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An In-Depth Look at Lithium – “White Gold” Has Been Discovered in Newfoundland

By Ron Hall According to the latest report (August 2021) from Roskill, the leading consultancy…

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This article was originally published by Resource World

By Ron Hall

According to the latest report (August 2021) from Roskill, the leading consultancy in critical metals supply chain intelligence, the outlook for the lithium market is dominated by rapid and sustained demand growth, driven by the use of lithium-ion (Li-ion) batteries in automotive and energy storage applications (ESS).

Furthermore, Roskill expect that fundamental changes in operation size and the range of lithium production sources will be needed to meet forecast demand growth and avoid a growing supply deficit and for this to succeed, producers will require adequate lithium compound prices to attract investment and incentivise the develop of lithium resources, a factor which is expected to see lithium prices well supported over the period to 2031.

Lithium does not occur as the metal in nature but is found combined in small amounts in nearly all igneous rocks and in the waters of many mineral springs. Spodumene, petalite, lepidolite, and amblygonite are the more important minerals containing lithium.

The first lithium mineral petalite, LiAlSi4O10, was discovered on the Swedish island of Utö by the Brazilian, Jozé Bonifácio de Andralda e Silva in the 1790s. It was observed to give an intense crimson flame when thrown onto a fire. In 1817, Johan August Arfvedson of Stockholm analysed it and deduced it contained a previously unknown metal, which he called lithium. He realized this was a new alkali metal and a lighter version of sodium.

However, unlike sodium, he was not able to separate it by electrolysis. In 1821 William Brande obtained a tiny amount this way but not enough on which to make measurements. It was not until 1855 that the German chemist Robert Bunsen and the British chemist Augustus Matthiessen obtained it in bulk by the electrolysis of molten lithium chloride.

Lithium is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal and under standard conditions, it is the lightest metal and the lightest solid element. Its compounds have many uses in the modern world. Lithium oxide is used in special glasses and glass ceramics and lithium chloride is one of the most hygroscopic materials known and is used in air conditioning and industrial drying systems.

Lithium stearate is used as an all-purpose and high-temperature lubricant and lithium hydride is used as a means of storing hydrogen for use as a fuel. The metal is also made into alloys with aluminum and magnesium, improving their strength and making them lighter. For example, a magnesium-lithium alloy is used for armour plating and aluminum-lithium alloys are used in aircraft, bicycle frames and high-speed trains.

Other lithium compounds are used in psychiatric medication primarily to treat bipolar disorder and major depressive disorders that do not improve following the use of antidepressants. It is also used in some non-rechargeable batteries for heart pacemakers, toys and clocks.

But by far its biggest use is in the rechargeable batteries that are used in electronics and electric vehicles. The Li-ion battery uses lithium ions as a key component of its electrochemistry. During a discharge cycle, lithium atoms in the anode are ionized and separated from their electrons. The lithium ions move from the anode and pass through the electrolyte until they reach the cathode, where they recombine with their electrons and electrically neutralize. The lithium ions are small enough to be able to move through a micro-permeable separator between the anode and cathode. In part because of lithium’s small size (third only to hydrogen and helium), Li-ion batteries are capable of having a very high voltage and charge storage per unit mass and unit volume.

Li-ion batteries can use a number of different materials as electrodes. The most common combination is that of lithium cobalt oxide (cathode) and graphite (anode), which is most found in portable electronic devices such as cellphones and laptops. Other cathode materials include lithium manganese oxide (used in hybrid electric and electric automobiles) and lithium iron phosphate. Li-ion batteries typically use ether (a class of organic compounds) as an electrolyte.

Compared to other high-quality rechargeable battery technologies (nickel-cadmium or nickel-metal-hydride), Li-ion batteries have several advantages. They have one of the highest energy densities of any battery technology today (100-265 Wh/kg or 250-670 Wh/L). In addition, Li-ion battery cells can deliver up to 3.6 Volts, 3 times higher than technologies such as Ni-Cd or Ni-MH.

This means that they can deliver large amounts of current for high-power applications. They are also comparatively low maintenance, and do not require scheduled cycling to maintain their battery life. Li-ion batteries have no memory effect, a detrimental process where repeated partial discharge/charge cycles can cause a battery to ‘remember’ a lower capacity. This is an advantage over both Ni-Cd and Ni-MH, which display this effect. Li-ion batteries also have low self-discharge rate of around 1.5-2% per month. They also do not contain toxic cadmium, which makes them easier to dispose of than Ni-Cd batteries.

