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Top 10 Gold Reserves by Country

Investing 10 Mins Read

Gold is one of the most important metals on the planet. For millennia it has been used in jewelry, art and currency, capturing the collective imagination as a thing of wonder. Gold’s association with royalty and wealth has inspired explorers and treasure hunters alike, who put themselves at risk for a chance to strike it rich.

Today, gold’s hold on us as a precious metal is no less powerful. Still used for jewelry and as a store of wealth, the metal also has a variety of modern industrial and electronic applications.

Even though gold seems to be everywhere, in reality it’s a finite resource. Only 244,000 metric tons of gold have ever been mined, and two-thirds of that has been extracted since 1950. Comparing that amount to the more than 700 million metric tons of copper that have been pulled from the ground provides an idea of how precious a resource gold truly is.

For investors interested in the yellow metal and the companies that mine it, it’s important to understand global gold reserves. This data can provide critical information on the long-term viability of supply and which countries have room to grow.

This article uses the most recent data from the US Geological Survey, which uses metric tons for its figures. As gold is often measured and discussed in ounces, this article will contain a mix of the two measurements. To add some perspective, 1 metric ton of gold is equal to 35,274 ounces — this means at the recent gold price of US$2,600 per ounce, 1 metric ton is over US$92 million worth of gold.

According to the US Geological Survey, identified economic gold reserves currently stand at just 59,000 metric tons globally. Read on to learn the top 10 gold producers by country.

1. Australia

Gold reserves: 12,000 metric tons

Outsized is one way to describe Australia. The sixth largest country by land area, it has the most gold reserves of any nation, coming in at 12,000 metric tons. Australia has been going through somewhat of a modern boom and has been consistent in producing more than 300 metric tons of gold every year since 2017. Over 60 percent of its gold deposits are in Western Australia.

In 2023, Australia’s Newcrest Mining merged with rival Newmont (TSX:NGT,NYSE:NEM) to form the largest gold mining company in the world. Under its banner it controls the two largest gold mining operations in Australia, Boddington and Cadia.

2. Russia

Gold reserves: 11,100 metric tons

Russia has the largest land area of any country, and unsurprisingly is among the top countries for gold reserves. It boasts an impressive 11,100 MT, up from the 6,800 metric tons it had at the end of 2022. Russia’s output was steady in 2023 with 310 MT extracted.

Polyus operates four of the country’s five largest mines, including the Olimpiada open-pit mine in Russia’s Krasnoyarsk region.

Despite steady production, Russian gold is having difficulties reaching most markets following the country’s invasion of Ukraine. The London Bullion Market Association halted trading and removed Russian refiners from its accredited list in March 2022. However, a significant portion of the metal was exported to the United Arab Emirates following the sacntions, according to Reuters, and Russian gold has also made its way into the country’s stockpiles.

3. South Africa

Gold reserves: 5,000 metric tons

South Africa remains a powerhouse in terms of global gold reserves, and the country’s Witwatersrand Basin is among the top gold jurisdictions in the world. However, while South Africa remains comfortably in the top three countries for reserves with 5,000 metric tons, the country has lost some of its luster when it comes to production. At the turn of the century, South Africa was the top gold-producing country, with 431 metric tons extracted in 2000. The country’s output has slowly fallen in the decades since though, and has hit all-time lows in recent years — South Africa extracted just 100 metric tons in 2023.

One reason for lowered production is decreasing gold grades, which have led miners operating in the country to move to greater depths. In fact, as of 2019, eight of South Africa’s gold mines were among the 10 deepest mines for any commodity, with AngloGold Ashanti’s (NYSE:AU,JSE:ANG) Mponeng gold mine topping the list at 2.4 kilometers to over 3.9 kilometers below surface. This has made industrial mining operations prohibitively expensive and more dangerous.

Other factors negatively affecting the mining sector are constant power outages in recent years and limited investment in exploration outside the Witwatersrand Basin.

4. United States

Gold reserves: 3,000 metric tons

Gold reserves in the US have remained steady at 3,000 metric tons since 2012. The country is home to well-developed infrastructure, highly experienced companies and an advanced workforce. However, over the last decade, production and refinement of the yellow metal in the US has been in decline, dropping from 230 metric tons in 2012 to 170 metric tons in 2023.

One of the largest operations in the country is Nevada Gold Mines (NGM), a joint venture between Barrick Gold (TSX:ABX,NYSE:GOLD) and Newmont. NGM includes three of the largest gold mines in the world: Goldstrike, Carlin and Cortez.

5. China

Gold reserves: 3,000 metric tons

China’s importance as a gold miner has been growing over recent year and made significant gains, moving from number nine on our list with 1,900 metric tons in 2022, to number five with 3,000 metric tons in 2023. Additionally, China’s output has been the strongest of the top ten producing 370 metric tons of gold last year.

While some deposits have been found in the western part of the country, the largest operations are in Shandong, which is home to the largest find in the country: the Xiling mine. Xiling, which is owned by Shandong Gold Group (SHA:600547), contains more than 580 metric tons of gold in reserves. The mine is expected to process 10,000 metric tons of ore per day for the next 30 years.

In addition to its mining output, China has also been driving the price of gold over the past couple years with significant purchases by the People’s Bank of China which now holds an estimated 2,264 metric tons of gold.

