Posted by AGORACOM-JC
at 5:22 PM on Thursday, December 19th, 2019
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The future of nickel: tensions, trade bans and technology
It’s an interesting time for nickel on the global markets
Prices have risen dramatically despite trade tensions between the US and China, and are expected to explode as Indonesia and the Philippines prepare for nickel export bans
With increased demand for stainless steel production and recent
developments in technologies such as electric vehicles, demand for
nickel is higher than ever. Unfortunately, this demand is struggling
against an increasingly tightening supply of the essential metal.
In response to the risk of this increasing demand tightening local
supply, the Indonesian government announced in September 2019 a ban on
the export of raw nickel ores, bringing the ban forward from 2022 to
January 2020.
According to GlobalData analyst David Kurtz, this ban is intended to
produce value-added nickel products, stimulate domestic processing of
ore, and make the country a hub for electric vehicle production.
Indonesia is the largest global producer of nickel and a major
supplier of the metal to China’s stainless steel industry; in
anticipation of the ban, Chinese producers are building up nickel
inventories.
This has increased the price of nickel significantly, with prices at
the end of September 2019 reaching more than $16,000 per tonne, an
increase of more than 60% from January. When the ban was announced,
nickel prices increased by 8.8% to reach a peak of $18,620 per tonne,
the highest price since 2014.
While over half of Indonesia’s nickel is processed in the country,
around 218,000 tonnes of the metal is unprocessed and would be affected
by the ban, which represents around 10% of global demand.
Concerns over supply have led to LME nickel warehouse stock levels
dropping by almost 50% since the announcement of the ban, with Reuters reporting that stocks have fallen to 79,800 tonnes, the lowest since January 2009, as of 24 October 2019.
Potential for the Philippines?
The mining sector in the Philippines is expected to benefit from the
supply gap created by this export ban, with the country’s nickel
industry having suffered in recent years.
As the second-largest producer of nickel, the Philippines accounted for nearly 16% of global production in 2018.
However, production volumes fell sharply in 2016 when the country’s
Department of Environment and Natural Resources launched an audit
process for over 40 metallic mines, resulting in a number of suspensions
and 27 closures. Of these 27 mines, 19 were involved in nickel
production, resulting in a drop in nickel production of over 100kt.
Since the shutdowns, output has steadily increased but has become
dependent on a smaller number of operations, particularly in the mining
region of Caraga. According to Kurtz, the ban in Indonesia “paves the
way for higher exports of nickel from the Philippines to China.â€
However the shutdowns in the Philippines, as well as the lower
quality of nickel ore in the Philippines compared to Indonesia, are
expected to challenge this financial growth. The lower grade of nickel
ore in the Philippines is a particular problem for Chinese operators, as
it affects the ability of nickel pig iron producers to achieve the
necessary purity mix for stainless steel production.
With China being a significant importer of nickel, particularly for
its stainless steel production, the ongoing trade dispute between the US
and China has had a considerable influence on nickel prices.
Prior to the announcement of Indonesia’s export ban, nickel prices
fell steeply in the second half of 2018, but has eased in anticipation
of trade talks later in 2019. Indonesia’s export ban has also allowed
the price of nickel to fare better than other metals such as copper,
avoiding the longer-term financial concerns seen across the resources
sector.
Future prospects
Primary nickel production is forecast to rise by 9-10% in 2019 to
reach 2.4MT, primarily driven by an increase in Indonesia from rising
production in new mines. Demand for nickel in China is expected to grow
over 2.1Mt, as opposed to the 1.6Mt estimated for 2019.
According to analytics from GlobalData, the number of electric
vehicles is expected to increase from 1.6 million in 2018 to 6.8 million
in 2023, and the demand for nickel for lithium-ion batteries is
expected to quadruple over this period from 3-4% in 2019.
With the export bans in place, nickel prices are expected to remain
high while stocks remain low. However, any escalation of the trade
tensions between the US and China could lead to a fall in prices, and
there remains the possibility of Indonesia relaxing their export ban (as
it did previously in 2017 for a ban established in 2014).
This reversal applied to operators working on building processing
capacity, and came about due to losses incurred by stated-owned nickel
exporter PT Aneka Tambang as well as a need to ease the country’s budget
deficit.
Posted by AGORACOM-JC
at 4:29 PM on Thursday, December 19th, 2019
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Gaming Is Key to the Mass Adoption of Crypto
A whole new exciting world of value is being coded into life right now by gamers
While it may be a far cry from the lofty ideals of banking the unbanked and taking down the global banking system, gaming is gearing up to be a massive force in the crypto space
A whole new exciting world of value is being coded into life right
now by gamers. While it may be a far cry from the lofty ideals of
banking the unbanked and taking down the global banking system, gaming
is gearing up to be a massive force in the crypto space.
Addictively fun games will draw a whole new base of users into the
crypto economy. Gamers are an excellent target market for adoption
because many gamers are a touch more tech savvy than the average
internet user and tend to be a bit more open to new ideas.
Just imagine this — a gamer beating a monster, picking up a rare item, selling that item for Ether (ETH)
on a secondary market, and then using that Ether to buy a new hat
online. This creates a whole new network of value that is liquid, fast
and global — and most importantly, taps into gamers’ existing behavior:
playing games.
But for this exciting future to transpire, games need to be fun…
addictively fun. Up until now, most crypto games have been little more
than retro 1980s throwbacks — with very simple graphics and limited
playability — which is nice for nostalgia but will not add anything
significant to the crypto economy. However, a new class of games is
changing this scenario and is set to take crypto games into the leagues
of the truly great online games.
NFTs pave the way
Before looking at some examples, it is important to note that all of
this has been enabled by nonfungible token technology, which allows for
the proliferation of in-game digital assets on public blockchains.
Gaming could possibly be one of the major contributors to the crypto
economy, with game developers making new token standards and technical
developments that benefit the entire ecosystem — as well as the players
of these games generating significant on-chain activity that helps to
feed the miners. So, let us not make the mistake of thinking that crypto
games are not lifting their weight in terms of ecosystem development.
Here are a couple of examples of what is being built and played.
Gods Unchained is bringing the wonder and excitement of a collectible
card game like Magic: The Gathering to Ethereum. Gods Unchained is
graphically enticing and has a great in-game flow of animations that
keep the action rolling. The game has already attracted thousands of players
to tournaments and continues to find a growing community of
enthusiasts. Under the hood, players own the cards that they play with,
storing the unique nonfungible tokens in their Ethereum wallet. Rarity
is provable on-chain, and swaps on the secondary market are seamless. In
February, a card sold for $62,000, which is astonishing for such a new game and really underlines the excitement building around crypto games.
Then, there is the Enjinverse, which is a growing multi-game
experience that allows for in-game items to be used and moved seamlessly
between dozens of games. Enjin itself is one of the most important
cryptocurrencies in the gaming realm. One of the most interesting games
in the Enjinverse is Age of Rust, which is a post-apocalyptic sci-fi
adventure with stunning graphics and an enticing story. Looking at the
popularity of games like Dead Space or Fallout, it becomes clear that
Age of Rust stands a good chance of gaining significant popularity.
While the game itself is exciting, it is the underlying tech that
really makes Age of Rust stand out: Not only are Enjin assets
interoperable between games, but they also have value baked into them.
So, regardless of the long-term outcome of the game itself, the items
you acquire in the game all are forged with Enjin tokens melted into the
in-game asset. These assets can be melted back down at any time,
enabling you to claim the tokens underpinning the value of the item — as
well as creating increased scarcity for the item class, as once it is
melted, that item it gone forever.
