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India and Pakistan are on the brink of all-out war. Here’s what we know

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India launched military strikes on Pakistan on Wednesday and Pakistan claimed it shot down five Indian Air Force jets, in an escalation that has pushed the two nations to the brink of war.

The escalation puts India and Pakistan, two neighbors with a long history of conflict, in dangerous territory, with Islamabad vowing to retaliate against India’s strikes and the international community calling for restraint.

New Delhi said the strikes are in response to the massacre of 26 people – mostly Indian tourists – who died in April when gunmen stormed a scenic mountain spot in the India-administered part of Kashmir, a disputed border region. India has blamed Pakistan for the attack, which Islamabad denies.

Here’s what we know so far.

What happened with India’s strikes?

India launched “Operation Sindoor” in the early hours of Wednesday morning local time (Tuesday night ET) in both Pakistan and Pakistan-administered Kashmir.

Indian officials said nine sites were targeted, but claimed no Pakistani civilian, economic or military sites were struck. They said the 25-minute operation targeted “terrorist infrastructure” belonging to two militant groups – Lashkar-e-Tayyiba and Jaish-e-Mohammed.

The name ‘Sindoor’ appears to be a reference to the red vermilion, or powder, many Hindu women wear on their foreheads after marriage. The April tourist massacre – which singled out men as victims – left several Indian women widowed.

A Pakistani military spokesperson said six locations were hit with 24 strikes. Some of those strikes hit the densely populated province of Punjab, Pakistan’s military said, and were the deepest India has struck inside Pakistan since 1971, when the two countries fought one of their four wars.

How did Pakistan respond?

Pakistani security sources claimed they had shot down five Indian Air Force jets and one drone during India’s attack.

They did not say exactly where, or how, the jets were downed – but said three Rafale jets were among those planes. India’s Rafale fighter jets are prized military assets that it bought from France only a few years ago.

An eyewitness and local government official said an unidentified aircraft crashed in the village of Wuyan in Indian-administered Kashmir. Photos published by the AFP news agency showed aircraft wreckage lying in a field next to a red-brick building.

It was not immediately clear from the photos who the aircraft belonged to.

Pakistani Prime Minister Shehbaz Sharif said on Wednesday the country “has every right” to respond, calling India’s actions an “act of war.”

How many casualties are there?

At least 26 civilians were killed and 46 injured by India’s strikes, a Pakistan military spokesperson said, according to the news agency Reuters.

Lt. Gen. Ahmed Sharif Chaudhry, a spokesperson for Pakistan’s military, said those killed include teenagers and children – the youngest of whom was three years old.

Seven civilians in Indian-administered Kashmir were also killed by shelling by Pakistani troops from across the border, Reuters reported, citing police there.

What else is happening on the ground?

On Wednesday, the two sides also exchanged shelling and gunfire across the Line of Control (LOC), the de facto border that divides Kashmir.

Authorities in Indian-administered Kashmir have ordered citizens to evacuate from areas deemed dangerous, saying accommodation, food and medicine will be provided.

The strikes have disrupted flights, with Pakistan closing parts of its airspace. Multiple major international airlines are avoiding flying over Pakistan, while several Indian airlines have reported disrupted flights and closed airports in the country’s north.

Some context: There have been regular exchanges of gunfire along the Line of Control in the weeks following the Pahalgam massacre.

What prompted all of this? What is Kashmir?

Muslim-majority Kashmir has been a flashpoint in India-Pakistan relations since both countries gained their independence from Britain in 1947.

The two nations to emerge from the bloody partition of British India – Hindu-majority India and Muslim-majority Pakistan – both claim Kashmir in full and, months after becoming independent, fought their first of three wars over the territory.

The divided region is now one of the most militarized places in the world.

India has long accused Pakistan of harboring militant groups there that conduct attacks across the border, something Islamabad has long denied.

The massacre in the tourist hotspot of Pahalgam in April sparked widespread anger in India, putting heavy pressure on the Hindu-nationalist government of Prime Minister Narendra Modi.

India immediately blamed Islamabad, sparking tit-for-tat retaliatory measures in which both countries downgraded ties, canceled visas for each other’s citizens, and saw India pull out of a key water-sharing treaty.

What could come next?

The three previous wars over Kashmir have each been bloody; the last one in 1999 killed more than a thousand Pakistani troops, by the most conservative estimates.

In the decades since, militant groups have fought Indian security forces, with violence killing tens of thousands. The two countries have clashed multiple times, most recently in 2019 when India conducted airstrikes in Pakistan after it blamed Islamabad for a suicide car bomb attack in the region.

But those recent clashes did not explode into all-out war. Both sides are aware of the risks; since 1999, the two countries have worked to strengthen their militaries, including arming themselves with nuclear weapons.

How is the world reacting?

The strikes have raised global alarm and pleas for the two nations to prevent further escalation.

United Nations Secretary-General António Guterres voiced “deep concern” over India’s strikes, warning that the world “cannot afford a military confrontation” between the two nations.

The United States – which had urged restraint from both countries last week – said it was “closely monitoring developments,” according to a State Department spokesperson.

“We are aware of the reports, however we have no assessment to offer at this time,” the spokesperson said Tuesday. “This remains an evolving situation, and we are closely monitoring developments.”

