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Tianrong Internet Products and Services Inc (OTCMKTS: TIPS) Reverse Merger Runner as Wilton Management Becomes New Majority Owner of the Company

Tianrong Internet Products and Services Inc (OTCMKTS: TIPS) has been running up the charts in recent days off its base under a nickel. Currently under…

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This article was originally published by Microcap Daily

Tianrong Internet Products and Services Inc (OTCMKTS: TIPS) has been running up the charts in recent days off its base under a nickel. Currently under heavy accumulation TIPS is getting noticed by some big players in small caps and quickly attracting legions of new shareholders who continues to bid the stock higher. The stock is quickly emerging as a volume leader in small caps nearing close to $1 million in dollar volume on Monday alone. With recent intra-day highs of $0.31 investors are looking for a break over for confirmation of the next leg up. 

Reverse merger (RM) plays can be more explosive than biotech’s when the incoming Company has real value but is undiscovered to investors. TIPS has not disappointed so far since recently reporting the change of control with Wilton Management Limited (“the Acquirer”), becoming new majority owner of the Company. Wilton is managing the opportunity to invest into Cambridge Orthopedic Labs (COL) as part of a £3.5m Enterprise Investment Scheme (“EIS”) eligible fundraising round, for a 38.7% stake in the business.  

Tianrong Internet Products and Services Inc (OTCMKTS: TIPS) is a clean shell, recently achieving “pink current’” status and is a perfect merger candidate operating out of Mountain home, Pennsylvania. Currently the Company has 84,672,907 shares outstanding with authorized at 200,000,000 and a total market valuation of $10 million and a float of 16,574,827. The Company was incorporated under the laws of the State of New Jersey as Metallurgical Industries, Inc. on January 28, 1959. On March 21, 1995, the Company changed its name to Bria Communications Corporation. On March 26,1999, the Company changed its name to its current name, Tianrong Internet Products and Services, Inc. 

Following the end of the quarter to 30 September 2021, the Company was notified that on 27 October 2021, Wilton Management Limited (“the Acquirer”), a Company registered in United Arab Emirates, acquired 50,000,000 Restricted Ordinary Shares of $0.01 cents each in the share capital of the Company from Tianrong Building Material Holdings Limited (“the Vendor”). Upon the transfer, the Acquirer became the majority shareholder of the Company. Wilton Management Limited, an established, independent professional firm dedicated to providing innovative and flexible wealth management solutions.  

The new majority owner of TIPS is Wilton Management Limited, an established, independent professional firm dedicated to providing innovative and flexible wealth management solutions. Founded in 1999 by CEO Tony Flanagan, our reputation is based on the quality of our technical knowledge and commitment to outstanding service levels. Each client brings with them a unique set of circumstances and requirements and every aspect of Wilton’s advice and support is designed to meet these individual needs. Wilton works in partnership with our clients and builds long-lasting relationships based on confidence, clear communication and trust – an essential combination in a complex and dynamic specialist field. 

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In mergers & acquisitions Wilton works closely with its clients preparing the business for sale, finding the right buyer and maximizing value. Wilton has a team of experts dedicated to providing specialist skills, experience and objectivity to help overcome challenges faced by businesses seeking to sell. The Company advises on when is the best time to sell your business in order to optimize value and meet the needs of key stakeholders. 

TIPS is currently funding the development and launch of an innovative new medical device which could revolutionize the treatment of broken bones is being driven by Wilton Corporate Finance Limited. Funding for the development and launch of an innovative new medical device which could revolutionize the treatment of broken bones is being driven by Wilton Corporate Finance Limited. 

Wilton is managing the opportunity to invest into Cambridge Orthopedic Labs (COL) as part of a £3.5m Enterprise Investment Scheme (“EIS”) eligible fundraising round, for a 38.7% stake in the business. COL has developed a non-invasive external fixator (“PolyArmour”) of great potential to improve patient experience and outcomes as well as being cost effective and affordable for healthcare providers when compared to traditional, invasive procedures. Led by an experienced, orthopedic specialist management team, COL has published clinical trial results which support PolyArmour’s efficacy, while management estimates PolyArmour will be able to treat around two thirds of the estimated 18 million fractures which occur globally each year. 

Senior figures at Wilton are backing the COL team. James Robson, Head of Financial Services at Wilton, explained: ‘During our discussions with the team at Cambridge Orthopedic Labs, we were impressed with the world class combination of medical and commercial orthopedic specialists and it quickly became clear to us that this was an initiative worthy of investment.’ 

