Energy Fuels (UUUU)(EFR:CA) – 2021-2Q Results Impacted By Rising Costs, Production Delays

Posted on August 2, 2021 by Admin

Monday, August 02, 2021

Energy Fuels (UUUU)(EFR:CA)
2021-2Q Results Impacted By Rising Costs, Production Delays

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

Energy Fuels reported 2021-2Q revenue, losses and loss per share of $0.8 million, $10.8 million, and $0.15 per share. Results were below our expectations due to higher costs associated with Rare Earth Elements (REE) and a later-than-expected first shipment of REE (first shipment was July 7th with revenues falling outside of the quarter). The company continues to idle uranium production and vanadium sales at current prices. Investor focus is justifiably more centered on corporate developments than near-term results.

The Balance Sheet is getting strong. Energy Fuels has $98.8 million of working capital including $79.4 million of cash, ahead of our forecasts. Rising inventories are the reason for higher working capital. In addition, the company has reached an agreement to sell non-core uranium assets for $24 million, which will further boost its cash and working capital position. A strong balance sheet leaves …

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.

The Worst Trading Months of the Year (Statistically)

Posted on August 2, 2021 by Admin



	Image Credit: Pixabay (Pexel)

Looking Back on July and Forward to What are Historically Turbulent Months

For almost 100 years of stock market performance, the only three-month period that averages in the red has been August, September, and October. Specifically, the S&P 500 has had a negative average return of 0.03% from 1928 through 2020 during these months. July has had the best record statistically, with an average return of 1.58%. September is the worst – this last month of summer has only been green 45% of the time. The average decline in the large-cap S&P 500 index for September has been 1.03%.

Looking Back

July 2021 incrementally added to the average gains as it did even better than its historical performance. The S&P 500 gained 2.27% last month. This was the sixth consecutive up month for the index—the longest positive streak since September 2018. The market also racked up 12 consecutive months without a 5% performance dip. The Nasdaq and Dow added 1.2% and 1.3% respectively in July. Utilities, health care, real estate, and technology stocks have been the market leaders.

Volatility increased during the month as concerns the economic recovery may become challenged as some regions in the U.S. and globally may again request or even mandate Covid related business restrictions. This situation continues to be watched closely by market participants.

Looking Forward

The historic numbers for August are not as bad as the combined three-month period (Aug.-Oct.). Statistics show, August has had an average positive return of 0.70% and was up 58.1% of the years. July outperformed its average; if August does the same, it should be worthwhile for equity portfolios.

Volatility is expected to remain in place through August. Traditionally the summer months are more thinly traded, this exacerbates movement. The moves can be expected to continue from persistent inflation concerns. This is tricky at this point in an economic cycle as positive economic numbers that would ordinarily cause a stock market rally will at times cause a selloff as concerns of tighter money weigh more on the market. Concerns of the Fed tapering well ahead of schedule have been ebbing and flowing. The renewed concerns about the effectiveness of the vaccines to create immunity and the challenge of the recovery to stay on track will create news items and statistical releases that will surely gyrate markets. This could be felt, not as up and down in the market, but instead a running back and forth between so-called “Covid stocks” and the counter trade which are “recovery stocks.”

Take-Away

If you’ve stayed in the market, it is hard not to have done well from a historic average standard. July was above average from past Julys and the average for the year-over-year has rewarded those investors with confidence. What we have not experienced and remains to be seen is a downturn in the market. According to the Wall Street Journal, there were 10 million trading accounts opened last year. Presumably, many of these are held by those new to trading. Their experience has only been in an extreme upmarket. Should the market go through several months of negative returns, how will these new investors react. It is clear they have had an impact on the upside throughout last year; the actions of this group must be paid attention to.

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Suggested Reading:

Inflations Impact on Stocks, Four Scenarios

Money Supply is Like Caffeine for Stocks

Small-Caps in the Covid-19 and Treatment Space

“Core PCE” Inflation Spike – Highest 3-Month Rate since 1982

Sources:

https://www.yardeni.com/pub/stmktreturns.pdf

https://www.wsj.com/articles/new-army-of-individual-investors-flexes-its-muscle-11609329600#:~:text=More%20than%2010%20million%20new,in%20to%20bet%20on%20stocks

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Stealth Digital Asset Bill Surprises Crypto Market

Posted on August 2, 2021 by Admin

What’s in the Surprise Cryptocurrency Bill

A Bill regulating digital assets was introduced in the House last Thursday (July 29). It would become a comprehensive law that provides for rules and oversight on everything from stablecoins, to regulators of decentralized finance (DeFi), the validity of exchanges, and other related topics.

This bill surprised most involved in digital markets as it was submitted by Rep. Don Beyer’s (D-Va.) who is not known for any involvement in crypto-currencies or digital assets. Yet the representative from Virginia presented the 58-page “Digital Asset Market Structure and Investor Protection Act,” as the all-inclusive set of rules and laws that would create the regulatory framework for digital assets. In its current form, it defines which type of cryptocurrencies may be securities, which type fall under commodities rules, and builds on tax data systems for reporting.

The bill also hands power to the Treasury Secretary to veto the creation of stablecoins, it directs regulators to define rules to govern decentralized finance (DeFi) and for agencies to determine whether they should create a charter for crypto exchanges.

All-Inclusive

The industry and those that make digital asset transactions would be best served if they know what the rules are (or will be) and that they won’t dramatically change. This bill, if it moves forward, would allow for clarity in ways that make it easier to know what the playing field looks like. The bill covers many areas of the industry, was put together by people who understand both the tech side and the market implications and is specifically about digital assets.

Last week other legislative actions were also taken that involved cryptocurrencies, but they were mixed in with other bills and debates. For example, the infrastructure bill last week included language concerning cryptos. It’s too soon to know whether the new bill has support among Rep. Beyer’s colleagues. Beyer is the chairman of Congress’s Joint Economic Committee and a member of the tax policy-making House Ways and Means Committee.

