Core Viewpoint - T2 Metals Corp has successfully closed a flow-through private placement financing, raising $527,000 to fund an expanded drilling program at the Sherridon project in 2025 [2][3]. Financing Details - The financing raised gross proceeds of $527,000 by issuing 1,550,000 flow-through units at a price of $0.34 per unit [2]. - Each flow-through unit consists of one flow-through common share and one-half of a non-flow-through common share purchase warrant, with each whole warrant allowing the purchase of a non-flow-through common share at $0.50 for two years [2]. Project Development - The proceeds will enable an expanded drilling program at the Sherridon copper-gold-zinc project in Manitoba, following the recently completed 2024 program [3]. - T2 Metals is fully permitted for drilling at Sherridon until July 2027, targeting both historical mineral resources and untested regional targets [3][5]. Project Location and Access - Sherridon is located in the Flin Flon – Snow Lake Greenstone Belt of Manitoba, known for its significant mining and exploration history [4]. - The project has year-round road access and is situated 70 km from the mining center of Flin Flon, with access to an operational train line [4]. Insider Participation - Certain insiders participated in the offering, purchasing a total of 64,700 flow-through units, which was classified as a "related party transaction" but exempt from formal valuation and minority shareholder approval requirements [5]. Additional Financial Information - A finder's fee of $30,000 was paid on a portion of the financing, and all securities issued are subject to a four-month hold period and regulatory approvals [6].

Core Viewpoint - Two Harbors Investment Corp. (TWO) has experienced a significant decline in share price, losing 10.9% over the past month, which is notably worse than the industry's decline of 2.8% [1] Price Performance - TWO is a Real Estate Investment Trust (REIT) that invests in residential mortgage-backed securities (RMBS) and mortgage loans, offering attractive long-term returns with a high dividend yield of 15.50%, compared to the industry average of 10.13% [2][9] Financial Impact of Interest Rates - The company's financials have been negatively affected by high interest rates, leading to increased borrowing costs and a net interest loss for the nine months ending September 30, 2024 [4] - The book value per share decreased from $15.06 in 2023 to $14.93 in 2024 due to spread risk associated with high rates [5] Rate Cuts and Market Conditions - The Federal Reserve's recent interest rate cuts, including a 25 basis point reduction, are expected to lower mortgage rates, which could improve housing affordability and increase demand in the mortgage market [5][6][7] - More interest rate cuts are anticipated in 2025, which should enhance TWO's net interest spread and portfolio book value [8] Investment Portfolio - TWO's investment portfolio is primarily composed of RMBS with mortgage servicing rights (MSR), providing less exposure to mortgage spread changes while benefiting from spread tightening [12] - The company focuses on maximizing value from MSR assets and is enhancing its portfolio with additional revenue and hedging options [13] Valuation Metrics - From a valuation perspective, TWO's stock is trading at a 12-month trailing price-to-book (P/B) ratio of 0.77, which is below the industry average of 0.86 and lower than peers NLY and AGNC [16] Dividend Considerations - The company has a history of reducing dividends during challenging times, with a 13.33% decline in payouts over the past five years [18]

Core Viewpoint - T2 Metals Corp has received a new drill permit for the Sherridon copper-gold-zinc project, allowing for expanded drilling activities until July 2027, which supports the company's exploration strategy and aligns with Manitoba's Critical Minerals Strategy [2][5]. Group 1: Drill Permit and Project Overview - The new drill permit enables T2 Metals to conduct drilling over a broader area compared to the previous permit granted in 2023, facilitating the proposed 2025 drill program and future programs until July 2027 [2][4]. - The Sherridon project is located in the Flin Flon - Snow Lake Greenstone Belt of Manitoba, known for its significant mining and exploration history, with year-round road access and proximity to the mining center of Flin Flon [3]. Group 2: Recent Drilling Activities - T2 Metals completed a fall 2024 drilling program that tested high-grade copper and gold mineralization at the Cold and Lost prospects, with plans to include the Bob and Park prospects in future drilling [4][5]. - The company aims to follow up on historic mineral resources and explore regional targets that have not been previously drilled [5]. Group 3: Historical Mineral Resource Estimates - An NI 43-101 Technical Report released on November 1, 2024, summarizes historical mineral resource estimates from five unmined deposits within 8 km of each other, including the Park, Jungle, Bob, Cold, and Lost prospects [8]. - The total indicated historical mineral resources amount to approximately 6,552,800 tonnes with an average copper grade of 0.85%, zinc grade of 1.22%, and gold grade of 0.37 g/t [9]. Group 4: Community and Industry Engagement - T2 Metals has expressed gratitude to the Kiciwapa Cree and Mathias Colomb Cree Nations for their support in obtaining permits, highlighting the importance of community relationships in the exploration process [5]. - The company participated in the Central Canada Mineral Exploration Convention (CCMEC), where discussions focused on sustainable mining and the importance of critical minerals like copper, zinc, and nickel for Manitoba's economy [7].

