Category: Latin America

MIL-OSI Global: Russia’s Brics summit shows determination for a new world order – but internal rifts will buy the west some time

Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

The recent Brics summit in the Russian city of Kazan was less notable for what happened at the meeting than for what happened before, on the margins, or not at all. Among the notable things that did not happen was another expansion of the organisation.

Since the addition of Egypt, Ethiopia, Iran and the United Arab Emirates (UAE) at the 2023 Brics summit in Johannesburg, which almost doubled the number of member countries from the original five (Brazil, Russia, India, China and South Africa), further enlargement has stalled.

Argentina, which was also invited in 2023, declined to join. Saudi Arabia, another 2023 invitee, has not acted on the offer to become a member either. Its de-facto ruler, crown prince Mohammad bin Salman, was among the notable absentees in Kazan.

And Kazakhstan, Russia’s largest neighbour in Central Asia, decided not to join shortly before the summit. This drew Russia’s ire, resulting in a prompt ban on imports of a range of agricultural products from Kazakhstan in retaliation.

While invitees have declined the opportunity to join Brics, a long list of applicants have not been offered membership. According to a statement by Russia’s president, Vladimir Putin, at a meeting of senior Brics security officials in September, 34 countries have expressed an interest in closer relations with Brics in some form.

This appears to be a substantial increase in interest in Brics membership compared to a year ago, when South Africa’s foreign minister, Naledi Pandor, listed 23 applicants ahead of the 2023 summit.

But the fact that, since then, only six invitations have been extended – and four accepted – indicates that formal enlargement of the organisation, at least for now, has been stymied by the inability of current members to forge consensus over the next round of expansion and the reluctance on the part of some invitees to be associated with the organisation.

Meetings on the margins

The summit declaration may offer little of substance. But there were a number of bilateral meetings before and in the margins of the gathering that are more indicative of the direction of Brics. Perhaps most importantly, India’s prime minister, Narendra Modi, and China’s president, Xi Jinping, held their first face-to-face discussion in five years.

This is a remarkable change from just a few months ago, when tensions between New Delhi and Beijing were intense enough for Modi to cancel his participation in the summit of the Shanghai Cooperation Organisation in Astana, Kazakhstan. Yet, with a deal now reached over their countries’ longstanding border dispute, the two most populous and, in terms of GDP, economically most powerful members of Brics have an opportunity to rebuild their fraught relations.

A warming of relations between China and India could generate more momentum for Brics to deliver on its ambitious agenda to develop, and ultimately implement, a vision for a new global order. Implicit in this would be a shift of leadership in Brics from China and Russia to China and India, and with it, potentially a change from an anti-western to a non-western agenda.

This is, of course, something that exercises Putin. He acknowledged as much when he referred to the global south and global east in his remarks at the summit’s opening meeting. He also emphasised that it was important “to maintain balance and ensure that the effectiveness of Brics mechanisms is not diminished”.

In his own bilateral meetings before and during the summit, Putin drove home the point that, despite western efforts, Russia was far from isolated on the world stage. One-to-one meetings with Xi, Modi, South Africa’s president, Cyril Ramaphosa, and the president of the UAE, Mohammed bin Zayed Al Nahyan, gave Putin the chance to push his own vision of Brics as a counterpoint to the US-led west.

This may be a view shared in the global east – Russia, China and Iran, as well as non-Brics members North Korea, Cuba and Venezuela. But many in the global south – particularly India and Brazil – are unlikely to go all in with this agenda. They will focus on benefiting from their Brics membership as much as possible while maintaining close ties with the west.

Lacking a coherent agenda

India is the most significant player in Brics when it comes to balancing between east and west. Nato member Turkey is the equivalent on the outside. The country’s president, Recep Tayyip Erdoğan, travelled to Kazan and did not shy away from an hour-long meeting with his “dear friend” Putin.

The relationship between Moscow and Ankara is fractious and complex across a wide range of crises from the South Caucasus, to Syria, Libya and Sudan. Yet, on perhaps the most divisive issue of all, Russian aggression towards Ukraine, Turkey has consistently maintained opened channels of communication with Russia and remains the only Nato power able to do so.

Read more:
Turkey attempts to broker power between east and west as it bids to join Brics

The fact that there has been relatively little public pressure from official sources in the west on Erdoğan to stop is probably a reflection that such communication channels are still valued in the west. This, and Nato’s continued cooperation with India, point to a hedging strategy by the west. India cooperates with the US, Australia and Japan – the so-called Quad group of nations – on security in the Indo-Pacific, and it has maintained political dialogue with Nato since 2019.

Turkey and India may not see eye-to-eye with the west on all issues. But neither do they with the global east camp inside Brics, and especially not with Russia. If nothing else, this limits the ability of Brics to forge a coherent agenda, deepen integration and ultimately mount a credible challenge to the existing order.

Relying on India and Turkey to do the west’s bidding in undermining Brics, however, is not a credible long-term strategy. Brics may have achieved little as an organisation, but the Kazan summit declaration indicates that its key players continue to harbour aspirations for more.

However, as the flailing expansion drive of the organisation indicates, there is also an internal battle in Brics over its future direction. This, in turn, creates space and time for the west to exercise more positive and constructive influence in the ongoing process of reshaping the international order.

The global east may be beyond redemption, but there is still a massive opportunity to reengage with the global south.

Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

– ref. Russia’s Brics summit shows determination for a new world order – but internal rifts will buy the west some time – https://theconversation.com/russias-brics-summit-shows-determination-for-a-new-world-order-but-internal-rifts-will-buy-the-west-some-time-241610

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Economics: Court Extends Gulf of Mexico Biological Opinion Deadline

Source: International Association of Drilling Contractors – IADC

Headline: Court Extends Gulf of Mexico Biological Opinion Deadline

Houston (25 October 2024) – A federal court has extended the deadline to vacate the 2020 Biological Opinion on the Federally Regulated Oil and Gas Program Activities in the Gulf of Mexico. The National Marine Fisheries Service (NMFS) now has until May 21, 2025, instead of December 20, 2024, to issue a new biological opinion, as required by the Endangered Species Act for offshore permitting.

IADC views this deadline extension favorably. The original decision to vacate the 2020 Biological Opinion in December 2024 would have essentially shut down operations in the Gulf of Mexico, threatening thousands of jobs and U.S. energy security. IADC supports the industry stakeholders working diligently on this matter and is fully prepared to provide direct assistance in these efforts.

ABOUT IADC

The International Association Drilling Contractors (IADC) is a non-profit trade association that is the global leader in advancing and promoting innovative technology and safe practices that bring oil and gas to the world’s consumers.

###

MIL OSI Economics –

January 25, 2025
MIL-OSI Security: Defense News: U.S. Naval Forces Participate in Republic of Korea Multi-National Mine Warfare Exercise

Source: United States Navy

Part of an annual series of exercises hosted by the ROK Navy, MNMIWEX 24 increased proficiency in mine countermeasures (MCM) operations within a multi-national naval force.

This year’s iteration had 19 nations and approximately 100 personnel participating, making MNMIWEX 24 the largest of the series to be held.

“I was grateful for the opportunity to work with our hosts, the ROK Navy, and our partner nations and allies,” said Capt. Antonio Hyde, commodore of Mine Counter Measures Squadron (MCMRON) Seven, which belongs to Task Force 76, U.S. 7th Fleet’s expeditionary warfare force. “This multi-national training refines how we operate in a complex maritime environment to maintain open sea-lanes and freedom of navigation for all countries in the region.”

MCM forces from the U.S., Australia, Canada and New Zealand embarked the tank landing ship ROKS Cheon Wang Bong (LST 686), which teamed with the Avenger-class mine countermeasures ship USS Patriot (MCM 7) to conduct mine hunting operations during the eight-day at-sea phase.

A multinational watch floor directed MNMIWEX operations ashore. This facilitated a command structure that promoted interchangeability and helped build the capacity of multinational MCM forces to operate effectively as a team.

“Through this exercise, we improve our abilities to carry out multinational mine operations to protect major ports and sea lines of communication from the complex threats of enemy in case of emergency,” said Capt. Lee Taek-sun, commander of ROK Navy Mine Squadron 52. “We will continue to develop the combat capabilities necessary for mine warfare and further improve mine operation abilities and procedures with multinational forces.”

MNIMIWEX 24 featured participants from the United States, Republic of Korea, Japan, the United Kingdom, Australia, Canada, New Zealand, the Republic of the Philippines, Italy, Greece, Türkiye, Thailand, Belgium, Malaysia, Oman, Colombia, United Arab Emirates, Chile and the Netherlands.

The exercise took place in U.S. 7th Fleet, the U.S. Navy’s largest forward-deployed numbered fleet, which routinely interacts and operates with allies and partners in preserving a free and open Indo-Pacific region.

MIL Security OSI –

January 25, 2025

MIL-OSI USA: N.M. Delegation Announces Over $3 Million for Tribal Communities to Address Opioid Use Disorder

US Senate News:

Source: US Senator for New Mexico Ben Ray Luján

ALBUQUERQUE, N.M. — U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) are announcing $3,068,909 from the U.S. Department of Health and Human Services (HHS) to Tribal communities to serve individuals with opioid use disorder and co-occurring substance use disorders by funding culturally specific and evidence-based treatment, including medication for the treatment of opioid use disorder (MOUD). These HHS Tribal Opioid Response Grants are being awarded through the Substance Abuse and Mental Health Services Administration (SAMHSA).