The United Arab Emirates, China and Japan have also called for both sides to de-escalate.

This post appeared first on cnn.com

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Tears of joy as Valerie the runaway dachshund finally reunited with owners

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Valerie the dachshund has finally been reunited with her owners after surviving 540 days alone on Kangaroo Island in South Australia.

Owners Georgia Gardner and Josh Fishlock described the moment they got to hold the tiny pup in their arms in a statement published Wednesday.

Gardner said she “burst into tears” when Valerie ran up to her as they saw each other again for the first time on Tuesday.

“She was wagging her tail, making her little happy sounds, and wiggling around with joy. I held her and cried and cried,” she said in the statement.

“She’s stockier now, strong and healthy… healthier than we are, honestly!” added Gardner.

Fishlock said the pair hadn’t expected to see Valerie again.

“It still doesn’t feel real,” he said in the statement.

Valerie, who will soon celebrate her third birthday, went missing on a camping trip to the island in November 2023.

When strangers tried to help, she fled into the undergrowth, and her owners eventually gave up and returned home to the mainland.

With no sightings it was assumed Valerie had met her match with a snake or perhaps one of the giant Rosenberg’s goannas — reptiles up to 1.5 meters (5 feet) long — that occupy the island.

However, reports of sightings started to emerge, sparking a massive search operation led by volunteers from the Kangala Wildlife Rescue, a non-profit group set up in 2020 following the devastating Australian bushfires.

Valerie was eventually found on April 25, and has been looked after by the charity since.

Director Jared Karran described Valerie as “truly something special.”

“She was just so much smaller than we imagined. If it was a miracle before that she’d survived — seeing her size — it’s just unbelievable that she was able to survive and thrive out there!” he said in the statement.

Home to around 5,000 people, Kangaroo Island is about 45 minutes from the mainland by ferry. Tourists go there to see Australian native wildlife, but officials have long had a problem controlling introduced species including feral cats. The island is thick with bush, and there are many places for a small dog to hide.

Another difficulty is the island’s vibrant ecosystem, according to the charity.

“One of the reasons this is such a difficult rescue and not as easy as just baiting and setting traps, is due to the fact we are constantly competing with hundreds of wildlife like possums, wallabies, kangaroos, goannas and feral cats. All which are all just after a feed also,” the group said in a post on Facebook before the little dog was found.

Now Valerie is preparing to return home to Albury, New South Wales, where she will be reunited with Gardner and Fishlock’s other pets, Lucy the rescue cat, Mason the red heeler and their latest addition, Dorothy, a fellow dachshund.

This post appeared first on cnn.com

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October 7 families demand to know the number of Gaza hostages still alive, after Trump said 3 more have died

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Families of October 7 hostages held in Gaza demanded any new information from the Israeli government after US President Donald Trump said three more captives had died.

“As of today, it’s 21. Three have died. So, this is a terrible situation,” Trump said on Tuesday.

The remark was a shock to the families of the hostages.

“We demand once again from the Israeli government – if there is new information that has been hidden from us, pass it on to us immediately,” the Hostages and Missing Families Forum said on Wednesday.

“The headquarters once again calls on the Prime Minister to stop the war until the last abductee is returned. This is the most urgent and important national task.”

Israel’s public and official position, reiterated on Tuesday by Israel’s Coordinator for the Captives and the Missing Gal Hirsch, is that 24 hostages are alive. “The Hamas terror organization is currently holding 59 hostages,” Hirsch said on social media several hours after Trump’s comments. “24 of them are on the list of living hostages.”

But there have been clear indications that Israel has reason to believe the true number is fewer, even beyond Trump’s comments.

On Wednesday, Prime Minister Benjamin Netanyahu published a video statement in which he made the clearest acknowledgement, yet that Israel believes not all 24 are alive.

“We know for certain that there are 21 alive. There’s no argument about this. There’s three where there is doubt about whether they are alive,” he said in the prerecorded video. “We’re not giving up on anyone.”

Earlier this week, Netanyahu approved an expansion of the war in Gaza and a plan to force the Palestinian population into a shrinking tract of land in the southern part of the besieged territory. Israel says its military operations are intended to put pressure on Hamas to make a ceasefire agreement, but prospects for an imminent deal are quickly dwindling, and with them the hope of bringing the remaining hostages out soon.

Even before the latest video statement, Netanyahu has recently been careful to say that “up to 24” hostages are being held alive in Gaza.

Last week, when Netanyahu said there were “up to 24” living, his wife, Sara, interrupted him and said: “Fewer.”

The open mic moment sparked its own outcry from the families of the hostages. “If the wife of the prime minister has new information about the kidnapped who were killed, I demand from her to know if my Matan is still alive, or if he was murdered in captivity because your husband refuses to finish the war,” Einav Zangauker, the mother of one of the hostages, said on social media.

Israeli officials have said there are “grave concerns” about three of the hostages but would not say whether Israel knows for certain that they are dead.

Trump’s comments strongly suggest otherwise and appear to indicate that Israel has shared sensitive information about the condition of the hostages with the Trump administration.

More than 250 people were taken hostage when Hamas militants launched a surprise attack on Israel on October 7, 2023 – sparking the ongoing war in Gaza.

This post appeared first on cnn.com

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The Easiest Road to Supercharge Your Investing Reflexes and Reactions!

