Troy Minerals (CSE:TROY;OTCQB:TROYF;FSE:VJ3);OTCQB:TROYF;FSE:VJ3), a rapidly emerging player in the critical minerals space, focuses on the development of high-purity silica and other essential materials for the clean energy transition. Troy Minerals has a diverse portfolio designed to capitalize on the increasing demand for raw materials needed in high-growth industries.
The company two high-purity silica projects: Table Mountain in British Columbia and the Tsagaan Zalaa project in Mongolia, both acquired through the strategic purchase of CBGB Ventures in September 2024. The projects are targeted for near term production, with Tsagaan Zalaa targeted to come online in 2025 and Table Mountain in 2026.
The Tsagaan Zalaa project is near the China-Mongolia border and is a near-term high-purity silica asset envisioned to commence production by 2025. The project’s proximity to key consuming markets, such as China, Japan and Korea, provides significant logistical advantages for the transportation of silica.
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Troy Minerals' clear strategy for growth, driven by two potentially near-term high-purity silica projects and a diversified exploration portfolio for critical minerals, makes the company an investment opportunity worth keeping a close eye on.
Troy Minerals (CSE:TROY;OTCQB:TROYF;FSE:VJ3) is a rapidly emerging player in the critical minerals space, focusing on the development of high-purity silica and other essential materials for the clean energy transition.
The company’s diverse portfolio is designed to capitalize on the increasing demand for raw materials needed in high-growth industries such as renewable energy and semiconductors. At the forefront of its portfolio are two high-purity silica projects: Table Mountain in British Columbia and the Tsagaan Zalaa project in Mongolia. These projects were acquired through the strategic purchase of CBGB Ventures in September 2024. Both projects are being targeted for near term production, with Tsagaan Zalaa targeted to come online in 2025 and Table Mountain in 2026. These acquisitions align with Troy Minerals' strategic goal of becoming a key player in supplying critical minerals for the global energy transition.
Sample high-purity silica
In addition to its high-purity silica assets, Troy Minerals is also making significant strides in vanadium and rare earths exploration, with two additional projects located in Wyoming, USA, and Quebec, Canada. These projects provide further diversification and enhance the company’s exposure to critical minerals that are vital to high-growth industries, ranging from aerospace to energy storage.
The company’s assets are strategically positioned in regions with favorable access to infrastructure and proximity to large consuming markets like the United States and China. Troy Minerals is committed to leveraging these assets to unlock significant shareholder value through the successful exploration, development, and eventual production of critical minerals.
High-purity silica is a crucial mineral for the clean energy transition, particularly in the production of solar panels, semiconductors and high-performance glass. The purity and quality of the silica deposits at Troy’s assets make them ideal for these high-tech applications. By 2030, the high-purity silica market is projected to grow to US$104.34 billion, driven by increasing demand for photovoltaic cells used in solar panels, as well as advancements in electronics and fiber optics.
The global shortage of high-purity silica, exacerbated by supply chain disruptions and geopolitical tensions, has created an urgent need for new suppliers. Troy Minerals is well-positioned to advance and develop its projects to help meet this demand by targeting near-term production on both of its silica projects which have high-grade silica
In addition to its focus on high-purity silica, Troy Minerals maintains a diversified portfolio through its vanadium and rare earth elements (REE) assets. These minerals are essential for various industries, including electric vehicles (EVs), renewable energy storage and advanced electronics. The company’s Lake Owen project in Wyoming is prospective for vanadium, while the Lac St. Jacques project in Quebec is focused on REE, particularly neodymium and praseodymium.
Vanadium is critical to produce vanadium redox flow batteries (VRFBs), a promising energy storage technology that offers long-term stability and scalability for renewable energy systems. REEs, on the other hand, are used in the production of permanent magnets, which are integral to wind turbines, EV motors and various electronic devices.
The Tsagaan Zalaa project, located near the China-Mongolia border, is a near-term high-purity silica asset that is being targeted to commence production by 2025. The project’s proximity to key consuming markets, such as China, Japan and Korea, provides significant logistical advantages for the transportation of silica.
