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Satori Drills 5.8m of 47.56 g/t Gold at Tartan Lake, Manitoba – Shares Jump 16%

Satori Resources Inc. [BUD-TSXV; STRRF-OTC] reported additional results from the completed phase 1 drill program…

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This article was originally published by Resource World

Satori Resources Inc. [BUD-TSXV; STRRF-OTC] reported additional results from the completed phase 1 drill program at the 100% owned Tartan Lake property, near Flin Flon, Manitoba.

TLMZ21-11 and TLMZ21-12 both targeted the down plunge continuation of the Main zone mineralization, approximately 100 metres to the west of TLMZ21-01 (4.15 metres averaging 9.73 g/t gold) and 75 and 150 metres below the historic holes defining the resource limits.

Both holes intersected two distinct zones of mineralization. A hanging wall (HW) zone, not observed in the earlier holes, completed 100 metres to the east, associated with quartz-feldspar intrusives, and was intersected 20 to 25 metres above the quartz-carbonate-tourmaline veins defining the Main zone.

TLMZ21-12 intersected 5.80 metres averaging 47.56 g/t gold in the HW zone followed by a Main zone intercept of 1.60 metres averaging 7.25 g/t gold (Summary of Results TLMZ21-11 and 12, TLSZ21-10). The company advises that results of the standard screen metallic assays for the HW zone are pending. The company believes that it is unlikely the screen metallic results will materially affect the reported results.

TLMZ21-11 intersected 5.25 metres averaging 2.25 g/t gold in the HW zone followed by 2.10 metres averaging 8.87 g/t gold in the Main zone.

Jennifer Boyle, CEO, stated: “These latest results clearly demonstrate that additional discovery potential exists at depth along the Main Zone plunge. Over 500 drill holes have been completed at Tartan Lake. To have one hole of a small drill program intercept the second highest grade ever reported at Tartan Lake is a very encouraging result. The hanging wall mineralization intersected in hole TLMZ21-12 may represent a new zone of gold mineralization that parallels the Main Zone. The signature quartz-carbonate veining is absent in the hanging wall zone. The high-grade mineralization is associated with felsic intrusives and increased sulphide content, which is further evidence suggesting that the hanging wall mineralization could reflect a new zone of mineralization. Additional drilling to evaluate the extent of the hanging wall mineralization at depth to the west is certainly a priority for 2022. We are currently finalizing a ground based induced polarity (IP) survey of the Main, South, McFadden and Ruby Lake targets. We believe that the IP survey will identify additional, undrilled targets within the host shear zones. Our plan is to complete the IP survey in Q1-2022 and start a follow up drill program late in Q1-2022.”

The Tartan Lake Project (2,670 Ha.) is located approximately 12 km northeast of Flin Flon and includes the Tartan Lake Mine (1986-1989) which produced 36,000 ounces of gold before the mine was shut down due to, in part, the price of gold falling below US$390/oz. Remaining infrastructure includes: an indicated resource estimate of 240,000 ounces averaging 6.32 g/t gold, an all-season access road, grid connected power supply, mill, mechanical, warehouse and office buildings, tailing impoundment and a 2,100 metre decline and developed underground mining galleries to a depth of 300 metres from surface.

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Precious Metals

Oklahoma to Consider Holding Gold and Silver, Removing Income Taxes

Legislators in Oklahoma aim to protect state funds with physical gold and silver and remove capital gains taxes from gold and silver transactions  ?…

(Oklahoma City, Oklahoma — January 20, 2022) – An Oklahoma state representative introduced legislation today that would enable the State Treasurer to protect Sooner State funds from inflation and financial risk by holding physical gold and silver.

Introduced by Rep. Sean Roberts, HB 3681 would include physical gold and silver, owned directly, to the list of permissible investments that the State Treasurer can hold. Currently, Oklahoma money managers are largely relegated to investing in low-yield, dollar-denominated debt instruments.

Other than Ohio, no state is currently known to hold any precious metals, even as inflation and financial turmoil accelerate globally. Yes, Oklahoma’s own investment guidance prescribes safety of principal as a primary objective for investment of public funds.

“Currency debasement caused by federal monetary and fiscal policies has created an imminent risk of a substantial erosion in the value of Oklahoma’s investment holdings,” said Jp Cortez, policy director of the Sound Money Defense League.

“With most taxpayer funds currently held in debt paper carrying a negative real return, Oklahoma would be prudent to hedge today’s serious inflation risks with an allocation to the monetary metals.”

HB 3681 simply adds the authority to hold physical gold and silver bullion directly – and in a manner that does not assume the counterparty and default risks involved with other state holdings. Rep. Roberts’ measure does not grant authority to buy mining stocks, futures contracts, or other gold derivatives.

