Insider Legacy Secret
Category

Investing

Category
In Investing

West High Yield (W.H.Y.) Resources Ltd. Announces Amended Permit Submission

No Comments

West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (the ‘Company‘ or ‘West High Yield’) is pleased to announce that, further to its news release dated August 29, 2024, the Company had a productive forward-focused meeting with the British Columbia Ministry of Energy, Mines and Low Carbon Innovation (the ‘EMLI’) on September 4, 2024 (the ‘EMLI Meeting’). During this meeting, the Company outlined its revised permit application (the ‘Amended Application’) for carrying out the extraction and production of critical minerals (the ‘RRIMM Project’) at its Record Ridge Industrial Mineral Mine (the ‘RRIMM’), which included a reduction in the proposed tonnage output to fall under the threshold set by the British Columbia Environmental Assessment Office (‘EAO’) for reviewable projects for Mineral mines.

The Company is also pleased to report that its consultants acted expeditiously and submitted the Amended Application to EMLI on September 17, 2024. In addition, fulsome responses to all previous comments from the British Columbia Mine Development Review Committee (‘MDRC’) had already been satisfactorily submitted.

During the EMLI Meeting, the Company outlined its updated approach, which involves reducing the RRIMM Project’s annual tonnage to 63,500 metric tonnes to remain below 15% of the 75,000 metric tonnes annual threshold set by the EAO for a mineral mine, alongside minor adjustments to the overall mine plan for the RRIMM. EMLI Meeting participants encouraged the Company to proceed with these revisions. The Amended Application is now awaiting review by the MDRC, which will provide feedback and outline the next steps in the permit process for the RRIMM.

About West High Yield

West High Yield is a publicly traded junior mining exploration and development company focused on acquiring, exploring, and developing mineral resource properties in Canada. Its primary objective is to develop its Record Ridge critical mineral (magnesium, silica, and nickel) deposit using green processing techniques to minimize waste and CO2 emissions.

The Company’s Record Ridge critical mineral deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium based on an independently produced National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’) Preliminary Economic Assessment technical report (titled ‘Revised NI 43-101 Technical Report Preliminary Economic Assessment Record Ridge Project, British Columbia, Canada’) prepared by SRK Consulting (Canada) Inc. on April 18, 2013 in accordance with NI 43-101 and which can be found on the Company’s profile at https://www.sedarplus.ca.

Qualified Person

Rick Walker, B.Sc., M.Sc., P.Geo., the Company Geologist is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical information in this press release.

Contact Information:

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD.

Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488
Email: frank@whyresources.com

Barry Baim, Corporate Secretary
Telephone: (403) 829-2246
Email: barry@whyresources.com

Cautionary Note Regarding Forward-looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act’) and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Source

Click here to connect with West High Yield Resources Ltd. (TSXV: WHY) to receive an Investor Presentation

This post appeared first on investingnews.com
by
Read More
In Investing

3 Things Warren Buffett Has Said About Gold (Updated 2024)

No Comments

Warren Buffett has a formidable reputation as an investor — with a current net worth of nearly US$134 billion, he’s among the world’s richest people and a business role model for many.

Buffett, who runs Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B), is also well known for being uninterested in gold. He’s made his stance on the yellow metal abundantly clear over the years, and it’s not positive — put simply, he doesn’t think gold fits in with his strategy of value investing, which involves picking stocks trading for less than they are worth.

Given Buffett’s aversion to gold, market watchers were understandably surprised when Berkshire Hathaway invested in Barrick Gold (TSX:ABX,NYSE:GOLD) in Q2 2020, paying around US$560 million for about 21 million shares of the major gold miner.

What was behind that decision? Many headlines proclaimed that Buffett had changed his mind on gold. But there were plenty of counterpoints — some suggested that it could have been another person at Berkshire that made the trade and not Buffett himself; others pointed out that there’s a difference between investing in gold and investing in a gold-mining company. Still others noted that Berkshire’s stake in Barrick was relatively small compared to its other holdings.

Ultimately Buffett’s position in Barrick turned out to be a short one. Berkshire Hathaway exited only two quarters later, which was just long enough to reap the rewards of gold’s big bump from the COVID-19 crisis. Perhaps the Oracle of Omaha was clued in to the precious metal’s status as a safe-haven asset in times of economic uncertainty.

Whatever the reason for the moves at Berkshire, it’s interesting to look back at some of the comments Warren Buffett has made about gold. While he hasn’t spent a huge amount of time discussing gold (after all, he doesn’t like it), he’s spoken enough about it that there’s no mistaking his stance. Here’s a look at three quotes that sum up what Warren Buffett thinks about gold.

What has Buffett said about gold?

1. “Gold … has two significant shortcomings”

“Gold … has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end”
— Warren Buffett, letter to shareholders, 2011

Warren Buffett’s 2011 letter to shareholders includes a fairly lengthy discussion on gold, which hit what was then an all-time high of around US$1,920 per ounce in September of that year.