Wilton Head of Corporate Finance, Paul Osbourn added that ‘while there is risk in any early-stage investment, we believe that in PolyArmour, COL has developed a product that has already demonstrated that it can improve patient outcomes and do so via a treatment that patients and healthcare providers will both in general prefer. This is why we believe COL has a real chance of making an impact on a multibillion-dollar annual global fracture treatment market.’ 

Wilton Managing Partner Tony Flanagan concluded that ‘people will always break bones and trauma patient treatments cannot be deferred. By reducing the need for invasive surgical treatments, PolyArmour can also help alleviate hospital capacity constraints. At Wilton we are happy to help innovative firms by offering them strategic and operational support. We believe investors will consider an attractive opportunity to finance at an early stage a business with tremendous potential and to help bring a valuable new product to market.’ 

For More on TIPS Subscribe Right Now!

TIPS has been running up the charts in recent days off its base under a nickel. Currently under heavy accumulation TIPS is getting noticed by some big players in small caps and quickly attracting legions of new shareholders who continues to bid the stock higher. The stock is quickly emerging as a volume leader in small caps nearing close to $1 million in dollar volume on Monday alone. With recent intra-day highs of $0.31 investors are looking for a break over for confirmation of the next leg up. Reverse merger (RM) plays can be more explosive than biotech’s when the incoming Company has real value but is undiscovered to investors. TIPS has not disappointed so far since recently reporting the change of control with Wilton Management Limited (“the Acquirer”), becoming new majority owner of the Company. Wilton is managing the opportunity to invest into Cambridge Orthopedic Labs (COL) as part of a £3.5m Enterprise Investment Scheme (“EIS”) eligible fundraising round, for a 38.7% stake in the business. We will be updating on TIPS when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with TIPS.

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Disclosure: we hold no position in INND either long or short and we have not been compensated for this article

The post Tianrong Internet Products and Services Inc (OTCMKTS: TIPS) Reverse Merger Runner as Wilton Management Becomes New Majority Owner of the Company first appeared on Micro Cap Daily.

Author: Boe Rimes

Base Metals

Discovery Silver Reports Cordero PEA with US$1.2B Post-tax NPV, 38% IRR & 2.0 Year Payback

Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) is pleased to announce…

Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) is pleased to announce results from its Preliminary Economic Assessment (“PEA” or “the Study”) on its 100%-owned Cordero silver project (“Cordero” or “the Project”) located in Chihuahua State, Mexico.

Study highlights include (all figures are in USD unless otherwise noted):

  • Excellent project economics: Base Case after-tax NPV5% of $1.2 B (C$1.5 B) and IRR of 38% (Ag – $22.00/oz, Au – $1,600/oz, Pb – $1.00/lb and Zn – $1.20/lb).
  • Exceptional silver price leverage: Upside Case after-tax NPV5% of $1.9 B (C$2.4 B) and IRR of 55% (Ag – $27.50/oz, Au – $1,880/oz, Pb – $1.10/lb and Zn – $1.45/lb based on one-year trailing 90th percentile prices).
  • Large-scale, high-margin, long mine life asset: 16-year mine life with average annual production of 26 Moz AgEq at an AISC of $12.35/oz AgEq.
  • Low capital intensity: initial development capex of $368 M; attractive NPV-to-capex ratio of 3.2x.
  • Rapid payback: post-tax payback of 2.0 years for Base Case and 1.4 years for Upside Case.
  • Technically robust study: 99% of tonnes processed in the PEA mine plan are in the Measured & Indicated category; process design and metallurgical recovery estimates are based on the Company’s comprehensive 2021 metallurgical testwork program.
  • Silver-dominant revenues: silver represents +60% of the net smelter return in the first five years of the mine life and +50% of the net smelter return over the life of mine, in-line with the senior/mid-tier silver producer group.

Taj Singh, President and CEO, states: “With annual AgEq production averaging more than 26 Moz over a +15-year mine life we believe this PEA clearly positions Cordero as a Tier 1 silver asset. This impressive scale of production is achieved through modest development capex of $368 M and returns excellent margins with AISC averaging less than $12.50/AgEq oz over the life of the mine. These costs highlight the benefits of existing local infrastructure, excellent metallurgy, and a straight-forward open pit mine with excellent grades and a low strip ratio.

