CHF WEEKLY ROUND-UP: April 15-19, 2024

Volatility has become the flavour of the month, especially with the Middle East flaring up, and investors are looking for safety and or GOLD!

Statistics Canada said that its consumer price index for March was at 2.9 percent on Tuesday compared to last year’s 4.3 percent. Excluding gasoline, Statistics Canada said the overall annual inflation rate for March was 2.8 percent. On Wednesday, the central bank held rates at five percent for the sixth consecutive announcement. However, Governor Tiff Macklem noted that he is now seeing the necessary conditions for a cut but wants to see sustained progress before lowering rates. Some economists now expect the Bank of Canada to cut interest rates in July, but the stickiness in U.S. inflation is an added wrinkle. Cutting rates before the US could depress the Loonie.

The European Central Bank held interest rates steady for a fifth meeting while sending its clearest signal that cooling inflation will soon allow it to commence cuts. It said it would remain data-dependent and isn’t “pre-committing to a particular rate path.”

US consumer prices picked up again last month, vaulting to a 3.5% increase for the 12 months ended in March, according to the latest Consumer Price Index data.  Federal Reserve Chair Jerome Powell said a “lack of further progress” on inflation means the central bank likely won’t cut interest rates at its upcoming policy meeting.  Bets on rate cuts came off, and there was a rush to safer investments, with some analysts calling for no rate cuts this year.

U.S. equity markets struggled with elevated geopolitical risks, inflation worries, and earnings disappointments. Materials, technology, and consumer discretionary stocks were hit hardest, and Treasury yields spiked again. The S&P 500 index is down 10% this month, not a bad reset, and it could recover in short order if things settle down a little.

The US dollar hit a new high for the year, up 4.64%, as the full force of “higher for longer” came home, with rising long yields.

Gold prices have continued to trend sideways, and the recent consolidation pattern hasn’t broken key support levels, as the precious metal still shows every indication of moving higher.  McEwen Mining made a friendly acquisition of Timberline Resources this week and is looking for more buyouts as the producers target strong juniors.

Base metals were led by copper, which is approaching its two-year high at $4.43/lb. Some strength was seen in Nickel, Lead, and Zinc this month, but no breakouts.

Lithium remains in a trading range below $16.00/kg where it has been since the beginning of December 2023. More layoffs for the EV sector came from Lion Electric this week, as the Quebec based manufacturer looks to reduce costs. Cobalt fell to $12.62/lb. its lowest price since mid-2019.

It has been a productive week as our clients continue to push their development plans forward, and we are pleased to present our round-up of their news released between April 15-19, 2024.

Mining

On April 16, 2024, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) reported that structural consultant Dr. David Coller is on-site at the Moosehead gold property to update the structural model and to help plan for deeper drilling later this year. The Phase 6 program is about to wind down for spring breakup, with assay results for 12 holes remaining outstanding and expected in two to three weeks. Drilling will resume once all assays have been received, compiled, and included in Dr. Coller’s updated structural model.

(L to R) Dr. Hamish Sandeman (Geological Survey of NL), Structural Consultant, Dr. David Coller, Dan Lee (VP Exploration) and Ryan Newman (Exploration Manager), examine 552 Zone drill core at the Moosehead core building, Grand Falls - Windsor, NL

(L to R) Dr. Hamish Sandeman (Geological Survey of NL) and Structural Consultant, Dr. David Coller discuss 552 Zone drill core at the Sokoman Minerals core shack

Recent drill results at the 552 Zone include MH-23-574 - 2.10 m of 5.00 g/t Au and MH-24-580 - 2.05 m of 8.31 g/t Au incl. 0.50 m of 27.79 g/t Au.  Both holes had multiple specks of visible gold, a characteristic of all the high-grade zones on the property. The 552 drilling has defined a two to five metres wide zone of vuggy (epizonal) quartz veining/quartz breccia, in variably sheared to undeformed sedimentary units located approximately 400 m to the east of the Eastern Trend mineralization in the central portion of the property.  The 552 Zone has been drilled over a 150 m strike length and to 125 m vertical depth and remains open along strike and to depth.

Fintech

On April 17, 2024, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF), further to its press releases of December 12, 2023, January 29, 2024, February 2, 2024, and February 27, 2024, announced that it has completed a third tranche closing a total of 2,015 convertible debenture Units of the Company at a price of $1,000, for aggregate gross proceeds in the of $2,015,000.  Tenet has now raised a total of $4,625,000 from the Offering and intends to close additional tranches of the Offering for total gross proceeds of a minimum of $7,500,000 on or before April 30, 2024.

Tenet intends to use the net proceeds from the Offering to continue the development of its Cubeler® Business Hub, for working capital and general corporate purposes.  Tenet and its subsidiaries offer various analytics and AI-based products and services to businesses, capital markets professionals, government agencies and financial institutions either through or leveraging data gathered by the Cubeler® Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members.