Month: June 2022

Release – Cypress Development Progress on Feasibility Study

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Cypress Development Progress on Feasibility Study

Research, News, and Market Data on Cypress Development

June 15, 2022 –
Vancouver, Canada – Cypress Development Corp. (TSXV: CYP) (
OTCQX: CYDVF) (Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to provide an update on the progress of the ongoing Feasibility Study for the Company’s Clayton Valley Lithium Project, in Nevada, USA. The Feasibility Study is under the direction of Wood PLC (“Wood”) and Global Resource Engineering (“GRE”) and all related work is proceeding well, and it remains on track for completion in late 2022.

Activity Highlights:

  • Geotechnical study in progress
  • Continued operation of the Pilot Plant
  • 500-ton bulk sample collected for further metallurgical material
  • Sonic drill program completed consisting of 580 meters in eight drill holes
  • Resource model updated with data from recently acquired property

Geotechnical Program

Wood personnel conducted on-site visits in supervising the collection of geotechnical data for the foundation design of the Company’s processing plant site and tailings storage facility. The samples collected for Wood’s geotechnical program were shipped to materials testing laboratories, and additional on-site work is planned in the next month.

GRE personnel conducted site visits in preparation to work on the Project’s resources and reserves. GRE personnel supervised the collection of a suite of large-diameter core samples for assay and geotechnical testing, which will provide further information for GRE’s work on the mine design.

Lithium Extraction
Facility (“Pilot Plant”)

Testing continues at Cypress’ Pilot Plant in Amargosa Valley, 100 miles southeast of the Clayton Valley Lithium Project site. The Pilot Plant is now working in its 12th cycle of continuous 24-hr per day testing. The tests are ongoing to examine efficiencies in processing, testing various configurations in equipment and operating conditions, and the plant continues to produce concentrated lithium solutions for use in downstream product testing.

Wood’s process engineering team is working with Continental Metallurgical Services and the data from the Pilot Plant, to develop mass balance and equipment sizing. Wood’s engineers are also working on the overall project infrastructure, including selection and design of access roads, plant equipment, power, and water supplies.

Bulk Sample

To support continued testing, a 500-tonne sample of claystone was excavated in late April from an engineered test-pit and transported to the Company’s operations headquarters at the Tonopah airport, where it will be crushed, screened, and bagged in preparation for treatment at the Company’s Pilot Plant. The sample was collected near DCH-1, and in the vicinity of the planned starter-pit for mining in the Feasibility Study.

“We are pleased with the bulk sampling work. The size of the bulk sample may be larger than necessary for the Pilot Plant to provide adequate information for the Feasibility Study” said President and CEO Bill Willoughby. “This sample, however, allows us to examine lithium grade and other properties in the claystone over a larger volume. It also ensures we have material on hand, should we need it, for future tests or continued operations.”

Sonic Drill Program

Cypress is continuing to log and sample core from a sonic drill program which commenced and was completed in May. The purpose of the drill program was to obtain large-diameter (6-inch) continuous core. Eight locations were selected for metallurgical, geotechnical, lithological purposes. Each hole yielded 1.9 to 2.3 tonnes of claystone which will be used in metallurgical testing at the Company’s Pilot Plant to examine if there are any variations in performance due to depth, location, or material type in the deposit.

Four of the holes (CSV-1 through CVS-4) were completed in the central portion of the project in the vicinity of the proposed starter-pit and the 500-tonne bulk sample.  Four other holes (CVS-5 through CVS-8) were completed in the northeast portion of the project on and near the parcel of property recently acquired from Enertopia Corporation (“Enertopia”). In addition to providing metallurgical sample material, these latter four holes will provide confirmation of the data from Enertopia’s previous drilling.

“The drilling program proceeded better than expected and was very successful in this first application of sonic drilling in Clayton Valley” stated Daniel Kalmbach, Cypress Manager, Geology and QP. “The quality of the large-diameter core samples are excellent and will provide further valuable data for the Feasibility Study.”

Resource Model

The recent addition of land acquired from Enertopia (see news release dated May 5, 2022) resulted in the addition of five core holes which were drilled by Enertopia in 2018. This property comprises 17 unpatented mining claims totaling 160 contiguous acres immediately adjacent to Cypress’s Project. A March 2020 NI 43-101 compliant technical report (published by Enertopia) on the property shows an Indicated resource of 82 million tonnes (mt) of 1,121 parts per million (ppm) Li and an Inferred resource of 18 mt of 1,131 ppm Li using a cutoff grade of 400 ppm Li. Cypress has not independently confirmed the resource indicated in the March 2020 NI 43-101 report.

All data received from the property acquisition has been incorporated into the project database and is expected to be used by GRE to generate the resource and reserve estimates and develop the mine plan for the Feasibility Study

Qualified Person

Daniel Kalmbach, CPG, is the qualified persons as defined by National Instrument 43-101 and have approved of the technical information in this release.

About Cypress Development
Corp

Cypress Development Corp. is a Canadian based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Cypress is in the pilot stage of testing on material from its lithium-bearing claystone deposit and progressing towards completing a feasibility study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.