“Tackling the opioid crisis with the urgency it demands means expanding our approach. That includes everything from providing improved access to the lifesaving medication used to treat opioid use disorder to empowering local communities to develop treatment programs that are grounded in their distinct experiences and cultures. I’m proud to welcome over $3 million for Tribal communities to do exactly that,” said Heinrich. “I won’t stop fighting to eliminate barriers to lifesaving medication and help New Mexicans get the care they need.”

“Far too many across our Tribal lands have seen firsthand how the opioid epidemic has devastated our communities,” said Luján, a member of the Indian Affairs and Health, Education, Labor and Pensions Committees. “This $3+ million in federal funding will deliver critical treatments and medications to address opioid use disorder in our Tribal communities. Throughout my time in Congress, I have secured millions to expand opioid use disorder treatments, introduced bipartisan legislation to increase investments in substance misuse prevention, and called for an increase in funding in our nation’s response to the opioid use disorder epidemic. I am proud to welcome this funding alongside our Congressional delegation and will keep fighting to expand addiction treatment services and protect the health of our Tribal brothers and sisters.”

“For far too long, opioid addiction has ravaged our Tribal communities, and the need for culturally specific treatments is critical,” said Leger Fernández. “This funding will help provide life-saving treatment, tailored to the needs of Native communities, so that we can address the opioid crisis head-on. By combining evidence-based practices with the cultural knowledge of our Tribes, we can offer real hope and healing. I will continue to fight for more resources and support to make sure every New Mexican has access to the care they need to recover and thrive.”

“Culturally informed care is vital to addressing the opioid crisis in every community that is suffering,” said Stansbury. “This $3 million investment will help Tribal communities take care as they see fit, as they know what is best for their communities. I will continue to fight for more funding and tools to solve this crisis so New Mexicans can not only recover from addiction but thrive in life.”

“New Mexico’s Tribes and Pueblos have long faced significant challenges in combating the opioid crisis. I’m proud to welcome these funds to provide critical resources to help address opioid addiction head-on,” said Vasquez. “Supporting culturally specific and evidence-based treatments ensures that we’re not only tackling the crisis but also providing Indian Country with the tools they need to better support recovery. I’m committed to securing more funding and resources to combat this crisis and save lives.”

Recipient	Award Amount
Albuquerque Area Indian Health	$1,478,168
Pueblo of Pojoaque	$250,000
Five Sandoval Indian Pueblos, Inc.	$250,000
Santo Domingo Tribe	$295,107
Ohkay Owingeh	$250,000
Nambe Pueblo Governor’s Office	$295,634
Taos Pueblo	$250,000

The N.M. Delegation has continuously worked to make opioid use disorder treatments more readily available.

MIL OSI USA News –

January 25, 2025

MIL-Evening Report: Want genuine progress towards restoring nature? Follow these 4 steps

Source: The Conversation (Au and NZ) – By Yi Fei Chung, PhD candidate in Environmental Policy, The University of Queensland

Black Dingo/Shutterstock

“Nature positive” is seemingly everywhere. Two weeks ago, Australia hosted the first Global Nature Positive Summit. This week, nations are meeting in Colombia for a global biodiversity summit to discuss progress on nature positive commitments.

Nature positive has a simple meaning: ensuring more nature in future than there is now. Making it a reality is the hard part.

It’s necessary because nature is in trouble. Once common species are becoming threatened and threatened species are going extinct. Humans, too, will be severely impacted. When ecosystems are healthy, they provide vital benefits. Insects pollinate crops, trees slow floodwaters, earthworms, fungi and soil critters make healthy soil and natural vistas improve our mental wellbeing.

While Australia’s government is working to embed nature positive ideas in environmental reform efforts, we may see lip service rather than real change. The government’s Nature Positive Plan faces opposition from businesses and politicians ahead of a looming election. And the plan itself doesn’t fully align with true nature positive outcomes.

In our article published today in Science, we lay out four vital steps to ensure nature positive policies are actually positive for nature.

Step 1: Ensure biodiversity increases are absolute

At present, Australia’s planned nature positive reforms would only require developers removing habitat to achieve a relative net gain for nature compared to business as usual.

We have argued this approach won’t work – it should be an absolute net gain.

It might sound abstract – but it makes all the difference. For instance, consider a population of endangered koalas living on the site of a new mine. Any negative impact to koalas would have to be offset with a benefit to the species elsewhere, usually on a separate site.

If Australia had absolute net gain in effect, the company would have to ensure there are more koalas overall. If the mine site and an offset site had a combined population of 100 koalas before the development, this combined population would need to be more than 100 koalas after the development – even though some will be lost.

But let’s say these 100 koalas over two sites were expected to fall to 80, even if the mine didn’t happen. In this case, a relative net gain could be achieved if the mine and offset site had 90 koalas. The population fell, but less than it would have otherwise.

Most state and national conservation laws use relative net gain in their biodiversity offsets. It slows the biodiversity decline – but it’s still a decline.

By contrast, England brought in a net gain approach in February of this year, with developers now required to provide a 10% net gain in biodiversity.

Importantly, the vast majority of developments affecting threatened species habitat never require any offset at all. Plugging this major gap is also key.

Read more:
Developers in England will be forced to create habitats for wildlife – here’s how it works

For nature positive to work properly, any damage done to a species by a development has to be offset by net gain. Pictured: Peak Hill gold mine in NSW.
Phillip Wittke/Shutterstock

Step 2: Avoid conservation payments in risky situations

The Australian government plans to introduce conservation payments, where developers can pay into a government-managed fund rather than providing direct offsets.

If developers were to cut down trees used by the critically endangered Leadbeater’s possum, for example, they could choose either to improve habitat elsewhere to offset the damage – or they could pay into the fund instead.

This is a risky plan. For one, it’s often almost impossible or extremely expensive to find suitable habitat for critically endangered species because they have very little habitat remaining.

It’s far better to avoid all further habitat removal. For developers, this would mean avoiding damage to rare habitat in the first place.

Even where offsetting is possible, payments are often inadequate to cover the cost of purchasing and managing an offset site.

Read more:
Developers aren’t paying enough to offset impacts on koalas and other endangered species

Then there’s the time lag. The fund might take years to buy or restore habitat sites, adding to already-long delays between damage and any benefit. And worse, under the government’s proposal, the money could be used for different, potentially less threatened species.

Under Queensland’s scheme, most developers choose to pay into a fund rather than create their own offset sites. Very little of these offset funds have been spent.

Meanwhile, the latest independent assessment of the New South Wales biodiversity offset payment scheme recommended the fund be completely phased out.

Step 3: Go beyond compensation

Compensating for new damage is important. But it’s not nearly enough. Over the last century, we have done huge damage to the natural world. Australia’s southern seas were once ringed with oyster reefs, for instance, but these were nearly all fished out.

We need to begin to recover what was lost by restoring ecosystems, managing weeds and reducing risk of diseases.

Nature-positive laws should include funding and actions designed to produce absolute gains in biodiversity over and above any required compensation.

The world has long seriously underfunded conservation, including threatened species recovery, ecosystem restoration and protected area management. Australia alone needs a roughly 20-fold increase in funding to actually bring back threatened species.

While this sounds large, it’s off an extraordinarily low base – just A$122 million in 2019. By contrast, we spend over $100 billion on human health each year.

Two years ago, the government passed the first of its nature-positive reforms to create a nature repair market aimed at drawing more funds into nature restoration. But as the market will rely on voluntary private sector investment, we don’t know how much funding will flow or whether it will focus on threatened species recovery.

Step 4: Effectively implement nature positive laws

Ensuring compliance with new nature-positive laws requires transparent and effective enforcement, such as through the independent national environment protection authority with extra powers proposed in Australia.

Its independence and powers may be less than required, due to proposed call-in powers allowing the minister to overrule decisions. True independence and adequate resources are crucial.

If governments do pass environmental reforms, we need to collect adequate and robust data on species to know if they are actually working to boost nature recovery. At present, many Australian threatened species remain unmonitored.

Is nature positive within reach?

It’s not easy to create a future with more nature than we have now. Australia’s current government took office vowing to embrace nature positive. To date, their reforms are not yet likely to make that a reality.

Read more:
Australia desperately needs a strong federal environmental protection agency. Our chances aren’t looking good

But the task will only get more urgent. Meaningful nature-positive policy means ensuring targets of absolute net gain for threatened species, ensuring strict compensation for any nature loss, independently resourcing and financing other recovery efforts and implementing these laws effectively.

With a course correction, Australia can still act as a leading example for other nations as they reform their own policies to meet nature-positive ambitions. Now is the time for real and decisive action.

We acknowledge our research coauthors, Brooke Williams (Queensland University of Technology), Martine Maron (University of Queensland), Jonathan Rhodes (Queensland University of Technology), Jeremy Simmonds (2rog), and Michelle Ward (Griffith University).

Yi Fei Chung has received funding from UQ Research Training Scholarship. He is also involving in a Australian Research Council Linkage Project with financial and in-kind support from the NSW Department of Planning and Environment, the Biodiversity Conservation Trust, Tweed Shire Council, and the NSW Koala Strategy.

Hannah Thomas has received funding from WWF-Australia and an Australian Government Research Training Program Scholarship. She is an early-career leader with the Biodiversity Council.