In the letter, Buffett lays out three types of investments, placing gold squarely in the second category, which involves “assets that will never produce anything.” Buyers purchase these assets, according to Buffett, with the hope that someone else will pay more for them in the future. “Owners are not inspired by what the asset itself can produce — it will remain lifeless forever — but rather by the belief that others will desire it even more avidly in the future,” he states in the letter.

Gold advocates reacted strongly to those comments, arguing that the point of gold isn’t what it can produce; instead, its value comes from the fact that it’s a source of protection in times of crisis.

Others have pointed out that gold does in fact have a good track record of producing returns. Responding specifically to Buffett’s comment that an ounce of gold will always only be an ounce of gold, Frank Holmes, chief investment officer at US Global Investors (NASDAQ:GROW), said that the Oracle of Omaha is simply wrong about the yellow metal.

“Buffett’s always been negative on gold; his own company doesn’t pay a dividend, and his argument before was (that) gold doesn’t pay income,” Holmes said. “He’s totally wrong. Since 2000, bullion has far outperformed the S&P 500 (INDEXSP:.INX) by two to one, and it’s outperformed Berkshire Hathaway.”

2. “It won’t do anything … except look at you”

“I have no views as to where (gold) will be (in the next five years), but the one thing I can tell you is it won’t do anything between now and then except look at you” — Buffett, CNBC’s Squawk Box, 2009

Most of the other things Buffett has said about gold relate to the two failings he mentions in his 2011 letter to shareholders: the metal’s lack of utility and the fact that it’s not procreative.

During a 2009 episode of CNBC’s Squawk Box, Buffett aired his thoughts on those issues in a slightly different way. Speaking about gold in the next five years and if it should be part of a value investing strategy, Buffett said he had no opinion on where it might go — “The one thing I can tell you is it won’t do anything between now and then except look at you,” he said.

That’s in contrast to stocks like Coca-Cola (NYSE:KO) and Wells Fargo (NYSE:WFC), which Buffett said would be generating money, and lots of it. He explained, “It’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.”

The comment ends with another of Buffett’s well-known lines on gold, which he’s repeated in various ways over the years: “The idea of digging something up out of the ground, you know, in South Africa or someplace and then transporting it to the United States and putting into the ground, you know, in the Federal Reserve of New York, does not strike me as a terrific asset.”

For Buffett, value relates back to usefulness, and without a specific use gold has neither. Interestingly, the same thought process does not apply to silver — Buffett has put money into silver before, and believes its dual nature as both a precious and an industrial metal make it useful and therefore valuable.

3. “Gold is a way of going long on fear”

“With an asset like gold, for example, you know, basically gold is a way of going long on fear, and it’s been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in the year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money. But the gold itself doesn’t produce anything” — Buffett, CNBC’s Squawk Box, 2011

Warren Buffett has also spoken fairly extensively about his belief that people who buy gold are essentially betting on fear. The quote above is from a 2011 episode of CNBC’s Squawk Box, but he also brings this idea up in his 2011 letter to shareholders.

“What motivates most gold purchasers is their belief that the ranks of the fearful will grow,” he says in the letter. And indeed, gold is often described as a safe-haven investment, meaning that people flock to it in times of turmoil in order to feel more secure and to balance out other areas of their portfolios.

While Buffett admits that “during the past decade this belief has proved correct” — in other words, fear did spur gold demand — overall he sees going long on fear as a problem. Again he goes back to the idea that gold lacks utility and is not procreative.

As he explains, all the gold in the world at the time would be worth US$7 trillion. By his calculations, that’s equivalent to roughly a billion acres of farmland in the US plus seven ExxonMobils (NYSE:XOM) and with an additional US$1 trillion to spare.

“And if you offered me the choice of looking at some 67-foot cube of gold … and the alternative to that was to have all the farmland of the country, everything, cotton, corn, soybeans, seven ExxonMobils. Just think of that. Add $1 trillion of walking around money. I, you know, maybe call me crazy but I’ll take the farmland and the ExxonMobils,” he said.

Will Buffett change his mind about gold?

Berkshire’s Barrick investment was certainly a surprise for many, it doesn’t necessarily mean that Buffett has changed his mind about gold. He’s been consistent in his approach to the precious metal for years, and it seems unlikely that he’ll do an about-face any time soon.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
by
Read More
In Investing

OTC Markets Group Welcomes Silver Crown Royalties Inc. to OTCQX

No Comments

OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced Silver Crown Royalties Inc. (CBOE: SCRI; OTCQX: SLCRF), a silver-only royalty company, has qualified to trade on the OTCQX® Best Market.

Silver Crown Royalties Inc. begins trading today on OTCQX under the symbol ‘SLCRF.’ U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com .

Trading on the OTCQX Market offers companies efficient, cost-effective access to the U.S. capital markets. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws.

