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A New Renaissance for Uranium Mining

Global demand for energy is rising with many countries looking to install new baseload power…

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This article was originally published by Resource World

By Ron Hall

Global demand for energy is rising with many countries looking to install new baseload power plus there are new demands such as the electrification of transportation. On the supply side of the equation though environmental concerns including climate change are driving the call for more so called “green energy” sources as alternatives to the traditional fossil fuel supplies of coal, oil, and gas. Renewables such as wind and solar have been gaining ground in the past decade or so but none of these can yet provide enough power to fully replace that derived from carbon sources. Hydro works where there is adequate supply of water and convenient topography. So not everywhere. The one that could (work anywhere that is) – nuclear – has had a bad rap for many years conjuring up visions of mushroom clouds and Chernobyl like disasters in the minds of many. The last big nuclear accident that occurred at the Fukushima power plant in Japan because of an earthquake and tsunami in March 2011 saw a drop in nuclear-power generation of about 11% and caused curtailment in the development of new nuclear reactors worldwide.

Today though, there are many proponents of nuclear power that believe a new renaissance is here and currently nuclear power generates about 20% of the total electricity consumed in the USA, up from 10% in 2011. There is a recognition now as many countries announce net-zero carbon targets, that nuclear will be needed more and more to sustainably achieve electrification and decarbonization goals.

President Biden recently convened with 40 world leaders in a virtual climate summit where he pledged that the US aims to cut carbon emissions by as much as 52% by 2030. Numerous other regions announced similar increased targets, notably Canada, Japan, the European Union (EU) and the United Kingdom:

  • China’s 14th five-year plan and related policy documents covering the 2021-2025 period were published in March as part of their plan to be carbon neutral by 2060. China’s Nuclear Energy Association (CNEA) then confirmed in April that by 2025, China is targeting 70 GWe operating, an increase of approximately 20 GWe from the end of 2020, as well as 50 GWe under construction. Additionally, the CNEA stated that by 2030, China could reach up to 120 GWe in operation.
  • Japan recently confirmed a target of 20-22% nuclear by 2030 and carbon neutrality by 2050.
  • In the EU, progress continues towards the potential inclusion of nuclear in the regions sustainable financing taxonomy. A recently proposed supplement to the current legislation by the European Commission will confirm nuclear as sustainable if passed. This follows nuclear being recognized as not causing significant harm by an assessment from the Joint Research Centre, which remains subject to two expert groups confirmation of the findings.

The foundation of nuclear energy is harnessing the power of atoms. Both fission and fusion are nuclear processes by which atoms are altered to create energy. The word fusion means “a merging of separate elements into a unified whole”. Nuclear fusion takes place when two low-mass isotopes, typically isotopes of hydrogen, unite under conditions of extreme pressure and temperature. Along with this, an enormous amount of energy is released, several times the amount produced from fission. Fusion is what powers the sun.

But so far, harnessing the nuclear fusion process to generate electricity has proved elusive due to the massive challenges associated with creating and controlling the extreme conditions required to emulate the sun.

The word fission on the other hand means “a splitting or breaking up into parts” and nuclear fission releases energy by splitting atoms as opposed to fusing them together.  The resulting energy released is then used to heat water in nuclear reactors and ultimately produces electricity. Most nuclear power reactors use an isotope of uranium known as uranium-235 as fuel.

Uranium is found in small amounts in most rocks, and even in seawater. Uranium mines operate in many countries, but more than 85% of uranium is produced in only six countries: Kazakhstan, Canada, Australia, Namibia, Niger, and Russia.

The price of uranium is driven by nuclear power demand, global supply and inventories, and macroeconomic and political factors. Currently there is a stand-off between buyers and users as the price of uranium remains well below US$40 per lb. – a benchmark that the price needs to rise above to stimulate the market. Producers are unwilling to restart production until they have long-term contracts and buyers are unwilling to sign long-term contracts at levels above current spot prices.

