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More Sulphides in Step Out Holes at Bald Hill Cobalt-Copper Prospect
Rimfire Pacific Mining (ASX: RIM, “Rimfire” or “the Company”) is pleased to advise that the first two diamond drill holes completed as part of a larger 6 hole (~1,000 metre) step out drilling program at the Bald Hill Cobalt Copper Prospect, have successfully intersected multiple broad zones (downhole widths) of sulphide mineralisation 100 – 200m away from previous high-grade cobalt drill intercepts.
Highlights
- The first two holes in the current diamond drilling campaign have intersected multiple broad zones (downhole widths) of sulphide mineralisation 100 – 200m away from previous high-grade cobalt drill intercepts;
- FI2612 intersected disseminated and banded sulphides (pyrite) between 70 and 110m, and semi-massive sulphides (pyrrhotite) between 110 and 129m
- FI2613 intersected disseminated and banded sulphides (pyrite) between 67 and 105m, disseminated and fracture – fill sulphides (pyrite) between 105 and 128.5m and brecciated semi – massive sulphides (pyrrhotite) between 151.9 and 185.1m
- The sulphides intersected in the current drillholes are visually similar to the high-grade mineralised intercepts obtained in Rimfire’s previous drilling at Bald Hill with assay results required for confirmation
- First assay results expected within 6 to 8 weeks as the 6-hole diamond drilling program continues
Commenting on the announcement, Rimfire’s Managing Director Mr David Hutton said: “The Bald Hill prospect continues to grow with broad zones of great - looking sulphides intersected in the latest step out holes.
The diamond drilling is helping our geologists build a detailed model for the prospect and we look forward to seeing what the rest of the program delivers.
Drilling, geological logging, and sampling is continuing, with first assays expected in 6 to 8 weeks’ time and Rimfire looks forward to providing further updates as new information comes to hand.”
Figure 1: FI2612 diamond (NQ) drill core from 112.32 to 119.45 metres showing semi- massive sulphides from 112.32 metres to 117.40 metres. The location of Figure 2 is shown by the red square.
Figure 2: Detail of semi massive sulphides around 114.40 metres in FI2612 with location shown in Figure 1 above. Brown sulphides are pyrrhotite and pale-yellow sulphides are pyrite.
Click here for the full ASX Release
This article includes content from Rimfire Pacific Mining Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Progress on Approval of an Environmental Impact Assessment (EIA) Nxuu Deposit Infill Drilling Programme
Mount Burgess Mining Ltd (MTB:ASX, the “Company”) is pleased to update on 21 December 2023, after several months of review and amendments to an initial DRAFT EIA (Scoping Report) the Botswanan Department of Environmental Protection (DEP) confirmed it had approved that Scoping Report and requested a Final EIA be lodged following MTB’s receipt of DEP’s comments.
The final EIA was lodged with DEP early in February 2024.
On 4 September 2024, the DEP in Maun, Botswana, emailed the Company’s Environmental Consultants advising that following its review of the Revised EIA for the Nxuu Project it can now proceed to the next step being a Public Review of the Environmental Impact Assessment (EIA) for the Nxuu Deposit Infill drilling programme.
DEP has requested the Company submit a draft public review notification to them for endorsement prior to placement in a Government Gazette and newspaper, inviting written comments and/or objections. The draft notification should state:
a) The nature and magnitude of activity.
The nature and magnitude of activity can only be described as being negligible, consisting of some 2,600m of infill HQ diamond core drilling.
b) The location of the activity.
The location of the activity is within Tribal Land used for cattle grazing.
c) The anticipated environmental impacts of the activity.
The anticipated environmental impacts of the drilling activity can only be described as being negligible as previous drilling in the area has all been approved by local communities.
d) The proposed mitigation measures to respond to negative environmental impacts.
Mitigation measures to respond to negative environmental impacts have not been required when conducting previous drilling. The HQ diamond core is cased for extraction. Chemicals used during cased core extraction do not cause any environmental hazards. All onsite personnel are required to comply with the Company’s Environmental Plan.