Central Bank
Digital Currency Authorization

There is language that would authorize the Federal Reserve, to create a CBDC. Recently, the Fed, which is expected to release a position paper in the coming weeks, said it wasn’t sure it had the authority to do so under its current mandate.

Infrastructure
Bill

Last week in the Senate, a bipartisan infrastructure bill included a provision that seeks to raise $28 billion in part by enforcing a broader set of information reporting requirements for crypto users than the U.S. currently has. This provision would require cryptocurrency brokers and investors to disclose their transactions to the Internal Revenue Service.

This is just a small part of funding the infrastructure bill that recognizes that the $2 trillion crypto market could be embraced and taxed.

Securities vs. Commodities

Under the current version of the bill, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would have to more specifically define what aspects of the cryptocurrency market fall under which jurisdiction.

As far as the SEC is concerned, any “digital asset securities” that provide for equity could come under its oversight. As written, if the owner has a right to equity, profits, interest, dividend payments, or voting rights, the token would fall under the bill’s definition of a digital asset security. This would also hold true for an initial coin offering (ICO), tokens issued to finance the development of a product or platform have an equity component.

There is another provision that is important to this fledgling market and industry. This concerns “desecuritization.” The bill creates a path for a token that is treated as a digital asset security to become a cryptocurrency that will not be treated as a security. This answers SEC Commissioner Hester Peirce’s desire to create a safe harbor for crypto projects while in their infancy.

Cryptocurrencies that don’t fall under the SEC’s jurisdiction would fall under the CFTC’s. The bill asks these two regulators to publish proposed rulemaking to classify the 25 most-traded cryptocurrencies and the 25 cryptocurrencies with the highest aggregate as either securities or commodities.

Stablecoin
Issuance

The bill exhaustively defines how the U.S. should look at stablecoins. These are digital assets that trade essentially one-for-one with dollars or other government-issued currency. If passed, this would seem to allow for a CBDC. The stablecoin provision may create hurdles for issuers as it seems to render many illegal. The Treasury Department would have oversight and veto power over the creation and usage of all stablecoins in the U.S. under its terms.

“Beginning on the
date of the enactment of this section, no person may issue, use, or permit to
be used a digital asset fiat-based stablecoin that is not approved by the
Secretary of the Treasury under subsection,” – Digital Asset Securities Law Bill

This appears to give the Treasury Department the ability to restrict trading of any non-government stablecoins. An issuer would need to apply; then, the Treasury would consult with the Fed, the SEC, CFTC, and possibly foreign central banks or financial regulators before deciding whether to approve the proposal. The bill also explicitly prohibits the Treasury from grandfathering any existing stablecoins.

Anonymity

The bill also requires the Financial Crimes Enforcement Network (FinCEN) to draft regulations concerning anonymity-enhancing services as it relates to cryptocurrencies.

“The purpose of the rule … shall be to ensure that anonymizing services, money mule and anonymity-enhanced convertible virtual currencies are not used to prevent association of an individual customer with the movement of a digital asset, digital asset security or virtual currency of which the customer is the direct or beneficial owner,” – Digital Asset Securities Law Bill

This prohibits crypto exchanges or others from letting customers use mixers or similar services.

DeFi

While the bill does not explicitly define regulations concerning DeFi, custody, wash trading, or trading platforms, it does direct federal agencies to evaluate and publish reports on regulation recommendations.

Take-Away

All digital assets are getting much more attention in Washington. Protecting consumers and finding new sources of revenue to fund projects along with better surveillance seems to be driving this attention. The Chairman of the Joint Economic Committee put forward a comprehensive bill that could answer and clarify questions the market has been asking and tie the hands and reduce the attractiveness of digital assets.

Keep up with blockchain news by registering to receive emails from Channelchek. We follow events concerning blockchain technologies and many other industries that are important to investors.

Suggested Reading:

What is the Feds Position on Crypro, Stablecoin, and CBDCs

Cryptocurrencies and the Howey Test

Decentralized Apps Using Blockchain to Change the Internet

Repurposing Powerplants for Crypto-mining

Sources:

https://beyer.house.gov/uploadedfiles/beyer_028_xml.pdf

https://beyer.house.gov/news/documentsingle.aspx?DocumentID=5307

https://www.nytimes.com/2021/07/30/us/politics/infrastructure-deal-cryptocurrency.html

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Voyager Digital Acquires Leading Global Cryptocurrency Payment Processing Company, Coinify

Posted on August 2, 2021 by Admin

Voyager Digital Acquires Leading Global Cryptocurrency Payment Processing Company, Coinify

The acquisition accelerates Voyager‘s international expansion and will diversify the company‘s products and revenue streams.

NEW YORK, Aug. 2, 2021 /CNW/ – Voyager Digital Ltd. (“Voyager” or the “Company”) (CSE: VYGR) (OTCQX: VYGVF) (FRA: UCD2), the fastest-growing, publicly-traded cryptocurrency platform in the United States, today announced the acquisition of Coinify ApS, a leading cryptocurrency payment platform with a global user base in over 150 countries. The acquisition accelerates Voyager‘s international expansion and Voyager‘s capabilities into the payment space so that customers will soon be able to make payments directly from their digital asset accounts. The Coinify acquisition also fast-tracks Voyager into the business-to-business payment space.

“As the adoption of cryptocurrency payments gains momentum, the acquisition of Coinify brings a global payment infrastructure to Voyager‘s digital asset ecosystem and will give our rapidly growing customer base of over 1.75 million users a fast, easy, and secure way to make payments from their Voyager accounts,” said Stephen Ehrlich, CEO and Co-Founder of Voyager. “Coinify‘s core values of innovation, security, and scalability are perfectly aligned with Voyager‘s mission of making digital assets accessible throughout the world.”

