump was elected as the 47th president of the US in the early hours of Wednesday.

In a presidential race initially considered the closest in modern US history, the Republican candidate took an early lead by securing votes in North Carolina, Georgia and Pennsylvania, three out of seven key swing states.

At 5:34 AM EST on November 6, the Associated Press reported that Trump had won over his fourth swing state, Wisconsin, securing enough electoral college votes to be declared the winner.

As Americans cast their ballots and Trump’s prospects improved, the price of Bitcoin rose in tandem. It went from around US$68,750 on the morning of November 5 to over $75,000 just after 1:36 AM EST on November 6, surpassing its previous record of $73,000 set in March 2024.

Bitcoin performance, October 10 to November 7, 2024.

Chart via CoinGecko.

On November 6 at 5:35 AM EST, after Trump declared victory, Bitcoin was trading at around US$73,000. The price continued to rise as the markets opened on Wednesday, briefly breaking past US$76,000 before retreating slightly as Western markets closed. It traded in the US$74,000 range in Asia and retook US$76,000 at around 11:00 AM EST.

Unlike the short-lived rallies seen in recent weeks, Bitcoin has managed to maintain its gains so far. A Trump presidency is viewed as beneficial to the cryptocurrency industry, as his campaign promised to loosen regulations and replace regulators like US Securities and Exchange Commission Chairman Gary Gensler, who has had a contentious relationship with the industry’s major players.

Republicans also took a majority of the US Senate and are on track to take the House of Representatives, although the votes are still being tallied. With a more “crypto-friendly” political landscape, industry insiders are optimistic that innovation and adoptions will accelerate.

Bitcoin closed the week over 10 percent higher at US$76,739, slightly below its weekly high of US$77,239 reached earlier on Friday (November 8).

3. Tesla shares hit year-to-date high

Next to Bitcoin, Tesla (NASDAQ:TSLA) is the biggest winner after Trump’s win this week.

Its share price gained over 13 percent on Wednesday morning and is up over 31 percent for the week, trading at US$321.22, its highest level year-to-date.

Tesla performance, November 4 to 8, 2024.

Chart via Google Finance.

Tesla CEO Elon Musk actively supported Trump in the weeks leading up to the election, contributing roughly US$130 million to his campaign efforts. In September, Trump indicated his intention to offer Musk a role in the White House, focusing on streamlining government operations and cutting federal spending.

To achieve this, Musk has boldly predicted that he could eliminate at least US$2 trillion of federal spending. While he hasn’t specified exactly where these cuts would come from, reports suggest that Musk and Trump may target agencies responsible for regulating industries in which Musk’s companies operate. These agencies could include the Federal Aviation Administration (FAA), the Federal Communications Commission (FCC) and environmental agencies.

During his campaign, Trump also expressed intentions to reverse tax incentives and rebates for electric vehicle (EV) purchases established during the Biden-Harris administration. Although this might seem counterproductive to Musk’s Tesla operations, the CEO could be focusing on his other venture, SpaceX, which has forged strong ties with the federal government’s defense agencies.

In March it was reported that SpaceX had signed a contract worth US$1.8 billion in 2021 to build spy satellites with the National Reconnaissance Office, and the company won contracts for nine launches under the National Security Space Launch (NSSL) Phase 3 Lane 1 program on October 18.

However, issues between the FAA and SpaceX — such as a US$633,009 fine imposed by the agency in September for procedural violations related to Falcon 9 launches in 2023 as well as its decision to delay the test launch of SpaceX’s Starship mega rocket — have created tension between Musk and the agency.

Musk may have a vested interest in reducing the FAA’s regulatory oversight of SpaceX’s operations, as diminishing the agency’s funding could potentially clear a path for expanded commercial space exploration.

4. Super Micro shares audit update, reports preliminary earnings

Super Micro Computer (SMCI) (NASDAQ:SMCI) announced preliminary Q1 2025 results on Tuesday (November 5) with a renewed net sales forecast of US$5.9 billion to US$6 billion, missing analysts’ expectations of US$6.79 billion and slightly below the company’s previous guidance range of US$6 billion to US$7 billion.

The company also provided Q2 guidance, projecting net sales in a range of US$5.5 billion to US$6.1 billion for the quarter ending on December 31, 2024. This news led to a share price drop of over 24 percent on Wednesday morning.

The company also shared an update from an independent Special Committee formed to investigate concerns over the company’s accounting records initially raised by EY. In a statement, the committee said it found no evidence of fraud or misconduct by management or the Board of Directors in its investigation, and recommended that SMCI conduct “a series of remedial measures…to strengthen its internal governance and oversight function.’ A full report is expected next week.

