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The Tax Credits in IRA Bill May Not Help U.S. Electric Vehicle Manufacturers

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Source: kandiamerica.com


The Climate Bill Could Short-Circuit EV Tax Credits, Making Qualifying for Them Nearly Impossible

The U.S. Senate passed a far-reaching climate, energy and health care bill on Aug. 7, 2022, that invests an unprecedented US$370 billion in energy and climate programs over the next 10 years – including incentives to expand renewable energy and electric vehicles.

Rapid and widespread adoption of electric vehicles will be essential for the United States to meet its climate goals. And the new bill, which includes a host of other health and tax-related provisions, aims to encourage people to trade their gasoline-fueled cars for electrics by offering a tax credit of up to $7,500 for new electric vehicles and up to $4,000 for used electric vehicles through 2032.

But there’s a catch, and it could end up making it difficult for most EVs to qualify for the new incentive.

The bill, which needs House approval, requires that new electric vehicles meet stringent sourcing requirements for critical materials, the components of the battery, and final assembly to qualify for the tax credits. While some automakers, like Tesla and GM, have well-developed domestic supply chains, no electric vehicle manufacturer currently meets all the bill’s requirements.

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 James Morton Turner, Professor
of Environmental Studies, Wellesley College.

Building a Domestic EV Supply Chain

At first glance, the revised EV tax credits seem like a smart move.

Existing U.S. policy allows credits for the first 200,000 electric vehicles a manufacturer sells. Those credits helped jump-start demand for EVs. But industry leaders, including Tesla and GM, have already hit that cap, while most foreign automakers’ vehicles are still eligible. The bill would eliminate the cap for individual automakers and extend the tax credits through 2032 – for any vehicle that meets the sourcing requirements.

Right now, China dominates the global supply chain for materials and lithium-ion batteries used in electric vehicles. This is no accident. Since the early 2000s, Chinese policymakers have adopted aggressive policies that have supported advanced battery technologies, including investments in mines, materials processing and manufacturing. I discuss how China got a head start in the race toward a clean energy future in my new book, Charged: A History of Batteries and Lessons for a Clean Energy Future.

Sen. Joe Manchin, the West Virginia Democrat who stalled earlier efforts to get these measures through the sharply divided Senate, said he hopes the requirements will help scale up the U.S. domestic critical minerals supply chain.

The EV incentives would complement other U.S. policies aimed at jump-starting domestic EV manufacturing capacity. Those include $7 billion in grants to accelerate the development of the battery supply chain allocated in the Infrastructure Investment and Jobs Act of 2021 and a $3 billion expansion of the Advanced Vehicle Manufacturing Loan Program included in the current bill, formally known as the Inflation Reduction Act.

The problem is that the Inflation Reduction Act’s sourcing requirements come online so quickly, starting in 2023, and ratchet upward so rapidly, that the plan could backfire. Instead of expanding electric vehicle adoption, the policy could make almost all electric vehicles ineligible for the tax incentives.


Even Tesla’s Gigafactory Relies on China

The bill excludes incentives for any new vehicle which contains battery materials or components extracted, processed, manufactured or assembled by a “foreign entity of concern” – a category which includes China.

According to Benchmark Intelligence, a market research firm that tracks the battery industry, China currently controls 81% of global cathode manufacturing capacity, 91% of global anode capacity, and 79% of global lithium-ion battery manufacturing capacity. By comparison, the United States has 0.16% of cathode manufacturing capacity, 0.27% of anode manufacturing capacity, and 5.5% of lithium-ion battery manufacturing capacity.

Even the U.S.’s most advanced battery factories, such as Tesla’s Nevada Gigafactory, currently rely on materials processed in China. Despite Ford’s plans to expand its domestic supply chain, its most recent deals are for sourcing batteries from Chinese manufacturer CATL.

In addition to excluding materials and components sourced from China starting in 2023, the bill also requires that a minimum percentage of the materials and components in batteries be sourced domestically or from countries the U.S. has a fair trade agreement with, such as Australia and Chile. The threshold starts at 40% of the value of critical minerals in 2023 and ramps up to 80% in 2027, with similar requirements for battery components.

If a manufacturer doesn’t meet these requirements, its vehicle would be ineligible for the tax credit. Whether the Treasury Department would come up with exemptions remains to be seen.

Although EV manufacturers are already pursuing plans to develop supply chains that meet these sourcing requirements, proposals for mines and processing facilities often face challenges. Indigenous and environmental concerns have slowed a proposed lithium mine in Nevada. In some cases, key materials, such as cobalt and graphite, are not readily sourced domestically or from fair-trade allies.

Proposed recycling projects could help meet demand. Redwood Materials projects its recycling facility, currently under construction in Nevada, will supply cathode and anode materials to support one million electric vehicles per year by 2025. Despite such optimistic projections, experts anticipate that recycling can only play a small role in offsetting the demand for raw materials needed to scale up electric vehicle adoption in the coming decade.


