Month: July 2020

electroCore (ECOR) – gammaCore Becomes the 1st Approved Medical Device to Treat Coronavirus-related Breathing Difficulty

Posted on by Admin

Tuesday, July 14, 2020

electroCore (ECOR)

gammaCore Becomes the 1st Approved Medical Device to Treat Coronavirus-related Breathing Difficulty

electrocore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. Its product gammaCore is FDA-cleared for the acute treatment of pain associated with migraine and episodic cluster headache in adults.

Ahu Demir, Ph.D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    gammaCore to treat asthma in coronavirus infected patients. The U.S. Food and Drug Administration (FDA) authorized the use of gammaCore for the treatment of asthma exacerbations in known or suspected COVID-19 patients. The shares of gammaCore gained over 100% value upon the emergency use authorization (EUA) news, which was announced yesterday.

    gammaCore was shown to improve asthma. The non-invasive vagus nerve stimulation (nVNS) device, gammaCore, showed relief in patients who are experiencing asthma-related breathing difficulty in prior pilot studies. The EUA was granted based on data from two prospective studies, that showed …


    Click to get the full report

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Industry Report – Deja Vu all over again? Will there be a replay of the 2H2019 dry bulk market recovery in 2H2020?

Posted on by Admin

Tuesday, July 14, 2020

Transportation & Logistics Industry Report

Deja Vu all over again? Will there be a replay of the 2H2019 dry bulk market recovery in 2H2020?

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

  • The Baltic Dry Index (BDI) closed at 1,810 last week, which was 1% higher than the end of 2Q2020, 3% lower than a year ago and 66% higher than year-end 2019. The BDI closed 1,799 at on June 30th and averaged 782 in 2Q2020, which was 32% higher than the 1Q2020 average of 592 and 21% lower than 2Q2019 average of 990.
  • The Baltic Capesize Index (BCI) closed at 3,333 last week, which was 23% lower than the end of 2Q2020, 6% lower than a year ago and 71% higher than year-end 2019. The BCI closed at 4,320 at on June 30th and averaged 1,147 in 2Q2020, which was 1,112% higher than the 1Q2020 average of 95 and 11% lower than the 2Q2019 average of 1,268.
  • The Baltic Panamax Index (BPI) closed at 1,587 last week, which was 26% higher than the end of 2Q2020, 18% lower than a year ago and 42% higher than year-end 2019. The BPI closed at 1,257 at on June 30th and averaged 823 in 2Q2020, which was 5% higher than the 1Q2020 average of 787 and 31% lower than the 2Q2019 average of 1,189.
  • The Baltic Supramax Index (BSI) closed at 835 last week, which was 22% higher than the end of 2Q2020, 5% lower than a year ago and 16% higher than year-end 2019. The BSI closed at 683 at on June 30th and averaged 497 in 2Q2020, which was 17% lower than the 1Q2020 average of 596 and 34% lower than the 2Q2019 average of 753.
  • Upward bias continues into 3Q2020. In contrast to the across the board weakness in 1Q2020, there was an overall upward bias in 2Q2020 and we believe that the dry bulk market is poised for a firmer 2H2020. We remain constructive on the dry bulk market outlook despite the continued overhang of COVID-19 due to firming demand and muted supply growth. While there will be less shipyard downtime since scrubber installations are mostly done and the fear of IMO2020 has passed due to lower fuel prices (and spreads), several factors should keep supply growth under control, including uncertainty about propulsion systems, unknown future emission regulations, tighter financing and volatile dry bulk market conditions. At the same time, scrapping of older tonnage is possible once the scrap yards reopen in Bangladesh, India and Pakistan if fuel prices rebound and/or dry bulk rates fall back again.

Upward bias continues into 3Q2020. In contrast to the across the board weakness in 1Q2020, there was an overall upward bias in the Baltic Dry indices in 2Q2020. In 2Q2020, the overall BDI index was up 32% versus 1Q2020, led by the 1,112% move in the BCI. The BPI index was up more marginally by 5% and the BSI dropped 17% as the 1Q2020 weakness lingered. 

Could 2020 be a repeat of last year? So far, the moves in the BDI and other sub indices are following the same pattern this year as last year. Last year, the BDI dropped 42% in 1Q2019, but staged a recovery and moved higher in the middle two quarters of the year. The BDI averaged 790 in 1Q2019, 990 in 2Q2019 and 2,030 in 3Q2019 before falling back to 1,562 in 4Q2019. 2020 looks similar with the BDI averaging 592 in 1Q2020 and 782 in 2Q2020. While the weakness in 1Q2020 was more severe and BDI averages are lower this year, the 2Q2020 high of 1,799 was well above the 2Q2019 high of 1,354.

We remain constructive on the dry bulk market outlook despite the continued overhang of COVID-19 due to firming demand and muted supply growth. While there will be less shipyard downtime since scrubber installations are mostly done and the fear of IMO2020 has passed due to lower fuel prices (and spreads), several factors should keep supply growth under control, including uncertainty about propulsion systems, unknown future emission regulations, tighter financing and volatile dry bulk market conditions. At the same time, scrapping of older tonnage is possible once the scrap yards reopen in Bangladesh, India and Pakistan if fuel prices rebound and/or dry bulk rates fall back again.

