Category: Canada

Arizona Sonoran Copper announces C$19.9m private placement with Hudbay

Arizona Sonoran Copper Company has announced a strategic private placement valued at C$19.9m ($13.83m) with Hudbay Minerals.

Under this agreement, Hudbay will subscribe for 11,852,064 common shares of Arizona Sonoran at C$1.68 per share.

Hudbay currently holds 2,870,800 shares, representing a 2.12% interest in Arizona Sonoran prior to the private placement.

Post-closing of the placement, Hudbay will own approximately 9.99% of the common shares of Arizona Sonoran.

The funds raised from this private placement will be directed towards drilling, exploration, technical studies and further development of the Cactus copper project in Arizona.

Arizona Sonoran president and CEO George Ogilvie said: “We are pleased and appreciative to welcome this further endorsement of our project and the go-forward plan by the team at Hudbay. It is the company’s objective to develop Cactus to be a significant producer of copper cathodes for direct use by industry in the state of Arizona and the larger US supply chain.

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData





Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We welcome Hudbay, a mid-tier base metal producer with decades of base metal successes in the Americas and a strong existing footprint in Arizona, as a larger and increasingly engaged shareholder, able to lend its experience and expertise as we advance and develop Cactus.”

The Cactus Mine property is located approximately 3 miles (4.8km) north-west of the city of Casa Grande, in Pinal County, Arizona.

The property lies at the historic Sacaton Mine and the total site area is approximately 5,720 acres.

Hudbay president and CEO Peter Kukielski said: “Cactus is an exciting copper development project in Arizona. We see the US as a tier-1 mining jurisdiction and this investment increases our exposure to another high-quality development project in the region as we continue to advance our Copper World project.”

The closing of the private placement is expected to occur on or about 30 January 2025, subject to customary closing conditions.

The issue price represents a 15% premium to the five-day volume weighted average price of Arizona Sonoran’s common shares on the Toronto Stock Exchange as of close of trading on 7 January 2025.

In addition to the initial subscription, Hudbay has agreed to purchase additional common shares to maintain its 9.99% interest in Arizona Sonoran if pre-emptive rights held by other existing shareholders are exercised in relation to the private placement.

Hudbay and Arizona Sonoran will also enter into an investor rights agreement as part of the private placement.

This agreement will grant Hudbay certain customary rights and obligations, provided it maintains specific ownership thresholds in Arizona Sonoran.


Metavista3d Announces Prototype Agreement During CES2025

(MENAFN– Newsfile Corp)
Vancouver, British Columbia–(Newsfile Corp. – January 10, 2025) – Metavista3D Inc. (TSXV: DDD) (FSE: E3T) (“Metavista3D” or the “Company”) Metavista3D continues to be surprised and excited by the burgeoning interest in its technology, opening doors to markets previously unanticipated. During the past two days of CES, Jeff Carlson, CEO of Metavista3D, and director of an innovative leader in contemporary electric display and technology for residential and commercial environments agreed to produce prototype display for the company to review for potential production orders. Details about the about prototype order, and the company will be announced in the next few weeks after receiving technical specifications, and units required of the order.

This global curiosity further validates the relevance and applicability of Metavista3D’s innovations, promising a plethora of opportunities for diversification and growth. The company remains committed to exploring these new avenues, ensuring that its technological advancements meet the evolving demands of an increasingly digitized world.

Jeff Carlson, Metavista3D’s spokesperson, expressed his enthusiasm about the partnership, stating, “This alliance embodies a shared vision for the future of spatial reality. The unexpected interest we’ve received from new markets underscores the transformative potential of our technology. Our goal is to redefine how audiences engage with digital content, taking it beyond the confines of conventional display technologies.”


Metavista3d Announces Prototype Agreement During CES2025 Image

Metavista3D booth at CES2025, Dr. Rolf-Dieter Naske, CTO (Left) and Jeff Carlson, CEO (Right)

To view an enhanced version of this graphic, please visit:

About CES

CES is the most powerful tech event in the world. This event is where brands get business done and where the industry’s sharpest minds take the stage to unveil their latest groundbreaking innovation. CES is produced by the Consumer Technology Association (CTA)®. For more information, visit .

About Metavista3D ( )

Metavista3D Inc., through its wholly-owned subsidiary, psHolix AG, is at the forefront of developing AI-driven, pseudo-holographic display technologies designed to transform how we interact with spatial content. With over 20 patents and a commitment to innovation, Metavista3D is shaping the future of immersive, glasses-free 3D experiences. For more information, visit .