ON BEHALF OF CYPRESS
DEVELOPMENT CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & Chief Executive Officer

For further information,
please contact:

Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 764 1851 | Toll Free: 1 800 567 8181 | Email scacos@cypressdevelopmentcorp.com
www.cypressdevelopmentcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary Note Regarding
Forward-Looking Statements

This release includes
certain statements that may be deemed to be “forward-looking
statements”. Forward-looking statements are subject to risks,
uncertainties and assumptions and are identified by words such as “expects,”
“estimates,” “projects,” “anticipates,” “believes,” “could,” “scheduled,” and
other similar words. All statements in this release, other than statements
of historical facts, that address events or developments that management of the
Company expects, are forward-looking statements. Although management believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially from
those in the forward-looking statements. The Company undertakes no obligation
to update these forward-looking statements if management’s beliefs, estimates
or opinions, or other factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking statements, include
market prices, exploration, and development successes, continued availability
of capital and financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for
further information.

 


Release – Voyager Digital Provides Update on Asset and Risk Management

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Voyager Digital Provides Update on Asset and Risk Management

Research, News, and Market Data on Voyager Digital

NEW YORK, June 14, 2022 /CNW/ – Voyager Digital Ltd. (“Voyager” or the “Company”) (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), one of the fastest-growing consumer cryptocurrency platforms in the United States, and one of the first public companies in the crypto industry, today provides an asset and risk management update in light of changing market conditions. As a public company, Voyager operates with a consistently high level of transparency, providing regular quarterly financial statements detailing the company’s financial position and financial statement disclosure surrounding risk management practices and counterparty exposure.

Voyager differentiates itself through a straightforward, low-risk approach to lending and asset management by working with a select group of reputable counterparties, which are all vetted through extensive due diligence by its Risk Committee. The company does not participate in DeFi lending activities, algorithmic stablecoin staking and lending, or derivative assets, such as stETH. One of Voyager’s important objectives is to make crypto as simple and safe as possible for consumer use. With that mission in mind, safeguarding customer assets is a top priority.

Although Voyager announced a prior partnership with Celsius in 2019, due to the company’s ongoing due diligence and risk management process, Voyager currently has no customer assets at Celsius.

“Voyager holds a strong position in the crypto industry. Not only were we among the first to go public and provide full balance sheet transparency, our leadership also has deep financial expertise across the sector and has led companies through multiple market cycles,” said Steve Ehrlich, Chief Executive Officer and co-founder of Voyager. “The company is well capitalized and in a good position to weather this market cycle and protect customer assets. It is Voyager’s goal to continue to build secure products and services, as well as build trust and leadership in the cryptocurrency industry.”

About Voyager Digital Ltd.

Voyager Digital Ltd.’s (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2) US subsidiary, Voyager Digital, LLC, is a fast-growing cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost-efficiency to the marketplace. Voyager offers a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.

The TSX has not approved or disapproved of the information
contained herein.

SOURCE Voyager Digital (Canada) Ltd.

For further information: Press Contacts, Voyager Digital, Ltd., Voyager Public Relations Team, pr@investvoyager.com


Cypress Development (CYDVF) – Keeping an Eye on the Next Big Test

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Tuesday, June 14, 2022

Cypress Development (CYDVF)
Keeping an Eye on the Next Big Test

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

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

Lithium from Nevada claystone. Cypress Development is advancing its 100%-owned Clayton Valley Lithium Project near Silver Peak, Nevada. Cypress intends to mine Nevada claystone, produce a high-grade lithium concentrate solution and apply a licensed lithium extraction process based on ion-exchange to produce lithium carbonate or lithium hydroxide. Clayton Valley could go into production as early as 2025, following the completion of a feasibility study by year-end 2022, a two-year permitting period which could begin mid-year 2022, and one-year construction period. We have assumed commercial production commences in 2026.

Testing the production of lithium products. Approximately 4,000 liters of concentrated lithium chloride solution have been delivered from the company’s pilot plant to two Canadian laboratories. Each laboratory will further treat the solutions, one to produce lithium carbonate, and the other to produce lithium hydroxide. The results, which are expected within the next 4 to 5 weeks, will be used to assess if additional steps are needed to attain battery-grade standards and evaluate alternatives for producing these products in the feasibility study. The goal is to eventually produce lithium carbonate and/or lithium hydroxide on site….

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. 

Release – Sierra Metals Announces Appointment of New Chair & Addition to the Board

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Sierra Metals Announces Appointment of New Chair & Addition to the Board

Research, News, and Market Data on Sierra Metals

TORONTO–(BUSINESS WIRE)– Sierra
Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) is pleased to announce that Oscar Cabrera has been appointed as Chair of the Board of Directors of the Company (the “Board”). Mr. Cabrera joined the Board in October 2021 and replaces Mr. Jose Vizquerra as Chair.

Additionally, the Board appointed Miguel Aramburu as its newest member. Mr. Aramburu has over 25 years of professional experience with 15 years dedicated to the mining sector, currently serving on the Board of STRACON S.A.C, a mining contractor, and Minsur S.A., a Perú based mining company.

“We welcome Miguel to the Sierra Metals Board. His senior leadership at large Peruvian mining operations as well as his significant board experience will provide important insight as a member of our Board. The strong combination of expertise of our Board members will help strengthen the execution of the Company’s current initiatives, as well as provide guidance for its next phase of development and growth. We look forward to working together,” commented Luis Marchese, CEO.

