3 Renewable Energy Stocks Aligning Shareholder Values Amidst BAC Environmental Backlash

Two years ago, The New York Times disclosed Bank of America’s (BAC) decision to cease financing coal mines, coal-burning power plants, and Arctic drilling projects due to environmental concerns. However, the bank has now reversed its stance, subjecting such projects to “enhanced due diligence” in its latest environmental and social-risk policy.

Amid mounting Republican opposition to corporate consideration of environmental and social factors, Texas and West Virginia have introduced financial regulations to resist denying banking services to fossil fuel companies. In New Hampshire, legislators aim to outlaw ESG (environmental, social, and governance) practices in business, reflecting a broader political backlash.

In this context, coupled with global tensions in Europe and the Middle East, banks such as BAC and JPMorgan are shifting focus away from ESG principles, as evidenced by JPMorgan's retreat in its annual climate report, toward practices emphasizing energy security.

Simultaneously, the combustion of fossil fuels remains the primary driver of global warming. The United Nations warns that rising temperatures alter weather patterns and disrupt natural equilibrium, intensifying extreme weather events like hurricanes, droughts, and heatwaves, exacerbating their frequency and severity.

These shifts are already manifesting tangible impacts. In 2023, the Amazon basin faced drinking water shortages due to historically low rainfall. Catalonia, Spain, declared a state of emergency earlier this year due to the "worst drought in modern history," illustrating the immediate consequences of climate change.

Given the recent backlash against BAC's environmental stance and the urgency of climate change, it's crucial to prioritize sustainable investments and align portfolios with ecological values. The three renewable energy stocks discussed below exemplify solid environmental commitments and long-term sustainability goals.

NextEra Energy, Inc. (NEE)

NextEra Energy, Inc. (NEE), a prominent utility giant, is reshaping the renewable energy panorama with remarkable advancements in wind and solar energy production. Leveraging its subsidiary, Florida Power & Light, and substantial investments in clean energy, the company has emerged as a pivotal force driving the nation's shift towards sustainable power origins.

In 2023, NEE achieved more than 9% growth in full-year adjusted earnings per share compared to 2022. The success was attributed to robust operational and financial performance across FPL and NextEra Energy Resources, surpassing adjusted earnings expectations and consistently delivering long-term shareholder value.

Over the past decade, NEE has consistently delivered compound annual growth in adjusted EPS of approximately 10%, the highest among the top-10 power companies. In contrast, other top companies in the sector have seen an average compound annual growth in adjusted EPS of around 2% during the same period.

NEE achieved its best-ever year for new renewables and storage origination in 2023, adding approximately 9,000 megawatts to its backlog. Anticipating a substantial surge in electricity demand due to factors like artificial intelligence, electrification, and cloud capacity, CEO John Ketchum forecasts an 81% increase in electricity demand over the next five years.

Renewable generation could triple or more, reaching 370 to 450 gigawatts, to meet this demand. To meet this increasing demand, NEE has developed a system to identify suitable locations for new data centers based on solar and wind resources and transmission line access. This should bode well for the company's growth.

For fiscal 2024, NEE maintains its adjusted earnings per share expectations between $3.23 and $3.43. Projected growth for 2025 and 2026 is set at 6% to 8% based on the 2024 range, translating to $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026.

Clearway Energy, Inc. (CWEN)

Clearway Energy, Inc. (CWEN) is one of the United States’ largest renewable energy proprietors, boasting approximately 6,000 net megawatts (MW) of installed wind, solar, and energy storage projects. Among its assets are about 8,500 net MW, including roughly 2,500 net MW of environmentally friendly, highly efficient natural gas generation facilities.

The preceding year, CWEN committed around $215 million to new long-term corporate capital investments and secured new Resource Adequacy contracts at Marsh Landing and El Segundo, providing greater visibility into future growth opportunities.

In December 2023, CWEN's indirect subsidiary acquired a stake in Texas Solar Nova 1, a 252 MW operational solar venture in Kent County, Texas, for $23 million in cash. Supported by power purchase agreements with reliable counterparties, this project showcases CWEN's dedication to sustainable energy initiatives.

With total liquidity reaching $1,505 million by December 31, 2023, a $139 million increase from the previous year, CWEN demonstrated robust financial health. This was bolstered by refinancing the revolving credit facility, raising its total capacity to $700 million, and additional project-level restricted cash from growth investments.

