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‘That’s a Wrap’

By Rod Blake

Resource investors walked a little taller and entered the new North American trading week somewhat optimistic and hoping that last week’s market action would repeat as, for the first time in many weeks, commodity stocks outperformed their non-resource counterparts.

The way I see it – While the U.S mid-term elections can bring out the best and worst of democracy – they are usually good for equity investors as, according to Comercia Wealth Management – the S&P 500 Index has an average yearend gain of about 13% following a U.S. mid-term election.

Some drill holes are just worth mentioning. Case in point – Kelowna based Fission Uranium Corp. ‘FCU-T’ reported a uranium mineral intercept of 34.0 metres of 19.2% U3O8, including 26.0 metres of 24.59% U3O8 from diamond drill hole PLS21-MET-004 in the R840W zone of the company’s flagship Triple R uranium deposit in Saskatchewan’s Athabasca Basin.

Yamana Gold Inc. ‘YRI-T’ & ‘AUY-N’ rejects a previously accepted takeover bid by South Africa’s Gold Fields Ltd. ‘GFI-N & J’ and accepts the recent joint US$5.02/share cash & stock takeover offer from Vancouver B.C. based Agnico Eagle Mines Ltd. ‘AEM-T & N’ and Pan American Silver Corp. ‘PAAS-T & Q’.

It is well known in resource circles that often those that supply the miners may do better than the miners themselves. Example – Finning International Inc. ‘FTT-T’ shares’ rose by $0.79 or 2.61% to $31.04 after the Edmonton, AB based and the world’s largest Caterpillar heavy equipment distributor reported 3rd-quarter results that handily beat analysts’ expectations and included trailing 4-quarter earnings of $3.01/share.

Describing itself as “Opportunity Rich”TC Energy Corp. ‘TRP T & N’ announced it would sell in excess of $5-billion of projects though 2023.

The price of Copper Mountain Mining Corp. ‘CMMC-T’ shares’ plunged by $0.37 or 20.00% to $1.48 after the Princeton, B.C. copper miner surprised the market with a 3rd-quarter loss of $0.11 per share.

Maverix Metals Inc. ‘MMX-T & A’ shareholders saw their investment rise by $0.48 or 10.16% to $5.25 after the Vancouver, B.C. gold-focused royalty and streaming company agreed to be acquired by Toronto, ON based fellow streaming company Triple Flag Precious Metals Corp. ‘TFPM-T & N’ in a US$605-million deal that will see MMX shareholders receive a cash or stock equivalent of US$3.92 per share.

The price of Lithium carbonate moved up to a record high of US$83,586 per tonne.

Algonquin Power & Utilities Corp. ‘AQN-T & N’ stock fell by $2.95 or 19.29% to $12.34 after the Oakville, ON utility and renewable energy company’s 3rd-quarter report and 4th-quarter outlook failed to meet the market’s expectations.

In the oil patch – The key Baker Hughes Petroleum Rig Count reported the number of active American drilling rigs rose by 9-rigs to 779, an increase of 223 from this time last year. Up north – the number of Canadian active rigs dripped by 9-rigs to 200, an increase of 32 in the past year.

For the Week – the DJI gained 4.14% to 33,748 with the S&P 500 up by 5.89% to 3,993 and the NASDAQ ahead by 8.10% to 11,323. In Canada – the TSX rose by 3.40% to 20,112 and the TSX Venture gained 1.01% to an even 600. The CBOE Volatility Index or VIX dropped by 8.27% to 22.52.

With currencies – the Canadian dollar rose by 1.55% to US$0.7536 while the U.S. dollar ‘DXY’ fell by 4.02% to 106.29.

With commodities Gold bullion gained 5.35% to US$1,771 with silver up by 3.98% to US$21.70 as copper rose by 6.43%  to US$3.97 and lithium reached US$82,469. Crude oil lost 3.84% to US$88.80 and natural gas fell by 8.95% to US$5.90. Lumber gained 1.60% to US$445. Overall – the CRB Commodities Index fell by 1.94% to 304.

And Finally Nov. 11thCanada’s ‘Remembrance Day ‘ & America’s ‘Veterans Day’ – “Lest We Forget”….

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