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Archive for Financial News – Page 277

Silver Co. Posts Record Production in Q3; Raises FY Guidance

Shares of Gatos Silver Inc. traded 29% higher yesterday after the company reported it achieved record levels of production at its Cerro Los Gatos mine during Q3/22. The firm raised its FY/22 production guidance while lowering its operating cost estimates.

After U.S. markets closed Tuesday, silver explorer, developer, and producer Gatos Silver Inc. (GATO:TSX; GATO:NYSE) announced “record production results from its 70%-owned Cerro Los Gatos (CLG) mine for the quarter and nine months ended September 30, 2022.”

The company highlighted that in Q3/22, silver production at GLG increased by 59% to 2.7 Moz Ag (million ounces silver), compared to 1.7 Moz Ag in Q3/21.

The firm advised that due to the positive results it achieved in Q3/22, it is raising its FY/22 production guidance and, at the same time, is lowering its FY/22 cost guidance.

Gatos Silver’s CEO Dale Andres stated, “Our continued strong operating performance at CLG during the quarter reflects planned production sequencing, with mill throughput exceeding design capacity by 15% and with higher ore grades compared with a year earlier.”

Gatos Silver raised its forward silver production guidance at the CLG mine by 9.2% over its previous estimates and advised that for FY/22, it expects the mine to produce 9.35-9.65 Moz Ag (silver), compared to its prior projections of 8.50-9.0 Moz Ag.

“Our priority exploration and definition drilling objectives are to extend our mine life by converting the higher-grade portion of our current Mineral Resource into Reserves and to follow up on the mineralization recently discovered at depth in the new South-East Deeps zone while assessing its potential implications for the entire Los Gatos district, Andres added.”

In addition to the record silver production mentioned above, during Q3/22, the GLG mine also registered record production of both lead and zinc. Zinc production increased by 32% year-over-year to 17.8 Mlb (million pounds), and lead production rose 13% y-o-y to 12.2 Mlb.

The company explained that the gains in production were attributed to record amounts of higher-grade material processed at the mill, which averaged 2,862 tpd (tonnes per day). The firm stated that it expects to process the same volumes but of somewhat lower-grade ore in Q4/22 as the highest-grade sections of the orebody were milled in Q3/22.

The company said that in Q3/22, it completed a fourth lift of the tailings dam and indicated that the construction of its paste plant is nearly finished. These events are expected to increase productivity and lower operating costs beginning in Q4/22.

Gatos Silver raised its forward silver production guidance at the CLG mine by 9.2% over its previous estimates and advised that for FY/22, it expects the mine to produce 9.35-9.65 Moz Ag (silver), compared to its prior projections of 8.50-9.0 Moz Ag.

The company added that it is also raising its estimates for gold (Au), lead (Pb), and zinc (Zn) concentrates production by even higher per percentages and stated that for FY/22, it expects to produce 5.0-5.3 Koz Au (thousand ounces gold), 43-45 Mlb Pb (million pounds lead), and 58-61 Mlb Zn.

The firm pointed out that while it is increasing production, it is now incurring lower total operating expenses and now expects FY/22 all-in-sustaining costs (AISC) to decrease by about 14% compared to prior forecasts. The company said that for FY/22, it expects AISC on a co-product basis of $15.50-16.50 per Ag eq oz. Gatos added that AISC for payable silver ounces produced is expected to be even lower at $11.50 -12.50 per Ag eq oz.

The firm advised that it estimates that for FY/22, it will have total sustaining capital expenditures in the amount of $75 million.

Gatos Silver mentioned that after it finishes construction of its paste plant in Q4/22, it expects that all-in –sustaining costs (AISC) will fall substantially throughout FY/23. In addition, there are no large expenses projected for tailings dam construction in FY/23, which will also lower overall expenses.

The company noted that, as it previously announced, it is proceeding with its plans to move its executive offices to Vancouver, B.C., from Denver, Colo., and expects to complete the transition in Q4/22.

The firm indicated that as of September 30, 2022, the Los Gatos Joint Venture (LGJV) had a cash balance of $39 million, compared to $40 million on June 30, 2022. In addition, the company advised that because of the CLG mine’s strong operating performance in Q3/22, it received its second quarterly dividend from the LGJV in the amount of $10 million.

The company stated that last week “it announced an updated CLG Mineral Reserve Estimate, Mineral Resource Estimate and Life of Mine plan and expects to produce a new technical report at the end of October 2022.”

Gatos Silver reiterated that, as it advised in a prior news release, it is presently working to find a licensed auditor in B.C., Canada, to perform an audit and complete a review of its financial statements. The firm indicated that it anticipates that at least one material issue may exist and will take the necessary steps to remedy any items discovered in the audit process as soon as practicable.

