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We hope you all enjoyed your Hallowe’en. We are now into November, which sees stock prices rise a high percentage of the time, and the historical average gain for the month makes it one of the best-performing times of the year, therefore, stay invested.
Statistics Canada reported that the Canadian economy remained flat through the 3rd Quarter, 2024, with some signs of growth in September once the Bank of Canada (BoC) rate cuts began to have an impact. Canadian stock markets drifted lower from their high point of two weeks ago, weighed on by Middle East uncertainty. The CAD$ has fallen to its lowest level against the USD$ since 2020 and there’s every reason to think that is not the bottom, as the BoC is committed to an ongoing rate-cutting cycle.
The U.S. election is in the final stretch, with no obvious leader, although markets seem to be pricing in the premium of a Trump presidency, which led to a stronger U.S. dollar. This uncertainty has been a drag on U.S. markets this week, with a mixed bag of earnings from the tech heavyweights being reported. This week the S&P 500 gave back all the gains to close October, down 0.5% for the month, but still, YTD is up 19.5%. For Q3/24 U.S. GDP looks solid, and the economy and employment remain strong. Picking investments as a bet on the election result is never a clever idea. Hopefully, by the end of next week, the name-calling and finger-pointing will have ended, and the uncertainty ended. The next Fed rate announcement will be on November 7, and while expectations are for at least a 0.25% reduction, we may not even know who the President is by that time.
U.S. dollar strength and global and election uncertainties were felt in the precious metals market and had some investors taking profits after Wednesday’s rally in Gold to record highs above USD$2,800/oz. Bullion is in the USD$2,760/oz range this morning. Silver broke out above USD$34.00/oz, a 12-year high, and is opening at USD$33.10 this morning. With rising geopolitical risks and the reality that U.S. debt levels will not be reduced post-election, there is good reason to remain bullish on gold and silver, and investors should be adding to their precious metals’ positions. Check the news below, put out by our client, Sokoman Minerals Corp., who is preparing two bulk samples on their flagship Moosehead Gold project.
Base metals prices continued to weaken this week, with prices declining through October, driven down the by USD$ strength and lower European and Chinese manufacturing demand. Copper is at an eight-week low of USD$4.27, and Nickel set a new low for the year at USD$7.14. Critical and battery minerals are also struggling. Lithium is at USD$10.19/kg, which is a low for this year, and Cobalt at USD$11.02 is at an eight-year low.
At meetings scheduled for November 4-8, China is weighing approval over 10 trillion yuan (USD$1.4 trillion) in additional borrowing for fiscal stimulus to shore up the economy and address local governments’ debt risks, Reuters reported. The amount of stimulus could be larger pending outcome of the U.S. election and assessment of any increased economic challenges for China. Efforts to stimulate the economy so far have yielded minimal results.
In September, funding for TSXV-listed junior mining companies doubled compared to last year, largely due to Flow-Through Shares. However, exploration spending in Canada and globally remains insufficient to discover and develop the industrial metals and critical materials needed for the energy transition and advancements in data and AI. Ongoing financial support for these companies and their discoveries is crucial. The Prospectors and Developers Association of Canada (PDAC) is asking your help to protect the Mineral Exploration Tax Credit (METC).
Since its inception in 2000, the METC has been a cornerstone of Canada’s Flow-Through Shares (FTS) regime. In the past decade, the FTS regime accounted for equity raises of over C$7.5 billion – 70% of the funds raised in Canada for domestic exploration. The METC is set to expire on March 31, 2025! Letting it expire would send a signal that Canada is disincentivizing exploration for a swath of the Canadian Critical Mineral list and would have a negative impact on Canadian competitiveness and our entire critical mineral strategy.
In 2019, PDAC was encouraged when the federal government provided the industry with stability and continuity by extending the METC for a five-year term. Unfortunately, the government changed course last March, when they extended this vital financial incentive at the last minute for just one year. Now, there are significant concerns regarding future renewals.
To advocate for a longer extension, or permanent, inclusion of the METC starting in 2025, PDAC is working on a business case to demonstrate the substantial economic benefits it provides Canada, which far exceed its costs to the government.
PDAC is initiating research on exploration spending to highlight:
The contribution to municipal and provincial economies that is derived by various exploration activities
The tax revenues generated for the government
Other positive economic impacts
Our clients continue to advance their projects, and 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 October 28 – November 1, 2024.
Mining
October 31, 2024, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) provided an update on the exploration of the 100%-owned Moosehead Gold Project, where the current focus is on the Western Trend conventional bulk sample.
Western Trend trench channel samples - 22.45 g/t Au / 4.05 m incl. 35.93 g/t Au / 3.00 m.
Trenching has exposed the quartz mineralized zone with 50% of mapping and channel sampling completed. A 150 kg sample, 50 kg of each of the three gold-bearing rock types, has been taken and sent to Base Met Labs in Kamloops, B.C., for scoping-level, metallurgical testing of the Moosehead Gold Project gold mineralization. Results are expected in late Q4 2024 or Q1 2025.
Timothy Froude, P.Geo., President and CEO states; “There’s a lot going on at the project presently, including preparing for the first of two bulk samples, early-stage metallurgical work, additional structural mapping by consultant Dr. David Coller, and planning further diamond drilling on the Western Trend, based on new information gained through the trenching. The advantage of trenching is that it allows us to see, in the outcrop, the overall relationships between the high-grade, gold-bearing quartz veins and the host rocks for the first time. Dr. Coller will examine the exposed Western Trend high-grade mineralization and its structural setting, comparing it with the other high-grade gold zones on the Moosehead property. These observations will help him formulate theories on where high-grade mineralization may lie at depth. The trenching has also exposed previously unknown gold-bearing veins that trend towards areas with little to no previous drilling, as a result, additional drilling is being planned.”
Channel Sample Location Map
Fintech
Johnson Joseph, CEO of Tenet Fintech Group Inc. (CSE: PKK), presented the company’s vision of connecting SME’s globally on their Cubeler Business Hub during the 2024 Cantech Letter Conference. Tenet’s business hub will deliver real-time market intelligence, using analytics and AI-based products and services, to capital markets professionals, government agencies and financial institutions using subscription payment models.
SAVE THE DATE
November 5-8, 2024, Visit Sokoman Minerals at the MRR 2024 Conference, Booth #57
Delta Hotels St. John’s Conference Centre, 120 New Gower Street, St. John’s, Newfoundland.
Register here: https://mrr.cim.org/
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