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Riches are found in reactions—your reactions to changes in the markets. By this, I mean that if you spot a change in money flowing from one asset class to another, one sector to another, one industry to another, before the masses notice, you will be rewarded handsomely. My experience has been that your profits will accumulate dramatically and consistently.

A fine example of this principle in the corporate arena is the global footwear and accessories retailer, Aldo. The company has 1,600 stores in 80 countries and is immensely profitable. Their secret sauce: quick reactions to market trends. When they identify a change in fashion trends, they’re 50 percent quicker than their competition in designing, producing and delivering the hottest styles. Yes, fifty percent faster, and that’s gold to their bottom line.

This can be your secret sauce to investment profits as well. Your personal portfolio of ChartLists is the equivalent of Aldo’s design department, production department, and delivery department all bundled together. It facilitates quick reactions to current observable stock market opportunities.

In simplistic terms, your personal collection of ChartLists is like giving a runner a bicycle or giving a Jeep driver a Porsche. ROI (return on investment of your time and efforts) becomes supercharged. Your ChartLists allow you to become a “force of consistency.” They will also help you embrace one of Charlie Munger’s key investment tenets, “Try to be consistently not stupid.”

To achieve this end, I humbly suggest that you could best start with the Stock Market Mastery ChartPack.

Assembling your portfolio of ChartLists is analogous to building your custom dream house. There are sensational books of checklists that systematically ask you a comprehensive series of questions and bring up features you should consider. The end result should be a custom home you love, that fits you perfectly, and that accommodates your unique lifestyle. Think of the Stock Market Mastery ChartPack, then, as an extensive checklist—a buffet of pre-populated and organized ChartLists, from which you build your own custom collection of ChartLists that fits your investing methodology perfectly and facilitates your personal Investor Self. These 80 ChartLists are carefully structured, all pre-populated with expertly designed charts and a carefully-crafted organization to maximize your precious time and insights. Indeed, nearly all the informational breadcrumbs the market has to offer will be made clear to you and offer you a profitable trail to follow. Your reflexes and reactions just got supercharged. It is that easy.

Trade well; trade with discipline!

Gatis Roze, MBA, CMT

StockMarketMastery.com

  • Author, “Tensile Trading: The 10 Essential Stages of Stock Market Mastery” (Wiley, 2016)
  • Developer of the “Stock Market Mastery” ChartPack for StockCharts members
  • Presenter of the best-selling “Tensile Trading” DVD seminar
  • Presenter of the “How to Master Your Asset Allocation Profile DVD” seminar

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Week Ahead: While NIFTY Continues To Consolidate, Watching These Levels Crucial

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In the truncated week due to one trading holiday, the markets extended their gains and closed the week on a positive note. While remaining largely within a defined range, the Nifty continued consolidating above its 200-DMA while not adopting any sustainable directional bias. While the Index continued defending its key support levels, it oscillated in the range of 535.10 points. Volatility continued moving higher; the India Vix surged by 6.41% to 18.26 on a weekly basis. While staying positive, the headline index closed with a net weekly gain of 307.35 points (+1.28%).

From a technical standpoint, the Nifty has kept its underlying bias intact; it is currently consolidating above the 200-DMA positioned at 24050. The 50-week MA is placed at 23962. This makes the 24950-24050 a strong 200-point support zone for the Nifty for the coming weeks and the foreseeable short term. So long as the Index keeps it above this 200-point support zone, it will just consolidate and not show any major drawdowns. However, any violation of 24900 will increase the possibility of some corrective retracement. Watching Nifty’s behavior vis-à-vis the zone of 23950-24050 would be crucial over the coming days.

The geopolitical tensions between India and Pakistan remain ingrained in the market behavior; the rise in Vix shows increased hedging activity by the market participants. Monday is likely to see a stable start to the day; the levels of 24550 and 24780 are likely to act as resistance levels. The supports come in at 24050 and 23900. The trading range is expected to stay wider than usual.

The weekly RSI stands at 57.92. While the RSI has formed a fresh 14-period high, it remains neutral and does not show any divergence against the price. The weekly MACD is bullish and trades above its signal line.

The pattern analysis shows that on the daily chart, the Nifty crossed above the 200-DMA a few days ago; now, it is consolidating just above this important level. It has penetrated the 50-week MA placed at 23962, and this level is now expected to act as support in the event of any corrective retracement. Importantly, the Nifty has resisted the rising trendline pattern resistance near 24600. This trendline begins at 21130 levels and joins the subsequent rising bottoms.

The coming week will require a more cautious approach as the markets not only deal with key resistance levels but also with geopolitical tensions that remain embedded in the backdrop. The investors will need to move away from the stocks that have risen over the past weeks and move to those sectors and stocks that are readying for a fresh move. While focusing more on low-beta stocks, the leverage, too, needs to be curtailed. The Index has risen over 2500 points over the past three weeks, and if it consolidates a bit, it should not surprise the market participants. A highly cautious and stock-specific approach is advised for the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against the CNX500 (NIFTY 500 Index), which represents over 95% of the free-float market cap of all the listed stocks.

Relative Rotation Graphs (RRG) show the Nifty FMCG index has rolled inside the leading quadrant. The PSU Bank, Infrastructure, and Consumption Index are also inside the leading quadrant. The Metal, Commodities, Financial Services, and Nifty Bank Index are also inside this quadrant, but they are giving up on their relative momentum. However, these groups may continue to outperform the broader markets relatively.