Due to these advantages, Li-ion batteries have displaced Ni-Cd batteries as the market leader in portable electronic devices such as smartphones and laptops. Li-ion batteries are also used to power electrical systems for some aerospace applications, notable in the new and more environmentally friendly Boeing 787, where weight is a significant cost factor.

Despite their technological promise though, Li-ion batteries still have several shortcomings, particularly with regards to safety. Li-ion batteries tend to overheat and can be damaged at high voltages. In some cases, this can lead to thermal runaway and combustion. This has caused significant problems, notably the grounding of the Boeing 787 fleet after onboard battery fires were reported. Because of the risks associated with these batteries, several shipping companies refuse to perform bulk shipments of batteries by plane. Li-ion batteries require safety mechanisms to limit voltage and internal pressures, which can increase weight and limit performance in some cases. Li-ion batteries are also subject to aging, meaning that they can lose capacity and frequently fail after a number of years.

Another factor limiting their widespread adoption is their cost, which is around 40% higher than Ni-Cd. Addressing these issues is a key component for current research into the technology. Finally, despite the high energy density of Li-ion compared to other kinds of batteries, they are still around a hundred times less energy dense than gasoline (which contains 12,700 Wh/kg by mass or 8760 Wh/L by volume).

Nonetheless, the lithium mining sector has seen a proliferation of activity in the last 10 years largely driven by the EV industry:

Jiangxi Ganfeng Lithium Co. Ltd., based in China, is the largest lithium metal producer in the world, while its lithium compound capacity ranks third worldwide and first in China. The firm holds lithium resources across Australia, Argentina, and Mexico and has over 4,844 employees. It reported a revenue of 2020 $839.26 million in 2020, almost double the $432.11 million it reported in 2016. Tianqi Lithium, also headquartered in China, is the world’s largest hard-rock lithium producer and holds resource and production assets across Australia, Chile, and China. The company has over 1,800 employees globally and in 2018 controlled more than 46% of the global production of lithium. In its 2021 Q1 report, it announced total revenues of $140 million.

In the USA, Albemarle Corp. [ALB-NYSE], based in Charlotte, North Carolina and founded in 1994, has grown to establish itself as the second-largest lithium miner in the world, with revenues of $3.128 billion in 2020. With over 5,000 employees in 100 countries worldwide, Albemarle, as of 2020, was the largest provider of lithium for electric vehicle batteries.

Sociedad Química y Minera (SQM) is a Chilean chemical company whose main production facilities are located in the Atacama Desert. In 2020, SQM produced 72.2 thousand tonnes of lithium carbonate at their Salar de Atacama mine. By comparison, in 2011 it mined only 38 thousand tonnes.

Stares and Froude at Golden Hope site

In Canada, Sokoman Minerals Corp. [SIC-TSXV, SICNF-OTCQB] and Benton Resources Inc. [BEX-TSXV] recently formed an alliance in a bid to share the cost of acquiring and exploring gold opportunities (on a 50-50 basis) in Newfoundland.

The aim is to show there is a lot more gold to be found beyond recent discoveries by Sokomon, Marathon Gold Corp. [MOZ-TSX, OTC-MGDPF], New Found Gold Corp. [NFG-TSXV], and others.

However, the alliance made headlines back in August, 2021, when it announced what is believed to be the first discovery of significant lithium mineralization on the island of Newfoundland.

During a recent trip to the Golden Hope property, one of three gold projects in the alliance’s portfolio, senior executives from both companies identified a swarm of spodumene-bearing pegmatite dykes.

In an October 14, 2021 press release, the companies said prospecting has expanded the area containing lithium-bearing pegmatite dykes, now known as The Kraken Pegmatite Swarm, to an area measuring approximately 2.2 kilometres long by 0.85 kilometres wide. Assays from rock samples have shown that the dyke system contains economic grades of lithium (up to 2.37% Li2O), is widespread and open along strike.

Benton President and CEO, Stephen Stares, said it is quickly becoming evident that the Kraken dyke system is a large, highly-evolved, pegmatite field. Stares said he is seeing similarities to the geological environment and setting of other large systems in the Appalachian belt, including important deposits held by Piedmont Lithium Inc. in eastern U.S. and Genfeng Lithium’s Avalonia project in Ireland.

