This new research has revealed that in areas considered unsuitable for farming today, "pre-Columbian farmers constructed thousands of raised fields in the seasonally flooded coastal savannas of the Guianas.

The post Amazon farmers who vanished centuries ago were remarkably innovative appeared first on Smithsonian Insider.

This 1950 Federal Bureau of Investigation photo shows T. Dale Stewart, M.D., Curator of Physical Anthropology, in his office at the Smithsonian’s National Museum of […]

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Bird species in rainforest fragments in Brazil that were isolated by deforestation first disappeared and then reappeared during the next quarter-century.

The post “Extinct” birds reappear in rainforest fragments in Brazil appeared first on Smithsonian Insider.

How do you diagnose a sick stream? Count its insects, according to Smithsonian biologist Don Weller.

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Shallow-water seagrasses can’t survive without enough light. And fish, shrimp, crabs and other creatures we rely on for food can’t survive without seagrasses. Smithsonian biologist […]

The post Ecosystems on the Edge: Underwater Light and Seagrass appeared first on Smithsonian Insider.

Trees put on weight faster and faster as they grow older, according to a new study in the journal Nature. The finding that most trees’ […]

The post Trees grow faster and store more carbon as they age appeared first on Smithsonian Insider.

In deer-populated forests, tastier plants can avoid being eaten if they are surrounded by less appealing plants. But with deer gone, diverse plots become weaker […]

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Although useful to Tarzan, vines endanger tropical forests’ capacity to store carbon. In a major experimental study in Panama, Smithsonian researchers showed that woody vines, […]

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Ubiquitous as they may be today, the origin of the Christmas tree is unknown to most. The tradition of decorating a tree, usually an evergreen […]

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Strategically placed honeybee hives can deter African elephants from raiding crops, but the hives must be actively managed by beekeepers to work, according to a […]

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If you are a plant, when life aboveground turns harsh, you have few options. Some orchids respond by going dormant, spending years to decades underground […]

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Muted moans of sadness punctuated the pandemonium that engulfed the Smithsonian’s National Zoo over the weekend as throngs of well-wishing visitors flooded through the Zoo’s […]

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This Earth Day weekend in Washington, D.C., the Smithsonian is convening the first Earth Optimism Summit. The three-day event, taking place April 21–23, will look […]

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Corn, known also as maize, is a vital crop in the U.S. and throughout the Americas. First domesticated in Mexico some 9,000 years ago, scientists […]

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To catch lizards on the offshore islands close to St. Croix in the Caribbean, Smithsonian herpetologist Nicole Angeli uses a lasso of thread looped at […]

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In a Model block, if the instance-specific value of a model argument has an anonymous structure type, an update diagram reports an error when there are multiple bus types that match that anonymous structure type.This bug exists in the following release(s):
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If you try to open a text file with UTF-16 or UTF-32 encoding, the Import Tool displays a warning message stating that the encoding is not supported.  If you continue to load the file anyways, it is opened with UTF-8 encoding, and the file may not be displayed or imported as expected.This bug exists in the following release(s):
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Experimental electron-density studies based on high-resolution diffraction experiments allow halogen bonds between heavy halogens to be classified. The topological properties of the electron density in Cl⋯Cl contacts vary smoothly as a function of the inter­action distance. The situation is less straightforward for halogen bonds between iodine and small electronegative nucleophiles, such as nitro­gen or oxygen, where the electron density in the bond critical point does not simply increase for shorter distances. The number of successful charge–density studies involving iodine is small, but at least individual examples for three cases have been observed. (a) Very short halogen bonds between electron-rich nucleophiles and heavy halogen atoms resemble three-centre–four-electron bonds, with a rather symmetric heavy halogen and without an appreciable σ hole. (b) For a narrow inter­mediate range of halogen bonds, the asymmetric electronic situation for the heavy halogen with a pronounced σ hole leads to rather low electron density in the (3,−1) critical point of the halogen bond; the properties of this bond critical point cannot fully describe the nature of the associated inter­action. (c) For longer and presumably weaker contacts, the electron density in the halogen bond critical point is only to a minor extent reduced by the presence of the σ hole and hence may be higher than in the aforementioned case. In addition to the electron density and its derived properties, the halogen–carbon bond distance opposite to the σ hole and the Raman frequency for the associated vibration emerge as alternative criteria to gauge the halogen-bond strength. We find exceptionally long C—I distances for tetra­fluoro­diiodo­benzene molecules in cocrystals with short halogen bonds and a significant red shift for their Raman vibrations.

During investigations of the formation of hydrated magnesium carbonates, a sample of the previously unknown magnesium carbonate hexa­hydrate (MgCO3·6H2O) was synthesized in an aqueous solution at 273.15 K. The crystal structure consists of edge-linked isolated pairs of Mg(CO3)(H2O)4 octa­hedra and noncoordinating water mol­ecules, and exhibits similarities to NiCO3·5.5H2O (hellyerite). The recorded X-ray diffraction pattern and the Raman spectra confirmed the formation of a new phase and its transformation to magnesium carbonate trihydrate (MgCO3·3H2O) at room temperature.

