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February 25, 2025

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The Best Five Sectors, #8

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Utilities enter top 5

Last week’s trading, especially the sell-off on Friday, has caused the Utilities sector to enter the top 5 at the cost of Industrials.

Based on last Friday’s close, the sector ranking based on the combination of weekly and daily RRG metrics came out as follows:

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

The best four sectors remain unchanged. At the bottom of the best five sectors, Utilities and Industrials are swapping positions.

In the second half of the ranking, Energy and Real Estate swapped positions, but this has not affected the portfolio yet.

Weekly RRG: Rotations starting to shift direction

On the weekly RRG above, we see Financials turning back up while inside the weakening quadrant; this is a positive sign, suggesting that XLF is entering a new up-leg within an already existing up-trend.

Communication services remain inside the leading quadrant, albeit on a slightly negative heading. The short tail suggests a steady outperformance.

Consumer Discretionary is on a long tail with a negative heading, moving into the weakening quadrant. Based on the high reading on the weekly RRG, this sector remains in the top-5.

Technology shows a dangerous rotation. Immediately after entering the leading quadrant, the tail has rotated back into a negative heading. For now, the short tail saves the day, but caution needs to be exercised when this tail starts to accelerate at this negative heading.

Daily RRG

The daily RRG shows the XLY tail deep inside the lagging quadrant, which is pulling the weekly tail lower. These two time-frames are fighting for dominance in this sector. For now, the longer term, weekly time frame remains on top.

A Look At The Charts

Communication Services (XLC)

XLC is holding up above the former breakout level, which is now providing support. The raw relative strength line maintains the rhythm of higher highs and higher lows but at a lesser pace.

This is reflected in the RS-Momentum line moving lower. Given the high reading of the RS-Ratio line, this is very likely a temporary setback in relative strength.

Consumer Discretionary

The Consumer Discretionary sector is now getting close to completing a double top formation, which would send a negative chart technical signal.

In case of such a break, the target area will very likely be in the 200-210 area.

The deterioration in relative strength has already started, but it needs more time to become convincing enough to materialize a drop out of the top five.

Financials (XLF)

XLF has been consolidating between 50-52 in the past 4-5 weeks relative to the market. This means a slight improvement, which is reflected in both RRH-Lines turning back up. With the tail located inside the weakening quadrant, XLF will be well-positioned for outperformance in the coming weeks.

Technology (XLK)

Another week, another failure to take out overhead resistance.

Once again, the 242 area has proven to be too much of a hurdle for XLK. The close at the week’s low suggests some follow-through in the coming week.

The sector is still within the boundaries of the rising channel, and the RRG-Lines are mildly positive, justifying the #4 spot in the portfolio, but risks are increasing.

Utilities (XLU)

The strong performance since the low mid-January is starting to spill over into the relative strength of the Utilities sector.

The price chart is back in a series of higher highs and higher lows while the RRG-Lines are slowly starting to curl upwards.

The weak rotation for XLY on the daily chart is offset by the strength on the weekly RRG. The situation for XLU is the other way around. Here, XLU’s strong performance on the daily RRG offsets the sector’s weakness on the weekly RRG.

Portfolio Performance Update

The equal weight portfolio (20%/sector) gave back the outperformance that was built since inception. The RRG portfolio was at +2.36% since inception while SPY gained +2.62%.

Not great but no drama either, we will continue to monitor.

#StayAlert, –Julius

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AMZN: A Case Study in Bearish Divergence

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In the later stages of a bull market cycle, we will often observe a proliferation of bearish momentum divergences. As prices continue higher, the momentum underneath the advance begins to wane, representing an exhaustion of buyers.

We’ve identified a series of bearish momentum divergences in the early days of 2025, from Magnificent 7 names like Alphabet (GOOGL) to financial institutions including Synchrony Financial (SYF). Today, we’ll focus in on the bearish momentum divergence for Amazon.com (AMZN), which could indicate broader signs of weakness for the consumer discretionary sector as well as for the equity markets as a whole.

The daily chart of AMZN features all the key features of a bearish momentum divergence. Note how the price has remained in a primary uptrend going into this week, marked by a clear pattern of higher highs and higher lows. The most recent all-time high, achieved earlier this month when AMZN pushed briefly above the $240 level, saw the RSI fail to get above the overbought threshold.

The Magnificent 7 have transformed into the Meager 7. So which sectors or stocks might take the lead in 2025? Join me in our upcoming FREE webcast on Wednesday 2/26 at 1:00pm ET as we explore sector rotation trends, analyze growth vs. value dynamics, and spotlight stocks gaining momentum in Q1. Can’t make it live? No worries! Just register and I’ll send you the replay as soon as it’s ready. Sign up for Finding Value: The Great Rotation of 2025 today!

In a healthy bullish trend, we would expect higher price highs to be supported by strong momentum readings, indicating an influx of buying power and investor optimism.  When new highs are matched with lower RSI levels, that suggests a lack of buying power and evaporating investor optimism.

Once a bearish momentum divergence is confirmed, we can monitor the most recent swing low to confirm a potential breakdown as the price follows through after the divergence. After reaching that support level around $215 last Friday, we have seen AMZN push below this support level during the trading day on Monday. A confirmed close below this support level could represent a meaningful breakdown and a “change of character” for one of the top weights in the Consumer Discretionary Select Sector SPDR Fund (XLY).

Any time I see a potential pattern on the daily chart, I remember the classic market maxim, “When in doubt, zoom out!” The weekly chart shows how the most significant pullbacks in 2023-2024 were marked by a sell signal from the weekly PPO indicator.

Over the last two weeks, we’ve recognized a similar bearish pattern to those previous pullbacks, both of which ended with AMZN finding support at the 40-week moving average. That would align closely with the 200-day moving average on the daily chart, which currently sits just below the $200 level.

When I see a bearish momentum divergence appear on a chart like Amazon, I’ve learned to put that chart on a ChartList of potential reversal names, and monitor those tickers for signs of a breakdown of support. Based on our analysis of the daily and weekly charts of AMZN, this leading internet retailer could be signaling a key breakdown going into March.

RR#6,

Dave

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

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

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

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

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DP Trading Room: Defensive Sectors Lead the Pack

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The complexion of the market is changing. Aggressive sectors which have led the market higher are now beginning to show signs of strain as momentum slowly dissipates and prices turn lower. However, defensive sectors (XLP, XLRE, XLV and XLU) are now leading the market. Typically when this occurs the market is at a top. Given the look of the SPY, we could very well have hit a major market top.