Core Viewpoint - T2 Metals Corp. has filed an independent Technical Report for the Sherridon copper-zinc-gold project, highlighting its potential and historical mineral resource estimates [1][2][12]. Company Overview - T2 Metals Corp. is focused on enhancing shareholder value through exploration and discovery in under-explored areas, including the Sherridon project [16]. Project Details - The Sherridon project is located in the Flin Flon – Snow Lake Greenstone Belt, known for its significant mining and exploration history, with year-round road access and proximity to an operational train line [3][12]. - The Technical Report complies with the Canadian Securities Administrators' National Instrument 43-101 standards [2]. Historical Mineral Resource Estimates - The Technical Report summarizes historical mineral resource estimates from five unmined deposits: Park, Jungle, Bob, Cold, and Lost prospects, all within 8 km of each other [4]. - Aggregate historical mineral resource estimates include: - **Indicated Resources**: - Open Pit: 5,317,000 tonnes at 0.80% copper, 1.23% zinc, 0.34 g/t gold, and 7.2 g/t silver - Underground: 1,235,800 tonnes at 1.04% copper, 1.18% zinc, 0.48 g/t gold, and 8.2 g/t silver - Total Indicated: 6,552,800 tonnes at 0.85% copper, 1.22% zinc, 0.37 g/t gold, and 7.4 g/t silver [5] - **Inferred Resources**: - Open Pit: 12,240,000 tonnes at 0.62% copper, 0.77% zinc, 0.26 g/t gold, and 5.3 g/t silver - Underground: 3,620,000 tonnes at 0.91% copper, 1.08% zinc, 0.32 g/t gold, and 7.4 g/t silver - Total Inferred: 15,860,000 tonnes at 0.68% copper, 0.84% zinc, 0.28 g/t gold, and 5.8 g/t silver [5]. Future Exploration Potential - The project has over 25 km of strike length at surface, indicating excellent opportunities for additional discoveries [12].

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being unde ...

Group 1 - Two Harbors Investment Corp. (NYSE: TWO) is a mortgage real estate investment trust (mREIT) that is highly sensitive to interest rate movements [1] - The Federal Reserve has implemented its first interest rate cut, which could impact the performance of mREITs like Two Harbors [1]

Two Harbors Investments (TWO) reported $-42.29 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 14.6%. EPS of $0.13 for the same period compares to -$0.01 a year ago. ...

Financial Performance - Generated comprehensive income of $19.3 million, or $0.18 per weighted average basic common share[2] - Net interest income for the three months ended September 30, 2024, was $112,642, a decrease from $123,608 in the same period of 2023, representing a decline of 7.8%[28] - Total interest expense for the three months ended September 30, 2024, was $154,931, down from $173,094 in the prior year, reflecting a decrease of 10.5%[30] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(250,269), compared to a profit of $294,077 in the same period of 2023[32] - Basic loss earnings per share for the three months ended September 30, 2024, was $(2.42), a significant decline from $3.04 in the prior year[32] - Comprehensive income attributable to common stockholders for the three months ended September 30, 2024, was $19,352, compared to a loss of $(56,845) in the same period of 2023[32] - Total other (loss) income for the three months ended September 30, 2024, was $(335,901), a significant decrease from $267,922 in the prior year[28] - Net servicing income for the three months ended September 30, 2024, was $167,832, an increase from $148,722 in the same period of 2023, representing a growth of 12.5%[28] - Earnings available for distribution to common stockholders for the three months ended September 30, 2024, was $13,186, down from $17,516 in the same period of 2023[32] Balance Sheet Highlights - Reported book value of $14.93 per common share, with a third quarter common stock dividend of $0.45 per share, representing a 1.3% quarterly economic return on book value[2] - Total assets decreased to $12,887,842,000 as of September 30, 2024, from $13,138,800,000 at the end of 2023[24] - Total liabilities decreased to $10,718,468,000 as of September 30, 2024, from $10,935,410,000 at the end of 2023[24] - Stockholders' equity was $2,169,374,000 as of September 30, 2024, compared to $2,203,390,000 at the end of 2023[26] - The company reported a decrease in cash and cash equivalents to $522,581,000 as of September 30, 2024, from $729,732,000 at the end of 2023[24] - Mortgage servicing rights at fair value decreased to $2,884,304,000 as of September 30, 2024, from $3,052,016,000 at the end of 2023[24] Portfolio and Acquisitions - Settled $3.3 billion in unpaid principal balance (UPB) of MSR through bulk and flow-sale acquisitions and recapture[3] - Funded $22.4 million UPB in first lien loans and brokered $7.5 million UPB in second lien loans during the first full quarter of direct-to-consumer originations[3] - Committed to purchase an additional $2.1 billion UPB of MSR through a bulk acquisition post quarter-end[3] - As of September 30, 2024, the company's portfolio comprised $11.4 billion of Agency RMBS, MSR, and other investment securities[8] - The portfolio included $8.5 billion of Agency RMBS, accounting for 74.7% of the total portfolio[8] - The unpaid principal balance for MSR was $202.1 billion, with a gross coupon rate of 3.4%[10] Debt and Financing - Total borrowings as of September 30, 2024, amounted to $10.0 billion, with a weighted average borrowing rate of 5.40%[12] - The debt-to-equity ratio at period-end was 4.6:1.0 for the three months ended September 30, 2024, compared to 4.5:1.0 for the previous quarter[15] - The annualized cost of financing was 6.17% for the three months ended September 30, 2024, down from 6.23% in the previous quarter[15] Other Information - The company will host a conference call on October 29, 2024, to discuss its third quarter 2024 financial results[17] - The company emphasizes the importance of forward-looking statements and the associated risks and uncertainties[19] - The company provides non-GAAP financial measures to assist investors in analyzing its results of operations[22] - Dividends declared per common share for the three months ended September 30, 2024, remained at $0.45, consistent with the same period in 2023[32] - Unrealized loss on available-for-sale securities for the three months ended September 30, 2024, was $(269,621), compared to a loss of $(350,922) in the prior year[32]