How Much Can the Bill do to Cut Emissions?

Clean energy supporters called the bill historic. In addition to a massive investment in renewable energy and electric vehicles, it provides support for technologies such as carbon capture and storage and zero-carbon fuels, and includes a fee to curtail methane emissions, as well as some trade-offs that boost fossil fuels.

Forecasters have projected that the climate package as a whole could help put the U.S. on track to reduce greenhouse gas emissions by about 40% by 2030 compared to 2005 levels – still short of the Biden administration’s goal of a 50% reduction, but closer.

But for the U.S. to hit those goals, electric vehicles will have to replace fossil-fueled vehicles by the millions. A realistic EV tax credit that allows time for manufacturers to diversify their supply chains and makes these vehicles more affordable for all Americans will be crucial. The proposed policy risks short-circuiting EV tax credits just when they are needed most.


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Do Rising Prices Pump Up Stock Market Levels?

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Image Credit: Alexandra Maria


Are Consumer Price Increases Negatively Correlated to Stock Market Price Levels?

Does inflation lift stock prices? It has been long thought that stocks are a better hedge against inflation than cash, which loses purchasing power with rising prices, or even bonds, which lose value when inflation leads to higher interest rates. Excessive consumer price increases (defined as over 2% CPI YoY) come from either hypergrowth where demand outstrips supply or reduced supply while demand has changed little. The current inflation spike appears to be a mix of both supply issues from disruptions during the pandemic and demand issues from a dramatic increase in the money supply.


What Does Inflation Do to the Stock Market?

The answer is not straightforward as it depends on all of the contributing factors. If those factors can be easily modified, the markets are likely to react, in advance, to what it will be that changes them. If monetary policy is expected to be tightened, this can slow economic growth and weigh on equity prices as capital will not be as free-flowing. If it is because there is a shortage of supply, the market is likely to react to how quickly the condition will resolve itself. A shortage of supply could come from short-duration events like weather that impacts agriculture, or shipping, which is usually short-lived – also resource shortages result from a supplier not being available. This could be related to embargos, logistics, etc. Price increases from an imposition of tariffs are one-time additions to prices and don’t lead to prolonged inflation. 

Stock market participants are forward-looking. On an ongoing basis, they monitor current and expected conditions and react to how they will impact company earnings. The sweet spot is when inflation has no risk of dropping below zero and is stable within a percentage point of 2%.


Sources: NYU.edu (Stocks), BLS.gov (Consumer Prices)

The markets clearly dislike deflation or negative price growth. The chart above demonstrates that each time inflation went negative that same year or the following year, stocks dropped. So deflation has a positive correlation to stock index levels (decreasing inflation = decreasing stocks). From the chart, we also see when inflation approached or breached 10%, the markets also gave up ground that year or the following year.

A healthy market comes from a healthy economy; a healthy economy is one where supply is meeting demand. This makes growth more predictable, and the markets enjoy predictability. A lack of being able to assess what the future is likely to bring issues in periods of volatility where bulls and bears are most at odds.  The 40-plus year high in CPI has ushered-in the kind of whipsaw volatility that can hurt active investors and traders.

Some investors may seek stock ownership as a hedge against inflation. Companies that own assets that are rising in value help offset the erosion of the native currency. Alternatively, some investors may also find that fixed return investments like those that pay a known interest rate compete much better than the uncertain returns in stocks. Dividend stocks like utilities are often held by income investors like retirees. These stocks are particularly vulnerable should lower-risk bonds offer the same or higher yield than the expected dividends.


Take Away

Markets react to future earnings expectations. If the demand for a company’s product is little changed as prices increase, its earnings should stay relatively stable (food, medicine, government contractors, other non-discretionary). If the product or service will see reduced demand as prices increase, the company is likely to see reduced earnings and lower stock valuations.

Markets also react to expectations of future conditions. If it is expected that whatever the cause of inflation is, is transitory, market participants may look past current conditions. If instead, the expectations are that an aggressive and prolonged tightening stance will shrink the entire economy, then the markets are likely to respond negatively.

The high inflation the U.S. has experienced over the past year has resulted from both supply and demand-related factors. The supply issues are out of the Fed’s control, but it is presumed that these are transitory and related to the pandemic and war in Europe. Current price increases are also the result of trillions of dollars pumped into the economy over a short period of time. The Fed does have more control over this. If they act with aggressive monetary policy, the markets may initially pull back, if it appears the Fed is winning the battle, markets may become more bullish.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

https://www.usinflationcalculator.com/inflation/historical-inflation-rates/

https://investorplace.com/2022/06/what-does-inflation-do-to-the-stock-market/?utm_source=Nasdaq&utm_medium=referral

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Release – PsyBio Therapeutics Expands International Patent Applications

