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China and the Philippines have each unfurled their national flags on tiny sandbars in the South China Sea, staking competing sovereignty claims in strategic waters seen as a potential flashpoint for global conflict.

The rival photo opportunities unfolded on Sandy Cay, a string of three uninhabited sandbars which lie near a Philippine military outpost in the disputed Spratly Islands.

The release of the images comes as US and Philippine forces hold their largest-ever annual joint military drills in nearby waters – and just weeks after US Defense Secretary Pete Hegseth vowed to enhance America’s military alliance with the Philippines to “reestablish deterrence” to counter “China’s aggression” in the region – during his first trip to Asia.

Bracketed by China and several Southeast Asian nations, parts of the vital South China Sea are claimed by multiple governments, but Beijing has asserted ownership over almost all of the waterway, in defiance of an international court ruling.

Over the past two decades, China has occupied a number of obscure reefs and atolls far from its shoreline across the South China Sea, building up military installations, including runways and ports.

The public relations wrestling match over Sandy Cay risks further stoking long-running tensions between the Philippines and China. It also poses a key test to the Trump administration on how it will respond, especially as key cabinet officials have repeatedly emphasized the need for the US to focus its attention and resources on countering China’s ambitions in the Indo-Pacific region.

Competing claims

The latest maritime dispute surfaced last week, when China’s state-controlled media claimed that China Coast Guard “implemented maritime control” and “exercised sovereign jurisdiction” over Tiexian Reef – the Chinese name for Sandy Cay – in mid-April.

A photo aired on China’s state broadcaster Saturday showed four Chinese officers in black uniforms walking along the white sandbar as a fifth officer held an inflatable boat by the water. Another photo showed four officers holding up a Chinese flag in what the broadcaster described as “a show of sovereignty.”

“China Coast Guard officers landed on Tiexian Reef to conduct patrols and recorded video evidence of the illegal activities carried out by the Philippine side,” said the state broadcaster CCTV. It added that the officers also cleaned up leftover plastic bottles, wooden sticks and other debris on the reef.

The Philippines was quick to unleash its own publicity move in response, sending teams to multiple sandbars.

On Sunday, a spokesperson for the Philippines Coast Guard said the country’s navy, coast guard and police deployed four teams in rubber boats to Pag-asa Cay 1, Cay 2 and Cay 3 – names the Philippines uses to refer to Sandy Cay.

During the inter-agency operation, the officers “observed the illegal presence” of a nearby China Coast Guard vessel and seven Chinese maritime militia vessels.

An image posted by Philippines Coast Guard spokesperson, Jay Tarriela, on X showed five officers holding the national flag on a white sandbar.

In a statement late on Sunday night, a spokesperson for the China Coast Guard said six personnel from the Philippines had “illegally landed” on the Tiexian Reef despite “warnings and dissuasion” from the Chinese side.

“China Coast Guard law enforcement officers then boarded the reef to verify and deal with the situation in accordance with the law,” spokesperson Liu Dejun said, urging the Philippines to “immediately stop its infringement.”

At a press conference Monday, Tarriela said each team had brought with them a Philippine flag to pose for photos on the sandbars on early Sunday morning.

“The other objective of our operation is to check whether the Chinese government installed different infrastructure or monitoring devices or whatsoever,” Tarriela told reporters.

“(From) the photos and videos we have already, we can totally debunk the lie and disinformation the People’s Republic of China that they have already occupied the Pag-asa cays.”

Military alliance

Confrontations between China and the Philippines in the contested waters have become increasingly fraught in recent years, fueling fears of a global conflict that could drag in the US, a mutual defense ally of Manila.

Sandy Cay lie near Thitu Island, known as Pag-asa Island by Manila and the site of a Philippines military facility. In 2023, Manila opened a coast guard monitoring base there to counter what it called Chinese aggression in the vital waterway.

Under the Biden administration, US officials repeatedly assured the Philippine that the US would come to its defense if attacked in the South China Sea.

US President Donald Trump is a more mercurial figure who has long viewed historical US agreements through a more mercantile lens and has called for allies to pay more for protection.

But Trump’s cabinet contains vocal China hawks, notably Hegseth and Secretary of State Marco Rubio, who have both spoken publicly on needing to push back against China’s growing assertiveness in the South China Sea.

On April 21, the US and the Philippines kicked off their annual Balikatan – meaning “shoulder to shoulder” – military exercises, which are expected to run for three weeks and have grown in scale each year.

This year, the US military has deployed an anti-ship missile launcher for the first time on the northern tip of the Philippine archipelago, just across the strait from Taiwan, a self-governing democracy Beijing has vowed to take by force if necessary.

The Philippines also hosted Japanese forces as full-fledged participants for the first time as party of the multinational military drills, a sign of strengthening security cooperation between Manila and Tokyo.

