Trident Royalties (LON:TRR) has come to an agreement with Sutter Operations Corporation to acquire a net smelter return royalty over production from the Lincoln gold mine in California.
Seduli intends to utilise the royalty sale proceeds to finalise the restart of Stage 1 production at the Lincoln underground gold mine..
Production of 220 tonnes-per-day was expected to kick off this year, targeting about 20,000-plus ounces of gold per year.
The project was permitted for stage-two production of up to 1,000 tonnes-per-day, anticipated to commence, subject to funding, immediately following successful completion of stage one.
Adam Davidson, Chief Executive Officer of Trident commented: “The Lincoln Gold Mine represents a highly compelling investment opportunity for Trident, and we are delighted to be supporting Seduli as it restarts mining and gold production in the coming months. The Mother Lode is a mineralised zone of international fame and the discovery of an orebody with an average grade of 9.3g/t, which has not been drilled beyond 150m, offers exceptional upside once in production. With this in mind, we believe that Lincoln will reveal gold ounces orders of magnitude larger than the existing NI 43-101 MRE, subject to the required exploration work and technical studies.”
“Acquiring a new near-term cash generative gold royalty also aligns well with our over-arching strategy to assemble a diversified royalty portfolio, and this new addition is expected to contribute to our two existing paying royalties, in iron ore and copper, in the near-term.”
Trident Royalties are mining royalties and streaming company with a diverse range of royalties covering precious, base and battery metals.
Having presented at the December UK Investor Magazine Virtual Investor Conference, Trident Royalties returned in May to update investors of recent progress at the company.
Trident Royalties are on a path to achieving critical mass with robust pipeline of deals having already acquired 12 mining royalties.
The Trident Royalties share price is up by 1.18% during the morning session on Tuesday.
Managing director says exploration efforts at the Luanshya Project are ‘bearing fruit’
Castillo Copper (LON:CCZ), has confirmed that multiple targets for test-drilling have been identified at the Luanshya Project in Zambia’s copper-belt, following the completion of eight Induced Polarisation (IP) survey lines.
Work on the IP survey across the Luanshya Project in Zambia’s copper-belt – focusing on a 6km strike delineated from previous soil sampling campaigns – is progressing to plan, with eight lines now complete.
In good news for the metals explorer, multiple high chargeability targets have been identified within three interpreted lines that potentially indicate the presence of sulphides.
Reconciling the IP survey findings with the previous geochemical results confirmed the high chargeability targets are directly coincident – this significantly enhances the probability for a discovery.
Castillo can now formulate the inaugural drilling campaign and, pending the outcome of discussions with service providers, potentially commence work in Q4 of 2021.
Meanwhile, the second drilling campaign at the Big One Deposit has concluded – the laboratory, which is processing a huge number of samples from many explorers across the Mt Isa region, is expected to return all assays shortly.
This will enable the geology team to progress work on formulating the next drilling campaign at Big One.
Simon Paull, Managing Director of Castillo Copper, commented: “Our exploration efforts at the Luanshya Project are bearing fruit, as we now have multiple high-quality targets to test-drill along the 6km copper strike. Moving forward, the Board’s goal is to commence the inaugural drilling campaign during the fourth quarter. This will place Castillo Copper in a strong position strategically, with development work progressing concurrently on prime projects in the Zambia and Mt Isa copper-belts.”
The Castillo Copper share price is down by 2.63% during the morning session on Monday.
Some companies seem to perpetually disappoint investors. Periods of hope are succeeded by yet another delay or problem. This means that when things are starting to appear more positive there is scepticism.
One company that has been on AIM more than two decades has managed to disappoint and just as importantly kept on coming back to the market for more cash appears to be finally on a positive course. It should be able to generate enough cash to ensure that there will be no requirement for a cash call for the businesses that are currently operated by the company.
The peak adjusted share price of...
Ireland-based industrial property and offices investor Yew Grove REIT (LON: YEW) managed to cover the additional costs of moving to the main Euronext market in Dublin from the Growth Market due to REIT regulation requirements. The AIM quotation is being retained.