About Silver Crown Royalties Inc.
Founded by industry veterans, SCRi is a revenue-generating silver-only royalty company focusing on silver as byproduct credits. SCRi aims to minimize the economic impact on mining projects while maximizing returns for shareholders. SCRi presently has two sources of revenue and continues to build on this foundation, targeting additional operational silver-producing projects.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX ® Best Market, OTCQB ® Venture Market and Pink ® Open Market.

Our OTC Link ® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com .

Subscribe to the OTC Markets RSS Feed

Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

News Provided by GlobeNewswire via QuoteMedia

This post appeared first on investingnews.com
by
Read More
In Investing

Saskatchewan Research Council Achieves Commercial Production at Rare Earths Facility

No Comments

The Saskatchewan Research Council’s (SRC) rare earths processing facility in Saskatoon is now producing rare earth metals at a commercial scale, the organization announced on Monday (September 16).

The Canadian province is now the first and only jurisdiction in North America to achieve this level of production.

The SRC said the facility reached commercial scale over the summer, and can produce 10 metric tons of neodymium-praseodymium (NdPr) metals per month. The milestone came ahead of schedule, and the operation has reportedly achieved purities exceeding 99.5 percent, as well as conversion rates greater than 98 percent.

Building off this initial success, the SRC plans to increase monthly production at the facility to 40 metric tons by December of this year, with the goal of reaching 400 metric tons annually by early 2025.

Rare earths are essential for a range of high-tech applications, including electric vehicles and other green technologies.

Saskatchewan Premier Scott Moe expressed the provincial government’s support for the SRC’s achievements.

“This represents a significant opportunity for Saskatchewan to be a world leader in the area of critical mineral development by establishing a secure and sustainable rare earth supply chain,’ he commented.

In July, the SRC secured tolling agreements with international clients to convert rare earth oxides into metals at its facility. These agreements have helped the SRC to demonstrate its technology at a commercial scale.

Jeremy Harrison, minister responsible for the SRC, highlighted the significance of the group’s work, noting “Production of these metals is important for preserving our national security and growing our provincial economy for decades to come.’

SRC President and CEO Mike Crabtree further stated that the successful commercialization of the facility is the culmination of over 15 years of research and development.

“Since 2020, SRC has aimed to become a global leader in rare earth processing technology and today we’ve proven an industry model for future rare earth initiatives and supply chain development,” he said.

At 400 metric tons of annual output, the SRC’s facility will be able to power about 500,000 electric vehicles. Rare earths also play crucial roles in various other industries, including robotics and HVAC systems.

The facility has so far received a total of C$101 million in funding — US$71 million from the Saskatchewan government and an additional C$30 million from the Canadian government.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
by
Read More
In Investing

FDA Fast Track Designation for Narmafotinib in Advanced Pancreatic Cancer

No Comments

Amplia Therapeutics Limited (ASX: ATX), (“Amplia” or the “Company”), is pleased to announce that the United States Food and Drug Administration (FDA) has granted Fast Track Designation to Amplia’s Focal Adhesion Kinase inhibitor, narmafotinib, for the treatment of advanced pancreatic cancer.

HIGHLIGHTS

The US FDA has granted Fast Track Designation to Amplia’s lead drug narmafotinib in advanced pancreatic cancerFast Track Designation facilitates the development of investigational drugs and allows for expedited review

Fast Track Designation is available to drugs that may provide an advantage over current therapies in the treatment of serious conditions. It is designed to speed the development of these drugs to enable patients to receive them sooner. This Designation will grant the Company access to more frequent meetings, and written communication, with the FDA. In future, narmafotinib may be eligible for Accelerated Approval and Priority Review. The Company has previously received Orphan Drug Designation from the FDA for narmafotinib in pancreatic cancer.

The Company’s CEO and Managing Director, Dr Chris Burns, commented, “Fast Track Designation for narmafotinib is a significant milestone for the Company. With this designation, we can work more closely with the FDA to accelerate our clinical program and gather the most compelling evidence for regulatory approval in this devastating disease.”

Amplia’s clinical trial in advanced pancreatic cancer, the ACCENT trial, is ongoing in Australia and South Korea. Earlier this year, the Company announced that the US FDA had cleared its IND1 application for a trial of narmafotinib in pancreatic cancer in the US. This trial is in advanced planning stages.

This ASX announcement was approved and authorised for release by the Board of Amplia Therapeutics.

Click here for the full ASX Release

This post appeared first on investingnews.com
by
Read More
In Investing

How to Invest in Silver (Updated 2024)

No Comments

How to best invest in silver is a thought on many investors’ minds.

Silver has long been an attractive vehicle not only for storing wealth, but for generating it too. Silver bugs rave about the growth opportunities to be had in a price rally.

However, what goes up must come down, and the silver market is prone to deep dives. This has much to do with the silver’s dual role as both a precious and industrial metal.