The Services Sector Index has rolled inside the weakening quadrant.

While the Nifty IT index continues to languish inside the lagging quadrant, the Midcap 100, Auto, Realty, and Pharma Indices are seen improving their relative momentum while being inside the lagging quadrant.

The Nifty Media, PSE, and Energy Indices are inside the improving quadrant; they are expected to better their relative performance against the broader markets.

Important Note: RRG charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae


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Two Down and Two to Go – Capitulation and Thrust are just a Start

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The market does not always follow the same script or sequence, but bear markets typically end with a bottoming process marked by specific stages. These include capitulation, a short-term reversal-thrust, a follow-through thrust and long-term regime change. The first two stages mark downside excess and the initial turn around, while the latter two signal strong follow through. Today’s report will look at the first two phases, and preview the last two.

Phase 1: Capitulation

The capitulation phase of a bear market occurs when traders throw in the towel as downside momentum and selling pressure accelerate. Usually, the capitulation phase occurs after an extended decline, and this phase is the first step to a bottom. The chart below shows SPY with Bollinger Bands (200,3), %B (200,3) and S&P 500 Percent Above 200-day SMA ($SPXA200R). Signs of capitulation emerge when %B is below 0 and/or fewer than 20% of S&P 500 stocks are above their 200-day SMAs. The blue dashed lines show capitulation in June 2022, September 2022 and early April 2025. Note that we initially covered this capitulation phase in a report on April 8th.

Phase 2: Short-term Thrust Signals (ZBT)

Phase 2 is marked by a sharp-reversal from oversold extremes and an upside thrust. The Zweig Breadth Thrust is perhaps the most famous thrust indicator these days. We covered the ZBT extensively over the last few weeks and introduced a strategy using this indicator. The chart below shows the S&P 1500 ZBT indicator in the lower window (10-day EMA of S&P 1500 AD%). A thrust signal triggered on April 24th and stocks followed through with further gains.  

Two Down and Two to Go

The capitulation phase showed excessive selling pressure and the thrust phase marked a short-term reversal. These are bullish events, but the market cup is not yet half full. SPY remains below its 200-day SMA and the late March high (see chart above). Medium-term thrust indicators have yet to trigger and long-term breadth remains bearish. The 14% surge over the last 17 days is impressive, but keep in mind that SPY surged 10% in nine days in March 2022, which was a bear market bounce.

TrendInvestorPro produced a report this week covering the four phases – and what to watch going forward. Click here to take a trial and get immediate access.

  • Phase 1: Capitulation
  • Phase 2: Short-term Thrust Signals
  • Phase 3: Medium-term Thrust Signals
  • Capitulation and Thrust Indexes
  • Phase 4: Long-term Indicators turn Bullish
  • Short-term Improvements, but Longer Term 

//////////////////////////////////////////////////////


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The Best Five Sectors, #18

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Communication Services Drops to #5

The composition of the top five sectors remains largely stable this week, with only slight adjustments in positioning. Consumer staples continue to lead the pack, followed by utilities, financials, real estate (moving up one spot), and communication services (dropping to fifth). This defensive lineup persists despite a rallying market, presenting an interesting dilemma for sector rotation strategies.

  1. (1) Consumer Staples – (XLP)
  2. (2) Utilities – (XLU)
  3. (3) Financials – (XLF)
  4. (5) Real-Estate – (XLRE)*
  5. (4) Communication Services – (XLC)*
  6. (6) Healthcare – (XLV)
  7. (7) Industrials – (XLI)
  8. (8) Materials – (XLB)
  9. (11) Technology – (XLK)*
  10. (10) Energy – (XLE)
  11. (9) Consumer Discretionary – (XLY)*

Weekly RRG

The weekly Relative Rotation Graph (RRG) paints a picture of potential change on the horizon.

While staples, utilities, real estate, and financials maintain their positions in the leading quadrant, they show signs of losing relative momentum over the past few weeks.

Financials, particularly, are teetering on the edge of rolling into the weakening quadrant.

Communication services have already shifted, now firmly in the weakening quadrant and traveling on a negative RRG heading. This movement explains its drop to the fifth position in our sector rankings.

Daily RRG

Switching to the daily RRG, we see a slightly different picture for our top sectors.

Staples, utilities, real estate, and financials are all positioned in the weakening quadrant, traveling on negative RRG headings.

This short-term view indicates that we must closely monitor these sectors to determine if they can regain momentum before potentially dropping out of the top five.

Interestingly, communication services is showing signs of life on the daily chart. Despite falling to the fifth position overall, its tail is now in the improving quadrant and moving toward leading.

The caveat? It’s a very short tail, close to the benchmark—essentially moving in line with the market. This makes communication services the sector most at risk of losing its top-five status in the near term.

Consumer Staples

Consumer staples is bumping up against overhead resistance between $82.50 and $83.

This hesitation in upward price movement is causing weakness in the RS line, which has started to dip.

Consequently, the RS momentum line is rolling over. However, the high RS ratio—indicating a strong relative trend—is keeping staples at the top of our list for now.

Utilities

Utilities has been flirting with a breakout since the start of 2025, pushing against overhead resistance around $80 about four times already.