Here are some major players to watch. Enjin is working closely with
Unity, which accounts for nearly half of all game developers globally.
Cocos has 1.4 million game developers using its engine, and the launch
of its blockchain is likely to bring many of those developers over. Loom
is focused on interchain operability and on enabling fun, user-facing
games that will draw more users into crypto — with such titles as Neon
District, which is a Blade Runner-esque RPG.
According to the recent research
conducted by a gaming and e-sport analytics provider, the gaming
industry as a whole is expected to be worth $180 billion by 2021, so the
opportunity for crypto gaming is massive. For players, there will be
better experiences; for developers, there will be more tools to attract
players to their games; and for investors, there will be the ability to
own the cryptos that will be at the forefront of a major trend — but
that has not yet taken off.
Posted by AGORACOM-JC
at 12:29 PM on Thursday, December 19th, 2019
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Indian EdTech Unicorn Byju’s Lands $540M to Expand Globally
Indian Edtech firm Byju’s has raised $540 million in funding round led by South Africa’s Naspers Ventures and the CPP Investment Board, the Canada Pension Plan Investment Board.
With this investment, it is aiming to become the world’s most valuable education technology business.
by StartupWorld Staff       Â
Before one year ago, Byju’s revenue expanded to $208 million from $73.2 million. Earlier this year, the Bangalore headquartered startup valued to $5.75 billion in its preceding financing round. By March 31, 2020, it is going to double its income to $422 million. With this new investment, Byju’s will come in the ranking top valuable startups in India like Paytm, Oyo, and Ola.
Founded in 2011 by Byju Raveendran,
Byju’s has become quite popular among students in India. It mainly
focuses on maths and science subjects and around 35 million students in
India are using the app. It has app felicitating Indian regional
languages, and it is also aiming to launch its new version app for
English speaking students in other countries in 2019.
Byju’s had reported a net loss of $4
million on revenue in the last fiscal year. However, this financial year
is very profitable for the company including taxes and all other
expenses in its net profit.
Byju’s simplifies the process of
learning complex subjects to students through its app. The tutors
explain tough theories and calculations through day-to-day experiences.
Currently, it has 2.8 million paying subscribers and 40 million
registered students globally. The app helps students who are pursuing
undergraduate and graduate courses. Besides, it is gaining more
popularity in small towns in India.
Chief operating officer of Byju’s Mrinal Mohit
said that the startup is going to analyze more new products along with
‘Online Tutoring’ to expand its growth and get more profits in the
coming year.
As part of the global expansion, the
startup is planning to enter some of the countries such as the US, UK,
Australia, and New Zealand. This year, it acquired Osmo, a Palo-Alto
based education startup for $120 million. Osmo is popular among 5 to 12
age group children in the US.
Posted by AGORACOM
at 9:56 AM on Thursday, December 19th, 2019
American Creek Resources (TSXV: AMK) (OTC Pink: ACKRF) (the “Corporation” or “American Creek”) is pleased to announce its partner Tudor Gold has concluded the interpretation of a copper-silver mineralized zone, the ‘CS 600 Horizon’,
within the Goldstorm Zone. Composite grades for drill holes GS19-42,
47, 48, 49, 52 and CB18-39 were re-calculated utilizing the copper and
silver grades obtained from the 2019 drill-hole program. These holes are
located in the northeastern-most area of the project. The copper and
silver mineralization contributed greatly to increasing the gold
equivalent content of all drill holes that cut the new copper-rich ‘CS 600 Horizon’.
The largest increase in gold equivalent content to the ‘300 Horizon’
was from GS19-42. The gold-only grade previously reported for the 370.5 m interval was 1.097 gpt Au. After adding the copper-silver mineralization, the gold metal equivalent content has increased to 1.275 gpt Au Eq over the same 370.5metre interval. This was due mainly to the elevated silver grades.
Copper grades were very consistent within the ‘CS 600 Horizon’. Grades ranged from approximately
0.16% Cu to 0.34% Cu over intervals of 69m to 151.5m in holes GS19-42,
47, 48, 49 and 52. These intercepts led to the largest gold equivalent
increases within the Goldstorm System.
Silver grades averaged as high as 10 gpt within both the ‘300 Horizon’ and the ‘CS 600 Horizon’ and the metal appears to occur throughout the entire Goldstorm System.
Vice President of Project Development, Ken Konkin P.Geo. comments:“The
newly discovered copper-rich ‘CS 600 Horizon’ is a very important
feature of the Goldstorm System. The presence of copper and silver
mineralization gives this discovery a true polymetallic nature yet it
remains a gold-dominant project. Copper grades appear to be increasing
with depth within the ‘CS 600 Horizon’. In the following weeks our
technical team will continue to examine the rest of the drill holes to
re-compute the gold-equivalent grades to include copper and silver
throughout the entire system.”
Table l provides gold equivalent composites from
five drill holes completed on three sections that cut the ‘300 Horizon’
and the ‘CS 600 Horizon’ within the Goldstorm System. Although the sixth
hole in this table (CB18-39) did not intersect the ‘CS 600 Horizon’,
the Au Eq composite increased the grade of the intercept by over 11%
within the ‘300 Horizon’. Sections attached demonstrate that the copper
pulse is un-like the main gold mineralization within the ‘300 Horizon’
as the ‘CS 600 Horizon’ appears to be dipping sub-parallel to the main
Treaty Thrust Fault (TTF1) shown in section 111+00 NE. The Company’s
Press Release dated October 24th provides the drill collar data
including drill hole location, elevation, inclination, azimuth and drill
hole length.
* All assay grades are uncut and intervals reflect drilled intercept
lengths. True widths of the mineralization have not been determined. HQ
and NQ2 diameter core samples were sawn in half and typically sampled at
standard 1.5m intervals.
**Prices used to calculate the AuEq metal content are: Gold $1322/oz,
Ag: $15.91/oz, Cu: $2.86/lb. All metals are reported in USD and
calculations do not consider metal recoveries.
The goal is to design a diamond drill hole program that will
fast-track the exploration program for 2020 with the objective to begin
the Mineral Resource Estimate work at the end of the 2020 field season.
Tudor hopes to accomplish as much drilling needed to bring a Measured
and Indicated Mineral Resource Estimate forward as quickly as possible.
Walter Storm, President and CEO, stated: “These
new gold equivalents are extremely encouraging as our technical team
continues to take positive steps advancing Tudor Gold’s flagship Treaty
Creek Au-Ag-Cu project. During the following months our geologist and
engineers will continue to work with the geological model and begin to
prepare the diamond drill hole proposal for 2020 .”
Darren Blaney, President and CEO of American Creek, stated:“The
Goldstorm deposit on Treaty Creek continues to amaze us. Its scale has
grown exponentially over the last two years to close to a billion tonnes
and these recent calculations are giving us a more accurate indication
of the grades within the system. The focus has been on the 300 zone as
it’s a gold enriched area just below the surface giving it great
potential to be open pitted, and now we’re starting to see the
tremendous potential at depth in the CS 600 zone. The Goldstorm is open
at depth and to the north and east which is where these pulses of copper
and silver are becoming more concentrated. With power and the highway
only 20km down the valley, and the deposit increasing in size
exponentially, the Goldstorm truly has the potential to be a world class
deposit.”
The Treaty Creek Project is a Joint Venture with Tudor Gold owning
3/5th and acting as operator. American Creek and Teuton Resources each
have a 1/5th interest in the project. American Creek and Teuton are both
fully carried until such time as a Production Notice is issued, at
which time they are required to contribute their respective 20% share of
development costs. Until such time, Tudor is required to fund all
exploration and development costs while both American Creek and Teuton
have “free rides”.