– ref. Want genuine progress towards restoring nature? Follow these 4 steps – https://theconversation.com/want-genuine-progress-towards-restoring-nature-follow-these-4-steps-240569

MIL OSI Analysis – EveningReport.nz –

January 25, 2025
MIL-OSI USA: China-Based Chemical Manufacturing Companies and Employees Indicted for Alleged Fentanyl Manufacturing and Distribution

Source: US State of California

Today, the Justice Department announced the unsealing of indictments against eight China-based chemical companies and eight employees charging federal crimes, including attempted distribution of synthetic opioids and precursor chemicals used in the production of fentanyl, and money laundering. The indictments were filed under seal in the Middle District of Florida over the past year.

“Today, the Justice Department announced charges against eight China-based companies and eight individuals we allege are responsible for trafficking precursor chemicals that cartels use to manufacture lethal fentanyl,” said Attorney General Merrick B. Garland. “The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies based in China. In order to break this critical link in the fentanyl supply chain, the Justice Department has aggressively investigated and prosecuted these companies. We will continue to target every organization and individual that fuels the deadly drug trade.”

As described in the unsealed indictments, the defendants openly advertised their ability to thwart border officials and deliver the synthetic opioids or the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants deliberately engaged in evasive activities, such as mislabeling the contents of shipments to ensure the illicit chemicals and controlled substances went undetected. As a result, these companies were able to sell a stable supply of precursor chemicals to clients in Mexico and the United States for years. One of the companies even represented that every month it sends “more than 20 kilograms to the United States, Africa, Canada, and other countries.”

“Today’s indictments against eight China-based chemical companies and eight Chinese nationals are further evidence of DEA’s unwavering commitment to disrupt every aspect of the global fentanyl supply chain,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “For the third time in over a year, DEA investigations have resulted in charges against chemical companies and individuals in China who we allege are supplying chemicals to the cartels to make deadly fentanyl. While they may go to great lengths to try to evade our detection, DEA will use every tool and authority we have to save American lives.”

The indictments target the evolving tactics of drug traffickers, who often adapt to tightening restrictions on the production and sale of fentanyl. For example, when China banned the production of fentanyl in 2019, China-based companies began producing and selling fentanyl precursors, the ingredients needed to manufacture the drug. These China-based companies distribute fentanyl precursors throughout the world, including to the United States and to Mexico, where drug cartels such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación combine the chemicals into fentanyl and other synthetic opioids that they then distribute throughout the United States and the rest of the world.

“These indictments are part of our continuing commitment to the protection of our country from the deadly scourge of fentanyl,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Along with our partners at the Drug Enforcement Administration, we will be relentless in our pursuit of China-based chemical companies and their employees who are knowingly manufacturing and exporting fentanyl precursors that cause thousands of deaths every year in the United States.”

The Justice Department acknowledges the efforts of the People’s Republic of China, Ministry of Public Security. The following indicted companies are now out of operation: Jiangsu Jiyi Chemical, Tianjin Furuntongda Tech Co. Ltd, Wuhan Jinshang Import & Export Trading Co. Ltd., Hubei Shanglin Trading Co., and Wuhan Mingyue Information Technology.

In addition, the People’s Republic of China has recently scheduled three key chemicals, which in turn provides additional tools for the People’s Republic of China to regulate the chemicals’ production and distribution. DEA Administrator Milgram said, “I would also like to recognize the work done by the People’s Republic of China’s Ministry of Public Security in taking action to schedule protonitazene, piperidone, and 1-BOC-4-AP, which were not scheduled at the time of these investigations, but have now been scheduled.”

The DEA investigated the cases.

Assistant U.S. Attorneys David Chee, David Pardo, Lauren Stoia, and Adam McCall and Special Assistant U.S. Attorney Ashley Haynes for the Middle District of Florida are prosecuting the cases.

These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Case Summaries

In January, Guangzhou Tengyue Chemical Co. Ltd., based in Guangzhou, Guangdong Province, China, was charged with attempted importation of protonitazene, along with Chinese national Xiaojun Huang, who allegedly maintained a Bitcoin wallet for the remittance of payments for illicit synthetic opioids on the company’s behalf.

In January, Hubei Shanglin Trading Co., based in Wuhan, Hubei Province, China, was charged with attempted international money laundering, along with Chinese national Zhihan Wang, who was the alleged registered owner of a Bitcoin wallet associated with the company utilized to complete the sale of fentanyl precursors.

In November 2023, Jiangsu Jiyi Chemical, based in Beijing, Hebei Province, China, was charged with attempted importation of protonitazene, along with Ji Zhaohui, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In January, Tianjin Furuntongda Tech Co. Ltd, based in Tianjin, Hebei Province, China, was charged with attempted importation of fentanyl precursors, along with Wenxing Gao, a Chinese national, who was the alleged registered agent of Tianjin Furuntongda and the owner of a cryptocurrency wallet associated with the company.

In November 2023, Wuhan Jinshang Import & Export Trading Co. Ltd., based in Wuhan, Hubei Province, China, was charged with attempted importation of protonitazene, attempted importation of a fentanyl precursor, and attempted international money laundering, along with Wenying Nie, a Chinese national, who was the alleged holder of a Bitcoin wallet associated with the company.

In January, Wuhan Mingyue Information Technology, based in Wuhan, Hubei Province, China, was charged with attempted importation of fentanyl precursors and attempted international money laundering, along with Chinese national Huanhuan Song, who was the alleged recipient of funds via Western Union on the company’s behalf and the alleged holder of a cryptocurrency wallet associated with the company.

In June, Henan Oumeng Trade Co. Ltd., based in Zhengzhou, Henan Province, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Yinxia Zhao, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In June, Shanghai Senria New Materials Co. Ltd., doing business as Shanghai Senria Biotechnology Co. Ltd., based in the Fengxian District of Shanghai, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Zhenbo Han, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: China-Based Chemical Manufacturing Companies and Employees Indicted for Alleged Fentanyl Manufacturing and Distribution

Source: United States Attorneys General 7

Today, the Justice Department announced the unsealing of indictments against eight China-based chemical companies and eight employees charging federal crimes, including attempted distribution of synthetic opioids and precursor chemicals used in the production of fentanyl, and money laundering. The indictments were filed under seal in the Middle District of Florida over the past year.

“Today, the Justice Department announced charges against eight China-based companies and eight individuals we allege are responsible for trafficking precursor chemicals that cartels use to manufacture lethal fentanyl,” said Attorney General Merrick B. Garland. “The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies based in China. In order to break this critical link in the fentanyl supply chain, the Justice Department has aggressively investigated and prosecuted these companies. We will continue to target every organization and individual that fuels the deadly drug trade.”

As described in the unsealed indictments, the defendants openly advertised their ability to thwart border officials and deliver the synthetic opioids or the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants deliberately engaged in evasive activities, such as mislabeling the contents of shipments to ensure the illicit chemicals and controlled substances went undetected. As a result, these companies were able to sell a stable supply of precursor chemicals to clients in Mexico and the United States for years. One of the companies even represented that every month it sends “more than 20 kilograms to the United States, Africa, Canada, and other countries.”

“Today’s indictments against eight China-based chemical companies and eight Chinese nationals are further evidence of DEA’s unwavering commitment to disrupt every aspect of the global fentanyl supply chain,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “For the third time in over a year, DEA investigations have resulted in charges against chemical companies and individuals in China who we allege are supplying chemicals to the cartels to make deadly fentanyl. While they may go to great lengths to try to evade our detection, DEA will use every tool and authority we have to save American lives.”

The indictments target the evolving tactics of drug traffickers, who often adapt to tightening restrictions on the production and sale of fentanyl. For example, when China banned the production of fentanyl in 2019, China-based companies began producing and selling fentanyl precursors, the ingredients needed to manufacture the drug. These China-based companies distribute fentanyl precursors throughout the world, including to the United States and to Mexico, where drug cartels such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación combine the chemicals into fentanyl and other synthetic opioids that they then distribute throughout the United States and the rest of the world.

“These indictments are part of our continuing commitment to the protection of our country from the deadly scourge of fentanyl,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Along with our partners at the Drug Enforcement Administration, we will be relentless in our pursuit of China-based chemical companies and their employees who are knowingly manufacturing and exporting fentanyl precursors that cause thousands of deaths every year in the United States.”

The Justice Department acknowledges the efforts of the People’s Republic of China, Ministry of Public Security. The following indicted companies are now out of operation: Jiangsu Jiyi Chemical, Tianjin Furuntongda Tech Co. Ltd, Wuhan Jinshang Import & Export Trading Co. Ltd., Hubei Shanglin Trading Co., and Wuhan Mingyue Information Technology.

In addition, the People’s Republic of China has recently scheduled three key chemicals, which in turn provides additional tools for the People’s Republic of China to regulate the chemicals’ production and distribution. DEA Administrator Milgram said, “I would also like to recognize the work done by the People’s Republic of China’s Ministry of Public Security in taking action to schedule protonitazene, piperidone, and 1-BOC-4-AP, which were not scheduled at the time of these investigations, but have now been scheduled.”

The DEA investigated the cases.

Assistant U.S. Attorneys David Chee, David Pardo, Lauren Stoia, and Adam McCall and Special Assistant U.S. Attorney Ashley Haynes for the Middle District of Florida are prosecuting the cases.

These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Case Summaries

In January, Guangzhou Tengyue Chemical Co. Ltd., based in Guangzhou, Guangdong Province, China, was charged with attempted importation of protonitazene, along with Chinese national Xiaojun Huang, who allegedly maintained a Bitcoin wallet for the remittance of payments for illicit synthetic opioids on the company’s behalf.