As with gold investing, there are four major routes to incorporating silver into your investment portfolio: physical silver, silver ETFs, silver stocks and silver futures. Let’s take a brief look at each one.

How to invest in physical silver?

The most direct avenue to investing in physical silver is by purchasing bullion products such as silver bars, silver coins and silver rounds. Physical silver can be bought via mints and bullion exchanges for immediate delivery.

As a tangible asset, silver bullion has inherent and real value, although as with other commodities it is also vulnerable to market fluctuations. Like gold, silver has been used as legal tender for centuries.

Today, the most popular silver bullion coins include the American Silver Eagle, the official investment-grade silver bullion coin of the United States Mint; the Canadian Silver Maple Leaf, produced by the Royal Canadian Mint; and the Australian Silver Kangaroo, out of the Perth Mint.

For those investors interested in holding silver bars, a dedicated storage vault in a secure storage facility is a necessity. However, it’s important to understand that there are associated costs with secure storage. Another expense associated with investing in physical silver is the premium charged on top of the silver spot price to cover minting costs.

Click here to learn more about the pros and cons of investing in physical silver.

How to invest in silver futures?

Silver futures are traded on a number of global exchanges, such as CME Group’s COMEX exchange, the Dubai Gold & Commodities Exchange (DGCX), and the Tokyo Commodity Exchange (TOCOM).

The silver futures market allows participants to enter into futures contracts for the delivery of the white metal in the future at an agreed-upon price. In such contracts, two positions can be taken: a long position to accept delivery of the metal or a short position to provide delivery of the metal.

However, the volatility inherent in the silver sector can be amplified in the futures marketplace. This makes it a realm for more experienced investors with a higher tolerance for risk.

Click here to learn more about investing in silver futures.

How to invest in silver stocks?

Investors can purchase shares in silver mining stocks on many of the world’s premiere stock exchanges. Buying a share essentially means buying a stake in the company, with financial returns or losses tied to its performance.

Canada’s Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) feature the most mining stocks of any of the world’s stock exchanges. The New York Stock Exchange (NYSE) and the Australian Stock Exchange (ASX) are also excellent platforms for mining investment.

Depending on risk tolerance and preferred investment strategy, investors can choose between a bevy of major silver mining companies with producing assets or junior silver miners. Many of the more mature silver mining stocks also pay dividends. Read our article on 5 Silver Stocks that Pay Dividends for a place to start.

It’s worth noting that investing in a junior stock can be risky. Since these companies can fail due to the risks associated with exploration and development, investors stand a greater chance of taking on a loss when getting exposure to silver this way.

Finally, another option for market participants is to purchase shares in silver streaming and royalty companies, such as Wheaton Precious Metals (TSX:WPM,NYSE:WPM). These companies are often viewed as a safer option when it comes to stocks.

Watch the interview above for Hansen’s thoughts on how to conduct due diligence for gold and silver stocks.

Click here for a list of the 5 biggest silver-mining companies, here for the 5 best-performing Canadian silver stocks, and here for the 5 biggest ASX silver stocks.

How to invest in silver ETFs?

If investors don’t want to take the risk of investing in individual stocks, they can also opt to invest in silver through an exchange-traded fund (ETF), which trades on an exchange like a regular stock.

There are several silver ETFs to choose from. For instance, some ETFs focus solely on resource companies in the space, some on physical silver bullion, and others on silver futures contracts. For those looking to gain exposure to a basket of silver mining stocks, the Global X Silver Miners ETF (ARCA:SIL) and IShares MSCI Global Silver Miners ETF (BATS:SLVP) are quality options.

The iShares Silver Trust (ARCA:SLV) is the world’s largest silver ETF by assets under management. It tracks the London Bullion Market Association silver price as its benchmark and holds silver bullion. The ProShares Ultra Silver ETF (ARCA:AGQ) uses derivatives such as futures contracts to invest in silver.

Click here for a list of the seven biggest silver ETFs.

Why invest in silver?

As a precious metal, silver can offer wealth protection in times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver.

Recent concerns include the threat of a looming recession, social unrest, Russia’s entrenched war in Ukraine and the destabilization in the Middle East centered around the Israel-Hamas war. Investors will be closely watching these trends and any other geopolitical events that bring higher levels of uncertainty.

Like gold, the silver price often increases when geopolitical issues are at play. Yet, silver has the potential to offer higher returns than gold — the gold/silver ratio, which has moved between 1:75 and 1:95 since June 2022, is a metric that compares the metals’ prices at a given moment. Often, when gold moves up, silver will play catch up, and it stands to see a much bigger percentage gain when its price goes up.

With the highest electrical conductivity of all the metals, silver’s industrial side also offers opportunities for generating wealth. The major drivers of industrial demand for silver comes from sectors important to energy transition, specifically the production of photovoltaics and electric vehicles.