Carl started off the trading room with a review of the DP Signal Table and Bias Table which are still looking bullish overall.

He then gave us his analysis of the market in general looking at not only the SPY, but Bitcoin, Gold, Gold Miners, the Dollar, Bonds and more!

Once the market review was complete, Carl walked us through the Magnificent Seven charts, both daily and weekly. There is clear weakness showing through on most of these stocks and that doesn’t bode well for the market as a whole.

Erin took over and discussed sector rotation, specifically the gains in defensive sectors. Aggressive sectors are topping and looking very weak. Energy has some potential, but it still has to figure out what “drill, baby, drill” will mean for Crude Oil related stocks.

Finally, Erin covered viewer symbol requests which included SMCI, MSTR, PLTR and JPM.

Join us LIVE in the free DP Trading Room on Mondays at Noon ET by signing up ONCE at https://zoom.us/webinar/register/WN_D6iAp-C1S6SebVpQIYcC6g#/registration

Schedule:

01:13 DP Signal Tables

03:35 Market Overview

15:04 Magnificent Seven

21:25 Palantir (PLTR) and Invesco Global Listed Private Equity ETF (PSP)

27:04 Sector Rotation

31:43 Symbol Requests

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(c) Copyright 2025 DecisionPoint.com

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

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

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Top 10 Tungsten-p​roducing Countries

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Tungsten’s importance in a wide range of industrial categories, from smartphones to car batteries, means demand is likely to rise. At the same time, supply chain disruptions and increased production costs are weighing on global supply, making it important to learn about the top global tungsten producers.

Tungsten has many applications. It’s used in electrical wires, as well as in welding, heavy metal alloys, turbine blades and as a lead substitute in bullets. The metal can also be found in heating and electrical contacts.

Tungsten prices have traded upward in recent years, and the industry’s supply and demand dynamics are expected to push the metal higher in 2025 and beyond. Total revenue for the tungsten market is expected to grow at a compound annual growth rate of 8 percent through 2024 to 2032 to reach nearly US$9.49 billion in value.

With that in mind, it’s worth being aware of which countries produce the most tungsten. According to the US Geological Survey, global tungsten production came in at 81,000 metric tons (MT) in 2024, up slightly from 2023’s 79,500 MT. The vast majority of tungsten mining and processing occurs in China. Looking forward to 2025, increased production is seen coming from mines in South Korea and Australia.

Here’s an overview of tungsten production by country in 2024, as per data from the US Geological Survey.

1. China

Tungsten production: 67,000 metric tons
Tungsten reserves: 2.4 million metric tons

In 2024, China produced 67,000 metric tons of tungsten, up by 1,000 MT from 2023. The country is the world’s largest producer of the metal by a wide margin, accounting for more than 80 percent of total annual tungsten output worldwide.

That said, China’s tungsten production has been falling in recent years — the Asian nation has limited the quantity of tungsten-mining and export licenses it awards and has imposed quotas on tungsten concentrate production. The country has also recently increased environmental inspections.

China has been the main source of tungsten imported into the US since 2017, and the country accounted for 27 percent of US tungsten imports in 2024.

In response to US President Donald Trump’s imposition of 10 percent tariffs on imports from China in February 2025, the Government of China immediately announced strict export controls on tungsten and four other key metals used in several important industries, including defense. Tighter tungsten supply out of China may lead to higher prices for the metal despite growing production from ex-China sources.

2. Vietnam

Tungsten production: 3,400 metric tons
Tungsten reserves: 140,000 metric tons

Vietnam’s tungsten production in 2024 came to 3,400 metric tons, down by 100 MT from the previous year. Privately owned Masan Resources runs the Vietnam-based Nui Phao mine, which it says is the largest tungsten-producing mine outside China. It is also one of the lowest-cost producers of tungsten in the world.

In 2024, Vietnam accounted for 8 percent of US tungsten imports.

3. Russia

Tungsten production: 2,000 metric tons
Tungsten reserves: 400,000 metric tons

Russia produced 2,000 metric tons of tungsten in 2024, on par with the last few years. The war between Russia and Ukraine has hampered Russia’s ability to trade and make deliveries of tungsten to the world market as it continues to face sanctions. The Tyrnyauz tungsten-molybdenum mine is the largest tungsten deposit in the country and one of the largest globally.

Russia is a significant supplier of the metal to Europe, but restrictions have increased the continent’s dependency on Chinese imports. At the same time, the war is fueling tungsten demand given the metal’s use in ammunitions.

4. North Korea

Tungsten production: 1,700 metric tons
Tungsten reserves: 29,000 metric tons

In 2024, North Korea produced 1,700 metric tons of tungsten production, up by 100 MT over the previous year. The Mannyŏn mine in North Hwanghae province is the country’s largest tungsten mine. Its name means 10,000 years in reference to its vast reserves.

Tungsten ore is North Korea’s third highest export by value, worth nearly US$26 million in 2023, with the majority being consumed by China. Tungsten’s high spot in North Korea’s export market may be due to the fact that it’s one of the few metals not listed under UN sanctions on the country’s trade.

5. Bolivia

Tungsten production: 1,600 metric tons
Tungsten reserves: Not available

Bolivia’s tungsten production in 2024 was 1,600 metric tons, a gain of 100 MT over the previous year. The South American country has increased its tungsten production since 2014 as a result of moves to promote its tungsten industry. Bolivia accounted for 8 percent of US tungsten imports in 2024.

The Bolivian mining industry is heavily influenced by Comibol, a state-owned mining umbrella company.

6. Rwanda

Tungsten production: 1,200 metric tons
Tungsten reserves: Not available

Rwanda produced 1,200 metric tons of tungsten in 2024, on par with 2023’s output. Tungsten is one of the most common conflict minerals in the world, meaning that at least some of it is produced in war zones and is sold to perpetuate fighting.

While Rwanda has promoted itself as a source of conflict-free minerals, concerns remain about its tungsten output. Nevertheless, it is an important exporter of tungsten, accounting for 31 percent of global tungsten trade in 2022.

One of the largest tungsten producers in Rwanda is privately owned Trilogy Metals, which owns the Nyakabingo tungsten ore mine. Trilogy’s largest shareholder is UK-based private industrial company Techmet, which is working to secure a viable technology metal supply chain.