Specifically, the company advised that “it anticipates completing an impairment assessment based on the 2022 Mineral Reserve in Q4/22 and is working towards completing all outstanding SEC and OSC filings as soon as practicable.”

Gatos Silver is focused on exploration, development, and production at the Cerro Los Gatos deposit in the State of Chihuahua, Mexico, in which it owns a 70% interest through a joint venture. The property encompasses about 103,087 ha and is highly prospective for mining silver, zinc, lead, and some gold.

Gatos Silver started yesterday with a market cap of around $178.4 million, with approximately 69.1 million shares outstanding and a short interest of about 2.4%. GATO shares opened 8% higher yesterday at $2.79 (+$0.21, +8.14%) over the previous day’s $2.58 closing price. The stock traded between $2.78 and $3.43 per share and closed for trading at $3.33 (+$0.78, +29.07%).

Disclosures:
1) Stephen Hytha wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Financial News Metals

13 Oct

Biopharma Co. Partners With Merck for Combo Drug Trial

Source: Dr. Joseph Pantginis (10/12/22)

With this and other clinical studies, the U.S. company has a busy and, thus, catalyst-rich Q4/22 ahead, noted an H.C. Wainwright & Co. report.

Compass Therapeutics Inc. (CMPX:NASDAQ) entered a partnership with Merck & Co. Inc. (MRK:NYSE) to conduct a clinical trial evaluating the combination treatment of Compass’ CTX-471 plus Merck’s Keytruda in a subpopulation of patients with certain metastatic or locally advanced cancers, reported H.C. Wainwright & Co. analyst Dr. Joseph Pantginis in an October 11, 2022 research note. CTX-471 is a monoclonal antibody targeting CD137.

“Phase 1b is an important signal-seeking study,” Pantginis wrote.

Also of note, the Massachusetts-based biopharma offers investors significant potential return, as indicated by its current share price of US$3.11 and H.C. Wainwright’s target price on the company of US$12 per share.

Participants in the Phase 1b collaboration study will be patients with non-small cell lung cancer, small cell lung cancer, melanoma, or squamous cell carcinoma of the head and neck who progressed after receiving checkpoint inhibitor therapy. In the trial, after a patient progresses, they will be given CTX-471 plus Keytruda. Part one of the study will test escalating doses of CTX-471 and a fixed Keytruda dose. Part two will test expanding doses.

Also of note, the Massachusetts-based biopharma offers investors significant potential return, as indicated by its current share price of US$3.11 and H.C. Wainwright’s target price on the company of US$12 per share.

Pantginis pointed out that Merck and other big pharmaceutical firms are now highly selective when collaborating regarding their checkpoint inhibitors. Merck having agreed to join forces with Compass, suggests “the combination approach must make mechanistic sense, and we believe combining CTX-471 and Keytruda fits the bill.”

Other Plans for Pipeline

In addition to this Phase 1b, Compass intends to conduct two additional CTX-471 studies. One is a post-cyclin-dependent kinase inhibitor salvage study, Pantginis relayed. The other will test induction therapy of carboplatin/etoposide/atezolizumab followed by maintenance atezolizumab plus/minus CTX-471 as a first-line treatment for small cell lung cancer patients.

Near-Term Catalysts

Compass is busy this quarter with several “meaningful milestones lined up, noted Pantginis. The “leading value driver” for the biopharma, according to Pantginis, is the start of a Phase 2/3 study in the U.S. of CTX-009 in biliary tract cancer.

Other potential stock-moving events are the start of a Phase 2 study of CTX-009 in advanced colorectal cancer and the completion of Phase 1b CTX-471 monotherapy study in various cancers. Finally, Compass is targeting Q4/22 for submitting an investigational new drug application for CTX-8371.

H.C. Wainwright has a Buy rating on Compass.

“Our focus is squarely on Compass’ clinical data delivered by CTX-009, to date, as well as its strong cash balance to weather these depressing markets,” Pantginis wrote.

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Disclosures For H.C.Wainwright & Co., Compass Therapeutics Inc., October 11, 2022

H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.

I, Joseph Pantginis, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Compass Therapeutics, Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of September 30, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Compass Therapeutics, Inc..

Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report. The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from Compass Therapeutics, Inc. for non-investment banking services in the previous 12 months. The Firm or its affiliates did receive compensation from Compass Therapeutics, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Compass Therapeutics, Inc. during the past 12 months. The Firm does not make a market in Compass Therapeutics, Inc. as of the date of this research report. The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously.

No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request. H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal – investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report.

H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report. H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.

The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice.

Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.