Core Viewpoint - Two Harbors Investment Corp. (TWO) is set to report its third-quarter 2024 results on October 28, with expectations of improved earnings compared to previous quarters, despite challenges in the mREIT sector [1][5]. Financial Performance - In the last reported quarter, TWO posted earnings available for distribution per share of 17 cents, significantly exceeding the Zacks Consensus Estimate of 2 cents [2]. - The net interest income for the last quarter was negative $38.3 million, better than the Zacks Consensus Estimate of negative $45.9 million [2]. - The Zacks Consensus Estimate for total interest income in the upcoming quarter is pegged at $115 million, indicating a slight decline from the previous quarter [4]. Market Conditions - The mREIT sector experienced higher volatility in fixed-income markets during the third quarter, increasing asset impairment risks and hedging mismatches [3]. - A positively sloped yield curve is expected to have supported mortgage REIT valuations, likely increasing TWO's book value per share [3]. - The 30-year fixed mortgage rates decreased to 6.2% at the end of the third quarter, down from 6.86% in the second quarter of 2024, which is anticipated to have boosted mortgage demand and refinancing activities [4]. Interest Rate Impact - The Federal Reserve cut interest rates by 50 basis points to 4.75-5% on September 18, but maintained rates at a 23-year high of 5.25-5.5% for most of the quarter, likely leading to higher funding costs for TWO [5]. - The Zacks Consensus Estimate for net interest income in the upcoming quarter is negative $39 million, compared to negative $38.3 million reported in the prior quarter [5]. Earnings Expectations - Analysts have increased the Zacks Consensus Estimate for third-quarter earnings to 35 cents from 11 cents over the past week, indicating a significant year-over-year improvement [5]. - The Earnings ESP for Two Harbors Investment is currently 0.00%, indicating uncertainty in predicting an earnings beat [6]. Zacks Rank and Comparisons - TWO currently holds a Zacks Rank of 1, indicating a strong buy recommendation [7]. - Other REITs such as American Healthcare REIT Inc. and Public Storage are highlighted as potential stocks to consider, with positive Earnings ESPs and favorable Zacks Ranks [7].

Core Insights - T2 Metals Corp. has completed the summer/fall phase of core drilling at the Sherridon copper-gold project, achieving an 80% ownership interest in the project as per the Option Agreement with Halo Resources Ltd [2][3]. Drilling Program Details - A total of 2,180 meters were drilled in eight new holes and one deepened hole, with an additional 1,800 meters planned for winter 2025 when access is easier [2][3]. - The drill program is the largest at Sherridon in over a decade, targeting areas with known mineralization and untested geophysical plates [4]. Geological Findings - Multiple holes have intersected massive and disseminated sulphides, including chalcopyrite (copper) and sphalerite (zinc) [5][6]. - Historical production from the Sherridon project includes 7.74 million tonnes at grades of 2.46% Cu, 2.84% Zn, 0.6 g/t Au, and 33 g/t Ag [7]. Community and Support - The drilling program has received strong support from the local First Nations community, including an Exploration Agreement with the Kiciwapa Cree Nation [7]. - The company has also been recognized for its reconciliation efforts, receiving an award from the Manitoba Prospectors and Developers Association [7]. Historical Resource Estimates - Historical Mineral Resource Estimates at the Cold Lake, Lost Lake, Bob, and Jungle prospects total 6.6 million tonnes at 0.85% Cu, 1.22% Zn, 0.4 g/t Au, and 7.4 g/t Ag for Indicated Resources, and 15.9 million tonnes at 0.69% Cu, 0.84% Zn, 0.3 g/t Au, and 5.8 g/t Ag for Inferred Resources [9]. - The project features a large alteration system with over 30 km of strike length containing numerous massive sulphide deposits [9]. Financial Support - The company has received over $500,000 in grants from the Manitoba Mineral Development Fund in the past year, indicating strong provincial support [9].