In 2023, CWEN's Cash Available for Distribution (CAFD) landed within its revised guidance range of $330 million to $360 million, totaling $342 million. In the fourth quarter, the company achieved commercial operations on Daggett 2 and Texas Solar Nova 1, positioning itself for further CAFD growth in 2024 and beyond.

Committing approximately $215 million to new corporate capital deployments in 2023, CWEN aims for an average five-year annual CAFD yield of about 10%, diversifying its portfolio further. The company announced a 1.7% dividend increase for the quarter, targeting a 7% growth rate for 2024.

Reaffirming its CAFD guidance of $395 million for 2024, CWEN remains on track to achieve its long-term growth targets. Moreover, with a sponsor's 29-gigawatt renewable pipeline, CWEN anticipates significant asset additions to its portfolio by the mid-decade, ensuring sustained growth and delivering competitively priced energy while reducing risk.

Investors can anticipate a robust growth trajectory from CWEN's sponsor, which will translate into substantial asset augmentation for CWEN's portfolio in the coming years.

Atlantica Sustainable Infrastructure plc (AY)

Atlantica Sustainable Infrastructure plc (AY) specializes in sustainable infrastructures, focusing on renewable energy assets with a robust portfolio of 2.2 GW operating assets spread across North and South America and the EMEA region.

In March, AY finalized the acquisition of two wind assets in Scotland, marking its entry into the United Kingdom market. These assets are regulated under U.K. green attribute regulations and have a combined installed capacity of 32 MW.

AY also saw significant progress in its U.S. development team last year, with several new solar assets reaching commercial operation. Presently, the company has three fully contracted projects under construction or about to start construction in the U.S. Southwest, benefiting from the Investment Tax Credit (ITC).

The company's renewal pipeline has expanded by 12% compared to last year. On March 1, 2024, AY committed or earmarked $175 million to $220 million in new investments, predominantly allocated to solar and storage projects in the United States, representing a significant portion of its investment target.

AY expects to supplement this with additional developments and targeted acquisitions. Most of the company’s investments will be directed toward solar and storage projects already contracted in the United States, including Coso 1, Coso 2, and a new project called Overnight, alongside investments in other geographies such as South America and Europe.

Such strategic investments are poised to enhance AY's prospects significantly. In full-year 2023, AY's revenue remained stable at $1,099.9 million, with adjusted EBITDA reaching $794.9 million, showcasing a 1.7% increase from 2022. Cash available for distribution totaled $235.7 million, aligning with yearly guidance.

Looking ahead to 2024, AY anticipates adjusted EBITDA in the range of $800 million to $850 million and cash available for distribution from $220 million to $270 million, reflecting its continued growth trajectory and commitment to sustainable infrastructure development.

Bottom Line

The transition toward renewable energy is one of our time's most significant investment trends, with trillions of dollars set to be invested in decarbonizing the economy over the upcoming decades. This investment surge is expected to fuel above-average growth for companies focused on renewable energy sectors in the years ahead.

Despite natural gas maintaining its position as the primary fuel source for U.S. power generation, accounting for more than 40% of generation in the fourth quarter of 2023, most new capacity additions have been concentrated in renewable energy sources such as solar, wind, and battery storage.

Natural gas benefits from its abundant availability and low cost in the United States, while coal's contribution to generation fell to 16% in the fourth quarter of 2023, down from 19% in the same period in 2022. Renewables (excluding hydroelectricity) saw their market share increase to 16% in the fourth quarter of 2023, with solar accounting for approximately 3.5% and wind comprising 12.5% of utility-scale generation.

Further, forecasts predict wind and solar to rise to nearly 45% of generation by 2032, marking a significant increase from current levels. Much of this growth is expected to come at the expense of coal, which is forecasted to continue declining due to its high emission profile.

Investing in renewable energy stocks presents a compelling opportunity amid changing environmental landscapes and evolving market dynamics. These companies are distinguished by their strong commitments to sustainable energy initiatives and consistent financial performance.

Leading utility company NEE is at the forefront of renewable energy transformation, with substantial investments in wind and solar energy production driving the nation's transition towards sustainable energy sources. The company's consistent growth in adjusted earnings per share highlights its resilience and potential for long-term value creation.

Emerging players such as CWEN and AY are also making significant strides in renewable energy ownership, boasting diverse portfolios of wind, solar, and energy storage projects. Their strategic investments and steady cash flow generation position them for continued growth in alignment with the rising demand for renewable energy solutions.