Exploration crews are working to establish targets for a drill program on the Kracken Pegmatite Swarm. A drone survey is also being planned to provide a structural/lithological setting and help identify gold-bearing structure extensions, as well as any unrecognized structures including those potentially related to lithium-bearing pegmatites.

“Lithium is the green metal of the future with the electric vehicle buzz,’’ said Sokoman President and CEO Timothy Froude.  “Now is the time to get into lithium.’’

Benton and Sokoman – Grey River JV Project – South Coast of Newfoundland

However, in the interview, Froude was quick to stress that gold is the primary focus on all of the properties in the alliance portfolio, including Golden Hope, Grey River and Kepenkeck.

Golden Hope is a property that was acquired by staking. It is a large, district-scale project consisting of 3,146 claims (78,650 hectares) and is accessible by the Burgeo Highway and transected by a major power transmission line.

The property covers extensions of two major structures linked to significant gold prospects and deposits in southern Newfoundland. The rock units and structures on the property are likewise related to those associated with new low-sulphidation gold discoveries in central Newfoundland, including Sokoman’s Moosehead Project and New Found Gold’s Queensway Project.

Sokoman says Golden Hope is extremely underexplored, despite known occurrences of gold, and the presence of unsourced till, soil and stream sediment geochemical anomalies.

Meanwhile, news that the Grey River gold project on Newfoundland south coast has been advanced to the inaugural drilling stage, sparked active trading in both Sokoman and Benton (October 13, 2013).

Exploration crews are targeting high-grade gold mineralization similar in style to the Pogo gold deposit in the Tintina Belt of Alaska. The Pogo mine has produced 3.9 million ounces of gold at 13.6 g/t gold (to the end of 2019) with mineral reserves of more than 7 million ounces of gold.

Exploration at Grey River will focus on areas of anomalous gold with six to ten reconnaissance holes using data from a recently completed, high resolution, magnetic/electromagnetic airborne survey that identified potential structures correlating with the gold enriched areas.

Benton Sokoman Pyrite bearing quartz vein at Grey River

Historical sampling results include chip/channel samples of 225 g/t gold, and widespread grab sample values of less than detection to 3.8 g/t gold. None of the gold enriched areas, which occur over an 8.0-kilometre length of the silica body, have been drill-tested.

The project is centred on the community of Grey River, a deep-water, ice-free harbour on the south coast of Newfoundland, about 38 kilometres southeast of the Golden Hope joint venture.

Like Golden Hope, the alliance’s Kepenkeck Gold property lies along trend from Canstar Resources Inc.’s [ROX-TSXV, CSRNF-OTCPK] Golden Baie property.

Kepenkeck covers 595 claims over 15,625 hectares located near the northeast extension of the Hermitage Flexure, the predominant geological feature of the south Newfoundland Appalachians.

Recent prospecting identified up to 5.34 g/t gold in grab samples. Visible gold has been panned from till in two locations on the property where the target is high grade and quartz veining, hosted in graphitic shales similar to that of New Found Gold Corp’s Queensway property.

It is worth noting that Benton and Sokoman were already established players in Newfoundland before the strategic alliance was announced in May, 2021.

Sokoman’s key asset is its 100%-owned high-grade, low-sulfidation-style Moosehead Gold Project. It is located along the Trans-Canada Highway in North-Central Newfoundland and on the same structural trend as Marathon Gold’s Valentine Gold Project and New Found Gold’s Queensway Project.

Sokoman emerged on investor radar screens in July, 2018, when discovery hole MH-18-01 returned 11.90 metres of 44.96 g/t gold from 109 metres down hole. The company is now one of the largest land holders in Newfoundland with direct ownership or co-ownership of over 150,000 hectares. The company said it is sufficiently funded to advance its portfolio of properties, which includes the Fleur de Lys Project in northwest Newfoundland.

Froude said Sokoman plans to spend $5 million between now and the end of 2021, including $3.5 million at Moosehead, where the emphasis is on barge-based drilling, and $1.5 million on the alliance properties.

Benton Resources is a multi-commodity project generator with a high-quality portfolio and partners. Its aggressive and experienced management team is focused on base and precious group metal exploration.

Benton’s portfolio includes the Far Lake copper-silver project in northwestern Ontario, a new high-grade copper discovery that the junior has optioned from White Metal Resources [WHM-TSXV], with exploration and drilling continuing throughout 2021.