7. Australia

Tungsten production: 1,000 metric tons
Tungsten reserves: 570,000 metric tons*

In 2024, Australia produced 1,000 metric tons of tungsten. This represents a more than 130 percent jump in output from 2023 levels, taking it from the ninth spot on the previous year’s list to rank seventh in global tungsten production for 2024.

There are several operating tungsten mines in Australia. EQ Resources (ASX:EQR) is an Australian tungsten miner producing the metal at its Mount Carbine asset in North Queensland. On the island state of Tasmania, Group 6 Metals (ASX:G6M) brought the historic Dolphin tungsten mine back into production in 2023. The island also contains private firm Tasmania Mines’ Kara tungsten mine

Tungsten projects under development in Australia include the Molyhil tungsten-molybdenum-copper project located in the Northern Territory. Molyhil is a 75/25 joint venture between Thor Energy (LSE:THR,OTC Pink:THORF) and Investigator Resources (ASX:IVR). According to Mining Database Online (MDO), Investigator is working toward completing a scoping study on Molyhil, based on an updated May 2024 mineral resource estimate, in the first half of 2025.

Another company with Australia-based tungsten projects is Tungsten Mining (ASX:TGN), whose properties include Mount Mulgine, Big Hill and Kilba in Western Australia, as well as Watershed in Northeast Queensland and Hatches Creek in the Northern Territory.

* Joint Ore Reserves Committee-compliant or equivalent reserves were 220,000 metric tons.

8. Austria

Tungsten production: 800 metric tons
Tungsten reserves: 10,000 metric tons

Austria’s tungsten production in 2024 was 800 metric tons, down 50 MT from the previous year. Much of that production can be attributed to Wolfram’s Mittersill mine, which is located in Salzburg and hosts Europe’s largest tungsten deposit.

9. Spain

Tungsten production: 700 metric tons
Tungsten reserves: 66,000 metric tons

Spain produced 700 metric tons of tungsten in 2024, up 50 MT over the previous year.

There are a number of companies engaged in the exploration, development and mining of tungsten assets in Spain. Australia’s EQ Resources, which acquired tungsten producer Saloro in 2023, now controls the Barruecopardo Mining and Processing operation. MDO reports that a program is underway to upgrade the plant and improve recoveries with completion expected by the end of 2025.

As for Spanish tungsten assets under development, Almonty Industries (TSX:AII,OTCQX:ALMTF) owns the permitting-phase Valtreixal tungsten-tin project.

10. Portugal

Tungsten production: 500 metric tons
Tungsten reserves: 3,400 metric tons

In 2024, Portugal produced 500 metric tons in 2024, up by 50 MT from that produced in the previous year.

The European country has the lowest-known tungsten reserves figure out of all the nations on this list, totaling just 3,400 MT. Almonty Industries’ Panasqueira mine is Portugal’s largest tungsten-producing operation. ‘The Panasqueira Mine has some of the highest tungsten recovery rates in the industry, consistently averaging 80 (percent),’ MDO states.

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

This post appeared first on investingnews.com

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Investing in Gold Royalty and Streaming Stocks

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Gold royalty companies offer investors exposure to gold and silver with the benefits of diversification, lower risk and a steady income stream.

Royalty companies operating in the resource sector will typically agree to provide funding for the exploration or development of a resource in exchange for a percentage of revenue from the deposit if it begins producing. Similarly, a company with a streaming model may work out an agreement with a resource company for a share of the metal produced from a deposit in exchange for an investment.

These kinds of arrangements benefit both parties. Streamers get access to the underlying commodity at a fixed price and are shielded from cost overruns and spikes in production. Further, if there is a price decrease the metals can be warehoused until the market conditions improve. In both cases, mining companies receive considerable upfront investment during the expensive construction and expansion phases, and unlike loans these investments have longer-term payouts at a fixed amount.

Let’s take a deeper look at how royalties and streaming works, their benefits and the gold and silver royalty and streaming stocks you can invest in.

In this article

    How do gold and silver royalties work?

    Gold and silver royalty agreements involve royalty companies agreeing to provide funding for the exploration or development of a precious metals resource in exchange for a percentage of revenue from the deposit if it begins producing metals.

    The foundation for royalties dates back a few hundred years. Originally, they were payments made to the British monarchy in exchange for miners’ rights to operate gold and silver mining operations on lands held by the crown. Today, these arrangements still exist, with mining operators paying the government a share of the revenues generated from exploiting resources on public lands.

    The first royalty paid to a company in the gold sector was an agreement in 1986 in which Franco-Nevada (TSX:FNV,NYSE:FNV) made a US$2 million investment into Western States Minerals’ Goldstrike small heap-leach mine in Nevada, US, for a 4 percent share of revenues collected from the mine. Western States was sold the same year to Barrick Gold (TSX:ABX,NYSE:GOLD). Barrick discovered a far larger resource at the site and the royalty has since earned Franco-Nevada more than US$1 billion.

    This early example set a precedent for the industry. It saw Franco-Nevada, which was then a gold exploration company, lock itself into what became one of the largest gold mineral resources in the world at a relatively low overhead while avoiding future costs associated with the growth and maintenance of the mine.

    How do gold and silver streams work?

    Gold and silver streams work in a similar manner to the royalty model but returns are in the form of physical metals rather than funds. In return for investing in an asset, a gold streaming company may work out an agreement with a resource company for a share of the metal produced from a deposit, or for the ability to purchase the metal at a lower price than market value.

    This is also a popular model with base metal mining companies whose operations result in gold and/or silver by-products. In these cases, gold and silver streaming companies may work out a deal with a base metal mining operation to take delivery of a certain amount of precious metals at an agreed upon price.

    The Goldstrike royalty made Franco-Nevada what it is today, but its largest contributing asset in its portfolio is a deal with Lundin Mining (TSX:LUN,OTC Pink:LUNMF) for a stream of the gold and silver resources extracted from its Candelaria copper mine in Chile.

    Under the terms of the deal, which was part of Lundin’s 2014 acquisition of Freeport-McMoRan’s (NYSE:FCX) stake in Candelaria, Franco-Nevada provided a US$648 million deposit in exchange for a 68 percent stream of the asset’s silver and gold. This will lower to 40 percent once 720,000 ounces of gold and 12 million ounces of silver have been delivered, which the company currently predicts will take place in 2027.