“Importantly, the outstanding metrics demonstrated in the PEA are supported by a mine plan with more than 99% of tonnes in the Measured and Indicated category, and a simple and conventional process design based on our detailed metallurgical testwork program completed earlier this year. This provides us with a huge head start as we look ahead to the delivery of a Prefeasibility Study on Cordero in 2022.

PEA SUMMARY:

Study support:

  • The Study is based on the updated Mineral Resource Estimate (“Resource”) press released on October 20, 2021 (see Appendices for Resource details), and the Company’s comprehensive metallurgical testwork program described in our press release dated September 7, 2021.
  • The PEA project team was led by Ausenco Engineering Canada Inc. (“Ausenco”), an industry leader in cost-effective design and construction. Ausenco was supported by AGP Mining Consultants Inc. (“AGP”) and Knight Piésold and Co. (USA) (“Knight Piésold”).

Project Economics:

Sensitivity of the Project’s expected after-tax NPV, IRR and payback at different commodity price assumptions is outlined in the table below:

  • Base Case price assumptions: Ag = $22.00/oz, Au = $1,600/oz, Pb = $1.00/lb, Zn = $1.20/lb
  • Upside Case price assumptions: Ag = $27.50/oz, Au = $1,880/oz, Pb = $1.10/lb, Zn = $1.45/lb based on one-year trailing 90th percentile prices

After-Tax Free Cash Flow:

Production & Costs:

Annual production over the LOM is expected to average 26 Moz AgEq with production averaging over 33 Moz AgEq when fully ramped up (Years 5 – 12); this positions Cordero as one of the largest silver mines globally.

LOM Production & AISC:

Note – Au/Pb/Zn production is shown on an AgEq basis based on: Ag = $22/oz, Au = $1,600/oz, Pb = $1.00/lb and Zn = $1.20/lb

OPERATIONS:

Mining:

The mine plan incorporates accelerated stripping as well as stockpiling of low-grade material in order to optimize the grade profile over the LOM.

  • The mine plan was completed by AGP and is based on a detailed mine design that incorporates mining dilution, safety berms and haul roads.
  • Mining rates over the life of the mine are relatively steady at 60 to 70 Mtpa.
  • The ultimate pit contains 719 Mt in total consisting of 228 Mt of mill feed and 491 Mt of waste for an average strip ratio of 2.2:1. The strip ratio is relatively even over the LOM.
  • Pit slope designs were based on an assessment by Knight Piésold that was supported by two geotechnical coreholes in the North Corridor and logging of core from two exploration coreholes in the South Corridor.

Processing:

Processing was broken into two phases to optimize the capital efficiency of the project.

  • Phase 1 throughput (Year -1 to Year 4)
  • Oxides: mined during the preproduction period and are crushed through the Phase 1 crushing plant and stacked on the heap leach from Year -1 to Year 3 at a throughput rate of 5 Mtpa. After Year 3 the Phase 1 crushing plant is dedicated to processing higher-value sulphide material with remaining oxide material processed as uncrushed ‘run-of-mine’ (“ROM”) material via heap leaching.
  • Sulphides: crushing, grinding and flotation circuit is constructed in Year -1 and processing occurs at a nameplate rate of 7.2 Mtpa from Year 1 to Year 4. During this period the mine plan focuses on high-grade material from the Pozo de Plata zone.
  • Phase 2 throughput (Year 5+)
  • Sulphides: two identical crushing, grinding and flotation circuits from Y5 onwards with total throughput of 14.4 Mtpa

  • Process design
  • Oxides: three-stage crushing (targeted crush size of 8 mm), agglomeration, heap leaching and refining in Year -1 to Year 3 and ROM dump leaching and refining in Year 4 to Year 6 to produce Ag-Au doré bars
  • Sulphides: three-stage crushing, grinding (targeted grind size of 200 micron) and flotation to produce Pb and Zn concentrates

Head grades:

The mine plan focuses on feeding higher grades to the mill earlier in the mine life:

  • Year 1 – 4: processing of higher-grade oxide material from the South Corridor and sulphide material predominantly from the Pozo de Plata zone
  • Year 5 – 12: processing of higher-grade sulphides from the NE Extension and the South Corridor

Year 13 – 16: processing of lower-grade material stockpiled during Year 1 to Year 12

