CHF WEEKLY ROUND-UP: April 22-26, 2024

It has been another choppy week in the markets as new data and corporate results buffeted stocks.

Bank of Canada (BoC) Governor Tiff Macklem said central banks will make monetary policy decisions geared toward their economies, which means some countries may begin cutting interest rates before others. He gave no signal on the BoC’s plans to cut rates. Economists increasingly expect Canada to begin cutting interest rates before the United States makes a move, despite fears that this action will depress the Canadian dollar and import inflation, forcing an increase in rates later in the year. Negative feedback on the Federal budget continued to flow in.

The U.S. economy slowed sharply last quarter to a 1.6 percent annual pace in the face of high-interest rates, but consumers remained the main driver of economic growth and kept spending at a solid pace. Powerful earnings growth was reported by some of the Big Tech names, and the S&P 550 moved in a positive direction this week remaining above the five thousand mark. Fed rate cuts are priced out of the market at this point. The soft landing has not occurred yet and there may be bumps ahead.

The gold market continued to hold about $2,350/oz in the face of higher for longer and calls from analysts for a correction. Silver also hung in at $27.55/oz. Agnico Eagle had a stunning news release reporting their latest quarterly numbers. McEwen Mining, Equinox Gold, and Silvercrest Metals are doing great and piling up cash. In shopping for deals, New Found Gold saw value in Labrador Gold’s Kingsway project and agreed to pay $20 million in shares for the project. Shareholders are unhappy at what they see as a low price being paid. There remains tremendous value in the low-priced Junior Explorers such as Sokoman Minerals Corp. (TSXV: SIC), Falcon Gold Corp. (TSXV: FG), and Nuinsco Resources Corp. (CSE: NWI).

Copper made a speculative splash running up to $4.55/lb. This prompted BHP to make $38.8 billion bid for Anglo American on Thursday, offering a deal to create the world’s biggest copper miner. Anglo has rejected the offer. More copper needs to be discovered and produced; more consolidation will not help projected supply shortages. Other metals did not benefit and were softer through the week.

Battery materials could generate no excitement and were flat on the week.  During the first quarter, Tesla produced 433,371 vehicles and delivered 386,810 vehicles profits fell by 55%. Dealer inventories are choked with EVs. Elon Musk talked about Robo-taxis and low-priced vehicles and put some lift into the shares.

Our clients have continued to progress, and we are pleased to present to you our round-up of their news released between April 22-26, 2024.

Mining

April 23 – 25, 2024, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) attended the Central MinEx Mineral Industry Showcase, an initiative by the Gander and Area Chamber of Commerce in partnership with the Town of Gander. The conference program featured a Trade Show, Prospectors’ Tent, Core Shack, and Networking Events.President & CEO, Tim Froude, delivered an insightful presentation on Sokoman’s Moosehead and Fleur de Lys projects and outlined plans for continuing the exploration in 2024.

Sokoman’s presence at Booth #51 was very well received by the attendees. Pictured (L to R) are Brian Bursey, Senior Technician; Tim Froude, President & CEO; and Ryan Newman, Exploration Manager

Always supportive of its community Sokoman was a Platinum-level Sponsor of the 2024 conference and trade show event and Sokoman hopes to see you there next year.