When it breaks, we’ll likely see an acceleration towards the all-time high just above $82.50.

Like staples, the inability to break resistance is causing a stall in the RS line and a rollover in relative momentum.

Financials

After a strong rally off the $42 support level, previously resistance (the old technical adage holds true), financials is now facing a challenge.

The rally is approaching the former rising support level that marked the uptrend channel. This could cause some hesitation in both price and relative strength.

The RS line remains within its rising channel, but momentum has waned, causing the green RS momentum line to roll over.

Real-Estate

Real estate moved up one position to fourth and is still emerging from a long relative downtrend that began in April 2022.

The RS ratio line has picked up the relative strength rally that started in early 2025 but is now stalling.

This has resulted in the green RS momentum line rolling over. On the price chart, real estate is mid-range with room to move higher.

Communication Services

Communication services have dropped to the fifth position, but the price chart has an interesting development.

Last week, the price broke back above the old neckline of a small head-and-shoulders pattern. The fact that we’re now rallying above this neckline could indicate a failed head-and-shoulders pattern—usually a very strong bullish sign.

However, recent weakness in relative strength has pushed the sector deeper into the weakening quadrant on the RRG.

This sector must pick up rapidly in the coming weeks to maintain its position in the top five.

Portfolio Performance

The defensive positioning of our top five sectors is leading to underperformance as the broader market rallies.

Currently, we remain at approximately a 3% underperformance compared to SPY just like last week.

However, from the perspective of sector rotation, we must still consider this rally in the S&P 500 to be temporary.

The underlying message continues to emphasize defense.

It’s important to remember that there is always a lagging element in RRGs and this strategy.

If the market has truly turned, we will see that shift reflected in our sectors, and at some point, we will start to make up the difference.

These performance gaps can change very rapidly in favor of the RRG portfolio when the market comes under pressure and our defensive sectors start to lead again.

#StayAlert and have a great week — Julius


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Four Charts to Track a Potential Market Top

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In this video, Dave reveals four key charts he’s watching to determine whether the S&P 500 and Nasdaq 100 will be able to power through their 200-day moving averages en route to higher highs. Using the recently updated StockCharts Market Summary page, he covers moving average breadth measures, his proprietary Market Trend Model, offense vs. defense ratios, and the Bullish Percent Indexes.

This video originally premiered on May 5, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.


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Alvopetro Announces an Operational Update, Q1 2025 Financial Results and Details for our Upcoming AGM

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Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, financial results for the three months ended March 31, 2025 and details for both our Q1 2025 earnings call and our upcoming annual general and special meeting.

All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

President & CEO, Corey C. Ruttan commented:

‘A 41% increase in Q1 2025 sales volumes provides a strong start to the year and we are well positioned for an exciting organically funded 2025 capital program. We now have the ability to invest in high rate of return opportunities in Brazil and the Western Canadian Sedimentary Basin. Our first two wells in Canada are exceeding expectations and we are looking forward to an expanding capital program including a strong inventory of oil drilling locations. These new opportunities further strengthen our disciplined capital allocation model, balancing returns to stakeholders and organic growth.’

Operational Update

April Sales Volumes

Natural gas, NGLs and crude oil sales:

April

2025

March

2025

Q1

2025

Brazil:

Natural gas (Mcfpd), by field:

Caburé

12,532

12,652

11,710

Murucututu

945

1,877

2,093

Total natural gas (Mcfpd)

13,477

14,529

13,803

NGLs (bopd)

126

146

135

Oil (bopd)

–

12

10

Total (boepd) – Brazil

2,372

2,580

2,446

Canada:

Oil (bopd) – Canada

90

–

–

Total Company – boepd (1)

2,462

2,580

2,446

(1)   Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

April sales volumes in Brazil averaged 2,372 boepd, including natural gas sales of 13.5 MMcfpd and associated natural gas liquids sales from condensate of 126 bopd, based on field estimates. Murucututu sales volumes were impacted by downtime on the 183-A3 well to complete an intervention to enhance productivity through the isolation of lower intervals. In Canada , the two wells drilled in the first quarter of 2025 came on production in April (50% working interest). After the initial clean-up period, oil sales commenced contributing an additional 90 bopd net to Alvopetro in April and bringing the Company’s total sales to 2,462 boepd, based on field estimates, a decrease of 5% compared to March and an increase of 1% compared to Q1.

Quarterly Natural Gas Pricing Update

Effective May 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL2.08 /m 3 , a 7% increase from the February 2025 price of BRL1.95 /m 3 . All natural gas sales from May 1, 2025 to July 31, 2025 will be sold at BRL2.08 /m 3 ( $11.09 /Mcf, net of applicable sales taxes, based on average heat content to date and the April 30, 2025 BRL/USD exchange rate of 5.66).

Development Activities – Brazil

On our 100% Murucututu natural gas field, we spud the 183-D4 well targeting the Caruaçu Formation approximately 110 metres structurally updip of our 183-A3 success. Operational challenges associated with the drilling rig led to significant delays and while drilling the main target Caruaçu intervals we became differentially stuck ultimately resulting in the loss of the bottom hole assembly. We are currently drilling a sidetrack of the lower 680 metres of the well. We estimate total costs for the project of $7.7 million , of which $3.7 million was incurred in Q1 2025.