Metavista3D’s shares are publicly traded and listed in Canada on the TSX-Venture Exchange under the ticker symbol DDD, and on the German Stock Exchange in Frankfurt and others under the ticker symbol E3T. Metavista3D’s ISIN number is CA59142H1073 and German WKN number is A3EG0D.

MENAFN10012025004218003983ID1109075608

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Pambili Optimistic About Acquisition of London Wall Gold Mines

Toronto Stock Exchange-listed Pambili Natural Resources Corporation has expressed optimism about its option to acquire the London Wall group of gold mines and claims in Zimbabwe.

By Ryan Chigoche

Last year, the company announced a 12-month agreement with Long Strike Investments to acquire 21 gold assets in Gwanda, Matabeleland South Province.

In its latest update, Pambili, which also owns the Golden Valley Mine in Bulawayo, highlighted that historical success in the region suggests strong potential for the acquisition.

If history is any indicator, Pambili Natural Resources Corporation’s option agreement to acquire the London Wall group of gold mines and claims in Zimbabwe appears highly promising.

The option includes two previously producing gold mines, London Wall and New Jessie, along with claims located along three major regional gold-bearing geological structures.

“Although the historical data has yet to be independently verified, the reported figures align with previous production records, and we are excited to have the opportunity to confirm the potential of this project,” said CEO Jon Harris in a statement.

Gold mineralization within the claims, according to the technical team at Long Strike Investments (Private) Limited, is controlled by three primary regional geological structures, all of which converge at the 1.3-kilometre-deep Jessie Mine, located just outside the southeastern extent of the claims area:

  • The Southern Structure: This structure, spanning 1.4 km within the claims, includes the previously producing London Wall mine.
  • The Central Structure: Known as the Jessie structure, this includes the New Jessie mine and the Jessie Mine itself, which has produced more than 440,000 ounces of gold at an average grade of 10.5 g/t. The Jessie Mine has operated continuously for nearly 100 years.
  • The Northern Structure: Running along the contact between a Banded Iron Formation (BIF) and a felsic intrusive formation, this structure hosts numerous artisanal gold workings. These areas have never been systematically explored using modern mining methodologies.

Before Pambili’s agreement, the owners of the Jessie Mine were reportedly mining the London Wall and New Jessie mines under a tribute agreement with previous owners, extracting about 18 tonnes of material per day at commercial grades, according to a statement released by the company.

Under the terms of the option agreement with Long Strike Investments, which lasts for 12 months (extendable to 24 months), Pambili will retain 95% of any gross income generated from the claims and mines. The company also has an unencumbered right to mine and develop the assets.

Additionally, Long Strike has applied for contiguous extensions to the claims, totaling 547.8 hectares, which will complement the 173 hectares included in the original option. Once granted, these extensions will be incorporated into the agreement.

Apart from Golden Valley Mine, Pambili also owns and operates the Happy Valley Mine, another gold operation located 15 km from Bulawayo.

Meanwhile, this development comes at a time when Zimbabwe’s gold exports are poised for significant growth, with projections of US$4 billion in annual revenue starting this year.

The surge is expected to be driven by a combination of factors, including new investments in the gold sub-sector, the reopening of previously closed mines, and expansion projects at existing operations.

Last year, the country achieved a record-high gold production of 36.5 tonnes, surpassing the annual target by 21.3%.

Inovalis Real Estate Investment Trust Announces the Conditional Sale of 87.5% of the Arcueil Property for €37.5 Million

Article content

TORONTO — Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) today announced the signing of an exchange contract for the sale of 87.5% of the Arcueil property to two parties for €37.5 million ($56.5 million) which reflects, on a pro-rated basis, 100% of the property’s appraised value of €45.0 million ($67.8 million) as set forth in the Q3 unaudited Financial Statements of the REIT.

Article content

Article content

The sale is conditional upon the satisfaction of certain conditions including the issuance of a building permit, the receipt of financing by the purchasers as well as other municipal approval and environmental conditions. There is no certainty, nor can the REIT provide any assurance, that these conditions will be satisfied and, as such, there is no assurance that the transaction will be completed, or if completed, will be on the terms set forth herein. Any material difference in the terms of the transaction will be disclosed if and when they occur.

Advertisement 2

Story continues below

Article content

The expected net proceeds from this transaction after the full repayment of bank debt related to the property is expected to be approximately €6.2 million ($9.3 million) and would be used for capital expenditures relating to the re-positioning and/or re-development of currently owned properties and further reducing the REIT’s indebtedness. The closing of the transaction is only expected to take place at the earliest in the second half of 2026. The remaining 12.5% of the property is being marketed separately.