Progress Summary
The Company has now reached a stage where:
- A DRAFT of a proposed FINAL EIA was approved by DEP on 21 December 2023.
- After amendments requested by the DEP and applied to the DRAFT EIA, DEP advised on 4 September 2024 that the Final EIA, subject to their endorsement, is now ready to proceed to the Public Review stage.
- This allows for the publication of a FINAL EIA to be reviewed and responded-to within a two-week timeframe, by anyone involved in the area.
- Subject to there being no further issues raised through the publication of the EIA, the timeframe to the completion of the EIA review period is estimated to be in the region of four to six weeks.
- This will then allow the Company to schedule its 2,600m program of infill HQ diamond core drilling at the Nxuu Deposit, which will enable preparation of a Pre-feasibility Study to be followed by a Definitive Feasibility Study.
Prospecting Licence PL43/2016 – 100% Owned and Operated by MTB
Click here for the full ASX Release
This article includes content from Mount Burgess Mining NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
MCA Announces Women in Resources Award Winners
‘Vital to promote diversity and attract the next generation of inspirational leaders’
A former mining opponent, a brilliant materials engineer and a respected leader in the male-dominated offshore drilling space are among the winners of Australia’s 2024 Women in Resources National Awards announced in the nation’s capital this week.
Queensland University of Technology PhD student and BHP portfolio lead Ashara Moore followed up her Exceptional Young Woman in Queensland Resources award earlier this year by taking out the national award.
Group manager of materials and innovation at Western Australia-based Callidus Process Solutions, Dr Evelyn Ng, took out the Maptek Woman in Resources Technological Innovation award.
Dr Evelyn Ng
Head of energy group Woodside Energy’s global wells and seismic arm, Josie Fourie, received the Dyno Nobel Exceptional Woman in Australian Resources award. The winner of the 2024 WA Outstanding Woman in Resources award is a chemical engineer who has spent 25 years in the upstream energy sector, becoming the most senior woman in offshore drilling in Australia.
Josie Fourie
Moore, Ng and Fourie were among 29 women and four organisations nominated for six awards at the 11th annual Women in Resources National Awards in Canberra, hosted by the Minerals Council of Australia in partnership with the New South Wales Minerals Council, the Queensland Resources Council, the Chamber of Minerals and Energy WA, the Tasmanian Minerals, Manufacturing and Energy Council and the South Australian Chamber of Mines and Energy.
The awards are supported by Women in Mining Network state branches.
Queensland-based Kanae Dyas, workplace support manager at Anglo American, took out the Rio Tinto Inclusion and Diversity Champion in Australian Resources Award.
Nadine Hill, an openpit supervisor at Evolution Mining’s Cowal gold operation in NSW, won The Bloomfield Group Outstanding Tradeswoman/Operator/Technician Award.
Major mining services group Thiess headed four groups who were vying for the Mitsubishi Corporation Development Diversity Programs and Performance Award with its Mt Arthur South Indigenous/Inclusive Trainee Employment nomination.
WA Chamber of Minerals and Energy CEO Rebecca Tomkinson said Fourie and Ng were shining examples of the growing pool of talented women breaking new ground in the resources industry.
“Women comprise a growing proportion of the sector’s work force and they’re not just making up the numbers. In so many instances they are highly respected leaders driving innovation in their fields,” Tomkinson said.
“The industry has a long-standing focus on improving diversity. The benefits of that approach are on full display through the field of hugely impressive finalists selected for the 2024 awards.
“While much work has already been done, boosting female participation – from mine sites and laboratories through to the boardroom – remains a priority for the sector.
“Highlighting the achievements of exceptional women like Josie Fourie and Dr Evelyn Ng is a vital part of continuing to promote diversity and attracting the next generation of inspirational leaders.”
Ng, who started her career with First Quantum Minerals at Africa’s largest copper mine in Zambia, has worked on five continents and in her current role at Perth-based Callidus is said to be the only materials engineer among more than two dozen mechanical engineers in a company with over 300 employees.
Ng leads forensic investigations of plant and machine failures, developing quality assurance specifications, as well as overseeing the group’s R&D and intellectual property.
