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February 18, 2025

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This Is How I Crush The Benchmark S&P 500 In Any Market

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It was another mildly bullish week as our major indices climbed very close to new, fresh all-time highs. We also saw a return to growth stocks as we approached breakout levels, which is a good signal as far as rally sustainability goes. Despite this, there remain reasons to be cautious and I’ll point out a couple of those reasons below.

Negative Divergences

The S&P 500 ($SPX) and NASDAQ 100 ($NDX) both seem to be losing bullish price momentum on their respective weekly charts, which can be seen below:

$SPX

$NDX

The price momentum on both indices is slowing and eerily similar to late 2021, just before the cyclical bear market of 2022. Let me be clear that I do NOT believe we’re heading into a cyclical bear market. I don’t see that extent of potential weakness ahead. I do see increased risks of a 5-10% drop, however, and that’s why I’m cautious.

Is This Current Rally Truly Sustainable?

Sometimes a little common sense and perspective goes a very long way. Over the last 75 years, the S&P 500 has averaged gaining 9% per year. So when you go through short-term periods that show gains well in excess of that 9% average, you should at least be thinking there’s the risk that the S&P 500 will fall back and “reversion to the mean”, which is a mathematical concept that describes the tendency of extreme results to move closer to the average. We’ve seen a tremendous rally since the summer correction of 2023. Let’s look at the last 68 weeks (since the correction low in late-October 2023) of return on both the S&P 500 and NASDAQ 100 and compare it to the history of 68-week rates of change (ROC) to gain a sense of this current rally and its sustainability:

$SPX

$NDX

You can look at these two charts and make your own judgement and draw your own conclusions, but, outside of the late-1990s, 68-week ROCs above 50% on the S&P 500 and 60% on the NASDAQ 100 suggest a short-term pullback is more likely, not guaranteed.

Now The Good News

While bullish price action and momentum may seem to be slowing, the long-term monthly PPO on both of these indices is definitely on the rise, which, in my view, limits any short-term downside to the 20-month EMA. I’ll just show the S&P 500 monthly chart, but this will highlight the likelihood that any future selling, if it occurs (no guarantee), holds 20-month EMA support:

$SPX

This chart takes us back 25 years to the turn of the century. The yellow areas highlight poor (below zero) or declining PPOs. During these periods, I’d ignore 20-month EMA support and be cautious. However, the blank periods highlight a rising monthly PPO, during which we rarely see price fall below the rising 20-month EMA. This is where we currently stand. Most pullbacks over the last 25 years, when the monthly PPO is above zero and rising, have fallen short of actual 20-month EMA tests. In other words, we should view a 20-month EMA test as a “worst case” scenario.

The next market decline should be viewed as an OUTSTANDING opportunity to enter this secular bull market.

Stick With Strength

Since we began rolling out our Portfolios quarterly, we’ve had to overcome cyclical bear markets in Q4 2018 (trade war), March 2020 (pandemic), and the first 9-10 months of 2022 (rising inflation and rising interest rates), and a 3-month correction during the summer of 2023. We’ve remained fully invested and have CRUSHED the S&P 500. In fact, below is a graph that highlights our Model Portfolio performance since its inception in November 2018 (in the middle of the trade war!) through the end of January 2025:

We’ve demonstrated the best way to beat the S&P 500, which is to invest in leading relative strength stocks. It’s the only proven method that’s worked for us at EarningsBeats.com. We “draft” our 10 favorite relative strength stocks in various sectors and industry groups and hold them for one entire earnings cycle, then rinse and repeat. Our last quarter’s “draft” picks have annihilated the S&P 500, +15.15% vs. 3.34%.

You can check out our Model Portfolio holdings for the last 3 months below:

8 of our 10 Model Portfolio stocks outperformed the S&P 500, a few by a very wide margin. Owning relative strength stocks like PLTR, CLS, and TPR will completely carry a portfolio and lead to outstanding returns.