The Coinify acquisition provides Voyager with an established and effective gateway to the crypto payment industry through its virtual currency payment platform available in Europe, Asia, North America, and South America. Coinify‘s global enterprise services include individual payment processing in 15 major cryptocurrencies and transaction settlement in 20 fiat currencies via their easy-to-integrate Coinify API.

“We are excited to join the outstanding, innovative team at Voyager, and become part of Voyager‘s market-leading offerings, brand, and community, and to rapidly grow merchants utilizing Coinify‘s payment processing technology,” stated Mark Hojgaard, CEO and Co-founder of Coinify. “The combination positions Voyager as the go-to choice for businesses and individuals seeking an efficient transaction vehicle for a wide range of purchases globally.”

Payments are the next step in the growth of Voyager, whose user base grew over 1400% in the first six months of 2021. The company plans to provide payment options to its customers, many of whom are small to midsize business owners. Crypto payment usage has grown substantially over the last 12 months and Voyager will be able to capitalize on that growth with a broadening line of products and services.

Lewis Bateman, Voyager‘s Chief International Officer said, “The acquisition of Coinify will greatly accelerate our expansion into Europe and help us meet the growing demand for our current product offering internationally.”

Under the terms of the share purchase agreement, the consideration to Coinify shareholders will consist of 5,100,000 of newly issued shares of Voyager Digital Ltd. common stock and US$15 million in cash. As part of the agreement, the Company will retain US$5.5 million of cash on the Coinify balance sheet. Voyager will retain substantially all current Coinify employees, entering into employment agreements with key members of the management team. The transaction is expected to be immediately accretive to both revenue and cash flow.

Of the 5,100,000 shares, 1,500,000 shares are subject to a lock-up agreement which provides that they may only be sold 30 days after the Closing Date, pursuant to trades that do not in the aggregate exceed 5% of the average daily trading volume, 3,281,250 shares are subject to a lock-up period ending on the earlier of (i) 12 months from the closing date and (ii) the date the Company is listed on NASDAQ and 318,750 of the shares will be issued 12 months from the closing date.

In connection with this transaction, Fort Capital Partners acted as Financial Advisor to Voyager and Stifel KBW acted as Financial Advisor to Coinify. Legal advisors to Voyager were Fasken, Baker McKenzie, and Accura. Bruun and Hjejle acted as legal advisor to Coinify.

About Voyager Digital Ltd.
Voyager Digital Ltd. is a publicly traded holding company whose subsidiaries operate a crypto-asset platform that provides retail and institutional investors with a seamless solution to invest in and trade crypto assets. The Voyager platform provides customers with competitive price execution through its smart order router and a custody solution on a wide choice of popular digital assets. Voyager was founded by established Wall Street and Silicon Valley entrepreneurs who teamed up to bring a better, more transparent, and cost-efficient alternative for trading cryptocurrencies to the marketplace. Please visit us at https://www.investvoyager.com for more information.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. No securities regulatory authority has either approved or disapproved of the contents of this press release.

Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking statements” that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “seek”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors may include, but are not limited to, those risk factors outlined in the Company’s Management Discussion and Analysis as filed on SEDAR. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Press Contacts
Michael Legg
Chief Communications Officer, Voyager Digital
(212) 547-8807
mlegg@investvoyager.com

Voyager Public Relations Team
pr@investvoyager.com

SOURCE Voyager Digital Ltd.

Release – Voyager Digital Acquires Leading Global Cryptocurrency Payment Processing Company Coinify

Posted on August 2, 2021 by Admin

Voyager Digital Acquires Leading Global Cryptocurrency Payment Processing Company, Coinify

The acquisition accelerates Voyager‘s international expansion and will diversify the company‘s products and revenue streams.

Voyager Public Relations Team
pr@investvoyager.com

SOURCE Voyager Digital Ltd.

Release – Comtech Telecommunications Corp. Awarded Contract Valued up to $48.5 Million for Statewide Next Generation 911 Technologies and Services

Posted on August 2, 2021 by Admin

Comtech Telecommunications Corp. Awarded Contract Valued up to $48.5 Million for Statewide Next Generation 911 Technologies and Services

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 2, 2021–
August 2, 2021—
Comtech Telecommunications Corp. (NASDAQ: CMTL), a global leading provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that during its fourth quarter of fiscal 2021, it was awarded a statewide contract to provide Next Generation 911 (“NG911”) services for the
State of Iowa. This multi-year contract includes contract extension options and is valued up to
$48.5 million. Initial funding for the contract is
$23.0 million.

The award is for continued operation of Comtech’s NG911 services that provide Iowa’s citizens with advanced communication capabilities when calling for emergency services, including police, fire and emergency medical services. Through use of Comtech’s Next Generation Core Services (“NGCS”), the
State of Iowa offers a seamless, coordinated and efficient NG911 system to all of Iowa’s local 911 centers.

“We are honored in this vote of confidence in
Comtech. With this award,
Iowa has recognized not only our market-leading solutions, but the high performance and reliability standards we bring to support Iowans with mission-critical emergency services,” said Fred Kornberg, Chairman of the Board and Chief Executive Officer of
Comtech Telecommunications Corp.

Comtech’s highly reliable technologies enable the successful handling of over five million 911 calls and texts each month. For more information about Comtech’s 911 products and services, visit www.comtech911.com.

Comtech Telecommunications Corp. is a leading provider of next-generation 911 emergency systems and critical wireless communication technologies to commercial and government customers around the world. Headquartered in
Melville, New York and with a passion for customer success,
Comtech designs, produces and markets advanced and secure wireless solutions to customers in more than 100 countries. For more information, please visit www.comtechtel.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such
Securities and Exchange Commission filings.