But a sharp increase could be coming as the stars align around several factors:

  • Current Uranium supply is not meeting demand. Worldwide uranium production fell to 123 million pounds in 2020, the lowest level since 2008. Production falls well short of global uranium demand, which is around 180 million lbs. The gap between demand and supply is being met by drawing down inventories, downgrading weapon-grade sources, and uranium underfeeding (re-enriching uranium tailing). But these are short-term strategies.
  • Major uranium mines are closing. On January 8, 2021, the Ranger uranium mine in Australia ceased production removing 3 million lbs. of annual production. The Cominak mine in Niger ceased production on March 31, 2021, removing an additional 2.8 million lbs. of production.
  • Kazakhstan will not step up to fill the gap. Kazakhstan supplies about 40% of the world’s uranium supply but last summer, Kazatomprom, Kazakhstan’s state-owned uranium production company, indicated that it will reduce production by 20% in 2022 and not return to full production levels until a sustained market recovery is evident.
  • Canada cannot fill the gap by restarting mines. Production at the two largest mines in Canada (McArthur River and Cigar Lake) was suspended in 2020 due to COVID and pricing issues. Cameco, the operator of both mines, announced on April 9th that it will restart production at Cigar Lake. However, Cigar Lake only produced 5 million lbs of uranium in 2020 and peaked at around 10 million lbs. McArthur River, which remains suspended, is licensed to produce up to 18.7 million lbs. annually but is unlikely to resume production until prices rise above $40/lb.
  • Russian supply is also decreasing. Russia produces about 5% of the world’s supply. In October 2020, the U.S. and Russia signed the Russian Suspension Agreement amendment, which will significantly reduce the amount of Russian uranium supplied to the U.S. beginning in 2021.
  • The proposed U.S. National Uranium Reserve will benefit U.S. uranium producers. The 2021 proposed federal budget includes $150 million for the creation of a U.S. uranium reserve over the next ten years. The Working Group Report cites that “it is in (our) national security interests to preserve the assets and investments of the entire U.S. nuclear enterprise and to revitalize the sector to regain U.S. global nuclear leadership.”
  • China is building towards a huge increase in nuclear power capacity by 2030 and has more than one hundred further large units proposed

Given the long lag time between exploration, discovery, and development of a producing mine (at least 5 to 10 years), timing of each stage is critical. The time to be in uranium exploration would be appear to be now. Two such Canadian companies have recognised this:

Azincourt Energy Corp. [AAZ-TSXV, AZURF-OTC] and Blue Sky Uranium Corp. [BSK-TSXV; BKUCF-OTCQB; MAL2-FSE].

The uranium-rich Athabasca Basin of northern Saskatchewan. Source: Azincourt Energy Corp.

Azincourt Energy Corp. [AAZ-TSXV, AZURF-OTC] is a Canadian resource exploration and development company with a focus on commodities, including uranium and lithium, that are key to the evolving clean energy sector

Azincourt’s flagship asset is the East Preston uranium project in Saskatchewan, which the company is developing with partner Skyharbour Resources [SYH-TSXV] (Dixie Gold also holds a small portion of the project).

Azincourt also offers a window on uranium-lithium exploration projects in southeastern Peru after the junior acquired all rights to a series of three uranium-lithium exploration projects in the Picotani volcanic field in the Puno region.

The properties, collectively known as the Escalera Group, were acquired in February 2021.

The addition of uranium/lithium assets in Peru positions Azincourt for growth that is tied to developments in the key nuclear fuels and battery metals sectors at a time when clean energy initiatives are driving a paradigm shift in how future energy needs will be met.

However, the immediate emphasis is on East Preston, which is located in the prolific Athabasca Basin, a world class district best known as the world’s leading source of high-grade uranium and contributor of 20% of the world’s supply.