The Treaty Creek Project lies in the same hydrothermal system as
Pretium’s Brucejack mine and Seabridge’s KSM deposits with far better
logistics.
Drill core samples were prepared at MSA Labs’ Preparation Laboratory
in Terrace, BC and assayed at MSA Labs’ Geochemical Laboratory in
Langley, BC. Analytical accuracy and precision are monitored by the
submission of blanks, certified standards and duplicate samples inserted
at regular intervals into the sample stream by Tudor Gold personnel.
MSA Laboratories quality system complies with the requirements for the
International Standards ISO 17025 and ISO 9001. MSA Labs is independent
of the Company.
Qualified Person
The Qualified Person for this news release for the purposes of
National Instrument 43-101 is the Company’s Vice President of Project
Development, Ken Konkin, P.Geo. He has read and approved the scientific
and technical information that forms the basis for the disclosure
contained in this news release.
American Creek is a Canadian junior mineral exploration company with a
strong portfolio of gold and silver properties in British Columbia.
Three of those properties are located in the prolific “Golden Triangle”;
the Treaty Creek and Electrum joint venture projects with Tudor
Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
The Corporation also holds the Gold Hill, Austruck-Bonanza, Ample
Goldmax, Silver Side, and Glitter King properties located in other
prospective areas of the province.
For further information please contact Kelvin Burton at: Phone: 403 752-4040 or Email: [email protected]. Information relating to the Corporation is available on its website at www.americancreek.com
Posted by AGORACOM
at 3:03 PM on Wednesday, December 18th, 2019
Sprott is eager to believe junior gold miners are on the verge of striking the motherlode, but skeptical of nearly everything else related to the industry
One week before Halloween, Canada’s biggest gold enthusiast,
the septuagenarian billionaire Eric Sprott, wearing a neatly pressed tuxedo,
bounded onto a stage in a downtown Toronto ballroom and accepted his induction
into Canada’s Investment Industry Hall of Fame.
He declared himself both humbled and honoured, and then
rollicked into the wee hours of the night at his home in a nearby tower with
expansive views of the city’s sparkling skyline. The next morning, though 75
and technically retired, he showed up at his office, grumbling about a lack of
sleep, but dressed in a magenta-coloured, paisley button-up, ready for a 9 a.m.
meeting with a penny stock exploration company.
“I keep reading that people are never making (gold)
discoveries, the rate of discoveries is going down,†he said, occasionally
rubbing his temples and closing his eyes. “The funny thing, well, I guess I’m
the sucker then because I keep buying guys who say they’re making discoveries.â€
Just as the price of gold often moves in the opposite
direction of the stock market, Sprott has a strong contrarian streak that means
he also often moves in the opposite direction of the market. For example, this
past spring, after years of middling precious metal prices and declining
discoveries had led most investors to abandon Canada’s gold and silver
explorers, he decided to go all-in.
Sprott launched an investment blitz, the likes of which the
junior mining precious metals sector had seldom seen, doling out somewhere
between $200 and $300 million in a matter of just a few months to acquire large
stakes in about two dozen companies, most of which have never earned a dollar
of revenue
His investments between May and July accounted for about one
in every four dollars raised by junior miners, according to Vancouver-based
market research firm Oreninc. During that time, gold prices started to rise,
breaking through US$1,400 in June for the first time in six years, bringing
some investors back to the major miners — exactly where Sprott doesn’t want to
be.
“They’re the worst place to put money, okay?†he said.
Putting his money where his mouth is, he has been selling his position in Kirkland Lake Gold Ltd., one of, if
not the lowest-cost gold producers and one of the best-performing stocks on the
S&P/TSX Composite Index since 2016.
Sprott was an early investor in Kirkland Lake, was appointed
chairman in 2015, and one year later helped engineer its merger with Newmarket
Gold Inc., a small gold producer in Australia. Not long after, the newly merged
company discovered high-grade veins at two mines, which propelled its stock
upwards to $63 per share.
Many investors pride themselves on not selling when a stock
hits a bump, but Sprott said it is equally important to not sell when the stock
rises, at least not until it’s gone up five or even 10 times, a so-called
tenbagger.
“I’ve had lots of tenbaggers and the important thing is to
stay in it,†he said.
But when his stake in Kirkland Lake reached about $1.3
billion earlier this year, and it looked like gold prices would keep rising,
Sprott said he decided it was time to sell.
“Here’s what I say to the management of Kirkland Lake: you
will not be the No. 1 performing stock this year,†he said during an interview
in October. “You will not be, because companies like Eldorado (Gold Corp.) and
Detour (Gold Corp.) are going to kick your butt.â€
And yet, Sprott — who found out about the deal on a day he
was meeting with a junior mining company seeking investment — elected to
support the deal, and waxes enthusiastic about Detour.
It’s one of the reasons why Sprott doesn’t much care about Canada’s major gold miners.
The
best-run companies might provide 20- or 30-per-cent returns, or maybe
100 per cent in a few cases, but Sprott would rather invest in a company
that might strike gold and give him a 500-per-cent return, or even a
coveted 1,000-per-cent return.
In
July, Sprott had bought about 10 million shares at $3.10, meaning he
made about $25 million or a 75-per-cent return in just a few months. But
he was nonplussed, saying the buyout may have come a little early.
“You’ve got to have the dream, right?†he said. “You’ve got to have the dream you’re going to find something.â€
Therein
lies Sprott’s biggest paradox: he’s eager to believe that junior gold
miners are on the verge of striking the motherlode, but skeptical of
nearly everything else related to the gold industry.
You’ve got to have the dream, right? You’ve got to have the dream you’re going to find somethingEric Sprott
After a five-decade career in the financial
services industry, during which he worked as an investment banker and
founded an eponymous empire that includes fund and asset management
firms, a brokerage firm, bullion storage and more businesses, he is
skeptical of commercial banks, major precious metals miners, central
banks, the stated rate of annual inflation and, perhaps above all, gold
and silver prices.
“One of the things about the media, they never
talk about the gold conspiracy,†he said. “Look at the guys who are
paying fines for spoofing the precious metals markets. Every two weeks
some guy’s paying a fine.â€
Case in point, U.S. prosecutors in
September filed criminal charges against three JPMorgan Chase & Co.
bankers for allegedly spoofing the precious metals market, which means
placing fake orders and then quickly cancelling them to manipulate the
price. The indictment alleged a decade-long conspiracy.
Sprott
believes the futures market — where investors can buy options that
essentially allow them to place bets on the price of gold or silver
without actually having to own any of the metals — allows commercial
banks to exert way too much influence on the market for physical metals.
Stacked gold bars in Germany.
Michaela Handrek-Rehle/Bloomberg files
As someone who stockpiles bullion, and often gives it out as
a gift, he watches the prices of silver and gold so closely it often
colours his mood.
This fall, Sprott was out fishing for grouper on
a staffed boat somewhere warm on a Friday when he normally records his
podcast. In spite of his idyllic circumstances, he sounded distinctly
downtrodden when he called in to the podcast.
“I’ve had better days, you know, it’s a bit of a tough one,†he said.
As
the podcast progressed, it soon became clear that gold and silver
prices were both down, about four and six per cent, respectively, and
options market manipulation appeared to be the reason to him.
Juan
Carlos Artega, director of investment research at the World Gold
Council, is skeptical that banks are having a significant effect on gold
or silver prices through the futures market, but believes options do
have an impact on short-term prices.
As
someone who stockpiles bullion, and often gives it out as a gift, he
watches the prices of silver and gold so closely it often colours his
mood
“What you find is that the gold price is
responding to demand-and-supply dynamics including those on the
(options) market, but it’s only one component,†he said.
