Despite a major winter storm rushing across the country, the TSX found reasons for cheer.
U.S. data showed cooling inflation, spurred on by elevated consumer expectations about it decelerating in the near term.
CPI was 7.1 per cent YoY in November, down from 7.7 per cent the month prior.
Consumer spending also decelerated from 0.4 per cent in October to 0.1 per cent in November, signalling a gradual economic slowdown in line with a soft landing.
The S&P/TSX, Capped Energy Index, was up by 4 per cent on higher oil prices due to the prospects of diminishing Russian supply.
The S&P/TSX, Capped Technology Index, lost 0.95 per cent due to a rise in Canadian bond yields.
The TSX was up throughout the day, closing at a gain of 0.81 per cent, which brings its return to -8.12 per cent over the past year.
The U.S. market, for comparison, is down by over 15 per cent over the past 12 months, with Developed International at -12.6 per cent and Emerging Markets at -18 per cent.
The market optimism in the air today also aligns with positive Canadian economic data, including October’s deceleration to 0.1 per cent from September’s upwardly revised 0.2 per cent, with Statistics Canada’s estimate for November showing real GDP unchanged for the month.
Service-producing industries (food and drink, sports and performing arts) gained compared to goods producers (mining, oil and gas, manufacturing), a sign that pandemic disruptions to consumer spending are abating, despite fears of an interest rate-induced recession.
Supported by resilient consumption and 5.1 per cent unemployment, the Bank of Canada’s interest rate hikes appear to be causing a gradual tightening of household budgets, which minimizes the probability of a near-term black swan event.
Whether economic activity continues on its descent or takes an unexpected turn to the upside, our investor community remains focused on long-term opportunities in the small and micro-cap space, including a cash-generating energy producer, a logistics company with established market share, and a battery metal miner with considerable exploration upside.
Trillion Energy (CSE:TCF) reflects on its successes in 2022 and discusses what lies ahead
2022 has been a pivotal year for Trillion Energy.
VP of Corporate Development Colin Robson joined Daniella Atkinson to discuss the company’s accomplishments in 2022 and highlight its future plans.
The company intends to drill 17 new natural gas wells between 2022-2024.
Natural gas prices in Turkey have remained constant over the last three months at US$30+/MCF, as evidenced by November revenue figures.
Given ongoing sanctions against Russian crude, persistently high inflation, and the recovery of experiential consumption as COVID fades into the background, fuel prices have a strong case for staying higher for longer.
Trillion Energy (TCF) closed unchanged over the past week, trading at $0.44 per share.
Mullen Group (TSX:MTL) reports the sale of additional non-core asset
Mullen Group has announced the sale of a terminal and 4.5 acres of land in Surrey, B.C.
The sale supports the logistics company’s strategy to manage its balance sheet through the divestiture of non-core assets.
It has divested $50 million of non-core assets this year, on the path toward its goal of no bank debt by year-end.
Senior Accounting Officer Carson Urlacher sat down with Daniella Atkinson to discuss the news.
On the back of record Q2 and Q3 results, the company’s 38 decentralized, self-managed business units are showing no signs of slowing down thanks to their diversified economic reach across over 5,000 Canadian communities.
Logistics’ essential role in an economy’s basic functioning, coupled with Mullen’s expansive footprint led by its 7,200 employees, add to the case for the company’s margin of safety compared to the market at large.
Mullen Group (MTL) closed down by 3.73 per cent over the past week, trading at $14.99 per share.
Clean Air Metals (TSXV:AIR) closes first tranche of $15M mineral royalty financing agreement
Clean Air Metals has closed the first tranche of a C$15 million mineral royalty financing agreement with Triple Flag Precious Metals.
The agreement features a 2.5 per cent net smelter returns royalty for all mineral products from the Thunder Bay North Critical Minerals Project.
Proceeds will finance an option payment owing on the project, as well as the completion of a pre-feasibility study and the advancement of exploration activities.
CEO Abraham Drost sat down with Daniella Atkinson to discuss the news.
Thunder Bay North is prospective for nickel and copper, two metals essential to enable the planet’s transition away from fossil fuels toward electric power.
Due to the lack of incentives to produce high-purity nickel or increase copper extraction until the advent of EVs and the expediting of battery technology, small explorers like Clean Air Metals offer individual investors long-term upside optionality on an ongoing global shift in how we manage our resources.
Clean Air Metals (AIR) closed unchanged over the past week, trading at $0.13 per share.