Azincourt controls a 70+% interest in the 25,000-hectare Eastern portion of the Preston project as part of a joint venture agreement with Skyharbour and Dixie Gold.

The Preston Project is one of the largest tenure land positions in the Paterson Lake region and is strategically located near NexGen Energy Ltd.’s [NXE-TSX, NYSE] high-grade Arrow deposit, Fission Uranium Corp.’s [FCU-TSX] Triple R deposit and the Spitfire high-grade discovery on the Hook Lake project, which is owned jointly by Cameco Corp. [CCO-TSX, CCJ-NYSE], Orano Canada Inc. (formerly known as Areva Canada Inc.) and Purepoint Uranium Group Inc. [PTU-TSXV].

East Preston is near the southern edge of the western Athabasca Basin, where targets are in a near surface environment without Athabasca sandstone cover. Therefore, they are relatively shallow targets but can have great depth extent when discovered.

Azincourt recently raised $4.2 million from a private placement financing and is preparing for a substantial amount of drilling this year.

Exploration is ramping up after anomalous and elevated uranium levels were recently encountered in three of five holes completed in a drill program that was cut short due to an earlier than expected spring break-up.

The primary target area for the upcoming program continues to be the conductive corridor from the A-Zone through to the G-Zone where the elevated uranium levels were encountered.

The 2020 HLEM survey completed in December indicates multiple prospective conductors and structural complexity along the eastern edge of this corridor.

The company said preparation continues for an airborne radiometric survey, and approximately 7,000 metres of drilling, to consist of 30+ drill holes to be completed over the next six months.

Target selection for these programs will be refined based on the summer 2021 field activities.

Meanwhile, after completing the acquisition of all rights to the three uranium-lithium properties in Peru, Azincourt is planning to be back on the ground at the Escalera Group properties later this year.

The properties are located in a mineral-rich district where mining giants like Minsur and Rio Tinto Plc [RIO-NYSE] operate, as well as growing mid-tiers and juniors like Bear Creek Mining Corp. [BCM-TSXV, Lima] and Plateau Energy Metals Inc. [PLU-TSXV].

The Escalera Group consists of three concessions (Lituania, Condorlit, Escalera) covering a combined area of 7,400 hectares of prospective targets for volcanic hosted supergene/surficial uranium and lithium on the Picotani Plateau.

“Our early exploration efforts in Peru were positive, particularly in Escalera,” said Azincourt President and CEO Alex Klenman. “We were able to validate some highly prospective ground for both uranium and lithium mineralization. We are going to plan follow up exploration phases now and look to get back on the ground later this year.’’

At Escalera, the proposed uranium mineralization model is similar to that found at Macusani Uranium deposit (American Lithium) located about 100 kilometres to the northwest were uranium has dissolved and precipitated from source frothy volcanic debris flow rocks through an intricate interaction between geomorphology, groundwater movement and evaporation.

The Macusani Uranium deposit has a reported measured and indicated resource of 52.9 million pounds U308 and an inferred resource of 72.1 million pounds U308.

Sampling at the priority Escalera Property has identified two new prospective uranium areas measuring an estimated combined 6.5 kilometres.

On August 23, 2021, Azincourt shares were trading at $0.05 in a 52-week range of 18 cents and $0.02, leaving the company with a market cap of $17.15 million based on 343 million shares outstanding.

Blue Sky Uranium Corp. [BSK-TSXV; BKUCF-OTCQB; MAL2-FSE] is a discovery company that is positioning itself to benefit from a widely-expected rebound in the price of uranium.

The uranium industry has been struggling since a 2011 earthquake and tsunami in Japan disabled three reactors at the Fukushima nuclear plant, causing their cores to melt down, forcing Japan to shut down 50 nuclear reactors that remained intact.

The devastating repercussions in Japan sent uranium prices tumbling from US$72.63 a pound, and convinced some countries to decommission their nuclear reactors and switch to other fuels.