FORWARD-LOOKING INFORMATION

Certain statements contained, or contained in documents incorporated by reference, may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the REIT’s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, occupancy rates, rental rates, productivity, projected costs, capital investments, development and development opportunities, financial results, taxes, plans and objectives of or involving the REIT. Particularly, statements regarding the REIT’s future results, performance, achievements, prospects, costs, opportunities, and financial outlook, including those relating to the sale of the Arcueil property, acquisition and capital investment strategies and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or the negative thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities.

Although management believes that the expectations reflected in the forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct, and since forward-looking information inherently involves risks and uncertainties, undue reliance should not be placed on such information.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such forward-looking statements. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this press release as well as the following:

Article content

Advertisement 3

Story continues below

Article content

  1. the ability to complete the sale of the Arcueil property;
  2. the ability to continue to receive financing on acceptable terms;
  3. the future level of indebtedness and the REIT’s future growth potential will remain consistent with current expectations;
  4. there will be no changes to tax laws adversely affecting the REIT’s financing capability, operations, activities, structure, or distributions;
  5. the REIT will retain and continue to attract qualified and knowledgeable personnel as the portfolio and business grow;
  6. the impact of the current economic climate and the current global financial conditions on operations, including the REIT’s financing capability and asset value, will remain consistent with current expectations;
  7. there will be no material changes to government and environmental regulations that could adversely affect operations;
  8. conditions in the international and, in particular, the French, German, Spanish and other European real estate markets, including competition for acquisitions, will be consistent with past conditions; and
  9. the demand for the REIT’s properties and global supply chains and economic activity in general.

The REIT cautions that this list of assumptions is not exhaustive. Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements.

When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not, or the times at or by which, such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements, including, but not limited to:

  • the REIT’s ability to execute its growth and capital deployment strategies;
  • the impact of changing conditions in the European office market;
  • the marketability and value of the REIT’s portfolio;
  • changes in the attitudes, financial condition and demand in the REIT’s demographic markets;
  • fluctuation in interest rates and volatility in financial markets;
  • the geopolitical conflict around the world on the REIT’s business, operations and financial results;
  • general economic conditions, including any continuation or intensification of the current economic conditions;
  • developments and changes in applicable laws and regulations; and
  • such other factors discussed under ‘‘Risk and Uncertainties’’ in the MD&A dated September 30, 2024 (“the MD&A”).

Advertisement 4

Story continues below

Article content

If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking statements prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. The opinions, estimates or assumptions referred to above and described in greater detail under ‘‘Risks and Uncertainties’’ in the MD&A should be considered carefully by readers. Although management has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other risk factors not presently known or that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements.

Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Certain statements included in press release may be considered a ‘‘financial outlook’’ for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than this press release. All forward-looking statements are based only on information currently available to the REIT and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.

About Inovalis REIT

Inovalis REIT is a real estate investment trust listed on the Toronto Stock Exchange in Canada. It was founded in 2013 by Inovalis and invests in office properties in primary markets of France, Germany and Spain. It holds 13 assets. Inovalis REIT acquires (indirectly) real estate properties via CanCorpEurope, authorized Alternative Investment Fund (AIF) by the CSSF in Luxemburg, and managed by Inovalis S.A.

About Inovalis Group

Inovalis S.A. is a French Alternative Investment fund manager, authorized by the French Securities and Markets Authority (AMF) under AIFM laws. Inovalis S.A. and its subsidiaries (Advenis S.A., Advenis REIM) invest in and manage Real Estate Investment Trusts such as Inovalis REIT, open ended funds (SCPI) with stable real estate focus such as Eurovalys (for Germany) and Elialys (Southern Europe), Private Thematic Funds raised with Inovalis partners to invest in defined real estate strategies and direct Co-investments on specific assets

Advertisement 5

Story continues below

Article content

Inovalis Group ( www.inovalis.com), founded in 1998 by Inovalis SA, is an established pan European real estate investment player with EUR 7 billion of AuM and with offices in all the world’s major financial and economic centers in Paris, Luxembourg, Madrid, Frankfurt, Toronto and Dubai. The group is comprised of 300 professionals, providing Advisory, Fund, Asset and Property Management services in Real Estate as well as Wealth Management services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109336423/en/

Contacts

For further information, please contact:

Stephane Amine, President and Chief Executive Officer
Inovalis Real Estate Investment Trust
Tel: +33 1 5643 3315
stephane.amine@inovalis.com

Khalil Hankach, Chief Financial Officer
Inovalis Real Estate Investment Trust
Tel: +33 1 5643 3313
khalil.hankach@inovalis.com

Article content

Comments

Join the Conversation

Featured Local Savings

Andean Precious Metals Corp. (APM) Opens The Market


(MENAFN– Newsfile Corp)
Toronto, Ontario–(Newsfile Corp. – January 9, 2025) – Alberto Morales, Executive Chairman and Chief Executive Officer, Andean Precious Metals Corp. (“Andean Precious Metals” or the “Company”) (TSX: APM), and his team joined Dean McPherson, Head, Business Development, Global Mining, Toronto stock exchange (TSX), to open the market to celebrate the Company’s graduation to Toronto Stock Exchange.

Cannot view this video? Visit:

Andean is a growing precious metals producer focused on expanding into top-tier jurisdictions in the Americas. The Company owns and operates the San Bartolomé processing facility in Potosí, Bolivia and the Soledad Mountain mine in Kern County, California, and is well-funded to act on future growth opportunities. Andean’s leadership team is committed to creating value; fostering safe, sustainable and responsible operations; and achieving our ambition to be a multi-asset, mid-tier precious metals producer. With a strategic focus on operational excellence and community engagement, the Company is well-positioned for continued success and long-term growth.

MENAFN09012025004218003983ID1109074384


Newsfile Corp

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Energy Toolbase Partners with Hawaii Unified Industries to Install Intelligent Energy Storage Controls at Golf Club

They were searching for control software that could seamlessly integrate with innovative battery technology and provide energy arbitrage capabilities. The system was paired seamlessly with ETB Controller, a sophisticated energy management system from Energy Toolbase.

Energy Toolbase (ETB) has expanded its energy storage offering in Hawaii. ETB and Hawaii Unified partnered to install an intelligent energy management system at a golf club in Kihei, Hawaii. Hawaii Unified, which has been modeling solar and energy storage projects in the ETB Developer platform since 2017, installed the ESS with a storage capacity of 125kW/352kWh to complement an existing 174.80 kW solar PV array at the golf course. They were searching for control software that could seamlessly integrate with innovative battery technology and provide energy arbitrage capabilities. The system was paired seamlessly with ETB Controller, a sophisticated energy management system from Energy Toolbase.

The ESS will utilize ETB Controller with Acumen AI™ to target peak demand charges with PV self-consumption to reduce excess energy exports to the grid by charging the battery during the day when PV is producing and discharging the battery at night. With the integration of Energy Toolbase’s asset monitoring software, ETB Monitor, both the developer and the customer gain a unified interface for monitoring the real-time performance of the systems.

“Hawaii has long been a leader in renewable energy growth, continually advancing legislation and regulations to foster adaptation, which is truly exciting,” said Kevin Mulvey, Vice President of Operations at Energy Toolbase. “We are very proud to contribute to this growth and to add more renewable energy sources to the islands.”

About Energy Toolbase

Energy Toolbase is an industry-leading software platform that provides a cohesive suite of project estimating, storage control, and asset monitoring products that enable solar and storage developers to deploy projects more efficiently. Energy Toolbase’s SaaS products are used by over 1,000 distributed energy organizations worldwide. To learn more or request a free trial, visit www.energytoolbase.com.

Energy Toolbase is backed by its parent company, Pason Systems, a leading global provider of data management systems and controls automation software for the energy industry. With a global footprint and 40-year track record, Pason enjoys one of the strongest balance sheets in the industry and trades on the Toronto Stock Exchange under the symbol PSI.

About Hawaii Unified

We are Hawaii’s solution-driven leaders in construction, energy, and facility maintenance, leveraging the experience and expertise of our self-performing trades to deliver unparalleled service and project execution. Hawaii Unified is a self-performing contractor with one of the most highly trained and experienced craft workforces in the Hawaii market. We believe in self-performing our work as it allows our project team to be proactive rather than reactive. The Hawaii Unified team sets the standard for the pace and quality of work and is able to better anticipate and resolve potential issues. With our in-house staff, established relationships, and local intelligence, Hawaii Unified can design, build, and finance your projects in Hawaii and the Pacific Islands. For more information, please visit www.hawaiiunified.com.

Do You Have News to Share? Get It Published.