Comtech Investor Relations:
631-962-7005
investors@comtech.com

Source:
Comtech Telecommunications Corp.

Release – Energy Fuels Announces Q2-2021 Results

Posted on August 2, 2021 by Admin

Energy Fuels Announces Q2-2021 Results, Including Robust Balance Sheet, Market Leading U.S. Uranium and Vanadium Position & Launch of U.S. Commercial Rare Earth Production; Webcast on August 3, 2021

LAKEWOOD, Colo., July 30, 2021 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) today reported its financial results for the quarter ended June 30, 2021. The Company’s quarterly report on Form 10-Q has been filed with the U.S. Securities and Exchange Commission (“SEC“) and may be viewed on the Electronic Document Gathering and Retrieval System (“EDGAR“) at www.sec.gov/edgar.shtml, on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com, and on the Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S. dollars.

Highlights:

At June 30, 2021, the Company had $98.8 million of working capital, including $79.4 million of cash and marketable securities and $29.2 million of inventory. At current commodity prices, the Company’s inventory has a value of $39.1 million.
During the quarter ended June 30, 2021, the Company incurred a net loss of $10.8 million, which included a non-cash mark-to-market increase in warrant liabilities during the quarter of $3.6 million resulting from a significant increase in the Company’s share price.
With several existing uranium mines on standby and significant existing inventories of Company-produced, U.S.-origin uranium, the Company continues to be ready to supply uranium into improved global markets and the proposed U.S. Uranium Reserve once it is established by the U.S. government.
During the first half of 2021, the Company began ramping up to commercial-scale production of a mixed rare earth element (“REE”) carbonate (“RE Carbonate”), as a complement to its uranium business. In July 2021, Energy Fuels commenced deliveries of its RE Carbonate to a separation facility in Europe.
The Company has entered into a definitive agreement to sell a package of Energy Fuels’ non-core conventional uranium projects located in Utah and Colorado to International Consolidated Uranium Inc. (“CUR”). Based on CUR’s current share price, exchange rates and assuming the closing and full performance of the agreement, the current proforma value of this divestment is approximately US$24 million.
The Company has entered into a strategic alliance agreement with RadTran, LLC, a private technology development company, to evaluate the recovery of thorium and potentially radium from the Company’s RE Carbonate and uranium process streams, as a complement to its uranium and RE Carbonate businesses, for use in the production of medical isotopes for emerging targeted alpha therapy (“TAT“) cancer therapeutics.

Mark S. Chalmers, Energy Fuels’ President and CEO, stated:

“Energy Fuels achieved another significant milestone in restoring U.S. rare earth supply chains when we recently announced the successful production of rare earth carbonate from U.S.-sourced natural monazite sand at our White Mesa Mill. We are also very excited about our recently announced Strategic Alliance with RadTran, which has the potential to help produce isotopes from our existing RE Carbonate and uranium process streams for use in cancer therapeutics that can improve human health and ultimately save lives. These two initiatives, which are complementary to our core uranium business, are examples of the unique and valuable capabilities of the White Mesa Mill.

“We also announced the sale of several non-core conventional uranium assets to International Consolidated Uranium. These are licensed uranium assets, with excellent production track-records. But we don’t think markets value these assets appropriately within our portfolio. With this accretive disposition, we hope to unlock value in these excellent assets for our shareholders.

“The outlook for uranium also continues to improve, vanadium markets are strengthening and REE prices continue to exhibit strength. With three fully licensed uranium processing centers — the White Mesa Mill and the Nichols Ranch and Alta Mesa in situ recovery facilities — the largest NI 43-101 resource portfolio among U.S. uranium producers, and almost 700,000 pounds of U.S.-produced U₃O₈ in inventory, the Company remains well-positioned to benefit from a strengthening uranium market and the proposed U.S. Uranium Reserve once it is established by the U.S. government. But what I find most exciting about all this is that not only do we have excellent optionality and exposure to improved uranium markets, we are also leveraging our existing uranium assets to give the Company and our shareholders exposure to vanadium, REEs and potentially medical isotope markets, all as complements to our primary uranium business. Each of these complementary businesses could develop into a significant business for the Company in its own right and bodes well for our quickly developing “Critical Minerals Hub” in the U.S.”

Webcast on Tuesday, August 3, 2021 at 4:00 pm ET (2:00 pm MT):

Energy Fuels will be hosting a video webcast Tuesday, August 3, 2021 at 4:00 pm ET (2:00 pm MT) to discuss its Q2-2021 financial results, rare earth production and other corporate initiatives. To join the webcast and access the presentation and the viewer-controlled webcast slides, please click on the link below:

Energy Fuels Q2-2021 Results Webcast

If you would like to participate in the webcast and ask questions, please dial in to (888) 664-6392 (toll free in the U.S. and Canada).

A link to a recorded version of the proceedings will be available on the Company’s website shortly after the webcast by calling (888) 390-0541 (toll free in the U.S. and Canada) and by entering the code 679255#. The recording will be available until August 17, 2021.

Selected Summary Financial Information:


$000’s, except per share data	Six months ended June 30, 2021		Six months ended June 30, 2020

Total revenues	$	809	$	788
Gross profit (loss)	809		(718)
Operating Loss	(17,189)		(14,276)
Net income (loss) attributable to the company	(21,692)¹		(13,844)
Basic and diluted loss per share	(0.15)¹		(0.12)

$000’s	As at June 30, 2021		As at December 31, 2020

Financial Position:
Working capital	$	98,773	$	40,158
Property, plant and equipment, net	22,819		23,621
Mineral properties, net	83,539		83,539
Total assets	242,180		183,236
Total long-term liabilities	13,852		13,376

Net loss and loss per share for the six months ending June 30, 2021 include a non-cash mark-to-market increase in warrant liabilities of $7.05 million, as a result of a significant increase in the Company’s share price during that period. Net loss and loss per share for the six months ending June 30, 2020 include a non-cash mark-to-market decrease in warrant liabilities of $0.1 million, as a result of an insignificant decrease in the Company’s share price during that period.