Our “quarterly” results are calculated over the following periods:

  • February 19 – May 19
  • May 19 – August 19
  • August 19 – November 19
  • November 19 – February 19

The reason we calculate our quarterly returns using the above time periods is that we select our stocks each quarter on February 19, May 19, August 19, and November 19. By the time we reach these dates, most key market-moving companies have reported their quarterly results and fundamental data like earnings is factored into our portfolio selections just as much as technical considerations. That fundamental/technical combination is one factor that separates us from others and we do this because my background is public accounting. I don’t stray far from my core beliefs. I believe management’s execution of their business strategies/plan and beating revenue and EPS estimates is a huge component of its stock’s upside potential.

On Monday, February 17th, we’re holding our next DRAFT. We will be announcing the 10-equal weighted stocks in each of our portfolios designed to beat the S&P 500 over the next 3-month period. You’re quite welcome to join us. It might change your way of investing and improve your results immediately. CLICK HERE for more information and to register!

Happy trading!

Tom

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The Best Five Sectors, #7

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Shifting Sands in the Top Five

At the end of last week, there were some interesting shifts in sector positioning, though the composition of the top five remained unchanged. Let’s dive into the details and see what the Relative Rotation Graphs (RRGs) tell us about the current market dynamics.

At the close of trading on Valentine’s Day (February 14th), we saw a bit of a love-hate relationship playing out among the sectors. Here’s how they stacked up:

  1. (3) Communication Services – (XLC)*
  2. (1) Consumer Discretionary – (XLY)*
  3. (2) Financials – (XLF)*
  4. (5) Technology – (XLK)*
  5. (4) Industrials – (XLI)*
  6. (6) Utilities – (XLU)
  7. (7) Consumer Staples – (XLP)
  8. (9) Real Estate – (XLRE)*
  9. (10) Energy – (XLE)*
  10. (8) Health Care – (XLV)*
  11. (11) Materials – (XLB)

Communication Services took the top spot from Consumer Discretionary, pushing that sector down to #2 and Financials down to #3. Technology and Industrials swapped places four and five.

We also saw some reshuffling in the bottom half of the ranking. Utilities (XLU) held steady, while Consumer Staples (XLP) maintained its #7 spot. Real Estate (XLRE) and Energy (XLE) each climbed a rung, landing at #8 and #9, respectively. Health Care (XLV) tumbled from #8 to #10, and Materials (XLB) remained firmly planted in the basement at #11.

Weekly RRG: A Familiar Picture

The weekly RRG paints a similar picture to last week, with a few notable developments:

Consumer Discretionary still has the highest reading but is heading south inside the leading quadrant. Communication Services is losing some momentum but maintaining its relative strength. Despite being in the weakening quadrant, Financials has hooked back up—a positive sign. Technology is almost stationary, teetering on the edge of improving and leading.

Perhaps the most intriguing action is happening in the lagging quadrant, where most tails hook up slightly. While not all have achieved a positive heading yet, it’s a sign of potential improvement on the horizon.

Health Care is the lone wolf in the improving quadrant, a positive development. However, its low reading on the JdK RS-Ratio scale suggests it still has some work.

Daily RRG: Tech’s Time to Shine?

Switching gears to the daily RRG, we get a clearer picture of why some sectors are jockeying for position:

Technology flexes muscles with a strong, long tail in the improving quadrant.

Consumer Discretionary is heading in the opposite direction, moving into lagging territory.

Communication Services is holding onto its relative strength despite losing some momentum.

Financials, Health Care, and Materials are all in the lagging quadrant with negative headings.

Utilities are showing apparent strength, moving into the leading quadrant with gusto.

Spotlight on the Top Five

Let’s get into the trenches and examine each of our top performers:

Communication Services (XLC)

XLC is fulfilling expectations by emerging from its flag consolidation pattern and moving towards new all-time highs. It is also enhancing its standing on price and relative charts, which are bullish indicators of the sector’s ongoing supremacy.

Consumer Discretionary (XLY)

XLY is indicating some concerning trends. It has established a possible double top, which will be validated if the price falls below $218, the low from five weeks ago. The relative strength line mirrors this formation, and the RRG lines are declining. Considering its earlier strength, a notable decline may take a while to materialize, but it is certainly one to monitor closely.