6. Indonesia

Gold reserves: 2,600 metric tons

Home to remote mining sites and enormous reserves, Indonesia is a destination for gold companies looking to stake a claim.

The country is home to the Grasberg complex, one of the world’s largest gold operations and host to 23.9 million recoverable gold ounces. Operated by Freeport-McMoRan (NYSE:FCX), Grasberg includes several underground mines and the Kucing Liar deposit, which is currently being developed.

Once Kucing Liar is operational, Freeport expects it to deliver an additional 520,000 ounces of gold per year for 6 million total ounces between 2029 and 2041.

7. Brazil

Gold reserves: 2,400 metric tons

Home to the first modern gold rush over 300 years ago, Brazil has an undeniable history with the precious metal. The country currently has 2,400 metric tons of reserves, although it extracted only 60 metric tons in 2023.

Companies like G Mining Ventures (TSXV:GMIN,OTCQX:GMINF) with its Tocantinzinho asset may boost Brazil’s gold position in the years to come.

Much like Peru below, gold mining in Brazil has a darker side as well. Illegal operators, many of which have found their into mining through social media sites like YouTube and TikTok, are impacting both sensitive rainforest ecosystems and local Indigenous communities. Despite government crackdowns, new operations continue to pop up throughout the Amazon.

8. Peru

Gold reserves: 2,300 metric tons

Gold has been an important part of Peru’s economy for centuries. The country has a well-documented mining industry, and it ranks as one of the top nations in the world when it comes to gold reserves. Between 2012 and 2022, Peru increased its gold reserves from 2,000 metric tons to 2,900 metric tons, but saw a fall off in 2023 with just 2,300 metric tons.

During this time, production fell from 160 metric tons to 90 metric tons. This fall was due to a combination of factors, including increased regulation to combat illegal operations, instability in the country and COVID-19 restrictions.

Large players make up the bulk of Peru’s gold industry, with major miner Newmont leading the way at Yanacocha, the biggest gold mine in Peru. There are also artisanal operations in the country, along with operations being run by criminal organizations. While environmental concerns are common in the mining industry, illegal and small-scale gold miners often employ mercury during the extraction process, which is very damaging to the environment.

To counteract illegal mining operations, the Peruvian government instituted Operation Mercury in 2019, which involved military interventions at illegal mine sites and the destruction of mining operations. For small-scale and artisanal mining, programs such as the Fairmined Ecological Gold certification exist to encourage environmentally friendly mining methods by introducing premium prices for gold that meets particular requirements. This also allows gold buyers to identify gold from legal operations that reduce the use of toxic treatments like mercury during the extraction process.

9. Canada

Gold reserves: 2,300 metric tons

Canada has a rich history of gold mining since the metal was first discovered in Québec in the early 1800s. Mining operations can now be found across Canada, but more than 70 percent of the country’s gold is produced in Ontario and Québec. Other significant producers are BC with 9 percent, the Yukon with 4 percent and Manitoba with 2 percent.

Canada’s gold reserves have remained constant since 2012 and currently sit at 2,300 metric tons. However, the country has more than doubled its gold output in that time, jumping from 97 metric tons in 2012 to 200 metric tons in 2023.

Because of its well-established natural resource sector, Canada is leading the way in sustainable initiatives to protect the environment and communities. The Mining Association of Canada’s Toward Sustainable Mining initiative has been adopted by organizations around the world, including those in Finland, Brazil and the Philippines.

10. Uzbekistan

Gold reserves: 1,800 metric tons

Even though the first gold mine in Uzbekistan began operating in the 1960s, it’s only recently that the country has begun to develop its resources. After gaining independence from the Soviet Union in 1991, the mining industry in Uzbekistan was in disarray, and most mining projects had stalled. Production hit a low of 65 metric tons per year in the mid-1990s, but since 2020 output has nearly doubled to 100 metric tons per year.

Most of Uzbekistan’s gold is mined at the massive state-owned Muruntau gold mine in the Qizilqum Desert. This open-pit mine is calculated to hold more than 4,000 MT in total reserves.

Economically, gold is one of Uzbekistan’s most important exports, generating US$3.42 billion during the first quarter of 2024.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Investing

Jindalee Lithium

Investing 10 Mins Read

Overview

Jindalee Lithium (ASX:JLL,OTCQX:JNDAF) is an Australia-based exploration and development company advancing North America’s largest lithium deposit. After a spinout of its Australian assets, Jindalee has become a pure-play lithium company focused exclusively on its promising 100-percent-owned McDermitt project. Jindalee recognises the vast opportunity for lithium projects in the US as the country progresses towards its sustainable energy transition and developing a robust domestic supply chain for critical minerals.

As the US strives to transition to clean energy, demand for lithium will continue to increase as this critical mineral is necessary to achieve the country’s net-zero goals. With its favorable mining policies and infrastructure, the US actively supports the advancement of new projects to strengthen its domestic supply chain.

Jindalee’s McDermitt asset, located in southeast Oregon, contains a unique type of lithium mineralisation. Most lithium projects in North America are lithium brine or pegmatite deposits; however, the McDermitt project is an unconventional sediment-hosted lithium asset.