Reach Millions With One Click

Go out on the wires, get syndicated, delivered to newsrooms,
posted to social media and on mobile devices.

Watch Video To See How It Benefits You

  • Get published on Google News, AP News, Benzinga, over 100+ NBC, FOX, ABC & CBS affiliate sites and more
  • Target specific countries and industry verticals
  • Get into the most important news databases and news wires
  • Reach journalists and media influencers
  • Attain long-term visibility in search engines & SEO benefits
  • Send releases in any language
  • Cost-effective, affordable budget options
  • No subscriptions – buy only what you need

Powerful.
Timely.
Effective.
Affordable.

Go out on the wires, get syndicated, delivered to newsrooms,
posted to social media and on mobile devices.

Lincoln Advancing Globex’s Bell Mountain Gold Royalty Project in Nevada


Lincoln Advancing Globex’s Bell Mountain Gold Royalty Project in Nevada – Toronto Stock Exchange News Today – EIN Presswire




















Trusted News Since 1995

A service for global professionals
·
Thursday, January 9, 2025

·
775,510,942
Articles


·
3+ Million Readers

News Monitoring and Press Release Distribution Tools

News Topics

Newsletters

Press Releases

Events & Conferences

RSS Feeds

Other Services

Questions?




Safety Shot to buy energy drinks maker Yerbaé Brands

US-based wellness and dietary supplement company Safety Shot has reached a deal to acquire Yerbaé Brands, a plant-based energy drinks company.

The companies signed a definitive arrangement agreement under which all common shares of Yerbaé will be exchanged for an aggregate of 20 million shares of Safety Shot common stock.

This deal represents a basic equity value of $15.2m and an enterprise value of $19.7m, respectively, according to a statement.

Safety Shot shareholders will own approximately 75.8% of the combined business, while former Yerbaé shareholders will hold 24.2%.

Subject to necessary conditions and approvals, the transaction is anticipated to close in the second quarter of 2025.

Founded in 2017 by Todd and Karrie Gibson, Yerbaé specialises in energy drinks made from plant-based ingredients.

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData





Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In its 2023 fiscal year, the energy drinks maker generated approximately $12m in revenue.

Safety Shot sells a range of 4oz “alcohol reducer” shots which claim to be able to lower blood alcohol and reduce the negative impact of alcoholic drinks on the body. Its drinks also come in a stick pack format.

John Gulyas, Safety Shot chairman, anticipates that the acquisition of Yerbaé will serve as a “significant revenue catalyst” for the company, “on top of an expected revenue growth rate of 50% expected in Q4, versus Q3”.

Safety Shot CEO Jarrett Boon added that the deal is “bringing together the best of both worlds – Safety Shot’s expertise in wellness solutions and Yerbaé’s strength in plant-based beverages – to create a company with significant potential.”

The proposed agreement is expected to generate “significant cost synergies”, according to the statement, primarily through efficiencies in general and administrative expenses and the supply chain.

The business plans to leverage Yerbaé’s “strong” distribution network to enhance its market visibility.

The acquisition is also expected to “enhance” Safety Shot’ visibility and growth trajectory in the US and Canada.

Upon the deal closing, Safety Shot’s leadership team will remain in place while Yerbaé’s team will assume secondary management roles.

Shares of Yerbaé will also be delisted from the Toronto Stock Exchange Venture (TSXV).

Yerbaé CEO Todd Gibson said: “We believe that the transaction will provide us with access to new distribution channels, expanded marketing capabilities, and valuable synergies that will look to benefit both brands.”

Speaking to Just Drinks in September 2023, co-founder Todd Gibson said it planned to build up Yerbaé Brands with the idea of possibly selling it to a larger business.

At the time, he said the “very clear plan is to build this business for it to be an acquirable business by a reputable acquirer”.

He said: “There are nine different major companies, major potential acquirers that are out there. And none of them have a yerba-maté in their portfolio right now. That gives us an opportunity to stand out in that crowd.”


Posthaste: How the stock market can tank when you least expect it

You don’t always need a recession to send stocks into a tailspin

Article content

Article content

Article content

The last time the S&P 500 posted back-to-back annual returns above 20 per cent was in the 1990s, and this raises the question — how long will it last?

Recession is the most common driver of significant losses in the stock market; you only have to look as far back as 2020 and 2008 to see that. But today with no signs of a slowdown on the horizon and leading indicators looking up, the good times should just keep rolling, right?