Financials (XLF)

Financials are holding their ground admirably. Last week saw a break above the previous high on a closing basis — something that didn’t happen in the two weeks prior. The raw RS line also pushes against (and possibly above) its previous high. If this improvement continues, expect Financials to maintain its top-five status.

Technology (XLK)

Tech is making a comeback, overtaking Industrials for the #4 spot. Price-wise, we’re still grappling with overhead resistance around $242, but we closed at the week’s high — a positive sign. The relative strength is moving higher off the lower boundary, and RRG lines continue to climb (with a slight dip in momentum). I’m keeping a close eye on that $242 level — a break above could signal the start of a new leg up for the sector.

Industrials (XLI)

Industrials are living up to our expectations as the weakest link in the top five. It’s dropped from #4 to #5, thanks to continued weakness in relative strength. The RRG lines point lower, suggesting it’s only a matter of time before XLI drops out of the top five. Price-wise, we’re still within the rising channel, but a lower high has formed — not a great sign. Support comes in around $134 (rising support line) and $132-130 (late December low). A break below these levels could trigger a more significant decline.

Portfolio Performance Update

Despite the changing conditions, our RRG portfolio remains robust. Since its inception, it has achieved a 4.88% gain, while the SPY benchmark has only increased by 4.29%, resulting in an outperformance of 59 basis points.

#StayAlert and enjoy your long weekend. –Julius

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Cobalt Reserves: Top 3 Countries

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Cobalt is a critical material for the energy transition, with increased demand in recent years due to its essential role in lithium-ion batteries for electric vehicles (EVs), energy storage and other technologies.

Cobalt is an important component in the popular nickel-manganese-cobalt (NMC) battery. Despite the existence of cobalt-free lithium-iron-phosphate (LFP) batteries and the potential for disruptive new battery technologies, demand for cobalt is expected to rise and market watchers are keen to find out where it may be mined in the future.

That’s why it’s important to review cobalt reserves, which is how much economically mineable cobalt a country holds. By keeping an eye on these numbers, it’s possible to guess which countries may become — or continue to be — cobalt powerhouses.

The Democratic Republic of the Congo (DRC) is the leader in cobalt output, producing nearly two-thirds of the world’s cobalt. However, the dominance of Chinese refining and processing — estimated at 75 percent of global capacity — poses challenges for Western nations, particularly the European Union (EU), which is striving for strategic autonomy in critical minerals.

Efforts like the 2023 EU Battery Regulation aim to address these issues by mandating recycled material targets for batteries, but the path to reducing dependency on China remains complex.

In recent years cobalt production globally has reached record highs, creating a large supply glut. This cobalt surplus underscores a paradox in the market: while demand for the metal is forecast to grow significantly, oversupply has caused prices to plummet. The surge in production, largely fueled by the DRC’s expanding output and China’s vertically integrated supply chain, has led to a market imbalance.

Despite these hurdles, market watchers remain optimistic about cobalt’s long-term outlook, driven by continued demand for EVs and energy storage.

Top cobalt reserves by country

Understanding cobalt reserves and identifying key production regions is crucial for investors and industry stakeholders. Here’s an updated look at cobalt reserves by country using the latest data from the US Geological Survey.

1. Democratic Republic of the Congo

Cobalt reserves: 6,000,000 metric tons

The Democratic Republic of the Congo is the country with the largest cobalt reserves by far, with 6,000,000 metric tons of the battery metal in the ground. The world’s largest cobalt producer continues to maintain its spot at the top of the rankings, producing over 70 percent of the global cobalt supply and influencing the whole EV battery industry.

With this stature comes the DRC’s share of both internal and external turmoil. Cobalt mining in the DRC has been linked to human rights abuses and child labor due to widespread unregulated artisanal mining, which remains a key livelihood for many.

Efforts to regulate the sector include the ASM Cobalt Standard, approved in 2022, with pilot site assessments underway in collaboration with the Responsible Minerals Initiative and Global Battery Alliance.