Sediment-hosted lithium deposits such as McDermitt are long-life assets with low strip ratios and low mining costs. Jindalee can leverage this advantage over other lithium assets, both in terms of reaching production faster and reducing operating expenses.

There is currently no commercially operating sediment-hosted lithium project in North America. Two recently announced projects, however, are under development and demonstrate McDermitt’s future trajectory as both companies move toward production.

The 2023 mineral resources estimate (MRE) for McDermitt contains a combined indicated and inferred mineral resource inventory of 3 billion tons at 1,340 parts per million (ppm) lithium for a total of 21.5 million tons (Mt) lithium carbonate equivalent (LCE) at 1,000 ppm cut-off grade. At 21.5 Mt LCE, McDermitt is the largest lithium deposit in the US by contained lithium in mineral resource, and a globally significant resource, with the deposit remaining open to the west and south.

In June 2023, Jindalee commenced a pre-feasibility study (PFS) on the McDermitt Lithium Project appointing Fluor Corporation as lead engineer. The company expects completion of the PFS by mid-2024. Jindalee also announced initial metallurgical results from acid leaching of the beneficiated samples of McDermitt ore. Lithium extraction from composite samples averaged 93 percent (250 micron (µm)) and 94 percent (75 µm) while lithium extraction from all units exceeded 98 percent with higher acid additions.

In a move that signifies the US government’s support of the McDermitt lithium project, the US Department of Energy’s Ames National Laboratory signed a Cooperative Research and Development Agreement with Jindalee’s subsidiary HiTech Minerals to develop cutting-edge extraction methods for the McDermitt project. The Ames National Laboratory spearhead the DOE’s Critical Materials Innovation Hub

An experienced management team, with the right blend of experience and expertise in geology, corporate administration and international finance, leads Jindalee to fully capitalise on the potential of its assets.

Company Highlights

  • Jindalee Lithium is a pure-play lithium exploration and development company focusing on its flagship McDermitt lithium project, currently the largest lithium deposit in North America.
  • The United States has ambitious electrification goals but lacks the critical minerals to reach them. Jindalee aims to strengthen the North American supply chain to enable the country to reach net-zero emissions targets.
  • Globally, most of the lithium is currently sourced from either pegmatite or lithium brine deposits. The company’s McDermitt deposit, however, is sediment-hosted, an emerging style of lithium deposit with the potential to be a long-life, low-cost source of lithium.
  • There are presently no sediment-hosted lithium assets in North America that have reached production. Jindalee is ideally positioned to help fill this void in the market.
  • Other companies in North America are moving towards production, and their progress indicates Jindalee’s future trajectory.
  • An experienced management team leads Jindalee towards capitalising on the potential of its assets.

Key Project

McDermitt Lithium Project

The McDermitt Project is located in Malheur County on the Oregon-Nevada border and is approximately 35 kilometres west of the town of McDermitt. The 100-percent-owned asset covers 54.6 square kilometres of claims at the northern end of the McDermitt volcanic caldera. Following positive results from its 2022 drill campaign, the resource at McDermitt has increased to 21.5 Mt LCE, making McDermitt the largest lithium deposit in North America.

Project Highlights:

  • Rare Sediment-hosted Lithium Deposits: The McDermitt asset supports low-cost mining operations due to its flat-lying sediments. This type of lithium deposit is amenable to low-cost mining operations, while still producing excellent metallurgical results.
  • Resource Increased by 62 percent early 2023: Compilation of the 2022 drilling results saw the estimated indicated and inferred resources at McDermitt increase to 3 billion tons at 1,340 ppm lithium, a 62 percent increase in contained lithium. The updated resource released by the company contains a combined indicated and inferred total of 21.5 Mt LCE at 1,000 ppm cut-off grade.
  • Fluor recommended processing route: In March 2023, US engineering group Fluor reviewed all testwork undertaken at McDermitt and recommended beneficiation and acid leaching as the optimal processing route.
  • Highly encouraging metallurgical testwork: Results from beneficiation and acid leaching tests have exceeded expectations. Beneficiation testwork completed in late 2023 (on sample representing a nominal life-of-mine average feed) recovered 92 percent of the lithium to leach feed and rejected 25.3 percent of the mass at a cut size of 250 µm. Additionally the acid leach test work announced in early 2024 demonstrated very high lithium extraction rates on beneficiated ore. Specifically, the calculated lithium extraction for a composite sample using 250 µm leach feed was 92.9 percent which compares favourably with the extraction rate (94 percent) achieved through testwork from the finer (75 µm) leach feed using 500 kg/t acid. Further testwork is now underway.
  • PFS in progress: Jindalee has appointed Fluor Corporation to commence the PFS for McDermitt, set to be completed by mid-2024.

Management Team

Ian Rodger – Chief Executive Officer

Ian Rodger is a qualified mining business executive with almost 15 years of experience in various roles including as a mining engineer for Rio Tinto across two large greenfield mine developments, before successfully transitioning into mining corporate finance where he held Executive and Director positions at RFC Ambrian overseeing origination and management of numerous mandates across a range of corporate advisory roles. Rodger was the project director for Oz Minerals (ASX:OZL) where he made significant contributions to successfully define the value potential of the West Musgrave nickel/copper province through the delivery of a portfolio of growth studies. Most notably, he led technical, market and partnership development workstreams, successfully confirming value potential for producing an intermediate Nickel product for the battery value chain.