Additionally, HB 3681 prescribes safekeeping and storage requirements. The State Treasurer would hold the state’s bullion in a qualifying, insured, and independently audited depository, free of any encumbrances and physically segregated from other holdings.

Oklahoma has become a sound money hotspot, already earning 11th place on the 2021 Sound Money Index.

The Sooner State ended sales taxes on purchases of precious metals long ago. This week, Sen. Nathan Dahm introduced SB 1480, a measure to remove Oklahoma state income taxes from the exchange or sale of gold and silver sales.

The Sound Money Defense League and Money Metals Exchange strongly support these pro-sound money measures in Oklahoma and are actively working to ensure their success. Tennessee, MississippiKentucky, and Alabama are just a few of the other states fighting their own sound money battles in 2022.

      

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Precious Metals

Gold Uptrend Confirmed

It’s been a turbulent start to the year for the major market averages, with many sectors like Retail (XRT) and Staples (XLP) being hit by inflationary…

It’s been a turbulent start to the year for the major market averages, with many sectors like Retail (XRT) and Staples (XLP) being hit by inflationary pressures and continued supply chain headwinds while worries about rate hikes leading to a cool-down in valuations in tech. However, one asset class that is holding its ground is gold (GLD), which is up 1% year-to-date, outperforming the Nasdaq by 700 basis points. This outperformance appears more than overdue, with gold typically performing its best when real rates are deep in negative territory, in line with the current backdrop. Let’s take a closer look below:

(Source: YCharts.com, Author’s Chart)

Looking at the chart above, we can see that real rates continue to trend lower and are now sitting at their lowest levels in decades, spurred by continued high single-digit inflation readings. This backdrop has typically been very favorable for gold, given that investors are not getting interest elsewhere, meaning there is no opportunity cost to holding the metal, and there is an opportunity cost to holding cash. The one impediment to gold’s performance, though, has been the fact that the major market averages have been climbing higher with a relentless bid, allowing investors to park their cash safely in the market.

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However, since the year began, this does not appear to be the case, and gold is massively outperforming the S&P-500, as well as growth and value ETFs. This has created a perfect storm for the metal, and its outperformance can be highlighted by the above chart, which shows gold recently breaking out to new multi-week highs vs. the S&P-500. A new trend upwards following a period of significant underperformance has typically led to sustained rallies in the gold price, with the most recent example being February 2020 ($1,500/oz to $2,050/oz). Hence, this is a very positive development for the gold bulls.

The key, however, is that gold’s outperformance vs. the S&P-500 is not simply due to the S&P-500 being in a bear market and gold trending lower, but just losing less ground. The good news is that this is not the case, with the monthly chart for gold showing that it is building a massive cup and handle, with much of its handle being built above its prior resistance. This is a very bullish long-term pattern, and a successful breakout above $2,000/oz would target a move to at least $2,350/oz. 

Chart

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(Source: TC2000.com)

Meanwhile, if we look at the yearly chart above, we can see an even better look at the cup and handle pattern and why the discussion that gold is dead or in a deep downtrend is simply incorrect. While one can certainly make the case that gold has gone nowhere over the past 18 months and the daily chart remains volatile, the big picture has rarely looked better in the past several decades, and zero technical damage has been done. So, for investors looking for an asset with a favorable fundamental backdrop that’s also sporting a very attractive looking long-term chart, I am hard-pressed to find anything as attractive as gold among the 150+ ETFs and assets I track. 

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(Source: TC2000.com)

So, what’s the best course of action?

One of my favored ways to play the gold sector is Agnico Eagle Mines (AEM). The reason is that it has one of the best margin profiles sector-wide; the potential to increase production by more than 30% over the next nine years, and it operates out of the most attractive jurisdictions globally. This is evidenced by the fact that AEM should be able to grow annual gold production from ~3.4 million ounces to ~4.5 million ounces between now and 2030 and has 50% margins at a $1,800/oz gold price. 

Chart

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(Source: TC2000.com)

As the chart above shows, AEM’s technical picture continues to improve, with the stock building a 10+ year cup and handle base atop its prior multi-decade breakout level. This is a very bullish pattern, and a breakout above $70.00 would target a move above $95.00 in the next two years. So, with the stock consolidating near the right side of its cup and trading at a very attractive valuation of 1.0x P/NAV, I see this as an attractive entry point. Notably, AEM also pays a ~2.7% dividend yield, double that of the S&P-500. For those preferring to invest in gold, I continue to expect a trend of higher lows, with the $1,750/oz – $1,780/oz area representing a very low-risk buy zone. 