Financial Discussion:

At June 30, 2021, the Company had $98.8 million of working capital, including $79.4 million of cash and marketable securities and $29.2 million of inventory, including approximately 691,000 pounds of uranium and 1,672,000 pounds of high-purity vanadium, both in the form of immediately marketable product. The current spot price of U₃O₈, according to TradeTech, is $32.50 per pound (up 7% in 2021), and the current mid-point spot price of V₂O₅, according to Metal Bulletin, is $9.88 per pound (up 83% in 2021). Based on those spot prices, the Company’s uranium and vanadium inventories have a current market value of $22.5 million and $16.5 million, respectively, totaling $39.0 million.

During the quarter ended June 30, 2021, the Company incurred a net loss of $10.8 million, compared to a net loss of $8.2 million for the second quarter of 2020, and a net loss of $21.7 million year-to-date compared to $13.8 million during the first six months of 2020. The increased net losses in 2021 are due primarily to increased development expenditures incurred in ramping up our RE Carbonate production at the White Mesa Mill in Utah (the “Mill“) and a non-cash mark-to-market increase in warrant liabilities during the quarter of $3.6 million and $7.1 million year to date, resulting from an increase in the Company’s share price.

Commencement of Rare Earth Carbonate Deliveries in 2021:

On July 7, 2021, the Company and Neo Performance Materials Inc. (“Neo”) jointly announced that the first container (approximately 20 tonnes of product) of an expected first run of 15 containers of RE Carbonate was successfully produced by Energy Fuels at the Mill and is en route to Neo’s Silmet rare earth separations facility in Estonia, creating a new United States-to-Europe rare earth supply chain.

Monazite sand is widely recognized as one of the most valuable rare earth minerals in the World, due to its superior distributions of magnetic REEs needed for various clean energy, defense and other advanced technologies. Natural monazite sand is currently recovered as a low-cost byproduct of heavy mineral sand (“HMS”) operations in the U.S. and elsewhere in the world. The historic challenge with monazite is that it contains higher concentrations of natural uranium, thorium and other radionuclides relative to other minerals, thereby requiring specific licenses and specialized technical capabilities to handle and process. Energy Fuels currently holds the required licenses, and we have developed the ability to unlock the value of this domestic resource over the past 20+ years of recycling numerous feeds for the recovery of uranium. Energy Fuels’ commercial-scale production of RE Carbonate from U.S.-mined natural monazite sand positions Energy Fuels as the only company in North America currently producing a monazite-derived, enhanced rare earth material.

The Company and Neo also announced the signing of a definitive supply agreement under which Energy Fuels will ship all or a portion of its RE Carbonate to Neo’s Silmet facility for processing into separated rare earth materials used in rare earth permanent magnets and other rare earth-based advanced materials. We believe Energy Fuels is well on its way to creating a new, low-cost, fully integrated U.S. rare earth supply chain that meets the highest global standards for environmental protection, sustainability and human rights, that allows for source validation and tracking from mining through final end-use applications for manufacturers in North America, Europe, Japan and other nations.

We are currently scoping the potential to produce separated REE oxides using proven solvent extraction (“SX”) technology that we have utilized for the recovery of uranium and vanadium over the past 40+ years. We are also evaluating moving farther down the REE supply chain to produce certain rare earth metals, alloys and other products.

Sale of Non-Core Conventional Assets to International Consolidated Uranium Inc:

On July 15, 2021, the Company and International Consolidated Uranium Inc. (“CUR”) jointly announced the signing of a definitive asset purchase agreement under which CUR will acquire a portfolio of Energy Fuels’ non-core conventional uranium projects located in Utah and Colorado, including the Daneros mine, the Tony M mine, the Rim mine, the Sage Plain project, and several U.S. Department of Energy leases. In addition, at closing the Company and CUR will enter into toll-milling and operating agreements with respect to the properties. The consideration payable by CUR to Energy Fuels includes US$2 million cash payable at closing, such number of shares that results in Energy Fuels holding 19.9% of the outstanding CUR common shares immediately after closing, Cdn$6 million of deferred cash payable over time, and up to Cdn$5 million of deferred cash payable on the commencement of commercial production at the properties. Through this accretive disposition, Energy Fuels believes the value of these high-quality, permitted, and past-producing mines can be unlocked for Company shareholders, while also cutting standby costs, earning management fees, and potentially realizing toll milling fees in the future. Based on the current CUR share price, exchange rates and assuming the closing and full performance of the agreement, the proforma value of this divestment is approximately US$24 million.

Collaboration with RadTran, LLC on Recovering Medical Isotopes for Advanced Cancer Therapies:

On July 28, 2021, the Company announced the execution of a Strategic Alliance Agreement with RadTran, LLC, a technology development company focused on closing critical gaps in the procurement of medical isotopes for emerging targeted alpha therapy (“TAT”) cancer therapeutics and other applications. Under this strategic alliance, the Company will evaluate the feasibility of recovering Th-232, and potentially Ra-226 from its existing uranium and RE Carbonate process streams at the Mill and, together with RadTran evaluate the feasibility of recovering Ra-228 from the Th-232 and Th-228 from the Ra-228 at the Mill using RadTran technologies. The recovered Ra-228, Th-228 and potentially Ra-226 would then be sold to pharmaceutical companies and others to produce Pb-212, Ac-225, Bi-213, Ra-224 and Ra-223, which are the leading medically attractive TAT isotopes for the treatment of cancer. Existing supplies of these isotopes for TAT applications are in short supply, and methods of production are costly and currently cannot be scaled to meet the demand as new drugs are developed and approved. This is a major roadblock in the research and development of new TAT drugs as pharmaceutical companies wait for scalable and affordable production technologies to become available. Under this exciting initiative, the Company has the potential to recycle valuable isotopes from its existing process streams, that would otherwise be lost to disposal, for use in the treatment of cancer.