Artega
said central bank and consumer buying, production numbers, recycling,
investment in gold-backed exchange-traded funds and a host of other
factors play a role in determining long-term prices.
Sprott would
hear none of it, and said he’s long disagreed with the World Gold
Council about many things. His skepticism of the futures market ties in
to his skepticism of the financial market writ large.
“We have a weird financial system; it doesn’t make any sense to a rational thinker,†he said.
Gene
McBurney, co-founder of GMP Securities LP, once a competitor of Sprott
Inc. in the investment business and now a friend, said part of the key
to understanding Sprott is that he enjoys entertaining other people with
provocative comments.
Fine gold coins at a bullion dealer in London.
Chris Ratcliffe/Bloomberg files
“He’s told people there’s no gold in Fort Knox; that kicks off an interesting conversation,†he said.
But
McBurney added that he believes Sprott is extremely well versed in the
companies in which he invests, and he has even given some of his
personal money to Sprott to manage.
Peter Grosskopf, chief
executive of Sprott Inc., the asset management firm Sprott founded and a
mentee, said Sprott is always covered as being this “unbelievable gold
bug,†but there’s a lot more to it than that.
“I mean, he’s a savant at what he does,†said Grosskopf, who added that it’s not easy to explain how Sprott does what he does.
That’s
mainly because Sprott is investing in companies that have no revenue,
which means standard investment metrics, such as internal rate of
return, aren’t necessarily useful, never mind that he said they’re not
something he would use.
He’s a savant at what he doesPeter Grosskopf, chief executive of Sprott Inc.
Instead, he attempts to value companies based on whether they are likely to discover a deposit of precious metals.
Of
course, even if a company discovers a deposit, it would still need to
figure out whether it makes economic sense to extract the deposit,
including how much it would cost to build and operate a mine, which
requires further calculations about energy costs, transportation,
processing and refining, and so on.
Sprott said he focuses solely
on the deposit and how big it could be. Though he has no education in
geology, he said he has devised his own valuation method, which involves
looking at a few variables to determine the potential size of a
deposit.
“I want to turn it into numbers, like, okay, what could
this thing earn?†he said. “You know, you multiply the strike by the
depth by the width by 2.7 specific gravity times the ounces — it’s just
four or five things you’ve got to multiply, five things.â€
People
close to him said he studies junior mining companies and can recall the
details of his investments better than most fund managers.
“The
guy gets up at ungodly hours, he might get up at 2 a.m. studying,†said
Conor O’Brien, a former capital markets manager who joined Sprott in May
to help with the investment blitz. “Neither one of us are geologists,
we’re just financial people that can do mathematics, as opposed to the
geology. We more kind of conceptualize, and dream and kind of multiply.â€
Putting
his latest investment spree of more than $200 million in perspective,
the TSX Venture Exchange’s junior mining sector through August was on
course to raise $2 billion for all of 2019, about 27 per cent less than
it did in 2009.
Sprott takes a birdshot approach to investment
that spreads his money far and wide, so that his portfolio contains
companies exploring for high-grade and low-grade mines, potential
open-pit and potential underground mines, and so on.
“Most of them won’t make it,†he said. “But what about the ones that do? If I’m in early and I stay the ground, I press the bet. It’s like being at a table with a winning run, you keep doubling down.â€
Grosskopf said Sprott calls it “stealing value,†not because he’s
conning anyone, but because he’s investing in assets the market has
mispriced. He said the billionaire is an expert trader, adept at sizing
up an opportunity and timing his entrance and exit.
And because of
his outsized profile, recently juiced by his epic returns while
chairman of Kirkland Lake, there are hordes of investors who will follow
his lead, Grosskopf said.
Not all of Sprott’s bets work out, of course. In 2017, Sprott said he invested in Garibaldi Resources Corp., a nickel explorer, based on comments he read on an online chat board.
Its
stock surged 1,731 per cent that year, and Sprott has continued to
invest even though two years later, its stock has declined from a peak
above $4 in late 2017 to 87 cents today.
“They’re for sure
drilling, we know that, and they’ve announced some holes, and they’ve
got more to go,†Sprott said. “They haven’t found the motherlode they’re
looking for. Even I’ll say that.â€
Sprott’s vast ownership may
also have a downside: It’s not easy to liquidate his positions in
companies without attracting attention. But his vast wealth also means
he’s relatively insulated from a lot of threats, such as dilutive
financings or litigation, that smaller investors can’t afford to
participate in.
He also owns a private gold mining company in
Nevada called Jerritt Canyon Gold LLC, which he said made its first
profit in the third quarter.
Kevin Small, vice-president of
operations at that mine, said Sprott likes to be generous. In April, he
said Sprott showed up at the site and handed out silver coins to several
hundred people who work there.
“He said when you guys make lots of money, I’ll give you each a gold coin, but he hasn’t been back yet,†Small said.
Eric Sprott at his induction into Canada’s Investment Industry Hall of Fame in October.
Peter J. Thompson/National Post
But he added that Sprott has been investing heavily in the
operation, which has a capacity to produce 280,000 ounces of gold per
year, and predicted the company would soon be well known.
Colleagues
also add that he can be unrelenting when judging a company’s financial
performance. Case in point, one of his biggest gripes with Kirkland Lake
is that he wants it to increase its dividend, an issue he once again
raised in October after the miner posted solid quarterly results.
Kirkland
Lake pays a quarterly dividend of four cents, and chief executive Tony
Makuch said he may consider raising it, but the company still needs to
spend money on exploration so it can improve its reserves of gold.
“We’re
not an industry people should be buying for dividends,†Makuch said.
“You should be buying bank stocks or something else. If you look at our
share price, that comes from investing in new projects.â€
It’s a sentiment that Sprott would likely agree with.
“I still have a lot of money in Kirkland and it’s a great company, but it’s not a tenbagger from here,†he said. “And I like tenbaggers as opposed to 100 per cent. It’s just my nature.â€
Posted by AGORACOM
at 2:47 PM on Wednesday, December 18th, 2019
The global tire market acknowledges that employing graphenes within tire treads, walls and the inner linings can make tires lighter, provide better grip and reduce rolling resistance to an extent that is not possible with existing tire compounds
Key to the ability for Gratomic to establish the first mass-market Mine to Graphene to Tire, is the production of large quantities of graphenes nano surface modified to enhance tire performance
Gratomic is developing and commercializing its Graphene Processing capacity in Wales through its partnership with Perpetuus carbon technologies and prepared an additional 2 tonnes of Graphite concentrate for converting into high quality Graphenes targeted for the use and development of several high value Graphene applications.
TireOutperformance Categories:
Rolling resistance
Braking/grip on wet and ice roads
Abrasion resistance
Tires, enhanced with surface engineered graphenes, produced a greater
than 30% increase in wear resistance over the competing Brand Tires,
equating to an additional +30% mileage before the tire was needed to be
replaced.
Furthermore,
the results of testing carried out by industry experts employing
industry standard dynamic mechanical analysis (DMA) showed a significant
improvement in rolling resistance, which indicated a greater than 30%
improvement in fuel economy (increased MPG).
Results showed a greater than a 40% improvement in both wet and ice braking.
About Gratomic Inc.
Gratomic is an advanced material company focused on mine to market
commercialization of graphite products, most notably high-value
graphene-based components for a range of mass market products.
Posted by AGORACOM-JC
at 1:39 PM on Wednesday, December 18th, 2019
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systems enable medical professionals, patients, and other healthcare
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Remote Patient Monitoring, Reimbursement Topped Headlines in 2019
Top mHealth trends in 2019 included remote patient monitoring,
telehealth reimbursement, substance use disorder care, chronic disease
management, and direct-to-consumer mHealth technology.