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PsyBio Therapeutics Expands International Patent Applications

Research, News, and Market Data on PsyBio

PsyBio is continuing to increase its psycho-targeted patent
portfolio, executing on its strategic priorities of innovation, development,
and technology optimization

PsyBio now has twenty patent applications in total

OXFORD, Ohio and DENVER, Aug. 8, 2022 /CNW/ – PsyBio Therapeutics Corp. (TSXV: PSYB) (OTCQB: PSYBF) (“PsyBio” or the “Company“), an intellectual property driven biotechnology company focused upon discovery and development of novel, bespoke, psycho-targeted therapeutics to potentially improve mental and neurological health, today is announcing the filing of additional international patent applications in Europe, Africa, and Asia. This brings PsyBio’s total number of patent application submissions to twenty, making it one of the most robust portfolios in the sector.Unsupported image type.PsyBio Logo (CNW Group/PsyBio Therapeutics Corp.)

“Biosynthetic tryptamine production allows the development of psycho-targeted molecules as novel therapeutic candidates, with the goal to potentially help improve human health,” stated Michael Spigarelli, MD, PhD, MBA, PsyBio’s Chief Medical Officer. “Our IP strategy fosters the developmental processes and will allow us to develop these molecules as smoothly and rapidly as possible. Global patent submissions further expand PsyBio’s IP portfolio and support our ongoing plans for growth.”

The patent applications submitted comprise advancements concerning production methodology, host strains and processes of production that support and allow PsyBio’s novel production methodology to be globally protected. These filings demonstrate the Company’s commitment to value creation, while also promoting scientific and methodologic advancements in the field.

“PsyBio is dedicated to leading the development of psycho-targeted therapeutic candidates in our vision to potentially improve mental and neurological health,” stated Evan Levine, PsyBio’s Chief Executive Officer. “With these additional patent submissions, PsyBio continues to demonstrate its leadership in the biosynthetic development field by prioritizing intellectual property protection, which is necessary for us to achieve our business objectives and important for our current and future investors.”

About PsyBio Therapeutics Corp.

PsyBio Therapeutics is an intellectual property driven biotechnology company developing new, bespoke, psycho-targeted therapeutics to potentially improve mental and neurological health. The team has extensive experience in drug discovery based on synthetic biology and metabolic engineering as well as clinical and regulatory expertise progressing drugs through human studies and regulatory protocols. Research and development is currently ongoing for naturally occurring psychoactive tryptamines originally discovered in different varieties of hallucinogenic mushrooms, other tryptamines and phenethylamines and combinations thereof.  The Company utilizes a bio-medicinal chemistry approach to therapeutic development, in which psychoactive compounds can be utilized as a template upon which to develop precursors and analogs, both naturally and non-naturally occurring.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. Forward looking-statements in this press release include statements regarding: the ability of PsyBio to develop novel formulations to potentially treat neurologic and psychologic conditions and other disorders; the ability of PsyBio to build and protect its intellectual property portfolio of novel drug candidates; the ability of PsyBio to launch clinical trials; the ability to achieve cost competitive synthesis with reduced environmental impact over current production methods; and the ability of PsyBio to move target candidates into scaled commercial manufacturing and regulatory application.

In disclosing the forward-looking information contained in this press release, the Company has made certain assumptions, including that: PsyBio will be successful in protecting its intellectual property; PsyBio will be successful in discovering new valuable target molecules; PsyBio will file one or more investigational new drug applications with the United States Food and Drug Administration (“FDA“); PsyBio will be successful in obtaining all necessary approvals for clinical trials; PsyBio will be successful in launching clinical trials; the results of preclinical safety and efficacy testing will be favourable; PsyBio’s technology will be safe and effective; a confirmed signal will be identified in PsyBio’s selected indications; and that drug development involves long lead times, is very expensive and involves many variables of uncertainty. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: compliance with extensive government regulations; domestic and foreign laws and regulations adversely affecting PsyBio’s business and results of operations; decreases in the prevailing process for psilocybin and nutraceutical products in the markets in which PsyBio operates; the impact of COVID-19; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.

PsyBio makes no medical, treatment or health benefit claims about PsyBio’s proposed products. The FDA or other similar regulatory authorities have not evaluated claims regarding psilocybin and other next generation psychoactive compounds. The efficacy of such products has not been confirmed by FDA-approved research. There is no assurance that the use of psilocybin and other psychoactive compounds can diagnose, treat, cure, or prevent any disease or condition. Vigorous scientific research and clinical trials are needed. PsyBio has not conducted clinical trials for the use of its intellectual property. Any references to quality, consistency, efficacy and safety of potential products do not imply that PsyBio verified such in clinical trials or that PsyBio will complete such trials. If PsyBio cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on the PsyBio’s performance and operations.

The TSX Venture Exchange (the “TSXV“) has
neither approved nor disapproved the contents of this news release. Neither the
TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or accuracy of
this release.