    While Franco-Nevada does have to pay for the metal, the agreed upon amount is far under the current market value. At the time, the deal was set at US$400 for each ounce of gold and US$4 per ounce of silver with a 1 percent inflationary adjustment, or market price if that was less.

    Are royalty and streaming companies a good investment?

    Royalty and streaming companies are largely seen as a lower-risk investment than mining companies. Lower operational costs and higher portfolio diversification means they are hedged against a mine shutdown, natural disaster, market forces or the politics that may affect the nature of an operation or project. However, that’s not to say royalty and streaming deals aren’t without their risks.

    In many ways, gold royalty companies are like venture capitalists in the tech industry, working to fund many projects in the hopes that some will see big payoffs that offset the loss from the ones that don’t make it. This means they need large access to funding in order to build their portfolios.

    To get funding, royalty and streaming companies have several options: using cash on hand, raising debt through loans or issuing more shares. Each of these options carries risk. Using cash to pay for investments could reduce the size of the safety net and eat into company liquidity, debt needs to be managed to ensure that payments don’t exceed income and the issuance of stock could lead to an overall devaluation of share price and impact investor sentiment.

    Once companies have developed strong cash flows and good liquidity, they are able to take advantage of their own reserves, without the need to worry about loans or stock dilution. The same cannot be said for the up-and-coming companies who need to rely on external funding to make deals, making them riskier.

    These companies provide a good entry point for investors with lower share price, and have more potential to return higher percentage gains in share price, they also bear more risk. With more reliance on raising external capital, there is a greater need for deals to be successful and a greater chance for a company to incur more debt load or stock dilution.

    Diverse portfolios can help reduce the risk associated with a royalty company, and companies like Franco-Nevada have the industry knowledge and financial capital to take some risks. As of February 2025, the company has 432 assets on their books; 117 are producing, 38 are in the advanced stages of development. It’s the 277 more that are in the exploration phase that represents the greatest risk, many of which will never provide returns.

    Of course, unforeseen events can affect both mining and royalty companies alike, particularly when assets that take up a larger percentage or a portfolio are affected. Franco-Nevada had more than US$1 billion invested in First Quantum’s (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine before it was shuttered by the Panamanian government following protests at the end of 2023. The mine brought in US$223.3 million for Franco-Nevada in 2022 and represented nearly a quarter of its precious metal income. While it fared better than First Quantum, the royalty company’s share price took a significant hit.

    Gold and silver royalty companies

    The biggest companies in the precious metals royalty and streaming space have long histories and have built positive reputations on the backs of strong investments. They offer a means for investors to de-risk an entry into the gold sector by maintaining an arms-length attachment to it.

    The five gold and silver royalty and streaming companies on this list had market caps above $1 billion in their respective currencies as of February 19, 2025.

    1. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)

    Company Profile

    Market cap: C$44.46 billion

    Wheaton Precious Metals was established in 2004 as Silver Wheaton with a focus on silver streaming. Goldcorp held a majority interest, but began to reduce it in 2006 and by 2008 had completely divested itself. By that time, Silver Wheaton had begun to diversify into other precious metals. The following year, Silver Wheaton acquired rival silver streaming stock Silverstone Resources in a C$190 million deal.

    Silver Wheaton changed its name in 2017 to Wheaton Precious Metals and has since built itself into one of the largest players in the gold and silver royalty and streaming space, with investments in 13 operating mines and 26 development projects across four continents.

    2. Franco-Nevada (TSX:FNV,NYSE:FNV)

    Company Profile

    Market cap: C$38.23 billion

    A trailblazer in the gold royalty business, Franco-Nevada has set a high bar. The current iteration of the company was spun out of Newmont (TSX:NGT,NYSE:NEM) in what became a C$1.1 billion initial public offering, one of the biggest IPOs of 2007.

    Franco-Nevada now has a portfolio of more than 100 producing assets around the world with investments in gold, silver, base metal and oil and gas operations, which generate more than US$1.2 billion for the company annually. See the sections above for more information on Franco-Nevada’s royalty and streaming deals.

    3. Royal Gold (NASDAQ:RGLD)

    Company Profile

    Market cap: US$9.82 billion

    Royal Gold got its start in 1981 as oil and gas exploration and production company Royal Resources Corporation. Responding to shifts in the overall resource market, by 1987, Royal Gold was born with a focus on building a portfolio of minority positions in significant gold properties operated by major mining firms.

    Today, Royal Gold is a leading precious metals streaming and royalty company with interest in 175 properties, of which 42 are producing assets, across 17 countries. One of the most significant principal assets for this gold royalty stock is the Cortez gold mine in Nevada owned by Barrick and Newmont.

    4. Osisko Gold Royalties (TSX:OR,NYSE:OR)

    Company Profile

    Market cap: C$5.1 billion

    Osisko Gold Royalties was created in 2014 as a spinoff deal between Osisko Mining (TSX:OSK), Yamana Gold and Agnico Eagle Mines (TSX:AEM,NYSE:AEM). The deal was made in an attempt to prevent a hostile takeover of Osisko Mining and its Canadian Malartic gold complex by Goldcorp.

    In the deal, Osisko Gold Royalties carried with it a 5 percent net smelter return royalty from the Canadian Malartic mine. Now owned by Agnico Eagle, the complex in Québec remains a cornerstone of Osisko’s business today.

    The gold and silver royalty and streaming company has gone on to acquire 185 assets, 23 of which are producing, across 6 continents with a majority in North America.

    5. Sandstorm Gold (TSX:SSL,NYSE:SAND)

    Company Profile

    Market cap: C$2.5 billion

    Sandstorm Gold Royalties was founded in 2008 as a small-startup and has since become a multi-billion dollar gold and silver royalty and streaming company. Its producing assets include Pan American Silver’s (NYSE:PAAS,TSX:PAAS) Ceo Moro gold-silver mine, and Cerrado Gold’s (TSX:CERT,OTCQX:CRDOF) Las Calandrias gold-silver mine, both in Argentina.

    Sandstorm’s royalty portfolio boasts more than 230 assets, of which 41 are producing assets, located across more than a dozen countries.

    Small-cap gold and silver royalty companies

    There are also small-cap gold and silver royalty and streaming companies you can invest in and offer a lower-cost option for investors who are comfortable with a little more risk. Like their larger counterparts, small-cap gold royalty stocks offer a lower-risk investment than getting into a small-cap mining company but still provide access to the underlying precious metals market.