As renewable energy stocks are expected to remain relevant amid growing efforts to combat climate change worldwide, consider adding NEE, CWEN, and AY to your portfolio now.

3 Stocks to Fall Into as 10-Year Treasury ‘Screams Buy’

is prudent to explore why UnitedHealth Group Incorporated (UNH), Costco Wholesale Corporation (COST), and NextEra Energy, Inc. (NEE) could be wise portfolio additions now. Read on…

 

The 10-year Treasury yield surpassed 4.2%, and just a few weeks earlier, it hit its highest level since 2008, indicating investors are delaying their expectations regarding potential interest rate cuts by the Fed.

BMO Capital Markets head of U.S. rates strategy Ian Lyngen regards this uptick as a compelling opportunity for investors. In his view, the 10-year Treasury bond is a "screaming buy" for investors, owing to the Fed's successful endeavors in combating inflation.

Treasury yields and the stock market traditionally display an inverse relation. Still, defensive stocks, such as healthcare, utilities, and consumer staples, defined by their necessity, remain resilient. These sectors tend to preserve their revenue streams and overall stability, notwithstanding the volatility of the market conditions.

Before delving into the fundamentals of the stocks that could be solid buys now, it is crucial to understand the larger economic forces at play.

Why 10-Year Treasury Yield Is Rising

The Federal Reserve has implemented an 11th benchmark rate increase, announcing a 25-basis-point rise in July, escalating the interest rates to a 22-year high of 5.25% to 5.5%. Despite inflation notably declining from a 9.1% peak in June 2022 to 3.2% in July 2023, it still remains above the Fed’s 2% target.

In job market, the U.S. Bureau of Labor Statistics reported an increase in August's unemployment rate to 3.8%, up from July's 3.5% and reaching the highest since February 2022. Despite this, positive signals came from average hourly earnings, which showed a 0.2% increase for the month and a year-over-year increase of 4.3%. Furthermore, the U.S. economy outstripped forecasts with 187,000 new jobs.

In addition, American consumer spending showcased resilience, with sales at U.S. retailers picking up 0.7% month-over-month in July. Retail sales grew 3.2% year-over-year. Private consumption, which makes up nearly 70% of the U.S. GDP, remains strong, bolstered by sustained low unemployment and solid wage growth.

Some analysts had mooted that the Fed's rate hike spree might end. However, recent robust economic data have cast doubt on these assumptions, and uncertainty about its future monetary policy continues. Officials expressed concern in minutes from the Fed's July meeting that further rate increases could be a necessity due to the potential for persistent price rises.

As is generally understood, bond yields and bond prices follow an inverse relationship. Therefore, as interest rates increase, current bond prices tend to fall, consequently raising yields.

Respected market analyst Ed Yardeni predicts the 10-year Treasury yield could further escalate, spurred by increasing anxieties over the U.S. debt levels. He speculates that this yield could exceed 4.5% this year, potentially triggering a sell-off in the S&P 500 of up to 10%.

Why Are Treasury Securities Screaming Buys Now?

The government backs Treasury securities. Historically, the U.S. has always paid its debts, which helps to ensure that Treasurys are the lowest-risk investments one can own. 10-year Treasury bonds make interest payments every six months.

The market for U.S. Treasurys is the largest, most liquid market in the world, making them easy to sell if one needs access to their cash before the maturity date.

Chase Lawson, author of ‘Financial Freedom: Breaking the Chains to Independence and Creating Massive Wealth,’ believes that there’s consistent income potential with Treasury bonds, and one’s investment likely would not decline if the stock market tanks, like other investment vehicles, can do.

Since interest rates could remain high for a while, the 10-year treasury yield is anticipated to maintain momentum.

Stocks That Could Perform Well Even When Treasury Yields Are Rising…

High bond yields might potentially signal warning signs for stocks. Bonds compete for the same investor dollars as equities, and when yields surge, equities often go down. This trend arises because bonds, especially those with higher yields than stocks, usually become more attractive. Furthermore, while stocks carry inherent risk, bonds offer a safer option.

When the 10-year Treasury bond yield is strong, investing in stocks less influenced by interest rates is typically wise. Enterprises involved in utilities, consumer staples, and healthcare sectors tend to present stable earnings and cash flows and are less vulnerable to interest rate fluctuations.