SOURCE PsyBio Therapeutics Corp.


Release – Comtech Appoints Ken Peterman President and Chief Executive Officer

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Comtech Appoints Ken Peterman President and Chief Executive Officer

Research, News, and Market Data on Comtech Telecommunications

Company reiterates its financial guidance for the fiscal fourth
quarter and full year 2022

MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 10, 2022– August 10, 2022 — Comtech Telecommunications Corp. (NASDAQ: CMTL) today announced that its Board of Directors has appointed Chairman Ken Peterman President and Chief Executive Officer, succeeding Michael Porcelain effective immediately. Mr. Porcelain has also resigned from Comtech’s Board of Directors. Mr. Porcelain will be available to assist in the transition as needed.

Mr. Peterman joined the Comtech Board in May 2022 after the Board initiated a national search process in January 2022 with the goal of deepening the Board’s industry experience and strengthening its executive leadership expertise. Mr. Peterman’s career spans over 40 years leading major organizations in the creation of innovative, technology-enabled solutions addressing some of the world’s most challenging customer problems. A recognized thought leader in defense and aerospace, Mr. Peterman earned distinguished credentials across multiple technology sectors in both commercial and government markets at companies including Viasat, ITT/Exelis, Collins Aerospace, Raytheon and SpyGlass Group. Most recently, Mr. Peterman served as President of the Government Systems Segment of Viasat.

“Based on the Board’s extensive interactions with Ken since the beginning of 2022, we are confident Ken is the right leader to accelerate Comtech’s ongoing transformation,” said Lead Independent Director Lawrence Waldman. “The refreshed Board is excited to support Ken as he executes on his strategic vision for the Company.”

“I am genuinely excited about Comtech’s enormous potential. Thanks to our dedicated employees, our mission-critical technology portfolio, and our customer-centric culture, I believe Comtech is uniquely positioned to capitalize on the significant investment, steepening growth trajectories and continual renewal cycles taking place in assured communications, space and satellite networks and next-generation 911 failsafe communications infrastructures,” said Chairman and CEO Ken Peterman. “I’d like to thank Mike for his hard work and long-standing dedication to Comtech as well as for the recent groundwork he established to set the stage for the Company’s exciting next chapter. I look forward to engaging more deeply with our employees, customers, partners, and shareholders around the world over the coming weeks.”

“We’re grateful to Mike for his many contributions to the Company over the past 20 years in a variety of key positions,” added Judy Chambers, Head of the Nominating and Governance Committee of the Comtech Board. “We thank him for his longtime commitment to the Company, its customers, and its employees.”

“It has been an honor to lead Comtech,” said Mr. Porcelain. “After serving more than 20 years as a senior executive and positioning the Company for its next chapter, it is the right time for me to take a breather and spend time with my family before moving on to my next endeavor. I appreciated the opportunity to work with the Board to set the Company on a new path, and I know our platform, technologies and teams are in good hands. I intend to remain a shareholder of the Company and will be rooting for Comtech every step of the way.”

The Company reiterates its financial guidance for the fiscal fourth quarter and full year 2022, as provided in a press release issued on June 9, 2022.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications 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. For more information, please visit www.comtech.com.

Forward-Looking
Statements

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.

PCMTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809006117/en/

Investor
Relations
Robert Samuels
631-962-7102

robert.samuels@comtech.com

Source: Comtech Telecommunications Corp.

 


PDS Biotechnology Corp (PDSB) – As PDS0101 Trials Continue, Preparations For Pivotal Studies Begin.

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Wednesday, August 10, 2022

PDS Biotechnology Corp (PDSB)
As PDS0101 Trials Continue, Preparations For Pivotal Studies Begin.

PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technology platforms. Our Versamune®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate and ovarian cancers.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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

Quarterly Loss Was Less Than We Estimated.  PDS Biotech reported 2Q22 loss of $5.8 million or $(0.20) per share, beating our estimated loss of $8.8 million or $(0.34) per share. The differences were largely due to R&D expense of $3.7 million compared with our estimate of $5.3 million, as well as a $1.2 million tax benefit. The company ended the quarter with $53.0 million in cash.

As The Versatile-002 Trial Continues, Phase 3 Planning Begins.  The Phase 2 Versatile-002 trial, testing PDS0101 in combination with the checkpoint inhibitor Keytruda, received a positive opinion from its independent Data Safety Monitoring Board. The recommendation was to continue the trial to completion without any changes to the protocol.  In June, the combination of PDS0101 with Keytruda received Fast-Track designation from the FDA….

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. 

Kratos Defense & Security (KTOS) – Building Award Momentum

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Wednesday, August 10, 2022

Kratos Defense & Security (KTOS)
Building Award Momentum

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.

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.

