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Elon Musk Confirms His Tax-Related-Selling Sparked This Week’s Big TSLA Tumble

Elon Musk Confirms His Tax-Related-Selling Sparked This Week’s Big TSLA Tumble

Having somewhat hinted at his actions over the weekend – given…

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This article was originally published by Zero Hedge

Elon Musk Confirms His Tax-Related-Selling Sparked This Week’s Big TSLA Tumble

Having somewhat hinted at his actions over the weekend – given the tweet poll’s comments:

“much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock.”

And almost 58% of the 3.5 million votes were cast in favor of a sale.

It is now clear that Elon Musk was indeed selling (though not 10% of his holdings) and was thus responsible for Tesla’s big tumble early this week after exercising his options and dumping some of the shares to cover his tax liability.

In fact, on Monday, Musk exercised his options which were struck at the extraordinarily low price of $6.24, receiving 2,154,572 shares

The last time TSLA traded at $6.24 was Nov 2012…

He then sold a large number of them to cover his tax liability.

As per the Form 4:

“The shares of common stock were sold solely to satisfy the reporting person’s tax withholding obligations related to the exercise of stock options to purchase 2,154,572 shares”

And as the following table shows, Musk was left with 1,220,481 shares from that options exercise.

Therefore he sold 934,081 shares (or 43.4% of the exercised options) – or around $1.1 billion.

Given the price levels from Form 4, the following chart shows when the sells were made. Thanks perhaps to the magic of ‘gamma’ manipulation, TSLA shares exploded higher during the first hour of trading as Musk’s 934k shares were dumped on ‘diamond hands’…

and in the end, the selling pressure took TSLA stock down 16% in two days (one has to wonder just who or what was holding the stock up all day on Monday, only to let it all come crashing down on Tuesday after the sale was complete)…

It’s the billionaire’s first sale since 2016, when he last exercised stock options and liquidated some of his newly acquired shares to cover about $590 million of income taxes.

However, there is one awkward thing. It appears the whole premise of the poll was a lie since Musk has pre-arranged this sale on September 14th:

“AUTOMATICALLY EFFECTED PURSUANT TO A RULE 10B5-1 TRADING PLAN PREVIOUSLY ADOPTED ON SEPTEMBER 14, 2021”

The problem that TSLA shareholders have is two-fold – if a 934k lot sparks such a significant drop in the stock… and Musk has 170 million shares left…

What happens every year when Elizabeth Warren’s wealth tax comes due?

Tyler Durden
Wed, 11/10/2021 – 19:09

Author: Tyler Durden

Precious Metals

New Found Gold Neighbor Canstar Resources Might Be Sitting on Canada’s Next Big Gold Discovery

Canstar Resources (TSXV: ROX) might have discovered the biggest gold deposit in Canada’s hottest mining province, Newfoundland…

Canstar Resources (TSXV: ROX) might have discovered the biggest gold deposit in Canada’s hottest mining province, Newfoundland. The small-cap junior gold miner is currently drilling in a region that turns out to sit alongside the same tectonic boundary as another recently discovered billion-dollar gold project.

While many new gold discoveries have emerged in recent years, few have remained surprisingly unnoticed by the broader mining community. One of which is the flagship gold project of Canstar Resources, Golden Baie. In some samples, early testing has seen gold concentrations as staggeringly high as 4,485 g/t.

Despite this, Canstar Resources is still operating under the radar at the moment. However, given the other billion-dollar gold projects located nearby in the province, it’s only a matter of time before it starts gaining a lot more attention from the mining community.

Is Newfoundland the New ‘El Dorado’ for Canadian Gold Miners?

In recent years, Newfoundland has emerged as one of the most exciting areas for gold discoveries. Millions of years of tectonic activity created geological conditions ripe for high-grade gold mineralization. 

However, the area has remained largely unexplored. Whether due to a lack of technology or technical knowledge, past prospectors dismissed what would later turn out to be multiple, massive gold deposits all along the province.

There are a few notable examples, but one of the most recent was the Queensway project, a 1,510km area owned by New Found Gold. This was a company that went it went public back in September 2020 at just $1.4 per share. 

Thanks to the excitement surrounding the Queensway project, shares quickly surged to over $10 earlier this year, with the company boasting a $1.2 billion valuation.

However, by the time most investors heard about New Found Gold and its gold project, shares had already shot up substantially. For those who felt like they missed the train on Newfound Gold, the good news is that history might be repeating itself, but this time with Canstar Resources.

New Found’s Queensway project and Canstar’s Golden Baie are frequently compared side by side. Not only are both just a couple of hours drive away from each other, but both happen to be located on the same tectonic boundary. In layman’s terms, multiple deposits are likelier to be found on a tectonic boundary due to how plates shift over thousands and millions of years.

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So far, Golden Baie is currently at an earlier stage of exploration than Queensway, which does mean it’s still a bit more of a speculative risk. However, analysis on the Golden Baie project shows that, based on surface-level gold concentrations, there’s likely a deep-seated gold system with multiple big deposits ripe for the picking. 

What’s more, these early results have shown similar grades of gold as the Queensway project, which single-handedly transformed New Found Gold from a penny stock into a billion-dollar gold miner.

How Big is Canstar Resource’s Golden Baie Discovery?

At 622 square km, Golden Baie isn’t the largest project by surface area. However, over 95% of the total site remains completely unexplored.