Two recent Callidus patents – one for a bi-metallic coating system and another involving titanium-nitride surface hardening – are seen to have potential to be game-changers in the mining industry.
Ashara Moore, who wants to change tailings management in mining, admitted in an interview after she won a 2023 Women in Industry Award in Queensland she had gone into a work experience interview with Rio Tinto “morally opposed” to the industry.
She said after early exposure to the industry and then starting her career she came to see it “was trying to do and be better [and] it was a sector that I thought I could make a positive difference within”.
Through her QUT PhD study Moore wants to develop a new carbon reduction technology (CRT) that can help mines cut emissions and positively impact future management of tailings.
“I am pro finding solutions to ensuring that our sector can peacefully co-exist with our environment,” Moore has said.
“Tailings management … is the avenue in which I wish to play my part.
“My PhD study is just one very small, very niche segue toward achieving that goal.
“By targeting mining waste, one of the most substantial potential environmental impactors within industry, and hopefully finding more sustainable and responsible ways of managing this waste, I hope to contribute to the ESG agenda gaining momentum in the sector.
“I am hoping to achieve a new normal about the way we think about tailings waste.”
Last August she presented her preliminary findings to the World Chemistry Conference in the Hague, Netherlands.
IMARC applauds winners of this year’s 2024 Women in Resources National Awards.
So far, more than 130 confirmed speakers at this year’s International Mining and Resources Conference in Sydney are women, ranging in roles from the C-suite through to undergraduate students. IMARC's Balance for Better commitment also includes the working partnerships with industry groups IWIMRA, WISER, WIMnet NSW, WIMARA, to name a few.
IMARC chief operating officer Anita Richards says the large contingent of female speakers reflects the event’s “unwavering commitment to balance for better, an initiative dedicated to promoting equality, diversity, and inclusion throughout the mining sector”.
Mining Stocks Take Spots as Top Performers on TSX30 List
The Toronto Stock Exchange (TSX) has released its annual TSX30 list, showcasing the 30 top-performing companies that are making the most impact in driving Canada’s economy forward.
Established in 2019, the TSX30 ranks stocks by their dividend-adjusted share price performance over three years.
According to the TSX, this year's constituents have a combined market cap of C$380 billion, with 25 of the 30 companies on the list coming from one of three sectors: oil and gas, industrial products and services and mining.
Hammond Power Solutions (TSX:HPS.A,OTC Pink:HMDPF) is in the top spot, achieving a dividend-adjusted share price increase of 928 percent over the three year period considered by the TSX.
Six mining companies made it onto the list, including major uranium producer Cameco (TSX:CCO,NYSE:CCJ) and Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK), which has a strong base metals focus.
They ranked 14th and 24th, respectively, with gains of 186 percent and 140 percent.
China Gold International Resources (TSX:CGG,OTC Pink:JINFF) also made a notable appearance on the TSX30 list, ranking in 11th place with a 208 percent increase. Filo (TSX:FIL,OTCQX:FLMMF), Dynacor Group (TSX:DNG,OTC Pink:DNGDF) and Alamos Gold (TSX:AGI,NYSE:AGI) also made the final cut.
While many of these firms are focused on gold, others have important roles in meeting growing demand for energy-related commodities that are essential for the ongoing transition to clean power.
The TSX notes that a key takeaway from the 2024 list is the shift from growth to value investing.
This year, approximately 63 percent of the companies on the TSX30 pay dividends, with an average yield of 2.8 percent, indicating a rising interest in stable, cash-generating businesses.
That's a significant increase from 2021, where only eight companies on the TSX30 paid dividends.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Report: Australia's Clean Energy Ambitions Hinge on More Mining Investment
The Minerals Council of Australia (MCA) has released a new report focused on strategies the country can use to integrate its mining industry into fast-growing and high-demand global supply chains.
The document underlines that Australia's federal government is keen to see the nation become a renewable energy superpower and "move up the value chain" when it comes to clean energy technologies.
“To achieve this ambition, it is critical to recognise that there will be no downstream processing or moving along the value chain without a strong vibrant mining sector. It’s where it all starts," the MCA states.