Market Conditions

The outlook for uranium continues to improve, as demand continues to outpace supplies and uranium juniors and financial intermediaries enter the market to purchase uranium and build inventories. The weekly spot price for uranium has increased 4% from $31.25 to $32.50 per pound during the quarter and 7% from $30.40 to $32.50 during the first six months of 2021. The spot price of uranium is currently at $32.50 per pound as of July 23, 2021. Energy Fuels holds 691,000 pounds of U.S.-origin uranium in inventory that we recently produced at our own facilities in the U.S. through our low-cost alternate feed material production, which is among the lowest-cost uranium production in the world today.

Vanadium markets are also strengthening. An improving global economy, coupled with political unrest in South Africa and other factors, has caused vanadium prices to rise 83% this year, from $5.40 per pound as of December 25, 2020 to $8.75 per pound as of June 25, 2021 to $9.88 per pound as of July 30, 2021. Vanadium is a valuable clean energy metal, historically used in steel, master alloys, and chemicals. It is also seeing considerable interest in emerging grid-scale battery technologies used to store renewable energy. Energy Fuels also holds about 1.7 million pounds of finished high-purity vanadium pentoxide in inventory, plus 1.5 to 3.0 million pounds of solubilized vanadium inventory in the Mill’s tailings solutions that we can recover relatively quickly. We also hold large quantities of high-grade vanadium resources at our standby mines where we recently developed new mining techniques that we believe can increase production and lower costs when mining resumes in the future. The Mill was the largest U.S. vanadium producer as recently as 2019.

Finally, REE prices continue to be strong, with the price of NdPr increasing 48% year to date from $78.50/kg on January 4, 2021 to $116.00/kg on July 30, 2021 and 118% from $53.3/kg on July 27, 2020 to date. The Company’s sales price for its RE Carbonate is currently based on the prices of REE oxides, with the price of NdPr being the primary driver of the Company’s RE Carbonate sales price at this time.

Operations Update and Outlook for Period Ending June 30, 2021

Overview

Although the outlook for uranium continues to improve, uranium prices have not risen enough to date to justify uranium production at the Company’s mines and ISR facilities at this time. As a result, uranium recovery is expected to be maintained at reduced levels at current uranium price levels, until such time when market conditions improve sufficiently or the U.S. government buys uranium from the Company following the establishment of the proposed U.S. Uranium Reserve.

The Company will continue to seek new sources of revenue, including through its emerging REE business, as well as new sources of alternate feed materials and new fee processing opportunities at the Mill that can be processed under existing market conditions (i.e., without reliance on current uranium sales prices). The Company is also seeking new sources of natural monazite sands for its emerging rare earth business, and continues its support of U.S. governmental activities to assist the U.S. uranium mining industry, including the proposed establishment of a U.S. Uranium Reserve.

Extraction and Recovery Activities Overview

During the six months ended June 30, 2021, the Company did not recover significant quantities of U₃O₈, and expects to package insignificant quantities of U₃O₈for the remainder of 2021, focusing instead on ramping up and optimizing its RE Carbonate production. This is a reduction from previous guidance of 30,000 to 60,000 pounds of uranium production in 2021. All uranium recovered during 2021 at the Mill is expected to be retained in-circuit at the Mill and not to be packaged in 2021. The Company does not plan to extract and/or recover any amounts of uranium of any significance from its Nichols Ranch Project in 2021, which was placed on standby in the second quarter of 2020 due to the depletion of its existing wellfields. In addition, the Company expects to keep the Alta Mesa Project and its conventional mining properties on standby during 2021.

The Company expects to recover approximately 700 to 1,100 tonnes of RE Carbonate at the Mill in 2021, containing approximately 350 to 550 tonnes of total rare earth oxides (“TREO“), subject to receipt of sufficient quantities of monazite. This is a reduction from previous guidance of 2,000 to 3,000 tons (1,814 to 2,721 tonnes) of RE Carbonate, containing approximately 1,000 to 1,600 tons (907 to 1,451 tonnes) of TREO, in 2021, due to what the Company expects to be a short-term delay in supply of monazite sands to the Mill under the Company’s existing supply agreement. The Company expects to produce no vanadium during the 2021 year.

The Company has strategically opted not to enter into any uranium sales commitments for 2021. Therefore, subject to the proposed establishment of a U.S. Uranium Reserve and general market conditions, existing inventories are expected to remain unchanged at approximately 691,000 pounds of U₃O₈ at year-end. All V₂O₅ inventory is expected to be sold on the spot market if prices rise sufficiently above current levels, but otherwise maintained in inventory. The Company expects to sell all or a portion of its RE Carbonate to Neo Performance materials or other global separation facilities and/or to stockpile it for future separation at the Mill or elsewhere.