According to Clarksons data from June 2020, the total dry bulk market trade approximates 5.0 billion tons per year. There are two major sectors of the dry bulk market, major and minor.

Figure 1: Dry Bulk Market Asset Classes


Source: Company reports and Noble Capital Markets estimates.

The major bulk sector represents about 60% of total dry bulk market trade. Two commodities, iron ore and coal, represent almost 90% of major bulk market trade. Iron ore is the largest component of the major bulk trade and it represents about 28% of total dry bulk market trade. Coal is the second largest component of the major bulk market trade and it represents about 24% of total dry bulk market trade. Since iron ore and coal represent almost 90% of major bulk trade and most of those commodities are moved on larger dry bulk vessels, like Capes and Panamaxes, rate volatility is very high.  

The minor bulk sector represents the remaining 40% of total dry bulk market trade. In contrast to the major bulk sector, the minor bulk sector is more diversified and less concentrated than the major bulk sector. Combined the three top commodities (grain, steel, and forest products) in the minor bulk sector total about 24% of total dry bulk market trade, or the equivalent of the second largest commodity, coal, trades in the major bulk sector. Grain is the largest component of the minor bulk sector and it represents about 9% of total dry bulk market trade. Steel is the second largest component on the minor bulk sector and it represents about 8% of total dry bulk market trade. Forest products are the third largest component of the dry bulk market trade and it represents about 7% of total dry bulk market trade. The remaining components of the minor bulk trade are very diverse and much smaller, such as cement, bauxite, fertilizer and scrap steel. Given the smaller size and more diverse components, and almost all of the components of the minor bulk trade are moved on Supramaxes, rate volatility in that sector tends to be more muted with high lows and lower highs.

The Baltic Dry Index (BDI) closed at 1,810 last week, which was 1% higher than the end of 2Q2020, 3% lower than a year ago and 66% higher than yearend 2019. The BDI closed 1,799 at on June 30th and averaged 782 in 2Q2020, which was 32% higher than the 1Q2020 average of 592 and 21% lower than 2Q2019 average of 990.

Figure 2: Baltic Dry Bulk Index (BDI)  


Source: Baltic Exchange via Capital Link.

While the BDI average was higher in 2Q2020, the move was mainly attributable to a strong move in June. The BDI averaged 659 in April, up slightly from 601 in March, but dropped sharply in May to an average of 489 before rebounding swiftly to average 1,146. In 2Q2020, the BDI fluctuated in the range of 393-1,799, which is well above the range of 411-976 seen in 1Q2020.

The Baltic Capesize Index (BCI) closed at 3,333 last week, which was 23% lower than the end of 2Q2020, 6% lower than a year ago and 71% higher than yearend 2019. The BCI closed at 4,320 at on June 30th and averaged 1,147 in 2Q2020, which was 1,112% higher than the 1Q2020 average of 95 and 11% lower than the 2Q2019 average of 1,268.

Figure 3: Baltic Capesize Index (BCI)


Source: Baltic Exchange via Capital Link.

The swings were very large in 1H2020, as the significant upward move in 2Q2020 followed a 97% drop in 1Q2020 versus 4Q2019. In both of the first two quarters, the BCI was negative with low points of -372 in 1Q2020 and -48 in 2Q2020. In 2Q2020, the BCI fluctuated in the range of -48-4,325, which is close to the range of -372-1,646 seen in 1Q2020.

The Baltic Panamax Index (BPI) closed at 1,587 last week, which was 26% higher than the end of 2Q2020, 18% lower than a year ago and 42% higher than yearend 2019. The BPI closed at 1,257 at on June 30th and averaged 823 in 2Q2020, which was 5% higher than the 1Q2020 average of 787 and 31% lower than the 2Q2019 average of 1,189.

Figure 4: Baltic Panamax Index (BPI)


Source: Baltic Exchange via Capital Link.

The BPI followed a similar pattern of 1Q2020, with the April and May averages dropping sequentially before staging a solid recovery in June. In 2Q2020, the BPI fluctuated in the range of 599-1,257, which is close to the range of 520-1,068 seen in 1Q2020.

The Baltic Supramax Index (BSI) closed at 835 last week, which was 22% higher than the end of 2Q2020, 5% lower than a year ago and 16% higher than yearend 2019. The BSI closed at 683 at on June 30th and averaged 497 in 2Q2020, which was 17% lower than the 1Q2020 average of 596 and 34% lower than the 2Q2019 average of 753.

Figure 5: Baltic Supramax Index (BSI)


Source: Baltic Exchange via Capital Link.

The BSI was the weakest sub sector and 2Q2020 had a downward bias with lower lows and lower highs. In 2Q2020, the BSI fluctuated in the range of 383-683, which was lower than the range of 383-683 in 1Q2020. The first two months of the quarter were weak, with averages of 429 in April and 450 in May, but the BSI moved higher in June and averaged 598. Similar to the other indices, the BSI is off to a solid start in 3Q2020 and is currently 22% above the quarter end level and well above the 2Q2020 average.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc.. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc..