The positional change of nitro­gen-7 of the RNA constituent guanosine to the bridgehead position-5 leads to the base-modified nucleoside 5-aza-7-de­aza­guanosine. Contrary to guanosine, this mol­ecule cannot form Hoogsteen base pairs and the Watson–Crick proton donor site N3—H becomes a proton-acceptor site. This causes changes in nucleobase recognition in nucleic acids and has been used to construct stable `all-purine' DNA and DNA with silver-mediated base pairs. The present work reports the single-crystal X-ray structure of 7-iodo-5-aza-7-de­aza­guanosine, C10H12IN5O5 (1). The iodinated nucleoside shows an anti conformation at the glycosylic bond and an N conformation (O4'-endo) for the ribose moiety, with an anti­periplanar orientation of the 5'-hy­droxy group. Crystal packing is controlled by inter­actions between nucleobase and sugar moieties. The 7-iodo substituent forms a contact to oxygen-2' of the ribose moiety. Self-pairing of the nucleobases does not take place. A Hirshfeld surface analysis of 1 highlights the contacts of the nucleobase and sugar moiety (O—H⋯O and N—H⋯O). The concept of pK-value differences to evaluate base-pair stability was applied to purine–purine base pairing and stable base pairs were predicted for the construction of `all-purine' RNA. Furthermore, the 7-iodo substituent of 1 was functionalized with benzo­furan to detect motional constraints by fluorescence spectroscopy.

A large The Actor statue is placed on stage during 21st Annual SAG Awards Behind The Scenes At The Shrine Auditorium Jan. 23, 2015 in Los Angeles.; Credit: Kevork Djansezian/Getty Images

Click here for KPCC's Awards Tracker

This Sunday's Screen Actors Guild Awards aren't as high profile as the Academy Awards, or even the Golden Globes, but they serve as one of the best predictors of who's going to take home a gold statue come Oscar night. Here's why.

Who votes for the SAG Awards?

SAG Award nominees are chosen by a committee of about 2,100 of the guild's members, according to awards news site Gold Derby. Then, all of the 111,228 members of the Guild have the chance to vote for their picks.

Meanwhile, the acting nominees for the Academy Awards are chosen by the 1,100 members in the Academy's actors branch, before being voted on by the Academy's full 5,700 members. Those actors are all part of SAG, so you're likely to see a strong correlation most years between the awards, particularly in the acting category.

How often do the SAG Awards predict the Oscar winners?

The SAG Awards have proven to be the best Oscar predictor in the acting category of any other major awards season prize since they began in 1995, both in nominations and winners. Of the 20 nominations and four winners from each shows, the overlap between the SAG Awards (aka "the Actors") and the Academy Awards in the last few years:

• 2009: 18 nominations; 3 winners
• 2010: 19 nominations; all 4 winners
• 2011: 17 nominations; all 4 winners
• 2012: 16 nominations; 3 winners
• 2013: 15 nominations; 3 winners
• 2014: 14 nominations; all 4 winners

This year, 17 nominees crossed over between the awards shows, with the Oscars matching up on all five nominations for best supporting actor and four of the five nominations in the other three acting categories.

Where have the SAG Awards differed from the Oscars?

SAG voters have lined up with the Academy on Best Actor 16 out of 20 times. The last time they differed from the Oscars was 2003, when Johnny Depp won at the SAG Awards for "Pirates of the Caribbean: Curse of the Black Pearl" before Sean Penn took the statue home at the Oscars for "Mystic River."

For Best Actress, SAG last split from Oscar in 2011, going with Viola Davis for "The Help" over eventual Oscar winner Meryl Streep for "The Iron Lady." They've matched up 14 out of 20 years.

In the supporting categories, the SAG Awards haven't fared as well. They went 12 for 20 in Best Supporting Actor, and 13 for 20 in Best Supporting Actress. That one also has an asterisk — one of those was a tie, so if you don't count that one, they're also only 12 for 20.

What does this all mean for the Oscars?

The SAG Awards remain the ones to watch when it comes to the acting awards — though their Best Ensemble category, the SAG Awards version of Best Picture, doesn't have a particularly strong correlation to the Oscars Best Picture winner. (For that, you'll want to watch for the Producers Guild Awards.)

We're tracking awards season and what experts are predicting; see KPCC's Awards Tracker below or click here to see the full page. You can watch the Screen Actors Guild Awards this Sunday at 5 p.m. Pacific, 8 p.m. Eastern on both TBS and TNT.

Disclosure: Mike Roe, along with other members of KPCC's staff, are members of the Screen Actors Guild as part of their employment with KPCC.

This content is from Southern California Public Radio. View the original story at SCPR.org.

To describe multiple Bragg reflection from a thick, ideally imperfect crystal, the transport equations are reformulated in three-dimensional phase space and solved by spectral collocation in the depth coordinate. Example solutions illustrate the orientational spread of multiply reflected rays and the distortion of rocking curves, especially for finite detectors.

