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De Grey confident of resource growth potential at regional targets

Special Report: De Grey Mining’s strategic plan to extend its existing resources and make large scale discoveries is looking solid … Read More
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De Grey Mining’s strategic plan to extend its existing resources and make large scale discoveries is looking solid so far, with positive RC drill results from the Withnell gold deposit and the Calvert and Gillies prospects within the Mallina gold project.

Results from Withnell returned multiple mineralised intercepts in sheared, quartz veined sediments including 29m at 5.4g/t gold from 80m (MWRC0049).

At Calvert down dip and strike extensional drilling has returned multiple intercepts at the known shear-hosted gold deposit and has expanded the footprint of the Calvert intrusion.

Results include 14m at 3.2g/t gold from 128m (MWRC0001).

And at the Gillies prospect, follow-up RC drilling has extended the previously reported zone of gold mineralisation, with results including 5m at 14.8g/t gold from 14m from 188m (MSRC0004).

Results demonstrate resource extension potential

Prior to the discovery at Hemi, the Withnell trend was the largest gold deposit (723,000 ounces gold) in the Mallina Basin.

And previous exploration at the Calvert gold deposit has defined a shallow resource of 52,000 ounces gold.

De Grey (ASX:DEG) general manager exploration Phil Tornatora says the new results to the west of Hemi “continue to demonstrate the exploration and resource extension potential of the company’s 150km long tenement package.”

“This success follows renewed regional exploration activity with the establishment of a dedicated regional exploration team earlier this year in parallel with the company’s focus at Hemi.

“The company is committed to continuing exploration across its tenement package in parallel with project studies and development activities.”

Pic: De Grey’s tenement holdings, Pilbara WA.

Aircore drilling underway at Geemas and Charity Well

Exploration has commenced with aircore drilling at the Geemas prospect this week and will move on to the Charity Well prospect in the western end of the tenement package to test intrusion-related targets.

“The aim of the exploration is to make new significant discoveries and to achieve meaningful extensions to existing regional resources that will enhance the production potential recently demonstrated in the company’s recent scoping study,” Tornatora said.

“Drilling will return to Withnell, Calvert and Gillies following initial drilling at the Geemas and Charity Well intrusion prospects and the Mallina shear-hosted target.”

 


 

 

This article was developed in collaboration with De Grey Mining, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post De Grey confident of resource growth potential at regional targets appeared first on Stockhead.

Economics

5 Canadian metal stocks to buy

Highlights Over 43 per cent of the global mining firms are listed on the Toronto Stock Exchange and Toronto Stock Venture Exchange A stock mentioned…

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Highlights

  • Over 43 per cent of the global mining firms are listed on the Toronto Stock Exchange and Toronto Stock Venture Exchange.
  • A stock mentioned here surged by 104.8 per cent in the past year.
  • One of the companies listed earned a gross profit of US$380.2 million in Q2 2021, an increase of US$238.1 million year-over-year.

The Canadian headline index surged by 201 points or 0.97 per cent before closing at C$ 20,819. 94 on Thursday, October 14. Base metals, information technology, and the industrials sectors traded in the green.

Over 43 per cent of the global mining firms are listed on the Toronto Stock Exchange and Toronto Stock Venture Exchange. Here’s a compilation of five TSX-listed metal stocks to consider.

Also read: Top 5 TSX value stocks to buy

  1. Teck Resources Ltd (TSX: TECK)

Teck Resources is engaged in the development and mining of mineral properties. Its business units are focused on zinc, copper, coal, and energy.

Its gross profit increased to C$ 233 million in Q2 from the steelmaking coal business segment.

The company posted an adjusted EBITDA of C$989 million in the second quarter of fiscal 2021, up by 104 per cent year-over-year. Its liquidity as of July 26, 2021, stands at C$6.1 billion.

The stock trading C$ 39.10 apiece holds a P/E ratio of 106.10 as of October 15. The stock’s one-year growth stands at 104.8 per cent and nearly 56.3 per cent YTD.