But optimism in the sector is driven by ongoing mine closures at time when construction of nuclear reactors around the world is increasing demand for uranium. Industry officials are confident that when the rebound occurs, it will be quick and significant.

Blue Sky’s objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers

In keeping with that plan, the company has launched a reverse circulation drilling program at its wholly-owned Amarillo Grande uranium-vanadium project in Rio Negro Province, Argentina.

On June 23, 2021, the company said it had completed the first tranche of the program which is expected to include a minimum of 4,500 metres at the high-priority Ivana Central (IC) and Ivana North (IN) targets, located 10 and 20 kilometres north, respectively of the company’s Ivana Deposit.

It said the drilling completed to date tested the Ivana North target area and consisted of 1,591 metres in 40 holes. The program tested an area covering 4.0 kilometres by 5.0 kilometres on roughly 400 to 800-metre centres utilizing a hydraulic drill rig.

The results, once received and interpreted, will be used to identify areas with elevated uranium concentrations within the current drill grid and to continue to vector towards reduction-oxidation (REDOX) traps with follow-up drilling.

“We are looking forward to receiving analytical results from the drilling to aid in evaluating the Ivana North target and to resuming our drilling program to test additional targets,’’ said Blue Sky President and CEO Nikolaos Cacos.

Blue Sky’s exploration and development strategy is led by a highly experienced management team, that includes President and founder Joe Grosso, who has been active in Argentina since the country opened its mining sector to foreign investment in 1993.

Using his experience and connections, Blue Sky discovered a new uranium district in Rio Negro Province in the Patagonia region of southern Argentina. The 100%-owned Amarillo Grande Project (AGP) covers 300,000 hectares, and contains the Ivana near-surface deposit, which hosts the largest NI 43-101 compliant uranium resource in the country.

AGP includes several major target areas over a regional trend, with uranium and vanadium mineralization in loosely consolidated sandstones and conglomerates, at or near surface. The area is flat-lying, semi-arid and accessible year-round, with nearby rail, power and port access.

A positive preliminary economic assessment announced in February, 2019, envisages a surface mining operation that would deliver mill feed to a nearby processing plant or stockpiles at an annual rate of 4.7 million tonnes per year (13,000 tonnes per day).

Carnotite Mineralization found at ANIT. Source: Blue Sky Uranium Corp.

According to the PEA, a future mining operation could produce 17.5 million pounds of uranium and 6.0 million pounds of vanadium over a projected mine life of 13 years. Annual uranium production is expected to be 1.35 million pounds.

The pre-production capital for such an operation is estimated at US$128.05 million, plus US$35.46 million of sustaining capital.

However, the Ivana deposit covers only a small fraction of the AGP property and the company is working to identify multiple new zones of uranium-vanadium mineralization throughout the large project area.

That optimism is based in part on a detailed review and reinterpretation of over 14 years of geological data which has outlined two areas that are thought to have the potential to host uranium-vanadium mineralization that is similar to Ivana.

Vanadium is growing in importance for key industrial manufacturing sectors, notably in steel and renewable energy.

The company is also planning and permitting to advance the Ivana Este and Quatro targets to the drill stage.

Blue Sky recently amended the final tranche of a non-brokered private placement financing consisting of units priced at $0.16 each. Subject to regulatory approval the financing is expected to raise $2.13 million for exploration at the company’s projects in Argentina.

On August 23, 2021, Blue Sky shares were trading at 17 cents in a 52-week range of 33 cents and $0.085 cents, leaving he company with a market cap of $29 million, based on 170 million shares outstanding.

Author: Resource World

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Precious Metals

Why Authoritarianism Must Prevail

Why Authoritarianism Must Prevail

Authored by Robert Wright via The American Institute for Economic Research,

Freedom anywhere is a threat…

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Why Authoritarianism Must Prevail

Authored by Robert Wright via The American Institute for Economic Research,

Freedom anywhere is a threat to authoritarianism everywhere. That is why authoritarians must destroy all freedom and why liberty lovers, and even the merely “lib-curious” (liberty curious), must not just resist blatant authoritarianism, but reject it in all its guises. The fate of the nation, and the world, again hangs in the balance.