Trench samples have returned assays of 22% copper from Far Lake, which Benton said shows characteristics similar to that of other large world-class porphyry and IOCG deposits.

In June, 2021, Benton completed a $2.25 million financing that was led by Bay Street financier Eric Sprott. Whenever possible, Benton retains net smelter return royalties for potential long-term cash flow.

Meanwhile, on October 13, 2021, Sokoman was trading at 39.5 cents, in a 52-week range of 78 cents and 14.5 cents, leaving the company with a market cap of $76.2 million, based on 200 million shares outstanding.

Benton was trading at 20 cents in a 52-week range of 25 cents and 13.5 cents, leaving the company with a market cap of $23 million based on 115.6 million shares outstanding.

Author: Resource World

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Best Mining Penny Stocks to Buy Right Now? 3 To Look at This Month

Will these mining stocks make your watchlist? When discussing mining penny stocks,…
The post Best Mining Penny Stocks to Buy Right Now? 3 To Look at…

Will these mining stocks make your watchlist?

When discussing mining penny stocks, it is difficult not to highlight how well they have performed over the last year and a half. It all started with the pandemic, which pushed precious commodities like gold and silver to new highs. As a result, more types of mining equities began to perform better. There are far more of these assets than many investors think.

Many people think of gold and silver stocks when they think about mining assets. In reality, there are numerous different types of mining stocks. Companies in this category include those that look for copper, steel, uranium, lithium, lead, and other minerals. Bitcoin mining stocks, for example, can be considered for this type of asset.

What should you look for when investing in mining penny stocks, you may be wondering? There are a few critical actions that may be taken to ensure that the moment is perfect to invest in a company. The first and most obvious step is to read the news from across the world. Consider how the pandemic affected and continues to affect the mining industry. Sector news is also critical; for example, shortages and growing demand are useful pieces of information to have. Let’s look at three mining stocks performing well in December 2021.

Top Mining Stocks To Watch

Denison Mines Corp. (NYSE: DNN)

Denison Mines Corp. is a mining penny stock that just gained 2% on December 2nd. This is a mining business that is engaged in uranium development. The development business owns a 95 percent share in the Wheeler uranium project, which is located in the Athabasca Basin of northern Saskatchewan. This is a mining stock that has previously gotten a lot of attention on this site due to its consistent upward market momentum.

The corporation announced the adoption of an Indigenous Peoples Policy, or IPP, on December 2nd. The Board of Directors endorsed this, which indicates the company’s acknowledgment of the critical role of Canadian business in reconciling with Indigenous peoples in the country. This is consistent with Denison’s pledge to take action to advance reconciliation. This was critical for the corporation because it operates in several areas across Canada that are on Indigenous peoples’ traditional territory.

President and CEO of Denison, David Cates said, “I believe Industry has an important role to play in acknowledging, and building awareness of, the history of Indigenous people in Canada and the critical importance of pursuing the objectives of reconciliation. As such, the adoption of an Indigenous Peoples Policy is a notable step in our Company’s journey to bring reconciliation to the forefront of what we do and how we do it.” DNN stock has increased in value during the last six months. Will DNN stock be added to your watchlist as a result of its recent advancements?

IAMGOLD Corporation (NYSE: IAG)

IAMGOLD Corporation is a gold mining company that has seen its stock price rise in the previous 30 days. This firm looks for, develops, and manages land for the sale of gold in a variety of countries. IAMGOLD is a global company with operations in North America, South America, and West Africa. These territories are home to the Westwood mine, the Boto gold project, and a slew of other ventures.

IAMGOLD released their third-quarter results for 2021 on November 3rd. The firm released its third-quarter results for 2021 on November 3rd. IAMGOLD generated $121.6 million in mine-site free cash flow, while adjusted EBTIDA was $265.7 million. During the same time period, IAMGOLD reported a total net loss of $20.1 million, or $0.04 per share. Despite certain flaws in its financial results, IAMGOLD has had several moments of strong performance this year.

CEO and President of IAMGOLD, Gordon Stothart said, “The third quarter of 2021 saw improvement in our operating performance supported by the continued strong results at Essakane. Rosebel performed in line with the revised plan. Construction activities at Côté continue to proceed well, reaching 36% project completion at quarter-end.” Is IAG on your list of mining penny stocks to watch right now?