FAQs for investing in silver

Who is the biggest silver investor?

JPMorgan Chase (NYSE:JPM) is believed to hold the biggest position in physical silver through its custodianship of the iShares Silver Trust ETF (ARCA:SLV) and its significant COMEX silver bullion holdings. The financial services company’s majority position in the silver market has placed it in the center of silver market manipulation investigations in recent years.

Does Warren Buffett invest in silver?

Yes — despite his strong feelings against gold, Warren Buffet has reportedly invested nearly US$1 billion in silver. While the Oracle of Omaha sees no intrinsic value in gold, silver’s industrial and medical uses make it a good fit for his investment values.

What price did Warren Buffett pay for silver?

Buffett’s Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) took advantage of ultra-low silver prices between 1997 and 2006, buying up 37 percent of global silver supply. Silver ranged from US$4 to US$10 per ounce during that period.

In fact, between July 1997 and January 1998 alone, the company bought about 129 million ounces of the metal, much of which was for under US$5. Adjusted for inflation, the company’s purchases in that window cost about US$8.50 to US$11.50.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
by
Read More
In Investing

What are Junior Miners and Are They a Good Investment? (Updated 2024)

No Comments

Investing in junior mining companies can be tricky, and it’s often challenging for investors to pick winners.

That’s largely because junior miners have one of the toughest jobs in the mining industry: finding mineral deposits. The kicker is that many of these mineral exploration companies don’t actually generate revenue to finance their exploration activities.

Rather, junior miners must present an attractive value proposition to accredited investors. They may then decide to take an equity position in the company, often through private placements.

What is a junior mining company?

A junior mining company is typically a company that focuses on the early stages of a mine’s creation, from prospecting and early exploration through to completing preliminary economic assessments and feasibility studies.

Junior miners often have low market capitalizations of under $500 million — some mining penny stocks are well under — although more advanced-stage junior mining companies with high-value projects may have market caps of up to $2 billion.

Very few junior miners have the funds and expertise required to develop a deposit into an operating mine; for many, the goal is to hit upon a deposit that’s attractive enough to catch the attention of a major producer that will pay to acquire the asset.

Another path a junior may take is to partner up with a larger firm that can give it access to the financing and qualified experts needed to build and operate a mine. Other junior companies actively search for brownfields projects with past-producing mines and stockpiled ore that can be quickly and cost-effectively brought into production — if successful, they can restart to production and generate cashflow to fund exploration efforts.

Are junior miners a good investment?

Junior mining stocks are inherently risky, and companies frequently fail because of the significant risks involved in each stage of exploration and development. Discovering viable deposits is incredibly difficult and capital intensive. As a result, stock values can shift drastically when juniors report disappointing drill results or less-than-stellar economic studies.

Aside from what could go wrong at the project level is what could go wrong in the markets. The risk appetite of resource investors is very much tied to the ebb and flow of commodities cycles, which can be unpredictable. Understandably, attracting capital in a market downturn can be an insurmountable feat for many junior miners.

Investing in junior mining stocks, however, can be a lucrative venture for those with a higher tolerance for risk and the know-how for spotting the right projects. Indeed, many investors are attracted to junior mining stocks because, as expert Peter Krauth has said, “all it takes is just one 10-bagger to make up for all the dogs in the pound.”

There may even be tax benefits to investing in junior mining stocks in the right jurisdiction. Flow-through share tax credits in Canada are one example. Click here to learn more about how they can benefit junior resource investors.

Most of the world’s junior miners are listed in Canada, with about 40 percent of all global mining financings taking place on the TSX or TSXV. Every year, the TSX Venture 50 highlights the top-performing listings across five key sectors, including mining. The 10 mining firms featured in 2024’s TSX Venture 50 list saw average annual share price growth of 245 percent and an average annual market cap increase of 734 percent.

Check out our weekly top gainers to find out which Canadian mining stocks are performing well each week, as well as the five best-performing junior gold stocks and junior copper stocks on the TSXV.

High numbers of junior mining stocks are also found on the LSE and the ASX.

5 tips for investing in junior mining companies

Investors should practice due diligence and use as much information as is available if they want to successfully identify investment-worthy junior mining companies. Here are a few tips on how to spot winners:

1. Experienced management is crucial

Look for a team roster stacked with players who boast a track record of successful discoveries and projects brought through to feasibility. News about staff changes like resignations, new hires and company restructurings may seem small at first, but team updates are a crucial point to be aware of when choosing juniors.

2. Keep up with the news

Keeping up with company announcements is important — juniors are often high-risk investments that rely on strong news flow. The value of a junior mining company is heavily affected by news highlighting exploration activities such as drill results, and business activities such as the development of new partnerships, management changes, financings and disputes. Press releases are a great source of this information.