Many of the DRC’s regulated cobalt mines are joint ventures between foreign companies, such as Swiss mining giant Glencore (LSE:GLEN,OTC Pink:GLCNF), and the country’s state-owned mining companies. China’s role in the DRC’s mining industry continues to grow, as many of the cobalt mines in the DRC are joint ventures with Chinese companies. Much of this cobalt is processed in China, with the country processing 65 percent of all cobalt worldwide, diminishing the DRC’s agency over its minerals.

2. Australia

Cobalt reserves: 1,700,000 metric tons

Australia retains its position as the second-largest holder of global cobalt reserves, with an estimated 1.7 million metric tons, accounting for about 15.5 percent of the world’s total.

Despite contributing only 2 percent of global cobalt production, the country is emerging as a key player, bolstered by ethical and environmentally sustainable mining practices that stand in contrast to the DRC.

Ardea Resources (ASX:ARL) is leading the charge with its Kalgoorlie nickel-cobalt project, described as the largest nickel-cobalt resource in the developed world. Located in Western Australia, the Goongarrie Hub deposit, part of this project, has proven reserves to support a 40 year mining operation, with annual production targets of 2,000 metric tons of cobalt and 30,000 metric tons of nickel.

Cobalt Blue Holdings (ASX:COB), another prominent player, is spearheading the Broken Hill cobalt mine and Kwinana refinery. The refinery is planned to produce battery-grade cobalt sulfate from third party feedstock and cobalt from Broken Hill. Despite the ongoing slump in cobalt prices, the company is strategically positioning itself to align with US and European policies aimed at reducing reliance on China.

3. Indonesia

Cobalt reserves: 640,000 metric tons

Indonesia holds 640,000 metric tons of cobalt reserves and has rapidly ascended as a significant cobalt producer. In just three years, the nation increased its cobalt production over tenfold, reaching 28,000 metric tons in 2024, up from only 2,700 metric tons in 2021.

This growth is primarily driven by Chinese-backed investments in high-pressure acid leach (HPAL) facilities, established after Indonesia banned nickel ore exports in 2019 to bolster its domestic EV supply chain. Key players in Indonesia’s cobalt sector operate four HPAL facilities, which process nickel laterite ore into mixed hydroxide precipitate, containing both nickel and cobalt.

However, HPAL methods have drawn criticism for their environmental impact, producing high emissions and waste and raising worker safety concerns. Fatal accidents and worker protests over conditions have been reported, prompting calls for improved standards. In response, in 2023, then-President Joko Widodo committed to stricter environmental regulations, including banning the dumping of tailings into the sea and mandating renewable energy for new smelters.

New President Prabowo Subianto created a task force to focus on domestic investment in downstream nickel processing, which is currently about 75 percent controlled by Chinese firms.

Indonesia’s trajectory as a cobalt supplier could diversify global markets. By 2030, Indonesia’s cobalt production could constitute 16 percent of global output, according to the Cobalt Institute.

More cobalt reserves by country

The DRC, Australia and Indonesia have the highest cobalt reserves, but many other countries also hold significant cobalt reserves. Here’s a quick look at where other nations stand:

  • Cuba — 500,000 MT
  • Philippines — 260,000 MT
  • Russia — 250,000 MT
  • Canada — 220,000 MT
  • Madagascar — 100,000 MT
  • Turkey — 91,000 MT
  • United States — 70,000 MT
  • Papua New Guinea — 62,000 MT

According to the US Geological Survey, the total world reserves figure for cobalt sits at 11,000,000 MT.

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


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Panelists: Gold “Essential” to Own as Volatility Rises and Reserves Diminish

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Gold has long served as a tool for investors to enhance their portfolios and protect against volatility.

At the Vancouver Resource Investment Conference, CEO Jay Martin engaged with industry experts Frank Giustra, Grant Williams, Alastair Still and David Garofalo to explore trends currently affecting the sector.

The group illustrated a market at a crucial juncture, with changing investor sentiment, geopolitical tensions and impending financial instability converging to potentially create the perfect storm.