Note – Phase 1 and LOM Oxide tonnes/grades include tonnes processed on the heap leach in Year -1

Recoveries:

  • Oxides: recoveries were based on coarse bottle roll tests and preliminary results from column leach tests completed in 2021. Recoveries average 56% for Ag and 63% for Au for crushed feed and 36% for Ag and 35% for Au for uncrushed ROM feed.
  • Sulphides: recoveries were based on the 2021 metallurgical test program which included lock-cycle tests and examined metal recoveries to the silver-lead concentrate and the silver-zinc concentrate at varying head grades for each of the major geological rock types at Cordero. Metal recoveries to the two concentrates are summarized below:

Tailings Management Facility (TMF):

  • The TMF design was completed by Knight Piésold and is based on a conventional thickened tailings dam facility of downstream construction type.
  • The TMF is located directly west of the open pit. The design incorporates five dam lifts over the LOM.
  • Total capacity of the TMF is 179M m3 (252 Mt); this is significantly greater than the estimated volume requirement of 142M m3 based on the PEA mine plan.
  • An evaluation of using a dry-stacked tailings facility will be completed as part of pre-feasibility work.

CONCENTRATE TERMS:

Metal Payable:

  • Cordero is expected to produce clean, highly saleable concentrates with minimal penalty elements as established in the 2021 metallurgical test program.
  • Industry standard payables and deductions were applied to the Pb and Zn concentrates as per the table below. A metallurgical balance summary is included in the Appendices.
  • Approximately 85% of the Ag reports to the Pb concentrate where higher payabilities are received.

Treatment/Refining Charges:

  • Treatment and refining charges were based on a review of spot and recent benchmark pricing and are summarized as follows:

Concentrate Transportation:

  • Transportation costs assume trucking of the concentrate via containers to the international port at Guaymas, Sonora, and then shipping via ocean freight to Asia.
  • Estimated transportation costs (trucking, port handling and ocean freight) are $128/wmt for Pb concentrate and $116/wmt for Zn concentrate.

CAPITAL EXPENDITURES:

Initial Capital (for parallel processing of crushed oxides and sulphides)

  • Year -2: construction of on-site infrastructure, power line and the heap leach circuit with capacity of 5 Mtpa to process oxide/transition material (includes a three-stage oxide crushing circuit, heap leach pad/ponds and Merrill Crowe plant).
  • Year -1: first sulphide circuit with a capacity of 7.2 Mtpa (includes sulphide crushing circuit, ball mill and flotation plant) and construction of the TMF including the initial dam lift.

Expansion Capital (to expand plant to 14.4 Mtpa sulphides only)

  • Year 3: addition of second sulphide circuit to expand processing rate to 14.4 Mtpa by the addition of a ball mill and flotation circuit creating two parallel sulphide circuits. The crushing circuit previously used for oxides will be dedicated to sulphides from Year 4 onwards and will not require repurposing.
  • Year 8: expand flotation circuit with additional flotation cells, cyclones, filters and thickeners to accommodate the higher zinc grades from Year 9 to Year 11.

Sustaining Capital

  • TMF: the tailings dam will be completed in five lifts over the LOM at a total capital cost of $110 M ($15 M initial capex plus $95 M of sustaining capex).
  • Other: additional sustaining capex totals $113 M over the LOM and includes sustaining capital for the process plant and mobile equipment and replacements/refurbishments of infrastructure assets.

OPERATING COST ASSUMPTIONS:

Mining:

  • Mining is assumed to be completed by contract mining; estimated mining costs were based on contractor quotes for Cordero received by AGP

Processing and G&A Costs:

  • Processing costs for the heap leach and mill/flotation, and G&A costs were developed by Ausenco from first principles.
  • Sulphide processing costs benefit from a conventional flotation process design and low power costs. The targeted coarse grind size of 200 micron alleviates the need for a SAG mill.
  • G&A costs estimates are based on a small camp and administration office at site. The majority of the work force will be Mexican nationals commuting daily from the local town of Parral. Parral is 25 km south of Cordero and has a population of approximately 100,000. It is the regional government centre in the southern part of Chihuahua State and has a well-established service industry that supports numerous local mining operations.