Tsagaan Zalaa’s silica deposits boast purity levels above 99 percent, making them suitable for advanced technological applications such as solar panels, semiconductors and fiber optics. The project’s minimal overburden and low strip ratio make extraction cost-effective, further enhancing its economic potential. Given the global demand for high-purity silica, this project has the potential to generate significant revenue for Troy Minerals.
The Table Mountain project, located in British Columbia, Canada, is another high-purity silica asset with near-term production potential. Covering 1,698 hectares, the project is strategically positioned with access to key infrastructure, including roads, power and natural gas, making it a logistically attractive asset for North American markets.
The high-grade silica at Table Mountain is ideal for applications such as solar panels, high-performance glass and electronics. The project is being targeted to begin production by 2026, following a 24-month development timeline. Given the increasing demand for high-purity silica in North America, the Table Mountain project could play a critical role in reducing reliance on imports and enhancing the region’s supply chain resilience.
The Lake Owen project, located 50 km southwest of Laramie, Wyoming, is an exploration-stage asset focused on vanadium and titanium. The project spans 1,932 acres (782 hectares) and is part of the Proterozoic Lake Owen mafic to ultramafic layered intrusive complex, which is known for its rich vanadium and titanium deposits.
Lake Owen is benefiting from the US Geological Survey’s “Large-scale Earth MRI” program, which provides valuable geological insights and cost savings for exploration. The project has significant potential for semi-massive to massive titanomagnetite deposits with high concentrations of vanadium pentoxide and titanium dioxide. The exploration potential for platinum group elements and gold further adds to the project’s attractiveness.
The Lac St. Jacques project, located 250 km north of Montreal, Quebec, is an REE exploration asset. The project spans 2,889 acres (1,169 hectares) and is easily accessible via roads and proximity to hydro power lines, offering cost-effective logistics and sustainable energy options for future operations.
The rare earth mineralization at Lac St. Jacques is associated with pegmatitic syenite and granite intrusives. The project’s carbonatite deposit is rich in light rare earth elements, particularly neodymium and praseodymium, which are essential to produce permanent magnets used in EV motors and wind turbines. Samples from recent drilling have shown promising concentrations of REEs, with results indicating between 500 and 2,000 parts per million of neodymium and praseodymium.
Rana Vig has more than 30 years of business experience, helping launch five business ventures in the private sector. He has been involved in publicly traded companies since 2010, and from 2011 to 2016 he was the president of Musgrove Minerals, an Idaho-focused gold and copper mining exploration company. From 2013 to 2016, he was the chairman and CEO of Continental Precious Minerals, a TSX senior board listed mining exploration company with a focus on advancing one of the largest uranium deposits in the world located in Sweden.
In November 2017, he received the the Senate 150th Anniversary Medal, awarded to top Canadians actively involved in their communities who, through generosity, dedication and hard work, make their hometowns and communities, a better place to live.
Norman Brewster’s mineral industry career includes serving on various company boards, financing and developing the Aguas Tenidas Mine in Spain, and negotiating the purchase of the Condestable Mine in Peru. He also led the committee in reviewing the successful acquisition of Iberian Minerals by the Trafigura Group in an all-cash takeover valued at around $497.8 million.
Gurdeep Bains is a chartered professional accountant. He received his chartered accountant designation from the Institute of Chartered Accountants of BC in 2003 and in 2004 graduated from Simon Fraser University with a Bachelor of Business Administration. From 2000 to 2005, he was a senior auditor, assurance services at KPMG.
From 2005 to 2014, Bains was with Canaccord Genuity as vice-president, internal audit and financial analysis where he was involved in the company’s global expansion by performing the due diligence and integration of $850 million in acquisitions in Canada, US, UK, Australia and China. From June 2014 to October 2017, he was the CFO at OK Tire Stores, an automotive company with over 330 locations across Canada. From October 2017 to March 2019, Bains was CFO at Zenabis, contributing in both finance and business development roles.
Lara Yunes is a chartered professional accountant with a Bachelor of Technology in accounting from the British Columbia Institute of Technology. She is currently a financial reporting manager at Treewalk, providing accounting, financial reporting and compliance services to publicly listed firms. Prior to this, she worked at Smythe LLP as an accountant, offering audit and tax services to both private and public companies.