With global electricity expected to double by 2050, the organisation also points out that all types of energy — including renewables, batteries, coal, nuclear and hydrogen — will be required to meet future needs.
Keeping those points in mind, the MCA shares 10 recommendations that it believes can help Australia leverage its comparative advantage in mining and minerals processing. They are as follows:
- Retain the fuel tax credit scheme and commit to no new or additional taxes
- Ensure least-cost abatement under the safeguard mechanism
- Increase efficiencies of mining assessments and environmental approvals
- Put productivity at the heart of workplace relations and reverse adverse changes
- Improve community benefits and liveability in mining’s host communities
- Mining is not just “dig and ship”
- Level the playing field for generators to deliver least-cost, secure electricity
- Invest in common user mobile assay laboratories for quick testing of exploration samples
- Integrate Australian mining into global clean technology supply chains
- Activate and resource a single front-door service for project investors
- Deliver and fund a common user infrastructure plan within two years
In the report's conclusion, the MCA emphasises that mining investment has stalled in Australia. This issue will need to be resolved if Australia is to become an important global supplier of critical minerals.
"The problem lies in Australia’s investment environment. Committing to mining projects involves considerable risk to capital. Commodity price volatility, a high cost base and growing uncertainty make investment decisions highly sensitive to policy setting," it explains, adding that good policies and government initiatives will be key to improving the situation.
"(This) investment strategy gives Australia the best chance of successfully responding to industry policies in other countries by ensuring mining remains a vital pillar of our nation’s prosperity, now and into the future," the MCA states.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
Tumas 3 Drilling Achieves Measured Resource Target
Deep Yellow Limited (Deep Yellow or Company) is pleased to announce an updated Mineral Resource Estimate (MRE) for the Tumas 1, 1 East, 2 and 3 Deposits (refer Figure 1), located on Mining Licence 237 (ML237) in the Erongo Region of Namibia. The deposit is held by Deep Yellow through its wholly owned subsidiary Reptile Uranium Namibia (Pty) Ltd (RUN).
HIGHLIGHTS
- Tumas 3 Measured Mineral Resource upgraded to 22.5 Mlb at 300 ppm eU3O8
- At a 100 ppm cut-off, the updated Tumas 3 MRE has a Measured and Indicated Mineral Resource totalling 58.2 Mlb at 320 ppm eU3 O8
- Tumas 1, 2 and 3 Measured Mineral Resource upgraded to 38.5 Mlb at 253 ppm eU3O8
- Remaining Indicated Mineral Resources include 63.6 Mlb at 278 ppm eU3 O8
- Total Measured and Indicated Mineral Resources of Tumas 1, 1 East, 2 and 3 at 102.1 Mlb at 268 ppm eU3O8
- Mineral Resource Estimate upgrade follows 660 hole, 12,727 m RC resource infill drill program completed in June 2024
- Tumas Project successfully achieves targeted +30-year Life-of-Mine
- Significant upside potential remains to further increase the resource base associated with this highly prospective target
- Ongoing resource drilling is planned to the west of Tumas 3 during FY2025, focusing on identifying an additional 30 Mlb to achieve a +35-year Life-of-Mine
- The Ore Reserve Estimate for the Project, using current pricing points, will now be revised based on this upgraded Mineral Resource Estimate
The Mineral Resource status upgrade is required to enable the definition of sufficient Proven Mineral Reserves for the first six years of operation and to support project financing. The objective of the program was to improve drill spacing in parts of Tumas 3 to 50 m x 50 m to enable the conversion of approximately 20 Mlb U3O8 from the Indicated to Measured JORC Mineral Resource status and collect additional core samples to enhance the density database of the orebodies.
The resource drilling has covered the pit locations which are planned to be mined in the initial six years of operations, as defined in the Tumas Definitive Feasibility Study (DFS). By the end of June 2024, 100% of the program, including 660 RC holes for 12,727 m and six diamond core holes for 144.1 m, was completed. After all outstanding data, including density determinations, had been received and validated the drilling program was followed by a mineral resource estimation with the results reported in this announcement.