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public
appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS % OF SECURITIES COVERED % IB CLIENTS
Outperform: potential return is >15% above the current price 88% 43%
Market Perform: potential return is -15% to 15% of the current price 12% 3%
Underperform: potential return is >15% below the current price 0% 0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)
Report ID: 11567

Comtech (CMTL) – Gilat Acquisition Up in the Air; Provides Business Update

Posted on by Admin

Tuesday, July 14, 2020

Comtech Telecommunications Corp. (CMTL)

Gilat Acquisition Up in the Air; Provides Business Update

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Gilat. Yesterday, Comtech amended its original filing made last week to potentially terminate the Gilat merger agreement. Comtech now believes Gilat has suffered a Material Adverse Effect (MAE). If accurate, Comtech would not be required to close on the acquisition of Gilat.

    $54 Million NG 911 Contract. Yesterday, Comtech announced it had been awarded a $54 million contract to provide NG 911 technologies for the State of South Carolina. Initial funding for the contract totals $16.9 million. As part of the award, each local 911 center and counties will have the option to purchase state-of-the-art Solacom Call Handling Equipment. We view this and other recent awards as confirmation of …



    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Palladium One Resumes Drilling at The Läntinen Koillismaa PGE-Cu-Ni Project in Finland

Posted on by Admin

Palladium One Resumes Drilling at The Läntinen Koillismaa PGE-Cu-Ni Project in Finland

July 14, 2020 –
Vancouver, British Columbia – Palladium One Mining Inc. (
TSX-V: PDM, FRA:
7N11, OTC: NKORF) (the “Company” or “Palladium One“) is pleased to report that it is preparing to resume its drill program, in August, at the Läntinen Koillismaa (“LK”) PGE-Cu-Ni Project, located in north central Finland.  Initial drilling will be focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South zone, which hosts a greater than four (4) kilometer long Induced Polarization chargeability anomaly. (Figure 1)

In March 2020, the Phase 1 exploration program was suspended due to the COVID-19 pandemic (see news release – March 24, 2020). Initiated in January 2020, the Phase 1 program completed several tasks prior to being suspended, including:

  • 85 kilometers of high-resolution 3D Induced Polarization (IP) survey, covering 12 kilometers (5-survey grid areas) of the 38-kilometer favourable basal contact,
  • 385 kilometers of high-resolution drone-based Magnetic (Mag) survey, covering 17 kilometers of the favourable basal contact,
  • 1,920 meters of a 5,000-meter planned diamond drilling program.

At the LK project, IP has proven very reliable in identifying PGE-Ni-Cu mineralization. During the winter program, multiple new and significant IP chargeability anomalies were outlined – see below for highlights.  The high-resolution magnetic survey, which was also undertaken earlier this year, proved invaluable for structural interpretation and in outlining prospective peridotitic rocks, which commonly host PGE-Cu-Ni mineralization. Integration and 3D modelling of this data has produced numerous high-quality drill targets for testing.

President and CEO, Derrick Weyrauch commented “To date our exploration program has been very successful.  We identified an abundance of large, high-quality drill targets throughout the LK project. With
the large number of excellent drill targets at hand, we are taking a very disciplined approach to drilling prioritization.  A prime example is Kaukua South (Figure 1.), when we began the winter program this was an interesting but poorly understood zone. As multiple IP results
demonstrated, we learned that Kaukua South extends for over 4 kilometers of strike length, of which 3.5 kilometers has never been drill tested. Considering that Kaukua South has known PGE-rich mineralization similar to the Kaukua
deposit, it will be a primary focus of our resumed drill program“.

 

Figure 1. Plan view of the 2008 and 2020 (current) IP survey in the Kaukua Area. The 2008 IP survey area is outlined in blue, while the 2020 survey is outlined in green. The Kaukua deposit’s optimised open pit is outlined by a dashed black line. The Kaukua deposit hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq (see press release September 9, 2019). The newly expanded Kaukua South Zone is outlined by a dashed orange line. The 2008 IP survey was instrumental in identifying the Kaukua Deposit. Note that the 2008 survey used different equipment, consisting of a 3-line 3D system, whereas the 2020 survey used a 5-line 3D system, as a result the two surveys are not exactly comparable.