Meanwhile, SMCI is working to file its delayed Form 10-K and regain compliance with Nasdaq listing requirements. After being issued a notice of noncompliance, companies have 60 days to either file the Form 10-K or submit a plan to regain compliance. If SMCI fails to do either and is delisted from the Nasdaq, it faces potential early repayment of up to US$1.725 billion in March 2029 of convertible notes.

5. Arm stumbles on Q2 revenue growth

Arm Holdings (NASDAQ:ARM) released its Q2 FYE25 results on November 6 (Wednesday), showing that revenue growth slowed to just 5 percent in the September quarter, down from 39 percent in the previous quarter.

This slowdown in revenue growth was primarily attributed to a decline in licensing revenue, the fees that Arm receives from companies that use its IP to develop their own chips. Licensing revenue was US$330 million in Q2, compared to US$472 million in Q1, a difference of 43 percent.

Arm Holdings performance, November 4 to 8, 2024.

Chart via Google Finance.

However, the decline was partially offset by royalty revenue, which increased by over 10 percent to US$514 million. Royalty revenue refers to the fees that Arm receives from companies that use its IP in products that are sold to end consumers.

While Arm’s share price initially dipped following the report, it rebounded strongly, up nearly 10 percent midday on Thursday (November 7). This positive shift likely reflects investor confidence in Arm’s strong position within the tech industry. The company collaborates with major tech players like Apple, Samsung (KS:5930) and NVIDIA, and its chips are essential components in a wide range of consumer and industrial electronics. The company concluded the week with its share price rising by 5.16 percent.

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

This post appeared first on investingnews.com

Keep Reading
By
Investing

High Grade Rock Chip Assays Confirm New Gold Discoveries at Leinster South

By

Metal Hawk Limited (ASX: MHK, “Metal Hawk” or the “Company”) is pleased to provide an exploration update relating to its 100% owned Leinster South Project, located 30km south of Leinster, in the world-class Agnew-Lawlers region of the eastern goldfields in Western Australia.

  • Gold assays up to 62 g/t Au returned from first batch of rock chip samples at the Thylacine Prospect, located 1.5km ESE from Siberian Tiger.
  • Several rock chip samples at Thylacine return high-grade gold from multiple sub-parallel quartz veins over a broad area, including:
    • 24DR611: 62.3 g/t Au
    • 24DR617: 30.4 g/t Au
    • 24DR627: 27.0 g/t Au
    • 24DR633: 20.2 g/t Au
    • 24DR715: 27.3g/t Au
    • 24DR613: 12.1 g/t Au
    • 24DR627: 10.5 g/t Au
    • 24DR616: 9.6 g/t Au
    • 24DR602: 8.0 g/t Au
  • Follow-up sampling at Tysons prospect returns high-grade gold in numerous samples of quartz veining, including:
    • 24DR537: 84.0 g/t Au
    • 24DR535: 21.5 g/t Au
    • 24DR564: 10.9 g/t Au
    • 24DR536: 6.2 g/t Au
  • No historical drilling at Siberian Tiger, Thylacine or Tysons.
  • Plans for drilling advanced with heritage survey scheduled for early 2025.
  • Field mapping continues to discover new zones of outcropping gold mineralisation, including the new untested Bengal Tiger prospect.

Following the discovery of gold at Siberian Tiger only three months ago (see ASX announcement 5 August 2024), Metal Hawk’s field activities at Leinster South continue to encounter more significant outcropping high grade gold mineralisation at new prospects. As well as expanding the mineralised footprint of Siberian Tiger, the latest round of assay results successfully followed up the recent high grade rock chip result (22 g/t Au) at Tysons prospect, with several additional sites of quartz vein hosted gold mineralisation recorded (up to 84g/t Au) along the north-south trending granite-greenstone contact. Additionally, spectacular new gold assay results (up to 62 g/t Au) have confirmed the Thylacine prospect, located 1.5km to the ESE of Siberian Tiger, as another high-grade vein system at Leinster South.

Metal Hawk’s Managing Director Will Belbin commented:“In addition to the high-grade gold rock chips at Siberian Tiger, these outstanding new assay results from Thylacine and Tysons suggest that we are on the verge of multiple significant gold discoveries at Leinster South. It is incredible that there has not been any previous gold exploration, sampling or drilling at any these prospects. This is a huge opportunity for Metal Hawk and I believe there is potential for a new high-grade gold camp at Leinster South.” 

THYLACINE

The Thylacine prospect is located approximately 1.5km ESE of Siberian Tiger on the parallel northern ESE trending greenstone belt. Initial rock chip samples from Thylacine have returned several high grade gold assays in multiple sub-parallel NW trending quartz veins. A total of 12 mineralised quartz veins have been mapped and broadly sampled, with seven samples grading greater than 10 g/t Au. The average grade of the 38 available quartz vein sample assays is 7 g/t Au. Additionally, ten rock chip assay results are pending that cover the northwestern two veins at the prospect. The mineralisation at Thylacine is very similar to Siberian Tiger, with abundant iron oxides often forming sheets or banding (stripes) and local zones of brecciation. High grade results from initial sampling at Thylacine are shown on Figure 2 below (for a full list of results see Table 1).