Awards. Kratos announced the receipt of two drone contract awards over the past two days, building momentum in the space. The first is an approximate $20 million production contract for high performance, jet powered, unmanned aerial target drone systems. The second is an approximate $14 million tactical jet drone contract award. While details of the tactical drone award were limited, we note the Company does reference its manned-unmanned teaming capabilities and the evolution of certain of Kratos’ highest performance, most capable unmanned aerial systems. Kratos is working on a number of manned-unmanned platforms, of which Skyborg is the most well known.

Capabilities. We believe these contract awards are representative of Kratos’ industry leading position for certain of the highest performance and most capable jet drone aircraft flying in the world today. Kratos today has multiple active production lines producing approximately 150 target and tactical jet drone aircraft annually. These new drone production contract awards are a key element of the Company’s future expected growth trajectory….

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

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

Eskay Mining Corp. (ESKYF) – Extending the Strike Length at TV-Jeff

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Wednesday, August 10, 2022

Eskay Mining Corp. (ESKYF)
Extending the Strike Length at TV-Jeff

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

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

New VMS discovery at the Jeff North target. Eskay Mining announced the discovery of a new volcanogenic massive sulfide (VMS) center at the Jeff North target in addition to recent drill intercepts of polymetallic mineralization in two areas along the TV-Jeff corridor within its Consolidated Eskay VMS Project. With four drill rigs deployed, the company has completed approximately 15,600 meters of diamond core drilling to date, or approximately 52% of the 30,000 meters planned to be completed in 2022.

District-scale potential. The TV-Jeff VMS corridor is shaping up to be another large VMS complex with sulfide mineralization along multiple fault structures with intense hydrothermal alteration of volcanic rocks. The discovery of Jeff North extends the strike length of the known TV-Jeff VMS corridor to 3.7 kilometers. Anomalous geochemical results from soil samples collected indicate mineralization potentially extends another two kilometers further north from Jeff North….

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. 

Defense Metals Corp. (DFMTF) – Setting Up for a Compelling Preliminary Feasibility Study

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Wednesday, August 10, 2022

Defense Metals Corp. (DFMTF)
Setting Up for a Compelling Preliminary Feasibility Study

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

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

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

Resource infill and exploration drilling completed. Defense Metals announced the completion of its 2022 resource infill and exploration diamond drilling program. A total of 12 holes, representing over 3,500 meters, were drilled with initial assay results expected during September or October 2022. Drilling was centered in northern and central areas of the Wicheeda REE deposit pit area outlined in the company’s preliminary economic assessment (PEA).

Geotechnical drilling commences. Geotechnical drilling will aid optimizing the open pit slope design. Five geotechnical drill holes are contemplated and will target the north, west, south, and east high walls of the pit in the Wicheeda PEA mine plan. Data from the geotechnical drilling will be used to support future advanced economic studies….

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. 

ACCO Brands (ACCO) – Post Call Commentary

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Wednesday, August 10, 2022

ACCO Brands (ACCO)
Post Call Commentary

ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.

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.

Hit the Reset Button. The major drag on 2Q results and full year guidance is PowerA. After a fantastic 2021, a lack of chips for consoles and a more normalized level of demand post-COVID resulted in PowerA sales declining in 2Q. ACCO’s management also gave an updated full year projection for PowerA, for which sales are estimated to be down 10-15%, or about $25-$40 million, for all of 2022.

Forex No Friend. The other major contributor to reduced guidance is forex headwinds. Forex is now expected to have a negative 4.5% impact on revenue for the year, up 200 bp from management’s previous expectation. Outside of PowerA and forex, the rest of ACCO’s business looks solid, although a significant economic downturn could change that view….

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. 

Cathie Wood’s Expectations for Inflation, Recession, Markets, China, and Jobs

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Image: Bloomberg TV (August 8, 2022)


Why Cathie Wood Thinks We Will Emerge from A Recession More Quickly than Others

Cathie Wood, the founder, and CIO of Ark Invest, was asked in an interview, “Is the Fed going to continue hiking rates, or are they going to stop and turn around and come back down next year?” Her response was not initially uplifting, but as she explained why her firm has evaluated the current economic growth trajectory and what the future may bring, the fund manager, that focuses on innovative sectors, was actually optimistic.


Are Jobs Strong?

Wood brought up July’s huge unexpected increase in Non-Farm Payroll and contrasted it with the Household Employment numbers (a broader-based survey). She reminded the Bloomberg interviewer that Household Employment “…has been flat to down for the last four months.”  She added, “If you look at [unemployment] claims, we’ve never seen a faster increase.” She thinks people don’t weigh in the fact that we are up 50% off the low in unemployment. Cathie Wood also mentioned that large numbers of people are being laid off, then she referenced a Challenger survey that reported layoffs are up 55-60% year-over-year.

The reason she gave for the layoffs is inventory levels. “We have a massive inventory glut.” She believes the push to hire is ending and unwinding.