This post appeared first on cnn.com

Yemen’s Houthi rebels on Monday alleged a US airstrike hit a prison holding African migrants, killing at least 68 people and wounding 47 others. The US military had no immediate comment.

The strike in Yemen’s Saada governorate, a stronghold for the Houthis, is the latest incident in the country’s decadelong war to kill African migrants from Ethiopia and other nations who risk crossing the nation for a chance to work in neighboring Saudi Arabia.

It also likely will renew questions from activists about the American campaign, known as “Operation Rough Rider,” which has been targeting the rebels as the Trump administration negotiates with their main benefactor, Iran, over Tehran’s rapidly advancing nuclear program.

The US military’s Central Command, in a statement early Monday before news of the alleged strike broke, sought to defend its policy of offering no specific details of its extensive airstrike campaign. The strikes have drawn controversy in America over Defense Secretary Pete Hegseth’s use of the unclassified Signal messaging app to post sensitive details about the attacks.

“To preserve operational security, we have intentionally limited disclosing details of our ongoing or future operations,” Central Command said. “We are very deliberate in our operational approach, but will not reveal specifics about what we’ve done or what we will do.”

It did not immediately respond to questions from The Associated Press about the alleged strike in Saada.

Graphic footage shows aftermath

Graphic footage aired by the Houthis’ al-Masirah satellite news channel showed what appeared to be dead bodies and others wounded at the site. The Houthi-run Interior Ministry said some 115 migrants had been detained at the site.

The rebels’ Civil Defense organization said at least 68 people had been killed and 47 others wounded in the attack.

Footage from the site analyzed by the AP suggested some kind of explosion took place there, with its cement walls seemingly peppered by debris fragments and the wounds suffered by those there.

A woman’s voice, soft in the footage, can be heard repeating the start of a prayer in Arabic: “In the name of God.” An occasional gunshot rang out as medics sought to help those wounded.

African migrants caught in middle

Ethiopians and other African migrants for years have landed in Yemen, braving the war-torn nation to try and reach Saudi Arabia for work. The Houthi rebels allegedly make tens of thousands of dollars a week smuggling migrants over the border.

Migrants from Ethiopia have found themselves detained, abused and even killed in Saudi Arabia and Yemen during the war. An Oct. 3, 2022, letter to the kingdom from the U.N. said its investigators “received concerning allegations of cross-border artillery shelling and small arms fire allegedly by Saudi security forces, causing the deaths of up to 430 and injuring 650 migrants.”

Saudi Arabia has denied killing migrants.

Monday’s alleged strike recalled a similar strike by a Saudi-led coalition battling the Houthis back in 2022 on the same compound, which caused a collapse killing 66 detainees and wounding 113 others, a United Nations report later said. The Houthis shot dead 16 detainees who fled after the strike and wounded another 50, the U.N. said. The Saudi-led coalition sought to justify the strike by saying the Houthis built and launched drones there, but the U.N. said it was known to be a detention facility.

“The coalition should have avoided any attack on that facility,” the U.N. report added.

That 2022 attack was one of the deadliest single attacks in the years long war between the coalition and the Houthi rebels and came after the Houthis struck inside the UAE twice with missiles and drones, killing three in a strike near Abu Dhabi’s international airport.

US military: 800 strikes conducted so far

Meanwhile, US airstrikes overnight targeting Yemen’s capital killed at least eight people, the Houthis said. The American military acknowledged carrying out over 800 individual strikes in their monthlong campaign.

The overnight statement from Central Command also said “Operation Rough Rider” had “killed hundreds of Houthi fighters and numerous Houthi leaders,” including those associated with its missile and drone program. It did not identify any of those officials.

“Iran undoubtedly continues to provide support to the Houthis,” the statement said. “The Houthis can only continue to attack our forces with the backing of the Iranian regime.”

“We will continue to ratchet up the pressure until the objective is met, which remains the restoration of freedom of navigation and American deterrence in the region,” it added.

The US is targeting the Houthis because of the group’s attacks on shipping in the Red Sea, a crucial global trade route, and on Israel. The Houthis are also the last militant group in Iran’s self-described “Axis of Resistance” that is capable of regularly attacking Israel.

US discusses deadly port strike

The US is conducting strikes on Yemen from its two aircraft carriers in the region — the USS Harry S. Truman in the Red Sea and the USS Carl Vinson in the Arabian Sea.

On April 18, an American strike on the Ras Isa fuel port killed at least 74 people and wounded 171 others in the deadliest-known attack of the American campaign. Central Command on Monday offered an explanation for why it hit the port.

“US strikes destroyed the ability of Ras Isa Port to accept fuel, which will begin to impact Houthi ability to not only conduct operations, but also to generate millions of dollars in revenue for their terror activities,” it said.

Meanwhile, the Houthis have increasingly sought to control the flow of information from the territory they hold to the outside world. It issued a notice Sunday that all those holding Starlink satellite internet receivers should “quickly hand over” the devices to authorities.