Eastern vs. western perspectives on gold

Martin kicked the panel off by reviewing the last several years in the gold market. Looking back at 2019 and 2020, he noted that an influx of western investors helped pushed the metal’s price to phenomenal levels.

However, as the fallout from the COVID-19 pandemic drove inflation and interest rates, these investors became sellers, and gold started to sink. Capitalizing on these lower price points, central banks moved into the market and not only stabilized the price, but caused it to surge to all-time highs. By mid-2024, gold was 70 percent above its 2022 low.

Frank Giustra, CEO of the Fiore Group, largely agreed with Martin’s summary of gold’s activity, but added that while he thinks central bank buying will continue, there is more going on than meets the eye.

“What most people don’t understand about gold is that it’s not that the gold price is going up — it’s the fact that the fiat currencies that are measured against it are going down in value for a whole host of reasons,’ he said.

Giustra sees the US fiscal situation as a factor pushing the gold price up, and suggested that the situation is not only beyond repair, but also on the precipice of a crisis. “At some point there will be a US dollar crisis. It’s going to happen in our lifetimes, probably sooner rather than later, and when that happens, gold will go through the roof,’ he noted.

Grant Williams, author at Things That Make You Go Hmmm, expanded on Giustra’s point, outlining a critical difference between the east and west. “In the east, people don’t buy gold to sell it because the price has gone up. They buy gold to own it, and when they do sell it, it’s because they need to raise money for something important,” he said.

Williams also suggested that the west is at the end of a cycle. In his view, investors are attempting to maximize their returns in any way possible, and the system is corrupt and lacks consequences.

“This is going to come to a head. We’re in the middle of that process now, and at the end of that process, when these cycles fall over, the one thing you want to own is gold,’ he explained at the conference.

‘We are moving into the part of this where it’s not just a good idea to own gold anymore — it’s essential to own gold. And I think the price is going to reflect that in the coming 12 to 18 months.’

Tech stocks, Bitcoin distracting investors from gold

The panelists agreed that today’s investors are distracted as tech and Bitcoin dominate headlines.

While technology stocks still follow the typical market ebbs and flows, cryptocurrencies are a different story.

Giustra even compared the crypto space to a Ponzi scheme, pointing to one influential commenter who has suggested that Bitcoin will reach a value of US$13 million and gold will reach zero.

“These are ridiculous statements, but he needs to make those kinds of statements to keep the greed factor going. In any pyramid scheme, you need to have new buyers all the time to keep the game going,” he said.

Giustra also outlined how the cryptocurrency space has influenced the recent US election, spending US$245 million to influence Congress and the incoming president to ease regulations. This comes from a shifting narrative that implies crypto is a store of value. Giustra believes it’s an asset class in search of a purpose.

GoldMining (TSX:GOLD,NYSEAMERICAN:GLDG) CEO Alastair Still backed Giustra, saying that unlike gold, Bitcoins can be created every day, while gold’s limited supply is inherently connected to its store of value.

Still described how resource scarcity has been tested, outlining how geopolitically stable jurisdictions are diminishing. At the same time, mining companies have underinvested in exploration and been slow to find new assets.

“So while I think many investors are a little behind the curve,’ he explained at VRIC.

‘What we have seen is the major operating companies, they’re running deficits in their reserves, so they’re not replacing what they’re mining, and that’s because they’ve been underfunding exploration for years.’

Gold majors dealing with low grades, declining reserves

The systemic underfunding of exploration could be an opportunity for explorers and developers to start acquiring projects that will be sought by majors in the future. As it stands, miners are having to maximize extraction efforts.

“The operators are mining lower grades. That doesn’t necessarily mean they’re making more gold. They might make more profit, but they are actually potentially mining less gold,” Still commented.

David Garofalo, CEO, president, chairman and director at Gold Royalty (NYSEAMERICAN:GROY), agreed that operators are facing a challenge. “They’re facing a squeeze from tiny reserves, and reserves are down 40 percent. That’s demonstrated because the juniors haven’t had access to capital for over a dozen years,” he said.