To the extent that any freedom persists, authoritarian diktat can be subverted, albeit at a cost. History is rife with examples of bizarre entities, like nonbank banks (I kid you not!), rent-a-banks (ditto!), and gold caches, designed to work around branching restrictions, usury laws (maximum interest rates), the criminalization of holding gold, and sundry other attempts to limit financial freedom. (See my Financial Exclusion for details.)

To squelch “undesirable” activity, like increasing bank competition, voluntarily lending/borrowing small amounts of money at rates commensurate with the attendant costs and risks, or trying to protect one’s family against fiat money inflation, government must outlaw the workarounds too. To get their way, statists must suppress all unapproved activities, which ultimately means forcing would-be innovators to obtain permission before they can lawfully engage in any new activities.

Consider, for example, recent calls to allow the IRS to monitor essentially all bank accounts in the country. Maybe Americans will accept it, if, as claimed, the power is only used to enforce current tax laws. But if tax rates rise appreciably, as it seems they will, given the current administration’s policy goals, or if the transaction information is used for partisan political purposes, or to shame or coerce people into buying this, or not buying that, Americans will begin to search for workarounds. To the extent that the workarounds prove successful, government will be forced to outlaw the workarounds too.

For instance, if workers ask their employers to pay them in Federal Reserve Notes or Bitcoin because they believe that the transaction costs of making payments in those media will be less burdensome than giving some party hack access to the most intimate details of their lives, the government may well force employers to pay workers only in USD and only via bank transfer. It might even ban cryptocurrencies entirely, or at least try to.

Workers might then make one payment per month, to a “bill paying service” that for a fee will pay their bills for them, out of its one, giant bank account. Oh, but that sounds like an unregulated bank taking uninsured deposits so those services will have to be suppressed as well, or perhaps replaced by the central bank.

People may then begin paying everything by credit card, and even direct their employers to repay their credit card issuers directly. Next thing you know Uncle Sam will want to see your credit card statements too. Ditto PayPal, Venmo, and any other fintech apps used to make or receive payments. Thus a seemingly innocuous request to see bank accounts for tax purposes becomes the excuse for full-blown financial repression. This will, as always, hurt the poor the most.

Employers might work around those laws, along with the tax code and vaccine mandates by converting their employees into volunteers and donating payroll to a nonprofit charity with the singular mission of ensuring that the “volunteers” receive “donations” that happen to match the value of their former compensation. Imagine the chaos if every employer simultaneously did that! Government would have to respond by tightly regulating, if not outright outlawing, charities and volunteer work. Our liberty would be truly lost at that point, and again the poor would suffer most.

Corporations shouldn’t be taxed, but they are. Many of the largest have engaged in (international) tax arbitrage by adroitly shifting headquarters, production facilities, and charters between different states, provinces, and countries. Governments are now fighting back by establishing a global minimum corporation tax. How long before some entity begins to offer oceanic or orbital (then moon, then Martian) charters as tax havens? Soon after, though, private space flight and oceanic colonization will likely be banned or heavily restricted.

Everyone should be aware that if an international gold ETF issuing bearer shares, (a sex worker-owned substitute for OnlyFans), a parallel university system, or anything else of import that runs against the woke or statist grain begins to gain commercial traction, regulatory hammers will swiftly bludgeon the innovators into compliance, or out of existence.

Were that all! When statist solutions to perceived “problems” create real problems, the call inevitably goes out for yet more government. When pressed about how to pay for UBI (various universal basic income) schemes, for example, schemes that are purportedly needed to solve a nearly nonexistent income disparity “problem,” proponents will sometimes argue for the establishment of a Sovereign Wealth Fund (SWF, or a giant investment fund owned by a government), the dividends and realized capital gains of which can be divided equally among the citizenry. 