  1. First Quantum Minerals Ltd (TSX:FM)

The stock worth C$ 27.68 apiece grew by nearly 125 per cent in the past year and 21.13 per cent year-to-date. First Quantum Minerals produces gold, zinc, nickel, copper, and cobalt.

It has mining operations in Australia, Africa, and Latin America.

Also read: Top 3 Canadian smallcap stocks to buy this fall

Its cash flows from operating activities of US$679 million in Q2 2021 were US$524 million higher than Q2 2020.

First Quantum stocks hold a P/E ratio of 46.70, as per TMX data.

The mining firm had US$1.79 billion in net unrestricted cash and cash equivalents at the end of the quarter.

  1. Labrador Iron Ore Royalty Corporation (TSX:LIF)

In the second quarter of fiscal 2021, the investment company posted a royalty revenue of C$ 78.8 million, compared to C$ 46.2 million a year ago.

Its equity earnings from Iron Ore Company of Canada were C$66.2 million in Q2 2021, compared to C$28.7 million YoY.

The steel firm’s stocks surged by nearly 40 per cent in the past year, with a P/E ratio of 7.10.

The company pays a quarterly dividend of C$ 2.10 per stock, with a three-year dividend growth of 39.51.

Also read: This TSX oil & gas stock skyrocketed 285% in a year!

  1. Lundin Mining Corporation (TSX: LUN)

The mining firm’s stocks traded C$10.28 at close on October 14. The diversified base metals producer has operations in Chile, the US, Sweden, Portugal, and Brazil.

Lundin Mining’s gross profit for Q2 2021 was US$380.2 million, an increase of US$238.1 million year-over-year.

The Canadian mining leader had cash and a net cash balance of nearly US$250 million and US$ 190 million as of July 28, respectively. The firm has a return on equity (RoE) of 15.07 per cent and its current dividend yield of 3.5 per cent.

The stocks surged by over 34 per cent in the past year and over 12.8 per cent quarter-to-date.

  1. Turquoise Hill Resources Ltd (TSX:TRQ)

The firm through its principal asset, the Oyu Tolgoi copper-gold mine, is engaged in the exploration, development, and mining operations.

The international mining company posted US$ 317.8 million in revenue from the operating segment for the three months period ended June 30.  The stocks delivered an ROE of 4.63 per cent and a return on assets of 3.25 per cent on October 15.

The scrips have added nearly 80.37 per cent of growth in the past year. It closed at C$19.12 on October 14.

Also read: The Best Cryptocurrencies of 2021

Bottom line

With inflation looming, gold and base metals prices could hold steady or grow. However likely this is, it’s not a given.

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Japan’s New Prime Minister Admits Abenomics Was A Failure

Japan’s New Prime Minister Admits Abenomics Was A Failure

Sometimes it takes years, if not decades to be proven right in a world that has…

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Japan's New Prime Minister Admits Abenomics Was A Failure

Sometimes it takes years, if not decades to be proven right in a world that has been turned upside down.

Take Abenomics, the "radical" Japanese vision that was supposed to overhaul Japan's economy and society, push wages higher, boost Japanese exports, spark en economic renaissance and drag Japan out of its perpetual deflationary debt trap (but it's not targeting a weaker yen, it was never targeting a weaker yen) yet was nothing more than sanctioned money printing, and which we bashed from the very beginning, to wit:

... and so much more, it was just today, almost a decade after Abenomics first arrived on the scene, that we get the official verdict, that it was - as we said all along - a failure.

Speaking to the FT in his first interview with international media since taking over Japan’s leadership this month, Fumio Kishida, Japan's new prime minister pledged to move the country away from neoliberalism as he lambasted his own party’s failure to deliver broad-based growth under the Abenomics programme that defined the economy for almost a decade.

Kishida told the FT that while regulatory reform remained necessary, he would approach it with a focus on narrowing the gap between the rich and poor. The implication - Abenomics, like money printing everywhere else, was responsible for creating a staggering chasm between the rich and poor.