13 Oct

Metamaterials Co. Works To Safeguard Cash From Counterfeiters

Source: Streetwise Reports (10/7/22)

This nanotech company has been awarded US$4.3 million to develop anti-counterfeiting measures on currency for a confidential G10 central bank customer.

Nova Scotia-based nanotech company Meta Materials Inc. (MMAT:NASDAQ; MMAX:CSE; MMAT:FSE) has been awarded US$4.3 million in purchase orders to develop anti-counterfeiting measures for a confidential G10 central bank customer.

It’s part of an agreement with the bank for a maximum of US$41.5 million in orders over up to five years. The customer can increase the scope of the award.

The total value of imported fake goods worldwide was about US$509 billion in 2016, or about 3.3% of global trade, according to a 2019 OECD report. META said the security printing market is valued at US$29.8 billion and is growing.

“The proliferation of fraudulent operations around the world and the usage of counterfeit money in industries like banking, gaming, and retail are the main drivers of this market’s expansion,” Adroit Market Research said about the counterfeit money detection market that has sprang up to defend against the threat of fake currency. “This market is finding new growth opportunities thanks to the rise of new retail automated devices such as portable point-of-sale terminals. Governments around the world are making an effort to minimize the use of fake cash.”

In addition to the US$4.3 million just announced, the bank had already awarded the company a total of US$9.2 million, US$1 million of it for development services, and about US$1.2 million for creating samples.

Developed first in the 1960s, metamaterials came into their own when design and manufacturing capabilities caught up to the technology in the 2000s.

META is using them to develop nanotechnology products like self-deicing and defogging car and truck headlights and windows, see-through antennas, augmented reality glasses that look like regular glasses, and special eyewear that protects pilots’ eyes from laser strikes.

META is applying futuristic technology to the communications, health and wellness, aerospace, automotive, and clean energy sectors.

The company could not describe the security measures it will use for the bank in detail — for obvious reasons. It doesn’t want the competition to know what they are. And who’s the competition? The counterfeiters, of course.

“Central banks are conservative by nature,” said Rob Stone, META’s vice president for corporate development and communications. “There may be as many as 10 different security features on any given banknote. Some of them are visible, overt features. Some of them are covert and only readable with the right equipment or sensors. It’s this combination of all that banks use to try and make it hard to fake currency.”

The Catalyst

The award is part of an ongoing contract with the bank, which META could not identify for security reasons. But Stone did say it was to work on the currency.

In addition to the US$4.3 million just announced, the bank had already awarded the company a total of US$9.2 million, US$1 million of it for development services, and about US$1.2 million for creating samples.

Meta Materials is a “technology leader,” ROTH Capital Partners analyst Gerry Sweeney wrote in a May research report, when ROTH initiated coverage on the company with a Buy rating and a target of US$2.25.

“We’re doing something that’s never been done before,” Stone said. “When we do secure a production contract, we believe it will very likely lead to additional business with that same central bank and additional business opportunities with other central banks.”

A blog on META’s site describes some of the security measures available through their technology, including images with omnidirectional movement, 3D depth, or holographic security patterns.

Those effects are “the exact visual triggers that millions of years of evolution have optimized human visual receptors to detect and respond to,” the company said. “Our toolkit of innovative nano-optic based visual effects to combat counterfeiting is available to brands and designers that are looking to build . . . extremely secure, custom solutions that (work) well with their brand.”

And it’s not just currency. META also offers the technology for use on documents, smart packaging, and gift cards. The technology can also help prevent loss of life due to counterfeit medication.

Meta Materials Is More Than Money, Document Security

META is also developing components for lithium-ion batteries needed for expanding the burgeoning electric vehicle (EV) industry. It was recently granted two U.S. patents for its second-generation NPORE® nanoporous ceramic separator and its third-generation NPORE® ECS (electrode-coated separator) for lithium-ion batteries.

The global market for lithium-ion battery separators was estimated at US$5.1 billion in 2021 and is projected to reach US$9 billion by 2025, Yano Research Institute Ltd. said.

Meta Materials is a “technology leader,” ROTH Capital Partners analyst Gerry Sweeney wrote in a May research report when ROTH initiated coverage on the company with a Buy rating and a target of US$2.25.

“We believe MMAT is a leader in metamaterials, and we anticipate the company to aggressively fund R&D to develop new opportunities, enhance existing products and improve manufacturing procedures to lower production costs,” Sweeney wrote.

The company has 450 active patent documents, of which 288 patents have been granted across all its technologies, Stone said.

Ownership and Share Structure

Major META shareholders include Thomas Gordon Welch, with 6.45% or 23.28 million shares; Lamda Guard Technologies Ltd., with 6.37% or 22.98 million shares; Anne Barber Lambert, with 6.36% or 22.97 million shares; and State Street Global Advisors, with 3.55% or 12.82 million shares, according to Reuters. About 14% of Meta is held institutionally held.