UBI proponents are not sure where the money to fund the SWF will come from, or if it is a good idea to concentrate all that economic and political power in one decision maker’s hands, but if you want to see their true colors, ask them why individuals cannot simply invest their own money for themselves. Turns out that elites believe that most Americans don’t know how to invest properly, in the “right” (which is to say Left) companies. So look for a push to outlaw individual investment in favor of a SWF-funded UBI, or at least a narrowing of choice to SEC-approved ESG funds. You may still own something in 2030, but it seems increasingly unlikely you will be happy.

America and the rest of the West have been sliding down the slippery slope of statism for so long that they are now rapidly approaching the precipice that ends in rock bottom. Will liberty be crushed and a new dark age commence? Or will the masses then finally see governments as the problem, rather than as the solution?

Tyler Durden
Fri, 10/22/2021 – 21:00

Author: Tyler Durden

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Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

A very mixed week across the asset-classes.


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Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

A very mixed week across the asset-classes.

Hawkish Powell: rate-hike expectations surged higher but stocks gained, crude rallied but copper tumbled. Growth and Value stocks basically ended the week up around the same amount (while Cyclicals modestly outperformed Defensives). Perhaps most notably, rates vol and stock vol expectations are dramatically decoupled from one another.

Inflation: Breakevens soared to record highs… globally, bullion bounced but bitcoin ended the week unchanged and bonds only modestly higher in yield.

Source: Bloomberg

We do not that the long-end of the curve notably outperformed today (flattening the curve significantly) after Powell’s comments, in a clear signal from the market that it’s expecting a Policy error

Source: Bloomberg

Arguably, as Goldman details below, the market could be morphing back from a ‘stagflation’ narrative to a ‘reflation’ narrative

Heading into the week, the ‘stagflation’ narrative was continuing despite the fact that the S&P 500 had already bounced off of its late-September bottom and was heading back towards an all-time high.  And as we exit the week, the inflation debate seems to be evolving into a ‘the Fed will hike earlier’ narrative, with yields on 2-year Notes spiking to 0.50% — a level last seen in the first days of the pandemic way back on March 18, 2020.  Praveen Korapaty writes in last Friday’s note, “Front-end pressures mount,” that markets appear to have returned to a paradigm of simultaneously bringing forward and/or accelerating hike pricing and taking down terminal rate assumptions. Bond investors appear to be increasingly thinking that the rise in inflation that we have been observing will translate into an earlier Fed funds rate hike.

And yields on 10-year Treasuries also briefly touched 1.70% this week, suggesting that bond investors are actually also feeling fine about longer-term growth.  And this better feeling is also being reflected in stock prices with the S&P 500 breaking up above 4500 and hitting a new all-time high this week.  So, the ‘stagflation’ narrative seems to be morphing back into a ‘reflation’ narrative — something similar to what we were experiencing when the economy first ‘reopened’ last spring.

Digging into each asset class, stocks ended the week higher overall (despite today’s Powell-driven dip that sent Nasdaq down around 1% today)…

The S&P and Dow closed at record weekly closing highs…

In Canada, the S&P/TSX Composite is up 13 straight days to a new record high – the longest winning streak since 1985…

Source: Bloomberg

Rather interestingly, this week saw “get out and party” recovery stocks underperform the “stay at home and sulk” stocks…

Source: Bloomberg

Cyclicals modestly outperformed Defensives on the week…

Source: Bloomberg

Growth barely outperformed Value on the week…

Source: Bloomberg

TSLA topped FB in terms of market cap again today (to become the 5th biggest company in the S&P) as Musk’s carmaker surged to new record highs above $900…

Source: Bloomberg

But the week’s biggest gainer was Trump’s “TRUTH” SPAC which ended up over 800% (though at one point it was up over 1600%)…

