CHF WEEKLY ROUND-UP: December 4-8

As we approach the end of the year high expectations and deep fears seem to be all over the place. Covid is still with us. Worries continue about a coming recession (if it isn’t here already). Inflation is still too high. Unemployment is increasing and big firms are cutting jobs. Stagflation looms with growth slowing and the jobs market is softening. The Canadian stock markets could not manage to find any direction or lift this week but are still up over 5% on the year.

This week the Bank of Canada held interest rates steady for a third consecutive meeting, acknowledging a stalled economy while keeping the door open to further hikes as they watch for more progress on slowing inflation. Officials say recent data suggest the economy is no longer in an “excess demand” condition and believe that their hiking campaign is dampening spending and price pressures, but also said they’re prepared to raise borrowing costs again if necessary.

Retailers seem to be facing a very challenging holiday shopping season, with the reality of inflation, and the high interest rates imposed to fight it. With prices up substantially from last year, the shoppers are displaying the feeling that they do not have enough money for their needs much less for discretionary spending. With willingness to spend low the retailers’ profits are threatened.

Federal Reserve Chairman Jerome Powell pushed back on market expectations for aggressive interest rate cuts in the near term. “It would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease,” Powell said in a speech last Friday, as we await next week’s rate decision. Markets largely took Powell’s comments as dovish, with stocks up and treasury yields down sharply on a weak jobs report. The U.S. markets are very near the high for the year. Maybe it’s time to look at asset allocation and reset.

The U.S. dollar continued weak, remaining at the level it began the year. Gold broke to a new all-time high at $ 2,061/oz early in the week, but quickly fell back to $2,030, bouncing off $2,000 this morning back up to $2012/oz. Fear not, the breakout has not failed but is in the early high-volatility stage. In a typical breakout it often takes several wild swings before the moonshot occurs. Gold is a good thing to hold, and gold stocks are still cheap. Silver did not run up to new highs but got to $25.20/oz before falling back to $23.50. Silver usually follows behind in a gold breakout.

Base metals started to show some life this week, on the back of the dollar weakness, but could not hold the gains. Battery materials were struggling again, as Lithium at $13.77/kg is down by 80% this year. The Uranium price hit $81.45/lb. as nuclear power discussions at the COP28 conference are being “celebrated” this year, after simply being “tolerated” at past meetings.

Oil had a bad week, dropping below $69/bbl. (WTI) before recovering to $71.50 the morning of December 8. Questions over the supply/demand balance came up. Too much U.S. supply, and maybe the Saudis want to allow the price to slip to discourage those shale producers. Oil is not going away anytime soon, and some volatility here may create buying opportunities.

Keep the money invested, remain bullish but cautious.

It has been a very interesting week for our clients, and we are pleased to present to you our round-up of their news released between December 4 – 8, 2023.

Mining

On December 4, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) was covered in an article titled “Sokoman Minerals Corp.: Making Key Discoveries in the Mining Landscape”, in the 16th issue of the Innovation Platform, published by the Innovation News Network.

Read the article on Sokoman Here.

Open the full online version of the Innovation Platform Here.

On December 6, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF)announced that, due to overwhelming demand, the Company is increasing its flow-through (FT) private placement financing by CAD$483,525 to total aggregate gross proceeds of CAD$3,483,525.

The FT Financing consists of CAD$0.065 units, each Unit consisting of one flow-through common share, and one-half of a common share purchase warrant, each full Warrant being exercisable for one additional common share of the Company, at an exercise price of CAD$0.13 for 12 months from the date of issue.

The Company is also pleased to announce a non-flow-through unit financing for aggregate gross proceeds of CAD$208,000. Priced at CAD$0.065 each, unit consists of one common share of the Company and one common share purchase warrant. Each Warrant being exercisable for an additional common share of the Company at an exercise price of CAD$0.13 for 24 months from the date of issuance.

All securities issued pursuant to the FT Financing and the NFT Financing (together the “Financings”) will be subject to a four-month and one-day hold period.

Fintech

On December 4, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) announced that activity from the Cubeler® Business Hub’s “Financing” pillar during the month of November 2023, pushed the platform over $1,250,000 in loans facilitated in Canada.

The Cubeler® Business Hub also continued to attract new lenders and small and medium-sized enterprises (SMEs) during the month. Alternative lender Growth Street Capital (https://growthstreetcapital.com/) joined the platform, and after a significant decline in the number of new SME registrations on the platform from the second quarter to the third quarter, SME registrations as of the date of this news release were up by over 25% during the fourth quarter of 2023.

As of the end of November 2023, SME membership on the Cubeler® Business Hub in Canada included businesses operating in industries represented by 18 of the 20 North American Industry Classification System codes, missing only businesses operating in the “Public Administration” and “Finance and Insurance” industries.

On December 5, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) announced that the company had processed and delivered over 10,000 parcels worth approximately CAD$2,000,000 during this year’s Singles’ Day shopping event.

Tenet released an updated version of its Fast Duck Supply-chain Management software just before Singles’ Day, which allowed sixty participating micro distribution hubs and about 150 delivery trucks, cars, and bikes from Fast Duck Logistics Ltd. to accomplish the feat.

While the program is currently focused on helping Chinese online retailers distribute their products more efficiently, Tenet and Fast Duck believe that it will eventually also play an important role in allowing Cubeler® Business Hub members in North America and other markets sell and distribute their products to Chinese consumers and businesses.

CHF strongly supports this letter-writing program initiated by PearTree Securities and asks everyone involved in the mining and exploration sector to participate.

Read Steve Mlot’s CHF Byte-sized review here: https://ow.ly/bUHq50QgqNu