New Gold Inc. (NYSE: NGD)

We’ve previously identified New Gold Inc. as a mining penny stock with a lot of momentum on multiple occasions. This firm develops and manages a number of mineral properties throughout North America. The Rainy River gold-silver mine, which it controls 100 percent of, is one of its most important assets. The Rainy River mine is located in the Canadian province of Ontario. In addition, the corporation owns a 100% stake in the New Afton gold-copper mine. This mine is in the Canadian province of British Columbia.

On October 13th, the company revealed its third-quarter operational results. New Gold produced a total of 105,628 gold equivalent ounces throughout this time. Rainy River and New Afton mines yielded 60,785 and 44,843 gold equivalent ounces, respectively. Due to fewer tons milled, its gold equivalent production dropped in the third quarter.

President and CEO of New Gold, Renaud Adams said, “We remain on track to deliver on our updated guidance, and we continue to make progress towards securing the Company’s future growth at both assets. Our liquidity position improved for a third consecutive quarter, and I continue to expect meaningful free cash flow generation from our operations in the near-term” Amid these new developments, will NGD be on your mining penny stock watchlist?

Top Mining Penny Stocks To Buy?

Penny stocks are infamous for being extremely volatile and unpredictable. As a result, it is suggested that you concentrate on studying and investing carefully. No one knows what will happen to mining stocks in the market as long as inflation fears persist. As we approach 2022, only time will tell what happens to mining penny stocks. For the time being, which companies will you add to your watchlist?

The post Best Mining Penny Stocks to Buy Right Now? 3 To Look at This Month appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.








iamgold corporation

Author: Jon Phillip

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Economics

7 Stocks to Buy If the Government Shuts Down in February 2022

Since Wall Street’s opening bell sounded on the day after Thanksgiving, clouds of uncertainty have hung over U.S. markets. Reports of what would soon…

Since Wall Street’s opening bell sounded on the day after Thanksgiving, clouds of uncertainty have hung over U.S. markets. Reports of what would soon be dubbed the omicron variant were quick to send shock waves across certain sectors. And since then, more news has risen from Capitol Hill that has proved unsettling for investors. Bipartisan bickering has led to increasing discussion of a government shutdown.

Fortunately, Democratic lawmakers managed to avert the shutdown just before a key Dec. 3 deadline, securing funding through February 2022. This represents only a temporary solution to a larger problem, though, leaving investors with pressing questions. What could a government shutdown mean for markets?

If you’re wondering what stocks to buy as the next funding, you’re not alone.
While we don’t know for sure what the immediate future will look like, if it does include a government shutdown, either partial or complete, it likely won’t be all bad news for investors. On the contrary, there are some industries that stand to benefit. Let’s take a look at some stocks to buy if a shutdown does occur.

  • Procter & Gamble (NYSE:PG)
  • Campbell Soup (NYSE:CPB)
  • Archer-Daniels-Midland (NYSE:ADM)
  • Coca-Cola (NYSE:KO)
  • Colgate-Palmolive (NYSE:CL)
  • Altria Group (NUSE:MO)
  • Newmont (NYSE:NEM)

Stocks to Buy for a Government Shut Down: Procter & Gamble (PG)

Source: Jonathan Weiss / Shutterstock.com

As you can probably tell from the names on this list, the consumer staples sector is likely to benefit the most from a shutdown. No company produces more household items than Procter & Gamble. Its holdings are truly vast, spanning healthcare, home care, and baby and feminine care, to name just a few. And in each area, P&G has secured a significant market share.

Government shutdowns tend to induce strong feelings of uncertainty, compelling consumers to stock up on the items they don’t want to be without if things take a turn for the worst. During the shutdown of 2018, many government agency workers found themselves working without pay or with wages in furlough. They remember that feeling well and if a shutdown comes again, they don’t want to be ill-prepared.

We also know that during periods of uncertainty, nervous Americans tend to over-prepare by over-shopping. The kind of products they need are distributed by large companies, and Procter & Gamble controls many of the country’s most trusted brands.

PG stock has also been touted for its resistance to the inflationary trends that are also affecting consumer habits. If you’re looking for stocks to buy in preparation for a shutdown, there’s no better bet than this consumer staples giant.