(The Paypers) CredoLab has partnered with iovation to integrate

(The Paypers) Fenergo, a provider of digital Client Lifecycle Management (CLM) software solutions for...

(The Paypers) Financial institutions (FIs) working in digital assets have been required by US regulatory bodies to pay attention to their anti-money laundering and...

La Librería co-founders, Chiara Arroyo (left) and Celene Navarrete (right) at the opening of their brick and mortar store on West Washington Blvd in Mid-City, Feb 21, 2015. The store sells children literature in Spanish. ; Credit: Deepa Fernandes / KPCC

A new Mid-City store specializing in Spanish-language books for children may help chip away at a problem facing public schools expanding their dual-language programs and parents working to raise bilingual children: a lack of books beyond translations of "Curious George."

La Librería, the first children’s Spanish-language literature store in Los Angeles, opened Feb. 21 at a location on West Washington Boulevard. The brick-and-mortar is the dream of two moms who started out selling their volumes at book fairs.

When they first started out, co-founders Celene Navarrete and Chiara Arroyo couldn’t believe the lack locally of good, Spanish-language literature for children.

"Especially in Los Angeles, it was shocking to see the books that I read in Mexico, in my hometown, many of them were not available here," said Navarrete.

So Navarrete and Arroyo began traveling to Mexico, Guatemala, Colombia, and Spain to find authentic, Spanish-language children's books.

"We found the classics, we found the books that we read when we were little," she said.

Although 64 percent of Los Angeles' children are Latino, locating children's works in Spanish beyond translations of popular books in English isn't easy.

This matters to educators who say young children need to read and hear language-rich stories to expand their vocabulary and engage with characters in settings they recognize.

“I’ve been a bilingual educator since the '80s, and as an educator you’re always striving to look for authentic literature,” said Norma Silva, principal of the UCLA Lab School, a dual-language pre-kindergarten and elementary school attached to the university's Graduate School of Education.

By authentic literature, Silva means books originally written in Spanish, using the “luscious language” of rich descriptions and vivid characters. These writings often come from Spanish-speaking countries.

Books translated from English to Spanish aren't enough, Silva said. Besides rich language, Silva looks for books from different countries — "because it’s important that we’re able to delve deeply in understanding differences,” she said. Silva believes books need to reflect the diversity among the children and their families.

Since books from Mexico use different language and tell different tales than books from Guatemala, Colombia or Spain, Silva wants the children at her school to experience them all.

So that’s what adults want.  

According to Scholastic, one of the largest sellers in the U.S. of children's books in Spanish, kids have strong opinions about what they want to read. In a just completed survey, Scholastic found 91 percent of kids aged 6 to 17 said their favorite books were ones they picked themselves.

And kids age 6 to 8 are more likely to want characters that look like them than older kids.

The majority of the Spanish-language books in the March Scholastic catalog are translations of popular English language books, with a few books written in Spanish. The March catalog includes "Clifford the Dog" and stories about Sophia, the Disney princess, in Español.

"Kids who are Latino, they don’t just want to read books that are Latino or by Latino authors or with Latino characters — they want to be exposed to the diverse literature that is out there," said Mariel Lopez, who directs Scholastic's Spanish section.

Lopez adds that teachers in dual language immersion schools request Spanish language books which are translated from English so they can use the same book in both languages.

Luis Orozco, who has represented authors of books for Latino children for years, said changes in the publishing industry haven't helped writers of original Spanish-language works.

"As a result of the advent of technology, a lot of our [U.S.] publishers were forced to consolidate. So a book about a popular character that did well in English was easy to translate," he said.

But Orozco believes there is a major market among people who are eager for their kids to succeed and want more book choices for their children.

“They come to this country because they have better opportunities here," he said. "And the fact of the matter is that the traditional channels of distribution don’t have sales people that speak their language, that can speak to the authenticity of that product.”

At a recent presentation to parents, Orozco talked about the story, “Del Norte al Sur,” written by one of his authors, Rene Colato Lainez. It tackles the issue of family separation due to deportation.

After his talk, he said he sold out of every book.

Navarrete and Arroyo have scoured the Internet and traveled to Spanish-speaking countries to find authentic literature to sell. They found them, to their delight.

“There is this explosion of small independent [children’s] publishers in Spain, in Latin American countries,” Navarrete said. The two carefully selected books that would resonate with kids growing up in Los Angeles, and brought them back to stock their shelves.

At their store's grand opening on Feb. 21, parents and kids flooded in, devouring the books. One mother, bouncing her 10-month-old in a baby carrier, asked if the store had books from Guatemala.

To her surprise, the answer was "yes."

Arroyo and Navarrete hope eventually they can find a way for children to borrow their books for free, like a library. They said their goal is to break down barriers so that any child can read a book that speaks to them.