The company has a market cap of $240.28 million with 361 million shares outstanding, 270.6 million of them free-floating. It trades in a 52-week range of US$5.78 and US$0.63.

Disclosures:
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Meta Materials Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Meta Materials Inc., a company mentioned in this article.

Financial News Stock Market News

13 Oct

Are You Prepared for Widespread Bank Failures?

“This time, the world economy appears to be on much shakier footing”

By Elliott Wave International

The ideal time to prepare for most anything in life, especially a potential circumstance that’s adverse, is before it happens.

The problem is: Many people don’t know what will happen in their lives ahead of time.

However, sometimes warnings are provided yet they’re ignored or not taken seriously. A current warning from Elliott Wave International which people are urged to take very seriously is that the economic slowdown could morph into something far worse than a garden-variety recession.

Here’s what Robert Prechter’s Last Chance to Conquer the Crash has to say:

In 2008-2009, some U.S. banks came under pressure of insolvency, just as the first edition of Conquer the Crash predicted. Fed bailouts kept most of them open. In the next depression, bank runs and mass closings are far more probable.

Indeed, a troubling sign for the banking industry has already started to develop.

Here’s an Oct. 3 headline (Business Insider):

Credit Suisse is fending off concerns about its financial health, fanning fears of another Lehman Brothers moment that could roil the global financial system. …

The next day (Oct. 4), Barron’s had the straightforward headline:

Credit Suisse Is In Deep Trouble.

In a nutshell, the Swiss banking giant plans a massive restructuring, and executives recently had to reassure major clients and investors about the bank’s liquidity.

Concerns about the financial health of Credit Suisse doesn’t mean that a systemic banking crisis will start tomorrow or next week. However, it may be a good idea to check out the financial health of the bank or banks with which you do business, especially considering the broad backdrop — as represented by these headlines:

Global Manufacturing Index Contracts for First Time Since 2020 (Bloomberg, Oct. 3)
IMF presents ‘darkening outlook’ for global economy (UPI News, Oct. 6)

Days before that global economy headline published, the October Elliott Wave Financial Forecast, a monthly publication which provides analysis of major U.S. financial markets, showed this chart and said:

This chart of Global Real Economic Activity … shows that the world economy is heading into an extraordinary period of economic contraction. The trendline points out a long-term divergence from the last peak, in May 2008, which followed the Dow Industrials’ October 2007 top by eight months. The latest peak in the index came in October 2021. … This time, the world economy appears to be on much shakier footing.

Now is the time to prepare for what may be just around the corner.

One way to prepare is to get a handle on the stock market’s trend because the stock market tends to lead the economy.

The Elliott wave model can help you analyze the stock market.

If you’re unfamiliar with the Elliott wave model or need a refresher, the definitive text on the subject is Frost & Prechter’s Elliott Wave Principle: Key to Market Behavior. Here’s a quote:

All waves may be categorized by relative size, or degree. The degree of a wave is determined by its size and position relative to component, adjacent and encompassing waves. Elliott named nine degrees of waves, from the smallest discernible on an hourly chart to the largest wave he could assume existed from the data then available. He chose the following terms for these degrees, from largest to smallest: Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, Minuette, Subminuette. Cycle waves subdivide into Primary waves that subdivide into Intermediate waves that in turn subdivide into Minor waves, and so on. The specific terminology is not critical to the identification of degrees, although out of habit, today’s practitioners have become comfortable with Elliott’s nomenclature.

If you’d like to read the entire online version of this Wall Street classic, you may do so for free once you join Club EWI, the world’s largest Elliott wave educational community.

A Club EWI membership is also free and members enjoy complimentary access to a wealth of Elliott wave resources on investing and trading.

Just follow this link to get started: Elliott Wave Principle: Key to Market Behavior — free and instant access.

This article was syndicated by Elliott Wave International and was originally published under the headline Are You Prepared for Widespread Bank Failures?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Economics & Fundamentals Financial News

13 Oct

Rare Earths Co. Sees Big Results at British Columbia Project

Source: Streetwise Reports (10/12/22)

Two core drill holes are showing broad mineralization at Defense Metals Corp.’s Wicheeda rare earth element deposit.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) on Tuesday released results from two core drill holes showing broad mineralization at its 100%-owned Wicheeda rare earth element (REE) deposit in British Columbia.

The deepest hole drilled so far on the site at 395 meters, WI22-68, intersected 3.58% total rare earth oxide (TREO) over 124 meters, including 6.7% TREO over 18 meters and one 3-meter sample of 8.58% TREO.

Last month, Noble Capital Markets Senior Research Analyst Mark Reichman issued a note continuing to rate the company Outperform with a target of CA$0.90.