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Troy Minerals Inc. (" Troy " or the " Company " ) (CSE: TROY; OTCQB: TROYF; FSE: VJ3) i s pleased to announce the commencement of a comprehensive field reconnaissance, mapping, and geochemical sampling program at its Table Mountain Silica Project near Golden, British Columbia.
Highlights:
Field program to include detailed geological mapping and systematic geochemical sampling.
Work aims to further define high-grade silica zones identified in historical exploration.
Results will guide future drilling and resource delineation efforts.
The field program is designed to build upon historical exploration data and further refine the Company's understanding of the high-grade silica mineralization at the Table Mountain Project. The work will focus on areas of known silica occurrences and explore additional targets.
"We are excited to begin this important phase of work at Table Mountain," said Rana Vig, President & CEO of Troy Minerals. "This field program represents a crucial step in advancing our understanding of the project's potential and will provide valuable data to guide our future exploration efforts."
The Table Mountain Silica Project, located approximately 4 kilometers east of Golden, BC, covers an area of 1,698 hectares. Historical exploration has indicated the presence of high-purity silica, with grab samples grading up to 99.74% SiO 2 . (1)(2) *
Field work is expected to continue for approximately 5 weeks, with initial results anticipated following the completion of the program. The Company will provide updates as significant findings emerge from the program.
Technical information in this news release has been reviewed and approved by Case Lewis, P.Geo., a "Qualified Person" as defined under NI 43-101 Standards of Disclosure for Mineral Projects and a director of the Table Mountain Project vendor.
Sources
(2) Troy News Release dated June 10, 2024: "Troy Minerals Enters into Binding Letter of Intent to Acquire CBGB Ventures Corp."
* Cautionary Note
The reader is cautioned that grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.
Rana Vig | President and Director Telephone: 604-218-4766
Email: rana@ranavig.com
Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Troy Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. 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. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration or future exploitation of minerals deposits, volatility of commodity prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Copyright (c) 2024 TheNewswire - All rights reserved.
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Troy Minerals Inc. (" Troy " or the " Company " ) (CSE: TROY; OTCQB: TROYF; FSE: VJ3) is pleased to announce the results of the 2024 soil geochemical survey on the Lac Jacques rare earth element (REE) property. The 100% owned Lac Jacques property is located approximately 250km north of Montreal Quebec, Canada and approximately 40km northeast of the town of St. Anne du Lac (Figure 1).
Click Image To View Full Size
Figure 1: Project location map.
The 2024 soil sample program expanded the 2023 soil survey by infilling the area between the eastern and western survey grids, covering the strike of the inferred dyke and mineralization between the Discovery Trench to the west and the dyke exposed to the east (Figure 2). A total of 315 samples were collected from twenty-one 100 metre spaced lines with sample sites at 25 metre spacing.
The inferred dyke is not well defined geochemically through the area of the 2024 sampling. A scattering of anomalous (mean plus two standard deviations) soil samples are broadly located in the central area of the survey grid, south and west of Lac Jacques (Figure 2). The highest TREE (+Y) value of 493 ppm is located immediately along the south shore of Lac Jacques and located along the projected strike of the dyke. Another anomalous sample of 360 ppm is located 500 metres east, and several anomalous samples are located along the inferred dyke to the west (Figure 3).
Provincial regional mapping shows a leucocratic, biotite-allanite monzogranite, ranging from fine-grained to pegmatitic, which may be related to the REE expression in the soils. Based on drilling during 2023 some 3km to the west, the REE here are associated with pegmatitic syenite to granite intrusives. Petrographic studies of the mineralized drill core identify allanite as the principal REE-bearing minerals (see News Release, February 20, 2024).
Rana Vig, President and CEO, commented, "We are pleased with the continued presence of anomalous REE in soils along the 4km strike length of the REE bearing structure at Lac Jaques. We expect our drill permit to be granted soon and our team is ready to commence drilling and begin looking for new targets based on the results of this successful soil sample program ," he said.