Tables 1, 2 and 3 in Appendix 3 list the RC drill hole locations and intersections greater than 100 ppm U3O8. Diamond core holes were completed for density determinations only.
Based on this work, the drill program has successfully established a measured mineral resource for Tumas 1, 2 and 3, whilst materially maintaining the overall grade and uranium content of the deposits. While the resource status upgrade to Measured Resources at Tumas 3 is based on increased drill density, an upgrade to Measured Resource category was also achieved at Tumas 1 and 2, due to better definition of ore densities.
Overall, at a 100 ppm eU3 O8 cut-off grade, the Tumas 1, 1 East, 2 and 3 Mineral Resource now stands at Measured and Indicated Mineral Resources of 102.1 Mlb grading 268 ppm, and an Inferred Mineral Resource of 16.1 Mlb at 196 ppm eU3O8, totalling 118.2 Mlb at 255 ppm eU3O8.
A reserve update based on the new mineral resource is currently in progress. This reserve update will be based on the DFS metrics, incorporating the DFS review impact (December 2023) and involve a re-optimisation of the Ore Reserve Estimate in preparation for the expected commencement of mining operations in the pre-production phase of project execution next calendar year.
The Company is confident that the reserve update will extend the operating life of Tumas to over 35 years. The detailed engineering for the Project, which is currently underway, will provide a control capital estimate and detailed execution schedule. In parallel, marketing enquiries, funding advancement (announced July 2024) and re-running of the Project financial model will be undertaken.
Deep Yellow Managing Director Mr John Borshoff commented: “Tumas is a standout, Tier-1, long-life Project and the team continues to tick all the boxes as we progress with project financing and marketing ahead of a final investment decision (FID) later this year.
“Delivery of the Tumas Mineral Resource upgrade across the areas earmarked for the initial six years of mining highlights the potential of the mineralised system identified at Tumas to deliver quality uranium resources.
“Remarkably, even with the detailed infill drilling on the Tumas 3 deposit to convert resources from Indicated to the more stringent Measured category, the quantity and quality of the Tumas 3 resource has remained well within the acceptable range.”
Click here for the full ASX Release
This article includes content from Deep Yellow, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Global Investing: How to Diversify with an International Portfolio
In an increasingly connected world, savvy investors are looking beyond domestic borders to diversify their portfolios and capitalize on global opportunities.
Here the Investing News Network explores how North American investors can access international markets, from simple methods like exchange-traded funds (ETFs) to more complex approaches involving direct foreign investment.
Please note that this article is written with a focus on North American investors and may not fully account for the unique financial regulations, tax laws and investment practices of other regions.
What are the pros and cons of global investing?
International investing is a strategy that offers advantages and challenges. It provides access to a range of opportunities in emerging markets and high-growth sectors that may be underrepresented in North America. International stocks offer the benefit of portfolio diversification as investors can spread their stakes across different markets and currencies.
Another advantage of investing in international markets is its positive impact on the global economy. Foreign direct investment can greatly impact wealth distribution and help develop successful economies.
A flourishing global economy also benefits North American investors as economic growth in foreign markets can increase the demand for goods and services from North America.
However, investing in foreign markets also exposes investors to risks. The value of foreign investments can be affected by currency fluctuations, and return on investment may be offset by transaction costs. Market volatility arising from political and economic instability in foreign markets can also negatively impact a stock’s performance.
Moreover, international investment involves navigating different regulatory frameworks and the potential unavailability or unreliability of information about foreign enterprises and markets compared to domestic ones. This difference poses a significant challenge in making well-informed investment decisions.
“The oft-stated purpose for foreign capital deployment is to seek higher returns, improve diversification, reduce aggregate return volatility and hedge loss of purchasing power of (the) home currency,” said Stephen Johnston, a private equity manager and director of Omnigence Asset Management. “The high-level tradeoffs are political and regulatory risk and enhanced administrative and tax complexity, depending on the foreign destination."
Johnston continued:
“Pension plans are susceptible to this reasoning as they cannot invest in higher return niche domestic opportunities given their material capital deployment needs — not so for non-institutional investors.