Highlights of Phase 1 Exploration Program Results, Before
Suspension Due to COVID

  • IP Survey Grid #1 @ Kaukua
    South     (~400 meters south of the Kaukua deposit)
    • Discovered a chargeability anomaly over 4,000 meters long, including 3,500 meters which has never been drill tested (Figure
      1      ), (see news release -April 14, 2020).
    • Extending the known PGE-rich mineralization is a top priority when drilling resumes (e.g. 32.95m @ 1.05g/t PGE (0.74g/t Pd, 0.24g/t Pt, 0.07g/t Au), and 0.17% Cu, 0.13% Ni) in hole KAU08-035).
  • IP Survey Grid #2 @ Murtolampi (~2,000 meters northeast of the Kaukua deposit)
    • Discovered a 750-meter long chargeability anomaly the core of which has never been drill tested.
    • This anomaly is associated with high PGE prospecting samples collected in 2019 (e.g. prospecting sample NP-LK-003 which returned 3.11g/t PGE (1.86g/t Pd, 1.11 g/t Pt, 0.14 g/t Au), and 0.78% Cu, 0.13% Ni) (see news release August 12, 2019).
    • The anomaly is proximal to limited, shallow (~40-meter deep), historic drill holes having high PGE values from the 1990’s, that were never followed up with more drilling, (see news release – March 10, 2020).
  • IP Survey Grid #3 @ Haukiaho (~12,000 meters south of the Kaukua deposit and host to the historic Haukiaho resource)
    • Discovered three new chargeability anomalies (see news release – May 7, 2020). 
    • The western anomaly corresponds with the 2013 historic Haukiaho resource.
    • The central anomaly occurs underneath the bulk of the historic drilling in this area, suggesting the best mineralization has not been tested.
    • The eastern anomaly is associated  with sparse shallow historic drilling and occurs underneath 2019 prospecting sample NP-LK-002 which returned 0.96 g/t PGE (0.18 g/t Pt, 0.56 g/t Pd, 0.21 g/t Au) 0.51% Cu, 0.33% Ni  (see news release August 12, 2019)
  • IP Survey Grid #4 @ Haukiaho East (~7,500 meters east of the historic Haukiaho resource)
    • Discovered a 1,600-meter long chargeability anomaly (see news release – May 26, 2020)
    • The anomaly is coincident with a strong magnetic high suggesting peridotitic rocks, which are characteristic of Haukiaho-style PGE-Ni-Cu mineralization.
  • IP Survey Grid #5 @ Tilsa (~6,000 meters west of the historic Haukiaho resource)
    • Discovered a new 1,000-meter long chargeability anomaly (see news release – June 11, 2020).
    • The strongest part of the newly identified chargeability anomaly has never been drill tested.
    • The survey also identified two other parallel chargeability and magnetic anomalies possibly representing fault repetitions of the favourable basal phase of the Koillismaa complex.
  • Diamond Drilling
    • The Company completed twelve (12) drill holes (1,920 meters), prior to the suspension of drilling in March 2020, located in the following zones:
      • Kaukua Deposit Area, 6 holes.
      • Kaukua South Extension, 1 hole.
      • Murtolampi, 2 holes.
      • Haukiaho, 3 holes
      • All assay results are pending.

Qualified Person
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One
Palladium One Mining Inc.
is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Läntinen Koillismaa (“LK”) and Kostonjarvi (“KS”) PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. All projects are 100% owned and are of a district scale.  LK is an advanced project targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly.  Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 3,100-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

ON BEHALF OF THE BOARD
“Derrick
Weyrauch”
President & CEO,
Director

For further information contact:
Derrick Weyrauch,
President & CEO
Email: info@palladiumoneinc.com

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

This press release is not an offer or a solicitation of an offer
of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

E.W. Scripps (SSP) – Cashing In

Posted on by Admin

Tuesday, July 14, 2020

E.W. Scripps Company (SSP)

Cashing In

The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation�s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Sale of Stitcher announced. The company announced the sale of its podcasting business, Stitcher, to Sirius XM for a total price (which includes earn outs) of $325 million, better than expected. The price includes $265 million in an upfront cash payment and $60 million in earn outs, spread over 2 years. Net proceeds are expected to be $210 million in the first year and $45 million over the next two years, which will be earmarked for debt reduction. The transaction is expected to close in Q3.

    Nexstar executes option. Nexstar announced plans to purchase WPIX TV from E.W. Scripps for predetermined price of $75 million. The transaction is expected to close in Q4. The company is expected to use the …


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Orion Group Holdings (ORN) – $15 million Dredging Award Confirmed

Posted on by Admin

Tuesday, July 14, 2020

Orion Group Holdings (ORN)

Additional Work Awarded. Outlook Remains Favorable.

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Dredging award confirmed. Yesterday, ORN confirmed the award of a $14.65 million contract that we discussed in a June 30th research report. There were two other bids, and the work requires dredging ~1.8 million cubic yards of material to maintain channels between the Padre Island jetties and the entrance to Port Mansfield. The work begins in September and will be completed in 1Q2021 so it adds some visibility to late 2020 and early 2021. The work is a small part of the $5 billion of federal funding to USACE for recovery efforts post Hurricane Harvey.

    Risk to existing projects is moderating. Despite moves to curb the spread of COVID-19, work continues on the Terminal 5 upgrade and the Fairview Avenue North bridge replacement in Seattle. Also, the crude oil price recovery dampens some risk on the pacing of …


    Click to get the full report.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Can One “Do Good” and “Do Well” in Tandem?