Click here for the full ASX Release

This post appeared first on investingnews.com

Keep Reading
By
Editor's Pick

Elon Musk joined Trump call with Ukraine’s Zelensky after US election

By

Tech tycoon Elon Musk joined a call between US President-elect Donald Trump and Ukrainian President Volodymyr Zelensky the day after the presidential election, according to a source with knowledge of the situation.

Zelensky previously said on X that he called Trump on Wednesday and congratulated him on “his historic landslide” win. “We agreed to maintain close dialogue and advance our cooperation. Strong and unwavering US leadership is vital for the world and for a just peace,” Zelensky wrote at the time.

Trump’s victory comes at a precarious moment in the conflict for Kyiv as Russia makes gains in the eastern Donbas region, which Russian President Vladimir Putin aims to capture in full.

Throughout his presidential campaign, Trump cast doubt on continued US commitment to Kyiv as the war drags on more than two and half years after Russian forces invaded. He has also made comments that suggest the US could pressure Ukraine into an uneasy truce with Russia.

Musk – whose pro-Trump super PAC spent more than $118 million in the 2024 campaign – has pitched himself to lead a broad effort to slash spending inside the federal government. His inclusion on Trump’s call with Zelensky raises questions about what his influence will look like in the incoming administration.

In Ukraine, Musk’s Starlink internet service has provided a significant frontline advantage to Ukraine’s smaller military since the 2022 invasion, permitting its forces to share real-time drone feeds between units, and communicate in areas where combat has disrupted cellphone service.

But there have also been concerns about Musk’s reported links with hostile foreign leaders.

A September Wall Street Journal report said the SpaceX founder and Russian President Vladimir Putin have been in “regular contact” since late 2022, saying they had discussed “personal topics, business and geopolitical tensions.”

It raised national security concerns as SpaceX’s relationships with NASA and the US military may have granted Musk access to sensitive government information and US intelligence.

Musk did not respond to the Journal’s requests for comment. Kremlin spokesman Dmitry Peskov told the newspaper that Musk and Putin have only had one telephone call in which they discussed “space as well as current and future technologies.”

This is a developing story and will be updated.

This post appeared first on cnn.com

Keep Reading
By
Editor's Pick

Trump claims Kim Jong Un ‘misses’ him. But he faces a very different North Korean leader this time around

By

No United States leader has handled relations with North Korea quite like Donald Trump.

The former president went from threatening Kim Jong Un with “fire and fury” if the North Korean leader continued testing missiles, to becoming his pen pal, meeting him in a series of unprecedented summits, and boasting that the two had fallen “in love.”

Now, that unlikely friendship will be put to the test. The former president is set to return to the White House at a moment of acute alarm among the US and its allies about Kim and the threat posed by his regime.

Pyongyang is believed to have sent thousands of troops and tons of munitions to Russia as Moscow wages war on Ukraine, in what Western leaders see as a major escalation. Days before Trump won the US presidential election, it lobbed another threat – testing an intercontinental ballistic missile with the range to strike anywhere in the United States.

On the campaign trail, Trump said Kim “misses” him and implied the country would not be “acting up” when he returns to office.

But the second Trump administration will face an emboldened and arguably more dangerous North Korean leader.

Kim – and potentially his arsenal – are now bolstered by burgeoning ties with Moscow, and he has hardened his stance toward the US and its ally South Korea after the failed diplomacy of the last Trump era.

That makes reaching an agreement between the two to rein in North Korea’s weapons program all the more challenging – and raises questions of whether Trump, known for his impulsive foreign policy, might seek to shift the goal posts on what the US wants to see from North Korea, experts say.

‘Closest comrade’

A series of 2018-19 meetings between Trump and Kim in Singapore, Hanoi and the demilitarized zone between North and South Korea created unprecedented optics for both leaders.

Then, the president of the world’s democratic superpower was pictured smiling and posing for photos alongside a typically isolated autocrat known for his ruthless rule over his people and drive to build sanctions-defying weapons as a means of preserving his regime.

For Trump, the meetings were a bid to accomplish what US presidents have repeatedly sought to do in other ways – curb Pyongyang’s rogue nuclear program. For Kim, they were both a chance to try to get relief from heavy international sanctions – and a rare opportunity to be granted such prestige on the world stage.

But talks ended without any breakthrough – with an abrupt ending to a 2019 summit in Hanoi amounting to what experts say was a huge loss of face for Kim.