“A field campaign will be implemented in coordination with the security authorities to arrest anyone who sells, trades, uses, operates, installs or possesses these prohibited terminals,” the Houthis warned.

Starlink terminals have been crucial for Ukraine in fighting Russia’s full-scale invasion and receivers also have been smuggled into Iran amid unrest there.

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Nearly nine years after billionaire reality TV star Kim Kardashian was bound, gagged and robbed at gunpoint during Paris Fashion Week, the trial of nine men and one woman accused of carrying out the dramatic heist opened Monday at a packed courthouse in the French capital.

The case centers on the October 2016 theft of nearly $10 million in cash and jewelry, including a $4 million engagement ring that was never recovered. The defendants, who range in age from their 30s to their 70s, are facing charges including armed robbery, kidnapping and conspiracy. Eight of them deny involvement, while two have admitted to lesser offenses.

As the trial proceedings began, several of the defendants, including Aomar Ait Khedache and Yunice Abbas, made their way into the courtroom. Ait Khedache, often alleged to be the mastermind of the robbery, entered with the support of a cane and wearing hearing aids.

The defendants’ families arrived moments later, taking their seats next to the press.

The robbery unfolded just before 3 a.m. at the “No Address” hotel, a discreet luxury residence in Paris where Kardashian was staying. Disguised as police officers, the thieves forced the concierge to lead them to Kardashian’s apartment, where they tied her up at gunpoint. According to court documents, the group tracked Kardashian’s movements through her social media posts, helping them to orchestrate the attack.

Kardashian is scheduled to testify on May 13, when she will face the alleged robbers in court for the first time. A heightened police presence is expected outside the courthouse during her appearance.

The trial has been delayed for years partly because of major cases like those related to the 2015 Paris terrorist attacks.

Of the original 12 suspects, one has since died and another defendant who has Alzheimer’s disease has been ruled unfit to stand trial. If convicted, some of the remaining defendants could face up to 30 years in prison.

The trial is scheduled to run through May 22, with a verdict expected on May 23.

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A widespread and unexplained power outage knocked out electricity in most of Spain and Portugal on Monday, shutting off traffic lights and causing chaos at airports, train stations and on the roads.

Portugal’s grid operator Redes Energéticas Nacionais (REN) said electrical supply was lost across the entire Iberian peninsula, and in parts of France, on Monday. It could be several hours until power is fully restored, Spain’s grid operator said, meaning parts of the two countries could be plunged into darkness once the sun sets.

The outage took out screens, lighting and power sockets, and caused traffic lights and subway systems to suddenly fail. Some power began to trickle back across Spain hours later, but efforts to fully revive the grid and to investigate the cause have not yet been successful.

The cause of the blackout was unclear, but its impact was dramatic: transport hubs shuttered and governments in both countries, which share a population of around 60 million people, hastily co-ordinated a response.

Madrid’s mayor José Luis Martinez Almeida asked people to minimize their movements and only call emergency services if it was truly urgent. He also called on people to stay clear of the roads for emergency workers. Later in the day, Madrid’s emergency services provider urged the country’s government to declare a national emergency.

Portugal’s grid operator said restoring power was a “complex operation.”

“At the moment it is impossible to predict when the situation will be normalized,” it said.

Efforts could stretch into the night. “The experience of other similar events that have taken place in other countries indicate to us that this process – the total reestablishment of the electrical supply – will take several hours, Eduardo Prieto, director of services for system operation at Red Eléctrica, had earlier told broadcaster La Sexta.

“We could be talking about six to 10 hours, if everything goes well, until we reestablish supply to every last customer,” he said.

Dozens of Iberian cities, like Madrid, Lisbon, Barcelona, Seville and Valencia, are major hubs for transport, business and tourism. Two of the five busiest airports in the European Union in 2023 were Madrid’s and Barcelona’s, according to EU data.

Portugal’s National Institute for Medical Emergencies said it had “activated its contingency plan,” running its telephone and IT systems through a back-up generator. Spain’s health ministry said the same process happened in hospitals there.

But flights at major airports in the region were suddenly delayed or cancelled, with travelers scrambling to adapt; online flight trackers reported that several airports saw their frequent departures suddenly halted after midday. Portugal’s flag carrier TAP Air Portugal told people not to travel to the airport until further notice.

Spanish train operator Renfe said trains had stopped and departures were canceled. And in subway tunnels, passengers were plunged into darkness. Video posted on social media showed blackened subway cars stuck in standstill on platforms in Madrid, where the metro was suspended and entrances to stations were taped off.

Sporting events were impacted too. Tennis fans at the Madrid Open filed out of courts after the outage caused play to be suspended.

Some parts of southern France, near the Spanish border, felt a more sporadic impact.

This is a developing story and will be updated.

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Israel on Monday boycotted a hearing at the United Nations’ top court on its decision to ban a UN aid agency that has served millions of Palestinians since it was established in 1949.