Based on our most clicked stories in 2019, those trends included remote patient monitoring, telehealth reimbursement and coding, behavioral health/substance use disorder care, chronic disease management strategies, and direct-to-consumer mHealth technologies.
As 2019 comes to an end, healthcare organizations are
reflecting on the trends and stories that most influenced their
behaviors in the past year. Based on our most clicked stories in 2019,
those trends included remote patient monitoring, telehealth
reimbursement and coding, behavioral health/substance use disorder care,
chronic disease management strategies, and direct-to-consumer mHealth
technologies.
In the following article, mHealthIntelligence.com will break down these trends, as well as the strategies and best practices industry leaders developed in response.
Remote patient monitoring
In 2019, healthcare organizations looked to invest in remote
patient monitoring (RPM) solutions to transition to value-based care.
Many healthcare leaders expected these solutions to support high-risk
chronically ill patients whose conditions are considered unstable and at
a risk for hospital admission.
Specifically, 88 percent of providers who were surveyed by health IT thought leaders earlier this year had invested or were evaluating investments in RPM technologies.
RPM solutions have been proven to be clinically effective as an
early symptom management tool for chronically ill patients, who
represented about 45 percent of the US population according to the
survey. These solutions allowed risk-bearing organizations to remotely
monitor patients with chronic conditions to help control healthcare
costs, improve care quality, and increase access to care for patients in
underserved areas.
In addition, these solutions helped manage value-based risk associated with large patient populations with chronic conditions.
“The ability of the device to simultaneously record multiple
variables such as heart rate and accelerometer data allowed us to more
accurately determine the patient’s state, whether he/ she is active,
sedentary, asleep, or not currently using the device,†the researchers
reported.
Because remote patient monitoring is becoming more widespread,
more healthcare organizations are implementing RPM into their health
systems. Recently, Humana announced
a partnership with Philips Health to launch a remote member monitoring
pilot for certain Medicare Advantage members with severe congestive
heart failure (CHF).
“Our goal is to continue to find ways to help our Medicare
Advantage members stay longer and safer in their homes,†Susan Diamond,
president of Humana’s Home Business segment, said in a press release.
Telehealth reimbursement and coding
Along with remote patient monitoring, telehealth has been
extremely vital for healthcare in 2018 and will continue to play a
significant role going into the new year. But healthcare organizations
are still waiting on reimbursement and billing policies to catch up to
telehealth adoption..
One of the top read stories from 2019 was the American Medical
Association’s (AMA) creation of new codes for the use of telehealth and
behavior assessment and intervention services. These codes “more
accurately reflect current clinical practice that increasingly
emphasizes interdisciplinary care coordination and teamwork with
physicians in a primary care and specialty setting,†the association
stressed.
The goal for the new codes was to expand pathways for
physicians across the US who deal with diverse patients, including those
from underserved areas, and those who have any access to care they may
need.
CMS has followed suit, implementing the
AMA and its Digital Medicine Payment Advisory Group to include new
telehealth codes in the 2018 Medicare physician fee schedule. And in the
beginning of this year, CMS released its 2020 physician fee schedule
that included numerous additions that will enable more reimbursement for
connected health services next year.
In October of this year, Pennsylvania tried again to pass comprehensive telehealth legislation after the bill was denied last year because of disagreements over payment parity.
State Senator Elder Vogel introduced The Telemedicine Act (SB
857), which aimed to establish definitions for telemedicine and
telehealth, provide temporary evaluation and treatment guidelines for
reimbursement, and give state departments up to two years to draft
permanent rules and regulations.
The new bill includes remote patient monitoring technologies,
which gives providers the opportunity to use these connected health
services. About a dozen states have passed legislation demanding payment
parity for telehealth, but most have failed because of strong
opposition from healthcare payers.
Addressing substance abuse using mHealth
An estimated
115 people die each day from opioid abuse, an issue that has become
more widespread in the past decade. Healthcare providers have been
actively searching for a solution to tackle this issue, and many have
found a pathway to success using mHealth and telehealth technology.
Applying MHealth and telehealth technology to addiction treatment is expected
to make one of the biggest impacts on substance use disorder care.
Connected health platforms allow providers to work with the individual
patient anytime they need to, and are able to see what the patient
experiences each day.
“We’re building a panoramic view of your life,†said Jacob
Levenson, CEO of MAP Health Management, a Texas-based national network
of almost 100 addiction treatment providers. The organization has
adopted digital health tools for care management and coordination of
substance use disorder patients.
The smartphone is also a great tool for addiction treatment, as it offers both
a platform for population health programs and individual treatments.
Healthcare providers are able to send out messages offering support or
information via text, SMS, or e-mail to large groups at any time. They
can also personalize messages for individuals, connecting information to
one’s habits, location, or medical record.
MHealth apps are becoming increasingly more popular tools. Apps
could feature surveys, messaging or chat rooms, links to resources,
messaging with care providers or a substance abuse specialist, and a 911
link for immediate help.
“Medical devices, including digital health devices like mobile
medical apps, have the potential to play a unique and important role in
tackling the opioid crisis,†FDA Commissioner Scott Gottlieb, MD, said
in a press release
featured on the FDA website. “We must advance new ways to find tools to
help address the human and financial toll of opioid addiction.â€
Chronic disease management strategies
While MHealth platforms were important for addressing the
opioid crisis, the solutions have also been useful for chronic disease
management. A growing number of Americans are suffering from more than
one chronic condition, prompting more healthcare providers to take the
appropriate measures to tackle this issue in 2019.
For example, in January, Omada Health, a digital therapeutics
company that focuses on obesity-related chronic conditions, created a
cognitive behavioral therapy program (CBT) for those dealing with
depression and anxiety.
“Depression and anxiety are a known barrier to healthy
behaviors including medication adherence, optimal nutrition, and seeking
timely preventive care. With the addition of CBT curriculum, we can
more fully support our participants as they manage their conditions.
And, through our digital platform, we can do it at scale,†Carolyn
Bradner Jasik, MD, Omada’s Vice President of Medical Affairs, explained
in a press release.
The challenge going into the coming years is developing a
digital health platform that is able to integrate different programs and
allow for easy access for both patients and providers.
A few weeks ago, a Pennsylvania health system also created a telehealth and remote patient monitoring platform
to allow patients living with ALS to receive at home care. Most
patients with ALS have to travel hours for meetings with doctors and
specialists, which can prove to be challenging. But the telehealth
platform allows the meetings to be held at home.
Heart failure (HF) patients receiving targeted virtual behavior
therapy found significant improvements in self-care, a recent study published in
the journal Circulation found. The study conducted by Humana and AbleTo
found a correlation between improving behavioral health care and
co-existing physical conditions. The study also noted improvements in
self-care, depression symptoms, and awareness of physician
recommendations among patients that received HF-focused virtual
behavioral therapy over eight weeks.
Chronic disease management is vital to reduce costs by
addressing the patient’s illness or condition with maximum clinical
outcomes, while helping beneficiaries control their disease in an
effective way.
Direct-to-consumer mHealth technology
The healthcare industry is facing major disruption from
non-traditional companies, like Amazon, Google, and Apple. The mHealth
space has been no different according to the top stories from 2019.
In September of this year, Amazon prepared to take on the direct-to-consumer telehealth industry through its new platform,
Amazon Care. Amazon Care is a virtual care clinic offering telehealth
and mHealth services for its employees in the Seattle area, including
on-demand access to a clinician online messaging for healthcare
questions, a prescription service, and the option of scheduling an
appointment through Seattle-based Oasis Medical.
