Gold in the Abitibi: Cartier Resources Chimo Mine Project
Cartier Resources (TSX-V: ECR) is deploying the right strategy in the right region, with the right backers to find gold faster at a lower cost.
Proven Endowment: The Abitibi Greenstone Belt
There are many prolific past-producing gold districts in Canada, but the Abitibi is one of the largest and best understood gold-bearing regions with readily available exploration infrastructure.
This region extends from Wawa in Northwestern Ontario to the east near Val-d’Or Quebec – a landscape that hosts some of the most productive gold mines in Canada.
The company’s Chimo gold mine project located in the historic Abitibi Greenstone belt of Quebec builds on a legacy of gold production with a project ready for investors.
The best place to find gold is where companies discovered and mined it in the past. Between 1964 and 1997, three companies produced 379,012 ounces of gold at the Chimo Mine property.
This type of strategy is known as brownfield exploration. Brownfield exploration looks for gold in areas known to host gold mineralization. It offers investors less risk, reducing the amount of uncertainties a company faces.
Ounces in the Ground: 2019 Resource Estimate
The company delivered within three years its first-ever resource estimate and proved the value its Chimo Mine Project. In November 2019, Cartier published its first mineral resource estimate of the central gold corridor on the Chimo mine property:
Measured Resources: 481,280 ounces of gold
Inferred Resources: 417,250 ounces of gold
Cartier has proven a resource in one third of the Chimo property, and there is the north and south gold corridor which it is currently drilling.
Cartier Resources has built on the foundations of a proven past producer with a new resource estimate, to put the Chimo Mine project back on the Abitibi gold map.
RiskGrade: A More Intuitive Way to Calculate Investment Risk
RiskGrade allows for apples-to-apples comparisons of investment risk. For example, GameStop was 2.5 times more risky than global equities.
A More Intuitive Way to Calculate Investment Risk
What crucial factors come into play when choosing investments?
At a high level, there’s two sides to the equation: return and risk. While potential profit is important, the volatility or risk of those profits also plays a critical role. In this graphic from MSCI we introduce the RiskGrade™ metric, a more intuitive way of calculating investment risk.
What is RiskGrade™?
One way of measuring investment risk is through volatility. Low risk investments have a smaller range of price movements relative to their historical average, meaning they have less volatility. On the flip side, high risk investments have a larger range of price movements. This means their returns—both gains and losses—can differ substantially from the historical average.
Traditionally, this volatility is measured through standard deviation. However, standard deviation can be difficult for investors to interpret as it has no intuitive reference point. Enter RiskGrade: a score-based measure of volatility that uses a transparent methodology.
- Volatility is calculated by measuring the change in investment price over time.
- A scaling factor is applied to standardize scores.
In the second step, 100 is equivalent to a 20% standard deviation, which is the average long-term volatility of global equities. Cash would have a RiskGrade of 0, whereas a technology IPO may have a RiskGrade that exceeds 1,000. It should be noted that RiskGrade only captures risk from a market price perspective, and does not consider inflation risk.
Investment Risk Over the Last Decade
To get a better idea of how this works, let’s take a look at the RiskGrade™ of select investments over the period from 2011-2020.
|U.S. Corporate Fixed Income||25|
|60/40 Blended Portfolio||47|
|Emerging Market Equities||89|
|Small Cap Equities||93|
|Long-term Average of Global Equities||100|
Note: RiskGrades are based on gross total returns from December 31 2010 to December 31 2020. See the graphic for the specific indexes used.
U.S. corporate fixed income was the least risky of the group. A 60% global equity / 40% U.S. fixed income portfolio was a third less risky than a 100% global equity portfolio.
Meanwhile, U.S. Real Estate Investment Trusts (REITs) were less risky than emerging market equities and small cap equities.
Of the above examples, GameStop stock had the highest investment risk, with a RiskGrade more than 2.5 times higher than the long-term average for global equities.
Of course, RiskGrades are not static and change over time depending on market conditions. GameStop, which saw heightened volatility as individual investors created a short squeeze, is a strong example of the fluidity of RiskGrades. Based on 5-year intervals, the stock had a RiskGrade of 212 from 2006-2010, and a RiskGrade of 749 from 2016-March 31, 2021—a jump of over 250%.
Monitoring Investment Risk
Investors may want to consider both risk and return when selecting their investments. In comparison to traditional risk metrics, RiskGrade provides a more intuitive way for investors to gauge their risk across individual investments, asset classes, and portfolios.
With clear apples-to-apples comparisons, more investors may be able to easily understand investment risk and adjust their portfolios to suit their personal risk tolerance and goals.
Race to Net Zero: Carbon Neutral Goals by Country
Which countries have made a net zero pledge, and how strong is it? This map breaks down carbon neutral pledges.