Posted on by Admin

ESG Investing: Is Everything Else Irresponsible?

Responsible investing dates back as far as investing itself. In the 18th Century, Quakers and Methodists had both laid out clear guidelines to their followers over the types of companies in which they should invest, as did a range of other religious groups. Responsible investment became more formalized in the 1960s around the time the mutual fund industry started to gain acceptance. Questions around responsible investment reflected the social issues of the day, including the rise of the civil rights movement. It has continued to evolve as those demands from society have changed.

ESG (Environmental, Social, and Governance) investing refers to a class of investing that is also known as “sustainable investing.” “Sustainable Investing is an umbrella term for investments that seek positive returns and long-term impact on society, environment, and the performance of the business.

Notably, there are several different categories of sustainable investing, including impact investing, socially responsible investing, ESG, and values-based investing. Investors typically assess ESG factors using nonfinancial data on environmental impact (such as climate change and carbon emissions), social impact (including items such as employee satisfaction), and governance attributes (such as board structure). A key question is whether investors can “do well” in their investments while at the same time “doing good” from a societal perspective.

 

How Big Is ESG Investing?

Globally, the percentage of both retail and institutional investors that apply environmental, social, and governance (ESG) principles to at least a quarter of their portfolios jumped from 48% in 2017 to 75% in 2019. Reportedly, the largest amount of sustainable investing assets is in Europe, totaling $14.1 trillion, followed by the United States with $12 trillion. According to various sources, from 2014 to the beginning of 2018, assets under management with an ESG mandate held by retail and institutional investors grew at a four-year compound annual growth rate of 16% in the United States.

The Deloitte Center for Financial Services (DCFS) expects client demand to drive ESG-mandated assets to comprise half of all professionally managed investments in the United States by 2025. According to the DCFS, investment managers are likely to respond to this demand by potentially launching up to a record 200 new ESG funds by 2023, more than double the previous three years.

The International Monetary Fund estimates there are now more than 1,500 equity funds with an “explicit sustainability mandate.” These funds control nearly $600 billion in assets, up from roughly $200 billion in 2010. Overall, ESG-listed funds still have some way to go before becoming mainstream, representing less than 2% of the total investment fund universe. A hurdle to making sustainable active management funds more widespread is anecdotal evidence that their fees are often higher than those of other active funds, according to the IMF research.

 

Issues with The ESG Approach

While adopting an ESG approach and investing in ESG funds sounds laudable, there are some concerns about the transparency and quality of ESG disclosures. For example, from the company perspective, most ESG reporting by US companies is voluntary, and the content of those reports is left to company

discretion. According to research by Christensen, Hail, and Leuz (2019), a review of accounting and finance academic work showed that there currently is substantial variation in disclosures. This situation makes objective comparisons of companies’ ESG practices quite difficult for investors.

Looking at investment managers, a large number of them commit to such initiatives as the Principles for Responsible Investing. Still, the extent of actual implementation is not clear, as the large majority of asset managers do not disclose precisely how ESG factors inform their investment decisions.

Finally, there is considerable divergence in the metrics and methodologies used among ESG data providers. There is no list of agreed-upon ESG issues among the data providers. Research by Gibson, Krueger, Riand, and Schmidt (2019), highlights that ESG ratings diverge considerably. According to the research, the average correlation between overall ESG ratings of the six major providers of ESG data was less than 50%.

Morningstar has found that ESG implementation has not been defined consistently, partly because ESG investing is evolving. In the asset management industry, where active management faces competitive pressure from index investing, ESG strategies have been the bright spot in terms of new funds being launched and receiving inflows. This raises the question of, are funds labeling themselves as ESG in order to attract assets?

 

Does ESG Investing Outperform?

So, the $64,000 question is, can one do well by doing good?

Recent research demonstrates that ESG metrics may, in fact, aid the quest for alpha. The study backtested ESG metrics for materiality and found that a strategy that solely based its investment decisions on these metrics outperformed a global composite of stocks, strengthening the case for an active ESG investment strategy. In its October 2019 Global Financial Stability Report, IMF researchers found the performance of “sustainable” funds is comparable to that of conventional equity funds. “We don’t find conclusive evidence that sustainable investors underperform or outperform regular investors for similar types of investments,” Evan Papageorgiou, an author of the research, and deputy division chief in the Monetary and Capital Markets Department of the IMF told CNBC Wednesday.

Morningstar found that 41 of the 56 Morningstar’s ESG indexes outperformed their non-ESG equivalents (73%) since inception. Morningstar noted that performance across the range tends to be strong. ESG indexes also favor companies with healthier balance sheets, stronger competitive advantages, and lower volatility than their mainstream counterparts.

In summary, while what makes an ESG company appears to be in the “eye of the beholder” today, it does not appear that investors give up a potential return by adopting ESG investing principles.

 

Sources:

Traditional TV Stations ready to Sign Off?

Copying the Brightest Investment Ideas

Self-Directed Investors Get Unexpected Benefit from Lockdown

 

Enjoy Premium Channelchek Content at No Cost

 

ESG And Responsible Institutional Investing Around The World

What is ESG Investing?