Though the leaders met once more that year, Pyongyang has since refused to reengage with the US, experts say, and restarted weapons testing it had appeared to pause alongside that dialogue. While it has yet to initiate a nuclear test since 2017, Kim has recently vowed to increase the country’s number of nuclear weapons “exponentially.”

“The circumstances in which we must deal with North Korea have changed fundamentally compared to five years ago,” said Rachel Minyoung Lee, a senior fellow at the Stimson Center think tank in Washington.

She pointed to the “higher price tag” on North Korea’s nuclear and missile programs due to further advancements since Hanoi, as well as North Korea’s “foreign policy reorientation” after the collapse of that summit “set off a fundamental skepticism within the North Korean leadership circle about the strategic value of the United States.”

Kim over the past year has raised international concern by breaking with decades of policy toward South Korea – classifying it as a “permanent enemy.” He’s called on his army to accelerate war preparations in response to “confrontation moves” by the US – actions that came as the Biden administration strengthened ties and increased military drills with South Korea and Japan.

And then there’s the deepening of ties with Russia. The North Korean leader has met with his “closest comrade” Russian President Vladimir Putin twice since last September and inked a major defense pact in June.

Western officials have also warned of what they see as an emerging anti-West ‘axis’ of China, North Korea and Iran with Russia – a trope that, whether actualized or not, is likely to be welcomed by Kim as he seeks to reduce isolation and gain international clout.

“From Kim’s point of view, he has a lot more to gain economically, militarily, and diplomatically by aligning (North Korea) with China and Russia than by reengaging with the United States when the returns are so uncertain,” said Lee.

New breakthrough

All that raises the stakes for how Trump would engage Kim – and calls into question whether the autocrat would even be willing to sit down again – were Trump looking to rekindle the bromance.

But it was “unclear” how Kim would respond to new talks and if he would “get back to the pledge of denuclearization,” O’Brien said, referring to past pledges that never came to fruition. For the US, asking for anything less than denuclearization would be a “hard position” to take, he added.

In response to Trump’s comments that Kim missed him, North Korean state media over the summer said that they “do not care” who takes office in the US. The official position from Pyongyang appears to be that, regardless of what happens in the US, Kim’s nuclear weapons policy will continue.

Still, Kim’s fundamental goals – recognition by the United States as a de facto nuclear power and sanctions relief for economic development – are seen by many observers to remain.

That means the North Korean leader may look for benefit in Trump’s return.

Despite the Pyongyang leader seeing the US as untrustworthy, “Trump’s reelection is likely to encourage Kim Jong Un considerably – at the very least, it would allow him to reassert his personal friendship with Trump … and communicate with him,” said Eul-Chul Lim, director of the North Korea Research Center at Kyungnam University’s Institute for Far Eastern Studies (IFES) in Seoul.

Kim “is likely to capitalize on the fact that a stronger North Korea-Russia alliance would be beneficial to his bargaining power with the United States,” he said.

Whether Trump is interested in deal-making – and what kind of deal – is another question.

Some observers have raised concern that he may seek to water down US demands in favor of getting a coveted deal – or else could ramp up tensions again.

“Trump can be unpredictable… and his style during his first term is not an entirely accurate indicator of future behavior. We will have to see if Trump 2.0 still wants to cap and eventually roll back North Korea’s nuclear weapons program,” said Duyeon Kim, a Seoul-based adjunct senior fellow at the Center for a New American Security.

“The worst scenario is if Kim convinces Trump 2.0 to scrap denuclearization and even be okay with North Korea advancing its nuclear weapons capability indefinitely,” she said.

Geopolitical fault lines

But hardening geopolitical fault lines since Trump’s last term in office have also fundamentally changed the ground upon which any US-North Korea engagement could be laid.

Putin’s war in Ukraine has driven Russia closer not only to North Korea but also to China – the US’ main geopolitical rival.

Even as Trump has expressed admiration for Putin – and a skeptical view of US alliances such as those with NATO, Japan and South Korea – there are likely to be limits to how far he can reshape those relationships if he seeks to counter Beijing.

Trump will also be dealing with a very different South Korea, where a conservative Yoon Suk Yeol government has emerged as a strong US partner in ramping up deterrence against North Korea – and is unlikely to encourage Trump to meet with Kim without a clear path to Pyongyang’s denuclearization.

“The likelihood of the US abandoning South Korea is low, not least given the gravity of the threat from North Korea, Russia, and, of course, China,” said Edward Howell, a lecturer in politics at the University of Oxford in the United Kingdom, who focuses on the Korean Peninsula.

And “even if leader-to-leader dialogue may catalyze some very short-term reduction in tensions – it is difficult to believe that Pyongyang will make any significant concessions on the ‘treasured sword’ of its nuclear program,” he said.

This post appeared first on cnn.com

Keep Reading
By