Rodger holds a Bachelor of Mining Engineering from the University of Queensland, a Masters of Mineral Economics from Curtin University and is also a graduate of the Australian Institute of Company Directors and member of the Australasian Institute of Mining and Metallurgy.

Lindsay Dudfield – Executive Director

Lindsay Dudfield is a geologist with over 40 years of experience in multi-commodity exploration, primarily within Australia. He held senior positions with the mineral divisions of Amoco and Exxon. In 1987, he became a founding director of Dalrymple Resources NL and spent the following eight years helping acquire and explore Dalrymple’s properties, leading to several greenfield discoveries. In late 1994, Lindsay joined the board of Horizon Mining NL (Jindalee Lithium’s predecessor) and has been responsible for managing Jindalee Lithium since inception. Lindsay is a member of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists, the Geological Society of Australia and the Society of Economic Geologists. He is also a non-executive director of Jindalee spin-out companies Energy Metals (ASX:EME), Dynamic Metals (ASX:DYM) and Alchemy Resources (ASX:ALY).

Wayne Zekulich – Non-executive Chair

Wayne Zekulich was appointed to the board as Chair on 1 February 2024. He holds a Bachelor of Business and is a fellow of the Institute of Chartered Accountants. Zekulich is a consultant and non-executive director who has substantial experience in advising, structuring and financing transactions in the infrastructure and resources sectors. He was previously the head of Rothschild in Perth, chief financial officer of Gindalbie Metals Limited, chief development officer of Oakajee Port and Rail and a consultant to a global investment bank. Currently, he is chair of Pantoro Limited (ASX:PNR) and non-executive director of the Western Australian Treasury Corporation. In the not-for-profit sector, he is the past chair of the Lester Prize and is a mentor in the Kilfinan program.

Darren Wates – Non-executive Director

Darren Wates is a corporate lawyer with over 23 years of experience in equity capital markets, mergers and acquisitions, resources, project acquisitions/divestments and corporate governance gained through private practice and in-house roles in Western Australia. Wates is the founder and principal of Corpex Legal, a Perth-based legal practice providing corporate, commercial and resources related legal services, primarily to small and mid-cap ASX listed companies. In this role, he has provided consulting general counsel services to ASX listed company Neometals (ASX:NMT) since 2016, having previously been employed as legal counsel of Neometals. Wates holds Bachelor’s degrees in Law and Commerce and a Graduate Diploma in Applied Finance and Investment.

Paul Brown – Non-executive Director

Paul Brown has over 23 years of experience in the mining industry, most recently with Mineral Resources (ASX:MIN) where he was chief executive – lithium, and chief executive – commodities. Brown has held senior operating roles with Leighton, HWE and Fortescue (ASX:FMG) and has a strong track record in technical leadership, project/studies management, and mine planning and management. Brown is currently CEO of Hastings Technology Metals (ASX:HAS). He holds a Master in Mine Engineering.

Brett Marsh – VP Geology and Development (US)

Brett Marsh is an AIPG certified professional geologist and a registered member of the Society for Mining, Metallurgy and Exploration (SME) with over 25 years of diverse mining and geological experience. He has worked for and held senior leadership roles for Kastan Mining, Luna Gold, Kiska Metals, Newmont, Freeport-McMoRan, Phelps Dodge, ASARCO and consulted to deliver numerous NI 43-101 technical reports. Marsh has demonstrated the ability to deliver results in culturally diverse and geographically difficult environments, such as Brazil, Peru, Chile, Democratic Republic of Congo, Ghana, Tanzania, Indonesia, Australia, and has also worked in remote areas of Alaska. He has managed all phases of the mining lifecycle including greenfield and brownfield exploration, project development (including preliminary economic assessments, pre-feasibility and feasibility), project construction, mine operations, and environmental. He successfully led multi-cultural teams to develop business processes and implementation plans for many mine development and operational projects.

Carly Terzanidis – Company Secretary

Carly Terzanidis has 20 years of prior experience in the financial services industry, having been employed by Euroz Hartleys, DJ Carmichael and Shaw and Partners. Terzanidis’ recent experience has been in corporate services and in the role of company secretary for resources-focused entities. Terzanidis acts as company secretary for Alchemy Resources (ASX:ALY), Kalamazoo Resources (ASX:KZR) and Viridis Mining and Minerals (ASX:VMM). Terzanidis holds a Bachelor of Commerce with majors in Accounting and Corporate Administration and a Graduate Diploma in Applied Corporate Governance.

This post appeared first on investingnews.com

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Economy

NVIDIA Corporation (NASDAQ:NVDA) shares fell roughly 3%

Economy 2 Mins Read

NVIDIA Corporation (NASDAQ: NVDA) reported strong fiscal Q3 results that exceeded Wall Street estimates but provided Q4 guidance that fell short of heightened investor expectations. Shares dropped approximately 3% in premarket trading following the announcement.

For Q3, NVIDIA posted earnings per share (EPS) of $0.81 on revenue of $35.1 billion, surpassing analyst expectations of $0.75 EPS on $33.09 billion revenue. A key driver was the data center segment, which generated $30.8 billion, marking a 17% sequential increase and a remarkable 112% year-over-year growth, beating forecasts of $28.84 billion.