Apple Watch can be used by clinicians to detect atrial
fibrillation. But will care providers rely on these devices to present
them with accurate information?
A survey of
420,000 individuals conducted by researchers at the Stanford University
School of Medicine found that over an eight month span, the Apple Watch
detected an irregular heart rate in .52 percent of individuals or 2,161
people. And almost three-quarters of the users who were notified about
an irregular pulse contacted a care provider for further treatment.
“The study’s findings will help patients and clinicians
understand how devices like Apple Watch can play a role in identifying
atrial fibrillation, a deadly and often undiagnosed disease,†Mintu
Turakhia, MD, an associate professor of cardiovascular medicine, said in
the press release.
“Additionally, these important findings lay the foundation for further
research into the use of emerging wearable technologies in clinical
practice and demonstrate the unique potential of large-scale app-based
studies.â€
In addition, a Gallup survey this month showed that nearly one
in five Americans are using an mHealth wearable. Adults younger than 55
are twice as likely to use or have used mHealth. And individuals older
than 55 and women, are more interested in using mHealth than men. About
half of the women respondents under 55 said they use or have used
mHealth in the past. While men over age 55 are the least likely to use
or have used the technology.
Jefferson Health recently partnered
with Quick’r Care to create a mHealth platform to allow patients to
choose their correct care path. Through JeffConnect’s virtual care
service. Consumers will have on-demand video access to health system’s
care providers.
“This is what people who feel bad need right now, right when
they begin to feel sick,†added Stephen K. Klasko, MD, president of
Thomas Jefferson University and CEO of Jefferson Health. “Working with
Quick’rCare allows us to expand our commitment to healthcare with no
address.â€
Overall, Apple products are designed to make healthcare more
human. Devices are meant to protect patient data and give easy
accessibility to everyone who uses Apple products. Patients are able to
access medical records and communicate from at home if needed. But
providers continue to question whether the information they are
receiving is accurate, as with new technologies, there isn’t always this
guarantee.
Posted by AGORACOM
at 11:45 AM on Wednesday, December 18th, 2019
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Central bankers have been voracious buyers of gold during the last two years, and analysts look for that trend to continue in 2020.
Through the end of October, net official-sector purchases this year
totaled 562 metric tons, reported Alistair Hewitt, director of market
intelligence with the World Gold Council. That 56.2-tons-a-month average
puts sales on pace to roughly match the 656 tons bought in 2018, which
were the most central-bank purchases since 1967, according to WGC data.
“This year has been exceptionally strong. We think that next year,
net buying will continue at a high level, even if it’s not as high as
this year,†said Philip Newman, director of the London-based consultancy
Metals Focus.
Goldman Sachs looks for global central banks to collectively acquire
around 650 tons in 2020, while Standard Chartered is projecting
central-bank purchases will total 525 tons.
“It’s still elevated,†said Suki Cooper, precious-metals analyst with
Standard Chartered. “That is still firmly on the buy side.â€
‘Safe, liquid and generates returns’
Hewitt commented that central banks are looking at three main
criteria when deciding to expand the amount of gold they hold within
their foreign-exchange reserves.
“For a central bank, gold is a fantastic asset because it’s safe, liquid and generates returns over the long term,†Hewitt said.
He also listed two more factors why the central-bank buying has suddenly jumped in recent years.
“One issue is we are seeing heightened geopolitical tensions,†Hewitt
said, with these involving major gold-buying countries and economies.
“Central banks are looking toward gold to balance some of that risk.
“We’ve also got negative rates and yields for a large number of sovereign bonds.â€
Newman added that many central banks are “trying to get away†from
the U.S. dollar. This is especially the case with Russia due to U.S.
sanctions, he added.
As recently as 2017, most of the official-sector buying came from a
handful of central banks, including Russia, Turkey and Kazakhstan. But
in 2018 and 2019, there have been a slew, including some that had not
been in the market for years.
“You’ve got a whole range of buyers,†Newman said.
The largest buyers during the first 10 months of the year were Turkey
with 144.8 tons; Russia, 139; Poland, 100; and China, 95.8.
Others include Kazakhstan, 26.9 tons; India, 17.7; Qatar, 11; Ecuador, 10.6; Serbia and the U.K., 9.9; Argentina, 7; Colombia, 6.1; Kyrgyz Republic, 3.2; Mongolia, 2.3; Belarus, 1.9; Guinea, 0.9; Egypt and Mauritania, 0.7; Albania and Malta, 0.6; and Ukraine and Greece, 0.3.
Goldman Sachs projected that central-bank purchases could amount to as much as 22% of global supplies during 2019.
Central banks ‘buy for an extended period’
Hewitt looks for official-sector buying momentum to continue.
Central banks tend to put a lot of thought into decisions to buy –
with a long, rigorous policy-making process — and purchase the metal
for strategic reasons, rather than simply reacting to day-to-day moves
in the price, Hewitt said.
“Once these people start buying, they continue to buy for an extended
period of time,†Hewitt said. For instance, he pointed out that
Kazakhstan has been a regular gold buyer since 2010.
“Both trade tensions and negative yields are still here,†Hewitt
said. “They may rear their ugly heads again and become more pronounced,
or they may fade away and become less pronounced. But those underlying
forces will remain ever present in the market. Certainly in the next
year or so, those two factors should continue to support and underpin
central-bank demand for gold.â€
Observers pointed out that not only have central-bank gold purchases
been strong, but sales have been light. Back in 1999, when European
central banks were selling the metal, they began following central-bank
sales agreements to try to limit how much was sold in any one year and
thereby keep this from being a destabilizing force in the gold market.
These agreements have been discontinued, Hewitt noted. Commerzbank
analysts pointed out they were no longer necessary since hardly any
European central banks are selling anyway. Germany’s central bank sells a
modest amount each year only for its coin-minting program, Hewitt said.
“The market was not bothered by the central-bank gold agreement
coming to an end, partly because the gold market is very different from
what it was in 1999,†Hewitt said, adding that there “dramatic sellingâ€
back then.
“The gold market today is just more diverse, more resilient and more
liquid. That’s why the market just shrugged its shoulder when the
central-bank gold agreement came to an end.â€
Further, analysts at Commerzbank, in their 2020 outlook, commented
that one or more Western European central banks might even enter the
market as a gold buyer.
“One possible candidate is the Dutch central bank (DNB), which in
October published a remarkable statement about the role of gold on its
website,†Commerzbank said. “In it, it described gold as an anchor of
trust for the financial system. According to the DNB, gold reserves
could serve as the basis for a new beginning in the event of a system
collapse.
“If one or more Western central banks indeed started to actively buy
gold, this would attract considerable attention and spark market
reactions.â€
Posted by AGORACOM
at 8:37 AM on Wednesday, December 18th, 2019
Trace Analytics Inc. is a leading scalable
analytics cannabis/cannabinoid laboratory poised to meet the demands for
mandated regulatory cannabis/cannabinoid testing
WSDA contracted Trace Analytics for the purpose of doing
cannabinoid profiling for the State’s industrial hemp program to ensure
the percentages of certain cannabinoids are below Federal limits
Applied BioSciences Corp.
(OTCQB:APPB) (“Applied” or the “Company”), today announced that the
Washington State Department of Agriculture (WSDA) has extended its
contract for services with Applied’s majority owned subsidiary, Trace Analytics Inc. (“Trace”).
The WSDA contracted Trace beginning in July 2019 for the testing of
Industrial Hemp samples and percentage testing for delta
9-tetrahydrocannabidiol (THC) and delta 9-tetrahydocannabinolic acid
(THC-A) to ensure the percentages of certain cannabinoids are below
Federal limits.