Defensive stocks provide stable earnings and consistent returns, even amid an economic downturn. These stocks are nearly always in demand because they provide essential products and services.

Below, we look into the fundamentals of three stocks worth considering under current market conditions:

UnitedHealth Group Incorporated (UNH)

The U.S. ranks among the nations with the highest healthcare expenses globally. Compounded by the fact that these costs are increasing at a rate that exceeds inflation, health insurance has transitioned from an optional safeguard to a fundamental necessity.

With a robust market capitalization of $443.40 billion, the Minnesota-based health insurer UNH operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

The corporation reigns as the largest healthcare company in the United States, eclipsing even the biggest banks in the country. Its substantial stature is deemed a bellwether within the extensive health insurance sector. The company's robust performance stems from the contributions of two major business units, UnitedHealthcare and Optum.

These entities continually endeavor to deliver patient-centric healthcare services at reasonable prices across numerous American communities and follow a strategic alliance with reputable care systems.

UNH recently announced a dividend payout of $1.88 per share, payable on September 19, maintaining its commitment to stockholder returns.

UNH’s revenue grew at 12% and 10.3% CAGRs over the past three and five years, respectively. The company’s EBITDA and net income rose at CAGRs of 7.9% and 7.3%, respectively.

For the second quarter that ended June 30, 2023, the healthcare giant saw $92.90 billion in revenue, a 15.6% surge. This escalation was chiefly driven by double-digit expansions within its insurance division and Optum Health Services wing. Its earnings from operations rose 13% from the year-ago value to $8.06 billion.

Moreover, adjusted net earnings attributable to UNH common shareholders grew 9.1% year-over-year to $5.77 billion, whereas adjusted EPS increased 10.2% from the prior year’s quarter to $6.14, topping analyst expectations of $5.99.

Year-to-date, the total number of people served by UnitedHealthcare with medical benefits has increased by over 1.1 million. Growth across the company’s commercial benefit offerings indicated the corporation's emphasis on innovative and reasonably priced benefit plans.

Meanwhile, the number of people catered to by the company's senior and community offerings grew by 625,000 due to product and benefit customizations to meet the unique needs of the aging population and economically disadvantaged individuals.

UNH’s robust financial health and fundamental solidity make it an appealing investment opportunity for institutional investors. Notably, several institutions have recently changed their UNH stock holdings.

Institutions hold roughly 87.3% of UNH shares. Of the 3,307 institutional holders, 1,623 have increased their positions in the stock. Moreover, 155 institutions have taken new positions (1,445,591 shares).

Costco Wholesale Corporation (COST)

With a market cap of $241.18 billion, COST, the prominent warehouse club operator, continues to exhibit strong performance driven by strategic growth plans, optimized pricing policies, and substantial membership trends. These elements have been instrumental in bolstering the solid sales figures for the company.

COST’s revenue grew at 13.5% and 11% CAGRs over the past three and five years, respectively. The company’s EBITDA and net income rose at CAGRs of 15.8% and 17.4%, respectively.

Sales momentum continued through August, with net sales showcasing a 5% year-over-year increase to $18.42 billion for the retail month, an impressive follow-up to the 4.5% enhancement witnessed in July.

As the U.S. observed Labor Day, budget-minded shoppers looked forward to making the most of the annual sales. COST had put forth Labor Day promotions on an array of products, a move likely to boost the company’s sales figures further.

COST's business model of leveraging economies of scale and maintaining low-profit margins creates a virtuous cycle that perpetuates customer loyalty and fosters a competitive edge. This deliberate choice of prioritizing customer satisfaction over immediate profits has proven fruitful, significantly contributing to customer retention and repeat business–crucial elements in today’s highly competitive retail industry.

The catalysts driving COST's growth include its ongoing global expansion and remarkable renewal rates. The company continues to amplify shareholder value with shareholder-friendly management, reliable dividend payouts, and efficient capital reinvestments.

Its unique membership business model and pricing power distinguish it from its traditional counterparts. As of the third quarter of 2023, it revealed an encouraging 92.6% renewal rate within the U.S. and Canada, which testifies to robust customer loyalty levels and satisfaction.

The impressive renewal rate guarantees consistent revenue flow from membership fees, increases customer lifetime value, and enhances overall profitability. As the quarter concluded, COST reported having 69.1 million paid household members and 124.7 million cardholders.