In January, Hubei Shanglin Trading Co., based in Wuhan, Hubei Province, China, was charged with attempted international money laundering, along with Chinese national Zhihan Wang, who was the alleged registered owner of a Bitcoin wallet associated with the company utilized to complete the sale of fentanyl precursors.

In November 2023, Jiangsu Jiyi Chemical, based in Beijing, Hebei Province, China, was charged with attempted importation of protonitazene, along with Ji Zhaohui, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In January, Tianjin Furuntongda Tech Co. Ltd, based in Tianjin, Hebei Province, China, was charged with attempted importation of fentanyl precursors, along with Wenxing Gao, a Chinese national, who was the alleged registered agent of Tianjin Furuntongda and the owner of a cryptocurrency wallet associated with the company.

In November 2023, Wuhan Jinshang Import & Export Trading Co. Ltd., based in Wuhan, Hubei Province, China, was charged with attempted importation of protonitazene, attempted importation of a fentanyl precursor, and attempted international money laundering, along with Wenying Nie, a Chinese national, who was the alleged holder of a Bitcoin wallet associated with the company.

In January, Wuhan Mingyue Information Technology, based in Wuhan, Hubei Province, China, was charged with attempted importation of fentanyl precursors and attempted international money laundering, along with Chinese national Huanhuan Song, who was the alleged recipient of funds via Western Union on the company’s behalf and the alleged holder of a cryptocurrency wallet associated with the company.

In June, Henan Oumeng Trade Co. Ltd., based in Zhengzhou, Henan Province, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Yinxia Zhao, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In June, Shanghai Senria New Materials Co. Ltd., doing business as Shanghai Senria Biotechnology Co. Ltd., based in the Fengxian District of Shanghai, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Zhenbo Han, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

January 25, 2025
MIL-OSI Security: Mexican National Admits Role in Smuggling and Labor Trafficking Scheme

Source: United States Department of Justice (Human Trafficking)

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARIA DEL CARMEN SANCHEZ POTRERO, also known as Maria Carmela Sanchez, 73, a citizen of Mexico last residing in Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a charge stemming from her involvement in a scheme to smuggle aliens into the U.S., harbor them at Hartford area residences, force them to work, and threaten to harm them in various ways if they failed to pay exorbitant fees, interest, and other living expenses.

According to court documents and statements made in court, beginning in September 2022, the FBI and Hartford Police interviewed several Mexican nationals who disclosed that they were smuggled from Mexico into the U.S. and transported to Hartford. The investigation revealed that victims typically arranged with Sanchez, her co-conspirators in Connecticut, and associates in Mexico to cross the border into the U.S. in exchange for a fee of between $15,000 and $20,000 that each would need to pay once they were in the U.S. In most cases, the victims were required to turn over a property deed as collateral before leaving Mexico. They were then smuggled across the border and transported to Hartford area residences, including Sanchez’s residence on Madison Street in Hartford, often at a substantial risk of bodily injury or death.

After the victims arrived in Connecticut, they were told that they would have to pay $30,000, with interest, and that they would have to pay Sanchez and her co-coconspirators for rent, food, gas and utilities. Sanchez and her co-conspirators created false documents for the victims, including Permanent Residence cards and Social Security cards, and helped the victims find employment in the Hartford area. In addition to their own jobs, some victims were required to perform housework and yardwork without compensation and without having their debt reduced.

Victims were rarely provided with an accounting of their debt. If victims failed to make regular payments, or in amounts that Sanchez and her co-conspirators expected, they were sometimes threatened, including with threats to harm family members in Mexico, to take property in Mexico that had been secured as collateral, to reveal victims’ immigration status to U.S. authorities, and to raise their interest payments.

To date, investigators have identified 18 victims of this scheme.

Sanchez pleaded guilty to conspiracy to encourage and induce, bring in, transport, and harbor aliens, an offense that carries a maximum term of imprisonment of 10 years. Judge Dooley scheduled sentencing for January 16, 2025.

As part of her plea agreement, Sanchez has agreed to a restitution order of $494,608.

Sanchez has been detained since her arrest on March 1, 2023.

This investigation is being conducted by the Federal Bureau of Investigation, Hartford Police Department, U.S. Department of Labor – Office of Inspector General, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Angel Krull and Shan Patel.

MIL Security OSI –

January 25, 2025

MIL-OSI: PEL 83 Second Exploration Campaign Commencement of Operations – Spud of Mopane 1-A Well

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Sintana Energy Inc. (TSX-V: SEI, OTCQB: SEUSF) (“Sintana” or the “Company”) is pleased to provide the following update regarding a second exploration and appraisal campaign on blocks 2813A and 2814B located in the heart of Namibia’s Orange Basin, emerging as one of the world’s most prospective oil and gas regions. The blocks are governed by Petroleum Exploration License 83 (“PEL 83”) which is operated by a subsidiary of Galp Energia (“Galp”) of Portugal. Sintana maintains an indirect 49% interest in Custos Energy (Pty) Ltd. (“Custos”), which in turn owns a 10% working interest owner in PEL 83. NAMCOR, the National Petroleum Company of Namibia, also maintains a 10% working interest.

The drill ship Santorini has arrived on location and operations associated with the Mopane 1-A well have commenced. Specifically, the Mopane 1-A was spud 23:30 local time on October 23^rd.

This appraisal well is the first of an up to four well program potentially consisting of two exploration wells and two appraisal wells. This second campaign on PEL 83 is predicated on providing additional insights into the scope and quality of the Mopane complex.

We refer to press releases from Galp (available at galp.com) and Custos (available at newsdirect.com) throughout Q1 and Q2 of 2024, noting that an inaugural two well exploration campaign that commenced in Q4 2023 resulted in multiple discoveries of significant columns of light oil in high-quality reservoir sands providing for an initial estimate of original oil in place (“OOIP”) of 10 billion barrels of oil equivalent. A drill stem test was also conducted resulting in an infrastructure constrained flow of 14,000 boe/d.

Initial analysis suggests the reservoirs have good porosities, high pressures and high permeabilities in large hydrocarbon columns with very low oil viscosity, and no CO2 nor H2S. The flows achieved during the well test have reached the maximum allowed limits, positioning Mopane as, potentially, an important commercial discovery. 

“We look forward to the continuing progress on PEL 83, further unveiling of the potential and quality of the Mopane complex. These efforts should provide additional insights into this world class opportunity and into our broader Orange Basin portfolio located at the heart of this emerging hydrocarbon province.” said Robert Bose, Chief Executive Officer of Sintana.

ABOUT SINTANA ENERGY:

The Company is engaged in petroleum and natural gas exploration and development activities on five large, highly prospective, onshore and offshore petroleum exploration licenses in Namibia, and in Colombia’s Magdalena Basin.

On behalf of Sintana Energy Inc.,
“A. Robert Bose”
Chief Executive Officer

For additional information or to sign-up to receive periodic updates about Sintana’s projects, and corporate activities, please visit the Company’s website at www.sintanaenergy.com

Corporate Contacts:		Investor Relations Advisor:
Robert Bose	Sean J. Austin	Jonathan Paterson
Chief Executive Officer	Vice-President	Founder & Managing Partner
212-201-4125	713-825-9591	Harbor Access
		475-477-9401

Forward-Looking Statements

Certain information in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to potential future farmout agreements on PEL 83 and/or PEL 87, and proposed future exploration and development activities on PEL 83 and/or PEL 90 and neighbouring properties, as well as the prospective nature of the Company’s property interests. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including, but not limited to risks relating to the receipt of all applicable regulatory approvals, results of exploration and development activities, the ability to source joint venture partners and fund exploration, permitting and government approvals, and other risks identified in the Company’s public disclosure documents from time to time. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law.

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 RELEASE.

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/ca79be82-d8c9-4894-be4d-1acfbcc48be3

The MIL Network –

January 25, 2025

MIL-OSI: Transocean Ltd. Provides Quarterly Fleet Status Report
Source: GlobeNewswire (MIL-OSI)

STEINHAUSEN, Switzerland, Oct. 24, 2024 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs.

This quarter’s report includes the following updates:
- Deepwater Atlas – Awarded a 365-day contract in the U.S. Gulf of Mexico at a dayrate of $635,000.
- Deepwater Conqueror – Awarded a 365-day contract in the U.S. Gulf of Mexico at a dayrate of $530,000.
- Deepwater Invictus – Awarded a 1095-day contract in the U.S. Gulf of Mexico at a dayrate of $485,000.
- Deepwater Invictus – Awarded two one-well contract extensions in the U.S. Gulf of Mexico.
- Dhirubhai Deepwater KG1 – Awarded a six-well contract in India at a dayrate of $410,000.
- Transocean Spitsbergen – Customer exercised a three-well option in Norway at a dayrate of $483,000.
- Transocean Endurance – Customer exercised a one-well option in Australia at a dayrate of $390,000.
- Transocean Endurance – Customer exercised a five-well option in Australia at a dayrate of $390,000.
The aggregate incremental backlog associated with these fixtures is approximately $1.3 billion. As of October 24, 2024, the company’s total backlog is approximately $9.3 billion.