Looking to Q4, NVIDIA projects revenue of $37.5 billion, plus or minus 2%, slightly above consensus estimates of $37.09 billion. Gross margins are anticipated at 73.0%, signaling robust profitability despite modest guidance.

Analysts expressed mixed views. Bank of America highlighted near-term investor caution due to subdued excitement but reaffirmed confidence in NVIDIA’s long-term growth potential, emphasizing its leadership in transitioning legacy infrastructure to AI-accelerated systems. Piper Sandler echoed optimism, noting that the company remains well-positioned for significant growth starting in April.

In summary, NVIDIA’s solid fundamentals and leadership in AI position it as a long-term winner, though near-term volatility may persist as investors digest its tempered Q4 outlook.

Nvidia Stock Chart Analysis

This chart displays NVIDIA Corporation’s (NVDA) stock performance on a 15-minute timeframe. The current price is $145.86, reflecting a slight increase of +0.33% during the day. The chart features candlestick patterns, showing the stock’s price movements, with highs and lows clearly marked.

The RSI (Relative Strength Index) indicator at the bottom reveals momentum dynamics. It’s hovering near 60.05, which suggests moderate bullish momentum, moving away from neutral levels. The RSI isn’t overbought yet (above 70), indicating room for further upward movement.

Recent trading action shows a recovery from a low of $137.15, with the price approaching previous resistance around $146.16. If this level breaks, it might signal a continued uptrend; otherwise, a pullback could occur. Traders should monitor the $144.76 support zone and $149.77 resistance for further signals.

Overall, NVDA’s short-term trend appears cautiously bullish, supported by improving RSI momentum.

The post NVIDIA Corporation (NASDAQ:NVDA) shares fell roughly 3% appeared first on FinanceBrokerage.

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Economy

Starbucks Stock: Exploring Partnerships in China

Economy 3 Mins Read

Starbucks Corporation (NASDAQ: SBUX) is exploring strategic partnerships for its Chinese operations amid declining demand in major markets, including the U.S. and China. The company confirmed on Thursday that it is assessing options, following a Bloomberg report suggesting Starbucks might sell a stake in its Chinese business to local investors, such as private equity firms.

CEO Brian Niccol has emphasized the importance of understanding and adapting to the competitive Chinese market, where the coffee giant faces challenges from local players like Luckin Coffee (OTC: LKNCY). Consumer spending remains subdued in China due to a sluggish macroeconomic environment, making growth in the region more difficult. On the October 31 earnings call, Niccol acknowledged the “extreme” competition and reiterated Starbucks’ commitment to exploring partnerships to drive long-term growth.

Despite the challenges, Starbucks reaffirmed its dedication to expanding its presence in China, its second-largest market. The company is simultaneously revamping its U.S. stores and strengthening its global strategy to address shifting consumer preferences and intensifying competition.

Investors should closely monitor developments regarding potential partnerships in China, as they could impact Starbucks’ long-term growth strategy and market positioning. While near-term headwinds remain, strategic moves in this critical market could unlock future growth opportunities.

Starbucks Stock Chart Analysis

The chart displays the 15-minute price movements of Starbucks Corporation (NASDAQ: SBUX). Currently, the stock is trading at $98.26, reflecting a minor increase of 0.02% during the session. The candlestick patterns highlight periods of volatility, with the recent recovery from a low of $94.79 demonstrating a bounce back in price momentum.

The RSI (Relative Strength Index) indicator at the bottom suggests improving bullish momentum, currently at 61.68. This level indicates the stock is neither overbought nor oversold, with room for further upside. The recovery in RSI from previous lower levels (near 41.95) supports the possibility of continued bullish activity in the short term.

Key resistance is evident at $101.41, the recent high, and a break above this level could signal the potential for further upward movement. On the downside, support at $94.79 serves as a critical level to monitor, as a breach below this may indicate renewed selling pressure.

In summary, Starbucks stock shows signs of stabilization and moderate bullish sentiment, with the price attempting to push higher. Traders should watch for resistance at $101.41 and support at $94.79 to assess the stock’s next directional move. Improving RSI levels further reinforces short-term bullishness.

The post Starbucks Stock: Exploring Partnerships in China appeared first on FinanceBrokerage.

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Business

McDonald’s preparing a 2025 ‘McValue’ offering

Business 3 Mins Read

McDonald’s is preparing 2025 value offerings in a bid to hang onto customers who are fed up with high costs at restaurants.

The company is working on a new “McValue” approach for next year that involves keeping the $5 value meal offer it launched this summer on the menu for the first half of the year, along with introducing a “buy one add one” option for $1 more, CNBC has learned. The “buy one add one” offer includes a double cheeseburger; McChicken sandwich; 6 piece chicken nuggets and small fry; or breakfast options of a Sausage McMuffin, sausage biscuit or sausage burrito and a hash brown, according to a person familiar with the matter.

Local value offerings have been on menus across the country and in the app as of late, including 10 piece nuggets for $1, among other deals, as a part of the broader value strategy.

While operators are still voting on the 2025 value offerings, the initiative looks likely to pass, two people familiar with the matter said. McDonald’s declined to comment.

In its most recent quarter, McDonald’s reported earnings and revenue that topped expectations, but saw its same-store sales fall globally by 1.5%. Sales rose 0.3% in the U.S., slightly weaker than anticipated by analysts.