OPPORTUNITIES:

Work completed during the preparation of the PEA outlined a number of opportunities that have the potential to improve the economic and ESG performance of the project:

  • Mine life extension: there are over 300 Mt of Sulphide Resource that sit outside the PEA design pit but within the Resource pit shell. These resources as summarized below have the potential to extend the mine life and/or increase production levels at higher commodity prices.
Note – the full Resource is provided in the Appendix; further details can be found in the Company’s October 21, 2021, press release.
  • Coarser grind size: metallurgical test work suggests higher recoveries may be achieved at coarse grind sizes (greater than the 200 micron used in the PEA). An evaluation of coarse particle flotation will be completed as part of the 2022 Prefeasibility Study (“PFS”). Coarse particle flotation has the potential to further reduce operating costs and water consumption.
  • Dry stack tailings: an evaluation of using dry stacked tailings to improve ESG performance will be completed as part of the PFS.

TECHNICAL DISCLOSURE:

APPENDIX:

The full release and accompanying appendix with the following supporting information can be found on the Company’s website at https://discoverysilver.com/news/2021/.

Appendix A – Mineral Resource Estimate

Appendix B – After-Tax NPV/IRR/Payback Sensitivities

Appendix C – Pit Optimisation Parameters

Appendix D – LOM Mine Plan Summary

Appendix E – LOM Process Throughput Summary

Appendix F – Simplified Process Flowsheets

Appendix G – Metallurgical Balance Summary

Appendix H – Long Sections / Cross Sections

Appendix I – Site Layout

Appendix J – LOM Production & Cash Flow Schedule

About Discovery:

Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver deposits. The PEA completed in November 2021 demonstrates that Cordero has the potential to be developed into a highly capital efficient mine that offers the combination of margin, size and scaleability.  Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. Continued exploration and project development at Cordero is supported by an industry leading balance sheet with cash of over C$75 million. Discovery was a recipient of the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.

On Behalf of the Board of Directors,

Taj Singh, M.Eng, P.Eng, CPA,

President, Chief Executive Officer and Director

For further information contact:

Forbes Gemmell, CFA

VP Corporate Development & Investor Relations

Phone: 416-613-9410
Email: [email protected]
Website: www.discoverysilver.com

Qualified Person

The PEA for the Company’s Cordero project as summarized in this release was completed by Ausenco with support from by AGP and Knight Piésold. A full technical report supporting the PEA will be prepared in accordance with NI 43-101 and will be filed on SEDAR within 45 days of this press release. The scientific and technical content of this press release was reviewed and approved by Taj Singh, P Eng., President & CEO, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

 

FORWARD-LOOKING STATEMENTS:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not for distribution to United States newswire services or for dissemination in the United States.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Cautionary Note Regarding Forward-Looking Statements

This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.







Author: Resource World

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7 Stocks to Buy to Hedge Against Rising Oil Prices

Following the initial intrusion of the novel coronavirus pandemic and its resultant mitigation measures, most people looked forward to the time when the…

Following the initial intrusion of the novel coronavirus pandemic and its resultant mitigation measures, most people looked forward to the time when the crisis would become a chapter in a history book. While the SARS-CoV-2 virus remains a stubborn uninvited houseguest, it seems the worst of it is behind us. But that has created its own consequences, necessitating a deeper look at specific stocks to buy.

Primarily, as the vaccination rollout inspired a gradual relaxing of Covid-19 protocols, people stormed out of the home as retail revenge, or the desire to make up for lost time through aggressive purchases, took hold. Unfortunately, this also created a demand bottleneck as the sudden surge in consumer activity met an energy supply chain that was unable to address everyone’s needs. Thus, inflation-resistant stocks to buy soared in the process.

Even worse for those hoping for prices to cool down, it’s not entirely clear when underlying circumstances will normalize. For instance, facing incredible economic pressure and a low job approval rating, the Biden administration and five other nations recently “announced a coordinated effort to tap into their national oil stockpiles.” Hopefully, the measure will provide some relief. Or you can hedge energy costs with certain stocks to buy.

Honestly, it might be a conducive idea to consider a direct approach rather than to depend on government intervention to control rising oil prices. For one thing, tapping into the national stockpile is largely a one-off event. If broader pressures continue to mount, we don’t want to exhaust the reserves since they also carry foreign policy and national security implications. Therefore, hedging strategies with stocks to buy sounds more appealing.

Also, increased energy costs represent a global challenge. Indeed, what may be a positive action for one set of nations could be a detriment to another set. Further, Covid-19 spikes could create sharp ebbs and flows of demand and supply, posing more pricing issues. Again, investors may be better off actively hedging against the wild energy market with these stocks to buy.