Source: Bloomberg

VIX traded down to a 14 handle this morning – the lowest since before the pandemic lockdowns began…

Treasury yields ended the week higher, but the long-end notably outperformed…

Source: Bloomberg

The yield curve ended the week notably flatter (after a wild ride midweek back to last week’s highs)…

Source: Bloomberg

Policy Error? The flattening started with the June taper chatter…

Source: Bloomberg

Inflation Breakevens soared to record highs today (US 5Y topped 3.0%) across the globe today…

Source: Bloomberg

The dollar ended the week lower, chopping around at one-month-lows…

Source: Bloomberg

Cryptos had a wild ride for the week with Bitcoin reaching new record highs after BITO’s launch before fading back to unchanged on the week today (Ethereum modestly outperformed on the week)…

Source: Bloomberg

Bitcoin ended the week just above $60k, well off the $67k record high…

Source: Bloomberg

The newly launched Bitcoin (futures) ETF (BITO) ended below its opening level…

Bitcoin Futures were well bid as BITO launched but the premium over spot has faded since…

Source: Bloomberg

Commodities were very mixed with copper clubbed and silver soaring (gold and crude also rallied)…

Source: Bloomberg

Rather interestingly, the huge divergence between copper and silver occurred at a key resistance level (around 20 ounces of silver to buy copper)

Source: Bloomberg

Finally, we note Mizuho’s warning of the impact of today’s more hawkish speech from Fed chair Powell. Our view that the divergence of equity implied vol (at pre-pandemic lows) from rates implied vol (rising to the highs of the year in most markets) is unsustainable, is showing tentative signs of turning.

Source: Bloomberg

The sharp move lower in Nasdaq futures and widening of CDS indices is a warning shot, we feel, of how risk assets would break down if the Fed was to try to stamp out inflation at such an early point in the cycle as mid 2022.

Commodities relative to stocks are starting to flash some red alerts…

And if one needed an excuse to buy some protection against that whiplash reality check for stocks, VIX is at a critically cheap level relative to VXV…

Source: Bloomberg

That has not tended to end well for stocks.

Tyler Durden
Fri, 10/22/2021 – 16:01

Author: Tyler Durden

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Top Mining Small Caps To Watch Right Now

Are mining juniors on your watchlist right now?

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Are These Mining Penny Stocks on Your Watchlist in October?

Mining penny stocks have become extremely popular over the last year or so. And, there are a few main reasons why that is the case. For one, mining stocks tend to be more stable than most others, as their trajectories are less affected by speculation. While this is more true with blue-chip mining stocks, it is also the case with mining penny stocks.

[Read More] 3 Biotech Penny Stocks to Watch That Are Climbing Right Now 

In addition to this, many investors have turned to mining stocks this year as a way to avoid the ups and downs of the stock market as a result of Covid. Specifically, gold stocks are highly popular as they present a ‘safeguard’ investment against inflation and market volatility. Historically, gold has been a mainstay in the market during times of economic trouble. And while we are emerging from the pandemic right now, investors are still uncertain about the future. 

As a result, mining stocks remain very popular right now. As we continue to move into the end of the year, it’s worth keeping an eye on the demand for resources such as gold, silver, and other popular mined ores. This will help to illustrate how these stocks could perform in the future. With that in mind, let’s take a look at three mining penny stocks to watch right now. 

3 Mining Penny Stocks to Watch Right Now

  2. Yamana Gold Inc. (NYSE: AUY
  3. B2Gold Corp. (NYSE: BTG

IAMGOLD Corporation (NYSE: IAG)

IAMGOLD Corporation is a mining penny stock that has climbed by over 30% in the past month with 5% of that occurring in the last five days alone. This company develops, explores for, and operates gold mining properties. These properties are located in the Americas and West Africa. Its mines include the Rosebel mine, Essakane mine, and Westwood mine among many others. In addition to gold, the company also searches for silver and copper as well.