On the earnings call, executives said they were working to solidify a 2025 value platform to launch in the first quarter of the year.

“You need, at the foundation, to have a strong value proposition. And that’s been the focus for us in a number of our markets, either strengthening, adding to, adjusting our value programs so we have that good foundation,” CEO Chris Kempczinski said on a call with analysts.

“You need to then overlay on top of that food news that can excite the customer, and you have to have great marketing behind it. And when you do that with news and great marketing, you can get strong full margin check that goes along with some of those value programs,” he said.

But a recent outbreak of E. coli tied to McDonald’s slivered onions dented traffic in October, executives said, which will fall into the fourth-quarter earnings cycle.

The fast-food giant will invest more than $100 million to boost restaurant sales and speed up the recovery at affected franchisees, CNBC reported Friday.

Of that total, $65 million will be invested into supporting owners who have lost business, targeting those in the hardest-hit states. Approximately $35 million will be invested in traffic-driving programs, including marketing efforts, according to a memo to owners and employees viewed by CNBC. 

This post appeared first on NBC NEWS

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Business

India’s 2nd-wealthiest person charged by U.S. in $250 million bribery scheme

Business 3 Mins Read

U.S. prosecutors have charged Gautam Adani, India’s second-richest person, with fraud over accusations that he and several alleged co-conspirators sought to pay $250 million in bribes to Indian officials.

The U.S. attorney’s office in Brooklyn, New York, accused the executives, most of them Indian, on Wednesday of obtaining funds from investors in the U.S. and other international lenders “on the basis of false and misleading statements” while, authorities say, they bribed Indian officials as they sought billions in solar power contracts.

“The defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars,” U.S. Attorney Breon Peace said in a release accompanying the indictment. The defendants then “lied about the bribery scheme as they sought to raise capital from U.S. and international investors,” Peace said.

The scheme, according to prosecutors, occurred from 2020 to this year.

Sagar Adani, Adani’s nephew, is also named as a defendant. The Securities and Exchange Commission separately announced charges of civil fraud Wednesday.

Gautam Adani, 62, who is worth about $70 billion, according to Forbes, heads Adani Group, an industrial conglomerate that holds stakes in logistics and energy units. Adani Group itself is not named in the indictment, which refers to an unnamed “Indian renewable-energy company” that was “a portfolio company of an Indian conglomerate.”

The SEC complaint, meanwhile, directly names Adani Green Energy Ltd., a unit of Adani Group.

In a statement on Thursday, Adani Group denied the allegations, calling them “baseless.”

“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations,” a spokesperson said in a statement. “We assure our stakeholders, partners and employees that we are a law-abiding organization, fully compliant with all laws.”

The news sent shares of Adani Group companies plunging in India on Thursday, CNBC reported. Its flagship Adani Enterprises fell 23%, while Adani Energy fell 20%. Adani Green Energy, the company at the center of the bribery allegations, was down 18.95%.

Adani Green Energy also canceled plans to sell $600 million in U.S. dollar-denominated bonds.

India’s opposition party has accused Adani of benefiting from his strong ties to Indian Prime Minister Narendra Modi.

“We know that there is going to be no government institution that is going to help put Mr. Adani where he belongs,” Rahul Gandhi, leader of the Indian National Congress, said Thursday. “We know that because the entire government is controlled by the prime minister.”

Last year, a prominent U.S. short-seller, or a firm that bets on the price of another company’s stock to fall, accused Adani Group of fraud, highlighting alleged discrepancies in its official filings.

The findings from the short-seller, Hindenburg Research, caused Adani Group shares to tumble — but they ended up recovering following a favorable ruling related to the allegations by India’s Supreme Court.

Modi never commented publicly on the Hindenburg allegations.

“Since releasing our January 2023 report identifying Adani as the largest corporate con in history, we have never wavered in our view,” Hindenburg said in an emailed statement on Wednesday, “nor has Adani ever refuted our findings.”

This post appeared first on NBC NEWS

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Stock

Sector Rotation Suggests Offense Over Defense

Stock 4 Mins Read

Institutional investors tend to focus heavily on relative strength; after all, this is essentially how they are evaluated in their performance as money managers! In this article, let’s review three ways to analyze relative strength and what these charts are telling us about sector rotation as we progress through Q4.

Relative Strength Trends Show Clear Winners in Q4

I like to group the 11 S&P 500 sectors into three important buckets based on their general tendencies: growth sectors, value sectors, and defensive sectors. Let’s focus in on the relative performance of the value sectors, with each line representing the ratio of the sector ETF vs. the S&P 500 ETF (SPY).

Two of these four sectors stand out as strengthening in the month of November, specifically the financial and energy sectors. Both of these sectors are expected to benefit from a Trump administration. Banks, it’s assumed, will be facing less regulatory pressure and also a steepening yield curve. For energy, it’s the assumption that with less support for renewable energy policies, oil and gas companies could stand to thrive going forward.

As my friend and fellow StockCharts commentator Tom Bowley once explained, “If you want to outperform the S&P 500, you need to own things that are outperforming the S&P 500.” So, by focusing on sectors that are showing stronger relative strength, we have the opportunity to outperform our passive benchmarks.