    The five small-cap gold and silver royalty companies on this list had market caps above $10 million in their respective currencies as of February 19, 2025.

    1. Metalla Royalty & Streaming (TSXV:MTA)

    Company Profile

    Market cap: C$408.08 million

    Metalla Royalty & Streaming focuses on gold, silver and copper projects. The company’s royalty model involves acquiring royalties and streams by offering resource companies Metalla shares and cash.

    The mid-tier royalty and streaming company’s asset portfolio includes more than 100 projects across North America, South America and Australia. Its cornerstone assets include IAMGOLD (TSX:IMG,NYSE:IAG) and Sumitomo Metal Mining’s (TSE:5713) Côté gold mine in Ontario, Canada.

    2. Gold Royalty (NYSEAMERICAN:GROY)

    Company Profile

    Market cap: US$242.12 million

    Gold Royalty is building a diversified portfolio of more than 200 gold royalty and gold streaming interests based on net smelter return royalties on properties in the Americas.

    The company’s revenue generating investments includes one of the most well-known gold-producing mines in the world, Agnico Eagle’s Canadian Malartic complex in Québec.

    3. Sailfish Royalty (TSXV:FISH,OTCQX:SROYF)

    Company Profile

    Market cap: C$112.44 million

    Founded in 2014, Sailfish Royalty’s asset portfolio is much smaller than the other gold royalty stocks on this list. It consists of one producing mine as well as two development-stage and two exploration-stage properties in the Americas.

    In Nicaragua, Sailfish has a gold stream equivalent to a 3 percent net smelter return on Mako Mining’s (TSXV:MKO,OTCQX:MAKOF) San Albino gold mine and a 2 percent net smelter return on the area surrounding the mine. The company also holds a 13,500 ounce per month silver stream at the property, which will run until May 2025 with the option to extend.

    4. Empress Royalty (TSXV:EMPR,OTCQX:EMPYF)

    Company Profile

    Market cap: C$41.96 million

    Empress Royalty’s business model involves investing in mining companies in various stages of exploration through production who need further non-dilutive capital to fund their projects and operations.

    Empress’ gold and silver royalty and streaming portfolio includes four producing assets, with two in the Americas and two in Africa: the privately owned Sierra Antapite gold mine in Peru, Luca Mining’s (TSXV:LUCA,OTCQX:LUCMF) Tahuehueto silver mine in Mexico, the privately owned Manica gold project in Mozambique and Golconda Gold’s (TSXV:GG,OTCQB:GGGOF) Galaxy gold mine in South Africa.

    5. Silver Crown Royalties (NEO:SCRI,OTCQX:SLCRF)

    Company Profile

    Market cap: C$16.1 million

    Silver Crown Royalties is a revenue-generating silver-only royalty company focusing on silver as by-product credits. The company targets royalty originations on producing or near-producing assets in tier 1 jurisdictions.

    Silver Crown has two producing assets in its portfolio: Gold Mountain Mining’s (TSX:GMTN) Elk gold project in British Columbia, Canada, and private Canadian company Pilar Gold’s PGDM mine in Brazil.

    Gold and silver royalty ETFs

    Those who want more broad exposure to the precious metals markets may want to buy shares of an exchange-traded fund that includes gold and silver royalty and streaming stocks. Here are a few to get you started.

    Betashares Global Royalties ETF (ASX:ROYL)
    Betashares Global Royalties ETF is an Australian ETF that tracks the performance of an index of global companies that earn a significant amount of their revenue from royalty income, royalty-related income and intellectual property income. The fund’s top holdings include Wheaton Precious Metals, Franco-Nevada and Royal Gold.

    Betashares Global Gold Miners ETF (ASX:MNRS)
    Betashares Global Gold Miners ETF tracks the performance of an index of the world’s largest gold mining companies outside of Australia, hedged into Australian dollars. Wheaton Precious Metals, Franco-Nevada and Royal Gold are also among the fund’s top holdings.

    VanEck Gold Miners ETF (ARCA:GDX)
    VanEck Gold Miners ETF is a US gold ETF that aims to replicate the performance of the NYSE Arca Gold Miners Index by holding large-cap gold mining stocks and precious metals royalty companies. As with the other gold ETFs on this list, its top holdings include Wheaton Precious Metals, Franco-Nevada and Royal Gold.

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

    This post appeared first on investingnews.com

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    Unlocking a New High-Grade Antimony-Tungsten Structure Adds Potential to Wild Cattle Creek

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    Trigg Minerals Limited (ASX: TMG| OTCQB: TMGLF) (‘Trigg’ or the ‘Company’) has announced Unlocking a New High-Grade Antimony-Tungsten Structure Adds Potential to Wild Cattle Creek.

    HIGHLIGHTS

    • Trigg has confirmed high-grade antimony and tungsten mineralisation beneath the primary Wild Cattle Creek deposit, with assays of 2.14% tungsten (Hole 10WRD16) and 27.6% antimony (Hole 10WRD16W) (refer Appendix 1).
    • The parallel structure is characterised by average grades of 13% antimony (Sb) and 1.03% tungsten (W).
    • The 2024 MRE omitted the parallel structure, which lies 35m north of WCC and remains open along strike (west) and at depth.
    • Both the WCC alteration halo and the parallel structure indicate a significant westward increase in antimony and tungsten grades, underscoring robust resource upgrade potential.
    • Limited historical focus on tungsten presents a significant opportunity to unlock additional resources and value through further exploration and assessment.
    • Wild Cattle Creek is Australia’s widest known antimony deposit, with an average mineralised width of 20 meters, significantly exceeding typical narrow vein-hosted Sb deposits in the region.
    • Drilling results reveal an underlying gold system and robust enrichment within the stockwork alteration of the Wild Cattle Creek antimony deposit, suggesting further exploration could unlock additional value like Hillgrove and Costerfield.

    The recent Chinese government suspension of tungsten exports, effective February 2025, has sent shockwaves through global markets. China is the world’s dominant supplier, responsible for over 80% of global tungsten production, making this a pivotal moment for alternative sources to emerge.

    Trigg Minerals’ (ASX: TMG) Wild Cattle Creek deposit at its 100% owned Achilles Project is now in sharp focus. Previously overlooked in historical drilling, the high-grade tungsten mineralisation could be crucial in securing a domestic supply of this critical mineral.