“We are grateful for our relationship with the WSDA and are pleased
to continue cannabinoid profiling for the WSDA’s Industrial Hemp
program. The testing and reporting of results that we have conducted to
date have demonstrated the quality of our analytics and our dedication
to ensuring compliance with Federal limits,” stated Jason Zitzer, Chief
Operating Officer of Trace Analytics. “We provide expert consulting
services to government entities at all levels around the world and are
appreciative to WSDA to have been selected as the sole lab to conduct
their testing. This contract extension provides another opportunity
toward establishing a higher quality for cannabis and hemp testing.”
Trace Analytics Inc. is a leading cannabis science and technology
company with significant footprints in lab testing, research and
development and licensing. Trace Analytics was started by a group of
scientists who specialized in analytical chemistry, genetics and
molecular biology, focused on ensuring compliance with public safety
standards and end user safety. Trace Analytics is in the process of
expanding throughout the United States, and globally with the goal of
helping the rest of the world adopt “best practices” in cannabis and
hemp testing. The Company also provides expert consulting services to
legislators and regulators in many countries, states and municipalities
around the world.
Based on Applied BioSciences’ stated strategic corporate shift to
focus on its BioPharma division and the development and
commercialization of novel therapeutics that target the endocannabinoid
system (ECS), the Company is currently evaluating a strategic
transaction of Trace Analytics. Applied is currently in late-stage
discussions and expects to close the transaction by year end.
About Applied BioSciences Corp.
Applied BioSciences is a vertically integrated company focused on the
development and commercialization of novel, science-driven, synthetic
cannabinoid therapeutics / biopharmaceuticals that target the
endocannabinoid system to treat a wide-range of diseases across multiple
therapeutic areas. We also deliver high-quality consumer and OTC
THC-free CBD products that promote overall health and wellbeing as well
as state-of-the-art testing and analytics capabilities to our customers.
For more information, visit appliedbiocorp.com and connect with the Company on Twitter, Facebook and LinkedIn.
Posted by AGORACOM
at 4:06 PM on Tuesday, December 17th, 2019
SPONSOR: Applied BioSciences is a vertically integrated company focused on the development and commercialization of novel, science-driven, synthetic cannabinoid therapeutics / biopharmaceuticals that target the endocannabinoid system to treat a wide-range of diseases across multiple therapeutic areas Click Here for More Info
Some of us consume cannabis for its mind-altering effects, while others
seek symptom relief. But cannabis wouldn’t get us high or have some of
its therapeutic benefits if our bodies didn’t already contain a
biological system capable of interacting with its active chemical
compounds, like THC.
Our
endocannabinoid system does just that. But it isn’t there just to allow
us to enjoy the effects of our favorite strain. It serves a vital
purpose for our health and well-being because it regulates key aspects
of our biology. So, what’s it doing, and how does it work?
Homeostasis: Staying in the Goldilocks zone
To understand the human endocannabinoid system, it’s helpful to know a
little about one of the most fundamental concepts in biology:
homeostasis. And the best way to understand homeostasis is to think of
Goldilocks and the three bears.
That classic fairy tale illustrated the idea that the best outcome
often lies somewhere in the middle, between two extremes. We don’t want
things too hot or too cold, but just right.
Homeostasis is the concept that most biological systems are actively
regulated to maintain conditions within a narrow range. Our body doesn’t
want its temperature to be too hot or too cold, blood sugar levels too
high or too low, and so on. Conditions need to be just right
for our cells to maintain optimum performance, and exquisite mechanisms
have evolved to draw them back to the Goldilocks zone if they move out.
The body’s endocannabinoid system (ECS) is a vital molecular system for
helping maintain homeostasis—it helps cells stay in their Goldilocks
zone.
Key pieces of the endocannabinoid system (ECS)
Because of its crucial role in homeostasis, the ECS is widespread
throughout the animal kingdom. Its key pieces evolved a long time ago,
and the ECS can be found in all vertebrate species.
The three key components of the ECS are:
Cannabinoid receptors found on the surface of cells
Endocannabinoids, small molecules that activate cannabinoid receptors
Metabolic enzymes that break down endocannabinoids after they are used
Cannabinoid receptors
Cannabinoid receptors sit on the surface of cells and “listen†to
conditions outside the cell. They transmit information about changing
conditions to the inside of the cell, kick-starting the appropriate
cellular response.
There are two major cannabinoid receptors: CB1 and CB2. These aren’t
the only cannabinoid receptors, but they were the first ones discovered
and remain the best-studied. CB1 receptors are one of the most abundant
receptor types in the brain. These are the receptors that interact with THC to get people high.
CB2 receptors are more abundant outside of the nervous system, in
places like the immune system. However, both receptors can be found
throughout the body (Figure 1).
Figure 1: Where are CB1 and CB2 receptors located in the body?
The CB1 and CB2 receptors are key players in the endocannabinoid system
(ECS). They are located on the surface of many different types of cells
in the body. Both receptors are found throughout the body, but CB1
receptors are more abundant in the central nervous system, including on
neurons in the brain. In contrast, CB2 receptors are more abundant
outside of the nervous system, including cells of the immune system.
Endocannabinoids
Endocannabinoids are molecules that, like the plant cannabinoid THC,
bind to and activate cannabinoid receptors. However, unlike THC,
endocannabinoids are produced naturally by cells in the human body
(“endo†means “within,†as in within the body).
There are two major endocannabinoids: anandamide and 2-AG (Figure 2).
These endocannabinoids are made from fat-like molecules within cell
membranes, and are synthesized on-demand. This means that they get made
and used exactly when they’re needed, rather than packaged and stored
for later use like many other biological molecules.
Figure 2: Anandamide and 2-AG are the two major endocannabinoids.
Cannabinoids are a class of molecules characterized by their ability to
activate cannabinoid receptors like CB1 and CB2. Anandamide and 2-AG
are the two major endocannabinoids produced naturally in the body. THC
is the psychoactive plant cannabinoid produced by Cannabis. All
three of these cannabinoids can activate the CB1 and CB2 receptors,
although each one has a different potency at each receptor.
Metabolic enzymes
The third piece of the endocannabinoid triad includes the metabolic
enzymes that quickly destroy endocannabinoids once they are used. The
two big enzymes are FAAH, which breaks down anandamide, and MAGL,
which breaks down 2-AG (Figure 3). These enzymes ensure that
endocannabinoids get used when they’re needed, but not for longer than
necessary. This distinguishes endocannabinoids from many other molecular
signals in the body, such as hormones or classical neurotransmitters,
which can persist for many seconds or minutes, or get packaged and
stored for later use.
Figure 3: FAAH and MAGL are the key enzymes of the endocannabinoid system.
Enzymes are molecules that accelerate chemical reactions in the body,
often for breaking down molecules. FAAH and MAGL are key players in the
ECS because they quickly break down endocannabinoids. FAAH breaks down
anandamide, while MAGL breaks down 2-AG. These enzymes break down
endocannabinoids very quickly, but are not effective at breaking down
plant cannabinoids like THC.
The three key components of the ECS can be found within almost every
major system of the body. When something brings a cell out of its
Goldilocks zone, these three pillars of the ECS are often called upon to
bring things back, thus maintaining homeostasis. Because of its role in
helping bring things back to their physiological Goldilocks zone, the
ECS is often engaged only when and where it’s needed. Dr. Vincenzo Di Marzo, Research Director at the Institute of Biomolecular Chemistry in Italy, put it to us this way:
“With the ‘pro-homeostatic action of the ECS’ we mean
that this system of chemical signals gets temporarily activated
following deviations from cellular homeostasis. When such deviations are
non-physiological, the temporarily activated ECS attempts, in a space-
and time-selective manner, to restore the previous physiological
situation (homeostasis).â€
In other words, the ECS helps bring things back to the biological Goldilocks zone.