The hearings will look at Israel’s obligations, both as a member of the United Nations and as an occupying power, toward the United Nations Relief and Works Agency for Palestine Refugees (UNRWA). The aid agency provides education, healthcare and social services to nearly 6 million Palestinian refugees across the Middle East.

The hearings at the International Court of Justice (ICJ), which began in The Hague on Monday following a request by the UN General Assembly, are scheduled to last all week, with 40 countries, including the United States, set to speak as part of the proceedings. The ICJ will issue an advisory opinion about Israel’s obligations at a later stage, after the hearings conclude.

The court’s advisory opinions have no binding force, but they carry tremendous significance. They are “often an instrument of preventive diplomacy and help to keep the peace,” according to the court. They also help interpret and shape international law.

Israeli Foreign Minister Gideon Sa’ar called it “another shameful proceeding” designed to delegitimize his country. Speaking at a press conference in Jerusalem in lieu of the hearing on Monday, Sa’ar accused UNRWA of being “an organization that is infested with Hamas terrorists.” He said Israel had submitted its written position but would not take part in “this circus.”

UNRWA has repeatedly denied these accusations in the past, saying there is “absolutely no ground for a blanket description of ‘the institution as a whole’ being ‘totally infiltrated.’”

At the opening of the hearings on Monday, the UN’s legal counsel said Israel had a clear obligation as an occupying force to allow and facilitate humanitarian aid for Gazans.

“In the specific context of the current situation in the occupied Palestinian Territories, these obligations entail allowing all relevant UN entities to carry out activities for the benefit of the local population,” Elinor Hammarskjöld said.

Ammar Hijazi, the Palestinian representative at the hearing, said “there can be no doubt about the court’s jurisdiction in these proceedings,” pointing to two previous ICJ cases involving Israel.

In January 2024, the ICJ ruled that Israel must take “all measures” to prevent a genocide in Gaza. Then in June, it said in an advisory opinion that Israel’s occupation of the West Bank, East Jerusalem and Gaza is illegal.

“Israel is starving, killing and displacing Palestinians, while also targeting and blocking humanitarian organizations trying to save their lives,” Hijazi said.

Amir Weissbord, an official with Israel’s foreign ministry, claimed on Monday that “1,462 UNRWA workers in Gaza are confirmed terrorists,” which he said was based on intelligence. Israel has not provided evidence to support the accusation of such a high number. Weissbord said the number would be even higher once Israel began looking into UNRWA’s female employees.

After the Hamas-led October 7, 2023 attacks, Israel alleged that 12 of UNRWA’s 14,000 staffers in Gaza were involved in the assault. A subsequent UN investigation found that nine employees “may have” been involved in the attack. UNRWA said at the time that their contracts had been terminated.

‘Campaign to discredit UNRWA’

In October, Israel’s parliament passed a law banning UNRWA from activity within Israel and revoking the 1967 treaty that allowed the agency to carry out its mission. The ban was expected to severely restrict UNRWA’s ability to operate in Gaza, the occupied West Bank and East Jerusalem.

UNRWA Commissioner-General Philippe Lazzarini said at the time that the move violated international law and was “the latest in the ongoing campaign to discredit UNRWA and delegitimize its role toward providing human-development assistance and services to Palestine refugees.”

In early April, Israel raided six UNRWA schools in East Jerusalem, ordering them to close within 30 days. Lazzarini promised that the agency would not be cowed by Israel’s actions.

“UNRWA is committed to stay & deliver education and other basic services to Palestine Refugees in the West Bank, including East Jerusalem, in accordance with the General Assembly resolution mandated to the Agency,” he said on social media.

Israeli Prime Minister Benjamin Netanyahu had been pushing to dismantle UNRWA well before the October 7 attacks, arguing that the agency perpetuates the Palestinian “refugee problem.” UNRWA’s definition of Palestinian refugees includes the descendants of those Palestinians who were forced out of their homes during Israel’s creation in 1948. Israeli officials have rejected that definition, arguing that descendants don’t qualify as refugees and thus don’t have the right to return to their ancestral homes in what is now Israel.

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Nutritional Growth Solutions Limited (ASX:NGS) (‘NGS’ or ‘the Company’), is pleased to announce that it has received binding commitments for the issue of 1,000,000 convertible notes (Placement CNs), to be issued at $1.00 each (CN Placement).

HIGHLIGHTS

  • NGS has secured commitments of A$1.0 million under a placement of convertible notes.
  • Each investor who is issued with ordinary shares on conversion of the convertible notes will be issued with one option for each fully paid ordinary share that is issued on conversion of the convertible notes, with that issuance of options to take place on the same date as the ordinary share issuance date. This is expected to be within 10 business days of NGS shareholders approving that issuance of options including for the purposes of ASX Listing Rule 7.1. These options will be exercisable on a 1:1 basis into fully paid ordinary shares in NGS at an exercise price of $0.04 per option, and will expire 3 years following their issue date if they have not been exercised during that 3 year period.
  • The placement of convertible notes was supported by Australian sophisticated and professional investors.
  • Funds raised from the placement of convertible notes will be used to purchase inventory for retail expansion in CVS and Wakefern, as well as working capital and corporate expenses.