    Wild Cattle Creek has long been known for its high-grade antimony, with Trigg recently upgrading the Mineral Resource Estimate (MRE) to 1.52Mt at 1.G7% Sb, containing 2G,G02 tonnes of antimony comprising 0.G6Mt at 2.02% Sb (Indicated) and 0.56Mt at 1.88% Sb (Inferred); see ASX announcement dated 19 December 2024. However, tungsten mineralisation—strongly associated with the alteration selvage near high-grade antimony zones—has largely been overlooked.

    Trigg has confirmed that high-grade antimony and tungsten (Figure 1; Table 1) are also present in a subparallel vein lying approximately 35m beneath (i.e. north of) the primary Wild Cattle Creek system. This vein extends over 100 metres in the westernmost sections of the deposit. It remains open at depth and along strike, highlighting the strong potential for additional resources in antimony and tungsten.

    Click here for the full ASX Release

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    Metallurgical Drilling Confirms Historic Grades at the Byro REE / Li Project

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    Octava Minerals Limited (ASX:OCT) (“Octava” or the “Company”), a Western Australia focused explorer of the new energy metals antimony, REE’s, Lithium and gold, is pleased to report that laboratory assays have now been received from the two metallurgical core drillholes at the Byro REE’s / Li Project in the Gascoyne Region of Western Australia.

    Highlights

    • Assay results received from metallurgical drilling at the Byro REE & Li Project confirm historic REE / Li mineralisation intercepts.
    • Intercepts of over 50m from surface with grades including 500ppm Total Rare Earth Oxides (TREO) with 20% magnetic REE’s, 375ppm Lithium Oxide (Li2O) and 523ppm Vanadium Pentoxide (V2O5).
    • Mineralisation has been intercepted in historic drilling over 30km of strike.
    • The drilling was to provide fresh samples of the Byro black shale to undergo metallurgical extraction testwork.

    Octava’s Managing Director Bevan Wakelam stated;

    ”Octava is investigating the potential for Australia’s first, large scale, low cost sedimentary basin deposit of REE’s, lithium and base metals. Metal extraction from black shales is a proven, low- cost technology used in other operations around the world. We will commence initial metallurgical testwork to determine the viability of extracting these metals from the black shale at Byro. We look forward to providing further updates as this work proceeds.

    The Byro Project is located on the Byro Plains of the Gascoyne Region, Western Australia, 220km south-east of Carnarvon and consists of two granted Exploration Licences – E 09/2673 and E 09/2674 – totalling 798 km2. The Byro Project also has Native Title agreements in place. Nearby infrastructure includes accessibility to a commercial port (Geraldton) and power from the NW gas pipeline and future potential access to Western Australian government proposed green energy sites.

    Two metallurgical HQ3 coreholes were drilled for a total of 204m. The holes were drilled adjacent to previously drilled RC holes to confirm mineralisation and to provide fresh sample material for metallurgical testwork.

    The Byro project lies at the centre of the Permian Byro Sub-basin of the Carnarvon Basin. The Byro Group hosts sedimentary packages of sandstones, siltstones and mudstones, including black shales and coal seams. The dominant unit in the tenure is the Bulgadoo shale, which consists of banded carbonaceous shale and arenite, containing beds of enriched pyrite, bivalves and bryozoans.

    The black shales in the Byro sub basin appear to have formed a metal sink that contains large volumes of anomalous REE, Li and base metals. The source of the metals at Byro is likely the Archean basement rocks of the Yilgarn Craton located ~40km to the east. The REE host rocks at Byro have been transported to their current location, unlike typical REE clay exploration targets in Australia which are formed in situ, from weathered granitic basement rocks.

    Permian Black shales are known worldwide for their potential to host enriched poly-metallic deposits. These deposits contain considerable volumes of lower concentration resources of base metals, rare earths, lithium and other strategic minerals. They offer the opportunity for large-scale, low-cost mining operations capable of supplying the metals for a number of years. Octava is examining the black shales at the Byro project for the same potential.

    Click here for the full ASX Release

    This post appeared first on investingnews.com

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    Crypto Market Recap: Bybit Suffers US$1.5 Billion Hack, Saylor’s Strategy Buys More Bitcoin

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    Here’s a quick recap of the crypto landscape for Monday (February 24) as of 9:00 p.m. UTC.

    Bitcoin and Ethereum price update

    Bitcoin (BTC) is currently trading at US$94,006.38 reflecting a decrease of 1.9 percent over the past 24 hours. The day’s trading range has seen a high of US$95,658 and a low of US$93,775.

    Ethereum (ETH) is priced at US$2,640.58, marking a decline of 5.58 percent over the same period. The cryptocurrency reached an intraday high of US$2,678 and a low of US$2,633.

    Altcoin price update

    • Solana (SOL) is currently valued at US$151.06, down 9.8 percent over the past 24 hours. SOL experienced a high of US$158 and a low of US$150 during Monday’s trading session.
    • XRP is trading at US$2.43, reflecting a 4.8 percent decrease over the past 24 hours. The cryptocurrency recorded an intraday high of US$2.48 and a low of US$2.40.
    • Sui (SUI) is priced at US$3, showing a 9.9 percent decrease over the past 24 hours. It achieved a daily high of US$3.19 and a low of US$2.98.
    • Cardano (ADA) is trading at US$0.7176, reflecting a 6.4 percent decrease over the past 24 hours. Its highest price on Monday was US$0.7327, with a low of US$0.7133.

    Crypto news to know

    Hackers steal US$1.5 billion from Bybit in ‘biggest digital heist ever’

    Cryptocurrency exchange Bybit has suffered what is believed to be the largest digital theft in history, losing US$1.5 billion worth of Ethereum to hackers this past Friday (February 21).

    The Dubai-based platform reported that the attacker gained access to one of its Ethereum wallets during a routine transfer between cold and warm storage, successfully moving the funds to an unknown address.

    Bybit CEO Ben Zhou has reassured users that the exchange remains solvent and has enough funds to cover losses, ensuring all customers are fully reimbursed.

    However, the platform has experienced a surge in withdrawal requests, causing processing delays. In response, Bybit has offered a 10 percent reward — up to US$140 million — for assistance in recovering the stolen funds.

    Some security analysts suspect the involvement of North Korean state-backed hacker group Lazarus, known for previous large-scale crypto heists.

    Ethena raises US$100 million for institutional token

    Bloomberg reported on Monday that Ethena, the issuer of stablecoin USDe and token ENA, has raised US$100 million in a private sale of ENA to fund a new token aimed at institutional investors.