The market move cost €900,000 and after that cost the interim pre-tax profit before property gains was still €2.52m on revenues of €6m. NAV edged up to €1.0064 cents a share.
Rental income has held up well with 99% of rents collected in the first half. There was also 20,000 square feet of vacant space lent earlier in the year. The ann...
Altus Strategies (LON: ALS) has reached a new point in its development. The acquisition of a mining royalty in Chile provides near-term income for the company, which has previously focused on developing mining projects.
This deal will provide cash to help to cover group overheads and it will be completed on 1 September. There could be further royalty deals.
Altus Strategies together with its 50/50 joint venture partner EMX Royalty is buying a 43% interest in SLM California, which owns a 1.944% net smelter royalty in the producing Caserones copper-molybdenum mine in Chile for $68.2m. The open p...
Individual traders, also known as the “retail” segment of the stock market, have been participating more in the financial markets as millions of people deemed investing as a potentially entertaining and rewarding activity during the pandemic.
In the United States alone, estimates point to retail investors accounting for at least a fifth of the daily trading volume of individual stocks while the latest short-squeezing frenzythat took place in February-March 2021 emphasized the extent of the impact that a now more prominently present group of individual investors could have in the price of a group of stocks.
That said, has a similar situation happened in the United Kingdom as well? Or is this a US-only thing?
In the following article, we take a look at the factors driving the retail trading boom in the United States while also assessing some trading statistics from the United Kingdom to see if the situation is similar or entirely different in the UK market.
Factors driving the US retail trading boom
One of the first variables driving an increase in the participation of retail investors in the financial markets is a reduction in trading costs. In this regard, platforms like eToro and Robinhood have pioneered this movement and, since the UK is among the list of eToro supported countries, British traders have also been able to benefit from this trend.
Moreover, the combination of government stimulus checks along with the increasing popularity of stock trading and investing in social media prompted millions of people to turn to the stock market with the expectation of multiplying those funds to a point that they become what some people have deemed as “life-changing gains”.
One of the markets that has attracted the interest of retail investors is the cryptocurrency market as reflected by the price of Bitcoin (BTC), which surged from an average of $10,000 per coin before the pandemic to an all-time high of more than $60,000 amid an increasing participation of both retail and institutional traders during the pandemic.
Meanwhile, in 2021, one of the strangest phenomenons that have emerged in the financial markets is the appearance of the so-called “meme stocks”, which are individual stocks that have attracted the interest of retail traders who spent their time sharing ideas in the popular Reddit messaging board Wall Street Bets.
This messaging board became a place where investors discussed their investment theses on multiple individual issues and back in February many posts that emphasized the possibility of performing a short-squeeze on a small group of stocks started to come up, including those of the global movie theater chain AMC Entertainment (AMC) and the used video game retail store chain GameStop (GME) – both of which were heavily shorted by institutional participants.
A successful short-squeeze took place with both names, and with many others for that purpose, and the investment landscape seems to have changed since then as now these “meme stocks” have become a recurring topic of conversation even in mainstream media talk shows due to the large gains that some investors have realized by trading these stocks while the move also inflicted some pain to the institutional funds that were betting against these companies.
As a result of this social phenomenon, retail investors have grown bolder, more knowledgeable, and perhaps even wealthier, and they now identify themselves as a paradigm-disrupting movement that is tipping Wall Street’s balance to help ‘the little guy’.
Is the UK stock market seeing a similar trend?
During the pandemic, the number of retail accounts in the United Kingdom seems to have grown as indicated by the performance of firms that provide brokerage services within the country like Hargreaves Lansdown.
In 2020 alone, the company reportedly added a total of 188,000 clients to its platform– a number that far exceed the average for the four preceding years while other statistics point to 20% of the total volume of FTSE All Shares orders being traced back to retail accounts during the first six months of 2020.
Even though the short-squeezing frenzy seems to be a US thing, the participation of retail investors in the UK does seem to have accelerated last year, although perhaps not to the extent seen in the United States.