“It follows then that many investors could, within reason, be agnostic as to the domicile of their investment holdings, as long as those holdings suitably enhance their portfolios along the parameters above and can be implemented at the scale suitable to their individual deployment needs.”
Global investing for beginners
While global investing may sound complex it can be relatively straightforward for North Americans.
To invest in specific stocks, one option is purchasing American depositary receipts (ADRs). ADRs are issued by US banks to foreign companies, with the bank acting as a depository holding the underlying foreign shares. ADRs represent shares of a foreign company trading on a US stock exchange, denominated in US dollars.
Similarly, global depositary receipts (GDRs) represent foreign company shares and are issued by depositary banks. However, while ADRs can only be traded on US stock exchanges, GDRs can be traded on stock exchanges around the world. They are typically denominated in US dollars, euros or British pounds.
A more risk-averse option is to invest in mutual funds or ETF. Both offer diversification and professional management services, relieving investors from selecting and monitoring individual investments. They can hold a range of assets, including stocks and bonds, currencies, crypto, real estate and commodities like oil and gold.
Both mutual funds and ETFs may focus on particular sectors of the economy such as technology, healthcare, energy or automotive manufacturing. Examples of sector-specific ETFs include the Technology Select Sector SPDR Fund (ARCA:XLK), the Vanguard Health Care Index Fund ETF (ARCA:VHT) and the Energy Select Sector SPDR Fund (ARCA:XLE).
Global sector funds hold sector-specific funds from different countries, such as the iShares Global Healthcare ETF (ARCA:IXJ), which includes pharmaceutical companies from the US, Switzerland and India, three countries with strong reputations in that industry. Meanwhile, the Vanguard Information Technology Index Fund ETF (ARCA:VGT) tracks the performance of tech companies in countries known for their lucrative tech sectors.
For its part, the Fidelity International Index Fund (MUTS:FSPSX) is a mutual fund tracking the performance of the MSCI EAFE Index, which includes stocks from Europe, Australasia and the Far East.
The iShares China Large-Cap ETF (ARCA:FXI) is a country-specific fund, while the Vanguard Total International Stock Index Fund ETF (NASDAQ:VXUS) covers a broad range of international companies.
Additionally, funds may track development-based markets, such as the Vanguard FTSE Emerging Markets All Cap Index ETF (TSX:VEE), the iShares MSCI Frontier and Select EM ETF (ARCA:FM) or the T. Rowe Price Global Stock Fund (NASDAQ:PRGIX), a mutual fund that invests in developed and emerging markets around the world.
Managed volatility mutual funds employ strategies to minimize risks associated with global investing like currency fluctuations, political instability and the differences in regulatory environments. They typically hold shares in low-volatility sectors like consumer staples and utilities or multinational stocks like Johnson & Johnson.
Reuters reported on LSEG’s most recent Lipper data reading for this past July, which shows US$601 million in inflows to global volatility funds, the first net inflow in 14 months. Analysts expect more to come as investors exercise caution ahead of the November election and interest rate cuts expected in September.
Some differences between ETFs and mutual funds make them more well-suited to individual investors. Mutual funds, unlike ETFs, do not trade on stock exchanges, and their prices are calculated once a day after the markets close. ETFs can also be bought and sold in any amount, whereas mutual funds often require a minimum investment. Furthermore, mutual funds are only required to disclose their holdings once every quarter, while ETFs disclose their holdings daily. Investors generally pay less in management fees for ETFs than they do for mutual funds.
Global indexes such as the MSCI World Index (WORLD:MSCI), FTSE Global All Cap Index (INDEXFTSE:GEISAC) and the S&P Global BMI (INDEXSP:SBBMGLU) provide a benchmark for the performance of various sectors and regions in the global equity markets. Many mutual funds and ETFs aim to replicate these indexes' performance by investing in companies and sectors represented within these indexes.
Finally, investing in multinational corporations (MNCs) is an easy way to indirectly benefit from the dynamics of international economic integration. MNCs are businesses with a significant presence in at least two countries. They often engage in foreign direct investments and have a globalized production process with revenue, operations and profits spread across different countries. This means that your investment is indirectly exposed to the economic conditions and performance of the countries it operates in. Some examples are Apple (NASDAQ:AAPL) and Toyota (NYSE:TM).