About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U₃O₈ to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is ramping up to commercial-scale production of RE Carbonate in 2021. Its corporate offices are in Lakewood, Colorado near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U₃O₈ per year, and has the ability to produce vanadium when market conditions warrant, as well as RE Carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U₃O₈ per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: production and sales forecasts; costs of production; any expectation that the Company will continue to be ready to supply uranium into the proposed U.S. Uranium Reserve once it is established; scalability, and the Company’s ability and readiness to re-start, expand or deploy any of its existing projects or capacity to respond to any improvements in uranium market conditions or in response to the proposed Uranium Reserve; any expectation regarding any remaining dissolved vanadium in the White Mesa Mill’s tailings facility solutions; any expectation that the Company’s recently developed mining techniques can increase production and lower costs when vanadium mining resumes in the future; the ability of the Company to secure any new sources of alternate feed materials or other processing opportunities at the White Mesa Mill; expected timelines for the permitting and development of projects; the Company’s expectations as to longer term fundamentals in the market and price projections; any expectation that the Company will maintain its position as a leading uranium company in the United States; any expectation that the proposed Uranium Reserve will be implemented and if implemented the manner in which it will be implemented and the timing of implementation; any expectation with respect to timelines to production; any expectation that the Mill will be successful in producing RE Carbonate on a commercial basis; any expectation that Neo will be successful in separating the Mill’s RE Carbonate on a commercial basis; any expectation that Energy Fuels will be successful in developing U.S. separation, or other value-added U.S. REE production capabilities at the Mill, or otherwise; any expectation that the Company and Neo will be successful in jointly developing a fully integrated U.S.-European REE supply chain; any expectation that the Company will be successful in building a low-cost, fully integrated U.S. rare earth supply chain that meets the highest global standards for environmental protection, sustainability and human rights; any expectation with respect to the future demand for REEs; any expectation with respect to the quantities of monazite ore to be acquired by Energy Fuels, the quantities of RE Carbonate to be produced by the Mill or the quantities of contained TREO in the Mill’s RE Carbonate; any expectation that the Company’s evaluation of thorium and potentially radium recovery at the Mill will be successful; any expectation that the potential recovery of medical isotopes from any thorium and radium recovered at the Mill will be feasible; any expectation that any thorium, radium and other isotopes can be recovered at the Mill and sold on a commercial basis; and any expectation that the Company’s agreement to sell certain of its non-core properties to CUR will complete as contemplated or at all, or as to the proforma value of this divestment to the Company. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects,” “does not expect,” “is expected,” “is likely,” “budgets,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” “does not anticipate,” or “believes,” or variations of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur,” “be achieved” or “have the potential to.” All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of sources of alternate feed materials and other feed sources for the Mill; competition from other producers; public opinion; government and political actions; the appropriations for the proposed Uranium Reserve not being allocated to that program and the Uranium Reserve not being implemented; the manner in which the proposed Uranium Reserve, if established, will be implemented; the Company not being successful in selling any uranium into the proposed Uranium Reserve at acceptable quantities or prices, or at all; available supplies of monazite sands; the ability of the Mill to produce RE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; the ability of Neo to separate the RE Carbonate produced by the Mill to meet commercial specifications on a commercial scale at acceptable costs; market factors, including future demand for REEs; the ability of the Mill to be able to separate thorium and potentially radium at reasonable costs or at all; the ability of the Company and RadTran to be able to recover other isotopes from thorium and radium recovered at the Mill at reasonable costs or at all; market prices and demand for medical isotopes; and the other factors described under the caption “Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company’s website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.

SOURCE Energy Fuels Inc.

For further information: Investor Inquiries: Energy Fuels Inc., Curtis Moore, VP – Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com, www.energyfuels.com

Release – electroCore to Present at the Canaccord Genuity Growth Conference

Posted on August 2, 2021 by Admin

electroCore to Present at the Canaccord Genuity Growth Conference

ROCKAWAY, NJ,
Aug. 02, 2021 (GLOBE NEWSWIRE) —
electroCore, Inc. (the “Company”), (NASDAQ: ECOR), a commercial-stage bioelectronic medicine company, today announced that its management team will give a corporate presentation and be available for virtual one-on-one meetings at the
Canaccord Genuity Growth Conference. The conference is taking place virtually from
August 10 – 12, 2021. Details for the presentation are as follows:

Canaccord Genuity Growth Conference:
Date:
Thursday, August 12, 2021
Time:
8:30 am EDT
Investors can register for the conference HERE.

Following the conference a webcast replay of the presentation will be available on the Investor section of the company’s website, www.electrocore.com.

About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment of multiple conditions in neurology. The company’s current indications are the preventive treatment of cluster headache and migraine and the acute treatment of migraine and episodic cluster headache.

For more information, visit www.electrocore.com.

Investors:
Rich CockrellCG Capital
404-736-3838
ecor@cg.capital

or

Media Contact:
Jackie Dorsky
electroCore
908-313-6331
Jackie.dorsky@electrocore.com

Energy Fuels (UUUU)(EFR:CA) – 2021-2Q Results Impacted By Rising Costs Production Delays

Posted on August 2, 2021 by Admin

Monday, August 02, 2021

Energy Fuels (UUUU)(EFR:CA)
2021-2Q Results Impacted By Rising Costs, Production Delays

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

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

Release – Entravision Announces Launch of Real Country Format in Sacramento Market

Posted on August 2, 2021 by Admin

Entravision Announces Launch of Real Country Format in Sacramento Market

Company Release – 8/2/2021 9:00 AM ET

SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision Communications Corporation (NYSE: EVC), a leading global media and marketing technology company, today announced a format change to its radio station in Sacramento, California. Effective today, Entravision will launch 103.5 FM Real Country featuring 80’s, 90’s and today’s top Country music.

Real Country 103.5 FM primarily targets individuals aged 25-54 based in the greater Sacramento-Roseville area and features top iconic country artists ranging from Tim McGraw and Garth Brooks to music legends like Alabama, Reba McEntire and George Strait. The new format offers a 24-hour talent-filled lineup, beginning with Cactus Dave every morning from 5AM-9AM PT, followed by Shotgun Taylor from 9AM-3PM PT. The afternoon and evening drive will be led by Al Farb from 3PM-9PM PT, followed by Matt Hubbell hosting the overnight listeners from 9PM-5AM PT.