The offer of the Placement CNs was made to sophisticated and professional investors in Australia and successfully closed, achieving binding commitments of A$1.0 million.

Stephen Turner, NGS CEO and Managing Director, commented on the CN Placement:

“We are very pleased with the strong support shown by investors in this placement, which provides important growth capital to support our retail expansion into leading U.S. retailers, including CVS and Wakefern. We would like to thank our shareholders for their ongoing support as we execute our growth strategy and build on the momentum from our recent distribution achievements.”

The conversion of the convertible notes into fully paid ordinary shares in NGS will take place at a price of between A$0.03 and A$0.025 per ordinary share within 10 business days of NGS shareholders approving their conversion including for the purposes of ASX Listing Rule 7.1. NGS expects to convene a general meeting of its shareholders to consider whether to approve the conversion of the convertible notes into fully paid ordinary shares in NGS and whether to approve the issuance of options within the next few weeks.

Until the convertible notes are converted into ordinary shares or redeemed, they bear interest which is payable quarterly in arrear at either 10% per annum (if the holder of the convertible notes elects not to receive ordinary shares in NGS in lieu of cash interest), or 15% per annum (if the holder of the convertible notes elects to receive ordinary shares in NGS in lieu of cash interest). Issuance of ordinary shares in NGS in lieu of cash interest is subject to NGS being in compliance with the ASX Listing Rules. If the convertible notes have not been converted by the date that is 2 years after their issue date, they will be redeemed by NGS at their issue price.

Each investor who is issued with ordinary shares on conversion of the convertible notes will be issued with one option for each fully paid ordinary share that is issued on conversion of the convertible notes, with that issuance of options to take place on the same date as the ordinary share issuance date. This is expected to be within 10 business days of NGS shareholders approving that issuance of options including for the purposes of ASX Listing Rule 7.1. These options will be exercisable on a 1:1 basis into fully paid ordinary shares in NGS at an exercise price of $0.04 per option, and will expire 3 years following their issue date if they have not been exercised during that 3 year period (the CN Holder Options). Quotation of the CN Holder Options on the ASX will be sought.

USE OF PROCEEDS

The net proceeds from the issue of the convertible notes are planned to be used in the following areas:

LEAD MANAGER OPTIONS

The Company engaged GBA Capital Pty Ltd (AFSL 544680) to act as lead manager for the CN Placement (Lead Manager).

Under the terms of the mandate with the Lead Manager, the Lead Manager will be issued with 30% of the number of CN Holder Options (the Lead Manager Options). The Lead Manager Options will be exercisable on a 1:1 basis into fully paid ordinary shares in NGS at an exercise price of $0.04 per Lead Manager Option. The Lead Manager Options will expire 3 years following their issue date if they have not been exercised during that 3 year period.

The Lead Manager Options will be issued within 10 business days of NGS shareholders approving that issuance including for the purposes of ASX Listing Rule 7.1. NGS expects the Lead Manager Options to be issued at the same time as the issuance of the CN Holder Options. Quotation of the Lead Manager Options on the ASX will be sought.

Click here for the full ASX Release

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The American economy may be heading toward stagflation, an environment characterized by high inflation, slowing growth and rising unemployment, US Federal Reserve Chair Jerome Powell cautioned earlier this month.

‘Unemployment is likely to go up as the economy slows in all likelihood, and inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public,’ Powell said during an April 15 appearance in Chicago.

While he was careful not to use the word ‘stagflation,’ experts have pointed out that the circumstances Powell outlined correspond with its definition, thrusting the term back into public discourse.

But what exactly is stagflation, and why is it such a concern for investors? Read on to find out.

What is stagflation?

Stagflation describes the economic scenario where inflation remains high even as economic growth slows and unemployment rises. Stagflation is a rare occurrence, and contradicts the foundational economic belief that inflation typically rises during economic booms and falls during recessions.

The term was coined by British politician Iain Macleod in 1965 and became infamous during the 1970s oil crisis, when a dramatic spike in oil prices triggered both rising costs and shrinking output across much of the global economy.

In simple terms, stagflation means you’re paying more for everything while earning less; at the same time, finding a new job, or even keeping your current one, becomes more difficult.

The misery index, created to measure such bleak periods, adds the unemployment rate to the inflation rate. During the worst of the 1970s, it exceeded 20. As of March 25, 2025, it stood at around 6.6, with inflation at 2.4 percent and unemployment at 4.2 percent. Many economists fear that number could rise quickly if current trends continue.

Why are experts sounding the alarm on stagflation?