The report can be accessed on the company’s website: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are beyond our control, and many cases, cannot be predicted. As a result, actual results could differ materially from those indicated by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, the cost and timing of mobilizations and reactivations, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647

The MIL Network –
January 25, 2025
MIL-OSI USA: Duckworth, Durbin Join Sanders, Peters, Stabenow and 18 Fellow Senators in Demanding Stellantis Keep Its Promises to Autoworkers
US Senate News:
Source: United States Senator for Illinois Tammy Duckworth

October 24, 2024

[WASHINGTON, D.C.] – In a letter sent yesterday to the automotive giant responsible for Chrysler, Dodge, Jeep and more, U.S. Senator Tammy Duckworth (D-IL) and U.S. Senate Majority Whip Dick Durbin (D-IL) joined U.S. Senators Bernie Sanders (I-VT), Gary Peters (D-MI), Debbie Stabenow (D-MI) and 18 of their colleagues in urging Stellantis CEO Carlos Tavares to honor the collective bargaining agreement signed last year with the United Auto Workers (UAW) and the promises the company made to strengthen and expand good-paying union jobs in America. The Senators also reinforced the importance of re-opening the idled Stellantis plant in Belvidere.

“We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year’s collective bargaining agreement…” wrote the Senators. “We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.”

In the contract ratified last year, Stellantis committed to:
- Make nearly $19 billion in new investments and product commitments in the U.S.;
- Re-open the plant in Belvidere, Illinois that was “indefinitely idled” last year;
- Establish a parts and customer care Mega Hub in Belvidere;
- Continue to manufacture the Dodge Durango in Detroit through 2025; and
- Manufacture the next generation Dodge Durango in Detroit starting in 2026.
Instead, Stellantis has taken actions that undermine the commitments made to the UAW and leave “behind thousands of American workers who built the company into the auto giant it is today,” wrote the Senators. These actions may include moving the next generation Dodge Durango out of the U.S. and into “low-cost” countries like Mexico, as well as delaying planned investments to reopen and expand the Belvidere assembly plant.

This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world. The company has also benefited from billions of dollars in financial assistance from American taxpayers and the federal government. In July, the Department of Energy announced Stellantis would receive nearly $335 million in federal dollars to support Belvidere Assembly Plant’s conversion to electric vehicle production.

“Last year, while blue collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56 percent pay raise, boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies,” wrote the Senators. “We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW. This is especially true given the billions of dollars in financial assistance American taxpayers have spent to support your company and the enormous sacrifices autoworkers have been forced to make over many decades.”

Joining Duckworth, Durbin, Sanders, Peters and Stabenow on the letter are U.S. Senators Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Sherrod Brown (D-OH), Cory Booker (D-NJ), Laphonza Butler (D-CA), Bob Casey (D-PA), Kirsten Gillibrand (D-NY), Mazie Hirono (D-HI), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Chris Murphy (D-CT), Jack Reed (D-RI), Jacky Rosen (D-NV), Chuck Schumer (D-NY), Tina Smith (D-MN), Chris Van Hollen (D-MD) and Elizabeth Warren (D-MA).

The full letter is available here and below.

Dear Mr. Tavares:

We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year’s collective bargaining agreement.

In that contract, ratified by UAW members, Stellantis committed to “establish long-term stability and job security” for its workforce. The agreement includes nearly $19 billion in new investment and product commitments in the United States, including promises to:
- Re-open the plant in Belvidere, Illinois that was “indefinitely idled” last year;
- Establish a parts and customer care Mega Hub in Belvidere;
- Continue to manufacture the Dodge Durango in Detroit through 2025;
- and Manufacture the next generation Dodge Durango in Detroit starting in 2026.
We are deeply concerned that Stellantis is not keeping the promises it made to strengthen and expand good-paying union jobs in America.

Specifically, Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers. Moreover, Stellantis has stated publicly that it plans to source 80 percent of supply from “low-cost countries” like Mexico. By your own admission, Stellantis’s growth plan hinges on shifting “industrial production into cost competitive countries” like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW. We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.

This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. Last year, while blue collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56 percent pay raise boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies. During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world.

We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW. This is especially true given the billions of dollars in financial assistance American taxpayers have spent to support your company and the enormous sacrifices autoworkers have been forced to make over many decades.

For example, the Department of Energy announced in July that nearly $335 million in federal dollars would be going to supporting Belvidere Assembly Plant’s conversion to electric vehicle production. With hundreds of millions of dollars of federal support going towards ensuring strong union jobs stay in the U.S., Stellantis must honor the promises it made to UAW workers and the Belvidere community.

We urge you to deliver on the commitments you made to the UAW in your 2023 national agreement without further delay.

-30-
MIL OSI USA News –
January 25, 2025
MIL-OSI Security: Cherokee County Felon And Five Straw Purchasers Sentenced For Federal Firearms Crimes

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eduardo Garcia, age 55, Eric Lopez, age 46, Eric Jesus Lopez, age 28, Savanna Jade Lopez, age 28, Francisco Hernandez, age 25, and Christian Lopez, age 27, each of Tahlequah, Oklahoma, were sentenced on federal firearms charges.

The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Eduardo Garcia, aka Eduardo Garcia Olvera, aka Eduardo Olvera Garcia, aka “Lalo”, was sentenced to 18 months in prison for one count of Felon in Possession of a Firearm. On May 18, 2023, Garcia pleaded guilty to the charge.

Eric Lopez, Eric Jesus Lopez, Savanna Jade Lopez, and Christian Lopez each pleaded guilty to one count of False Statements During the Purchase of a Firearm and were sentenced to five years’ probation.

Francisco Hernandez pleaded guilty to one count of False Statements During the Purchase of a Firearm and was sentenced to four years’ probation.

According to investigators, on November 4, 2022, ATF agents discovered Eduardo “Lalo” Garcia in possession of one 20 GA Browning Light Twenty shotgun, one 20 GA Mossberg model 185K shotgun, one 9mm Ruger PC Carbine, and one completely built AR-15 style upper receiver in 5.56 NATO caliber, together with 19 empty gun boxes for manufactured firearms and over 2,900 rounds of ammunition, all shipped or transported in interstate or foreign commerce. At the time Garcia possessed the firearms, he had been convicted of a crime punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.

An investigation by ATF agents revealed that five of those gun boxes bore serial numbers that matched firearms purchased for Garcia.

The investigation also revealed that between October of 2021 and October 2022, Eric Lopez, Eric Jesus Lopez, Savanna Jade Lopez, Christian Lopez, and Francisco Hernandez purchased a total of 107 firearms from four licensed firearms retailers in the Tahlequah and Muskogee areas. For each purchase, the defendants falsely stated on a Department of Justice ATF Form 4473 that they were the actual buyers of the firearms. In reality, the defendants were purchasing the firearms for Garcia, who was unable to complete purchases due to his felony conviction. Law enforcement in Mexico recovered one of those firearms, a Glock 9mm pistol, five months after a family member purchased it for Garcia.

“Enforcing federal firearm regulations is a crucial part of protecting the Second Amendment rights of law-abiding citizens and ensuring public safety,” said United States Attorney Christopher J. Wilson. “Felons like Mr. Garcia and others who would otherwise not be able to legitimately purchase or possess firearms often look for buyers with no previous criminal history to act as straw purchasers on their behalf. Garcia and his co-defendants attempted to thwart the safeguards and are being held accountable for their acts.”

“When family and friends choose to commit crime together, they become felons together. Federal firearms laws are designed to keep weapons from those that shouldn’t have them, and today’s sentencing is a notice to all that ATF and its partners will relentlessly pursue those who choose to ignore them. Whether you are a felon in possession or supplying prohibited persons with firearms, we will find you and prosecute,” said ATF Special Agent in Charge Jeffrey C. Boshek II.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The Honorable Raúl M. Arias-Marxuach, U.S. District Judge in the United States District Court for the District of Puerto Rico, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Garcia will remain out of custody pending assignment to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant United States Attorney Erin Cornell represented the United States.

MIL Security OSI –

January 25, 2025
MIL-OSI USA: 2022 and 2023 National Medal of Arts and National Humanities Medal Citations

US Senate News:

Source: The White House
On Monday, October 21st, President Biden held an East Room ceremony at the White House to present the 2022 and 2023 National Medals of Arts and the 2022 and 2023 National Humanities Medals.
The National Medal of Arts is the highest award given to artists, arts patrons, and groups by the United States Government and honors exemplary individuals and organizations that have advanced the arts in America and offered inspiration to others through their distinguished achievement, support, or patronage. The National Humanities Medal honors individuals or groups whose work has deepened the nation’s understanding of the humanities and broadened our citizens’ engagement with history, literature, languages, philosophy, and other humanities subjects.
Below are the citations presented to the 2022 and 2023 medal recipients:
National Medal of Arts – Class of 2022
Ruth Asawa (Posthumously)
For groundbreaking modernism and championing art for everyone. From a family of Japanese immigrants separated in incarceration camps, Ruth Asawa emerged to become a renowned educator and artist, bringing her distinctive wire sculptures to the Nation’s museums, homes, and classrooms, and leaving a legacy as powerful and profound as her portfolio.
Randy A. Batista
For focusing the lens on human nature. Born in Tampa, Florida, to Italian and Cuban immigrants and raised on both sides of the Straits of Florida, Randy Batista is known as the people’s photographer. With the camera as his sixth sense of deep empathy, he captures people’s pain and challenges us to respect their inherent dignity.
Clyde Butcher
For focusing the lens on Mother Nature. From humble beginnings as a self-taught photographer, Clyde Butcher is considered America’s most acclaimed landscape photographer today. From the Rocky Mountains to the Everglades, and countless pristine places in between, his images inspire and challenge us to respect and defend our natural wonders.
Country Music Hall of Fame and Museum
For cataloging one of the Nation’s great homegrown art forms. As the world’s largest repository of country music history, in the country music capital of Nashville, Tennessee, the Country Music Hall of Fame and Museum preserves history, honors giants of the genre, and inspires future generations to write their own songs about the American story.
Melissa “Missy” Elliott
For shattering glass ceilings with timeless beats. From a child singing in the church choir to becoming a best-selling female rapper and pioneering hip-hop icon, Missy Elliott’s genre-defying music and rhymes have elevated an industry into a global powerhouse and inspired generations to push the sound and movement of America.
Leonardo “Flaco” Jiménez
For harnessing heritage to enrich American music. The son of a musical family in Texas, Flaco Jiménez mastered the accordion and Spanglish lyrics as a trailblazer of Conjunto. Blending Norteño, Tex Mex, and Tejano music with the Blues, Rock n’ Roll, and Pop Music, he sings the soul of America’s Southwest.
Eva Longoria
For recognizing the strength of our diversity and the full talents of our Nation. Actor, producer, director, and proud Mexican American, Eva Longoria has broken barriers on screen and uses her power to lift up Latino voices all across American life — challenging stereotypes and instilling Latino pride in our Nation.
Idina Menzel
For magical songs that lift our spirits and stir our souls. From Broadway stages to movie screens, Idina Menzel’s powerful voice has sold out shows, topped Billboard charts, and above all, empowered millions of Americans of all ages and backgrounds to be strong, use their voice, and lead with their hearts.
Herbert I. Ohta
For redefining ukulele music as a deeply moving American sound. The Hawaiian son of Japanese immigrants, Herb Ohta learned his first chords as a child and played through his service as a United States Marine. A musical innovator and mentor, he has bridged cultures and genres, spreading the peace and hope of aloha spirit.
Bruce Sagan
For seeking the truth as a true public citizen. A Chicago, Illinois, journalism legend and lifelong supporter of the performing arts, Bruce Sagan’s seven decades of leadership and stewardship in building, protecting, and uplifting local newspapers, voices, artists, and dancers have inspired his beloved city and enriched the tapestry of American life and culture.
Carrie Mae Weems
For capturing the resilience and dignity of Black America and our deeper humanity.
Over three decades at the forefront of American expression, Carrie Mae Weems has honed her craft as a renowned artist whose photography, film, video, and art confront hard truths about power and prejudice, while celebrating the indomitable human spirit.
National Medal of Arts – Class of 2023
Mark Bradford
For revealing the full history of the Nation through groundbreaking art. Inspired by the diverse cultures of Southern California, Mark Bradford’s paper-on-canvas storytelling reveals the interwoven hopes, sorrows, and joys of communities of color, with each layer challenging convention, shining light, and reminding us all of the full potential of America.
Ken Burns
For documenting the hope and history of our Nation. From his home in rural New Hampshire and deep from his imagination, Ken Burns´ pioneering documentaries of diverse people, places, and histories have shaped our understanding of the American experience, and defined him as one of the most respected filmmakers of our time.
Bruce Cohen
For championing the arts to express our highest ideals of freedom, justice, and equality.
An entertainment industry icon ahead of his time, Bruce Cohen has produced our biggest moments on screen and stage by lifting up people and stories that need to be seen and heard, making real the promise of America for all Americans.
Alex Katz
For conjuring an enduring portrait of America. Born in Brooklyn, New York, to Russian immigrants, Alex Katz is among the most prolific and distinctive artists in our history. With a ferocious work ethic and visionary style, he continues to condense the complexities of everyday life into iconic faces and landscapes that reveal the essence of who we are as Americans.
Jo Carole Lauder
For devoted support of the arts, culture, and civic causes in America. A renowned philanthropist leading an array of causes — from supporting the White House Historical Association to refurbishing and preserving United States embassies abroad to inspiring participation in Jewish life worldwide —Jo Carole Lauder channels her creative talents to beautify the spirit of our Nation.
Spike Lee
For revolutionizing American cinema and culture. One of the most thought-provoking filmmakers of our time, Spike Lee honors his Brooklyn, New York, roots by daring to capture the depth of the Black experience and lifting up Black culture on the world stage through vibrant films and courtside pride that shapes our Nation’s collective conscience.
Queen Latifah
For leading the Nation as a champion of women’s empowerment. A natural storyteller and one of the first ladies of hip-hop, Queen Latifah breaks the mold for women in entertainment — rapping about overcoming loss and abuse of power to exuding cool and confidence as a critically-acclaimed actor and activist, showing how infinite love is the only hope for unity.
Selena Quintanilla (Posthumously)
For cementing Tejano music into the heart of the Nation. The youngest of the Quintanilla music family, Selena brought Latin music to the masses as the Queen of Tejano music and one of the most celebrated entertainers in our history. Her young life was tragically cut short, but her voice and spirit endure for the ages.
Steven Spielberg
For filmmaking that entertains, educates, and inspires. Growing up moved by the power of films, Steven Spielberg is considered one of the greatest filmmakers ever, using his gift of storytelling to stretch our imaginations, confront the horrors of history, and inspire us to be the characters of our Nation and the world’s future — full of courage, honor, and dignity.
National Humanities Medal – Class of 2022
Wallis Annenberg
For transforming philanthropy in our Nation. The daughter of a groundbreaking media family in Los Angeles, California, Wallis Annenberg is a visionary giver and innovator who has donated to thousands of organizations in the arts, education, environment, medical research, social justice, and more — transforming countless lives by advancing, healing, and inspiring communities across America.
Appalshop
For amplifying the voices of Appalachia. Located in Kentucky’s Appalachian Mountains for 50 years, Appalshop is home to the world’s largest collection of creative work on Appalachia — a hub for new generations of artists, filmmakers, musicians, and playwrights to share their stories of pride and promise of their American roots.
Joy Harjo
For shining the light on the sacred traditions of Native American storytelling. A member of the Muscogee Nation in Oklahoma, and the first Native American Poet Laureate of the United States, Joy Harjo’s distinguished poetry and award-winning music about art, justice, and healing honors ancestral generations and empowers those that follow.
Robin Harris
For educating our youngest students to be dreamers and doers of our Nation. As an elementary school teacher and trailblazing principal in Massachusetts, Robin Harris is redefining K-12 education to empower students, embrace parents, and extend learning and leadership beyond the walls of the classroom and into the free spirit of the mind.
Juan Felipe Herrera
For poeticism that captures America’s imagination. The son of California farm workers, Juan Felipe Herrera takes readers across countries and cultures, genres, and disciplines as a towering figure in Chicano poetry and the first Latino Poet Laureate of the United States, using the power of his pen to give life to our identities and common bonds.
Robert Martin
For dedicating his career to the academic achievement of Native American students. A member of the Cherokee Nation of Oklahoma, Dr. Robert Martin has led Tribal colleges and launched Indian Studies programs at institutions of higher learning across the country to strengthen Tribal self-determination and empower future Native American leaders.
Jon Meacham
For drawing wisdom from history to shape the future of America. A proud son of Tennessee and celebrated historian and biographer, Jon Meacham chronicles the journey of America with an unmatched mix of historical context, parables from Scripture, and unyielding faith in the goodness of the American people that makes us a truly great Nation.
Ruth J. Simmons
For pioneering equity in our Nation’s higher education system. One of twelve children born into a sharecropper family in Texas, Dr. Ruth Simmons blazed trails in academia as a distinguished professor of literature and the first African American woman president of an Ivy League institution—showing how an education makes one free and fearless.
Pauline Yu
For a lifetime of advocacy for the humanities in America. The daughter of Chinese immigrants raised in Rochester, New York, Dr. Pauline Yu is a respected scholar of Chinese poetry and renowned advocate for the humanities, who has deepened cross-cultural understanding through language and literature, and advanced core democratic values of truth, reason, and free inquiry.
National Humanities Medal – Class of 2023
Anthony Bourdain (Posthumously)
For making food a gateway to understanding the world and one another. A beloved chef, writer, and social commentator, Anthony Bourdain is remembered across the globe for his empathy, openness, and humor—approaching every table with equal reverence for the people it convened, and embodying the best of American curiosity and exploration.
LeVar Burton
For imagining a more optimistic and enlightened America for everyone. A celebrated actor, advocate, and storyteller, LeVar Burton confronted the trauma of history, took us to the depths of space, and transformed literacy in America by sharing the gift of reading with generations of children, unlocking our imaginations and spirit of discovery.
Roz Chast
For healing a Nation with humor and observation. One of the most prolific cartoonists of our time, Roz Chast has wielded pen and watercolor for over 45 years to make ordinary things extraordinary, blaze a trail for women in her field, and define an era of American wit and wisdom.
Nicolás Kanellos
For amplifying Hispanic voices in America’s past, present, and future. Raised between Puerto Rico and Jersey City, New Jersey, Nicolás Kanellos channeled a childhood love for Spanish literature into a distinguished literary career in Houston, Texas, leading the Nation’s oldest and largest Hispanic publishing house and elevating the diversity of American literature.
Robin Wall Kimmerer
For sharing Indigenous wisdom in America’s natural sciences. A citizen of Potawatomi Nation and a renowned scientist and writer, Robin Wall Kimmerer has transformed our understanding of environmental science by incorporating Indigenous knowledge into college curriculum and critical efforts to heal a climate in crisis, offering new hope for generations to come.
Mellon Foundation
For charting an unparalleled course for the arts and humanities in America. For over 50 years, the Mellon Foundation has been the trusted benefactor for thousands of people and organizations harnessing the power of ideas and imagination to advance social justice and freedom, and defend the arts as essential to American democracy.
Dawn Porter
For documenting the good, the bad, and the truth of our Nation. Beginning her career as a lawyer, Dawn Porter pursued filmmaking to showcase the vibrancy of Black culture and history. By chronicling the lives of America’s everyday heroes and legendary leaders, her award-winning documentaries remind us that the work of perfecting our Union is essential and never-ending.
Aaron Sorkin
For trademark storytelling in America. Drawn to theatre at a young age, Aaron Sorkin found his calling as a groundbreaking writer and creator, scripting and show-running iconic films and television shows that inspired an entire generation to believe in the possibilities of our Nation and walk, talk, and answer “what’s next?”
Darren Walker
For showing us hope is the oxygen of democracy. With boundless passion and enduring purpose, Darren Walker harnesses empathy from his modest upbringing in the South to advance the most ambitious philanthropic goals of our Nation, as a visionary leader whose commitment to improving the human condition has fortified justice and good governance in America and around the world.
Rosita Worl
For embodying the resilient community spirit of Native American culture. As a child in Alaska, Dr. Rosita Worl survived the brutalities of Federal Indian boarding school that took her from her family and Nation. As an anthropologist and advocate, she has since spent her life pushing to right wrongs and build a new era of understanding and healing.
Additional information
National Endowment for the Arts
The National Endowment for the Arts (NEA), established by Congress in 1965, is an independent Federal agency that is the largest public funder of the arts and arts education in communities nationwide and a catalyst of public and private support for the arts. The NEA’s mission is based on an abiding conviction that the arts play an integral role in our national life and public discourse. The arts strengthen and promote the well-being and resilience of people and communities. By advancing equitable opportunities for arts participation and practice, the NEA fosters and sustains an environment in which the arts belong to and benefit everyone in the United States.
National Endowment for the Humanities
Created in 1965 as an independent Federal agency, the National Endowment for the Humanities (NEH) supports learning in history, literature, philosophy, and other humanities subjects by funding selected, peer-reviewed proposals from around the Nation that support research in the humanities, foster education, nurture humanities infrastructure, and expand the reach of the humanities. Since 1965, NEH has awarded over six billion dollars to cultural institutions, individual scholars, and communities throughout the United States. The Endowment serves and strengthens the country by bringing high-quality historical and cultural experiences to large and diverse audiences in all 50 States, the District of Columbia, and five territories; providing opportunities for lifelong learning, expanding access to cultural and educational resources, and preserving the human stories that connect all Americans.
The President’s Committee on the Arts and the Humanities
The President’s Committee on the Arts and the Humanities (PCAH) was founded in 1982 by Executive Order to advise the President on cultural policy. The First Lady has historically served as Honorary Chair of the Committee, which is composed of members appointed by the President. Private committee members include prominent artists, scholars, and philanthropists who have demonstrated a serious commitment to the arts and humanities. Public members represent the heads of key Federal agencies with a role in culture, including the Chairs of the National Endowments for the Arts and the Humanities, the Librarian of Congress, the Secretary of the Smithsonian, and the Director of the Institute of Museum and Library Services among others. The PCAH facilitates public-private partnerships, promotes interagency cooperation, and proposes programs that enhance arts, humanities, museums, and library services across the country. Over the past 40 years, PCAH has catalyzed Federal programs and played a vital role in the advancement of arts and humanities education, cultural diplomacy, and the creative economy.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Murphy, Blumenthal, Colleagues Demand Stellantis Keep Its Promises To Autoworkers
US Senate News:
Source: United States Senator for Connecticut – Chris Murphy