  • Murphy USA (NYSE:MUSA)
  • Transocean (NYSE:RIG)
  • Franco-Nevada Corp (NYSE:FNV)
  • Peabody Energy (NYSE:BTU)
  • Southern Copper (NYSE:SCCO)
  • Archer Daniels Midland (NYSE:ADM)
  • Robinhood Markets (NASDAQ:HOOD)

Finally, another factor to consider is the winter season. Experts predict an unusually cold winter, not just in the U.S. but also in Europe. That could spike up demand for heating oil, which may impact the energy market broadly. Once again, hedging with stocks to buy seems an appropriate idea.

Stocks to Buy: Murphy USA (MUSA)

Murphy USA gas station and convenience store located on an out parcel of a Walmart SupercenterSource: Lawrence Glass / Shutterstock.com

Some stocks to buy like Murphy USA don’t require a convoluted thesis to appreciate. Instead, shares have soared under the simple axiom, if you can’t beat ‘em, join ‘em. With so many drivers feeling the pinch whenever they pull up to the gasoline station, the initial temptation is to rage at how the operators are gouging the public.

Once cooled off, however, buying shares of publicly traded retail gas stations seems an awfully enticing idea. Sure enough, MUSA stock has been one of the stronger performers, gaining over 44% on a year-to-date basis heading into the final session before Thanksgiving.

Admittedly, as I’ve mentioned in prior InvestorPlace articles, I’m not the biggest fan of buying into robust strength. Over the last six months, MUSA gained 36.5%, which is an unusually strong performance for the equity unit. Then again, it’s an unprecedented time in the world.

As well, I’m hesitant about declaring that oil prices will fall. People said that about used cars but their pricing has been incredibly resilient. Therefore, it might make sense to consider MUSA as one of your hedging stocks to buy.

Transocean (RIG)

oil rigs on water, representing high-risk stocks like RIGSource: Shutterstock.com

To say that Transocean has seen better days would be an almost criminal understatement. Prior to the 2008 financial meltdown and the ensuing Great Recession, shares of the offshore driller — one of the world’s largest — commanded a very healthy three-digit price tag. Today, RIG trades hands in single-digit territory and a low one at that.

Nevertheless, on a percentage basis, Transocean has represented one of the best stocks to buy over the trailing year, where RIG has gained over 60%. On a YTD basis, the performance is still quite respectable at nearly 41% up.

To be fair, at a price tag of a few cents over $3, RIG is speculative. Frankly, in any other circumstance, I probably wouldn’t mention the company (nor the underlying industry for the matter). However, times have changed and Transocean could benefit from favorable currents.

True, the trailing-12-month (TTM) revenue performance leaves much to be desired. However, an influx of issues ranging from colder weather to critical commodity crunches in various parts of the globe may help drive up oil prices, making RIG one of the speculative stocks to buy.

Stocks to Buy: Franco-Nevada Corp (FNV)

precious metals stocks Close up lump of gold mine on wooden tableSource: Shutterstock

While mining firms exposed to precious metals may be an obvious play to combat energy price inflation, that doesn’t necessarily condemn the idea to ineffectiveness. Look, we’re in a market environment where retail investors flooded into cryptocurrencies to hedge against the devaluation of the dollar. Frankly, precious commodities — you know, the stuff you can hold in your hands — present a more palatable investment thesis regarding inflation protection.

While you could put your money into physical bullion, for those that want to stay in the equities market, you can instead look at companies like Franco-Nevada Corp. What I like about FNV is that it’s a diversified royalty and streaming firm. In a nutshell, the corporation provides funding to metals producers and in return, get a cut of the proceeds, either through a percentage of revenue (royalty) or actual metals (streaming).

In this manner, FNV is less exposed to the wildness and vagaries of the precious metal mining business. As well, the company’s cash flow is more predictable since the royalty or streaming terms are spelled out ahead of time.

If you’re for a solid mixture of profitability and stability in your inflation-hedging stocks to buy, FNV fits the bill.

Peabody Energy (BTU)

A man holds coal in his hands over a pile of more coalSource: Shutterstock

Easily the riskiest company on this list of stocks to buy, there’s a chance that Peabody Energy could drop lower. So, I’m going to need you to do yourself a favor. Only invest a small portion of your speculation funds in BTU.