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Figure 2: Location of 2024 soil sampling program
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Figure 3 Anomalous TREE(+Y) Soils
Quality Assurance and Quality Control
Soil samples were submitted to Activation Laboratories Ltd. in Val D'or, Quebec for preparation and analysis. Sample preparation consisted of drying and sieving to 177 μm (Act Labs code S1). Sample analysis consisted of a 0.25g sample is digested with four acid solution. Digested samples are diluted and analyzed by ICP-MS. One blank is run for every 40 samples. In-house control is run every 20 (Act Labs code UT-4).
Qualified Person
The technical information contained in this news release has been reviewed and approved by Ted Vander Wart, P.Geo. , who is a qualified person as defined under National Instrument 43-101.
Rana Vig | President and Director Telephone: 604-218-4766
Email: rana@ranavig.com
Statement Regarding Forward-Looking Information: This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Troy Resources Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. 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. Factors that could cause the actual results to differ materially from those in forward-looking statements include results of exploration activities may not show quality and quantity necessary for further exploration or future exploitation of minerals deposits, volatility of commodity prices, and continued availability of capital and financing, permitting and other approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
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September 3, 2024 TheNewswire - Vancouver, B.C. Troy Minerals Inc. (" Troy " or the " Company " ) (CSE: TROY; OTCQB: TROYF; FSE: VJ3) is pleased to announce that further to its news releases dated June 10, 2024 and July 3, 2024, it has completed the acquisition of 100% of the issued and outstanding shares of CBGB Ventures Corp. (" CBGB ") in consideration for 3,244,151 Troy common shares and 9,732,454 special warrants of the Company. All shares, including shares issuable on conversion of special warrants, are subject to voluntary hold and escrow provisions with an initial 25% release at six months from the closing date, and the remaining 75% released upon achieving certain milestones including commercial production.
The transaction provides Troy with a 100% interest in the Table Mountain silica project in British Columbia, and the right to acquire up to an 80% interest in the Tsagaan Zalaa silica project in Mongolia.
"Through this transaction, we have acquired two highly prospective, high purity silica assets, further diversifying and strengthening our critical mineral asset portfolio, and now expect to go on an aggressive campaign of exploration and development across both properties," said Rana Vig, President & CEO of Troy Minerals. "The shorter timeframes for permitting of silica projects provides Troy the opportunity to develop these projects on a much shorter timeline than traditional mining projects, and provides the opportunity to position Troy as an emerging leader in the critical minerals market. With the near-term prospect of production and the objective to become a cash - flowing mining company sets up Troy Minerals for the ability to self-fund exploration activities using non-dilutive capital for future growth, " he added.
Silica, a vital component in everyday products including microchips and emerging green technologies, particularly solar photovoltaics (PV), continues to grow in demand and has become of particular concern to European and North American governments as world tensions rise and China, currently the leader in the production of silicon, continues to exert its influence world-wide leading to concerns of potential restriction of supplies.
The special warrants will convert into common shares as follows: 3,244,151 special warrants will convert to shares upon Troy completing the acquisition of its initial 23.8% interest in company that holds the Tsagaan Zalaa project. A further 6,488,305 special warrants will convert in installments upon achieving milestones as follows: (i) obtaining a 5 million tonne resource at the Table Mountain Project (ii) upon commencement of commercial production at the Table Mountain Project, and (iii) upon commencement of commercial production at the Tsagaan Zalaa Project. In addition, all shares, including shares issuable on conversion of the special warrants, will be subject to escrow release over either 12 months or 42 months.
Project Highlights
Table Mountain Silica Project, B.C.
1,69 hectares (4,196 acres) located 4 km east of the town of Golden, B.C., and 6 km from the Canadian Pacific Railway Golden Rail Yard with easy year-round access. (Figure 1)
igh-purity quartzite of the Mount Wilson Formation with up to 10 km of regionall y mapped strike length on the property and up to 300 to 1,400 met re s apparent width at surface.