Advancing environmental, social, and governance investing

‘Sustainable’ investors match the performance of regular investors, new IMF research finds

ESG investing is a ‘complete fraud,’ Chamath Palihapitiya says

A short history of responsible investing

Equity Markets Give a Lesson in Behavioral Psychology

Posted on by Admin

Coronavirus, Stock Market Strength, and Elevators

Back in 1962, the TV show Candid Camera used its hidden cameras as part of a scientific study to learn about human behavior. Along with three of the show’s actors and some unsuspecting passersby, what they discovered was both revealing and entertaining. It also provides an essential understanding of human behavior that impacts investment decisions. In a black and white episode, the show helped in one of a series of trials called the Asch conformity experiments. Candid Camera’s episode was titled “Face the Rear.” Dr. Solomon Asch had been conducting different tests at Swarthmore College as part of his research for over six years. Through his various social behavior trials, he was able to gauge the apparent human disposition to conform. The different scientific experiments yielded some useful results for understanding what may be driving the stock market 58 years later.

In “Face the Rear,” the Psychologist had two actors enter an elevator and take the abnormal position facing the back wall (not the door). They then waited for an unsuspecting test subject to enter the elevator; at this point, a third actor would board the lift and also face the back wall. With no encouragement, other than “fitting in,” the test subjects would, consistently, look around, then decide “by themselves” to also turn and face the back wall of the elevator. This information about human behavior may shed light on the strength of today’s equity markets.

Investors are Facing the Rear

Over the past few months I’ve been speaking to self-directed investors, fiduciaries, fund managers and other market players whose analysis I respect. Our discussions have struggled to uncover the reason for this years relentless upward climb in stocks. Most of these experienced investors and traders agree; all factors considered, they’d expect the market to be, at best, cautiously optimistic. At worst, searching each day for a new bottom. We’re all guessing at what does not, given what we all know, make sense. The conjecture offered includes high savings rates,  supportive Fed policy, “it’s all big tech,” “the vaccine is near,” forward-looking investors, etc. However, we all believe there is nothing in recent market highs that conforms to past market behavior.

The other day I tried a different approach and got different results. I thought, perhaps we’re all asking the wrong question. We’ve been asking why the market is going up in spite of some of the most negative and uncertain economic conditions in history. We actually already know the answer; the stock market goes up when there are more buyers than sellers. It’s that simple. So the better question, what we really are trying to learn is, why the heck are there more buyers than sellers?

Everyone’s Going Up

The science of economics pays a lot of attention to statistics that measure hard data. It’s a social science, but it can only count what can be counted. And it can only count that after the fact. It’s a discipline with its predictive basis in supply and demand, and a portion of demand is driven by crowd psychology. The herd doesn’t always face in the direction you’d reasonably expect.  But the human need to conform, as Dr. Salomon Asch proved with six years of various experiments, is a part of being human. Additionally, follow-through of market trends is driven largely by what is “working” at the time. Investors’ expectations of other investors’ future actions is how money is made. There is no right or wrong; if the crowd is moving in one direction, that is the right direction (for now). Herd behavior is the best answer I’ve found for the question, “why are there more buyers than sellers?”

The main ingredient and action from investors that create speculative bubbles, even when many investors feel the sentiment is incorrect has always been the desire to do what other investors are doing. At the extreme, price bubbles then grow, and acceptable valuations get redefined. Then the fear-of-missing-out behavior creates worry, even among contrarians. Logic can be found, but it isn’t driving behavior any longer. One by one, logical investors may move in a direction that they are not comfortable with because that has been the easiest path, despite concerns.  

Let’s Blame the Media

It has become fashionable to blame the media for everything.  In the spirit of herd behavior, for this section, please allow me to join the blame-the-media herd. Rest assured, to be even more convincing, I’ll quote experts – which is always in fashion.

Nobel Laureate in economics, Professor at Yale University, and co-creator of the Case-Schilling Index of House Prices recently wrote:

“…most people have no way to
evaluate the significance of economic or scientific news. Especially when
mistrust of news media is high, they tend to rely on how people they know
respond to news. This process of evaluation takes time, which is why stock
markets do not respond to news suddenly and completely, as conventional theory
would suggest. The news starts a new trend in markets, but it is sufficiently
ambiguous that most smart money has difficulty profiting from it.” – Robert J. Schiller, Understanding
the Pandemic Stock Market

Mr. Schiller believes people look to their peers rather than blindly follow talking heads on TV. We’ve seen this occur with peer groups on message boards and social media as they have bought stocks of bankrupt and near-bankrupt companies. Previous logic and methodology would suggest these companies should have been avoided. The mainstream news sources have continually poked fun at this group of online investors, but the short track record thus far has validated their actions. In a June 15th conciliatory article, CNBC quoted the head of Quantitative Research at Societe Generale:

“For all the mocking of Robinhood investors, their timing back into the market looks impeccable, with a
significant pick-up in holdings as equity markets bottomed in mid-March” – Andrew Lapthorne

When it comes to financial markets and other, more dubious, money-making plots like chain letters and Ponzi schemes, money continues to be made as long as there is new money to be found. So, for as long as market participants are following each other, the current bullishness will persist. There is, of course, a finite amount of US Dollars, so in theory, upward movement cannot last forever. However, with interest rates near zero, there is still plenty of investable cash returning less per year than stock market participants earn in a day. That is a strong incentive to consider equities when you may not otherwise have.