4 tips for finding and reading Spanish-language literature

1. Look for small or independent publishers that promote Latino authors and illustrators. Here are a few to start with:

• Lee & Low books
• Cinco Puntos Press
• Academia Cultural

2. Rich language matters. Browse for language in books that is rich and expressive. Children are never too young to be exposed to words heavy in imagery, that have double-meanings, or are alliterative. Through vivid descriptions, children can learn words to explain their own feelings and experiences.

3. Engage your children with the language as much as you engage them with the story. Explain the complex words and talk about context and meaning. Rich language can also help early readers with social emotional development, said Norma Silva of UCLA’s Lab School.

4. Besides books in hard copy, look for audio books. There is a long tradition of oral storytelling in many Latin American countries. Stories are told and passed on through generations, and today some Latino writers are also performers. Author Jose-Luis Orozco produces music, rhythms and basic literacy in addition to his stories.

This content is from Southern California Public Radio. View the original story at SCPR.org.

Aline A. Alves
Apr 15, 2020; 0:jcs.242271v1-jcs.242271
Articles

Changing lifestyles are causing city workers to ignore the positive experiences of urban green spaces during their working week. A recent study suggests city planners could do more to promote the benefits of going outdoors to city dwellers.

As society changes, it places new demands on its surroundings. New research has found that some EU countries are better able to manage the undesirable expansion of cities, the concept known as ‘urban sprawl’, because they have a flexible spatial planning policy that can easily adapt to changes. Urban sprawl is a term used to describe the expansion of residential suburbs around city centres, driven by peoples’ desire to live in larger houses and the ease of transport made possible by cars.

The impact of polluted urban soil on trees is highlighted in a recent study from Latvia. The researchers found that high salt levels from de-icing chemicals and nutrient imbalance in soil damaged lime trees growing in the city of Riga.

Full Text:

Earth's magnetic field seems steady and true -- reliable enough to navigate by. Yet, largely hidden from daily life, the field drifts, waxes and wanes. The magnetic North Pole is currently shifting toward Siberia, forcing the Global Positioning System that underlies modern navigation to update its software sooner than expected. Every several hundred thousand years, the magnetic field dramatically shifts and reverses its polarity. Magnetic north flips to the geographic South Pole and, eventually, back again. This reversal has happened countless times over Earth's history, but scientists' understanding of why and how the field reverses is limited. The researchers find that the most recent field reversal 770,000 years ago took at least 22,000 years to complete, several times longer than previously thought. The results call into question controversial findings that some reversals could occur within a human lifetime.

Image credit: Brad Singer

Full Text:

National Science Foundation (NSF)-funded researchers from North Carolina State and Elon universities have developed a technique that allows them to remotely control the movement of soft robots, lock them into position for as long as needed and later reconfigure the robots into new shapes. The technique relies on light and magnetic fields. "By engineering the properties of the material, we can control the soft robot's movement remotely; we can get it to hold a given shape; we can then return the robot to its original shape or further modify its movement; and we can do this repeatedly. All of those things are valuable, in terms of this technology's utility in biomedical or aerospace applications," says Joe Tracy, a professor of materials science and engineering at NC State and corresponding author of a paper on the work. In experimental testing, the researchers demonstrated that the soft robots could be used to form "grabbers" for lifting and transporting objects. The soft robots could also be used as cantilevers or folded into "flowers" with petals that bend in different directions. "We are not limited to binary configurations, such as a grabber being either open or closed," says Jessica Liu, first author of the paper and a Ph.D. student at NC State. "We can control the light to ensure that a robot will hold its shape at any point."

Image credit: Jessica A.C. Liu

Source: Streetwise Reports   05/07/2020

Streetwise Reports: Let's start with gold, which has seen an impressive rise in the last few months as the broader markets have declined on the back of the coronavirus pandemic. What do you think is ahead for the metal?

Frank Holmes: There is a short-term view and a long-term view. What's really hard for so many investors and asset allocators to recognize is that gold bullion since 2000 has far outperformed the S&P 500. In fact, of the last 20 years, in 16 of those years gold has been positive. So if we look at the numbers, it's double what the S&P 500 has done for the past 20 years.

With gold, there's the fear trade and the love trade. The love trade is 60% of the demand and it is long-term demand. The fear trade is short-term demand, and it's about 40%. Right now, we're living with fear that's really dominating the markets. The two factors that go with that are negative real interest rates and the amount of debt being printed by the government. So whenever you have the combination of a rising Fed balance sheet with Quantitative Easing 1, 2 and 3, buying junk bonds, whatever they're doing in the stock markets to try and provide liquidity, as that flows dramatically so does the price of gold.

Typically and most significant, in every country in the world we have found that when you have negative real interest rates, gold goes up in that country's currency. Take the yield on 10-year government bonds and subtract the monthly Consumer Price Index (CPI) number; if it's a positive return, gold is not attractive as an asset class. But if it's a negative real rate of return, gold appreciates in that country's currency.