But then, why am I mentioning Peabody, which is the largest private-sector coal company in the world? After all, coal is a rather anachronistic commodity in light of various energy sources that we use today. Also, former President Trump attempted to make coal great again. I’m going to give credit to the man, he’s incredibly charismatic. But even his dynamic personality couldn’t breathe life into the coal market.

Well, it turns out that coal is a catalyst for rising oil prices throughout the world. According to the Wall Street Journal, a coal shortage that imposed an energy crisis in China is “rippling beyond its borders, threatening to disrupt supply chains and farming in countries that rely on its exports of a chemical used in fertilizer and diesel exhaust systems.”

Additionally, the shortage is also driving up demand for hydrocarbons, particularly with the anticipated winter freeze. Thus, BTU could see another leg higher.

Stocks to Buy: Southern Copper (SCCO)

Piece of copper set against black backgroundSource: Coldmoon Photoproject/Shutterstock.com

Since prices of almost anything of value are going up, Southern Copper — a mining firm that specializes in the namesake commodity — represents one of the most viable stocks to buy under the present inflationary environment. In fact, several areas across the U.S. have reported thieves stealing copper, causing great inconveniences to their associated communities.

While it’s not the most encouraging thought, copper vandalism will probably increase over the years. That’s because the metal is an important component of advanced technologies, such as electric vehicles. Further, the wind and solar energy industries account for about 60% of copper demand. Since modern society is in no hurry to reverse the sustainability trend, the price of copper seems to have an inevitable direction — up.

Also, should lofty gasoline prices become a permanent fixture, consumers will likely purchase more EVs. In turn, that would drive up copper demand, along with other critical materials. Thus, on a longer-term basis, SCCO is one of the best stocks to buy if you can’t stand the pain at the pump.

Archer Daniels Midland (ADM)

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

As a food-processing company, Archer Daniels Midland arguably offers a case for stocks to buy whether you’re talking about an inflationary environment or a deflationary one. Although humankind has developed incredible technologies (especially in recent years), we still need the basics. Therefore, ADM has a permanent relevance that relatively few companies can touch.

It’s not just pretty words either. In the first three quarters of this year, Archer Daniels Midland has already generated $62.2 billion in revenue. This tally puts it only 3.4% below that of the full year’s sales result for 2020. It also means that ADM only needs a very modest performance in the fourth quarter to produce a blistering performance compared to what we’ve seen over the past 6 years.

Better yet, Archer Daniels is aligning its business with contemporary consumer trends. For instance, plant-based meat has become very popular, especially during the food supply chain crisis of 2020. Moreover, the Covid-19 pandemic exposed the cruel treatment of animals raised for protein. This might convince more people to take the plant-based plunge, which should bolster ADM stock.

Stocks to Buy: Robinhood Markets (HOOD)

A magnifying glass zooms in on the website for Robinhood (HOOD).Source: dennizn / Shutterstock.com

This is going to be a strange idea so bear with me for a second. Back when the pandemic first sent worker bees to their living rooms, millions of Americans found themselves with extra time on their hands. Rather than sitting in a car stuck in traffic, quite a few turned their hand to the equities market, forcing the WSJ to opine that everyone’s a day trader now.

Since the great pivot to the investment sector, many people received a real-world education about high finance. Out of nowhere, people are paying significant attention to the market, consulting with others on social media about which stocks to buy to hedge against the latest threat, this time being inflation.

Obviously, the platform undergirding Robinhood Markets has dominated the news cycle for its gamified interface and legions of young traders. Thus, in a way, Robinhood may be the best place to park your money if you fear a loss of purchasing power.

That’s because a large demographic will facilitate their hedging activities via the online broker. By having equity in HOOD, you’re not betting on the outcome but rather selling tickets to the game.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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Author: Josh Enomoto

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Hot Gold Stocks To Add To Your Watchlist In December 2021

Trading gold stocks next month? Check these three out Recently, gold stocks…
The post Hot Gold Stocks To Add To Your Watchlist In December 2021 appeared…

Trading gold stocks next month? Check these three out

Recently, gold stocks have been some of the most fascinating assets to keep an eye on in the market. Fears of inflation and an increase in pandemic infections as a result of new virus variants have caused a lot of volatility in gold. The new Omicron variant of the virus has created a new level of volatility as not many know about its attributes yet. Because of the unique position that gold plays in the economy, no matter what sort of trader you are, there are always several possibilities to earn in the gold market.