Below we will consider examples of how the ECS helps maintain
homeostasis in two areas: the firing of brain cells in the nervous
system, and the inflammatory response of the immune system.
Endocannabinoid regulation of brain cell firing
Brain cells (neurons) communicate by sending electrochemical signals
to each another. Each neuron must listen to its partners to decide
whether it will fire off its own signal at any given moment. However,
neurons don’t like to get too much input—there’s a Goldilocks zone. If
they get overloaded by signals, it can be toxic. That’s where
endocannabinoids come in.RelatedHow Does Cannabis Consumption Affect the Brain?
Consider a simplified scenario with one neuron listening to two
others. One of these two neurons might become overactive and send too
many signals to the neuron that’s listening. When that happens, the
neuron that’s listening will make endocannabinoids specifically where
it’s connected to the overactive neuron. Those endocannabinoids will
travel back to the “loud†neuron where they bind to CB1 receptors,
transmitting a signal that instructs it to quiet down. This brings
things back to the Goldilocks zone, maintaining homeostasis (Figure 4).
Figure 3: Endocannabinoid signals regulate how active our brain cells are.
Under normal circumstances (top-left), a given brain cell (neuron) will
get just the right amount of input from its partners—not too much, not
too little. However, some of its partners can become overactive, and
send an excessive number of signals (top-right). The neuron that’s
listening will detect this, and release endocannabinoids that tell the
other neuron to quiet down (bottom). This kind of mechanism helps
maintain homeostasis because it helps prevent neurons from sending out
too many signals.
As the example above illustrates, endocannabinoids travel backwards,
which is why they’re known as retrograde signals. Most of the time,
information flow between neurons is strictly in one direction, from
“sender†neurons that release neurotransmitter signals to “receiverâ€
neurons that listen to those signals. Endocannabinoids allow receiver
neurons to regulate how much input they’re getting, and they do this by
sending retrograde signals (endocannabinoids) back to overactive sender
neurons.
But the brain isn’t the only organ that needs to maintain
homeostasis. Every other system of the body, from the digestive to the
immune system, needs to carefully regulate how its cells are
functioning. Proper regulation is crucial for ensuring survival.
Endocannabinoid regulation of inflammation
Inflammation is a natural protective reaction the immune system has
in response to infection or physical damage. The purpose of inflammation
is to remove pathogens (germs) or damaged tissue. The inflamed area is
produced by fluid and immune cells moving into the area to do the dirty
work and return things to their Goldilocks zone.
It’s important that inflammation be limited to the location of damage
and doesn’t persist longer than needed, which can cause harm. Chronic
inflammation and auto-immune diseases are examples of the immune system
getting activated inappropriately. When that happens, the inflammatory
response lasts too long (which results in chronic inflammation) or gets
directed toward healthy cells (which is known as auto-immunity).RelatedCannabis and Arthritis
In general, endocannabinoids seem to suppress or limit the immune system’s inflammatory signals. Professor Prakash Nagarkatti,
Vice President for Research at the University of South Carolina whose
laboratory studies endocannabinoid regulation of immune responses, told
us how tweaking the ECS might be a good way to treat inflammatory
diseases.
“Most of our research demonstrates that endocannabinoids
are produced upon activation of immune cells and may help regulate the
immune response by acting as anti-inflammatory agents. Thus,
interventions that manipulate the metabolism or production of
endocannabinoids may serve as a novel treatment modality against a wide
range of inflammatory disease.â€
Consider a normal immune response triggered by a bacterial infection.
First, immune cells detect the presence of bacteria and release
pro-inflammatory molecules that tell other immune cells to come and join
the fight. Endocannabinoids get released as well (Figure 4), which also
signal to other immune cells for assistance and likely help limit the
inflammatory response so it isn’t excessive. By tightly regulating
inflammation, the immune system can destroy germs or remove damaged
tissue, and then stop. This prevents excessive inflammation, allowing
cells, and thus the body, to return to the Goldilocks zone.
Figure 4: Endocannabinoids help regulate inflammation.
Under normal conditions (top-left), cells of the immune system patrol
the body, on alert for any intruders, such as bacteria. During a
bacterial infection (top-right), immune cells detect the presence of
bacteria and then release a variety of molecules to help mount a
defensive attack (bottom). These signals include pro-inflammatory
molecules (small circles) that help recruit more immune cells to the
site of infection. Endocannabinoids (small diamonds) also get released,
and likely help regulate the magnitude and extent of this inflammatory
response.
How do plant cannabinoids like THC and CBD interact with the endocannabinoid system?
The reason that plant cannabinoids have psychoactive and medicinal
effects within the body is, in large part, because we have an
endocannabinoid system (ECS) that they can interact with. For example,
THC gets you high because it activates the CB1 receptor within the brain. Endocannabinoids like anandamide also activate CB1.
So why aren’t we constantly high?
A couple big reasons. First, THC doesn’t interact with CB1 receptors
in exactly the same fashion as the body’s natural endocannabinoids.
Second, the metabolic enzymes that quickly break down endocannabinoids
like anandamide don’t work on THC, so THC lingers around for much
longer.
It’s important to remember that molecules like cannabinoids and other
neurotransmitters rarely interact with only one receptor type; they
often interact with many. The plant-based cannabinoid CBD illustrates
this nicely, as it interacts with numerous receptor types
in the brain. So, while plant cannabinoids may activate the same
cannabinoid receptors as endocannabinoids, they will likely interact
with several other receptors and therefore have distinct effects.
CBD is also interesting because it can affect overall levels of
endocannabinoids in the brain, referred to as “endocannabinoid tone.â€
CBD inhibits the FAAH enzyme, which breaks down anandamide. Thus, CBD
can increase anandamide levels by preventing FAAH from breaking it down.
Inhibiting the FAAH enzyme has been shown to be a useful strategy for
treating anxiety disorders, and some of CBD’s anti-anxiety properties may come from its ability to inhibit this enzyme and thereby increase endocannabinoid tone.
Summary
The endocannabinoid system (ECS), comprised of cannabinoid receptors,
endocannabinoid molecules, and their metabolic enzymes, is a crucial
molecular system that the body uses to help maintain homeostasis.
Because of its vital role in making sure that cells and systems remain
in their physiological Goldilocks zone, the ECS is tightly regulated; it
gets deployed exactly when and where it’s needed. However, this doesn’t
mean that activating the ECS, through consumption of cannabis or by any
other means, will always make things just right.
Like any other complex biological system, the ECS can go awry. “If
deviation from physiological homeostasis is prolonged, due to either
external factors or chronic pathological conditions, the eCS can lose
its time- and space-selective mode of action and start affecting
inappropriate cells,†Dr. Di Marzo explained. “In these cases, the ECS,
instead of being beneficial, may actually contribute to disease
progression.â€
It’s important to remember that activating the ECS, through cannabis
consumption or by any other means, isn’t a cure-all. Like most of
biology, it’s complicated.
By understanding the biological Goldilocks principle (homeostasis),
and how the ECS illustrates this at the cellular level, we can more
deeply appreciate why we have an ECS to begin with, and how a variety of
cannabis-based therapies might actually work. The presence and critical
function of the ECS across many systems of the body, including the
nervous and immune systems, explains why such a wide variety of ailments
and disease states are responsive to cannabis-based interventions.
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