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The U.S. election finally happened this week, and a majority of voters were not taken in by the nasty rhetoric and celebrity endorsements. This left Mr. Trump as president-elect and the Republican Party with a possible majority in both the House and Senate. At the end of a bitter and divisive campaign, democracy won out, but not the party that claimed to be protecting democracy.
Canadian markets began reacting positively on election day and have continued rising almost to a new record high mid-day Thursday but with some selling this morning. Bay Street analysts and portfolio managers believe that Trump’s victory will eventually strengthen Canadian stocks despite the Canadian dollar falling to its lowest point this year. The deputy prime minister, Chrystia Freeland, highlighted Canada’s tougher approach to Chinese exports in a move to gain favor with Donald Trump and his key advisers.
In the U.S., the markets reacted strongly upward as the election results became known. S&P 500, NYSE (Dow Jones), and NASDAQ all jumped at the opening on Wednesday and continued upward at new all-time highs Thursday before flattening in late trading. However, in U.S. Bonds, prices fell, and the 10-year yield rose to and briefly above 4.5%. The U.S. Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in inflation. The economy grew at a solid annual rate, just below 3% over the past six months, while consumer spending rose strongly in the July-September quarter. Chair Powell has suggested that the Fed is reducing its key rate in part to bolster the job market. If economic growth continues at too healthy a clip and inflation climbs again, the central bank will have little room for further rate cuts next year. The rate differential between U.S. Bonds and other foreign bonds draws international money to U.S. securities, causing the U.S. dollar to rise against international currencies for the last six weeks.
The Bank of England is the latest central bank to cut its interest rates further. In a much-anticipated move, the BoE cut its Bank Rate to 4.75% on Thursday. The central bank said that it had more room to cut rates as inflation is expected to remain near its 2% target.
Gold sold off dramatically after Trump’s election victory drove the U.S. dollar to a four-month high. Gold prices fell sharply on Wednesday, as traders locked in profits amid a stronger U.S. dollar and surging Treasury yields. Prices fell to as low as USD$2,645/oz. Wednesday, but on Thursday, bullion climbed back to USD$2,700, opening at USD$2,695 this morning. Silver gave up USD$2.00/oz on Wednesday but climbed back to USD$31.75 on Thursday, opening at USD$31.70 today. Precious metals remain a good investment.
Base and industrial metals all fell sharply on the election results, but most of the loss was regained over the next two days; essentially, metals have been trading sideways for the past month. Critical and battery minerals were changed a little, and they are already at very low levels. Fears remain that the Trump administration will eliminate EV mandates and subsidies as well as subsidies for wind and solar generation, putting a further damper on this sector. The reality is that the future is electric. The energy transition is underway and will not be stopped. Data centres and AI build-out will only increase, and a drive to expand U.S. manufacturing means that the demand for energy production will expand massively. The transmission grid will have to be expanded. New power plants, gas fired, nuclear, geothermal, and renewable generation will have to be built. Don’t be underinvested in this sector for too much longer.
The President-elect's "drill baby drill" philosophy, aimed at boosting petroleum production to increase supply and reduce domestic gasoline prices, will also significantly increase natural gas production. This boost in natural gas output is crucial for electricity generation and LNG exports. Previously restricted by Biden's ban, these exports will now be freed up, enabling the U.S. to send energy to Europe and Asia, positioning America as a major global energy supplier.
Again, it has been a productive week for our clients, and we are pleased to present to you our round-up of their news released between November 2-8, 2024.
Mining
On November 1, 2024, Falcon Gold Corp. (TSXV: FG) (FRA:3FA) closed the first tranche of its non-brokered private placement by issuing 5,000,000 flow-through units at $0.04 per FT Unit and 1,000,000 non-flow-through units at $0.035 per NFT Unit for aggregate gross proceeds of $235,000.
The net proceeds from the sale of the FT Units will be used to incur "Canadian exploration expenses" within the meaning of the Income Tax Act (Canada) on the Company's properties in the province of Newfoundland. The net proceeds from the sale of the NFT Units will be used for general working capital and corporate purposes. None of the proceeds from the Private Placement will be used for payments to non-arm's length parties or persons conducting investor relations activities.
On November 2, 2024, Tim Froude, P.Geo., President and CEO of Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) sat down with noted mining analyst Allan Barry Laboucan on his “Rocks and Stocks News Show” to discuss the Moosehead project, which hosts a rare, high-grade orogenic gold system with transformative potential. Comparable to the Red Lake and Fosterville mines that became pivotal assets for Goldcorp and Kirkland Lake Gold, Moosehead holds immense value. Sokoman’s team is making excellent progress in unlocking its full potential.
November 5 – November 8, 2024, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) is attending and exhibiting at the Mineral Resources Review 2024, Newfoundland and Labrador’s premier mineral exploration and mining conference and Exhibition. Visit them at Booth #57 Delta Hotels St. John’s Conference Centre, 120 New Gower Street, St. John’s, Newfoundland.
(L to R) Brian Bursey, Senior Technician, Rick Crocker, Senior Prospector
and Tim Froude President & CEO
Fintech
On November 5, 2024, Mayco Quiroz, COO of Tenet Fintech Group Inc. (CSE: PKK) (OTC PINK: PKKFF) participated in a Q&A with All About Tenet Discord Group (Hoss and Sports Discord) to introduce himself on a personal level and answer shareholder questions.
Watch the interview here
November 6, 2024, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) announced that the common shares of the Company will officially begin trading on the OTCQB Venture Market in the U.S. at market open November 7, 2024, under the symbol "PKKFF". The Company's common shares will continue to trade under the symbol "PKK" on the Canadian Securities Exchange.
The Company elected to have its common shares cross-traded on the OTCQB Venture Market to provide efficient access to U.S. investors, to continue to enhance liquidity for shareholders and facilitate a fair valuation of its securities going forward. Through trading on OTCQB, companies can engage a far greater network of U.S. investors, data distributors and media partners, ensuring U.S. investors have access to the same high-quality information that is available to investors in Canada, but through U.S. platforms and portals used to conduct research.
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