2017 sampling in the northern area of the property conducted by Patriot Battery Metals Inc (TSX:PMET) (formerly 92 Resources Corp), the former owner of the Table Mountain Silica Project area, encountered up to 99.74% SiO from grab samples taken over an area of 700 x 600 metres. (1)
2023 surface sampling in the centre of the property yielded up to 99.24% SiO with an average of 98.62% SiO from 9 grab samples taken across a traverse of 180 metres of apparent thickness. *
On the same lithological unit and close to both the Sinova Quartz quarry (6 km to SW) and Moberly Silica Mine (7.5 km to NW). (6)(7)
The nearby Sinova Quartz quarry will export silica to supply its own silicon plant in Tennessee, USA. Sinova's chairman, Sir Mick Davis (former executive of Billiton and founder of the industry giant Xstrata plc, later bought by Glencore), is also CEO of Vision Blue Resources, a clean energy-focused natural resource investor, which made a $125-million investment into Sinova in 2021. (2)(3)
Ability to tap into the North American push for securing critical minerals. Over $1.4 billion in the US has been allocated to silica uses, including a $150-million investment by Sinova Global into the construction of a state-of-the-art silicon metal production facility in Tiptonville, Tennessee now underway, in addition to US federal government renewable energy incentives. (4)(5)
Quick to cashflow potential.
Figure 1. Table Mountain Silica Project Map
Click Image To View Full Size
Tsagaan Zalaa Silica Project, Mongolia
1,670 hectares (4,127 acres) located near a Japanese-owned high purity silica quarry and refiner producing and directly exporting high purity silica to Japan. (Figure 2)
Close to Chinese border and potential offtakers. (Figure 3)
High-purity quartz veins up to 10 metres in width hosted by Upper-Middle Devonian sediments.
Successful initial drilling, with final phase of drilling expected by Fall 2024. Subsequent objectives remain of establishing resource, mine plan, and mining license application, subject to drilling results.
10-tonne bulk sample sent to Chinese offtaker reported 99.98% SiO 2 purity after beneficiation with run of mine material.
Quick to production potential, targeting Q2 2025.
Figure 2. Tsagaan Zalaa Silica Project Map
Click Image To View Full Size
Figure 3. Tsagaan Zalaa Silica Project Regional Map
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To support the execution of the Company's plans, Troy has engaged Mine Plus Group (mineplusgroup.com), a leading mining consultancy based in Europe that has been involved in international mining ventures valued at over $2 billion. The Mine Plus team provides management services across the entire mining lifecycle - from exploration and engineering to operations and mergers and acquisitions. Mine Plus has expertise in exploration, geology, mining engineering, metallurgy, and processing engineering, enabling Troy to confidently explore, develop, and operate all the projects in the Company's diverse multi regional portfolio.
Mine Plus's breadth of experience includes projects in Mongolia and Canada, where they have a proven track record in developing mining projects with companies such as Skeena Resources and three additional private mining companies, as well as other high purity silica projects in B.C. in close proximity to the Table Mountain Silica Project. Mine Plus also has provided services to West Red Lake Gold, Tara Resources, and Calipuy Resources, in addition to numerous other private and public companies.
Qualified Person (QP) Statement
Technical information in this news release has been reviewed and approved by Case Lewis, P.Geo. a "Qualified Person" as defined under NI 43-101 Standards of Disclosure for Mineral Projects and a director of the Table Mountain Project vendor.
* Cautionary Note
The reader is cautioned that grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.
Sources
(3) https://sinovaglobal.com/news/us125m-investment-by-sir-mick-davis-vision-blue-resources/
(6) https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++001
(7) https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++043
Rana Vig | President and Director Telephone: 604-218-4766 rana@ranavig.com
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.
Forward-looking Statements
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are from those expressed or implied by such forward-looking statements or forward-looking information subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different, including receipt of all necessary regulatory approvals. Although management of the Company have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
Copyright (c) 2024 TheNewswire - All rights reserved.
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Energy Technologies Limited (ASX: EGY)(EGY or the Company) is pleased to announce the results of its non-renounceable pro-rata rights issue as announced on Thursday, 12 September 2024.
Capitalised terms used in this announcement but not defined have the meaning given to them in the Offer Booklet lodged by the Company on Friday, 20 September 2024.