Is Inflation a Non-Issue?

Cathie Wood had been on record as previously saying, “deflation is more of a concern than inflation.” She was asked if she still feels this way. “I still think that because the evidence is piling up. Now the CPI and to some measure the PPI, both of those are lagging indicators.” She emphasized, “The Fed is driving policy off lagging indicators.”

What she prefers to look at is the price of commodities used for building and growth like copper. She said that copper took a decisive break to the downside (20%), but the decrease hasn’t yet fed into the inflation indexes. Wood says a better measure of where inflation is headed is gold. “Prices [Gold] peaked August 2020, we’ve been in a trading range, we’re at the low end of the trading range now.” She believes if the Fed continues to tighten, her firm’s expectation is the dollar will turn back up, and commodities will continue
to fall.

The next inflation report is due Wednesday (August 10). An Econoday consensus estimate puts July headline inflation at 8.7%, cooling from 9.1% in June.


Are We in a Recession?

“Yes, we believe we are in a recession.” Wood told the interviewer. She explained that the economy receded for two consecutive quarters, which is the beginning of the definition. Three consecutive declines in leading indicators would suggest the same, she explained. “Our point of view is this is going to be a severe inventory recession, but we don’t have the systemic excesses like we did pre-2008, 2009 in the mortgage market.” She explained that while many economists use the inverted yield curve and say it indicates a recession next year, she believes we will be coming out of our current recession next year.


What’s Going on in China?

Cathie Wood says the big question is what is going on in China? She offered that perhaps the commodity prices unraveling has to do with the Chinese economy, especially their growth-inhibiting policies and real estate problems. She thinks China’s economy is going to be more difficult for them to control than they anticipated.


Why Stay Invested?

She was asked if it makes sense to move to cash since there are possible trouble spots on the horizon. In classic, confident optimism, Cathie Wood responded, “We are going to stay 100% in innovation.” Her reason is innovation is going to be a critical allocation in the years ahead. She explained, “Innovation saves time. Innovation solves problems.” She then listed the current problems, as supply chain, and energy, and food price increases. “Better, cheaper, faster, more productive, more efficient, more creative, is going to win,”  she exclaimed.

Wood thinks most asset allocators are short the innovation categories. Her idea of the sector is not current day high tech Nasdaq 100, but what Nasdaq used to be in the 1990s.

The Federal Reserve will reverse course on interest-rate policy next year by yanking down borrowing rates in the face of weaker activity in the US economy, disruptive-tech investor Cathie Wood told Bloomberg TV.

“We’re getting all kinds of signals that the economy is very weak,” which will prompt the Fed to start rate cuts in 2023, she said Monday.

 

Take Away

The well-followed manager always has strong convictions, they are often contrary to popular opinion. These forecasts have both served her firm and investors well and have caused disappointment when the volatile innovative sector is giving back gains.

She said that she will stay 100% invested as the industries and companies her funds are most heavily weighted in will be the kind of companies that help resolve issues weighing on consumers and economies today.

Did you know Channelchek has no paywall – and never will? Take the time to sign-up now for regular emails on quality research of innovative companies and insightful articles and ideas.

Paul Hoffman

Managing Editor, Channelchek

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https://www.bloomberg.com/news/videos/2022-08-08/cathie-wood-on-the-fed-economy-coinbase-tesla-video

https://www.econoday.com/august-boe-mpc-preview-time-for-a-change-of-gear/

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Release – Harte Hanks to Present at the 12th Annual Midwest IDEAS Investor Conference on August 24th and 25th in Chicago, IL

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Harte Hanks to Present at the 12th Annual Midwest IDEAS Investor Conference on August 24th and 25th in Chicago, IL

Research, News, and Market Data on Harte Hanks

CHELMSFORD, MA / ACCESSWIRE / August 9, 2022 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for nearly 100 years, today announced that Brian Linscott,its Chief Executive Officer, will present at the Midwest IDEAS Investor Conference on Wednesday, August 24, 2022, at The Gwen in Chicago, IL. Harte Hanks’s presentation is scheduled to begin at 11:00am CT. The presentation will be webcast and may be accessed through the conference host’s main website: https://www.threepartadvisors.com/midwest and in the investor relations section of the company’s website: https://investors.hartehanks.com/.

About IDEAS Investor Conferences

The mission of the IDEAS Conferences is to provide independent regional venues for quality companies to present their investment merits to an influential audience of investment professionals. Unlike traditional bank-sponsored events, IDEAS Investor Conferences are “SPONSORED BY INVESTORS. FOR
INVESTORS.” and for the benefit of regional investment communities. Conference sponsors collectively have more than $200 billion in assets under management and include: 1102 Partners, Adirondack Research and Management, Allianz Global Investors: NFJ Investment Group, Ariel Investments, Aristotle Capital Boston, Barrow Hanley Mewhinney & Strauss, BMO Global Asset Management, Constitution Research & Management, Inc., Fidelity Investments, First Wilshire Securities Management, Inc., Gamco Investors, Granahan Investment Management, Great Lakes Advisors, Greenbrier Partners Capital Management, LLC, GRT Capital Partners, LLC, Hodges Capital Management, Ironwood Investment Management, Keeley Teton Advisors, Luther King Capital Management, Marble Harbor Investment Counsel, North Star Investment Management, Perritt Capital Management, Punch & Associates, Westwood Holdings Group, Inc., and William Harris Investors.