Just last week, analyst Michael Gray of Agentis Capital initiated coverage on Defense Metals, saying Wicheeda was well-located with access to key infrastructure and “could become a globally significant producer” of REEs.

“We are initiating coverage with a high conviction that DEFN is a best-of-breed North American REE developer that is well-positioned to its leverage growing global REE demand and government support to become part of a North American REE critical metals supply chain,” Gray wrote on October 3, 2022, when he set a 12-month valuation of CA$3.50 for the stock.

On Tuesday, he issued a note reaffirming his valuation, saying the hole “outperformed the deposit average.”

“We think the REE-enriched carbonatite unit could be larger than Defense anticipated, with coarse-grained mineralization encountered at depth in hole 68,” Gray wrote.

A second hole released this week, WI22-63, returned 2.29% TREO over 39 meters, including 5.08% TREO over 9 meters.

Last month, Noble Capital Markets Senior Research Analyst Mark Reichman issued a note continuing to rate the company Outperform with a target of CA$0.90.

The Catalyst

Gray said it’s an “excellent time to enter the REE space.” REEs are in high demand in the new green economy for purifying water, MRIs, fertilizers, weapons, research, wind turbines, computers, and permanent magnet motors for electric vehicles (EVs).

Defense Metals hopes to produce as much as 10% of the world’s light REEs to compete with China, which has about 85% of the world’s REE processing capacity. Political issues between the United States, China, and Taiwan put that vital supply at risk.

Given those needs, the company said it is moving as quickly as possible with the project.

Gray with Agentis said industries that use the elements are set to expand.

“We have taken our deposit from a bulk sample to pre-feasibility in four years,” Defense Metals Chief Executive Officer and Director Craig Taylor said. “I don’t think there is another rare earth deposit I can think of that has advanced this quickly.”

A preliminary economic assessment (PEA) for Wicheeda in 2021 showed an after-tax net present value of CA$512 million. Its 43-101 technical report showed a 5 million tonne indicated resource at 2.95% total rare earth oxides (TREO) and a 29.5 million tonne inferred resource averaging 1.83% TREO.

About 5,000 meters ended up being drilled this year over 15 holes. Results from 11 holes are still outstanding. The company is expecting to begin a preliminary feasibility study (PFS) before the end of 2022.

Industries Set to Expand

Realizing the importance of REEs, the U.S. government in February announced a US$35 million grant to MP Materials Corp. to process the elements at its California facility. The company has agreed to invest US$700 million to create more than 350 jobs in the permanent magnet sector by 2024.

Gray with Agentis said industries that use the elements are set to expand.

“The fundamentals for REE demand growth (are) very positive,” he wrote. “Demand is high, and forecasts suggest it will continue to grow, vis a vis the markets for EVs, wind turbines, and defense technologies.”

Currently, the analyst covering Defense Metals Corp. include Mark Reichman of Noble Capital Markets and Michael Gray of Agentis Capital. You can see all the analyst and newsletter coverage by clicking “See More Live Data” in the data box above.

Defense Metals recently also entered into a Mineral Exploration Agreement with the McLeod Lake Indian Band for Wicheeda that creates a framework for communication and cooperation between the company and the group as they move forward.

The company is also testing an acid bake extraction process for the REEs that could lower capital and operating costs. High-temperature concentrated sulfuric acid is used to convert the REEs to water-soluble sulfates, which can then dissolve during a water leach. A precipitation process is then used to recover the REEs.

The process is expected to allow for a more than 95% recovery rate for the REEs, compared to less than 90% with the alternative caustic cracking process. Testing for the new process will likely be finished soon.

Ownership, Analyst Coverage, and Share Structure.

Three money managers — Marquest Asset Management, U.S. Global Investors, and Probity/Qwest Funds — own a small percentage of the company. The rest is retail.

Currently, the analyst covering Defense Metals Corp. include Mark Reichman of Noble Capital Markets and Michael Gray of Agentis Capital. You can see all the analyst and newsletter coverage by clicking “See More Live Data” in the data box above.

Defense Metals has a market cap of CA$46.76 million with 183.4 million shares outstanding, 140.3 million of them free floating. It trades in a 52-week range of CA$0.36 and CA$0.17.

Disclosures:

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He and members of his household are paid by the following companies mentioned in this article: None.

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Financial News Metals

13 Oct

Forex Technical Analysis & Forecast 13.10.2022

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is still consolidating around 0.9680. If later the price breaks the range to the upside, the market may start a new correction up to 0.9794; if to the downside – resume trading downwards with the target at 0.9600, or even extend this structure down to 0.9500.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is consolidating around 1.1030. If later the price breaks the range to the upside, the market may correct up to 1.1170; if to the downside – resume falling with the target at 1.0880, or even extend this structure down to 1.0600.