He went on to explain that the entire industry is facing cost pressures.

All-in-sustaining costs have risen along with the price of gold, leading to a squeeze among producers. Much of this is due to inflation, which has resonated throughout the general economy.

“That’s why when you look at the leaders in our industry, their share prices are lower today than they were 30 years ago, when the gold price was a 10th of what it is today,” Garofalo said.

Rising costs and chronic underfunding are causing a dual squeeze. No new projects are in the pipeline, and he doesn’t expect the situation to reverse any time soon. Instead, he sees sees major companies like Barrick Gold (TSX:ABX,NYSE:GOLD) and Newmont (TSX:NGT,NYSE:NEM) with stagnating reserves and stalled output.

They can grow their share count, but not the gold they have access to, they’re not creating share value.

Which gold stocks to focus on now?

Garofalo suggested that the right space to be in now is the development stage. He thinks the majors are approaching a point where they need to add assets to their portfolios to continue to grow.

“The industry has basically been giving money back to investors for the last dozen years in dividends and share buybacks and whatnot, and not meaningfully back into the grassroots exploration to replace depleting reserves,” he said.

Likewise, Giustra backed the idea that the gold sector needs more consolidation.

“There are far too many companies burning a lot of overhead. The industry needs to consolidate. We need to deliver performance. And so it’s partially the industry’s fault; for a long time, it hasn’t performed. You need to perform economically with your deposits to qualify as an investment sector,” he said.

Williams added that it’s important for investors to understand what they are looking for. He said that gold can be “a get rich quick scheme, a get rich slow scheme and a stay rich scheme,” depending on where you are in the cycle.

“That shouldn’t be your only focus. You shouldn’t only be thinking about, ‘Where can I find the 10 baggers?’ If that’s really your mindset, crypto is the perfect vehicle for that, because there’s a 10 bagger produced every minute if you’re lucky enough to get in and get out. This industry is tangible,’ Williams said.

‘It’s things you pull out of the ground that are valuable.’

Stay tuned for more event coverage, including video interviews with many of the experts who attended.

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

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AI Defines 18 New Gold Targets at Music Well

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Augustus Minerals (ASX: AUG; “Augustus” or the “Company”) is pleased to announce the results from the application of Artificial Intelligence (AI) algorithms to generate and predict gold targets within the Company’s Music Well project.

SensOre consultants have applied artificial intelligence (AI), machine learning (ML) and other processing techniques using both public and proprietary datasets over the Music Well Project.

  • Cutting edge AI/ML algorithms targeting areas with minimal outcrop or under cover.
  • Integration of geological, geochemical and geophysical data sets into the AI process to define digital mineralisation fingerprints and generate AI-enhanced gold discovery predictions.
  • The AI SensOre study concluded that “Application of ML algorithms were found to model +1m oz Au potential with a high degree of predictability, and a total of 18 targets were identified within the Music Well project”:
    • Target 1 has the highest priority and is in the central north of the project with a strike length of 8km.
    • Target 1 trends NNW parallel to the general geological fabric as well as being intersected by several WNW trending cross structures.
    • Target 2 is located 4km east of the Wonder Deeps mine of Northern Star and is adjacent to a parallel WNW trending structure hosting Vault Minerals Great Western mine.
    • Target 2 is 1.4km in strike and 800m wide.
    • No historic drilling has been recorded at any of the target areas, highlighting the underexplored nature of the Music Well project.
  • Next Steps
    • Geological mapping and sampling over these new targets are scheduled for the next two weeks to gain further insight into the new targets.
    • Results from the January rock chip sampling program are expected shortly.

Andrew Ford, GM Exploration

“The work by SensOre has focussed our attention from areas of outcrop, toward regional targets which are obscured in many cases by thin cover and sheetwash. By applying groundbreaking technologies such as artificial intelligence has enabled the rapid prioritization of multiple targets. The definition of targets reflecting a specific geophysical and geochemical response which also focuses on key mineralised structural trends provides encouragement as to the robust nature of the targeting process”.