Bios

Oscar Cabrera has over 20 years of experience as an equity analyst, covering the metals and mining industry for bulge bracket investment banks and Canadian financial institutions, including Goldman Sachs, Merrill Lynch Canada and CIBC World Markets. He obtained recognition for industry thought leadership, fundamental commodity analysis and strong industry relationships, which has led to advisory roles for public mining companies, including Nexa Resources S.A. He also participated in the vetting of and advising on primary and secondary offerings in Canada, the U.S. and Europe. Mr. Cabrera holds an MBA from York University, an M Eng. in Structural Engineering from the University of Toronto and a B. Sc in Civil Engineering from the Instituto Tecnológico y de Estudios Superiores de Monterrey. Mr. Cabrera is a Canadian Citizen, originally from Mexico.

Miguel Aramburu currently serves on the Board of Directors of Stracon S.A.C., a mining contractor; Fibra Prime, a Peruvian REIT; Minsur S.A., a Peru-based mining and exploration company; and IEduca, an education conglomerate. He has previously held positions on the boards of Enfoca Investments, Andino Investment Holding, El Comercio, Neptunia, Fenix Power, GyM, Stracon GyM, Maestro Peru, Castrovirreyna and Pacifico Vida. Prior to committing himself to serving on corporate boards, Mr. Aramburu held the position of CEO (2008-2010) and COO (2006-2008) of Hochschild Mining Plc. In addition, he has held progressive positions with Mauricio Hochschild Y Cia, including CEO (2004-2006), CFO (2002-2004) and General Manager for various segments of operations (1995-2002). Mr. Aramburu holds an MBA from Stanford University and obtained his Industrial Engineering degree from Pontificia Universidad Católica del Peru.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s common shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit 
www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, statements with respect to the execution of the Company’s current initiatives and the next stages of the Company’s development and growth. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 16, 2022 for its fiscal year ended December 31, 2021 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations, and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220613005789/en/

Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
info@sierrametals.com

Ed Guimaraes
CFO

Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO

Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.

 

Release – Gevo’s Northwest Iowa RNG Project Hits Major Milestone; Begins Injecting Dairy RNG into Natural Gas Pipeline

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Gevo’s Northwest Iowa RNG Project Hits Major Milestone; Begins Injecting Dairy RNG into Natural Gas Pipeline

Research, News, and Market Data on Gevo

ENGLEWOOD, Colo., June 14, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced that its renewable natural gas (“RNG”) project in Northwest Iowa (the “RNG Project”) has been producing biogas and is now upgrading and injecting RNG into the natural gas pipeline. The RNG Project generates renewable natural gas captured from dairy cow manure. The manure for the RNG Project is supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. When at full operational capacity, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year, which will be transported and sold in California. BP Canada Energy Marketing Corp. and BP Products North America Inc. (collectively, “bp”) will market the RNG in California on behalf of Gevo, and Gevo expects that the RNG Project will generate between $16 and $22 million of Project EBITDA1 per year beginning by 2023 depending on a variety of assumptions, including the value of credits under the federal Renewable Fuel Standard Program (“RFS”) and the Low Carbon Fuel Standard (“LCFS”) in California. Gevo expects to be able to get approval for Renewable Identification Numbers (“RINs”) through RFS and carbon credits from LCFS later this year or next year.

“The success that Gevo is achieving in Northwest Iowa right now is the result of the team of dedicated people who are working to change the world by converting waste into useful energy, animal bedding, and soil fertilizer,” says Dr. Chris Ryan, President and Chief Operating Officer of Gevo, Inc. “These talented people have been tasked with an important, complex job, and work every day to identify issues, formulate solutions, and execute their plan to achieve our goals. As this renewable energy supply becomes reliable, the entire circular economy model can grow and prosper. Supplying value added animal feed to dairies and to other animal feed operations, capturing the manure, then converting the manure to make RNG for use in the production of transportation fuels, more animal feed, and later, jet fuel when our Net-Zero 1 plant operates. This is an example of the circular economy in action.”

“In addition to being good for us, California and the world, our dairy partners are also expected to reap benefits from the RNG Project over the long term,” Ryan said. “The manure digesters are expected to improve the farms’ sustainability and lay the groundwork for more efficient recycling of nutrients and better soil health. It’s important that they share in the value,” Dr. Ryan said.

About Gevo
Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking
Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the development and construction of the RNG Project, the ability of Gevo to realize production of RNG by the RNG Project, Gevo’s ability to generate cash, revenue and Project EBITDA from the RNG Project, use of RNG at Gevo’s Net-Zero 1 project, benefits to Gevo’s dairy partners, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor
and Media Contact
Heather L. Manuel
303-883-1114

IR@gevo.com

1 Project EBITDA is a non-GAAP financial measure that we define as total operating revenues less total operating expenses for the project.

 

 


The Only Person Not Talking 75bp is Chairman Powell – Why?

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Image Credit: Federal Reserve (Flickr)


The Fed May be Orchestrating for Both Rates and Stocks to Climb Following the FOMC Meeting

Fed Chair Jerome Powell is following in the footsteps of the two Fed heads that came before him. That is to say, he is very transparent about his future actions. The Fed hasn’t made a surprise move in over 20 years. Remarkably they have telegraphed most everything in advance. So it came as a surprise to see broker-dealer shops like Goldman Sachs and Jeffries say they expect the Fed to tighten by 75bp rather than the 50 bp that Powell reiterated just a week ago. Do they know something, or is this conversation part of orchestrating an orderly return to 2% inflation without roiling the stock market?