Initial exploration attempts took place in the earlier 1980s and continued for almost 27 years, with geologists finding little at the time besides small gold deposits. It’s a common story with most Newfoundland gold discoveries, as many were initially passed over before their true potential was rediscovered.

It was only until 2019 that prospectors realized Golden Baie was likely sitting on top of a tremendous gold deposit. Some recent samples have shown incredibly high gold grades, including some rock pulp samples having as much as 4,485 g/t of gold. But even more down-to-earth results are impressive, such as over 289.3 g/t of gold at the Skidder site. 

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As for how large the Golden Baie gold deposit could be, that’s still to be determined. However, when you look at other nearby gold discoveries, even the most conservative estimates could make Canstar a fortungi

The smallest of nearby discoveries is owned by Anaconda Mining, whose Point Rousse project, located on the northern end of Newfoundland, contains over 119,000 ounces of gold. Marathon Gold has a closer deposit called the Valentine Lake project. These reserves are estimated at being over 3.1 million ounces of gold, the high end of what’s been found in Newfoundland.

Two other big projects include Matador Mining’s Cape Ray project, with 526,000 ounces of gold, and First Mining Gold‘s Hope brook project, with around 844,000 ounces. 

Given that all of these discoveries are within a couple of hundred kilometers of the Golden Baie project, we think the odds are that we’ll see similar results when further drilling data comes in. A rough estimate of between 500,000 and a million ounces of gold seems realistic, although it’s possible Golden Baie is even larger than that.

To put that into perspective, one million ounces of gold, at current spot prices, is just under $1.8 billion in mineable reserves. In contrast, Canstar Resources is worth just $25.3 million at the moment. 

Just like how the Queensway project catapulted Newfound Gold into a billion-dollar stock, so could Golden Baie transform Canstar Resources into a billion-dollar mining company, or around 40 times higher than its current market capitalization.

Some of the world’s top mining analysts agree. Billionaire mining investor Eric Sprott, one of Newfound Gold’s biggest backers, also owns a 32% stake in Canstar Resources. While not every junior mining pick from Sprott turns into a billion-dollar success story, the odds are looking pretty good that Canstar might just be one of them.

What Should Investors Expect from Canstar Resources in 2022?

Given how undervalued and ignored Canstar Resources is at the moment, it’s a prime candidate for investors looking for a mining stock with exponential growth potential. The key, however, is to buy in before the market catches wind of it. 

In other words, early investors looking for triple-digit gains should stock up on shares before further news about Golden Baie gets announced. The company is in the process of raising an extra $6 million to finance further drilling after releasing early drilling results in early November. Results were largely encouraging, suggesting that further, potentially larger gold deposits remain to be discovered. 

Canstar has been focusing primarily on an 8km strike length, which is still just a small portion of the expected 95km gold corridor that’s at the heart of the Golden Baie property. 

It’s also worth noting that, besides its flagship gold project, Canstar Resources also has a couple of other operations. This includes the Buchans-Mary March project, another Newfoundland site, which has historically ranked as some of the world’s highest grade volcanogenic massive sulfide (VMS) deposits. VMS deposits are one of the richest sources of copper, lead, and zinc, but the Buchans-Mary March project has found gold and silver as well as those other metals.

While Canstar’s other projects remain promising, its main catalyst for future price growth is still big gold project. Investors should expect more drilling results in 2022, news that could quickly transform Canstar into a nine-or-ten-figure valuation for lucky investors.

 

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Author: NXT_mine

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Energy & Critical Metals

NEO Lithium’s Closest Neighbor Gets Ready to Drill

If you believe in the old adage, “the best place to find a deposit is near an existing one,” you should consider Portofino Resources (TSX-V: POR)…

lithium_triangle_portofino_resource

When Neo Lithium started early stage exploration they recovered surface lithium grades of 190 mg/L compared to 373 mg/L for Portofino Resources adjacent Yergo property.

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If you believe in the old adage, “the best place to find a deposit is near an existing one,” you should consider Portofino Resources (TSX-V: POR). This Vancouver-based company holds an option to acquire a 100% interest in the Yergo lithium brine project located in Argentina, in the heart of the Lithium Triangle, along with the Allison Lake North lithium and rare elements property. Portofino also owns five gold projects in Canada, and is overseen by an exceptional management team with deep experience in the resources industry.

One of the reasons that all eyes are on the Yergo project is the growing demand for lithium to support the green revolution. As one of the world’s lightest metals, lithium is playing one of the largest roles in our green and clean future. Demand is predicted to increase seven times over the next 10 years, reaching a total global demand of 1.79 million metric tons. Furthermore, for every 1% surge in battery electric vehicle (BEV) market penetration, the world’s need for lithium will rise by an estimated 70,000 tonnes per year. 

This has industry experts asking – where will the supply come from?

Sharing a similar geological history with a world class asset

Argentina, Chile, and Bolivia comprise what is known as the Lithium Triangle, and these countries host a whopping 75% of the world’s lithium resources. Portofino’s Yergo project is a salar located approximately 15 kilometres southeast of Neo Lithium’s 3Q project – one of the largest and highest-grade lithium brine deposits in the world. It was initially discovered in late 2015 and took only five years to advance to the construction phase. In October of this year, Neo Lithium announced it had received an all cash, takeover offer of $960 million for all its outstanding equity from Zijin Mining.