USDJPY, “US Dollar vs Japanese Yen”

Having completed the ascending wave at 146.95, USDJPY is consolidating below this level. If later the price breaks the range to the upside, the market may start another growth towards 147.50; if to the downside – form a new descending structure with the target at 145.55.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is consolidating above 0.9977. If later the price breaks the range to the upside, the market may form one more ascending wave to reach 1.0073; if to the downside – start a new correction with the target at 0.9900.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is still consolidating above 0.6242. If later the price breaks the range to the upside, the market may start a new correction up to 0.6333; if to the downside – resume trading downwards with the target at 0.6200, or even extend this structure down to 0.6140.

BRENT

After finishing the correction at 92.00, Brent is forming a new consolidation range there. Possibly, the asset may break the range to the upside and resume growing towards 96.00, or even extend this structure up to 100.80.

XAUUSD, “Gold vs US Dollar”

Gold continues consolidating around 1663.33. If later the price breaks the range to the upside, the market may start another correction up to 1685.00; if to the downside – resume falling with the target at 1650.00, or even extend this structure down to 1644.10.

S&P 500

The S&P index is still consolidating below 3624.0 without any specific direction. Possibly, the asset may form a new descending wave to reach 3500.0. Later, the market may correct to test 3620.0 from below and then resume trading downwards with the target at 3444.0.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News

13 Oct

Japanese Candlesticks Analysis 13.10.2022 (USDCAD, AUDUSD, USDCHF)

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after forming a Hanging Man reversal pattern close to the resistance level, USDCAD may reverse in the form of a new descending wave. In this case, the downside correctional target may be at 1.3745. Later, the market may rebound from the support area and resume trading upwards. However, an alternative scenario implies that the asset may continue growing to reach 1.3980 without any pullbacks.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD has formed a Hammer reversal pattern near the support area. At the moment, the asset is reversing in the form of a new ascending impulse. In this case, the upside correctional target may be the resistance level at 0.6360. After testing the level, the price may rebound from it and resume the descending wave. At the same time, the opposite scenario implies that the price may continue falling to reach 0.6215 without any pullbacks.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, the pair has formed a Harami reversal pattern not far from the support area. At the moment, USDCHF may reverse in the form of a new ascending wave. In this case, the upside target may be the resistance level at 1.0060. After testing this level, the price may break it and continue trading upwards. Still, there might be an alternative scenario, in which the asset may correct to reach 0.9940 first and then resume the uptrend.

Article By RoboForex.com

Financial News Forex and Currency News

13 Oct

The Analytical Overview of the Main Currency Pairs on 2022.10.13

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 0.9703
Prev Close: 0.9699
% chg. over the last day: -0.04 %

September FOMC minutes did not report anything new, so investors’ main focus is on the US Consumer Price Index, which will be released today. It is a very important report which will tell how aggressive the US Central Bank will be in its next meetings. If the data shows a slowdown in inflation, it may give a sharp boost to risky assets such as the euro and the pound on expectations that the US Fed will be less aggressive. On the other hand, if inflation shows no sign of slowing, the dollar index will continue to strengthen, leading to further declines in the euro.

Trading recommendations

Support levels: 0.9667, 0.9601
Resistance levels: 0.9743, 0.9856, 0.9962, 1.0058, 1.0111, 1.0162, 1.0230

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price forms a balance, and there is an accumulation of liquidity before the important news, which means that the impulse movement will be significant. The MACD indicator has become inactive. Buy trades should be considered from the support level of 0.9601, but with additional confirmation in the form of reverse initiative. Sell deals can be considered from the resistance level of 0.9743, but only with confirmation.

Alternative scenario: if the price breaks down through the support level of 0.9666 and fixes below it, the downtrend will likely resume.

News feed for 2022.10.13:

– US FOMC member Bowman Speaks at 01:30 (GMT+3);
– US Consumer Price Index (m/m) at 15:30 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0963
Prev Close: 1.1093
% chg. over the last day: +1.18 %

The pound rose against the dollar yesterday as traders bet on a more aggressive interest rate hike by the Bank of England due to concerns that a budget of unaccounted tax cuts would further boost UK inflation. The higher cost of borrowing by the UK government reflects market worries about the affordability of upcoming tax cuts aimed at supporting the British economy, which is in danger of recession. At the moment, investors are confused, so there are likely to be no significant changes before the Bank of England meeting.