We all want the Fed to succeed. Annual consumer price increases of 6%-9% would put a lot of households in jeopardy. While the stock market is not a direct mandate of the Fed, a market decline of an additional 10% would place retirement portfolios and businesses in harm’s way hurting even more households.

Since the FOMC last met and raised rates 50bp on May 2nd, Powell has consistently indicated that we should expect 50 basis points following the June meeting (June 15th). In the last set of minutes and through public engagements of other Fed Governors, there are indications that some would prefer a more aggressive pace of tightening. I’ve been paying close attention to FOMC meeting outcomes since the end of Paul Volcker’s last term, this is what I know; the Fed Chair does not get outvoted by other members. And, this Fed Chair hasn’t ever acted to surprise the markets. There have been times when Powell could have moved sooner or more aggressively than previously stated, especially in the early days of the pandemic, but he has instead given lead time for the markets to adjust. He showed the same patience with tapering.

After new inflation data was released last Thursday in the form of a CPI report, a likely 75bp rather than 50bp hike is being reported on all the major financial outlets. This would not seem very likely, even if the FOMC members feel they are behind the curve. The reason is simple; they want the market to trust what the Fed tells them. However, the other tool the Fed uses to control markets and even interest rates is very strong. It’s referred to as jawboning.

A more likely outcome of tomorrow’s meeting is a 50bp rate move with a much firmer message. If the desired outcome is to apply the economic brakes more firmly, not scare the stock market, and keep to its word, the FOMC is more likely to go 50bp and talk about 75bp in the message and messages following the meeting.

Consider this, a 50bp move after the market now expects 75bp is likely to cause investors to rejoice. Perhaps even cause a substantial rally.  A more hawkish verbal stance going forward would cause the bond market to take heed and move up in yield, and the door would then be open to go 75bp in late July after the stock market already becomes accustomed to the idea. In fact, market participants would remember the rally after the June meeting and be less fearful of future tightening moves.

Is this just a fantasy? It’s another forecast to consider; in my experience, it makes more sense than anything else. It does imply the Fed may have intentionally let a 75bp expectation slip to accomplish a goal – it would not be the first time.

Paul Hoffman

Managing Editor, Channelchek

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Microstrategy’s Bitcoin Position and the Past, Present, and Future of Crypto

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Image Credit: Pixabay (Pexels)


Cowboys and Cryptocurrency

Is Michael Saylor of MicroStrategy ($MSTR) a “cowboy?” Many entrepreneurs are. But, the founder mindset often has blinders to risk; some only see possibilities. As CEO of the publicly traded software company he founded, Saylor is responsible for the purchase of $3.97 billion in bitcoin ($BTC.X), much of it by employing leverage. Bitcoin ownership is well outside of the software business realm. Since 2020, when MSTR first speculated on the cryptocurrency, it rose by 700% and Saylor’s company’s value rose in tandem. It must have been an exhilarating ride for management and investors. But the same “horse” that took them on that ride, may hurt them this go-around.


Source: Koyfin

Before engaging or enraging cryptocurrency believers, here’s another recent example of a company CEO rolling the dice: AMC Theaters spent
$27.5 million to buy 22% of a goldmining company. Since $AMC’s purchase, gold has declined 6.35%, and the company they purchased Hycroft Mining Holdings (
HYMC), is down 8.70%.

Bitcoin, over the last five days, is down 28.5%. Stepping back from the crypto hype, it’s worth exploring and understanding what Michael Saylor, and so many others have placed so much faith in. Specifically, at its most basic, what is cryptocurrency?

The Lure and Lore of Bitcoin

The seeds of bitcoin and other cryptocurrencies were first planted on Halloween in 2008. On that day a nine-page theoretical paper published by an unknown author named Satoshi Nakamoto was released. The impact of this theory was brought to life and has since caused some to become billionaires, even more people, to become millionaires, and quite a few to lose tens of thousands or much more through their speculation. It’s like trick-or-treat via blockchain.

Human behavior is not always rational. There are few people that can be in a crowd where  “everyone is doing it” and not feel peer pressure to take part in whatever “it” is they’re doing. This is/was especially true when there have been big rewards for some, but certainly not all involved. Sometimes you’re late for the game and have to recognize the game may be over. It would have been nice to have speculated and then attained billionaire status in just a dozen or so years. But you may have to find another avenue for that. The crypto-zillionaires will always be part of the lore and mystique of bitcoin. But looking under the hood, and forgetting any previous hype, the idea of any large investment in crypto should leave most people scratching their heads in confusion.

Let’s discuss the author’s credentials. No one had ever heard of Satoshi Nakamoto when it was published. Even today, no one can identify this person. It is unknown whether the theory was created by a group of people, one person, or even a government entity. It is a mystery that remains unsolved. Does that sound like something worth investing $1,000 or more in?

The paper was called Bitcoin: A Peer-to-Peer Electronic
Cash System. It described for the first time a decentralized digital “currency” without central bank administration. Essentially what the paper proposed and later helped create was something that could possibly be used as currency instead of greenbacks or any other traditional currency. To date, it has barely become used as a currency, even in El Salvador where it is one of the national currencies. Each bitcoin that enters the blockchain is created by solving complicated math problems known as “Bitcoin mining.” Solve the math problem, and you have created a Bitcoin. Alternatively, you may exchange your native currency (hard-earned dollars) for this new currency that is barely accepted by any retailer and exists only on a ledger in cyberspace.

