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September continues to be volatile with market players examining every bit of economic data and news, and that is causing even more shifts, and changes in market sentiment, certainly interesting times.
Canadian Markets, led by utilities, energy, and gold, rebounded this week. The TSX closed at a new all-time high on Thursday and is poised to keep moving up today.
On Wednesday, the US Federal Reserve made its long-delayed first cut to the benchmark interest rate in more than four years, by an unusually large and unexpected 0.5%, with more to come. The rate cut reflects its new focus on bolstering the job market, which has shown clear signs of slowing and trying to achieve a soft landing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. Cash looks like it will flood out of Treasuries and into the stocks. NYSE and NASDAQ are both moving up. The US Dollar is at its lowest point this year.
The Fed’s policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. And they envision four more rate cuts in 2025 and two in 2026. Markets welcomed the news, and the S&P 500 made a new high, running up to 5714 on Thursday.
Precious metals were moving on Thursday, with gold rallying to a new all-time high of $USD2,600/oz, opening today at USD$2,614. Silver broke through the $USD30/oz level and opens today at USD$31.26, still having a long way up to return to a more normal ratio to the gold price. September is usually a weak month for gold, but forecasts are now $USD2,700-3,000/oz before the end of the year. Continue to look for buying opportunities in gold equities, especially the undervalued junior sector, which is under-owned by most investors. ETFs and hedge funds appear to be accumulating gold and still have a long way to go to get back to the levels held in 2021-2022, so demand will remain strong. M&A activity in the precious metals continues as AngloGold Ashanti buys Egypt-focused Centamin in a USD$2.5 billion stock and cash deal. First, Majestic Silver acquired Mexican producer Gatos Silver, showing that there are still silver believers.
Base metals were all down through the first week of September, and China’s forward economic outlook, even called recession, has cast some shade on markets. Copper is near $USD4.26/lb. today. Other metals got a bit of a price lift from the continuing weakness in the U.S. dollar. Not to be left out of the M&A activity, junior miners Copper Standard Resources and Pucara Gold are merging to create a new Peru-focused copper exploration company. Opportunities are out there. Barrick Gold expects to complete the feasibility study for the expansion of its Lumwana copper mine in Zambia by the end of the year, which could have a construction start in 2025. Lundin Mining Corp. is looking to sell its mines in Europe as the Canadian metals producer focuses on Latin America. It teamed up with BHP Group Ltd. in July to buy Filo Corp. as part of its effort to develop major copper mines in Argentina. The metals and mining sector continues to be vibrant and active, making it a worthwhile investment area.
The China slowdown in demand continues to hurt the Battery and Critical material markets. Lithium, at USD$10.60/kg, is at mid-2019 prices. Cobalt, at USD$11.00, is near a 10-year low. Even Chinese EV manufacturers, as are American car makers, are reconsidering investments in output expansion. The future is electric, but it will take longer to arrive. The opportunity is in Western supply chain players who can move production and refining away from China.
It has been productive for our clients as they continue to advance their businesses, and we are pleased to present to you our round-up of their news released between September 9-20, 2024.
Mining
On September 9, 2024, Falcon Gold Corp. (TSXV: FG) (GR:3FA) (OTCQB: FGLDF) reported that drill crews and equipment are now being mobilized to our Great Burnt Copper Project located in Central Newfoundland. The Company previously encountered delays earlier this spring due to high water levels in accessing the Property. The Company has now completed 3 km of additional road to the drill site from the government access road which we share with Benton Resources.
The Great Burnt Copper Property
Falcon holds 2,275 hectares in the Great Burnt camp, with licenses located north of, and contiguous to, Benton Resources Inc. - Homeland Nickel (previously known as Spruce Ridge Resources Ltd.) Great Burnt Copper-Gold joint venture. Benton Resources Inc. ("Benton") optioned the Great Burnt Copper-Gold Project from Spruce Ridge Resources Ltd. (now known as Homeland Nickel) in an agreement that allowed Benton to earn a 70% interest in the property. The Benton property is host to the Great Burnt Copper Zone, a deposit with an indicated resource of 381,300 tonnes at 2.68% Cu and inferred resources of 663,100 tonnes at 2.10% Cu. Recent drilling by Benton at the Great Burnt Copper Deposit reported drill results that returned 7.20% Cu, 7.12 g/t Ag, and 0.05% Co over 12.30 metres. Previous drilling in 2020 by Spruce Ridge reported 8.06% Cu over 27.2 m.
Figure 1. Drill Target Location Map at Great Burnt Copper Project with Falcon Claims in Red and Benton - Homeland Nickel (previously Spruce Ridge) Great Burnt Copper-Gold joint venture in Green.
On September 11, 2024, Nuinsco Resources Limited (CSE: NWI, FRA: NJX) announced that sensitivity analysis of P2O5 and REE mineralization at the Prairie Lake Critical Minerals Project indicates the potential for a starter pit resource near the centre of the Prairie Lake Complex with substantially higher P2O5 and REE grades than previously reported.
On September 19, 2024, Falcon Gold Corp. (FG: TSXV), (3FA: GR) (FGLDF: OTCQB) reported that drilling has commenced at the Great Burnt Copper Project located in Central Newfoundland. The Company has completed 8kms of additional road to the drill site from the government access road which we share Benton Resources. (see Figure 1 above) Karim Rayani, Chief Executive Officer and director stated: “We are excited to have our inaugural drill campaign underway at our Great Burnt Project. The magnetic signature suggests that Falcon controls the northern extension of the same magnetic feature that Benton Resources has had recent success in drilling and sampling. We will be initially testing ten geophysical anomalies and will plan to extend the program once we receive the necessary government approvals.”
Save Canadian Mining Update
Naked Short Selling has cost Canadian companies over $1 trillion in market capitalization. It has been a silent contributor to the negative impact on junior, microcap, and small companies on the TSX Venture, CSE, NEO, and alternative markets.
The S&P/TSX Venture index has decreased over 60%, in the same period.
The S&P/TSX Venture index has dropped by over 80% since its high in 2007.
Market fairness, transparent standards, and equitable regulations are needed to continue delivering prosperity in Canada. It will require all caring Canadian citizens to band together as a collective voice to PUSH HARD industry regulators, market participants, financial institutions, and government officials on the virtues of a fair and level playing field for ALL companies. For more information on the current status of the fight against naked short selling, please listen to Terry Lynch’s interview, in which he addresses the reasons for understanding the problem, identifies the culprits, clarifies the priorities, appreciates precedence, and encourages us all to act NOW.
Warning to Naked Short Sellers: We are not going to be fooled any longer.It is time: the BIG PUSH is on!
Technology
On September 16, 2024, Visionstate Corp. (TSXV: VIS) announced that it has secured funding to advance the AI capabilities of its proprietary WANDA technology through a partnership with the Alberta Machine Intelligence Institute (Amii). This collaboration aims to revolutionize the complexities of staff and task scheduling in dynamic facility management environments by leveraging Amii’s leading AI expertise. Visionstate will streamline the time-intensive and complex scheduling process, producing schedules that meet task completion requirements and adapt to constantly changing conditions enhancing the efficiency of task management in real-time.
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