The IDEAS Investor Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC. Additional information about the events can be located at www.IDEASconferences.com.

If interested in participating or learning more about the IDEAS conferences, please contact Lacey Wesley at (817) 769 -2373 or lwesley@threepa.com.

About Harte Hanks:

Harte Hanks (Nasdaq:HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands, including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe, and Asia Pacific.

Investor Relations Contact:

FNK IR
Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
HHS@fnkir.com

For media inquiries, contact Jennifer London at Jen.London@HarteHanks.com

SOURCE: Harte Hanks, Inc.

 

Should Medical Cannabis Patients be Forbidden from Owning Firearms?

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Image Credit: Raymond Clark (Flickr)


The DOJ’s Case Against Allowing Medical Marijuana Users from Purchasing a Gun

Is it  “dangerous to trust regular marijuana users to exercise sound judgment” with firearms? The Department of Justice responded to a lawsuit asking the court to dismiss a medical marijuana lawsuit on Monday (August 7). The suit was filed by an agriculture official in Florida. The circumstances involved patients using cannabis; it claims that the federal government is unconstitutionally depriving them of their Second Amendment right to purchase and possess firearms. The DOJ asked a federal court to dismiss the lawsuit claiming it seeks to overturn policy involving medical marijuana users and their inability to own firearms.

The suit was filed by Agriculture and Consumer Services Commissioner Nikki Fried (D), who is a candidate in Florida for governor. It made a unique legal argument that a congressional spending rider prevents the use of Justice Department funds to interfere in the implementation of medical marijuana programs.

Presently, in order to buy a gun, citizens are required to fill out a federal form that explicitly asks about the use of (federally) illegal drugs. Applicants that use cannabis, which is legal for medical use in Florida, are not allowed to purchase a gun and could face up to five years in prison if they lie on the application.

This case has national implications and is of interest not just to those that benefit from medical cannabis but also to investors in medical marijuana.


Components of the Case

The suit alleges a federal rule that bars medical marijuana patients from having guns is unconstitutional.

In its motion to dismiss the case or secure a favorable judgment, the U.S. DOJ claimed that the policies being challenged by the lawsuit only apply to people who use illegal drugs, in this case, cannabis. Therefore, Second Amendment rights of law-abiding citizens are not barred.

“These laws merely prevent drug users who commit federal crimes by unlawfully possessing drugs from possessing and receiving firearms, and only for so long as they are actively engaged in that criminal activity,” the DOJ brief to dismiss claimed.

The DOJ referenced Florida’s own medical consent form accepted by Florida marijuana regulators; the DOJ noted that it warns, that marijuana “impairs judgment, cognition and physical coordination, including ‘the ability to think, judge and reason.'” The DOJ added that there was a deeply rooted practice in American law and policy of not allowing dangerous or lawbreaking individuals to possess firearms.

“A long tradition exists of viewing intoxication as a condition that renders firearms possession dangerous, and accordingly restricting the firearms rights of those who become intoxicated,” the brief said.

In the complaint, filed April 20, 2022, the plaintiffs claim the central question in the case is whether the physical and/or psychological effects of medical marijuana render users “sufficiently dangerous or violent” so that possession or use of a firearm would cause concern.

They further referenced a study that demonstrated that medical marijuana has no such effect. The plaintiffs referenced the 2013, Office of National Drug Control Policy study that concluded there was “little support for a contemporaneous, causal relationship between the use of marijuana ‘and either violent or property crime.'”

In its Monday brief, the DOJ countered that “marijuana users with firearms pose a danger comparable to, if not greater than, other groups that have historically been disarmed,” in part because cannabis remains federally illegal.

The government argued further that Nicole Fried, the state Department of Agriculture and Consumer Services commissioner who brought the lawsuit, had no standing to bring the action since she did not allege her right to possess firearms had been infringed.

The DOJ is seeking the dismissal of all claims.

The case is Fried et al. v. Garland et al., case number 4:22-cv-00164, in the U.S. District Court for the Northern District of Florida.


Take Away

It is presumed by many that marijuana for medical use and study will at some point be
dropped as a schedule 1 drug. Despite a number of bills in the house and the Senate that, if passed and signed into law, would accomplish reclassification, to date, marijuana is still illegal on a federal level.