When gold went to $1,900 in September of 2011, the 10-year government bond had a negative real rate of return of -300 basis points. Then five years later, the price of gold went down to $1,100 and real interest rates were +2% over the CPI number. So you had a variant swing from -3 to +2, which is 500 basis, and that's why gold corrected. Since then, we've had these periods now, and particularly in the past year, of negative real interest rates in America. That's how gold started staging a rally, which started about this time last year, peaked in August, sold off and now it's coming back again.

The Federal Reserve said recently it's going to keep rates basically at 0. The CPI is still running more than 1%. In fact, we could get big food inflation, the way it looks, for beef, chicken, etc. Inflation could have a big impact on negative real interest rates, and gold is moving higher.

So short term, it's all about real negative interest rates. As long as they stay negative, then we're going to see gold go up in the U.S. dollar. It could go up against the euro, against any country's currency.

I mentioned earlier that 60% of gold demand is love, and it predominantly comes from China and India. China and India are 40% of the world's population, and if you throw in the Middle East and Southeast Asia, we're now talking about 50% of the world's population. They give gold for weddings and for birthdays, and there's a strong correlation of rising gross domestic product (GDP) per capita in those countries for the past 20 years, and rising gold consumption.

China and India comprise approximately 50% of the world's gold demand GDP per capita. Indian women wear six times the amount of gold on their bodies than what is in Fort Knox, and they predominantly wear 24 karat, minimum 22 karat, gold jewelry. It's protected them from bad governments and bad government policies.

SR: What do you see happening with silver?

FH: Silver has more industrial applications than gold, so silver is like a warrant on gold. If a stock takes off and there's an option or a warrant in the money, it explodes and goes up much more percentage-wise. It has greater volatility. Every 10% move in gold usually translates to a 15% move in silver, up or down. And with this fear that's been taking place with negative interest rates and the calamity of money printing around the world, what we see now is that silver didn't move at first. Silver has always lagged.

SR: Do you recommend that the individual investor hold gold bullion?

FH: Yes. I think the easiest way is the SPDR Gold Trust (GLD). Or if you want to buy the physical gold insured, go to a reliable site like Kitco, and you can take physical delivery.

There is a company called Mene Inc. (MENE:TSX.V; MENEF:OTCMKTS) at mene.com. It sells 24-karat gold jewelry with only a 10% markup. And it will buy back your gold jewelry at a 10% discount to the price of gold if you ever want to sell it back. That's the business model. It will deliver throughout the U.S., I think using Brinks for delivery of simple gold jewelry.

SR: Let's talk about bitcoin for a moment and how that fits into a portfolio.

FH: I am the chairman of HIVE Blockchain, which became the first real cryptomining company. We are mining using green energy, surplus energy in Iceland, Sweden and now Quebec, which sells electricity to New York state. Quebec has a surplus of it. So we started mining these coins.

What I found is that the Bitcoin is very different than Ethereum. Bitcoin is going to become, to me, like Andy Warhol's art. If you look at the original paintings of Marilyn Monroe or Elvis Presley, when he came out with his prints in different colors, they came out at $1,000, went up to $10,000, fell, went up to $50,000, fell, went up to $100,000 and went to $125,000—because there are just more people, widened GDP, over time, and then they become art collectors. I think that if you have an original Bitcoin that's never been traded, it's going to be in that space.

The other part is that cryptocurrency is very new, and digital money is going to only grow. Blockchain technology is a superior piece of technology. What we saw was that Bitcoin bottomed a little over a year ago. Then it rallied, it went up to $14,000. All the central banks got worried. They knocked it down, and it's making a comeback.

Bitcoin, in mid-May, is going to halve production. There's a limited number of Bitcoins allowed to be ever created. The methodology when you mine them is you get new Bitcoins. They're called genesis or virgin coins. The number of coins you get every time you mine is going to halve. So the supply is going to shrink dramatically. A thought process with that is that Bitcoin will trade higher, probably above $10,000. Bitcoin is very speculative, just like buying Andy Warhol's art early.

I think that anyone who looks at Bitcoin or Ethereum must recognize that the daily volatility is four times the S&P 500 and gold. Thirty percent of the time gold or the S&P can go up or down 1%. For Bitcoin and Ethereum, it's 4–5%. Cryptocurrency is a huge secular trend, but it's going to be volatile.

SR: How do you feel about gold stocks? Are you looking at seniors or juniors or both? What should investors be looking at?

FH: For the first time in a long time, I'm becoming very bullish on gold stocks. I've been very negative on gold mining companies for over a decade now, for raising capital and actually destroying value per share. But over the decade, new boards of directors and new chief executive officers have come on, and there's become a greater discipline on cash flow returns rather than on cash flow, revenue per share growth, cash flow per share growth, rising dividends, all the normal things you buy a Starbucks or any great company for. It's the capacity to have revenue growth. Mining companies did a lot of silly mergers and acquisitions work, with which they destroyed capital, but that has changed.

During this past decade I've been a big advocate of royalty companies, such as Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE), Royal Gold Inc. (RGLD:NASDAQ; RGL:TSX). These three had the highest revenue per employee in the world.