3. Read studies and reports

Understanding technical reports and studies is crucial to understanding the progress of junior mining companies. Mineral resource estimates, preliminary economic assessments and feasibility studies are especially helpful to look out for — they provide information that can help determine the likelihood of a project’s success, its potential challenges and what the payoff might be. Many of these reports are technical, so it’s important to appreciate the details and understand topics like mineral grading, licensing, reserve estimates and metallurgical tests.

4. Be aware of political risk

It’s worth taking the time to familiarize yourself with the countries in which junior miners operate. Safe jurisdictions are those with stable, mining-friendly governments, low sociopolitical strife and transparent permitting processes. Metrics like the investment attractiveness index used in the Fraser Institute’s annual mining survey can provide an overview of which countries are more receptive to mining projects — but timely information is key, too. Wars, strikes and election cycles are particularly noteworthy and should always be looked at when considering juniors.

5. Use purchasing criteria

Speculating on junior mining stocks is common, but can be heavily influenced by personal biases and impulse choices. It helps to bring a more rigid, objective approach to picking junior mining stocks. Rule suggests buying a stock for a specific reason and selling that stock if the reason disappears. Thinking like this allows decisions to be made more quickly and with more clarity.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
by
Read More
In Investing

Lithium Universe Limited (ASX: LU7) – Trading Halt

No Comments

Description

The securities of Lithium Universe Limited (‘LU7’) will be placed in trading halt at the request of LU7, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, 24 September 2024 or when the announcement is released to the market.

Issued by

ASX Compliance

Click here for the full ASX Release

This post appeared first on investingnews.com
by
Read More
In Investing

Trillion Energy International

No Comments

Investor Insight

With a strategic portfolio of oil and gas production and exploration projects, Trillion Energy is a compelling investment opportunity well-placed to play a critical role in Europe’s and Turkey’s energy market.

Overview

Trillion Energy (CSE:TCF,OTCQB:TRLEF,Frankfurt:Z62) is a natural oil and gas exploration company focused on providing energy to Turkey and Europe. The company operates primarily in the Black Sea region, where it has been rapidly increasing its natural gas production at SASB gas field since 2022. Trillion Energy is also expanding into oil and gas exploration, particularly in Southeast Turkey. With established infrastructure, including gas plants and pipelines, the company is set to play a critical role in meeting the region’s energy demand in 2024 and beyond.

Turkey is the seventh largest natural gas consumer in the world, importing 98 percent of its natural gas and 92 percent of its oil. Strong local demand, high gas prices (US$11/MCF), and favourable fiscal regimes (12.5 percent royalty and 22 percent corporate tax rates) provide a lucrative energy market.

Off the Turkey coast, the Black Sea gas pipeline plays a pivotal role in connecting Europe and Asia via Turkey, making it the only pipeline with such connectivity. This strategic infrastructure is key to Turkey’s energy ambitions, positioning the country as a vital energy hub between two continents. The pipeline is integral for distributing gas from the SASB Gas Field to both local and regional markets. Turkey’s existing infrastructure also allows it to tap into this route for supplying gas to Europe, further enhancing its role in global energy supply.

Company Highlights

Holds a 49 percent interest in the Black Sea’s SASB gas field, with 323 billion cubic feet (BCF) of original gas in place (OGIP) and proven reserves valued at USD $421 million (NPV10). Production increased by 300 percent from 2022 to 2023, with 17+ wells planned for development.Focus on high-impact oil exploration in Southeast Turkey, targeting fields with production rates of 10,000 barrels per day. Raised $55 million in equity and $15 million in subordinated debt for ongoing projects. Successfully drilled 5 long-reach natural gas production wells using novel technology in the Black Sea.

Key Projects

SASB Gas Field

The SASB Gas Field, located in the Black Sea, off Turkey, is a significant natural gas project redeveloped by Trillion Energy. Initially developed in 2007, the gas field has produced over 43 billion cubic feet (BCF) of gas. SASB plays a crucial role in Turkey’s domestic energy supply

Trillion’s development program for SASB consists of more than 17 production wells. More than $600 million have been invested into the historical wells and infrastructure at SASB. Six wells have been drilled in 2023, and the project is now producing at four production platforms.

Trillion aims to increase production at SASB to an exit rate of 8.5 million cubic feet per day by the end of 2024. The project benefits from high gas prices and strong infrastructure, with reserves valued at USD $420.5 million.

The SASB license block comprises 12,387 hectares, which expires in 2032, and is renewable until 2042.

Oil Exploration Blocks

Trillion Energy’s Southeast Turkey project involves oil exploration in the Cudi-Gabar province. The 2023-2026 program includes drilling 10 wells across three blocks covering 151,484 hectares. Trillion holds a 50 percent interest by funding 100 percent of the costs, with seismic data acquisition and well drilling planned. The area is surrounded by major oil discoveries, including the nearby Sehit Aybuke Yalcin and Sehit Esma Cevik fields, which are rich in oil reserves.