    This new token will be built on Ethena’s blockchain and will be similar to USDe, but with added features to comply with financial regulations, potentially paving the way for greater institutional adoption of Ethena’s products.

    Strategy’s Bitcoin stockpile nears 500,000

    Strategy (NASDAQ:MSTR), formerly MicroStrategy, completed the sale of US$2 billion worth of convertible senior notes due in 2030 in a private offering to institutional investors, the company announced on Monday.

    As expected, CEO Michael Saylor also disclosed the acquisition of 20,356 additional Bitcoin for roughly US$1.99 billion, bringing the company’s total holdings to 499,096 acquired for US$33.1 billion, or US$66,357 each. Rounding the current Bitcoin price down to US$94,000, the holdings are worth about US$46.92 billion.

    Nasdaq seeks to list Hedera ETF

    The Nasdaq has applied to list an exchange-traded fund (ETF) designed to hold the Hedera Network’s native token, HBAR, according to a 19b-4 form filed with the US Securities and Commission Exchange on Monday.

    The token is one of a very small number of cryptocurrencies starting the week in the black, up 0.3 percent in 24 hours to US$0.21 at the time of this writing. If approved, the ETF would be managed by Canary Capital, which filed to list a proposed Canary HBAR ETF in November.

    Citadel Securities eyes increased crypto market involvement

    Sources for Bloomberg said financial firm Citadel Securities is looking to increase its involvement in the cryptocurrency market by joining the roster of approved market makers on major exchanges like Coinbase, Binance and Crypto.com. If approved, the firm plans to set up international teams, according to people familiar with the matter.

    Testing begins for Ethereum’s Pectra upgrade

    Ethereum will initiate the testing phase of its latest upgrade, Pectra, on the Holesky testnet at epoch 115968 on Monday, marking another advancement in Ethereum’s ongoing development.

    The Pectra upgrade is designed to enhance the network’s scalability, security and overall efficiency, addressing some of the current limitations of the Ethereum blockchain such as transaction fees and network congestion.

    This testing phase will help developers identify potential issues before the upgrade is deployed on the Ethereum mainnet, which is scheduled for later this year.

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

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

    This post appeared first on investingnews.com

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    South Korea’s president is fighting to stay in office and out of prison after martial law fiasco. Here’s what happens next

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    South Korean President Yoon Suk Yeol faces a string of legal battles as the suspended leader fights to save his political career – and avoid prison – following his brief imposition of martial law last year.

    Yoon’s December 3 decree threw South Korea into turmoil when he banned political activity and sent troops to the heart of the nation’s democracy – only to reverse the move within six hours after lawmakers forced their way into parliament and voted unanimously to block it.

    The decree was swiftly met by widespread public anger, reviving painful memories of strongmen leaders who curtailed rights and freedoms in the country after the Korean War until its transition to democracy in the late 1980s.

    Even several members of Yoon’s own conservative ruling party turned on him. On December 14, parliament voted to impeach him, suspending his presidential powers.

    But a defiant Yoon has vowed to “fight to the end,” as the country’s top court reviews his impeachment and as he also appears in a separate criminal trial for insurrection.

    Here’s what we know.

    What’s happening in Yoon’s impeachment trial?

    South Korea’s Constitutional Court will decide whether to remove Yoon from office permanently or reinstate him. It is now reviewing his impeachment by parliament after hearing weeks of testimony by high-ranking current and former officials.

    Lawyers for parliament have argued that if Yoon is reinstated, he could try to impose martial law again or undermine constitutional institutions.

    Yoon has argued that he had a right as president to issue his martial law decree. The former prosecutor-turned-politician said his move was justified by political deadlock and threats from “anti-state forces” sympathetic to North Korea.

    Lawyers for Yoon have also argued that he never actually intended to stop parliament from operating, even though the order was publicly declared, and troops and police were deployed to the legislature.

    Yoon also sent troops to the National Election Commission and later said the decree was necessary, in part, because the body had been unwilling to address concerns over election hacking, a claim rejected by election officials.

    A ruling in the impeachment case is expected in March.

    If the Constitutional Court upholds Yoon’s impeachment, he would become the shortest-serving president in South Korea’s democratic history, having taken office in May 2022. The country must then hold new presidential elections within 60 days.

    If Yoon’s impeachment is upheld, it would also remove his immunity from most criminal charges.

    What other charges does he face?

    Prosecutors indicted Yoon on separate criminal charges related to his martial law decree of leading an insurrection. He was arrested in January after a weeks-long standoff between investigators and his presidential security team. He has since been held in solitary confinement at a detention center near Seoul.

    Insurrection is one of the few criminal charges from which a South Korean president does not have immunity. It is punishable by life imprisonment or death, although South Korea has not executed anyone in decades.

    The indictment alleges that Yoon’s imposition of martial law was an illegal attempt to shut down the National Assembly and arrest politicians and election authorities. Yoon has said his decree was intended as a temporary warning to the liberal opposition and that he always planned to respect lawmakers’ will if they voted to lift the measure.

    Yoon’s lawyers have also repeatedly argued that his arrest was politically motivated and that the warrant was invalid because of flaws in the way the investigation was conducted.

    The next preliminary hearing for the criminal proceedings is set for the end of March.

    Yoon’s insurrection trial is expected to take months. A verdict could be reached by late 2025 or early 2026, according to legal analysts.

    Meanwhile, the court is reviewing a request by Yoon’s lawyers to revoke his arrest order and release him from custody, though such challenges are rarely successful.

    What important details did we learn from Yoon’s trial?

    The impeachment proceedings offered dramatic details illustrating how Yoon and the military enacted the ultimately short-lived martial law order.

    South Korea’s former Defense Minister Kim Yong-hyun said it was he, not the president, who first proposed the ill-fated brief period of military rule.

    Kim said he wrote the controversial decree himself, which included a sweeping ban of political activity across South Korea.

    “All political activities, including the activities of the National Assembly, local councils, and political parties, political associations, rallies and demonstrations, are prohibited,” the martial law decree said.

    Both Yoon and Kim strongly denied ordering military commanders to “drag out” lawmakers inside the National Assembly. However, former Army Commander Kwak Jong-geun consistently testified he received direct orders from Yoon himself to forcibly remove assembly members.

    Kim and lawyers for Yoon maintained the order was misheard – arguing the Korean word for lawmakers was confused with the similar sounding word for agents or soldiers.