Up until 2010, the price of a Bitcoin, expressed in U.S. dollars, was under a penny. It jumped to 8 cents that year. Had you purchased Bitcoin after this huge leap, let’s say $0.80 worth, you’d have had something valued at over $600,000 in early 2021. This is because the price of one Bitcoin had jumped to over $60,000 a piece in just over ten years. So $10 in Bitcoin purchased back then would have provided you with well over a million if exchanged back to dollars in 2021.

Bitcoin and Cryptocurrency Today

Late last year, it would have cost you $64,000 for a single bitcoin; six months later (today), about $22,500. Is the current price a bargain, will the trend continue, and will MicroStrategy get a margin call that requires them to dump a billion worth of the asset into the market? How many other companies have crypto on their balance sheets may be weighing down their Net-Asset-Value (NAV)? The MicroStrategy story is probably causing people who sit on corporate boards to reevaluate whether it’s responsible to be holding or accepting payment in bitcoin, ether, Doge, or any other non-legal tender.

Bitcoin is currently trading at $22,400, MicroStrategy’s crypto holdings are now worth $2.9 billion. That translates to an unrealized loss of more than $1 billion. But, the company may face a required margin call, they’d then have to commit more funds to avoid losses on holdings that they enhanced with borrowed cash (margin).

Bitcoin and Cryptocurrency’s Future

Bitcoin is undergoing a brutal sell-off which has it approaching exchange rates not seen since December 2020. The market conditions have become erratic, with the crypto lending firm Celsius halting withdrawals on Monday (June 13). Celsius cited “extreme market conditions.” Also worth remembering is that a stablecoin recently broke the buck.

This is not intended to be a eulogy for bitcoin or any other cryptocurrency. As with most markets, stocks, real estate, gold, beany babies, etc., what lies ahead is never certain. Early investors are usually the bigger winners or losers in anything. But crypto now seems to have its back up against the ropes, central banks are coming down on it, regulators like the SEC are exploring ways to tighten what they see as the potential to abuse it, and those that are invested in it are questioning their own holdings. This all started as a theoretical paper, it is only backed by the belief that it is worth something, if that belief fades, so will its value.

Please leave any comment or discussion under this article on our Twitter Account.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://twitter.com/elonmusk/status/1501449525831081987

https://www.cnbc.com/2022/06/14/bitcoin-plunge-spells-trouble-for-michael-saylors-microstrategy.html

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Cathie Wood and the Risk of Trying to Get Someplace Fast

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Image Credit: Kindel Media (Pexels)


Should ARK Invest Apply a Little More Caution?

Individual fund managers come in as many different risk types as there are types of highway drivers. Some will try to get where they are going as fast as possible, even if this risks everything, and others will always drive cautiously slow. Others change their driving based on perceived conditions at the time. ARK Invest was reportedly founded by Cathie Wood after she regularly disagreed with her former employer over her lack of caution. Her boss at Alliance Bernstein recently told the Financial Times that “her biggest blind spot is managing risk and volatility.” In fairness to them both, there are two ways to run managed funds, the first is to always stay fully invested in your advertised style and let those that enter and exit change their exposure based on their own risk tolerance, and the second is to occasionally take your foot off the accelerator if there appears to be the potential to crash. Like the little old lady from Pasadena, Cathie Wood can’t take her foot off the accelerator.


Source: Koyfin

A couple of months ago, Ms.Wood was the keynote speaker at an investment conference in South Florida. Her company’s flagship fund ARK Innovation (ARKK) was down about 50%, and some of her better-known aggressive positions in future-looking tech companies like Coinbase and Robinhood had been proving themselves to be disappointments. Despite ARKKs huge fall-off in performance, she was greeted as a keynote with the kind of awe and adoration bestowed on rock stars. At the event, she doubled down on her support for her holdings. Wood had previously been forecasting that ARK Invest funds would deliver annualized returns of 15%; in April, from the podium, she told investors, “Now we think 50 percent.”

If you get in the car with a driver that insists on driving 110 mph regardless of the road conditions, you may get to where you’re going faster than driving with anyone else, you may also not ever make it.

Since her prediction of a 50% return by year’s-end, ARK Innovation is down another 34 percent.

The firm still has substantial assets under management (AUM), more than $16 billion. Her aggressive optimism and success, especially during the pandemic, had caused her AUM to have once grown to $60 billion. Almost all of her funds are full speed ahead in the riskiest investments on the market, including cryptocurrency and other new tech. Last fall, she put a $500,000 price target on bitcoin, a few months later, as bitcoin’s price sank, she raised her forecast to $1 million. In fairness, she could still be right, but her funds have lost ground over those that have been more cautious.

Wood still keeps her head down and continues pushing through any adversity, be it criticism or a market sell-off, as though she believes she’s fighting a righteous battle. “Truth will win out,” she repeatedly said on her firm’s monthly webinar in May.

For individual and even institutional investors, when investing in a fund, it’s important to recognize if the driving responsibility is on you, or on the manager. That is to say, don’t count on the manager taking risk-off in volatile markets, or putting risk on during bullish conditions. There are managed funds that hold completely true to their style and funds that try to create the best performance within the guidelines of their prospectus. The managed funds at ARK Invest would seem to be all in, all the time.

Take-Away

The benefit of placing money in a managed fund is you have a professional fund manager. One of the benefits of being active in selecting individual stock positions yourself is you can refine your portfolio more toward your own risk tolerance and adjust it at any time.