Offense vs. Defense Ratio Still Favoring Offense

I also love to use ratio analysis to compare sectors to each other, as we can then start to infer what big institutions are doing with their capital as they rotate between the 11 economic sectors. Let’s look at one of my favorite ratios, which I call the “offense vs. defense” ratio.

The top panel is the ratio of Consumer Discretionary (XLY) versus Consumer Staples (XLP), while the bottom panel uses equal-weighted ETFs for those same sectors (RSPD and RSPS). This analysis was inspired from conversations years ago with Bill Doane, my Fidelity predecessor who ran the Technical Research team in the 1970s. We are basically comparing “things you want” vs. “things you need”, with the idea that, when conditions are good, consumers tend to spend more money on discretionary purchases.

We can see in this chart that offense has been outperforming defense fairly consistently since early August. And if there’s one thing I’ve learned in 24 years of analyzing charts, it’s to assume that a trend is continuing until it doesn’t! So this chart certainly suggests broad market strength going into year-end 2024.

Relative Rotation Graph Indicates Resurgence in Key Sectors

No discussion of sector rotation would be complete without a nod to the GOAT of visualizing sector rotation, Julius de Kempenaer. His RRG charts have been an essential part of my toolkit for many years, and I’m thrilled that we now have an upgraded version on the StockCharts platform with which to continue our analysis.

I’ve highlighted the two consumer sectors, which we can see support our earlier comments on offense over defense.  The XLY is trending up and to the right in the Leading quadrant, and the XLP is moving down and to the left within the Lagging quadrant.

I’ve also selected one other comparison, which is one I’ll be watching closely as we head into 2025. Technology, driven by the strength of software and semiconductors, is currently in the Improving quadrant. Utilities, which has traditionally been considered as a defensive sector, sits in the Weakening quadrant.

If and when these relative trends would begin to reverse, that could and will indicate more defensive positioning than we’ve seen at all in 2024. But until and unless we see that sort of defensive rotation, my sector analysis tells me this market is poised for further strength.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Be ALERT for Warning Signs – S&P 500 Downturn

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In this exclusive StockCharts video, Joe goes into detail on the S&P 500 ETF (SPY), sharing why using MACD and ADX together can be beneficial — especially in the current environment. He touches on Sentiment, Volatility and Momentum, pointing to reasons why we need to be on alert at this time for signs of a downturn. Joe covers the QQQ and IWM since both are at critical levels right now. Finally, he goes through the symbol requests that came through this week, including AMZN, CVNA, and more.

This video was originally published on November 20, 2024. Click this link to watch on StockCharts TV.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

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Is the USD Setting Up for a Perfect Rally?

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After the election, things have hardly settled in the world. New developments in the Ukraine-Russian conflict and the Middle East are still volatile. Worst of all, I am in Redmond, WA this week, where last night’s storm caused a massive power outage in this region.

Needless to say, producing electronic content is a challenge at the moment

But I found a small pocket where things seem to operate decently, so I’ll give it a try.

When market conditions become cloudy, I always like to step back and zoom out to see the big picture.

Weekly Asset Class Rotation

Using Relative Rotation Graphs, I do that, bringing up an RRG for asset classes as plotted at the top of this article. This is a weekly RRG, and the rotations seem pretty straightforward. (Note: I have left out BTC as it is powering way up into the leading quadrant and living a life of its own.) Stocks are the only asset class inside the leading quadrant, and they are on a decent RRG-Heading, suggesting that more relative strength lies ahead.

On the opposite trajectory, we find the three fixed-income-related asset classes in this universe: government bonds, Corporate bonds, and High-Yield bonds. All three are traveling on a southwestern heading and are moving deeper into the lagging quadrant. This suggests further relative weakness for this group in the coming weeks.

We find commodity ETFs and the Dollar Index inside the improving quadrant. DJP and GSG are in the improving quadrant while still in the middle of their respective trading ranges, both in price and relative.

The Dollar index, on the other hand, is interesting, having reached the top of a broad trading range after a significant rally that started at the bottom of that range back in September. It is now pushing against heavy overhead resistance.

Zooming in on the Daily Timeframe

Things are getting more interesting when I zoom in on the daily timeframe. This RRG is plotted above.

A few observations in combination with the rotations as seen on the weekly version. In the daily timeframe, stocks also head deeper into the leading quadrant on a strong RRG heading. This happens after a leading-weakening-leading rotation, which means it is a reasonably reliable start for a new up-leg in the already established relative uptrend. Conversely, the fixed-income asset classes confirm their weaker rotation back into the lagging quadrant after a lagging-improving-lagging rotation.

Overall, the preference for stocks over bonds is firmly shown based on RRG. Commodities are heading further into the lagging quadrant on this daily RRG, which tells me that the positive rotation on a weekly basis might be slowing down soon.

$USD Close to Breaking from Broad Range

This leaves $USD with an interesting rotation. The long tail traveling upward inside the improving quadrant on the weekly is getting support from the leading-weakening-leading rotation that is developing on the daily RRG.

On the price chart, $USD is very close to overhead resistance, and, with its current strength, there is a fair chance of breaking it upward. When that happens, $USD looks set for a strong follow-through that could reach the levels of the previous highs around 114. This target can be calculated by adding the range’s height, around 7 points, to the breakout level, around 107.