Franco-Nevada has a royalty on Newmont Goldcorp Corp. (NEM:NYSE) and Barrick Gold Corp.'s (ABX:TSX; GOLD:NYSE) joint venture assets in Nevada. The revenue per employee at Franco-Nevada is over $20 million. For Barrick or Newmont, it's $500,000 of revenue per employee. Goldman Sachs has $1 million of revenue per employee. So these royalty firms are very efficient companies. If you look at the past decade, Franco-Nevada has far outperformed Berkshire Hathaway. It has far outperformed any gold stock. It's because it's showing revenue per share growth, cash flow per share growth, over the rolling one year over three years on a consistent basis.

What's now happening is we have new management for these other gold stocks. The big move in gold stocks occurs when the generalists start to buy the sector. They've not been owning the underweight gold stocks because of the bad discipline by management and boards or silly acquisitions. Now what we're seeing, for the past three years, through the end of March, we're going to see the one year revenue growth over two years strong. Now you get 36 months of a strong growth in revenue and cash flow from the industry, and all of a sudden, generalists show up. When you start seeing more and more of the stocks in that industry showing free cash flow, the generalists start to show up.

The coronavirus this past quarter hurt the S&P 1500 stocks because the majority of them had free cash flow yields of about 4%, and they got evaporated, obliterated, because of this global shutdown. But the gold stocks didn't. They actually have rising free cash flow. They're going to show this quarter the price of gold is up, some of them had shut-ins for very temporary periods of time but their revenue, their cash flow, as a whole is going to truly outshine the overall industry. And when the quants and the fundamentalists start looking at where their growth is, these stocks are going to show up.

I did an analysis of only looking at free cash flow and picked the 10 gold stocks every quarter that had the highest free cash flow yield. And I sold them and bought them every quarter. I far outperformed any gold index. So that discipline shows up as a key metric to attract the quant fund or the generalist. When I look at my data—the two-year number is so important—I'm becoming very bullish on gold stocks.

When we talk about the names, my bias is U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU). I launched this several years ago as a smart quant approach to picking gold stocks. It has three royalty companies that we talked about, Franco-Nevada, Wheaton Precious and Royal Gold. They're 30% of that ETF. They rebalance every quarter.

Then all the other names, they go down to a $200 million market cap but they have to be able to show the highest cash flow returns on invested capital. Once they do something silly or stupid, they're thrown out. Back testing, that model has outperformed the VanEck Vectors Gold Miners ETF (GDX) and the VanEck Vectors Junior Gold Miners ETF (GDXJ) just on a basket of 60 gold stocks. This only has 28 names. Since I launched it, it's far outperformed on a rolling 12-month basis. It's smart data, and it dynamically recalibrates every quarter.

If you want to buy the individual names, then I would focus on those three big royalty companies. Thereafter, I would focus on those companies that have this metric I talk about, free cash flow yields. Out of the 100 gold stocks in the world that we follow, there are only about 14 of them that really have attractive free cash flow yields. What's interesting is that Barrick and Newmont—and Newmont's part of the S&P 500—does have a free cash flow yield that is positive, so you're seeing it has really done exceptionally well this past quarter because it has an attractive free cash flow yield and has not been hurt by the coronavirus.

SR: Let's switch gears for a moment. U.S. Global Funds runs the Jets ETF, an airline ETF. Obviously, the airlines have been battered. Do you see them coming back? Do you see bankruptcies?

FH: I think that the government agencies and the politicians have learned a lot from two big corrections: the 9/11 correction and 2008–2009. When you look at this industry, the Federal Aviation Administration says that 1 in 15 people is associated with the airline industry. That's huge. When you look at the multiplying effect of the airline industry, it's massive, just as housing is. One dollar for housing is worth $16 approximately. So when it comes to airlines, we're talking a double digit number of multiplying effect.

What's happened is that the government has been very smart this time to say we must make sure that we don't unwind this industry as we've done in previous times. So I think there's going to be a faster turnaround from the bailout policies.

What's happened with the airlines is they have ancillary revenue that has been very significant in the past five years. Some $20 billion of revenue then went to $100 billion of revenue, which covers a lot of costs. It aggravates you and me when we fly: change fees, baggage fees, but all these fees have let the airlines not be victimized by the price of oil because every time the price of oil went up, airline stocks fell. Every time oil went down, airlines went up. It was this inverse relationship that took place. Oil has represented less and less of ancillary fees. Now what's happened on this correction is not only the ancillary fees and everything have fallen, but oil has crashed. So airlines' biggest cost is way, way down. That means when they turn, and they come out of this correction, they have huge upside. Not only do they have the support of the government, they have the ability to start adding on these fees.

Because of the bailouts, airlines are not going to be able to buy back their stocks and they're not going to be increasing their dividends in this process. But that doesn't matter. Their revenue capacity per share is explosive. So I think that that's a very big difference.

SR: Anything else that you would like to talk to our readers about in this period of extreme volatility and uncertainty?