Cendere Oil Field

The Cendere Oil Field, located in Turkey, is a long-term, stable oil production site in which Trillion Energy holds a 19.6 percent interest (with a lower interest of only 9.8 percent in three wells). The field produces around 110 to 120 barrels of oil per day net to Trillion Energy, generating $120,000 to $140,000 in monthly cash flow. With approximately 1.5 million barrels of oil reserves remaining, the field has a net present value of US$13.85 million for Trillion Energy.

Cendere Field Well Pads & Production Lines Map

Management Team

Arthur Halleran – CEO and Director

Arthur Halleran has served as a director of Trillion Energy since October 4, 2011. He has a Ph.D. in Geology from the University of Calgary and 40 years of petroleum exploration and development experience. His international experience includes in countries such as Canada, Colombia, Egypt, India, Guinea, Sierra Leone, Sudan, Suriname, Chile, Brazil, Bulgaria, Turkey, Pakistan, Peru, Tunisia, Trinidad Tobago, Argentina, Ecuador and Guyana. Halleran has worked for Petro-Canada, Chevron, Rally Energy, Canacol Energy and United Hydrocarbon International. In 2007, Halleran founded Canacol Energy, a company with petroleum and natural gas exploration and development activities in Colombia, Brazil and Guyana, which made a billion-dollar natural gas discovery in Colombia.

David Thompson – Director

David Thompson successfully founded an oil trading company in Bermuda with offices in the US and Europe (Geneva, Moscow and Amsterdam). He was responsible for the company’s production operations in Turkmenistan and successfully raised over $100 million in equity. He was also responsible for production at the Lhamov and Zhdanoy oil fields (offshore Caspian Sea – part of Turkmenistan project) which discovered producing reserves of 365 million barrels of oil and 2 TCF gas. He also negotiated the farm-out of a number of company assets. He is the managing director of AMS Limited, a Bermuda-based management company, and was the founder, president and CEO of Sea Dragon Energy (TSXV), CFO of Aurado Energy, CFO of Forum Energy Corporation (OTC), financial director of Forum Energy Plc (AIM) and SVP at Larmag Group of Companies. Thompson is a certified management accountant (1998).

Jay Park – Director

Jay Park is a renowned energy lawyer with a particular focus on upstream oil and gas transactions. He has worked on energy projects in more than fifty countries, including Turkey. He has advised international energy companies, including oil and gas explorers, producers, marketers, pipeline companies, state oil companies, governments, banks and multilateral agencies such as the World Bank. Park was formerly CEO and then chairman of ReconAfrica, exploring for oil & gas in Namibia and Botswana. During this period ReconAfrica was twice named to the TSX Venture 50 and was the top performing 2021 TSX Venture 50 company from the energy sector. Park is currently executive chairman of MCF Energy, exploring for gas in Europe.

Sean Stofer – Director

Sean Stofer has over 20 years of renewable energy experience. Stofer is a graduate of the University of British Columbia in Engineering and is a registered engineer in California. He is a founder of several successful renewable energy companies including for the Arctic’s largest solar array; 250 MW of solar in the USA; 200+MW of wind projects and over 300MW of hydroelectric projects. He is COO of Green Data Center Real Estate, which uses renewable energy to power data centers. Stofer is leading a project of over 500 MW using wind, solar and hydropower. He has worked closely with the government to guide policy and has consulted to a wide range of companies. He was named among the Top 40 Under 40 in Vancouver, Canada for his business achievements.

This post appeared first on investingnews.com
by
Read More
In Investing

How to Invest in Silver

No Comments

How to best invest in silver is a thought on many investors’ minds.

Silver has long been an attractive vehicle not only for storing wealth, but for generating it too. Silver bugs rave about the growth opportunities to be had in a price rally.

However, what goes up must come down, and the silver market is prone to deep dives. This has much to do with the silver’s dual role as both a precious and industrial metal.

As with gold investing, there are four major routes to incorporating silver into your investment portfolio: physical silver, silver ETFs, silver stocks and silver futures. Let’s take a brief look at each one.

How to invest in physical silver?

The most direct avenue to investing in physical silver is by purchasing bullion products such as silver bars, silver coins and silver rounds. Physical silver can be bought via mints and bullion exchanges for immediate delivery.

As a tangible asset, silver bullion has inherent and real value, although as with other commodities it is also vulnerable to market fluctuations. Like gold, silver has been used as legal tender for centuries.

Today, the most popular silver bullion coins include the American Silver Eagle, the official investment-grade silver bullion coin of the United States Mint; the Canadian Silver Maple Leaf, produced by the Royal Canadian Mint; and the Australian Silver Kangaroo, out of the Perth Mint.

For those investors interested in holding silver bars, a dedicated storage vault in a secure storage facility is a necessity. However, it’s important to understand that there are associated costs with secure storage. Another expense associated with investing in physical silver is the premium charged on top of the silver spot price to cover minting costs.