Results of the Offer
The Offer closed at 5.00pm (AEST) on Wednesday, 2 October 2024. The Offer raised approximately
$0.4m with Eligible Shareholders subscribing for approximately 14.4m shares (New Shares) at the Issue Price of $0.03 (3 cents) per New Share.
Following the close of the Offer, including the Additional Securities, there is a shortfall of 407,645,638 New Shares ($12,229,369.14).
The Company reserves the right to place the residual Shortfall at the same price on the same terms as the Offer, at the discretion of the Board, for a period of up to 3 months following the Closing Date.
Subject to settlement of funds, the New Shares subscribed for under the Offer are expected to be issued on Wednesday, 9 October 2024, with normal trading of the New Shares expected to commence on Thursday, 10 October 2024.
Stay informed on the latest developments in the tech world with the Investing News Network's round-up.
US markets began the week with their biggest daily percentage declines since the August 5 rout.
The Nasdaq Composite (INDEXNASDAQ:.IXIC) closed Tuesday (September 3) down 2.85 percent, while the S&P 500 (INDEXSP:.INX) lost 1.83 percent and the Russell 2000 (INDEXRUSSELL:RUT) shed 2.77 percent.
These declines came on the back of new US manufacturing data for August. The S&P Global US Manufacturing PMI posted 47.9 in August, down from 49.6 in July and below 50 for the second consecutive month, while the ISM Manufacturing PMI registered 47.2 percent in August, up 0.4 percentage points from 46.8 percent in July.
In Canada, S&P Global Canada Manufacturing PMI data weighed on the S&P/TSX Composite Index (INDEXTSI:OSPTX), revealing reduced output and demand, as well as a modest reduction in employment in the country.
Wednesday (September 4) saw the Bank of Canada lower interest rates for the third time this summer, while in the US the Department of Labor's JOLTS report revealed job openings were at a three-and-a-half year low in July, down 1.1 million compared to a year ago. Major indexes held relatively steady, although the Nasdaq Composite slid at the opening bell, dragged down by a selloff that erased nearly 9.5 percent of NVIDIA's (NASDAQ:NVDA) value in 24 hours.
The decline came after Bloomberg reported that the US Department of Justice had issued the company a subpoena following a recent antitrust probe — a story that NVIDIA later denied.
NVIDIA performance, August 30 to September 6, 2024.
Chart via Google Finance.
Thursday’s (September 5) economic data readings out of the US and Canada were a mixed bag.
In the US, ADP's national employment report indicated that the labor market continues to cool. The private sector added 99,000 jobs instead of the forecast 145,000, revealing the lowest hiring rate in three years.
In Canada, the S&P Global Canada Services PMI came in at 47.8 for August, up slightly from 47.3 in July, but still below the 50 no-change mark. This indicates a continued, albeit slower, contraction in the sector.
Traders were optimistic ahead of Friday’s (September 6) much-anticipated nonfarm payroll report, which is the US Federal Reserve’s preferred measure of economic health. The major indexes opened slightly higher, but then dropped after the report showed 142,000 new jobs were added instead of the estimated 160,000; there was also a 0.1 percent decrease in the unemployment rate from 4.3 percent in July. The VIX (INDEXCBOE:VIX) edged above 22 as investors worried the economy's resilience may be waning and could struggle to stay afloat until interest rate relief arrives.
In Canada, Statistics Canada's labor force survey showed a modest 22,000 jobs were added last month, while the jobless rate increased to 6.6 percent from 6.4 percent in July.
The data paints a complex picture of the health of the economy on both sides of the border.
The crypto market has been facing challenges since the August 5 rout due to a combination of factors, including investor sentiment, regulatory uncertainty and macroeconomic conditions. Bitcoin and Ether have experienced declines, falling 4.2 percent and 6.5 percent, respectively, over the past seven days as of Friday afternoon.
Bitcoin has experienced sharp corrections at the start of each month in Q3, and prices have stalled in recent weeks due to a lack of demand from retail investors and subdued sentiment surrounding exchange-traded funds. Reduced miner profitability, accompanied by an increase in mining difficulty, has also weighed on Bitcoin’s price.