“Abenomics clearly delivered results in terms of gross domestic product, corporate earnings and employment. But it failed to reach the point of creating a ‘virtuous cycle’,” Kishida said, in his bluntest attack on a program embraced by his two predecessors that propelled the Tokyo stock market through a doubling in value.

“I want to achieve a virtuous economic cycle by raising the incomes of not just a certain segment, but a broader range of people to trigger consumption. I believe that’s the key to how the new form of capitalism is going to be different from the past,” he added, Kishida said sounding almost socialist.

In Japan, “neoliberalism” most often refers to the reforms of the 1990s and 2000s, including deregulation, privatization and labor market reform, rather than tight fiscal policy and cuts to public spending. By openly criticising his predecessor, Shinzo Abe, who failed not once but twice as Japan’s longest-serving prime minister and who resigned in September 2020, Kishida took a calculated risk according to the FT, as he prepares for a general election on October 31.

One reason for his assault on Abenomics is that recent polls have showed him with an average approval rating of just over 50 per cent, considerably lower than most of his predecessors when they came into office and a signal, said political analysts, that his honeymoon period for enacting meaningful reform may be short.

The former foreign minister was chosen to replace Yoshihide Suga as leader of the ruling Liberal Democratic party on the understanding that he would offer “status quo” stability and continuity. Despite attempts to remove that image, he has already backtracked on one of his major policy initiatives to raise capital gains tax after share prices fell sharply on concerns that such a move would kill a recent revival of interest by individual domestic investors.

Kishida stressed his new economic approach — involving tax incentives for companies to raise wages and pay increases for nurses and care workers — would attempt to reverse the failures of the “trickle-down” theories and market-led reforms that have guided Japanese policymaking from the mid-2000s.

“Everyone just considers regulatory reform in terms of market fundamentalism, competition and survival of the fittest. That’s the problem with our past thinking on regulatory reform,” Kishida said, calling on companies and the public to share a more holistic vision of the economy.

He also envisions deeper collaboration between the state and the private sector to secure strategic assets and technologies such as chips and rare earths that will be pivotal for economic security.

“It is important to ensure a self-sufficient economy when we are considering future growth,” Kishida said. “We need to make sure that Japan has technologies that are critical to complete global supply chains so we can achieve indispensability.”

Kishida publicly signaled for the first time that he may also take a new approach to the corporate governance reform that has been a pillar of the Abenomics programme alongside aggressive monetary easing and fiscal stimulus.While Japan introduced its first corporate governance code in 2015, Kishida said a separate code may be needed to address the needs of small and medium-sized companies. “It’s not realistic to apply the same rules. Corporate governance is important for small- and medium-sized enterprises but they can’t do it in the same way as big companies,” he explained.

Predictably, corporate executives who got egregiously rich thanks to money printing Abenomics have privately expressed scepticism about the new prime minister’s economic agenda, pointing to how Japan has failed to emerge from deflation and open up rigidly regulated markets even after nearly nine years of strong public support for Abenomics. Their solution: do more of what has failed, after all it makes them richer.

Kishida also faces a more complex geopolitical environment than his predecessors, with China’s increasing assertiveness and a global rush to secure national supply chains following the turmoil caused by the coronavirus pandemic.When asked about the new trilateral security partnership the US has launched with the UK and Australia to strengthen their ability to counter China, Kishida said Japan had no specific plans to join the framework.

But he added: “Considering the stability of the region, it is extremely important for European and US countries to be interested and involved in Asia’s security environment.”

Kishida heads an LDP faction with a historically dovish stance on China, but as prime minister, he has called for a strengthening of the country’s missile and other defense capabilities.

For the upcoming election, the ruling party for the first time included a manifesto pledge to double defence spending, in a break from the long-held tradition to keep its military budget within 1 per cent of GDP.

“On the economic front, it’s important to stabilize relations with China,” Kishida said, before noting recent “questionable behavior” from Beijing. “So on the political level, Japan must be able to firmly assert itself against China.”