On the unitized area (the ‘Unit’) which includes the Caburé natural gas field, we have five development wells planned for 2025, with the first wells expected to be drilled starting this quarter.

Western Canadian Strategic Entry

On February 5, 2025 , we announced a new strategic entry into Canada (the ‘Farmin’). Under the Farmin we agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres of land focused on the Mannville Stack heavy oil resource in Western Saskatchewan . This is currently one of the leading plays in the Western Canadian Sedimentary Basin with high original oil place reservoirs that are being effectively exploited using open hole multilateral drilling technology. Our objective with the strategic entry into Canada was to expand our inventory of highly prospective opportunities but with a differentiated risk profile. The early results from our first two earning wells in Western Canada demonstrate this vision. Within 45 days of finalizing the Farmin, with our partner, we had obtained two well licenses, surface access, constructed two well pads and drilled two multilateral wells with a total of over 15 kilometres of open hole reservoir contact. When we completed the Farmin we had established a gross initial production rate target of 100 to 120 bopd per well. Both earning wells were on production by early April and both are exceeding our pre-Farmin expectations. We have further expanded our joint Mannville focused land base up to 15,861 acres (7,931 acres net) and are looking forward to drilling up to an additional four (2.0 net) multilateral wells through the rest of 2025.

Financial and Operating Highlights – First Quarter of 2025

  • Alvopetro’s updated long-term gas sales agreement came into effect on January 1, 2025 increasing our contracted firm volumes by 33%. As a result, our average daily sales increased to 2,446 boepd (1) in Q1 2025 (+44% from Q1 2024 and +41% from Q4 2024).
  • Our average realized natural gas price decreased to $10.44 /Mcf in Q1 2025 (-17% from Q1 2024 and -1% from Q4 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q1 2024. Our overall averaged realized sales price was $63.67 per boe (-16% from Q1 2024).
  • With higher sales volumes, our natural gas, oil and condensate revenue increased to $14.0 million (+19% from Q1 2024 and +37% from Q4 2024).
  • Our operating netback (2) in the quarter was $50.77 per boe (- $15.39 per boe from Q1 2024 and – $4.32 per boe from Q4 2024), due mainly to additional royalties in the quarter as well as lower realized sales prices. Royalties in the quarter increased to $7.60 per boe due to the recognition of additional gross-overriding royalty (‘GORR’) applicable on certain properties held by Alvopetro. The computation of the GORR was in dispute with the GORR holders, mainly with respect to the computation on natural gas. Subsequent to March 31, 2025 , Alvopetro received the findings of the appointed arbitral tribunal wherein the tribunal found in favour of the GORR holders. Alvopetro has estimated the additional GORR owing pursuant to the decision and recognized such amount (including inflation) as additional royalties in Q1 2025 as well as the estimated interest owing on the balance outstanding as finance expense. The computation of the additional GORR remains subject to the approval of, and adjustment by, the tribunal.
  • We generated funds flows from operations (2) of $9.2 million ( $0.25 per basic share and $0.24 per diluted share), increases of $0.7 million compared to Q1 2024 and $2.3 million compared to Q4 2024 due mainly to higher sales volumes, partially offset by higher royalties and lower realized sale prices.
  • We reported net income of $6.1 million , an increase of $1.5 million compared to Q1 2024 due to higher revenues and foreign exchange gains (compared to foreign exchange losses in Q1 2024), partially offset by higher royalties and higher depletion and depreciation.
  • On February 5, 2025 , we announced the terms of a Canadian farmin agreement (the ‘Farmin’), pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The two earning wells were drilled in the quarter at a total cost to Alvopetro of $2.6 million . With completion of the two earning wells, Alvopetro’s working interest share is now 50%.
  • Capital expenditures totaled $8.4 million , including costs for the two wells drilled in Canada , final costs on the 183-B1 re-entry, and costs associated with drilling the 183-D4 well on Alvopetro’s 100% Murucututu field.
  • Our working capital (2) surplus was $9.7 million as of March 31, 2025 , decreasing $3.4 million from December 31, 2024 .

(1)     Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

(2)     Refer to the sections entitled  ‘ Non-GAAP and Other Financial Measures ‘.

The following table provides a summary of Alvopetro’s financial and operating results for the periods noted. The consolidated financial statements with the Management’s Discussion and Analysis (‘MD&A’) are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .

As at and Three Months Ended

March 31,

2025

2024

Change (%)

Financial

($000s, except where noted)

Natural gas, oil and condensate sales

14,013

11,752

19

Net income

6,070

4,550

33

Per share – basic ($) (1)

0.16

0.12

33

Per share – diluted ($) (1)

0.16

0.12

33

Cash flows from operating activities

8,817

8,213

7

Per share – basic ($) (1)

0.24

0.22

9

Per share – diluted ($) (1)

0.23

0.22

5

Funds flow from operations (2)

9,222

8,513

8

Per share – basic ($) (1)

0.25

0.23

9

Per share – diluted ($) (1)

0.24

0.23

4

Dividends declared

3,643

3,296

11

Per share (1) (2)

0.10

0.09

11

Capital expenditures

8,375

2,439

243

Cash and cash equivalents

17,264

17,450

(1)

Net working capital (2)

9,742

15,047

(35)