A combination of geopolitical shocks, fragile supply chains and new economic policies — particularly a sweeping series of tariffs enacted by the Trump administration — has created a perfect storm, economists say.

The tariffs include a 10 percent universal tax on all imports, up to 25 percent duties on goods from Canada and Mexico and a staggering 245 percent tariff on imports from China. These are not minor adjustments — they are foundational changes to the pricing structure of the US consumer and business marketplace.

‘The level of the tariff increases announced so far is significantly larger than anticipated,’ Powell said in a written statement from his Chicago appearance that was published on April 16. ‘The same is likely to be true of the economic effects, which will include higher inflation and slower growth.’

In other words, the tariffs act as a supply shock: They make it more expensive to bring goods into the country, which businesses pass on to consumers through price hikes. At the same time, higher costs can lead companies to cut back on investment and hiring, slowing the economy and increasing job losses.

“The Trump White House tariff policy has certainly increased the risk of both higher inflation and lower growth,” Brett House, professor of professional practice in economics at Columbia Business School, told CNBC.

To better understand what’s at stake, economists are looking at the 1970s — a decade that was marked by an oil embargo, skyrocketing prices and stagnant economic activity.

In response, then-Fed Chair Paul Volcker aggressively hiked interest rates, with the federal funds rate peaking at nearly 21 percent in 1981. The move ultimately tamed inflation, but plunged the country into two recessions.

That painful cure became the playbook for handling runaway prices, with central banks committing to maintaining credibility and acting decisively, even at the cost of job losses.

“The Fed’s credibility in keeping inflation low and stable, won over decades, kept longer-term inflation expectations stable,” Fed Governor Adriana D. Kugler said in a recent statement.

Still, today’s economic landscape differs from the 1970s in critical ways. The US is no longer as dependent on foreign oil. And labor unions, once a powerful driver of wage spirals, now represent a smaller portion of the workforce.

However, these differences might not offer much protection. While oil prices are less of a concern today, tariff-induced uncertainty could have a similar chilling effect.

How does stagflation impact everyday life?

For most people, stagflation translates into economic whiplash.

Essentially, prices go up, wages don’t keep pace and job security becomes tenuous. According to Forbes, a rising misery index would create a whole new roster of challenges for the everyday person.

To illustrate, people will likely have to spend more to get the same quantity of food, clothes and gas. Employees’ chances of getting laid off or working fewer hours will increase. For recent college graduates, the job market could become especially brutal. For families, the cost of borrowing — whether to buy a home, finance a car or use a credit card — could rise steeply if the Fed chooses to raise interest rates to combat inflation.

Diane Swonk, chief economist at KPMG, described today’s environment as having a “whiff of stagflation,” where people feel less secure about their financial future, even if the economic statistics haven’t fully caught up to the sentiment.

Is stagflation a certainty?

Not all economists agree that stagflation is inevitable, or that it will reach the same severity as in the 1970s.

Still, concerns are growing. Michael Feroli, JPMorgan Chase & Co.’s (NYSE:JPM) chief US economist, issued a warning earlier this month, stating the bank now expects a recession in 2025.

He predicts unemployment will rise to 5.3 percent, while a core measure of inflation will reach 4.4 percent, which he described as a “stagflationary forecast.”

KPMG also projects a shallow recession, with inflation peaking at the end of the third quarter. But even a modest downturn could be painful for vulnerable workers and households already stretched thin by pandemic-era economic disruptions and the fading buffer of savings built up during that time.

What does stagflation mean for investors?

Stagflation presents a complex and often discouraging landscape for investors.

Unlike recessions, where bonds tend to do well as interest rates fall, stagflation often erodes the value of both stocks and bonds. In such periods, equities can suffer from declining corporate profits due to rising input costs, as well as weakening consumer demand, creating varied headwinds for the stock market.

At the same time, high inflation erodes the real value of future earnings, often leading to downward pressure on stock prices, particularly for growth-oriented companies whose valuations depend heavily on projected future cashflow.

Bonds, too, become vulnerable. Inflation eats into the fixed income stream provided by bonds, especially longer-term bonds. As inflation rises, the purchasing power of interest payments declines, and yields on newly issued bonds increase to compensate investors, driving down the market value of existing lower-yield bonds.

This was evident during the 1970s, the last prolonged period of US stagflation. At that time, both the S&P 500 (INDEXSP:.INX) and US treasuries experienced prolonged periods of underperformance in real terms.

Gold, on the other hand, surged in value as investors sought assets that could maintain their purchasing power amid inflation and economic uncertainty. The price of gold increased more than 1,000 percent from 1971 to 1980, reflecting its appeal as a hedge during economic stress. Commodities more broadly — such as oil, agricultural products and industrial metals — have historically performed better in stagflationary conditions.

Since commodities prices are a direct input into inflation measures, they tend to rise during inflationary periods, particularly when inflation is driven by supply shocks. For instance, in the 1970s, oil prices quadrupled following the OPEC embargo, delivering significant gains for energy producers and commodity-focused investors.