More complex global investing strategies
Direct foreign investing is another avenue that is primarily undertaken by experienced investors, high-net-worth individuals or private equity firms with a deep understanding of global markets. It’s a complex process accompanied by tax implications and other challenges that require specialized knowledge and expertise.
Establishing a brokerage account through a local firm, such as Fidelity in North America, or a foreign brokerage account in the target investment country, like Degiro in Europe, or Saxo Markets in Asia is one way to get started. Sometimes, foreign companies list their shares directly on US exchanges through initial public offerings.
Investors can also access foreign stocks through global exchanges. One of the most well-known is the MERJ Exchange, a multi-market, multi-currency platform headquartered in the Seychelles. Others include the Nordic Stock Exchange, which operates in the Nordic and Baltic countries; the Johannesburg Stock Exchange, which lists companies from various African countries as well as some international stocks; and the Euronext, a pan-European exchange that primarily operates in the European Union but includes non-member the United Kingdom.
Euronext expanded into the Asia-Pacific region in 2019 by launching Euronext FX, its foreign exchange trading platform, in Singapore. Other exchanges that facilitate trading in Asia are the Hong Kong Stock Exchange, the Tokyo Stock Exchange and the Singapore Exchange.
Another strategy is carry trades, which involves borrowing money in a low-interest-rate currency and investing in a high-interest-rate currency. The profit comes from the interest rate differential between the two currencies.
For example, until recently the Japanese yen had a very low interest rate compared to the US dollar. Investors could borrow yen, convert it to dollars and invest in US assets that yielded higher interest rates.
Carry trades can be profitable when the interest rate differential is large and the exchange rate stable. However, as the world saw on August 5 after the Bank of Japan raised interest rates — and indicated that further increases were possible — carry trades can also be risky. As the yen strengthened against the US dollar, investors sold off their higher-yielding assets and repaid their yen-denominated loans, leading to a global market selloff.
Legal considerations for global investing
Global investors must understand and comply with various securities regulations across different jurisdictions.
Some countries restrict foreign investment to protect national interests, promote domestic companies and maintain control over critical sectors of the economy. For example, China requires government approval to invest in certain sectors like telecommunications. India also imposes restrictions on foreign investment industries like defense, which is subject to government approval and is limited to a maximum foreign equity ownership of 74 percent.
Other industries are subject to special regulations that could impact operations and profitability. For example, pharmaceutical companies must navigate multiple rounds of testing and obtain approvals from various regulatory bodies, resulting in a lengthy process to bring a drug to market. While success can lead to substantial profits, these regulatory hurdles can also pose risks to potential investors.
Income tax regulations are another important area for investors to consider when participating in international markets. In the US, the Internal Revenue Service considers some foreign investment vehicles, typically foreign-based mutual funds and ETFs, as Passive Foreign Investment Companies (PFICs). The government body has implemented rules and regulations to prevent US taxpayers from deferring taxes owed from those investments. It’s crucial to know whether a stock is classified as a PFIC, because it can result in additional tax and reporting requirements.
The Canada Revenue Agency requires Canadian taxpayers to report their foreign investment income, including dividends, interest and capital gains from foreign investments. Canadian taxpayers with foreign investments may be subject to withholding taxes, a percentage of earned income from an investment that’s withheld from the investor and remitted to the tax authority where it was earned. However, Canada has tax treaties with many countries that can help mitigate withholding taxes, including Australia, Japan, Malaysia, the UK, Singapore and the US.
Many countries issue foreign tax credits to offset taxes on their foreign-source income and prevent double taxation, with specific rules and terms differing between countries. Controlled Foreign Corporation rules apply to larger stakeholders or those making direct investments in foreign companies or real estate.
Investor takeaway
Whether or not you’re a seasoned investor, understanding the dynamics of global investing, and key considerations like the risks and advantages of dabbling in international stocks, is crucial to making informed decisions and potentially reaping the rewards of a diversified portfolio.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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