Artificial Markets

Price discovery of all kinds is, in part, based on consumer or investor alternatives. When the masses are choosing one item over another, their decisions impact price direction, and price direction depends on the environment. A bag of popcorn at a movie may cost three times the price of making and eating it at home, but the alternative is not eating popcorn at the movie or eating other more expensive items available. So the current price works. No one would pay $6.50 for a bag at home. Should people suddenly not buy it at current prices, the theater has plenty of room (over their cost) to lower what they charge movie-goers until they hit the price where it is again being purchased. The same is true for wine at a restaurant, soda at MacDonald’s, and everything else. That is everything except a large portion of the bond market. The Fed is controlling a large swath of prices of the bond market; they are not market-priced. The central banks promise to keep rates at zero and flatten the curve by setting a yield target over which they may have a running bid to all sellers, prevents this area of the curve from being market-priced. It is instead artificially priced.

There has been an increased demand for borrowing, individual loans, and small business loans. Corporate loan demand is still strong, but weaker than earlier in the year. This increase in borrowing demand, especially with weakened credit ratings and scores, should put upward pressure on the cost of money. Interest rates would be expected to rise. Yields are below what typically can be expected in the bond market. The higher price of bonds is different than the higher price of stocks. The difference is that the Fed admittedly is rigging the bond market prices. Crowd behavior and other inputs have been replaced with government fine-tuning.

Stock prices are not overtly rigged, but they are tied to interest rates and other alternatives to investing. This impacts investor decisions across all assets.

Take-Away

In the TV episode discussed earlier, people entering the elevator, clearly befuddled, slowly turned around and faced the rear of the elevator. But the experiment did not stop there. In one of the elevator rides, the Candid Camera actors onboard removed their hats (it was 1962). The unwitting rider did the same. When they placed their hats back on, the strength of following the crowd caused the rider to then place their hat back. Crowd psychology, whether it is fitting in, or following peers you trust, is powerful. No amount of looking at lagging and leading indicators, P/E ratios, stochastics, or logic can compete with that.

For now, crowd behavior is the freight train driving the market upward. It may last months; it may change tomorrow. This behavior, like elevators, runs in two directions. Those entering near the top may be putting more at risk than those who entered at ground-level.

Paul Hoffman

Managing Editor

 

Suggested Reading:

Are Individual Investors the Smart Money

Where New Savings and Investment is Coming From

Copying the Brightest
Investment Ideas

Enjoy Premium Channelchek Content at No Cost

Everybody’s doing it, Candid Camera

Understanding the Pandemic Stock Market

Robinhood Traders Nailed the Bottom of the Market

There is No Alternative to Equities (At Least Until the Facts Change)

The Risk of Economic Confidence Waning

Posted on by Admin

The Role of Confidence in Today’s Fed Policy

In recent years, the government and the Federal Reserve have been employing a policy closely aligned to Modern Monetary Theory (MMT).  Under MMT, the government pushes the economy up to a point near full employment by stimulating the economy through fiscal spending and a loose monetary policy.  Government is less concerned with running up the federal debt than expanding the economy.  At the same time, the Federal Reserve declares its intent to keep interest rates low by buying bonds.  By stating interest rate targets, it may not even need to actively buy bonds in the open market as investors will be reluctant to sell bonds at interest rates above targeted levels.  Lower interest rates, of course, serve the government well as its debt grows.  MMT argues that federal debt should not be a concern because the government can always print money.  Given the political attraction of being able to spend without worrying about debt levels, politicians on both sides of the aisle have been embracing MMT.

 

Such a policy has served the United States, Japan, and Germany well in recent years.  But the policy relies on two key assumptions.  First, the government will only stimulate the economy up to the point that it begins to cause inflation.  Once there are signs of inflation, the government will reduce its spending or raise taxes to lower private-sector spending.  If consumers do not believe the government will cut back on spending, they will continue to consume ahead of price increases.  Second, investors must believe that the Federal Reserve will step in to support its price targets.  If investors believe interest rates are about to rise, they will sell bonds and offset any efforts by the Fed to buy bonds.  At the heart of MMT is the belief that federal debt is different from private debt and that rising federal debt will not crowd out the ability of the private sector to issue debt.  To date, foreign investors have actively purchased U.S. debt. 

When the economy shut down this spring, the government stepped in with a heavy dose of both fiscal and monetary stimuli just as it did after the Great Recession when it bailed out troubled banks.  That stimulus helped offset reduced private sector spending.  The action did not lead to inflation because unemployment levels were high.  But what will happen when the pandemic ends?  The economy entered the pandemic in a position of near full employment.  In fact, some would say that it was operating at a rate below the transitional unemployment rate.  When unemployment gets too low, workers are not available to find their way towards fast-growing industries.  This can reduce future economic growth.