If you do place some of your assets in a fund, make sure you know what you’re buying. There are people who have watched the stock market take off only to realize their manager had been maxed out in cash and they missed the move and others that presume that their portfolio manager knew when the market was stormy and sidelined some riskier positions. 

It’s your money, know the driver, or be the driver.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://empirefinancialresearch.com/articles/rally-in-cathie-woods-fund-avoid-arkk-these-contrarian-indicators-suggest-the-bottom-is-in-my-35th-high-school-reunion

https://ark-invest.com/articles/market-commentary/innovation-stocks-are-not-in-a-bubble/

https://www.morningstar.co.uk/uk/

https://www.thestreet.com/technology/cathie-wood-makes-a-very-bold-prediction-about-tesla

https://www.cnbc.com/video/2022/04/29/watch-cnbcs-full-interview-with-ark-invests-cathie-wood.html

https://www.bloomberg.com/news/articles/2022-06-07/cathie-wood-s-asset-plunge-is-biggest-among-etf-issuers-in-2022

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Release – Ocugen, Inc. Announces Issuance of U.S. Patent for Treating Retinal Degenerative Diseases Using Gene Therapy

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Ocugen, Inc. Announces Issuance of U.S. Patent for Treating Retinal Degenerative Diseases Using Gene Therapy

Research, News, and Market Data on Ocugen

ISSUANCE OF U.S.
PATENT NO. 11,351,225 FURTHER ENHANCES OCUGEN’S GENE THERAPY INTELLECTUAL
PROPERTY PORTFOLIO

MALVERN, Pa., June 13, 2022 (GLOBE NEWSWIRE) — Ocugen,
Inc. (NASDAQ:OCGN), a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing novel gene and cell therapies, biologicals, and vaccines, today announced that on June 7, 2022, the United States Patent and Trademark Office (“USPTO”) issued U.S. Patent No. 11,351,225, which is directed to methods for preventing or treating an ocular disease or disorder associated with a retinal degenerative disease.

U.S. Patent No. 11,351,225 (the “‘225 Patent”) covers the use of a nuclear hormone receptor gene, such as NR2E3, RORA, NUPR1, and 
NR2C1, in treating retinal degenerative diseases as well as reducing the risk of developing such diseases. Additional issued claims pertain to using a nuclear hormone receptor gene to treat retinitis pigmentosa, age-related macular degeneration, and inherited retinal degenerative diseases. The ‘225 Patent contains 18 claims and expires in March 2034.

“We are pleased to have been granted this new U.S. patent through our exclusive license agreement with The Schepens Eye Research Institute, an affiliate of Harvard Medical School. We believe this patent significantly validates our modifier gene therapy platform developed by Dr. Neena Haider and augments our growing global patent portfolio,” commented Dr. Shankar Musunuri, Chairman, CEO, and Co-Founder of Ocugen.

This newly allowed patent is exclusive to Ocugen and is the latest U.S. patent issued in connection with Ocugen’s gene therapy program for treating retinal degenerative diseases.

About Ocugen,
Inc.
Ocugen, Inc. is a biotechnology company focused on discovering, developing, and commercializing novel gene and cell therapies, biologicals and vaccines that improve health and offer hope for people and global communities. We are making an impact through courageous innovation, taking science in new directions in service of patients. Our breakthrough modifier gene therapy platform has the potential to treat multiple diseases with one drug and we are advancing research in other therapeutic areas to offer new options for people with unmet medical needs. Discover more at www.ocugen.com and follow us on Twitter and LinkedIn.

Cautionary
Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (“SEC”), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, after the date of this press release.

Contact
Tiberend
Strategic Advisors, Inc.
Jonathan Nugent / Daniel Kontoh-Boateng (Investors)
jnugent@tiberend.com
dboateng@tiberend.com

Dave Schemelia (Media)

dschemelia@tiberend.com


Release – Cypress Development Delivers Solution From Pilot Plant For Testing Production Of Lithium Carbonate And Lithium Hydroxide

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Cypress Development Delivers Solution From Pilot Plant For Testing Production Of Lithium Carbonate And Lithium Hydroxide

Research, News, and Market Data on Cypress Development

June 13, 2022 – Vancouver, Canada – Cypress Development
Corp. (TSXV: CYP) (OTCQX: CYDVF) (Frankfurt: C1Z1) ( “Cypress” or “the Company”) is pleased to report that the  Company’s Lithium Extraction Facility (“Pilot Plant”) in Amargosa Valley, Nevada continues to operate successfully, reaching a milestone in the delivery of concentrated lithium solution to two laboratories in Canada for further testing in the production of lithium products.

“The Company is very pleased to have reached this significant milestone. About 4,000 liters of concentrated lithium chloride solution have been delivered from the Pilot Plant to two Canadian laboratories. Each laboratory is now working to further treat the solutions, one to produce lithium carbonate, and the other, lithium hydroxide, as the final end product,” commented Bill Willoughby, President and CEO of Cypress Development. “These results will then be used to determine what additional steps are needed, if any, to attain battery-grade standards and evaluate the alternatives for producing these products in the ongoing Feasibility Study.”

Pilot Plant

Cypress’ Lithium Extraction Facility in Amargosa Valley, Nevada marked its sixth month of operation with the completion of 11 separate continuous tests conducted on a 24-hour per day basis, over periods ranging from 3 to 14 days. Processing conditions and equipment arrangements in the areas of leaching, filtration, impurity removal, and the Direct Lithium Extraction (DLE) system during the testing periods have been varied to determine the effect of changes. The Pilot Plant will continue to operate during the summer with a work schedule of 7-days on, 5-days off.