    Former first deputy director of the National Intelligence Service (NIS) Hong Jang-won also repeatedly testified Yoon told him to take advantage of martial law. He said Yoon described it as an opportunity to “arrest” a list of 14 political and legal adversaries and to “clean everything up” – which Yoon denies.

    Possibly not: Yoon also faces the prospect of another legal battle.

    Police have been investigating Yoon on suspicion of the special obstruction of public duty since around January 3, a police spokesperson told Reuters on February 22.

    The crime is punishable by up to five years in jail.

    A South Korean court issued an arrest warrant for Yoon on December 31 in the criminal investigation over his martial law decree. The warrant, however, was not executed until January 15 after Yoon did not comply, remaining holed up in his heavily fortified presidential compound as the Presidential Security Service blocked investigators for days.

    In the months since Yoon’s martial law declaration, South Korea has been in political disarray with parliament also voting to impeach its prime minister and acting president Han Duck-soo. Finance minister Choi Sang-mok is now acting president.

    Additional reporting by Reuters and the Associated Press.

    This post appeared first on cnn.com

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    Australia found out about Chinese navy live-fire drills through a commercial pilot, official says

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    Australia learned about Chinese live-fire naval drills off the country’s coast that forced dozens of flights to be diverted via an alert from a commercial pilot, authorities said on Monday.

    The People’s Liberation Army (PLA) Navy’s unprecedented show of firepower in waters between Australia and New Zealand has raised alarm in both countries in recent days as a clearer picture emerges of how much warning Beijing gave about the exercises.

    The first notice of the Chinese drills in the Tasman Sea came in a radio transmission on an emergency frequency monitored by a Virgin Australia passenger jet on Friday, according to Australian officials.

    The Virgin pilot relayed the information to Australian aviation authorities, who then issued a “hazard alert” via air traffic control, Airservices Australia CEO Rob Sharp told a parliamentary hearing.

    Airservices Australia Deputy CEO Peter Curran told the hearing that at least 49 aircraft diverted their flight paths on Friday to avoid the flotilla of three Chinese warships conducting the exercise.

    The New Zealand and Australian governments said China did not issue a Notice to Airmen (NOTAM) about the drills, which they said took place in two rounds in the Tasman Sea on Friday and Saturday.

    A NOTAM tells aviators about airspace changes and can be issued up to seven days before events like the live-fire drills, according to US authorities.

    China’s Ministry of Defense said Sunday that the exercises conducted in international waters complied with international law and did not affect aviation safety. It also slammed Australia for “hyping up” the drills and making “unreasonable accusations.”

    Though the drills were held in international waters, Beijing could have given Australia and New Zealand a heads-up much sooner in the interests of safety, naval experts said.

    Defense analyst Jennifer Parker, a former Australian naval officer, wrote in a blog post Sunday that the Chinese ships did not violate international law and were well within their rights to conduct the live fire drills where they did, in the open ocean.

    “It’s not aggressive, it’s just what warships do on the high seas,” Parker wrote. “There is no legal obligation for foreign warships to notify coastal nations over 300 nautical miles away about live firing activities on the high seas.”

    But Parker said the Chinese ships may not have followed best practices, under which live-fire drills should maintain a safe distance from commercial flight routes.

    “Indications from flight diversions suggest that the Chinese warships may have been too close to civilian air transit routes. If this is the case, it represents poor practice that warrants diplomatic discussion,” she wrote.

    Analyst Carl Schuster, a former US Navy captain, was blunter.

    “Forcing aircraft to divert from their internationally recognized routes is considered unsafe and irresponsible,” Schuster said.

    Australia’s Prime Minister Anthony Albanese said on Saturday that while China’s drills complied with international law, Beijing “could have given more notice.”

    Judith Collins, the defense minister of New Zealand, said China’s warning should have come hours earlier.

    “There was a warning to civil aviation flights, that was basically a very short amount of notice, a couple of hours, as opposed to what we would consider best practice, which is 12-24 hours’ notice, so that aircraft are not having to be diverted when they’re on the wing,” she told public broadcaster Radio New Zealand (RNZ).

    ‘Standard procedure’

    By Tuesday, the Chinese ships had moved to about 160 miles east of Hobart on the southern island of Tasmania, and Australian and New Zealand defense forces were monitoring their movements, the Australian Defense Ministry said.

    Australian officials said Monday that flight diversions continued throughout the weekend but did not cause any major disruptions to air traffic.

    In such circumstances it’s best to exercise caution, analysts said.

    “Airliners listen out on the standby radio to the 121.5 international distress frequency. The naval group will contact the aircraft on 121.5 before it reaches a ’threat’ range and demand it alter course to avoid overflight,” said Byron Bailey, a former Emirates airline senior captain.

    “It is standard procedure not to overfly a naval battle group,” he said.

    Bailey recounted how, when flying a 777 airliner over the Persian Gulf, a US Navy aircraft carrier strike group once ordered him to alter his course to avoid going over the US flotilla.

    The PLA Navy ships – a frigate, a Type 055 destroyer and a replenishment vessel – had been sailing down the coast of Australia since mid-February, according to the Australian Defence Force.

    Collins, the New Zealand defense minister, said the Chinese naval exercises were unprecedented in those waters.

    “We’ve certainly never seen a task force or task group of this capability undertaking that sort of work,” Collins told RNZ.

    While the exercises may be a first for China in the southern waters, such maneuvers are standard practice around the world, including by Australia and its allies in the South China Sea.

    “Australia does this on our deployments, and we should avoid overreacting,” said Parker, the Australian analyst.

    That fact was noted by Chinese netizens on social media, where the PLA Navy deployment has received significant attention.

    “Our 055 went to Australia for live-fire exercises, and they conducted them twice,” one person wrote on X-like platform Weibo, referring to the powerful Chinese surface vessel in a post that hinted at tensions around the South China Sea’s contested Paracel Islands, which Beijing calls the Xisha Islands.

    “We should have used this way to communicate long ago. I think the Australian side will understand! If you intrude my Xisha Islands, I will come to your doorstep.”

    But Bailey, the former Emirates senior captain and a former Australian air force fighter pilot, said it was China that was being provocative.

    The PLA Navy drills were “unprofessional and deliberately disrespectful,” he said. “The PLAN was just ‘giving the finger’ to Australia and New Zealand.”

    This post appeared first on cnn.com

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