The status is complicated by the fact that 37 of the 50 states allow medical use for qualified individuals. The case filed by Florida’s Agricultural Secretary Fried attempts to still uphold second amendment rights to those approved for and using medical marijuana in Florida. The U.S. Department of Justice is opposed.

There is no indication whether a change in federal legal status would change, in the DOJ’s mind, the dangers of allowing firearm ownership to these patients.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://www.orlandosentinel.com/news/os-ne-prem-nikki-fried-medical-marijuana-20210611-dzil5daz7rfw7k7mjf6szxpo7y-story.html

https://www.marijuanamoment.net/florida-official-sues-biden-administration-over-gun-rights-for-medical-marijuana-patients-on-4-20/

https://www.law360.com/health/articles/1519290/doj-says-medical-pot-patients-have-no-right-to-bear-arms?copied=1

https://unicourt.com/case/pc-db5-fried-et-al-v-garland-et-al-1182072

https://www.dea.gov/sites/default/files/2020-06/Marijuana-Cannabis-2020_0.pdf

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Release – Defense Metals Diamond Drilling Update Infill and Exploration Drilling Complete And Pit Slope Geotechnical Drilling Underway

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Defense Metals Diamond Drilling Update Infill and Exploration Drilling Complete And Pit Slope Geotechnical Drilling Underway

News, and Market Data on Defense Metals

VANCOUVER, BC, Aug. 9, 2022 /CNW/ – Defense Metals Corp. (“Defense
Metals” or the “Company“) (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to provide an update for its ongoing diamond drilling at its Wicheeda Rare Earth Element (REE) deposit. The 2022 resource infill and exploration diamond drill campaign is now complete and pit slope geotechnical drilling underway.

Figure 1. Wicheeda REE Deposit PEA Ultimate Pit Geotechnical Drill Plan (CNW Group/Defense Metals Corp.)

A total of 12 diamond drill holes totalling over 3,500 metres have been drilled to date within the northern and central areas of the Wicheeda REE Deposit preliminary economic assessment (PEA) mine plan ultimate pit area, with initial assays results from the earliest drill holes expected during September or October 2022.

All materials, instrumentation, and technical personnel have now been mobilized to site to commence geotechnical drilling for the purpose of open pit slope design optimization. A total of 5 geotechnical drill holes targeting the north, west, south, and east high walls of the Wicheeda PEA mine plan ultimate pit are planned (Figure 1). Data collection will include oriented drill core, field point load and laboratory-based intact rock and discontinuity strength testing, vibrating wire piezometer, and standpipe piezometer installation for hydrogeological investigations.

Kristopher Raffle, P.Geo., Director and QP of Defense Metals commented: “Defense
Metals is very pleased with the progress of the 2022 infill and exploration
drilling to date, and we look forward to gathering important pit slope
geotechnical data to support future Wicheeda REE Deposit advanced economic
studies.”

Management Site Visit

Concurrent with the commencement of geotechnical investigations Defense Metals’ management has arranged for a Wicheeda field visit during the week of August 15, 2022, to accompany strategic interested parties and capital market analysts.

About the Wicheeda REE
Property

The 100% owned 4,244-hectare Wicheeda REE Property, located approximately 80 km northeast of the city of Prince George, British Columbia, is readily accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway, and major highways.

The Wicheeda REE Project yielded a robust 2021 PEA that demonstrated an after-tax net present value (NPV@8%) of $517 million, and 18% IRR1. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade flotation-concentrate. The PEA contemplates a 1.8 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life producing and average of 25,423 tonnes REO annually. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would yield rapid access to higher grade surface mineralization in year 1 and payback of $440 million initial capital within 5 years.

____________________________

1 Independent Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project, British Columbia, Canada, dated January 6, 2022, with an effective date of November 7, 2021, and prepared by SRK Consulting (Canada) Inc. is filed under Defense Metals Corp.’s Issuer Profile on SEDAR (www.sedar.com).

Qualified Person

The scientific and technical information contained in this news release as it relates to the Wicheeda REE Project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and a “Qualified Person” as defined in NI 43-101. Mr. Raffle verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions contained therein.

About Defense Metals
Corp.

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

For further information,
please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: 
todd@blueskycorp.ca

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

Cautionary Statement
Regarding “Forward-Looking” Information

This news release contains “forward?looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, statements relating to advancing the Wicheeda REE Project, drill results including anticipated timeline of such results/assays, the Company’s plans for its Wicheeda REE Project, expanded resource and scale of expanded resource, expected results and outcomes, Wicheeda site visit and expected outcomes, the technical, financial and business prospects of the Company, its project and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company 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 may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company’s profile on SEDAR at www.sedar.com. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations),  risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of personnel, materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological and engineering assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to, the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, loss of key employees, consultants, or directors, increase in costs, delayed drilling results, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward?looking statements or forward?looking information, except as required by law.

SOURCE Defense Metals Corp.