October 24, 2024
WASHINGTON—U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Committee on Health, Education, Labor, and Pensions (HELP), and U.S. Senator Richard Blumenthal (D-Conn.) joined U.S. Senator Bernie Sanders and 20 of their Senate colleagues in sending a letter to Stellantis—the giant automotive manufacturer responsible for common car brands like Chrysler, Dodge, and Jeep. In their letter, the senators called on Stellantis CEO Carlos Tavares to honor the collective bargaining agreement signed last year with the United Auto Workers (UAW) and the promises the company made to strengthen and expand good-paying union jobs in America.

“We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year’s collective bargaining agreement…” the senators wrote. “We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.”

In the contract ratified last year, Stellantis committed to make nearly $19 billion in new investments and product commitments in the U.S., including:

Re-opening the plant in Belvidere, Illinois that was “indefinitely idled” last year;

Establishing a parts and customer care Mega Hub in Belvidere;

Continuing to manufacture the Dodge Durango in Detroit through 2025; and

Manufacturing the next generation Dodge Durango in Detroit starting in 2026.

Instead, Stellantis has taken actions that undermine the commitments made to the UAW and leave “behind thousands of American workers who built the company into the auto giant it is today,” the senators wrote. These actions may include moving the next generation Dodge Durango out of the U.S. and into “low-cost” countries like Mexico, as well as delaying planned investments to reopen and expand the Belvidere assembly plant.

This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world. The company has also benefited from billions of dollars in financial assistance from American taxpayers and the federal government. In July, the Department of Energy announced Stellantis would receive nearly $335 million in federal dollars to support Belvidere Assembly Plant’s conversion to electric vehicle production.

“Last year, while blue collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56 percent pay raise, boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies,” the senators continued. “We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW. This is especially true given the billions of dollars in financial assistance American taxpayers have spent to support your company and the enormous sacrifices autoworkers have been forced to make over many decades.”

U.S. Senators Gary Peters (D-Mich.), Richard Durbin (D-Ill.), Debbie Stabenow (D-Mich.), Tammy Duckworth (D-Ill.), Tammy Baldwin (D-Wis.), Sherrod Brown (D-Ohio), Cory Booker (D-N.J.), Laphonza Butler (D-Calif.), Bob Casey (D-Pa.), Kirsten Gillibrand (D-N.Y.), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Chuck Schumer (D-N.Y.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), and Elizabeth Warren (D-Mass.) also signed the letter.

The full letter is available HERE and below.

Dear Mr. Tavares:

We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year’s collective bargaining agreement.

In that contract, ratified by UAW members, Stellantis committed to “establish long-term stability and job security” for its workforce. The agreement includes nearly $19 billion in new investment and product commitments in the United States, including promises to:

Re-open the plant in Belvidere, Illinois that was “indefinitely idled” last year;

Establish a parts and customer care Mega Hub in Belvidere;

Continue to manufacture the Dodge Durango in Detroit through 2025; and

Manufacture the next generation Dodge Durango in Detroit starting in 2026.

We are deeply concerned that Stellantis is not keeping the promises it made to strengthen and expand good-paying union jobs in America.

Specifically, Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers. Moreover, Stellantis has stated publicly that it plans to source 80 percent of supply from “low-cost countries” like Mexico. By your own admission, Stellantis’s growth plan hinges on shifting “industrial production into cost competitive countries” like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW. We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.

This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. Last year, while blue collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56 percent pay raise boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies. During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world.

We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW. This is especially true given the billions of dollars in financial assistance American taxpayers have spent to support your company and the enormous sacrifices autoworkers have been forced to make over many decades.

For example, the Department of Energy announced in July that nearly $335 million in federal dollars would be going to supporting Belvidere Assembly Plant’s conversion to electric vehicle production. With hundreds of millions of dollars of federal support going towards ensuring strong union jobs stay in the U.S., Stellantis must honor the promises it made to UAW workers and the Belvidere community.

We urge you to deliver on the commitments you made to the UAW in your 2023 national agreement without further delay.

Sincerely,
MIL OSI USA News –
January 25, 2025
MIL-OSI China: Shanghai opens annual Lujiazui Coffee Festival

Source: China State Council Information Office 3

Shanghai continues to lead China’s coffee market with 9,553 coffee shops, officials announced during a news conference on Wednesday at the opening of the Lujiazui Coffee Festival in Pudong New Area.

Jin Wencheng, director of the Ministry of Agriculture and Rural Affairs’ rural economy research center, released the Global Coffee Industry Development Trends Insight Report and related index at the event, highlighting that China’s annual coffee consumption reached 280,000 metric tons last year, with customers patronizing approximately 157,000 coffee shops nationwide.

Jointly launched by the China Media Group Shanghai Bureau — the financial program center of CMG — and the research center, the report further pointed out that the value of the coffee industry in China reached 265.4 billion yuan ($37.3 billion) in 2023, an increase of over 30 percent year-on-year. The number of coffee consumers in the country is close to 400 million.

“The Chinese coffee market has seen significant expansion, emerging as a standout in the global coffee industry,” Jin said, adding that the report and index are constructed based on three key dimensions: industry scale, development quality and industry resilience.

China’s coffee production increased from 114,000 tons in 2020 to 146,000 tons last year, the report noted. Yunnan province accounts for 98 percent of the national output, making it the primary coffee-producing region in China.

“Refinement and branding are leading the high-quality development of the domestic coffee industry in China,” said Jin, noting that the proportion of premium domestic coffee products has significantly increased, reaching 22.7 percent this year.

“Domestic coffee brands are rapidly emerging, and the fusion of coffee culture with tourism has become a new business model,” Jin added.

On a global scale, coffee production has shown a growth recovery, according to the report.

Last year, global coffee consumption reached 10.62 million tons, marking a 2.2 percent increase from the previous year, with a total daily consumption of 3 billion cups of coffee.