Background:

Augustus Minerals Limited( ASX: AUG) holds the exploration licenses and applications comprising the Music Well Gold Project (“Project”) located 35km north of Leonora in the Leonora/Laverton Greenstone Belt of Western Australia.

Music Well comprises ten exploration licences covering an area of 1,345km2, making the Project one of the largest exploration packages in the region (Figures 1 and 2).

The outstanding gold endowment of the Leonora-Laverton District of >28M ounces3 is illustrated by the numerous operating gold mines including the Darlot Gold Mine (~12km to the north), the King of the Hills Mine (~20km to the west), the Leonora Gold Camp (~30km to the southwest), and the Thunderbox Gold Mine (~20km to the west).

AI Enhanced Gold Exploration

The Company commenced a gold targeting exercise with SensOre_X Pty Ltd (SensOre) in November 2024, using their Artificial Intelligence (AI) and Machine Learning (ML) technologies to allow predictive analytics to generate targets for discovery of gold systems at the Music Well project.

SensOre is an industry leading technology services provider of AI/ML applications to the minerals exploration and mining industry. SensOre’s technologies have been developed over many years and involve the application of new computer assisted statistical approaches and ML techniques across the mineral cycle to provide the next generation of exploration discoveries. SensOre aims to become the top global minerals targeting company through deployment of big data, AI/ML technologies and geoscience expertise.

The Company committed to this new technological approach to gold exploration at Music Well to reinforce the existing generative exploration undertaken by the Company and deliver new “out of the box” targets for gold mineralisation over the project area, which has minimal historic exploration and limited outcrop.

In addition, the Company has inherited a large and impressive database of geological, geochemical, and geophysical information since acquiring Music Well Gold Mines Pty Ltd in late 2024. Having a variety of good quality datasets is considered a key attribute for the application of the AI/ML technology to accelerate the discovery process. The data layers used in the AI/ML processing include results from 2,478 Ultra fine fraction soil samples, 18,042 soil samples and 155 rock chip samples, in addition to detailed aeromagnetic and gravity data.

The Music Well project is contained within an area of influence (AOI) where a “data cube” was constructed covering the four 100k scale regional map sheets containing 80m x 80m cells. This data cube contains 1,440,000 cells x 1,618 variables where the AI/ML technology was applied.

The application of the machine learning approach applied by SensOre to the database of geochemical, geological and geophysical information compiled over the Company’s AOI has demonstrated the highly gold prospective nature of the Music Well project. Application of the machine learning algorithms modelled the probability of gold systems within the AOI and more specifically the Music Well project. This required 107 variables for discrimination that were applied to the 80m by 80m cells within the AOI.

Click here for the full ASX Release



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Deadly Illegal Gold Mine Collapse in Mali Kills Dozens

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A deadly mine collapse in Western Mali’s Kayes region has left at least 40 people dead.

The BBC reported that the accident occurred on Saturday (February 15) near the towns of Kéniéba and Dabia, areas known for their rich gold deposits, but also notorious for informal, unregulated mining.

This disaster marks the second fatal mining accident in the country in just three weeks.

The victims were reportedly scavenging in open-pit mines left by industrial miners when the ground caved in. These informal miners, driven by economic hardship, often seek remnants of gold in unstable abandoned mine shafts.

Rescue teams have retrieved many of the bodies, though reports from local authorities continued to vary as of the time of this writing on Monday (February 17), with some sources reporting as many as 48 deaths.

The tragic incident comes as Mali struggles to manage its mining industry and regulate informal operations.

Despite being one of Africa’s largest gold producers, the country is facing significant safety challenges due to inadequate oversight and unsafe mining practices — the result of poverty in local communities. Just weeks ago, at least 10 people were killed in a separate mining disaster when a tunnel flooded in the central region of Mali.

At the same time, the country’s formal mining industry is grappling with changing government regulations.

Mali’s military-led government is currently in a dispute with Barrick Gold (TSX:ABX,NYSE:GOLD), one of the country’s largest foreign investors. In January, Barrick’s Loulo-Gounkoto mine was placed under a temporary suspension after the Malian government blocked gold shipments and seized 3 metric tons of gold worth approximately US$245 million.