“The Pilot Plant operates very well and requires minimal time for start-up,” stated Todd Fayram, President of Continental Metallurgical Services and Qualified Person who oversees process engineering and operations at the Pilot Plant. “For the most part we are using standard equipment with well-established methods in mineral processing. This allows us to efficiently examine changes and reconfigure the process as required.”

The Company is pleased with the progress and results to-date. Recoveries in the Pilot Plant remain as expected, with lithium extraction from claystone in the 80 to 85% range. Tailings testing has preliminarily identified characteristics that will allow for dry stacking with minimal water entrainment. The Pilot Plant is also focused on minimizing water usage and has operated successfully with an emphasis on 100% recycling of all process water streams within the facility.

Qualified Person

Todd Fayram, MMSA-QP is a Qualified Person as defined by National Instrument 43-101 and has approved of the technical information in this release.

About Cypress Development Corp

Cypress Development Corp. is a Canadian based advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada, USA. Cypress is in the pilot stage of testing on material from its lithium-bearing claystone deposit and progressing towards completing a feasibility study and permitting, with the goal of becoming a domestic producer of lithium for the growing electric vehicle and battery storage market.

ON BEHALF OF CYPRESS DEVELOPMENT CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & Chief Executive Officer

For further information, please
contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 764 1851 | Toll Free: 1 800 567 8181 | Email scacos@cypressdevelopmentcorp.com
www.cypressdevelopmentcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary Note
Regarding Forward-Looking Statements
This release includes certain statements that may be
deemed to be “forward-looking statements”. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as “expects,”
“estimates,” “projects,” “anticipates,” “believes,” “could,” “scheduled,” and
other similar words. All statements in this release, other than statements
of historical facts, that address events or developments that management of the
Company expects, are forward-looking statements. Although management believes
the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially from
those in the forward-looking statements. The Company undertakes no obligation
to update these forward-looking statements if management’s beliefs, estimates
or opinions, or other factors, should change. Factors that could cause actual
results to differ materially from those in forward-looking statements, include
market prices, exploration, and development successes, continued availability
of capital and financing, and general economic, market or business conditions.
Please see the public filings of the Company at www.sedar.com for further
information.


Release – Sierra Metals Announces Results of Annual General Meeting of Shareholders & Directorate Change

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Sierra Metals Announces Results of Annual General Meeting of Shareholders & Directorate Change

Research, News, and Market Data on Sierra Metals

TORONTO–(BUSINESS WIRE)– Sierra
Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) hereby announces the voting results from the Company’s Annual General Meeting of Shareholders held on Friday, June 10, 2022 (the “AGM”).

A total of 128,416,799 common shares were represented at the meeting, being 78.33% of the Company’s issued and outstanding shares. Shareholders voted in favour of the re-appointment of PricewaterhouseCoopers LLP as auditors for the ensuing year, and the election of management’s nominees as directors.

Detailed results of the votes on the election of directors are as follows:

Director

Votes For

Votes Withheld

Outcome of Vote

Oscar Cabrera

62,316,296 (58.80%)

43,665,198 (41.20%)

Approved

Douglas Cater

62,451,391 (58.93%)

43,530,103 (41.07%)

Approved

Carlos Santa Cruz

62,315,927 (58.80%)

43,665,567 (41.20%)

Approved

Luis Marchese

59,858,436 (56.48%)

46,123,058 (43.52%)

Approved

Robert Neal

62,320,575 (58.80%)

43,660,919 (41.20%)

Approved

Dawn Whittaker

62,498,388 (58.97%)

43,483,106 (41.03%)

Approved

Koko Yamamoto

62,489,360 (58.96%)

43,492,134 (41.04%)

Approved

At the AGM, the shareholders of the Company re-elected each of Oscar Cabrera, Douglas Cater, Carlos Santa Cruz, Luis Marchese, Dawn Whittaker and Koko Yamamoto to the board of directors of the Company (the “Board”). In addition to the re-election of the foregoing directors, the shareholders also elected Robert Neal to join the Board.

Jose Vizquerra, Steven Dean and Dionisio Romero did not stand for re-election at the AGM. Each have been long-standing members of the Board and have seen the Company through several expansions and growth initiatives. Jose joined in 2017 and served as Chair for the past year. Steven has served on the Board since October of 2011 and Dionisio has been a member of the Board since 2015.

“We would like to thank each of Jose, Steven and Dionisio for the valuable time and guidance they have provided to management during their respective tenures on the Board. Their commitment to helping define and execute the Company’s corporate strategic goals is greatly appreciated. We welcome Rob to the Sierra Metals board. His knowledge and experience in capital markets and corporate finance bring a valuable perspective to our board,” commented Luis Marchese, CEO.

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s common shares trade on the Toronto Stock Exchange and the Bolsa de Valores de Lima under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit 
www.sierrametals.com.

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | Instagram: sierrametals

View source version on businesswire.com: https://www.businesswire.com/news/home/20220610005624/en/

Investor Relations
Sierra Metals Inc.
+1 (416) 366-7777
info@sierrametals.com

Ed Guimaraes
CFO

Sierra Metals Inc.
+1(416) 366-7777

Luis Marchese
CEO

Sierra Metals Inc.
+1(416) 366-7777

Source: Sierra Metals Inc.