Gold, being one of the oldest forms of currency, has cemented its position in the financial world. As a result, the gold market attracts a wide range of investors. There are several methods to invest in gold, including actual gold, options, futures, and stocks. Today, though, we will just look at gold stocks.

In the past, you’ve seen how news may affect the price of gold stocks. This was especially true in 2020, a year with more news than ever before. Mining resources increased to unprecedented levels as a result of the epidemic. For example, the price of gold surpassed $2,000, setting a new high for the precious metal. Keeping up with global news, corporate news, and industry news may all be beneficial when investing in gold stocks.

Top Gold Stocks To Watch

Harmony Gold Mining Company Limited (NYSE: HMY)

On November 29th, Harmony Gold Mining Company Limited had a 4.66 percent boost in its stock price. In South Africa and Papua New Guinea, this company looks for, extracts, and processes gold. The company also looks for silver, copper, and uranium in addition to gold. In South Africa, Harmony operates nine subsurface operations and many surface treatment activities.

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The company’s earnings and revenues increased year over year in fiscal year 2021. This occurred as a result of rising metal costs and the company’s rapid growth. Given that Harmony hasn’t issued any updates in quite some time, it’ll be interesting to see what they have in store for their shareholders before the year is through.

HMY’s stock price moves up and down in tandem with the price of gold. As a result, when gold prices rise sharply, HMY stock often follows suit. When gold, on the other hand, falls sharply, the HMY stock normally falls with it. Harmony is, of course, influenced by its own performance. Higher volumes are common when the firm provides quarterly results and mine updates. Noting this info, will HMY be on your list of gold stocks to watch in December?

Royal Gold Inc. (NASDAQ: RGLD)

Royal Gold Inc. is a gold stock based on royalties and metal streams that it purchases and administers. This is done for stream or royalty interests by the corporation. Gold, silver, copper, zinc, nickel, lead, and cobalt are Royal Gold’s target minerals. Currently, the corporation operates 189 sites across five continents. Royal Gold manages 41 mines and 17 projects in various stages of development.

On November 16th, the company announced its 21st consecutive annual increase in its common stock dividend to $1.40 per share for 2022. This was in total a 17% increase over 2021’s dividend. 2021’s dividend price was at $1.20 per share. The first quarterly dividend at this increased rate is payable on January 21st, 2022, to shareholders on record as of January 7th, 2020 at the close.

The CEO and President of the company, Bill Heissenbuttel said, “Paying a growing and sustainable dividend is a core strategic objective for Royal Gold. Recent record revenue from strong portfolio performance combined with further revenue growth from our newest producing assets give us confidence in the outlook for our business.” The company has paid $680 million in dividends since 2000. Noting this new update, will RGLD make your gold stock watchlist?

Hecla Mining Company (NYSE: HL)

Hecla Mining Corp. buys, finds, develops, and manufactures precious and base metal assets. It sells raw gold and silver bullion bars, as well as lead, zinc, and bulk concentrates. The corporation holds a 100 percent stake in the Greens Creek, Lucky Friday, Casa Berardi, and San Sebastian mines. It also has a stake in a number of other assets throughout North America.

On November 4th, released its third-quarter 2021 results. Hecla reported $193.6 million in revenue this quarter, which was the same as the previous quarter. It also earned $42.7 million in cash from operating activities and $26.9 million in asset additions. Hecla announced a quarterly exploration spend of $13.7 million, a record.

President and CEO of Hecla, Phillips S. Baker Jr. said, “This operational performance allowed us to enhance our silver-linked dividend for the second time this year and return about 20% of our free cash flow to shareholders while having our largest exploration program in the company’s history.” HL stock is up 0.36% on November 29th. Noting this info, will HL stock be on your watchlist as we move into December?

Best Gold Stocks For Your Watchlist?

Choosing which mining stocks and gold assets to invest in might be difficult. Developing an investing strategy is an effective way to mitigate some of the risks. When investing, keeping up with the latest news, whether it’s company-specific, global, or sector-specific, is quite useful. Examining charts, volume, and other statistics might be useful as well. So, which gold mining stocks will you be watching before the end of 2021?

The post Hot Gold Stocks To Add To Your Watchlist In December 2021 appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.








Author: Jon Phillip

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