Race to Net Zero: Carbon Neutral Goals by Country
The time to talk about net zero goals is running out, and the time to put them into action is well underway.
At the U.S. Climate Summit in April 2021, U.S. President Biden pressured countries to either speed up carbon neutral pledges, or commit to them in the first place.
It’s a follow-up to the Paris Agreement, which keeps signatories committed to reaching carbon neutrality in emissions in the second half of the 21st century. But 2050–2100 is a wide timeframe, and climate change is becoming both increasingly present and more dire.
So when are countries committed to reaching net zero carbon emissions, and how serious is their pledge? This infographic from the National Public Utilities Council highlights the world’s carbon neutral pledges.
The Timeline of Carbon Neutral Targets by Country
The first question is how quickly countries are trying to get to net zero.
137 countries have committed to carbon neutrality, as tracked by the Energy and Climate Intelligence Unit and confirmed by pledges to the Carbon Neutrality Coalition and recent policy statements by governments.
But the earlier the pledge, the better, and most of the commitments are centered around 2050.
|Antigua and Barbuda||2050|
|Central African Republic||2050|
|Democratic Republic of Congo||2050|
|Papua New Guinea||2050|
|Saint Kitts and Nevis||2050|
|Saint Vincent and the Grenadines||2050|
|Sao Tome and Principe||2050|
|Trinidad and Tobago||2050|
|Australia||2050 – 2100|
|Singapore||2050 – 2100|
As far as early achievers go, Bhutan and Suriname are the only two countries that have achieved carbon neutrality and are actually carbon negative (removing more carbon than they emit). Uruguay’s 2030 target is the earliest to try and match that feat, followed by Europe’s Finland, Austria, Iceland, Germany, and Sweden, who are all targeting 2045 or earlier.
Over 90%, or 124 of the 137 countries tracked above, set a target of 2050 for reaching carbon neutrality. This is largely due to membership in the Carbon Neutrality Coalition, which asks member states to target 2050 for their goal but leaves commitment up to them.
Only five countries have net zero pledges set for after 2050, including Australia and Singapore, which haven’t set a firm target yet. Targeting 2060, in addition to Ukraine and Kazakhstan, is the world’s largest emitter, China. The country’s recent pledge is significant, since China accounts for an estimated 25% of global emissions.
In fact, according to the Climate Action Tracker, 73% of global emissions are currently covered by net zero targets.
How Seriously Are Countries Committing to Carbon Neutrality?
Setting a goal is perhaps the easiest step towards carbon neutrality. But the real challenge is in solidifying that goal and starting to make progress towards it. That’s why it’s important to consider how deeply committed each country’s carbon neutral pledge truly is.
The most rigid commitments are enshrined in law, followed by official government policy, though the latter can change alongside governments. Likewise, proposed legislation shows forward momentum in making pledges a reality, but proposals can take a long time to become enacted (or get derailed).
As it turns out, the vast majority of carbon neutral targets are only under discussion, with no formal action being taken to act on them.
|Costa Rica||Policy Document|
|Marshall Islands||Policy Document|
|South Africa||Policy Document|
|Vatican City||Policy Document|
|European Union||Proposed Legislation|
|South Korea||Proposed Legislation|
|Antigua and Barbuda||Under Discussion|
|Burkina Faso||Under Discussion|
|Cabo Verde||Under Discussion|
|Central African Republic||Under Discussion|
|Cook Islands||Under Discussion|
|Democratic Republic of Congo||Under Discussion|
|Dominican Republic||Under Discussion|
|Papua New Guinea||Under Discussion|
|Saint Kitts and Nevis||Under Discussion|
|Saint Lucia||Under Discussion|
|Saint Vincent and the Grenadines||Under Discussion|
|Sao Tome and Principe||Under Discussion|
|Sierra Leone||Under Discussion|
|Solomon Islands||Under Discussion|
|South Sudan||Under Discussion|
|Trinidad and Tobago||Under Discussion|
Uruguay’s 2030 target might be the earliest, but it is not yet set in stone. The earliest commitment actually enshrined in law is Sweden’s 2045 target.
Including Sweden, only six countries have passed their carbon neutral targets into law. They include Denmark, France, Hungary, New Zealand, and the UK.
An additional five countries have proposed legislation in the works, including Canada and South Korea, as well as the entirety of the EU.
Meanwhile, 24 countries have their climate targets set as official policy. They include Brazil, China, Germany and the U.S., some of the world’s largest emitters.
99 of the 137 pledges are only under discussion at this time, or more than 72%. That means that they have no official standing as of yet, and are harder to act on. But as time starts to pass, pressure on countries to act on their carbon neutral pledges is beginning to grow.
The National Public Utilities Council is the go-to resource for all things decarbonization in the utilities industry. Learn more.
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