Ether has not fared much better, brought down in part by declining activity on the Ethereum mainnet. Ether exchange-traded funds have also failed to live up to market participants' expectations.
On Tuesday, Bitcoin fell to US$56,160, shedding 2.83 percent of its value in an hour. Ether, which logged its worst monthly performance since 2022 in August, fell by 4.35 percent in the same time period.
A brief surge was observed in both cryptocurrencies shortly after the opening bell on Wednesday, with Bitcoin reaching US$58,393 and Ether jumping to US$2,476, followed by steady declines as the week progressed. Another plunge at midday on Friday sent Bitcoin as low as US$53,304 and Ether to US$2,192, according to CoinGecko.
The recent Bitcoin and Ether price action reflects cautious market sentiment. Concerns about a potential US recession are leading investors to reduce their exposure to riskier assets like cryptocurrencies. While there have been brief rallies, the overall trend remains downward, suggesting a "sell-on-rise" mentality among investors.
Broadcom unveiled results for its third fiscal quarter on Thursday, reporting a 47 percent year-on-year increase in revenue to US$13.07 billion — slightly better than the US$13.03 billion expected by analysts.
Adjusted earnings per share also exceeded expectations, coming in at US$1.24, US$0.02 better than the estimate. The company's board approved a quarterly cash dividend of US$0.53 per share to be paid on September 30.
Looking forward to the next quarter, Broadcom has set its revenue guidance at about US$14 billion. Although that's 51 percent higher than the year-ago period, the figure fell short of the US$14.13 billion anticipated by experts.
Despite its 47 percent increase in revenue, Broadcom's revenue from broadband and non-AI networking experienced significant declines in Q3, falling by 49 percent and 41 percent, respectively.
The company’s share price slid by 6.52 percent after Thursday’s close, opening on Friday with a valuation of US$142.86, demonstrating how high the bar has been set for artificial intelligence (AI) companies.
Elon Musk's Tesla got a share price boost this week, creating momentum for a company that has lost over 15 percent of its market value year-to-date. While Tesla has encountered problems with its full self-driving technology in the US — including several investigations from the National Highway Traffic Safety Administration — the company teased this week that full self-driving will be coming to Europe and China in the first quarter of 2025.
The firm announced the news on Wednesday night in a post on X, formerly Twitter. Tesla also outlined upcoming enhancements to its AI capabilities, such as eye-tracking integrated with sunglasses and an auto-park function tailored specifically for the Cybertruck; it didn't specify market availability for most features.
Tesla saw a 6.52 percent bump in its share price on Thursday morning, rising to US$234.08 from the previous day's close, its highest level since July 31. Shares declined from there, closing the week at US$210.73, up 0.97 percent.
According to Reuters, semiconductor company and major Apple (NASDAQ:AAPL) supplier Qualcomm (NASDAQ:QCOM) is considering acquiring part of Intel’s design business. Intel has so far not confirmed the news.
Intel has been the largest recipient of US President Joe Biden’s Chips and Science Act funding, and has been investing heavily in its AI efforts. Its Gaudi chips are a direct competitor with NVIDIA's Hopper architecture. Intel’s 18A, a silicon wafer manufacturing process, represents the company's most advanced chip manufacturing technology, although it has faced development challenges. The 18A system failed to pass recent testing by Broadcom, adding to a series of setbacks this year for the company, whose value has fallen by over 60 percent year-to-date and 11 percent this week.
Intel is also in danger of losing its place in the Dow Jones Industrial Average (INDEXDJX:.DJI).
Intel released its Q2 results on August 1, forecasting Q3 revenue below analyst’s estimates and suspending dividend payments to further fund its chipmaking efforts. The company also said it would be cutting 15 percent of its workforce, sending its shares down a further 24.37 percent in after-hours trading. The company's share price has stayed largely flat since then, although it saw some improvement after reports it was exploring merger or split options.
CEO Pat Gelsinger is expected to present a plan to Intel investors later in September. Options reportedly being considered include separating its product business from its manufacturing unit and scrapping some factory projects.
Intel fell 2.63 percent on Friday to finish the week at US$18.89.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.