Weighted average shares outstanding

Basic (000s) (1)

37,312

37,282

–

Diluted (000s) (1)

37,752

37,693

–

As at and Three Months Ended

March 31,

2025

2024

Change

Operations

Average daily sales volumes (3) :

Natural gas (Mcfpd), by field:

Caburé (Mcfpd)

11,710

9,236

27

Murucututu (Mcfpd)

2,093

430

387

Total natural gas (Mcfpd)

13,803

9,666

43

NGLs – condensate (bopd)

135

78

73

Oil (bopd)

10

12

(17)

Total (boepd)

2,446

1,701

44

Average realized prices (2) :

Natural gas ($/Mcf)

10.44

12.57

(17)

NGLs – condensate ($/bbl)

81.05

87.89

(8)

Oil ($/bbl)

64.96

65.06

–

Total ($/boe)

63.67

75.94

(16)

Operating netback ($/boe) (2)

Realized sales price

63.67

75.94

(16)

Royalties

(7.60)

(2.02)

276

Production expenses

(5.30)

(7.76)

(32)

Operating netback

50.77

66.16

(23)

Operating netback margin (2)

80 %

87 %

(8)

Notes:

(1)

Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.

(2)

See ‘Non-GAAP and Other Financial Measures’ section within this news release.

(3)

Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

Q1 2025 Results Webcast

Alvopetro will host a live webcast to discuss our Q1 2025 financial results at 8:00 am Mountain time on Thursday May 8, 2025. Details for joining the event are as follows:

DATE: May 8, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812   https://us06web.zoom.us/j/84476502014
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kcHhjt9Duj
WEBINAR ID   : 844 7650 2014

The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .

Annual General Meeting

Alvopetro’s annual general and special meeting (the ‘Meeting’) will be held on Wednesday, June 18, 2025 at the offices of Torys LLP (Suite 4600, 525 8 th SW, Calgary, Alberta ) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials will be available on our website and www.sedarplus.ca later this month.

All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:

DATE: June 18, 2025
TIME : 9:30 AM Mountain/ 11:30 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812   https://us06web.zoom.us/j/89512204386
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kenh5nLlte
WEBINAR ID   : 895 1220 4386

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .

Social   Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy
Instagram – https://www.instagram.com/alvopetro/
LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro’s organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are   building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.

Neither the 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 news release.

Abbreviations:

$000s

=

thousands of U.S. dollars

boepd

=

barrels of oil equivalent (‘boe’) per day

bopd

=

barrels of oil and/or natural gas liquids (condensate) per day

BRL

=

Brazilian Real

Mcf

=

thousand cubic feet

Mcfpd

=

thousand cubic feet per day

MMcf

=

million cubic feet

MMcfpd

=

million cubic feet per day

NGLs

=

natural gas liquids (condensate)

Q1 2024

=

three months ended March 31, 2024

Q1 2025

=

three months ended March 31, 2025

Q4 2024

=

three months ended December 31, 2024

USD

=

United States dollars

GAAP or IFRS

=

IFRS Accounting Standards

Non-GAAP and Other Financial Measures

This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are used by management in assessing the Company’s financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the ‘ Non-GAAP Measures and Other Financial Measures ‘ section of the Company’s MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .

Non-GAAP Financial Measures

Operating Netback

Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the ‘ Operating Netback ‘ section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.

Non-GAAP Financial Ratios

Operating Netback per boe

Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent (‘boe’). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company’s producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the ‘ Operating Netback ‘ section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.

Operating netback margin

Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:

Three Months Ended

March 31,

2025

2024

Operating netback – $ per boe

50.77

66.16

Average realized price – $ per boe

63.67

75.94

Operating netback margin

80 %

87 %

Funds Flow from Operations Per Share

Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:

Three Months Ended

March 31,

$ per share

2025

2024

Per basic share:

Cash flows from operating activities

0.24

0.22

Funds flow from operations

0.25

0.23

Per diluted share:

Cash flows from operating activities

0.23

0.22

Funds flow from operations

0.24

0.23

Capital Management Measures

Funds Flow from Operations

Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company’s ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:

Three Months Ended

March 31,

2025

2024

Cash flows from operating activities

8,817

8,213

Changes in non-cash working capital

405

300

Funds flow from operations

9,222

8,513

Net Working Capital

Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:

As at March 31

2025

2024

Total current assets

25,090

24,149

Total current liabilities

(15,348)

(9,102)

Net working capital

9,742

15,047

Supplementary Financial Measures

‘ Average realized natural gas price – $/Mcf ‘ is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company’s natural gas sales volumes.

‘ Average realized NGL – condensate price – $/bbl ‘ is comprised of condensate sales as determined in accordance with IFRS, divided by the Company’s NGL sales volumes from condensate.

‘ Average realized oil price – $/bbl ‘ is comprised of oil sales as determined in accordance with IFRS, divided by the Company’s oil sales volumes.

‘ Average realized price – $/boe ‘ is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company’s total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

‘ Dividends per share ‘ is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.

‘ Royalties per boe ‘ is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

‘ Production expenses per boe ‘ is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

BOE Disclosure

The term barrels of oil equivalent (‘boe’) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Contracted Natural Gas Volumes

The 2025 contracted daily firm volumes under Alvopetro’s long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro’s reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro’s natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).