Tyler Durden Fri, 10/15/2021 - 20:50
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Wall Street ends higher as financials, consumer stocks lead gains

Benchmark US indices closed higher for the second consecutive day on Friday October 15 buoyed by robust quarterly results of financial majors Goldman…

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Benchmark US indices closed higher for the second consecutive day on Friday, October 15, buoyed by robust quarterly results of financial majors Goldman Sachs and Charles Schwab and others.

The S&P 500 rose 0.75% to 4471.37. The Dow Jones rose 1.09% to 35294.76. The NASDAQ Composite rose 0.50% to 14897.34, and the small-cap Russell 2000 fell 0.37% to 2265.65.

The S&P 500 advanced 1.9% this week and is on course for its best monthly performance since July.

Markets were upbeat after solid quarterly results of companies. In addition, Friday's positive retail sales data helped reassure investors about the growth outlook. Retail sales rose in September despite concerns over the Delta variant and the culmination of the government unemployment benefits.

The Commerce Department said on Friday retail sales rose by 0.7% in September on a seasonally adjusted basis from August, reflecting strong demand and higher consumer prices.

Financials, consumer cyclicals, industrials, and energy stocks were the top gainers on S&P 500. Utility stocks were the bottom movers. Ten of the 11 index segments were in the positive territory.

Stocks of financial major Charles Schwab Corporation (SCHW) jumped over 3% after reporting a 119% YoY increase in profits for the third quarter. Its net income rose to US$1.5 billion from US$0.698 million a year ago. Also, its net revenue increased by 87% YoY to US$4.57 billion.

Goldman Sachs Group, Inc. (GS) stock rose over 2% in intraday trading after reporting its Q3 profit of US$5.38 billion, an increase of 60% YoY. Its revenue was up 26% YoY to US$13.61 billion.

On the previous day, several major financial companies, including Morgan Stanley, Bank of America, and Citigroup, reported significant profits in the third quarter. According to Wall Street analysts, some 80% of the S&P 500 companies have beat their Q3 estimates so far.

Logistics company J.B. Hunt Transport Services' stock rose 9% after reporting profit growth in the third quarter. Metal producer Alcoa Corporation (AA) stock climbed 15% on Friday, a day after posting higher third-quarter sales, boosted by higher aluminum prices.

Moderna Inc (MRNA) stock slipped nearly 3% in intraday trading after the Wall Street Journal reported a delay in the FDA decision on approving its Covid-19 vaccine for teenagers.

Overall, the US market is seeing substantial gains in October, boosted by strong quarterly results. However, supply chain and inflation worry continue to dog investors. They fear that supply snarls and a sharp rise in energy prices might further worsen inflation.

Wednesday's CPI figures showed US inflation rose 0.4% in September after climbing 0.3% in August. Food and rent costs contributed nearly half of the September inflation rise. Meanwhile, the fed said it is considering withdrawing its crisis-era monetary policy later this year to curb price rise.

On Friday, the 10-year Treasury bond yields rose for the second consecutive day. It rose to 1.578% from 1.519% on Thursday. Treasury yields rise when the bond prices fall.

Also Read: Prologis (PLD) raises guidance after Q3 profits jump over 140%

Also Read: Mania to mainstream: In a first, SEC might allow Bitcoin ETF trading

Ten of the 11 S&P 500 segments were in the positive territory.

Also Read: Nine penny stocks with over 100% year-to-date return to explore

Futures & Commodities

Gold futures were down 1.65% to US$1,768.20 per ounce. Silver declined 0.53% to US$23.352 per ounce, while copper rose 1.91% to US$4.7200.

Brent oil futures increased by 1.00% to US$84.84 per barrel and WTI crude was up 1.50% to US$82.53.

Bond Market

The 30-year Treasury bond yields rose 1.02% to 2.046, while the 10-year bond yields rose 3.61% to 1.574.

US Dollar Futures Index fell 0.00% to US$93.960.

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