Campbell Soup Company (CPB)

a grocery store aisle stocked with cans and cans of Campbell's SoupSource: HeinzTeh / Shutterstock.com

If Americans are going to be stocking up on essentials, they’ll be employing the same practice when it comes to food. And when it comes to stockpiling non-perishable food items, there’s no better bet than Campbell Soup.

The iconic brand is sold everywhere, from big-box markets to dollar stores, and it keeps for months upon months. Additionally, we’re heading into the coldest season and as temperatures drop, the need for warm items such as hearty soups will only mount. InvestorPlace contributor Joel Baglole named CPB as  stock to buy the next time a national event gives Americans apocalyptic anxieties. As he stated, “When people think of stockpiling food supplies, they turn to soup. It’s hearty, comforting, makes for a great lunch, and has a shelf life that can outdo most other canned goods.”

Sales are likely to increase as the company heads into a winter marked by multiple events that could easily have Americans stocking up on food items. CPB stock should definitely be high on your list of stocks to buy for a shutdown, particularly as it’s been struggling lately, creating what could become a lucrative opportunity to buy the dip if such trends continue.

Stocks to Buy for a Government Shutdown: Archer-Daniels-Midland (ADM)

Archer-Daniels-Midland (ADM) logo on sign at office campusSource: Katherine Welles / Shutterstock.com

The company commonly referred to by its initials is known as a staple of food production and distribution. With a reach that extends far beyond that, though, it’s also a leader in the global field of agricultural processing. Throughout years of fairly steady growth, the company has worked to emphasize practices that center around health and sustainability. ADM doesn’t own farms, but it partners with them by supplying innovative technologies to help spur the growth and distribution of agricultural products.

It doesn’t stop with agricultural services, though. The company’s work spans areas including oilseeds and carbohydrate solutions as well as animal nutrition ingredients. Moreover, if it involves food and will be in demand as America faces a daunting economic outlook, ADM will be helping provide it.

It’s worth noting that while many consumers will absolutely be stocking up on items like Campbell soups, their more health-conscious peers will be more focused on the food items provided by companies like Archer-Daniels-Midland. ADM was recently named to a list of consumer staple stocks to buy for reasons even more pronounced today.

Coca-Cola Company (KO)

coca-cola (KO) bottles and cans. coke is a blue-chip stocksSource: Fotazdymak / Shutterstock.com

There’s likely no brand more iconically American than Coca-Cola. Even non-soda drinkers have sampled some product owned by the massive soft drink conglomerate whose holdings are also quite vast, encompassing brands such as Dasani Waters, Honest Tea and Minute Maid Beverages.

If nervous Americans are stocking up on food, they’ll also have to stock up on beverages and there is no beverage company better-known than Coca-Cola. Not all Americans drink the soda for which the company is named, but their beverage of choice is likely made by one of the company’s subsidiaries. With this type of empire, KO is a safe investment as the country prepares for a period of uncertainty.

Even in the face of inflation, KO stock appears to be standing its ground. As it turns out, there is plenty of reason, as the stock is touted for its inflation-proof qualities. As InvestorPlace contributor Alex Sirois noted in a recent list on exactly that topic, “the general thesis is that consumer goods bear the brunt of inflation.” KO stock should definitely should not be counted out of lists of stocks to buy in the face of a government shutdown.

Stocks to Buy for a Government Shutdown: Colgate-Palmolive (CL)

Image of the Colgate-Palmolive logo on a buildingSource: Shutterstock

It isn’t just food and beverages that Americans will be stocking up on if the shutdown proceeds, though. You probably associate the name with products such as toothpaste, but the multi-national corporation under which Colgate operates produces and distributes toothbrushes, mouthwashes, and rinses for both adults and children. It also produces products of general hygiene needs for both humans and animals. For anyone concerned with dental wellness or just general hygiene, Colgate’s products are essential, and they will be of paramount importance in a time of economic uncertainty. If you keep it next to your bathroom sink, Colgate-Palmolive probably made it.

Earlier this year, InvestorPlace contributor Josh Enomoto named CL among recession-resistant stocks to buy for nervous investors. “A recession would have to be pretty darn awful for people to skimp out on the bare necessities,” he noted.

While we’re not facing a recession just yet, it seems a safe assumption that Colgate-Palmolive will be a company that only sees business increases as nervous Americans prepare for the worst. The last government shutdown we saw led to considerable economic instability and plenty of anxiety among consumers. This time around, Americans will want to be prepared and shopping helps the nervous feel better, particularly for the type of essentials that Colgate-Palmolive provides.