Moving forward, experts are expecting to see a drop in retail trading volumes in the UK as this activity may no longer captivate the attention of people once other more traditional forms of entertainment become available once the pandemic situation ceases.
Telematics services provider Trakm8 (LON: TRAK) is on course to breakeven this year, following a period of disappointing trading. The share price has been in the doldrums for years and if the company can achieve the forecast profit for 2022-23 then it could bounce back.
Covid-19 delayed the return to profit even though the cost base has been reduced. It will happen next year if it does not happen this year. The main sources of revenues are fleet owners and insurance companies, that offer discounts to people who have the Trakm8 technology installed in their vehicle.
Trakm8 went through an acqui...
Aviation services provider John Menzies (LON: MNZS) is set to publish interim figures on 1 September. The trading statement at the end of July stated that trading is slightly ahead of expectations. That led to forecast upgrades and the results will provide further guidance to the prospects for the full year.
Europe has been a weaker market, but other regions have been stronger and have gained contracts. Cost control has helped Menzies to do much better in the first half of this year, although the comparatives were particularly weak due to Covid-19 lockdowns.
In the six months to June 2021, net...
It has been a slow process but linen hire company Johnson Service Group (LON: JSG) is finally on the way back to profit. Workwear demand held up fairly well but the linen hire for hotels and catering was hard hit by lockdowns.
The recovery is gaining momentum. Hotel and catering demand in June was back to more than 70% of previous levels – that is more than double the level three months before. Workwear demand is nearly back to normal levels. There will be more trading news with the interim results on 1 September.
Management should guide investors about the continued recovery over the summer m...
Jay Powell firmly suggested on Friday that the US Federal Reserve could begin to pull back on its large-scale pandemic-induced stimulus measures this year.
The Fed chair said that the bank has completed one of its two goals required to justify decreasing its support, adding that “progress” was being made on the other.
Powell reaffirmed his view that the US economy has rebounded strongly following the pandemic, while he said he is confident America is heading in the right direction to pull back on its high levels of support.
“My view is that the ‘substantial further progress’ test has been met for inflation,” Powell said on Friday. “There has also been clear progress toward maximum employment.”
Previous report suggests that officials at the Fed think that now is an appropriate time to begin “tapering” the bond-buying measures this year, which Powell has now agreed with.
“This year’s Jackson Hole agenda has focused on the word “uneven” and is reading ever more altruistic”, said Hinesh Patel, portfolio manager at Quilter Investors. “Monetary policy setters, researchers and influencers will be discussing frameworks that will influence our lives over the next decade, not just to get us through the pandemic. Powell’s speech is evidence that central banks are looking beyond the surge in Delta cases globally.”
“Since the global financial crisis, monetary policy and fiscal policy have been at a tug of war but today they clearly operate in tandem akin to synchronised swimming. The Federal Reserve has clearly decided now is the time for the fiscal response to take up more of the slack,” said Patel.
“Powell has been incredibly clear that tapering is coming later this year and they should now be prepared enough to avoid any sort of tantrum. But central banks will have to ultimately hold the hands of financial markets as we transition to a new era of monetary policy to ensure credit conditions remain optimal.”
Dollar
The US Dollar Index (DXY), which measures the greenback against a range of competing currencies, rose to 92.79 on Friday, a new four-day high.
The index made additional ground in response to aforementioned hawkish remarks from Powell.
The greenback surged until the beginning of this week, with the dollar index hitting a nine-month-high of 93.734 on Friday, on fears over the Delta variant’s economic impact.
Vasileios Gkionakis, global head of FX strategy at Lombard Odier Group, told Reuters that there’s been skittishness over growth and sector rotations, which has boosted the dollar because of its safe-haven status.
“In the short term, we’re still going to be trading in ranges, with upside bias,” Gkionakis added.
Gold
As Jerome Powell made his remarks about potentially pull stimulus measures this year, the price of gold rose to $1,800 per ounce.
$Gold prices pushed to $1,800 an ounce in initial reaction to #Powell's comments. December futures last traded at $1,800.90 an ounce, up 0.30% on the day.