Trading recommendations

Support levels: 1.0915, 1.0816, 1.0711, 1.03
Resistance levels: 1.1130, 1.1248, 1.1478, 1.1693, 1.1816, 1.1901

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The MACD indicator is in the positive zone, but buyer pressure is weak. Under such market conditions, buy trades can be considered from the support level of 1.0816. Sell trades are best to look for on intraday timeframes, and the nearest resistance level is 1.1130, but better with confirmation.

Alternative scenario: if the price breaks down of the 1.0915 support level and fixes below it, the downtrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 145.85
Prev Close: 146.84
% chg. over the last day: +0.68 %

The yen weakened to a new low in almost 25 years after Bank of Japan Governor Haruhiko Kuroda pledged to maintain a soft monetary policy to support the economic recovery. Earlier this week, Japanese Prime Minister Fumio Kishida also pledged support for the Bank of Japan’s ultra-easy monetary policy, despite the yen’s fall this year. The Bank of Japan is one of the few central banks in the world to maintain minimum rates, while most of its peers aggressively raise rates to fight inflation. This divergent policy continues to affect the Japanese yen negatively.

Trading recommendations

Support levels: 146.21, 145.92, 144.91, 144.16, 143.00, 140.60, 139.61
Resistance levels: 147.00, 148.00

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the moving levels. The MACD indicator is in the positive zone, and the pressure on buyers remains. Under such market conditions, buy trades can be searched for on intraday time frames from the support level of 146.21, but with confirmation. Sell deals can be searched from the 147.00 or 148.00 resistance level, but only with additional confirmation in the form of a reverse initiative.

Alternative scenario: If the price fixes below 143.00, the downtrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3794
Prev Close: 1.3813
% chg. over the last day: +0.14 %

The Canadian dollar is a commodity currency and depends not only on the monetary policy of the Bank of Canada but also on the dollar index and oil prices. Oil prices continue to decline amid falling demand due to new restrictions in China. On the other hand, OPEC+ is planning to cut production significantly. As a result, there are two opposing forces in the oil market. The US Index may change the parity, the dynamics of which will be determined after today’s inflation data.

Trading recommendations

Support levels: 1.3752, 1.3619, 1.3583, 1.3535, 1.3454
Resistance levels: 1.3858, 1.3968

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is trading above the moving average lines, but the balance is forming before the news. The MACD indicator is positive, but the divergence is present. Under such market conditions, buy trades should be considered on the lower time frames from the support level of 1.3752, but with confirmation. For sell deals, it is better to consider the resistance level of 1.3858, but only after an additional confirmation in the form of a false breakout or reverse initiative.

Alternative scenario: if the price breaks down and consolidates below the support level of 1.3583, the downtrend will likely resume.

News feed for 2022.10.13:

– US Crude Oil Reserves (w/w) at 18:00 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Financial News Forex and Currency News

13 Oct

Investor attention today is focused on US inflation data

By JustForex

The September FOMC meeting minutes showed that policymakers increased their estimate of the Fed rate trajectory needed to reach their goal. At the September meeting, voting members projected that rates would reach 4.4% in 2022 and peak at 4.6% in 2023, with a “Fed reversal” planned for the second half of 2023. But this is no surprise to the market, so the reaction from financial markets was restrained. According to FOMC spokesman Kashkari, if the US economy enters a steep decline, the Fed can always stop raising rates or slow them down, especially if there are signs of a rapid decline in inflation. So the main data of interest to investors is the US consumer inflation rate, which will be released today. A decline in inflation could give a sharp boost to stock indices as US Federal Reserve policy becomes less aggressive in upcoming meetings. Conversely, an inflation acceleration would boost the dollar index and government bond yields, leading to even more stock declines. The US Producer Price Index, which shows the rate of inflation between companies, rose another 0.4% last month, but on an annualized basis, the index fell from 8.7% to 8.5%. So there is hope for a decline in consumer inflation.

As the stock market closed Wednesday, the Dow Jones Index (US30) decreased by 0.10%, and the S&P 500 Index (US500) fell by 0.33%. The NASDAQ Technology Index (US100) was down by 0.09% yesterday.

ECB spokesman Holzmann yesterday unexpectedly spoke not about the ECB but about the US Federal Reserve, saying that the US Central Bank needs to raise interest rates by 75 bps in October and by 50 bps to return the US to an inflation-neutral stance.

The IMF on Tuesday lowered its forecast for global growth in 2023 and said policies to rein in high inflation could add risk to the global economy. Even President Joe Biden said this week that the US could face a “very slight” recession.

European stocks fall for the fifth consecutive session as investors worry about the prospect of a global economic slowdown and shrinking corporate profits due to higher interest rates. Germany’s DAX (DE30) decreased by 0.39%, France’s CAC 40 (FR40) fell by 0.25%, Spain’s IBEX 35 (ES35) lost 1.29%, Britain’s FTSE 100 (UK100) closed yesterday down by 0.86%.