[Read More] 4 Penny Stocks For Your List As Trump’s DWAC Stock Breaks The Internet

On October 19th, the company provided its preliminary operating results for the third quarter of 2021. All of IAMGOLD’s mines reported positive results during this period. Its Essakane mine had an average recovery of 83 percent at 3.3 million tons. Additionally, the Rosebel and Westwood mines provided positive results for the company as well.

“We achieved attributable production of 153,000 ounces during the third quarter and are pleased that our total attributable production is trending towards the upper end of the guidance range. Essakane continues to deliver strong results and Rosebel is performing in line with the updated plan.”

Gordon Stothart, the President, and CEO of IAMGOLD

Right now, many investors are turning to gold and mining stocks in general as a way to hedge bets against inflation. And as a popular gold stock, IAG could be worth looking into. Considering this, does it deserve a spot on your penny stocks watchlist?


Yamana Gold Inc. (NYSE: AUY)

Yamana Gold Inc. is another gold stock that has been moving up in the last few trading sessions. While its 8% gain over the past month is not as large as IAG’s, it is still substantial considering the relative stability of mining stocks. This company produces various precious metals in the United States however, its primary focus is on the production of gold. Silver is also a big market for Yamana, which it searches for at its development stage properties, exploratory sites, and land positions.

The most recent Yamana update was released on October 4th. The company announced that it will reveal its third-quarter operating and financial results after the market closes on October 28th, 2021. The next day, at 9 a.m. EDT, a conference call and webcast will be held. The financial results of Yamana Gold could have a big impact on its stock price if either positive or negative results are reported. This is something we see with most stocks, and for that reason, financial reports are always important to consider. 

The price of AUY stock is not just dictated by how the company is performing though. The prices of gold and silver are also major contributors to whether AUY stock will move up or down. It seems as though it is a balance between the price of gold, speculation, and the fundamentals when it comes to AUY stock. This is why it is important to stay up to date with the latest in the market. For now, will AUY stock be on your list of penny stocks to watch in October?


B2Gold Corp. (NYSE: BTG)

B2Gold Corp. is one of the bigger recent gainers, pulling in over 26% in gains in the past month. As its name suggests, this company primarily produces gold however, it also searches for other precious metals as well. Currently, B2Gold has three operating mines in Mali, the Philippines, and Namibia. Additionally, B2Gold has other evaluation and exploration assets located in Uzbekistan, Finland, Burkina Faso, and more. It’s worth noting that the company also has an 81% interest in the Kiaka Project.

On October 19th, B2Gold Corp. reported its gold production and gold revenue from the third quarter and first nine months of 2021. The company’s total gold production for the quarter was 310,261oz, which is 7% higher than its budget. This number is also 18% higher than its third-quarter 2020 numbers. Based on its positive performance, the company’s annual production guidance range has been increased to 1,015,000 to 1,055,000oz. 

[Read More] Top Penny Stocks to Buy Now? 3 Under $4 to Watch

The company stated, “The Company is currently compiling its consolidated cash operating costs and consolidated AISC results for the third quarter and first nine months of 2021, which will be released along with its third quarter and first nine months of 2021 financial results after the North American markets close on Tuesday, November 2, 2021.” B2Gold’s full third quarter 2021 financial results will be released on Tuesday, November 2nd after the markets close. Before these results are released, will BTG make your penny stock watchlist?


Are Mining Penny Stocks Worth Buying Right Now?

Finding the best mining penny stocks to buy in 2021 can be challenging. But, with a keen insight into which stocks are performing well, what the industry is doing, and how it could perform in the future, it can be much easier to make money with penny stocks. Considering all of this, do you think that mining penny stocks are worth buying right now or not?

The post Top Mining Penny Stocks You Need to Know About Right Now appeared first on Penny Stocks to Buy, Picks, News and Information |

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Author: A. Lawrence

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