 

Source: U.S. Bureau of Labor Statistics

 

So, what happens if furloughed workers return to work at the same time the economy is exploding with pent-up demand.  Under MMT, the government should react by raising taxes and increasing targeted interest rates.  However, raising taxes and increasing interest rates may be difficult to do in a politically charged environment.

 

 

And, what happens if bond market participants lose confidence in the United States?  Interest rates could rise in defiance to the Federal Reserve’s attempts to target low rates.  In such a scenario, the Fed would be forced to print more money to buy bonds, essentially doubling down its bet.  In essence, MMT is comparable to the gambler who keeps doubling his bet, thinking that eventually, he will win and eliminate his losses.  Like the gambler, MMT supporters are not concerned with debt, and the gambit works as long as the holders of debt remain confident that it will be repaid.

 

Suggested Reading:

The Limits of Government Tinkering

Will There be an Explosion in New Acquisitions?

Gold May Become Investors’ Favorite for Several Years

 

Enjoy Premium Channelchek Content at No Cost

 

Sources:

https://www.vox.com/future-perfect/2019/4/16/18251646/modern-monetary-theory-new-moment-explained, Dylan Matthews, Vox, April 16, 2019

https://www.businessinsider.com/modern-monetary-theory-mmt-explained-aoc-2019-3, Jim Edwards and Theron Mohamed, Business Insider, March 2, 2020

https://www.marketwatch.com/story/heres-who-owns-a-record-2121-trillion-of-us-debt-2018-08-21#:~:text=Some%2070%25%20of%20the%20national,information%20from%20the%20U.S.%20Treasury., Jeffry Bartash, MarkeWatch, August 23, 2018

Great Panther Mining Limited (GPL) – 2Q Production Highlights Solid Performance at Tucano

Posted on by Admin

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

    Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Endeavour Silver (EXK) – Higher Commodity Prices Expected to Benefit 2H Performance

Posted on by Admin

Friday, July 10, 2020

Endeavour Silver (EXK)(EDR:CA)

Higher Commodity Prices Expected to Benefit 2H Performance

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 43.7% and 39.1% to 596,545 ounces and 5,817 ounces, respectively. Sequentially, silver and gold production declined 30.4% and 31.4%, respectively. Second quarter production was negatively impacted by the temporary suspension of mining operations in Mexico due government-mandated work restrictions. Mining operations resumed in late May. The bright spot for the quarter was the improvement at the Guanacevi mine as a result of access to new higher grade ore bodies. We expect improvement at the Bolanitos mine beginning in the third quarter.

    Updating estimates. We have narrowed our 2020 loss per share estimate to $(0.14) from $(0.15) based on higher gold and silver prices. Additionally, we have increased our 2021 EPS estimate to …



    Click to get the full report

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Industry Report – Metals & Mining Second Quarter 2020 Review and Outlook

Posted on by Admin

Friday, July 10, 2020

Minerals Industry Report

Metals & Mining: 2020-2Q Review and Outlook

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

  • Mining equities outperform the broader market. During the second quarter of 2020, mining companies (as measured by the XME) gained 31.4% compared to 20.0% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 59.2% and 76.4%, respectively. During the second quarter, gold futures prices increased 12.8%, while silver futures prices increased 31.3%. With respect to base metals, copper, lead, and zinc futures prices increased 21.5%, 10.5%, and 6.0%, respectively.
  • Outlook for precious metals remains favorable. In our view, the outlook for gold remains constructive based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe-haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions. While silver generally lags gold during periods of rising demand for precious metals, silver finally caught a bid in May and finished the month up almost 24%. At this time, we think silver may offer more immediate upside potential relative to gold.
  • Base metals should benefit from a rebound in industrial activity. Following a challenging first quarter, base metals prices, led by copper, responded to a more optimistic industrial demand outlook that was driven by supportive fiscal and monetary policies. Positive demand signals from China, the first country to begin recovering from the negative impacts of COVID-19, rippled across various commodities, including crude oil.
  • Mining equities provide leverage to rising commodity prices. In our view, the backdrop is uniquely constructive for both precious and base metals since both are likely to benefit from a rising tide of fiscal and monetary stimulus and their repercussions. Publicly traded equities of mining & metals equities are an attractive way to gain metals exposure due to their leverage to commodity prices.
Metals & Mining: 2020-2Q Review and Outlook

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.


IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS
 % OF SECURITIES COVERED
 % IB CLIENTS
Outperform: potential return is >15% above the current price
 88%
 43%
Market Perform: potential return is -15% to 15% of the current price
 12%
 3%
Underperform: potential return is >15% below the current price
 0%
 0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)

Report ID: 11557
Metals & Mining | Jul 10, 2020

Encouraging Initial Results from the 2020 Tucano Drilling Program

Posted on by Admin

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

    Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …


    Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.