European Central Bank President Christine Lagarde said policymakers are determined to lower inflation and said cooperation with other monetary and fiscal authorities is needed for success. European Central Bank Governing Council spokesman Klaas Knot said that a “sustained effort” is needed to bring inflation under control, reiterating that at least two more “significant” interest rate hikes should follow last month’s 75-basis-point interest rate hike.

The Bank of England’s monetary policy report said: “The invasion of Ukraine has led to a sharp rise in wholesale gas prices in Europe. Household incomes are falling due to higher energy bills. Corporate profits are shrinking because of higher energy costs. General inflation has risen to unacceptably high levels. For a net energy importer like the UK, rising global energy prices are affecting national income: the cost of what the country buys from the rest of the world has risen sharply relative to the price of what it sells. Higher energy prices reduce household spending and reduce economic activity. Given where the UK economy is now, the Bank of England intends to act decisively on monetary policy at the next scheduled MPC meeting.” Thus, analysts are predicting a 0.75-1% interest rate hike.

Aluminum prices on the London Metal Exchange (LME) jumped by 7% percent Wednesday after it was reported that the US is considering a ban on Russian aluminum in response to the invasion of Ukraine. Last week, the LME presented a discussion paper on the possibility of banning Russian aluminum, nickel, and copper from trade and storage in its system.

The International Monetary Fund’s economic growth forecast showed Saudi Arabia to be the fastest-growing economy among the world’s major economies. Forecasts have been revised upward this year due to a booming oil sector combined with strong growth in the non-commodity sector. According to the preliminary budget statement, Saudi Arabia is forecasting revenue of 1.12 trillion rials ($298 billion) next year.

The oil market remains tight. Two opposing forces are now at work: the economic outlook is the main downside risk, and OPEC+ is the upside potential. The dollar index may change the parity, the dynamics of which will be determined after today’s inflation data.

The UN General Assembly adopted a resolution that does not recognize the “referendums” in the “DPR,” “LPR,” and Kherson and Zaporizhzhia regions. The resolution was supported by 143 countries and opposed by five. Russia, Belarus, Syria, the DPRK, and Nicaragua voted against it.

Asian markets were mostly trading lower yesterday. Japan’s Nikkei 225 (JP225) lost 0.02% over the day, Hong Kong’s Hang Seng (HK50) decreased by 0.78%, while Australia’s S&P/ASX 200 (AU200) gained 0.04%.

Climate change poses a serious threat to China’s long-term prosperity, which emits 27% of the world’s greenhouse gases, but the country is well positioned to meet its climate commitments and transition to a greener economy, the World Bank said.

S&P 500 (F) (US500) 3,577.03 −11.81 (−0.33%)

Dow Jones (US30) 29,210.85 −28.34 (−0.097%)

DAX (DE40) 12,172.26 −47.99 (−0.39%)

FTSE 100 (UK100) 6,826.15 −59.08 (−0.86%)

USD Index 113.28 +0.06 (+0.06%)

Important events for today:

– US FOMC member Bowman Speaks at 01:30 (GMT+3);
– US Consumer Price Index (m/m) at 15:30 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– US Natural Gas Storage (w/w) at 17:30 (GMT+3);
– US Crude Oil Reserves (w/w) at 18:00 (GMT+3).

By JustForex

Economics & Fundamentals Financial News

13 Oct

Oil bulls try to make a comeback

By ForexTime

The Crude Oil market on the D1 time frame was in an extended down trend until 26 September when a last lower bottom was recorded at 76.13. Bulls found the price attractive at those levels and demand started overcoming supply.

A closer look at the Momentum Oscillator reveals a positive divergence between points “a” and “b” when comparing the bottoms at 83.74 and 76.13. This could have alerted technical traders that the downtrend might be losing momentum.

After the lower bottom at 76.13, the price of Crude Oil broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator cut through the 100 base-line into bullish territory.

A higher top and possible critical resistance level formed on 10 Oct at 92.59. Bears are currently trying to drive the price lower but a possible higher bottom might be forming at a support level on 12 October at 85.17.

If the support level holds and the bulls manage to break through the critical resistance level at 92.59, then three possible price targets can be calculated from there. Applying the Fibonacci tool to the higher top at 92.59 and dragging it to the bottom of the support area at 85.17, the following targets may be considered. The first target may be likely at 97.18 (161%) and the second price target at 104.60 (261.8%). The third and final target may be expected at 116.60 (423.6%).

If the support level at 85.17 is broken, the bullish scenario is overturned and the scenario needs to be re-assessed.

As long as the supply remains constrained, the outlook for the Crude Oil market in the D1 time frame will remain bullish.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

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