Well Results

There is no representation by Alvopetro that the information contained in this news release with respect to initial production data from the wells drilled in Canada is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.

Forward-Looking Statements and Cautionary Language

This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘may’, ‘believe’, ‘estimate’, ‘forecast’, ‘anticipate’, ‘should’ and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro’s long-term gas sales agreement, future production and sales volumes, plans relating to the Company’s operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, the anticipated outcome of the GORR dispute, the timing and taxation of dividends and plans for dividends in the future, anticipated timing for upcoming drilling and testing of other wells, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro’s SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/May2025/07/c6827.html

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Cosmic Clue: Magnetar Flares May Forge Gold, Platinum and Uranium in Deep Space

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A flash of high-energy radiation that rippled through space in December 2004 may have quietly rewritten part of the story for how the universe forges its heaviest elements — including gold, platinum and uranium.

In a breakthrough building on two decades of satellite data and cutting-edge theoretical modeling, a group of astrophysicists has proposed that rare flares from magnetars may be responsible for producing significant quantities of the universe’s r-process elements, long thought to arise primarily from supernovae or neutron star collisions.

“It’s a substantial leap in our understanding of heavy elements production,” said Brian Metzger, professor of physics at Columbia University and senior research scientist at the Flatiron Institute’s Center for Computational Astrophysics.

“This is really just the second time we’ve ever directly seen proof of where these elements form,” he added.

The new research, published last week in ‘The Astrophysical Journal Letters,’ centers on a gamma-ray signal recorded by NASA and European Space Agency telescopes in 2004 — one that has defied explanation until now.

What are magnetars?

Magnetars are among the most extreme objects in the cosmos.

Born from the supernova deaths of massive stars, magnetars condense more mass than the Sun into a city-sized sphere just 12 miles across. Their magnetic fields are up to a thousand times stronger than those of ordinary neutron stars and trillions of times more intense than anything produced on Earth.

Occasionally, these hypermagnetic neutron stars experience “starquakes,” which are sudden, violent fractures in their crusts caused by internal magnetic stress. These quakes unleash giant flares of X-rays and gamma rays so powerful that they can interfere with satellites from halfway across the galaxy.

What remained unclear until now was if these outbursts could also manufacture heavy atoms. That possibility is no longer just theoretical. The clue came from a December 2004 flare, one of the brightest ever observed in our galaxy.

“When initially building our model and making our predictions back in December 2024, none of us knew the signal was already in the data,” Anirudh Patel, the paper’s lead author and a doctoral student at Columbia University, told CNN.

Team members reanalyzed archived data from the European Space Agency’s now-retired INTEGRAL (INTErnational Gamma-Ray Astrophysics Laboratory) mission and NASA’s RHESSI and Wind satellites.

To their surprise, they found a gamma ray glow appearing minutes after the initial burst — one that matched their predicted signature of freshly forged r-process nuclei cooling off.

Theoretical modeling had already suggested that material ejected during a magnetar flare could undergo rapid neutron capture (the r-process), creating heavy elements. The data now strongly suggests that this process had, in fact, occurred.

Making the universe’s bling

R-process elements like gold, platinum and uranium are too heavy to form in the fusion furnaces of normal stars. Instead, they require conditions with free-flying neutrons and intense heat — typically found in rare, cataclysmic events.

Until recently, the leading candidate was a kilonova: the merger of two neutron stars. A 2017 observation of such a collision provided direct evidence of heavy element formation and was dubbed a “cosmic gold factory.”

But kilonovas are relatively infrequent and tend to occur later in a galaxy’s evolution. Magnetars, on the other hand, may have been active much earlier — within a few hundred million years of the Big Bang.

Metzger and his colleagues estimate that a single magnetar flare could eject as many as 2 million billion billion kilograms of heavy atoms. Each flare acts as a kind of elemental forge. As the magnetar’s magnetic field snaps and reorganizes, it sends shock waves through the crust, hurling material into space. This ejected matter enters a crucible of extreme pressure and neutron density, triggering chain reactions that build up complex nuclei.

The conditions, researchers say, are just right for the formation of r-process elements — not just gold and platinum, but also uranium and other neutron-rich atoms.

More research needed

Not everyone in the astrophysical community is ready to declare magnetars the newest gold mine of the cosmos.

Dr. Eleonora Troja, an associate professor at the University of Rome who led the discovery of X-rays from the 2017 neutron star merger, urged caution while speaking to CNN.

“The production of gold from this magnetar is a possible explanation for its gamma-ray glow, one among many others as the paper honestly discusses at its end,” she said.

“I wouldn’t go so far as to say that a new source of gold has been discovered.”

She pointed out that magnetars are “very messy objects” whose flares can sometimes yield lighter elements like zirconium or silver instead of gold, depending on the specific conditions.

Astronomers now eagerly await the next giant magnetar flare, hoping to catch it in real time.

Future missions like NASA’s Compton Spectrometer and Imager, slated for a 2027 launch, promise greater sensitivity to detect and study these fleeting signals across multiple wavelengths.

For now, scientists have added one more explosive event to the list of stellar alchemists.

Whether magnetars are a main supplier of heavy elements or just one piece of the puzzle, they’ve earned a spotlight in the ongoing investigation into how the universe crafts some of its most valuable matter.

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

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