Click here to learn more about the pros and cons of investing in physical silver.

How to invest in silver futures?

Silver futures are traded on a number of global exchanges, such as CME Group’s COMEX exchange, the Dubai Gold & Commodities Exchange (DGCX), and the Tokyo Commodity Exchange (TOCOM).

The silver futures market allows participants to enter into futures contracts for the delivery of the white metal in the future at an agreed-upon price. In such contracts, two positions can be taken: a long position to accept delivery of the metal or a short position to provide delivery of the metal.

However, the volatility inherent in the silver sector can be amplified in the futures marketplace. This makes it a realm for more experienced investors with a higher tolerance for risk.

Click here to learn more about investing in silver futures.

How to invest in silver stocks?

Investors can purchase shares in silver mining stocks on many of the world’s premiere stock exchanges. Buying a share essentially means buying a stake in the company, with financial returns or losses tied to its performance.

Canada’s Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) feature the most mining stocks of any of the world’s stock exchanges. The New York Stock Exchange (NYSE) and the Australian Stock Exchange (ASX) are also excellent platforms for mining investment.

Depending on risk tolerance and preferred investment strategy, investors can choose between a bevy of major silver mining companies with producing assets or junior silver miners. Many of the more mature silver mining stocks also pay dividends. Read our article on 5 Silver Stocks that Pay Dividends for a place to start.

It’s worth noting that investing in a junior stock can be risky. Since these companies can fail due to the risks associated with exploration and development, investors stand a greater chance of taking on a loss when getting exposure to silver this way.

Finally, another option for market participants is to purchase shares in silver streaming and royalty companies, such as Wheaton Precious Metals (TSX:WPM,NYSE:WPM). These companies are often viewed as a safer option when it comes to stocks.

Watch the interview above for Hansen’s thoughts on how to conduct due diligence for gold and silver stocks.

Click here for a list of the 5 biggest silver-mining companies, here for the 5 best-performing Canadian silver stocks, and here for the 5 biggest ASX silver stocks.

How to invest in silver ETFs?

If investors don’t want to take the risk of investing in individual stocks, they can also opt to invest in silver through an exchange-traded fund (ETF), which trades on an exchange like a regular stock.

There are several silver ETFs to choose from. For instance, some ETFs focus solely on resource companies in the space, some on physical silver bullion, and others on silver futures contracts. For those looking to gain exposure to a basket of silver mining stocks, the Global X Silver Miners ETF (ARCA:SIL) and IShares MSCI Global Silver Miners ETF (BATS:SLVP) are quality options.

The iShares Silver Trust (ARCA:SLV) is the world’s largest silver ETF by assets under management. It tracks the London Bullion Market Association silver price as its benchmark and holds silver bullion. The ProShares Ultra Silver ETF (ARCA:AGQ) uses derivatives such as futures contracts to invest in silver.

Click here for a list of the seven biggest silver ETFs.

Why invest in silver?

As a precious metal, silver can offer wealth protection in times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver.

Recent concerns include the threat of a looming recession, social unrest, Russia’s entrenched war in Ukraine and the destabilization in the Middle East centered around the Israel-Hamas war. Investors will be closely watching these trends and any other geopolitical events that bring higher levels of uncertainty.

Like gold, the silver price often increases when geopolitical issues are at play. Yet, silver has the potential to offer higher returns than gold — the gold/silver ratio, which has moved between 1:75 and 1:95 since June 2022, is a metric that compares the metals’ prices at a given moment. Often, when gold moves up, silver will play catch up, and it stands to see a much bigger percentage gain when its price goes up.

With the highest electrical conductivity of all the metals, silver’s industrial side also offers opportunities for generating wealth. The major drivers of industrial demand for silver comes from sectors important to energy transition, specifically the production of photovoltaics and electric vehicles.

FAQs for investing in silver

Who is the biggest silver investor?

JPMorgan Chase (NYSE:JPM) is believed to hold the biggest position in physical silver through its custodianship of the iShares Silver Trust ETF (ARCA:SLV) and its significant COMEX silver bullion holdings. The financial services company’s majority position in the silver market has placed it in the center of silver market manipulation investigations in recent years.

Does Warren Buffett invest in silver?

Yes — despite his strong feelings against gold, Warren Buffet has reportedly invested nearly US$1 billion in silver. While the Oracle of Omaha sees no intrinsic value in gold, silver’s industrial and medical uses make it a good fit for his investment values.

What price did Warren Buffett pay for silver?

Buffett’s Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) took advantage of ultra-low silver prices between 1997 and 2006, buying up 37 percent of global silver supply. Silver ranged from US$4 to US$10 per ounce during that period.

In fact, between July 1997 and January 1998 alone, the company bought about 129 million ounces of the metal, much of which was for under US$5. Adjusted for inflation, the company’s purchases in that window cost about US$8.50 to US$11.50.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
by
Read More