The Malian government is seeking to increase its share of revenue from foreign mining operations, a stance that has drawn criticism from companies like Barrick and has led to tensions between the Canadian firm and the government.

Barrick has stated that it will resume operations at Loulo-Gounkoto once the shipment ban is lifted, but the political environment in Mali continues to create uncertainty for foreign investors.

Barrick’s CEO, Mark Bristow, has been outspoken about how the dispute is affecting the company’s operations, noting that Barrick has paid substantial taxes to the government in recent years, including US$460 million in 2024 alone.

The collapse in Kayes, which occurred at an abandoned site once operated by a Chinese company, also brings attention to the role of foreign investors in Mali’s mining sector.

China has been a major player in developing Mali’s resources, particularly gold, and companies from the country have faced criticism for their environmental practices and labor conditions.

While Chinese investments have improved infrastructure, including roads and transportation, concerns over environmental impact and the level of oversight remain.

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

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Silver Crown Royalties Announces Updates to Non-Brokered Private Placement

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(TheNewswire)

TORONTO, ON TheNewswire – FEBRUARY 18, 2025 Silver Crown Royalties Inc. ( ‘Silver Crown’ ‘SCRi’ the ‘Corporation’ or the ‘Company’ ) is pleased to provide an update on its non-brokered offering (the ‘ Offering ‘) of units (‘ Units ‘) for gross proceeds of up to C$3,000,000 that was previously announced on February 6, 2025.

The Company is amending the terms of the Offering so that each Unit will be priced at C$6.50 ( ‘New Offering’ ) and will now issue up to 461,538 Units for gross proceeds of C$3,000,000. Each New Unit will consist of one common share (‘ Common Share ‘) and one common share purchase warrant (‘ Warrant ‘). Each Warrant will be exercisable to acquire one (1) additional New Common Share at an exercise price of C$13.00 for a period of three years from the date of the closing of the New Offering (the ‘ Expiry Date ‘).

Proceeds of the New Offering will be used to fund the second tranche of its silver royalty acquisition on the Igor 4 project in Peru as well as a general and administrative expenses of SCRi. All securities issued pursuant to the New Offering are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. Closing of the New Offering will be subject to customary conditions precedent, including the prior approval of Cboe Canada Inc.

Peter Bures, Silver Crown’s Chief Executive Officer commented, ‘As we continue our outreach during the course of the financing, we have received a substantial level of interest at these revised terms. We continue to build the book and expect it to be fully subscribed in a timely manner. The additional funds will allow us to close the second tranche of the PPX royalty transaction and bulk up our balance sheet for additional smaller transactions.’

ABOUT Silver Crown Royalties INC.

Founded by industry veterans, SCRi is a publicly traded, silver royalty company. SCRi currently has four silver royalties of which three are revenue-generating. Its business model presents investors with precious metals exposure allowing for a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. SCRi endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders.

For further information, please contact:

Silver Crown Royalties Inc.

Peter Bures

Chairman and CEO

Telephone: (416) 481-1744

Email: pbures@silvercrownroyalties.com

FORWARD-LOOKING STATEMENTS

This release contains certain ‘forward looking statements’ and certain ‘forward-looking information’ as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as ‘may’, ‘will’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘plans’ or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include but are not limited to: proceeds of the Offering will be used to fund the Second Tranche as well as a general and administrative expenses of SCRi; all securities issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation; closing of the Offering will be subject to customary conditions precedent, including the prior approval of Cboe; ‘We continue to build the book and expect it to be fully subscribed in a timely manner. The additional funds will allow us to close the second tranche of the PPX royalty transaction and bulk up our balance sheet for additional smaller transactions.’ Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi’s business, operations and financial condition, loss of key employees. SCRi has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

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. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Copyright (c) 2025 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

This post appeared first on investingnews.com

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One of the four portraits drawn by the royal family, published on social media Monday, to inspire children to get more creative.
Kensington Palace
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Kensington Palace

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