The Beveridge Curve Indicates Aggressive Fed Action Shouldn’t be Feared

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Image Credit: Mike Mozart (Flickr)


Inflation at 40-Year High Pushes Fed to Get More Aggressive – the ‘Beveridge Curve’ Should Give it Courage to Act

Inflation surged at the fastest pace in over 40 years in May 2022, pushing the Federal Reserve toward a more aggressive pace of interest rate increases to slow it down. While there’s concern it could cause unemployment to spike, a little-known economics indicator suggests the Fed can do so without causing too much economic pain.

The Fed has already raised interest rates twice in recent months – including a half-point hike in early May – in an effort to tame inflation. Yet the consumer price index rose to an annualized rate of 8.6% from 8.3% in April, the Bureau of Labor Statistics reported on June 10. That’s above economic forecasts of 8.2% and the highest reading since December 1981, which is the tail end of the last time the U.S. economy wrestled with ferocious inflation.

In other words, the actions by the central bank so far don’t appear to have had much of an effect.

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It was written by and represents the research-based opinions of Veronika Dolar, Assistant Professor of Economics, SUNY Old Westbury.

But lifting rates further could come at a cost. Economists fear that raising rates too fast and too steeply would likely put the brakes on economic growth, resulting in an economic recession and soaring unemployment. Yet as an economist who studies inflation, I believe there are several reasons the Fed can more fiercely fight inflation without worrying so much about unemployment.

Slow at the Switch

Economists and investors have been urging the Fed to get more aggressive for many weeks.

Their main argument is that soaring inflation is at least partly the fault of the Fed – and the federal government. U.S. policymakers pursued very aggressive stimulus programs to cushion the economy-pummeling effects of COVID-19. The roughly US$4.6 trillion in stimulus money eventually led to an increase in overall demand for goods and services, which drove up prices at the same time that supply chains were a mess.

Compounding matters, Russia’s invasion of Ukraine has caused a spike in oil and gas prices.

Meanwhile, the Fed has been accused of being slow to take policy actions that could have helped tamed inflation sooner. Even the 0.5 percentage point rate increase in May seems weak in retrospect.

Reasons for Caution

In the Fed’s defense, it has good reason to be cautious. The Fed has what is known as a dual mandate to not only keep inflation in check but to promote maximum employment.

The trouble is, actions intended to reduce inflation can cause unemployment to rise.

And so the Fed has been focused on executing a so-called soft landing, in which it raises interest rates enough to slow inflation but not so much it sends the economy into recession – which would likely result in fewer job vacancies and more Americans without work.

But I think the Fed now has two big reasons to throw its caution to the wind.

Introducing the ‘Beveridge Curve’

The first is what the latest inflation data tells us. Runaway inflation is terrible for an economy, and very painful for consumers, and so the Fed has no choice but to bring it down at whatever cost.

The other has to do with what is known as the Beveridge curve, a tool economists use to analyze the labor market and one increasingly being monitored by Fed Chair Jerome Powell and others.

The Beveridge curve looks at the statistical relationship between the level of unemployment and the number of open job vacancies. The idea behind this curve is pretty straightforward: When there are many unfilled vacancies, the labor market is extremely tight, and it is easy to find work, leading to an extremely low level of unemployment. On the other hand, in a slack market, the number of vacancies is low and it is more difficult to find jobs and the unemployment is high.

In May, there were 11.5 million job vacancies in the U.S. for 6 million unemployed people. This nearly 2-1 ratio is wildly high – the highest ever recorded. In contrast, before the pandemic, when the labor market was in very solid shape, there was one vacancy for every two unemployed people. The Beveridge curve uses rates, so it currently shows a 7.3% job opening rate over a 3.6% unemployment rate.

Historically, a drop in job openings – prompted by a slowing economy, for instance – corresponds with a rise in unemployment, and vice versa. But the pandemic has changed the existing pattern dramatically, and it looks as if unemployment is less responsive to changes in the job opening rate. This means the Fed could get more aggressive about hiking interest rates to curb inflation without worrying so much that a drop in job vacancies due to an economic slowdown will cause unemployment to jump dramatically.

That said, we should also keep in mind that the latest numbers represent a lagging indicator. It takes time for the Fed’s policies to be seen in the data, and for all we know the rate hikes are already having an effect.

Still, I believe the Fed has a strong case for more aggressive action – so don’t be surprised if the U.S. central bank lifts rates by 0.75 percentage point at its next meeting in mid-June. That would be the biggest increase since 1994.


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Great Lakes Dredge & Dock (GLDD) – Bringing Another Ship to Port

Posted on by Admin

Monday, June 13, 2022

Great Lakes Dredge & Dock (GLDD)
Bringing Another Ship to Port

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

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

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

Building Another. Great Lakes’ management recently announced that the Company exercised a contract option to build a second 6,500 cubic-yard-capacity Trailing Suction Hopper Dredge at the Conrad Shipyard (Conrad) in Amelia, Louisiana. The dredge will be a sister ship to the Galveston Island (expected delivery in 2023), with the dredge expected to be delivered in the first quarter of 2025.

Dredge Details. The new dredge on which the Company has exercised the contract is identical to the Galveston Island, that includes the equipment being used and the build itself. The cost of the ship at agreement was $92.8 million, but the Company estimates that the cost will now be over $100 million when completed due to the rise of steel prices. …

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.