Over the coming months, Real Country 103.5 FM will host a number of specials including: Double Play Weekend airing August 13^th to 15^th, with double plays of listeners’ favorite artists from the last 50 years; Salute to the Country Music Hall of Fame from September 10^th to 12^th, celebrating the Country Music Hall of Fame 2020 inductees; Country Music Month all October long with a daily tribute to a legendary artist; and Christmas Programming beginning November 25^th through Christmas Day.

“We are very excited to introduce Real Country 103.5 FM to Sacramento, a market that has always had a strong appetite for country music,” said Nestor Rocha, Entravision’s Vice President of Audio Programming. “It is always our goal to respond to a market’s music preferences by offering formats that have the highest appeal, and we believe Real Country 103.5 FM should ideally meet listener demands.”

“Real Country 103.5 is a classic country format that will provide our advertisers with new opportunities to market to radio listeners,” said Angelica Balderas, SVP of Integrated Marketing Solutions for Entravision Sacramento, Stockton and Modesto, California. “We believe Real Country 103.5 FM will make a strong connection to Sacramento’s country music lovers, an audience which is digitally inclined and has strong purchasing power.”

About Entravision Communications Corporation

Entravision is a diversified global media, marketing and technology company serving clients throughout the United States and in 32 countries across Latin America, Europe, and Asia. Entravision has 54 television stations and is the largest affiliate group of the Univision and UniMás television networks, and 48 Spanish-language radio stations that feature nationally recognized, award-winning talent. Our dynamic digital portfolio includes Entravision Digital, which serves SMBs in high-density U.S. Latino markets and provides cutting-edge mobile programmatic solutions and demand-side platforms that allow advertisers to execute performance campaigns using machine-learned bidding algorithms, along with Cisneros Interactive, a leader in digital advertising solutions in the Latin American and U.S. Hispanic markets representing major technology platforms, and MediaDonuts, a leader in programmatic digital solutions in Southeast Asia. Shares of Entravision Class A Common Stock trade on The New York Stock Exchange under the ticker symbol: EVC. Learn more about all of our media, marketing and technology offerings at entravision.com or connect with us on LinkedIn and Facebook.

Contact for Entravision:
Kimberly Esterkin
Addo Investor Relations
evc@addo.com
310-829-5400

Contact for Sales:
Angelica “Angie” Balderas
SVP Integrated Marketing Solutions
abaldera@entravision.com

Source: Entravision Communications Corporation

Inflation is Way Above Target – Fed Doesn’t Adjust Aim

Posted on August 1, 2021 by Admin



	Image Credit: Jevgenijs Slihto

“Core PCE” Inflation Spike – Highest 3-Month Rate since 1982

Fed Chairman Powell doubled down on inflation being temporary and transitory during the post FOMC meeting press conference. Despite his official position, the Fed head admitted that the recent rate of inflation was “not moderately above” the Fed’s 2% target but “way above target.” The inflation measure that the Fed says it uses for its target is the annual “core PCE,” this spiked even higher on Friday (after the Powell’s Wednesday Press conference).

In 2012, the PCE Price Index became the inflation index used by the U.S. Federal Reserve for making monetary policy decisions. Personal consumption expenditures are among the three main parts of the Personal Income and Outlays report, the most recent was released on Friday (July 30).According to the BEA, this Personal Consumption Expenditures price index, without food and energy, jumped by 0.45% in June, from May, after having jumped by 0.5% in May, 0.7% in April, and 0.4% in March. What’s noteworthy is the Fed’s 2% target compared to the gauge they use which is up 3.5% from June last year, it is the highest year-over-year rise since May 1991.

The graph below from the St.Louis Federal Reserve website is a percent change in PCE inflation measures on a semiannual basis over 20 years. The visual makes it clear that this inflation measure is currently behaving well outside of normal parameters.

The annualized rate of core PCE over April, May, and June was 6.7%, this is the highest run-rate since July 1982. Inflation has suddenly throttled up this spring and into summer. Although we’ve experienced higher inflation data historically, those price increases were always met with the Fed and the interest rate markets reacting strongly. What we have now is government officials broadcasting that inflation is not going to be long lasting, to many this temporary talk sounds reminiscent of Washington’s “only a 14-day lockdown,” and then we’ll have business as usual. It’s understandable that professionals and economic hobbyists are at home looking at the data and feeling uncertain that it is temporary. The bond market to date, often viewed as the more informed money (over stock and real estate speculation), has accepted the idea that these increases are only temporary.

So far in 2021, Fed officials have not had a perfect record. The PCE price index, which includes food and energy, also released Friday, jumped 4.0%. Every three months (roughly, as the FED only meets eight times per year), the meeting is followed by the release of “Projection Materials,” which memorializes where FOMC members think the economy and inflation are headed. The median projection for core PCE inflation is now way behind expectations. For example, in December, core PCE projection for 2021: 1.8% the actual was only actual =1.5%. In March, the core PCE projection for 2021 was 2.0% the forecast of the surge to 2.0% was perfect. By June the core PCE projection was 2.1% the actual was 3.5% when the monthly surges are added in. A miss by an additional 1.4% over the 2.1% expectation is significant and could demonstrate a lack of grasp on what’s possible.

Fed Chair Powell was asked to explain and define at Wednesday’s press conference both why monetary policy should remain easy with inflation surging, and to clear up what exactly “temporary” and “transitory” mean to him. He admitted that there was nothing temporary or transitory in the current inflation. The loss in dollar purchasing power is permanent; prices are not expected to go back to where they were.

What is expected to be transitory is the current pace of price increases. The starting point down the road could be 6% higher, but prices aren’t expected to continue increasing at the highest speed we’ve seen in 40 years. In that sense, each rate increase stands alone, so the pace is “transitory” or “temporary.” The use of semantics by Fed officials is an art form all to itself.

Paul Hoffman

Managing Editor, Channelchek

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