FH: Yes, bad news is good news. There's the optimism of trying to find who's going to be the solution to the problem. Had the U.S. Food and Drug Administration and the Centers for Disease Control and Prevention used Google and Amazon technology, they probably could've adapted faster to this coronavirus. Amazon hired 100,000 people. It's amazing that in all that negative news, it adapted the fastest. It's trying to understand how capital markets morph. There are certain industry leaders. I love Clorox. I don't think that stock is going to be given away. I think it's one of those just steady dividend payer and growing dividend stocks. So it's in the negative news where you can find opportunities besides airlines, besides gold. You can turn around and find these other pockets.

SR: Thank you, Frank. I appreciate your time today.

Frank Holmes is CEO and chief investment officer at U.S. Global Investors, which manages a diversified family of funds specializing in natural resources, emerging markets and gold and precious metals. In 2016, Holmes and portfolio manager Ralph Aldis received the award for Best Americas Based Fund Manager from the Mining Journal. In 2011 Holmes was named a U.S. Metals and Mining "TopGun" by Brendan Wood International, and in 2006, he was selected mining fund manager of the year by the Mining Journal. He is also the co-author of The Goldwatcher: Demystifying Gold Investing. More than 30,000 subscribers follow his weekly commentary in the award-winning Investor Alert newsletter, which is read in over 180 countries. Holmes is a much sought-after keynote speaker at national and international investment conferences. He is also a regular commentator on the financial television networks CNBC, Bloomberg, BNN and Fox Business, and has been profiled by Fortune, Barron's, The Financial Times and other publications.

Disclosure:
1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this interview are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Frank Holmes: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: N/A. I, or members of my immediate household or family, are paid by the following companies mentioned in this article: HIVE Blockchain Technologies. My company has a financial relationship with the following companies mentioned in this interview: N/A. Funds controlled by U.S. Global Investors hold securities of the following companies mentioned in this article: Mene Inc., Franco-Nevada Corp., Royal Gold Inc., Wheaton Precious Metals, Newmont Mining, Barrick Gold Corp. I determined which companies would be included in this article based on my research and understanding of the sector. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
4) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Franco-Nevada and Newmont Goldcorp, companies mentioned in this article.

( Companies Mentioned: FNV:TSX; FNV:NYSE, MENE:TSX.V; MENEF:OTCMKTS, RGLD:NASDAQ; RGL:TSX, WPM:TSX; WPM:NYSE, )

Source: Peter Epstein for Streetwise Reports   05/07/2020

In late April, Metalla Royalty & Streaming acquired two royalties, one of which was a Gross Overriding Royalty (GOR) on NuLegacy Gold Corporation (NUG:TSX.V; NULGF:OTCQX) flagship Red Hill project, a Carlin-style deposit in Nevada's world-famous Cortez trend.

To be clear, this was a transaction between Metalla and a private company; no cash or other remuneration flowed to NuLegacy. However, this news is still exciting and thought provoking as it pertains to a potential (implied) valuation of Red Hill. So much so, that—CEO/director of Finance and Marketing—Albert Matter put out this press release highlighting it. {corporate presentation}

Metalla's news is applicable to NuLegacy for a number of reasons. Let me start by saying I know the Metalla team, I've written about the company several times (although not recently).

This is a smart, hard-working, market-savvy group, with global experience, integrity and expertise. When dealing in streams and royalties, it's all about industry connections, market knowledge and deal flow. Metalla has that and is up to its eyeballs in deal flow (deals it can make or pass on).

Takeaways on implied valuation of NuLegacy's Red Hill project?

That's why this news is so interesting. It represents a reliable, unbiased vote of confidence in NuLegacy's Red Hill project. I was able to track down the president, CEO and a director of Metalla, Mr. Brett Heath, to ask him about his team's view of NuLegacy, their management and technical teams, and the Red Hill project,

"The Red Hill project is very interesting due to its location & position within the Cortez trend of Nevada that hosts globally significant mines & projects, specifically Cortez Hills, Pipeline & Goldrush. Although many near-surface deposits have been discovered, several blind deposits similar to Goldrush have yet to be found.

"NuLegacy's Rift Anticline is a promising new drill target, a chance to discover a large, high-grade deposit. The close proximity of Red Hill to Goldrush heavily influenced our understanding of the geology at Red Hill. Specifically, it allowed us to better understand that the Rift Anticline has similar stratigraphy to Goldrush, and similar mineralization events nearby."

Investors, shareholders and analysts are trying to figure out what (if any) read-throughs there are in terms of the valuation of the Red Hill project.

From the press release:

"Valuing Gross Overriding Royalties ("GORs") is a complicated business made easier in this instance by the straightforward nature of the [transaction] …. prorating the US$4 million purchase price for the total of 2% GOR that was acquired…. values a 1% GOR in the Red Hill project at ~US$2 million."

What this valuation exercise boils down to is how does the value of a 1% GOR compare to a conventional working interest in the same project? GORs are highly case specific, so I will give a range of possibilities. Many factors make GORs unique, but a rule of thumb is that a 1% GOR equates to a 5% working interest.