It’s no secret that GLD has massively underperformed other ETFs over the past 18 months, and with many focused on the last shiny thing and having recency bias, it’s no surprise that gold remains out of favor. However, the best time to buy the metal is when it’s been hated and has corrected sharply from its highs, making this an attractive entry point. Given that most other ETFs could use a rest, and the fundamental backdrop remains very favorable for gold, I remain medium-term and long-term bullish, and I would not be surprised to see gold above $2,080/oz this year. 

Disclosure: I am long GLD, AEM

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying precious metals stocks, position sizes should be limited to 5% or less of one’s portfolio.

The post Gold Uptrend Confirmed appeared first on ETF Daily News.

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Economics

Buy Sofi Technologies Stock If There’s Another Rate Hike Selloff

The Sofi Technologies (NASDAQ:SOFI) pullback, which started in November, has carried on into the new year. Since the start of 2022, SOFI stock has taken…

The Sofi Technologies (NASDAQ:SOFI) pullback, which started in November, has carried on into the new year. Since the start of 2022, SOFI stock has taken another 5% plunge, changing hands now for around $15 per share.

Source: rafapress / Shutterstock.com

What has caused this continued decline for the fintech play? The prospect of higher interest rates in 2022. The U.S. Federal Reserve plans to raise interest rates at least three times this year. Generally, higher rates mean lower valuation multiples for growth stocks.

Worse yet, another selloff caused by rate hikes could occur soon. That is, if the Fed’s response to inflation ends up happening at a faster pace, as some analysts are starting to predict. That steeper climb in interest rates will likely cause more multiple compression. But while bad for the near term, this isn’t a reason to skip out on SOFI stock entirely.

Like I’ve discussed before, further volatility caused by interest rate changes could push Sofi to a “can’t miss” entry point. Not only that, a larger increase in interest rates will bode well for the company’s underlying business. SOFI may not be a buy today, but it’s one to keep an eye on in case it takes another dive.

The Latest with SOFI Stock

With recent news suggesting the Fed would raise rates faster and sooner this year, growth plays found themselves under pressure. That resulted in another round of declines.

This factor and, to a lesser extent bearish forecasts for fintech from the sell-side, has caused the additional drop in SOFI stock. Interest rate fears could cool off again in the immediate term. For now, the market may believe it has readjusted valuations to reflect likely rate increases. However, between now and when the Fed officially raises rates in March, we may see another wave of volatility.

Why? Well, there could be more than just three interest rate increases in 2022. Even worse, the size of each increase could be greater than just 25 basis points (0.25%). Of course, that’s not to say the Fed is ready to heed outspoken billionaire Bill Ackman, who recently called for an initial 50 basis point (0.5%) jump in interest rates. Still, when it comes to upcoming rate hikes, it may be wise to expect the unexpected.

Given that inflation is at multi-decade highs, the central bank may end up taking drastic action. A big spike in interest rates could mean another round of big declines for the stocks that thrived during the pandemic’s near-zero interest rate environment.

Higher Interest Rates Have a Silver Lining

If the scenario described above plays out, SOFI stock could plunge again, even as it continues to have a very high rate of projected annual revenue growth (43.3% this year). Of course, a potential plunge to under $10 per share may appear discouraging on the onset. Many other former special purpose acquisition companies (SPACs) have fallen below their intial $10 per share price and haven’t returned to double digits. However, I wouldn’t view a move to under $10 as any sort of “game over” moment. In fact, I would view it as an opportunity.

Unlike some other SPAC deals, the underlying business here is strong. Based on Sofi’s last reported quarterly results, the fintech firm appears set to continue scaling up. Someday it could become one of the top digital-first financial supermarkets like Block (NYSE:SQ) and PayPal (NASDAQ:PYPL).

After the market absorbs interest rate changes, continued strong results will enable SOFI stock to start bouncing back. Along with this, other positive developments could help fuel it to higher prices —  including a development enhanced by higher interest rates.

The development? When Sofi obtains a bank charter. This is expected to happen sometime in 2022. Getting a bank charter is already seen as a game-changer for Sofi. But investors should also take into account how rising rates are a positive for banking profitability. Sofi’s move into more traditional lending operations could enable it to get out of the red much sooner.

Sofi Is a Buy if It Drops Again

All told, my take on Sofi Technologies is largely unchanged from past articles. In a nutshell, waiting for another pullback is the best move here. Sure, there is a risk that its current price is the bottom. Shares could bounce back and see investors missing out on the recovery.

Then again, as it appears more likely that the market will have at least one more negative reaction to rising interest rates? The opportunity to lock down a long-term position in SOFI stock at lower prices looks likely. When it comes to this name, wait for that moment before buying.

On the date of publication, Thomas Niel did not hold (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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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