Still, it’s worth noting that no single asset or strategy is immune to the pressures of stagflation. While diversification, inflation hedging and a focus on quality assets are time-tested approaches, the unique combination of rising prices and faltering growth challenges even seasoned investors.

Investor takeaway

Stagflation is not just an economic term from the past — it may soon be a lived reality for millions and even billions.

With tariffs reshaping trade dynamics in real time, inflation hovering stubbornly above the Fed’s target and job growth showing signs of slowing, the conditions are set for a troubling period ahead.

Whether or not future policymaking can steer the economy away from this outcome remains to be seen. For now, consumers, businesses and investors alike would do well to prepare for the reality that stagflation brings — not just a historical anomaly, but a modern economic threat.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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(TheNewswire)

Silver Crown Royalties Inc. ( Cboe: SCRI, OTCQX: SLCRF, BF: QS0 ) ( ‘Silver Crown’ ‘SCRi’ the ‘Corporation’ or the ‘Company’ ) is pleased to announce that the Company has successfully closed the third and final tranche (‘ Final Tranche ‘) of its non-brokered offering of units ( ‘Units’ ) that was previously announced on February 6, 2025 (the ‘Offering’ ) and issued 89,400 Units at a price of C$6.50 per Unit, for gross proceeds of approximately C$581,100

Each Unit consists of one common share ( ‘Common Share’ ) and one Common Share purchase warrant ( ‘Warrant’ ), with each Warrant exercisable to acquire one additional Common Share at an exercise price of C$13.00 for a period of three years from the closing date. A total of 232,248 Units were issued in accordance with the Offering for cumulative gross proceeds of C$1,509,615.

The proceeds from the Final Tranche will be used to partially fund the second tranche of the Company’s silver royalty acquisition on the Igor 4 project in Peru, as well as general and administrative expenses. All securities issued are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. The closing was subject to customary conditions, including the approval of Cboe Canada Inc.

Regarding the receipt of payments from the Company’s producing royalties, Silver Crown expects to receive cash payments equivalent to approximately 6,703 ounces of silver in the first quarter of 2025. This is driven by the early payment of the PPX/Igor 4 royalty as well as payments under the Elk Gold Royalty.

ABOUT Silver Crown Royalties INC.

Founded by industry veterans, Silver Crown Royalties ( Cboe: SCRI | OTCQX: SLCRF | BF: QS0 ) is a publicly traded, silver royalty company. Silver Crown (SCRi) currently has four silver royalties of which three are revenue-generating. Its business model presents investors with precious metals exposure that allows for a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. SCRi endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders. For further information, please contact:

Silver Crown Royalties Inc.

Peter Bures, Chairman and CEO

Telephone: (416) 481-1744

Email: pbures@silvercrownroyalties.com

FORWARD-LOOKING STATEMENTS

This release contains certain ‘forward looking statements’ and certain ‘forward-looking information’ as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as ‘may’, ‘will’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘plans’ or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include, but are not limited to, the proceeds from the Final Tranche will be used to partially fund the second tranche of the Company’s silver royalty acquisition on the Igor 4 project in Peru, as well as general and administrative expenses. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi’s business, operations and financial condition, loss of key employees. SCRi has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.

This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

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Q1 2025 Operational and Financial Highlights

  • Gold equivalent ounce (‘GEO’) production of 9,082 GEOs and sales of 8,034 GEOs for Q1 2025. The Company is on track to achieve annual sales guidance of 31,000 to 41,000 GEOs for 2025
  • Preliminary interim consolidated cash costs of US$1,175-1,275 per GEOs sold and consolidated all-in sustaining costs (‘AISC’) of US$1,375-1,475 for Q1 2025. The Company is on track to achieve its annual cash cost guidance range of US$1,800-1,900 per GEOs sold and AISC of US$1,950-2,100 per GEOs sold
  • Average sale price of US$2,875 per ounce of gold for Q1 2025
  • Closing of the quarter with US$27M in cash and no debt

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) (‘Heliostar’ or the ‘Company’) is pleased to report preliminary interim results for the three months ended March 31, 2025 (‘Q1 2025’), which corresponds to the fourth quarter of Heliostar’s fiscal reporting year 2024-25.

The Company plans to host a corporate update webinar on May 13th, 2025, at 8:00AM Pacific Time/11:00AM Eastern Time. Full fiscal year-end reporting is anticipated in late July 2025.

Heliostar CEO, Charles Funk, commented, ‘The first quarter of 2025 was a very strong, first full quarter of production for the Company. We restarted production at La Colorada, fully paid off the acquisition debt and returned lower costs than budgeted.

‘In Q2, production is expected to decrease due to drawdown of inventory on the leach pad at San Agustin prior to a planned restart of primary mining activities later in 2025. We remain well on track to meet our production and cost guidance for 2025.