Changes have been observed concerning institutions' holdings of COST shares. Approximately 68.1% of COST shares are presently held by institutions. Of the 3,168 institutional holders, 1,456 have increased their positions in the stock. Moreover, 212 institutions have taken new positions (1,307,195 shares), reflecting confidence in the company’s trajectory.

NextEra Energy, Inc. (NEE)

With a market cap of $135.33 billion, NEE stands as a leading utilities provider in the industry. The company focuses on generating renewable, clean, and sustainable power, serving millions of customers across North America.

Highlighted by its robust historical performance, NEE has presented a compelling case for investor interest with consistent, long-term dividend growth that offers shareholders stability and income. Particularly noteworthy is the company's anticipation to increase its dividend per share by approximately 10% annually through 2024, based on dividends from 2022. This strategy confirms confidence in potential cash-flow growth that supports these higher dividends.

NEE's impressive financial figures testify to its efficient management and ability to maintain regular profit generation even in a highly competitive sector. The growing earnings base allows it to return significant cash to its shareholders.

NEE’s revenue grew at 13.5% and 11% CAGRs over the past three and five years, respectively. The company’s EBITDA and net income rose at CAGRs of 15.8% and 17.4%, respectively.

For the fiscal second quarter that ended June 30, 2023, the company’s operating revenues stood at $7.35 billion for the quarter, up 41.8% year-over-year, exceeding analyst projections. Its adjusted earnings per share stood at $0.88, up 8.6% year-over-year.

NEE's long-term financial expectations remain unchanged. For 2023 and 2024, it expects adjusted EPS to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively. For 2025 and 2026, adjusted EPS is expected to come between $3.45 to $3.70 and $3.63 to $4.00, respectively.

As a result of its dedication to environmental sustainability and consistent shareholder value creation, NEE has captured the attention of investors and market analysts. Ownership data indicates institutional holders have a significant interest in NEE, accounting for approximately 77.7% of NEE shares. Of the 2,557 institutional holders, 1,206 have increased their positions in the stock. Moreover, 134 institutions have taken new positions (5,266,359 shares), reflecting confidence in the company’s trajectory.

Conclusion

In conclusion, the U.S. stock market seems to have a strong foundation of sturdy economic growth and investor credibility in defensive equities, particularly those offering dividends, as a safeguard against inflation. Even though rising bond yields could potentially destabilize specific sectors, stocks less sensitive to interest rate variations and displaying consistent earnings and cash flow are optimally positioned to yield substantial returns.

Was Debt-Ceiling Standoff a Concern? Not for These Stocks

“The hardest thing when studying history is that you know how the story ends, which makes it impossible to put yourself in people’s shoes and imagine what they were thinking or feeling in the past.” — Morgan Housel.

We can count ourselves fortunate to be blessed with the benefit of hindsight before it was due. While the U.S. Treasury was set to exhaust its ‘extraordinary measures’ to manage the national debt as early as the revised deadline of June 5, calmer and more rational heads prevailed in Washington D.C., albeit at the eleventh hour.

President Joe Biden and House Speaker Kevin McCarthy agreed to suspend the current $31.4 trillion statutory debt ceiling until January 1, 2025, in exchange for discretionary spending caps for six years, conditional on the approval of Congress.

While fractiousness, delays, and hiccups are still expected in the legislature amid some opposition from Republican Freedom Caucus and progressives in the Democratic Party, it seems highly likely that we will be out of the woods by the end of this week and manage to sweep the mushrooming national debt under the rug once again.

However, we imagine a scenario in which the responsibility to ensure economic stability would have been undermined in the interest of power tussles, communication breakdown, and zero (or negative) sum game. We imagine how the situation would have unraveled (it still could) had the world’s richest economy, which also issues the global reserve currency, run out of cash and failed to meet its obligations.

While envisioning what Treasury Secretary Janet Yellen has termed an “economic catastrophe” if the United States wouldn’t be able to pay its dues and alternatives, ranging from the gimmicky minting of the trillion-dollar platinum coin to more serious options such as invoking the 14th Amendment, fail, we discuss three antifragile stocks that could have gained from the disorder.

Since Murphy’s Law states that anything that can go wrong will go wrong, the investments could come in handy if and when history (of debt-ceiling negotiations) fails to repeat itself.