Stocks vs. Bonds

SPY continues to make higher highs and lower lows, confirming its uptrend even though negative divergence is still present and weaker breadth data (not shown here). However, at the end of the day, you can only trade SPY.

There was a nice rally in bonds, pushing yields down, but the decline of the 23.50 highs seems to be breaking the rising trendline.

The primary relative trend for GOVT vs. VBINX has been down for a long time, and the recent uptick seems to have ended, once again with a high for the JdK RS-Ratio line below 100, resulting in another lagging-improving-lagging rotation, the fifth since late 2022. So far, the rise in yields has not been damaging to stocks, and as a result, the stock-bond ratio has again accelerated in favor of stocks.

Overall, the preference for stocks over bonds continues while $USD seems to be setting up for a perfect rally!!

#StayAlert –Julius

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AppLovin’s 1,303% Rise: The Hidden Power of the SCTR Report

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How do you find the next big stock before it gains the investing public’s attention?

It’s tricky, but there are only two ways to spot a so-called “hot stock” before the social buzz. One is to scour financial reports and forum chatter to see what Wall Street insiders might be looking at before the general public catches. Another is to use various scans to trace the smart money’s tracks before the news gets out.

Alternatively, you could do both.

(As far as the latter—scanning for stocks exhibiting technical strength—perhaps it’s something you should be doing daily, as you have plenty of tools to scan every sector and stock on the market rapidly.)

Tuesday’s Scan After the Close

On Tuesday, I did an after-market scan to prepare for the following day’s trading session. Pulling up the StockCharts Sample Scan Library from the Charts & Tools menu, I ran a scan for New 52-week Highs and categorized the Symbols by the StockChartsTechnicalRank (SCTR) score.

FIGURE 1. NEW 52-WEEK HIGHS SCAN RESULTS. AppLovin is at the top when sorted by SCTR scores.Image source: StockCharts.com. For educational purposes.

The mobile marketing tech company AppLovin (APP) had the highest SCTR score and a new 52-week high. I realized that APP was also on the SCTR Top 10 report, which is visible on the SCTR Reports Dashboard panel.

FIGURE 2. SCTR REPORT TOP 10 LIST. APP been on this list for a while but its move to the top position is worth noting.Image source: StockCharts.com. For educational purposes.

If you’ve been following the SCTR Reports from time to time, you might have noticed that APP has been occupying the top 10 list for quite some time. APP, though not the most popular stock (perhaps until now), has been abuzz among institutional and tech investors for quite some time. It makes you wonder what other scans APP might have shown up on.

In the Symbol Summary tool, here’s what came up Tuesday afternoon.

FIGURE 3. LIST OF SCANS ON SYMBOL SUMMARY THAT INCLUDED APP. It’s time to do a deeper dive.Image source: StockCharts.com. For educational purposes.

At the least, APP’s appearance on several scans tells you it’s time to do a deeper top-down dive on the stock. Let’s start with a weekly chart to get a big-picture view of APP’s price history.

FIGURE 4. WEEKLY CHART OF APP. The stock price had a parabolic upside move.Chart source: StockCharts.com. For educational purposes.

That’s a jaw-dropping 1,303% jump (see percent line measurement in the chart). And it begs two questions: Were there early signs to get into the stock when APP was just at $30, and is it now just a FOMO trade, or is there still room for growth?

Starting with the first question, the earliest technical indication was in May 2023 (see blue dotted vertical line) when two things coincided (green circles highlight each event):

  • The Chaikin Money Flow (CMF) broke through the zero line, indicating that buyers controlled the market.
  • The SCTR line shot up to around 99, well above the bullish 90 line.

At this point, you’re probably wondering if there’s still room for APP valuations to grow or if it’s now just a FOMO trade. Here, we’ll shift to a daily chart of APP to take a closer look.

FIGURE 5. DAILY CHART OF APP. There are multiple levels of support for the looming pullback.Chart source: StockCharts.com. For educational purposes.

APP’s runaway gap followed a stellar earnings report. The divergence between the CMF and the On Balance Volume (OBV) lines shows a potential decrease in institutional buying (represented by the CMF) versus retail FOMO (using OBV as a proxy). The Relative Strength Index (RSI) is clearly in overbought territory, but APP’s price action also shows how the RSI can sustain extreme levels for an extended period of time.

In the daily chart, three indicators show potential convergence at support levels. The Ichimoku Cloud provides a dynamic support range that shifts with price action, aligning with the quadrant lines, especially the third quadrant just below the 50% retracement. Keep in mind that the second and third quadrants typically signal bullish levels during a pullback. Lastly, notice the Bollinger Bands, where the middle band also falls within the third quadrant.

If APP starts pulling back, as it seems likely, and you’re bullish on the stock, watch these levels closely. How the price reacts at these points can guide you in making a more informed decision about when to take action.

At the Close

The steps to spotting a potential breakout stock like AppLovin highlight the importance of analysis using differentiated tools to uncover hidden opportunities. From initial scans to spot technical strength to deep dives using SCTR rankings and Symbol Summary insights, the journey of discovery relies on methodical steps. Whether you’re looking to catch the next big move or planning entry points during a pullback, the takeaway is clear: consistent, multi-layered scanning and analysis is the key to finding market gems early on.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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