‘Heliostar exited the quarter with a strong cash balance of US$27M. This allows us to expand the drilling program at La Colorada and commence the Company’s largest drilling campaign at our flagship Ana Paula project, where we see potential to increase the high-grade underground resource.

‘Looking forward, in Q2, we are focused on delivering an updated technical report to support a planned increase in production at La Colorada and completing the permitting to allow for the restart of mining at San Agustin. The Company intends to utilize the cash flow from operations to increase annual gold production from both producing mines, as well as build Ana Paula with minimal equity dilution.’

Operational and Financial Results1

Key Performance Metrics La Colorada San Agustin El Castillo Total
Ore processed 2 t ore 959,365 ——- —— 959,365
Gold production 3 oz Au 4,109 4,412 257 8,777
Silver production3 oz Ag 18,279 8,595 546 27,421
GEO production 4 oz GEO 4,312 4,507 263 9,082
Gold sold oz Au 3,112 4,172 497 7,781
Silver sold oz Ag 12,468 9,936 523 22,927
GEO sold 4 oz GEO 3,250 4,282 502 8,034
Cash Cost 5 US$/GEO sold 1,175-1,275
All-In Sustaining Cost (AISC) 5 US$/GEO sold 1,375-1,475
Cash and cash equivalents US$ 26,900,000

 

Notes:

  1. Results are preliminary in nature and subject to final reconciliation.
  2. Production from San Agustin and El Castillo from re-leaching.
  3. Metals production before payable deductions.
  4. GEO production and GEO sold are based on weighted average sale prices for Q1 2025 of US$2,875/oz Au and US$31.95/oz Ag.
  5. These measures are non-IFRS financial measures.

Non-IFRS Measures.This news release refers to certain financial measures, such as all-in sustaining cost, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures as reported by other companies. These measures have been derived from the Company’s financial statements because the Company believes that they are of assistance in the understanding of the results of operations and its financial position. Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the Company’s MD&A for Q4 2024 available on SEDAR+.

Cash costs.The Company uses cash costs per ounce of metals sold to monitor its operating performance internally. The most directly comparable measure prepared in accordance with IFRS is the cost of sales. The Company believes this measure provides investors and analysts with useful information about its underlying cash costs of operations. The Company also believes it is a relevant metric used to understand its operating profitability and ability to generate cash flow. Cash costs are measures developed by metals companies in an effort to provide a comparable standard; however, there can be no assurance that the Company’s reporting of these non-IFRS financial measures are similar to those reported by other mining companies. They are widely reported in the metals mining industry as a benchmark for performance, but do not have a standardized meaning and are disclosed in addition to IFRS financial measures. Cash costs include production costs, refinery and transportation costs and extraordinary mining duty. Cash costs exclude non-cash depreciation and depletion and site share-based compensation.

AISC.AISC more fully defines the total costs associated with producing precious metals. The AISC is calculated based on guidelines published by the World Gold Council (WGC), which were first issued in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance Note in 2018. Other companies may calculate this measure differently because of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus growth capital. Note that in respect of AISC metrics within the technical reports, because such economics are disclosed at the project level, corporate general and administrative expenses were not included in the AISC calculations.

Statement of Qualified Persons

Gregg Bush, P.Eng., and Mike Gingles, Qualified Persons, as such term is defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed the scientific and technical information that forms the basis for this news release and have approved the disclosure herein. Mr. Bush is employed as Chief Operating Officer of the Company, and Mr. Gingles is employed as Vice President of Corporate Development.

About Heliostar Metals Ltd.

Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on increasing production and developing new resources at the La Colorada and San Agustin mines in Mexico, and on developing the 100% owned Ana Paula Project in Guerrero, Mexico.

FOR ADDITIONAL INFORMATION PLEASE CONTACT:

Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com
Phone: +1 844-753-0045

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information
This news release includes certain ‘Forward-Looking Statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 and ‘forward-looking information’ under applicable Canadian securities laws. When used in this news release, the words ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘target’, ‘plan’, ‘forecast’, ‘may’, ‘would’, ‘could’, ‘schedule’ and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: In Q2, production is expected to decrease due to drawdown of inventory on the leach pad at San Agustin prior to a planned restart of primary mining activities later in 2025. We remain well on track to meet our production and cost guidance for 2025. This allows us to expand the drilling program at La Colorada and commence the Company’s largest drilling campaign at our flagship Ana Paula project, where we see potential to increase the high-grade underground resource. Looking forward, in Q2 we are focused on delivering an updated technical report to support a planned increase in production at La Colorada and completing the permitting to allow for the restart of mining at San Agustin. The Company intends to utilize the cash flow from operations to increase annual gold production from both producing mines as well as build Ana Paula with minimal equity dilution.

Forward-looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company’s ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.

These statements reflect the Company’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company’s mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding exploration and mining activities; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption ‘Risk Factors’ in the Company’s public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249931

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