The Worst-Case Scenario

Most businesses and economies globally operate on a key and time-tested assumption that the U.S. government always pays its debts. Hence, while fixed-income investors look for instruments that promise returns commensurate to their inherent credit risk, U.S. Treasury bonds are considered free of such risks and promise the lowest rates of interest and yields.

Consequently, U.S. government debt acts as a benchmark against which almost all other debtors price the cost of their borrowings while raising capital by issuing debt. Short-term government debt is equivalent to cash since nothing else is considered safer and pays less.
Hence, U.S. treasury bonds and bills have become a mainstay of risk-free component portfolios of individuals, businesses, banks, and even foreign governments.

A debt-ceiling debacle could impact the bonds and, by extension, the broader economy in two ways.

Even if the government does not default, a drawn-out deadlock between both sides of the aisle could increase anxiety among investors about the creditworthiness of the bonds in which they have parked their money. The Big Three credit rating agencies could share similar concerns and downgrade the US AAA credit rating like S&P did back in 2011, the last time it got this far and came this close.

Worse, however, if Congress doesn’t raise the debt ceiling and the U.S government misses its payment to its suppliers, employees, beneficiaries of social security, etc., it could trigger a mild recession in an economy that has been battered by persistent inflation and overburdened with increasing borrowing costs to contain the inflation.

In the worst-case scenario, if the government misses its payment to the investors holding its bonds, it would be considered a default, and all hell could break loose. With the safety of the benchmark out of the window, the bonds could significantly depreciate in value, thereby leading to a surge in demanded yield and interest rates, as was being teased by the ominously climbing treasury yields and falling AAA-rated corporate bond yields.

Such a catastrophe could trigger massive hikes in borrowing costs, which could effectively bring the economy to a standstill and trigger a financial crisis comparable in proportions to that in 2008. That could lead to a loss of more than 7 million jobs and $10 trillion in household wealth and trigger various higher-order effects, with shockwaves spreading throughout the global financial system.

Safe Havens and Insurances

Now that we have stared into the abyss, here are a few stocks that could protect and perhaps even increase investors’ wealth amid a market turmoil.

NextEra Energy, Inc. (NEE)

NEE is an electric power and energy infrastructure company that operates through FPL and NEER segments.

While the economy has been overheated with persistent inflation and weighed down by aggressive interest rate hikes by the Federal Reserve to counter the former, on May 19, NEE’s segment FPL proposed a $256 million rate reduction with the Florida Public Service Commission to take effect in July.
The rate reduction aims to pass on the benefit of reduced fuel costs due to continued downward revisions in projected natural gas costs for 2023. In this context, macroeconomic turmoil would have benefited the company by helping it improve its bottom line through greater savings from plummeting fuel prices.

Occidental Petroleum Corporation (OXY)

The international energy giant is Warren Buffett’s new love, with Bershike Hathaway Inc. (BRK)upping its stake to 24.4%. The company assets are primarily in the United States, the Middle East, and North Africa. It operates through three segments: oil and gas; chemical; and midstream and marketing.
Due to strong operational performance during the first quarter of the fiscal year 2023, OXY’s production of 1,220 Mboed exceeded the mid-point of guidance by 40 Mboed. As a result, the company reported an adjusted income attributable to common stockholders of $1.1 billion, or $1.09 per diluted share, and raised its full-year production guidance to 1,195 Mboed.

A debt default by the U.S. would have resulted in the devaluation of the currency. This would play into the hands of OXY, which would have benefited from the dual tailwind of the increased dollar-denominated price of crude oil and favorable exchange rates for more lucrative exports.

B2Gold Corp (BTG)

BTG is a low-cost international gold producer based in Vancouver, Canada. It has three operating mines: Fekola Mine in Mali; the Masbate Mine in the Philippines; and the Otjikoto Mine in Namibia. In addition, it has numerous exploration and development projects in Canada, Mali, the Philippines, Namibia, Colombia, Finland, and Uzbekistan.

The extent to which markets have been on edge over the state of the global economy that even ten interest-rate hikes by the Federal Reserve in just over a year haven’t been able to diminish the luster of gold. Despite the historical negative correlation of the yellow metal with the global reserve currency, the demand for gold from central banks worldwide totaled 1,136 tonnes in 2022.
Recession fears, bank failures, sovereign debt-default risks, de-dollarization, geopolitical conflicts, and the odd black-swan events are all expected to keep gold shining in the foreseeable future.