Advertisement 2

Story continues below

Article content

Not necessarily, says a report from Deutsche Bank Research. There are times when markets have toppled into a serious decline without a recession, and though they are “pretty infrequent,” their researchers found eight examples in the past 75 years that reveal common themes.

S&P500 chart
Deutsche Bank Research

Sometimes it doesn’t take a recession, it just takes the fear of a recession.

That’s what happened in 2022, when the Federal Reserve began to clamp down on soaring inflation with aggressive interest rate hikes. Growth slowed as well, with GDP in the United States dropping from 5.7 per cent in the fourth quarter of 2021 to 1.3 per cent a year later.

A U.S. recession became the consensus forecast among economists and that’s all it took. The S&P 500 fell by 25 per cent from peak to trough.

“Ultimately, this episode is a good example of equities selling off based on fears of a recession, rather than the reality of one,” said Henry Allen, Deutsche Bank macro strategist.

Now let’s travel back to Black Monday in 1987 when the S&P 500 fell 20 per cent in one day. The carnage on Oct. 19 was part of broader decline which saw the index lose 33 per cent in less than four months, said Deutsche.

Article content

Advertisement 3

Story continues below

Article content

Many of the factors behind that fall exist today and one of the big ones was concern about high valuations. When it peaked in August, 1987 the S&P 500 was up 39 per cent year over year.

Today, as Noah Solomon points out in his column for the Financial Post, the S&P 500 is at its highest multiple in the postwar era, except for the tech bubble in the late 1990s.

“The four largest debacles in the history of modern markets were all preceded by peak valuations,” says Solomon.

In 1987, there were also fears about trade and budget deficits, both on the minds of investors today as president-elect Donald Trump prepares to enter the White House.

The one component that existed then and not now was a hawkish Fed.

One of the biggest falls outside of a recession was in 1961, when the S&P 500 shed 28 per cent.  Again there were growing concerns about extended valuations with the CAPE ratio hitting its highest level since 1937. Growth was slowing, but was far from contracting.

Deutsche says two themes emerge from its examples: Slowing growth raises fears of recession, even if there isn’t one, and the Fed tightens monetary policy.

Advertisement 4

Story continues below

Article content

“So if growth remains strong and the Fed don’t start hiking rates again, it’s not implausible that elevated valuations continue for some time,” wrote Allen.

“But history demonstrates that if signs of a slowdown do emerge or rate hikes move back on the table, then it’s possible for equities to experience a notable decline, even without a recession.”


 Sign up here to get Posthaste delivered straight to your inbox.



gold chart
National Bank of Canada

Rarely does trade data ignite such a reaction. News this week that Canada’s trade surplus with the United States had widened to $8.2 billion sent president-elect Donald Trump into another tariff tirade.

“We don’t need anything they have,” Trump said of Canada on Tuesday, characterizing the trade deficit as a subsidy. “We have more than they have.”

Canada’s exports to America rose 6.8 per cent in November, and imports increased 4.1 per cent. Our southern neighbour is by far our largest trading partner, accounting for 76 per cent of exports and 64 per cent of imports.

Oil, gas and metals mainly drove gains in November. Copper ore shipments surged almost 39 per cent and exports of gold/silver/platinum soared 21 per cent to an all-time high of $4.9 billion, said National Bank of Canada.

Advertisement 5

Story continues below

Article content

  • U.S. markets will be closed today to observe a National Day of Mourning for former President Jimmy Carter.
  • Today’s Data: United States wholesale trade
  • Earnings: Aritzia Inc.

market chart
Financial Post


Career change is now a defining feature of modern working life, with 42 per cent of Canadians contemplating changing jobs. But before you take the plunge, there are financial implications you need to consider. Lynn MacNeil outlines some practical steps to take so that your career transition aligns with your long-term financial goals. Read more


Calling Canadian families with younger kids or teens: Whether it’s budgeting, spending, investing, paying off debt, or just paying the bills, does your family have any financial resolutions for the coming year? Let us know at wealth@postmedia.com.


McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Advertisement 6

Story continues below

Article content


Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.


Today’s Posthaste was written by Pamela Heaven, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.


Recommended from Editorial

  1. Millennials hold the most debt at $911 billion, about 38 per cent of all Canadian debt. 

    Millennials overtake baby boomers on debt for the first time

  2. Cars and trucks back up in traffic in the Greater Toronto Area.

    Canada’s congestion ‘crisis’ is costing billions

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here

Article content

Comments

Join the Conversation

Featured Local Savings

Copyright © 2019. TSX Stocks
All Rights Reserved