However, due to the unknown terms of this particular GOR, let's assume that the 1% GOR is equal to between a 5% and 10% working interest. By extending the range higher than 5%, more conservative valuations for Red Hull are obtained. In the chart below one can see that the implied ~US$2 million paid for a 1% GOR equals C$2.8 million at the current exchange rate.

Therefore, Red Hill's indicative valuation could be viewed as C$28 million to C$56 million, or C$0.08 to C$0.15 per share. Currently, the stock's trading at C$0.07. The company has a cash balance of C$4.5 million. {see corporate presentation}. I believe the C$0.08 to C$0.15/share range is conservative because Metalla's purchase of the GOR had a built-in profit expectation. The true ascribed value of a 1% GOR on the Red Hill project might be higher than C$2.8 million.

A true vote of confidence in NuLegacy Gold

Perhaps more important than an implied (subjective) valuation of Red Hill are the following takeaways. First, Metalla not only likes Red Hill, it must also feel good about the long-term prospects for Nevada and the U.S. Metalla looks at hundreds of deals a year from all over the world. Management can, and does, invest in dozens of jurisdictions.

Yet, in April 2020, it chose the U.S., …. Nevada …. the Cortez Trend…. Second, it chose a project that's pre-maiden resource. Remember, Metalla has paid out ~C$2.8 million, but doesn't make a penny of that back unless it re-sells some or all of the GOR it acquired, or Red Hill reaches commercial production. Therefore, I argue that investing at this relatively early stage is a stamp of approval in the extensive work done to date at Red Hill.

That Metalla chose to deploy capital in a gold asset rather than a silver asset, despite the gold-silver ratio being near an all-time high (over 110 to 1) seems promising. Finally, it chose the U.S. at a time when the currencies of Mexico, Australia, Canada and others have weakened considerably vs. the U.S. dollar, making exploration cheaper in those countries. One must have conviction to choose Red Hill over dozens of public and private, pre-maiden resource, projects around the globe.

In the end, a good project in a great jurisdiction is only as prospective as its technical/management teams. NuLegacy has prudently advanced Red Hill in good times and bad. For most of NuLegacy's existence, the gold price traded between about $1,050 and $1,400/oz.

Gold price at $1,730/oz. is a game-changer….

Now gold is hovering around $1,730/oz after almost touching $1,800/oz in March. This is a game-changer for juniors like NuLegacy that have tremendous blue-sky potential, (look at neighboring mines and development projects, some of the best on the planet) but like most juniors, have limited funding to conduct aggressive drill programs in a strong gold price environment.

A savvy company betting on the Red Hill project is yet another indication that the time has come for precious metal players to become more active in M&A.

The day that Barrick commits its deep experience (and deep pockets!) to NuLegacy's Red Hill, all royalties held on that project would soar in value. Why? The timeline to potential production would be shortened, perhaps by years, (more drilling, less investor hand holding, perhaps skipping a PEA or a PFS). The scope of the project would become larger—more drilling across a wider footprint (a 108 sq. km land package).

The value of the royalties could double, triple, quadruple…. who knows? The share price at which NuLegacy gets taken out could also be meaningfully stronger. After all the company has been through, I don't think the Board would sell the company below C$0.30/share. At least not with the gold price at $1,730/oz (or higher). Readers are reminded that C$1.5 billon OceanaGold Corp. & giant natural resources fund Tocqueville own a combined 21.5% of the company.

Might there be a bidding war for NuLegacy?

In a best case example then, there could be multiple bidders for NuLegacy. This is not nearly as crazy as it sounds, especially if the gold price keeps going up, or if the next (fully funded) drill program hits the mark. If Barrick were to make a move, OceanaGold, Newmont, or even Tocqueville (they could hold out for higher price) might have something to say about it.

Those entities, and/or other mid-tiers/majors in Nevada or around the world would keep Barrick honest. Over the years NuLegacy has been in touch with several well-known names, but I never know who they're talking with at any given time. Make no mistake, Barrick is best positioned by virtue of having the most synergies with Red Hill, so it can afford to pay several more pennies per share if need be. That's how a share price of C$0.30+ becomes possible.

Bottom line, NuLegacy Gold (TSX-V: NUG) / (OTCQX: NULGF) is a high-risk exploration play, but I believe a good speculation. There's no better time to be buying high-risk exploration than when the prices of the metals being explored for are moving up.

As more attention is drawn to NuLegacy, its team, the undisputed safety of Nevada, the prolific nature of the Cortez Trend, etc., I think there's compelling relative and absolute value here that readers should consider investigating further.

Corporate Presentation

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis. He holds an MBA degree in financial analysis from New York University's Stern School of Business.

Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about NuLegacy Gold, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is not to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of NuLegacy Gold are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, NuLegacy Gold was an advertiser on [ER] and Peter Epstein owned shares in the Company.

Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Metalla Royalty & Streaming and Newmont Goldcorp, companies mentioned in this article.

Graphics provided by the author.

( Companies Mentioned: NUG:TSX.V; NULGF:OTCQX, )

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