Altria Group (MO)

a sign with the Altria (MO) logoSource: Kristi Blokhin / Shutterstock.com

We’ve discussed the essentials quite a bit throughout this list, but we all know that nervous Americans won’t just be buying what’s good for them. They’ll be stocking up on things that help them feel better, such as alcohol and cigarettes. Tobacco companies stand to benefit from an economic period where stress will be high. This giant of its sector owns several of the biggest names in big tobacco including PhilipMorrisUSA. It’s also worth noting that Altria has been exploring expansions into the fast-growing cannabis market. In 2018, it made a strategic investment in Canadian cannabis producer Cronos Group (NASDAQ:CRON) and explored further investments more recently.

As InvestorPlace contributor Chris Lau noted, “Some investors view tobacco as an unattractive investment. But people who smoke still need to buy the company’s products. Plus, Altria has a discount segment that is growing. It is careful not to gouge price-sensitive customers, especially its premium brands.”

Anyone seeking to capitalize on the increase in cigarette sales that the country could see would be well served to consider MO among shutdown stocks to buy.

Stocks to Buy for a Government Shutdown: Newmont (NEM)

Newmont (NEM) logo on a mobile phone screenSource: Piotr Swat/Shutterstock

While this name may seem like an odd choice for a list that primarily includes consumer staples stocks, it’s also worthwhile to consider a worst-case scenario play, examining the type of stock that stands to benefit if a shutdown is prolonged or leads to a worse economic landscape in which fears are amplified significantly.

If we start approaching that type of scenario, we’re likely to see companies with heavy ties to gold mining start to benefit as Americans seek the safest ways to store their money and protect their assets. As the country’s largest gold mining company, Newmont is worth a look if you’re seeking stocks to buy. The company’s mines can be found in the American west, but its mining reach has expanded to countries such as the Dominican Republic, Ghana and Australia.

We recently saw a rally in gold prices following the inflationary trends that came to define the late fall. While prices have fallen since then, fears are now rising for other reasons and if they continue to worsen, gold mining companies will be standing at the ready.

For anyone interested in stocks to buy for a time marked by panic and uncertainty, this could be a good time for a bullish play on gold mining.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Samuel O'Brient

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BMO Resumes Coverage On MAG Silver Following US$46.0 Million Financing

On November 29, MAG Silver (TSX: MAG) closed their US$46 million offering wherein the company issued 2.69 million shares, which
The post BMO Resumes Coverage…

On November 29, MAG Silver (TSX: MAG) closed their US$46 million offering wherein the company issued 2.69 million shares, which included 15,700 shares to MAG insiders at US$17.15 per share. The company stated that they intend to use the proceeds of the offering, “to fund exploration on Juanicipio and its other projects including Deer Trail, and to fund certain sustaining capital requirements at the Juanicipio Project not included in the initial project capital estimates, and for working capital and general corporate purposes.”

MAG Silver currently has 10 analysts covering the stock with an average 12-month price target of C$28.83, or a 39% upside to the current stock price. Out of the 10 analysts, 7 have buy ratings and the other 3 have hold ratings. The street high sits at C$33.82 from Roth Capital while the lowest comes in at C$24.75.

On the 29th, BMO Capital Markets resumed their coverage on MAG Silver, reiterating their C$25 12-month price target and market perform rating. BMO says that this raise will help fund exploration and get Juanicipio across the finish line.

Additionally, it will help keep the companies cash balance strong. The company ended the third quarter with US$31.7 million. With this additional US$40 million on hand, they expect the company to make a $30 million capital contribution to their joint venture sometime in December. That will top the joint venture up to US$68 million in cash and MAG with roughly $34 million in cash, plus the cash flow from the business. They believe that MAG Silver will end out 2021 with US$44 million in cash.

BMO has updated their net asset value but believes the raise has only a modest impact since the increase in shares is roughly 3% with the overallotment, bringing the total shares outstanding to 97.8 million. This brings their NAV assumption to US$10.29 from US$10.19 prior.

Lastly, BMO says that the company is getting close to Juanicipio ramping up. The company noted that the plant is expected to come in on budget and expected to be completed by year-end.

Below you can see BMO’s full year 2022 assumptions.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post BMO Resumes Coverage On MAG Silver Following US$46.0 Million Financing appeared first on the deep dive.


Author: Justin Young

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