⛏️ Mining Trims 12% Gain. $260M+ VC Funding.

Impact Capital Markets #39 looks at our Mining stock index, major impact deals, M&A, and upcoming economic releases.

Tashi Delek 🏔️

📉 Today's Global Economic Update: US GDP Growth data released yesterday indicates that the economy expanded at an annualized rate of 3.2% in Q4 2023, slightly below the advance estimate of 3.3%. Despite the slight dip from the estimate, the growth in Q4 highlights the ongoing strength of the US economy. Overall, the US economy grew by 2.5% in 2023.

🌱 Deal of the Day: Oishii Farm, a vertical farming company, raised $134M in Series B funding to expand into new markets.

What's New?

  • ⛏️ Mining Index. Mining index retreats after 12% gain  
  • 💰 Funding. Vertical farming, medical devices, digital health & more
  • 💼 M&A. Biotech and carbon capture
  • 📅 Economics. Europe inflation data, balance of trade, Australia GDP+ more

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⛏️ Mining Index Retreats After 12% Gain

HolonIQ Mining Index has rebounded, following a period of declines throughout much of 2023. The index rebounded in 4Q 2023 to reach 12% in December but hasn't maintained positive momentum since. While many index constituents saw declines, with BHP ($145B MCap) falling 8%, Vale SA ($61B MCap) decreasing 25%, and Glencore ($57B MCap) registering a -23% return, China Shenhua Energy ($101B MCap) significantly boosted the index with a 31% increase. Fortescue ($52B MCap) also registered 12% growth.

With the monetary tightening cycle coming to an end, 2024 has a relatively brighter outlook. Continued stimulus in China and industrial recovery in developing markets could lead to higher demand. The rapid adoption of clean energy technologies like solar energy and batteries, and thus the increased demand for critical minerals, are tailwinds for the mining industry. Likewise, with gold outperforming most commodities in 2023, increased investment in gold is likely to persist.

However, balancing development with environmental conservation poses a significant hurdle for the industry, especially amidst increasing environmental concerns and the emergence of regulatory complexities. Despite rising demand, high levels of capital are also required for the mining of critical minerals, posing a significant challenge to firms within the mining industry.

💰 Funding

🌱 Oishii Farm, a New Jersey-based vertical farming company, raised a $134M Series B from Japanese telecommunications firm NTT to expand its distribution to new markets and support growth initiatives.

🩺 Argá Medtech, a Swiss medical device company developing treatments for cardiac arrhythmias, raised a $58.8M Series B from Earlybird Venture Capital & Advent Life Sciences to advance developments of its new treatments.

🏥 Redi Health, an Ohio-based digital health startup, raised a $14M Series B from Blue Heron Capital to launch new products and accelerate growth.

💉 Roshal Health, a Texas-based ultrasound and echocardiogram service provider, raised $10M from Catalio Capital Management to advance its tech platform.

🔬 ARTIRIA Medical, a Switzerland-based neurovascular health tech company, raised a $6M Series A from 4FO Ventures to complete its clinical studies in stroke treatment.

💼 M&A

🧬 Ginkgo Bioworks, a Massachusetts-based biotech company, acquired Patch Biosciences, a New York-based gene therapy company, and Proof Diagnostics, a molecular test developer for COVID-19.

♻️ Cycle0, a UK-based biomethane producer, acquired Biogasclean, a Danish supplier of automated gas conditioning systems to advance its carbon capture project.

📅 Economic Calendar

Europe Inflation Data, Balance of Trade, Australia GDP + More

Thursday, February 29th 2024

🇮🇳 India GDP Data, Q4
🇩🇪 Germany Inflation Data (Preliminary), February
🇨🇦 Canada GDP Data, Q4
🇺🇸 US Core PCE Price Index Data, January
🇺🇸 US Personal Income & Spending Data, January

Friday, March 01st 2024

🇨🇳 China NBS & Caixin Manufacturing PMI (Preliminary), February
🇯🇵 Japan Consumer Confidence, February
🇪🇦 Euro Area Inflation Data (Flash), February
🇮🇹 Italy GDP Data, 2024
🇮🇹 Italy Inflation Data (Preliminary), February
🇮🇹 Italy Government Budget, 2023
🇺🇸 US ISM Manufacturing PMI (Preliminary), February

Tuesday, March 5th 2024

🇺🇸 US ISM Services PMI, February

Wednesday, March 6th 2024

🇦🇺 Australia GDP Growth Data, Q4
🇩🇪 Germany Balance of Trade, January
🇨🇦 Canada BoC Interest Rate Decision
🇨🇦 Canada Ivey PMI, February
🇺🇸 US JOLTs Job Openings, January

Thursday, March 7th 2024

🇦🇺 Australia Balance of Trade, January
🇨🇳 China Balance of Trade, Jan-Feb
🇪🇦 Euro Area Deposit Facility Data
🇪🇦 Euro Area ECB Interest Rate Decision
🇨🇦 Canada Balance of Trade, January
🇪🇦 Euro Area ECB Press Conference

Friday, March 8th 2024

🇨🇦 Canada Unemployment Data, February
🇺🇸 US Non-Farm Payrolls, February
US Unemployment Data, February

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