Apart from the emerging market in China, countries and regions such as Brazil, the Philippines and South Korea are also experiencing rapid growth in coffee consumption.

The bustling crowd of coffee enthusiasts at the Lujiazui Coffee Festival — the news conference venue — attests to the fervor of the coffee market.

Shanghai, which has more coffee shops than any city in China, launched the ninth edition of the coffee festival on Wednesday, which will run until Oct 27.

Taking place at Shanghai’s Lujiazui Central Greenland, the festival brings together over 260 selected brands, more than 100 boutique coffee shops and over 20 influencers from the industry hailing from over 70 cities worldwide. It serves as a platform for the exchange of creative ideas and the exhibition of the latest coffee-related products.

Manhattan Coffee Roasters from Rotterdam, Netherlands; Ghostbird Coffee Roastery from Kuala Lumpur, Malaysia; and Proud Mary Coffee Roasters from Melbourne, Australia, are among the 12 international specialty coffee brands that are making their domestic debut at the festival.

Since its inception in 2016, the festival has become a benchmark cultural experience in the coffee industry in China, drawing the cumulative participation of over 850,000 people.

“As the brand influence of the Lujiazui Coffee Festival continues to grow, it will not only bring more global coffee flavors to Pudong, but also explore new pathways for Chinese domestic coffee to enter the international market,” said Chen Bai, director of the festival.

MIL OSI China News –

January 25, 2025
MIL-OSI China: Xi urges ‘BRICS Plus’ to pursue common security and development, harmony among civilizations

Source: China State Council Information Office

Chinese President Xi Jinping delivers an important speech titled “Combining the Great Strength of the Global South To Build Together a Community with a Shared Future for Mankind” at the “BRICS Plus” leaders’ dialogue in Kazan, Russia, Oct. 24, 2024. [Photo/Xinhua]

Chinese President Xi Jinping on Thursday called on “BRICS Plus” countries to strive for common security, common development and harmony among civilizations.

Xi made the remarks while addressing the “BRICS Plus” leaders’ dialogue.

Noting that the collective rise of the Global South is a distinctive feature of the great transformation across the world, Xi said that Global South countries marching together toward modernization is monumental in world history and unprecedented in human civilization.

Meanwhile, peace and development still faces severe challenges and the road to prosperity for the Global South will not be straight, he pointed out, urging “BRICS Plus” countries to use collective wisdom and strength and stand up to their responsibility for building a community with a shared future for mankind.

Xi said that “BRICS Plus” countries should uphold peace and strive for common security, come forward together to form a stabilizing force for peace, strengthen global security governance, and explore solutions to address both symptoms and roots of hotspot issues.

He said that many parties have warmly responded to the Global Security Initiative he proposed. “Under the Initiative, we have made prominent progress in maintaining regional stability and in many other areas,” he said, adding that China and Brazil jointly issued the six-point consensus and launched the group of Friends for Peace on the Ukraine crisis together with other Global South countries.

He also called on “BRICS Plus” countries to promote early deescalation to pave the way for political settlement.

Last July, Palestinian factions reconciled with each other in Beijing, marking a key step toward peace in the Middle East, he noted. “We should continue to promote comprehensive ceasefire in the Gaza Strip and revive the two-State solution. We must stop the flames of war from spreading in Lebanon and end the miserable sufferings in Palestine and Lebanon,” Xi stressed.

Noting that the Global South emerges for development and prospers through development, Xi said that “BRICS Plus” countries should reinvigorate development and strive for common prosperity, be the main driving force for common development, play an active and leading role in the global economic governance reform, and make development the core of international economic and trade agenda.

He said that the Global Development Initiative, since its introduction three years ago, has helped make available nearly 20 billion U.S. dollars of development fund and launch more than 1,100 projects. And recently the Global Alliance on Artificial Intelligence for Industry and Manufacturing Center of Excellence has been established in Shanghai.

China will build a World Smart Customs Community Portal and a BRICS Customs Center of Excellence, he noted, adding that China welcomes active participation by all countries.

Stressing that diversity of civilization is the innate quality of the world, Xi called on “BRICS Plus” countries to promote together development of all civilizations and strive for harmony among them, be advocates for exchanges among civilizations, enhance communication and dialogue, and support each other in taking the path to modernization suited to their respective national conditions.

He noted that the Global Civilization Initiative he proposed is exactly for the purpose of building a garden of world civilizations “in which we can share and admire the beauty of each civilization,” he said, adding that China will coordinate with others to form a Global South Think Tanks Alliance to promote people-to-people exchanges and experience-sharing in governance.

Xi stressed that the Third Plenary Session of the 20th Central Committee of the Communist Party of China made systemic plans for further deepening reform comprehensively to advance Chinese modernization, which will provide more opportunities for the world.

“Last month, we held in Beijing a successful summit of the Forum on China-Africa Cooperation and announced ten partnership actions for China and Africa to jointly advance modernization. This will instill new energy for the Global South on its way toward modernization,” he said.

Xi also said that no matter how the international landscape evolves, “we in China will always keep the Global South in our heart, and maintain our roots in the Global South.”

China supports more Global South countries in joining the cause of BRICS as full members, partner countries or in the “BRICS Plus” format “so that we can combine the great strength of the Global South to build together a community with a shared future for mankind,” he said.

MIL OSI China News –

January 25, 2025
MIL-OSI China: Fuchun River sparks impromptu poetry on shared human emotions

Source: China State Council Information Office 3

For centuries, Chinese poets have captured the stunning beauty of the Fuchun River in Hangzhou, Zhejiang province, in simple yet poetic words. This July, poets from the BRICS countries stepped into the same river, drifting along the same route, and engaged in an impromptu poetry session inspired by the Fuchun River.

The poems, they created on the river during their six-day trip to China, and on a series of cultural activities they took part in have been recorded in the book Messengers from the Vernal Wood, which was released on Oct 18 at the Frankfurt Book Fair, Germany.

The book compiled by the Poetry Periodical also features poems written by 72 poets who took part in the First International Youth Poetry Festival: Special Session for BRICS Countries in July. It includes works from 49 poets from nine countries — Brazil, Russia, India, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Iran and Ethiopia, with each poem featured in both the poet’s native language and Chinese. It also includes poems from 23 Chinese poets, with each poem in Chinese and its English translation.

Li Shaojun, editor of the book, said that poetry is a universal language of humanity, expressing shared human emotions. “The BRICS countries all have rich history, and through the universal language of poetry, we can greatly enhance communication and exchange, connecting more poets from the BRICS nations,” said Li.

Speaking about his journey to the poetry festival held in China in July, Brazilian poet Thiago Moraes said he was still excited about his first trip to a country that is totally different from his own. “It took me two days to arrive in China. Very hard. But I was so happy to be in China to know new people, new cultures, new perspectives and new ways of living,” said Moraes, who teaches Brazilian literature at a university in Rio de Janeiro.

In mid-July, aboard a cruise on the picturesque Fuchun River in Hangzhou, Moraes joined poets from China, Ethiopia and Iran for an impromptu poetry session. Each participant crafted a short, simple poem inspired by the beauty of the Fuchun River. This kind of poetry gathering was popular among ancient Chinese scholars.

The Brazilian poet was deeply impressed by the enthusiasm of the group and the crystal clear green waters of the Fuchun River. He learned about the ancient Chinese poets Bai Juyi and Su Shi, both of whom created many well-known verses. To his surprise, Moraes found some similarities with the Chinese counterparts: they all share a love of nature and a fondness for expressing their inner worlds through landscapes.

He said poetry makes people stay humble, open and diversified. “We poets should gather our efforts to make a better world instead of fighting all the time,” he added.

Poet Shaikha Almteiri from the United Arab Emirates said she never imagined that one day she would set foot in China. She was excited about everything she encountered, including the people, the food, the museums, the ancient villages, the Great Wall and the Forbidden City.

She was often asked with questions like what are poets in the UAE writing about? What commonalities exist between UAE poetry and poetry from other countries?

“At the poetry festival in China, we find that no matter which country we come from, we are all creating with the same voice, the same heart and the same human spirit. We are all writing about the world of humanity, using the language of humanity. For example, we depict beautiful childhoods and the small flowers adorning braids,” she said.

Almteiri enjoyed the poetry festival and said that such kind of gatherings and exchanges among poets might be the very catalysts for their innovation. She also expected for a future trip to China again.

For Ethiopian poet Seife Temam, the poetry trip to China made him fall in love with the country’s ancient culture, especially the Tang Dynasty (618-907) poet Li Bai. This was also his first visit to China. Previously, he admired Chinese philosopher Laozi and considered him a great Chinese poet as well.

After visiting several museums, he became enamored with the clothing style and poetry of the Tang dynasty, which he found to be romantic, passionate and unrestrained.

While cruising on Fuchun River in July, he wrote a romantic verse: “I am a child of the Nile, yet I am captivated by the Fuchun River.”

Li, the book editor, said that it was the first time for China to hold such kind of international poetry festival of BRICS countries. He hoped that through the book’s publication, the influence of poetry events will grow among poets from BRICS countries, enabling more poets to communicate and exchange ideas with each other.

MIL OSI China News –

January 25, 2025

MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

“Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	837,321	$	786,301	$	837,321	$	786,301
Net income	$	64,827	$	57,144	$	75,179	$	70,775
Diluted earnings per share	$	1.44	$	1.26	$	1.67	$	1.56
EBITDA (non-GAAP measure)	$	138,134	$	129,350	$	139,278	$	132,985
Weighted-average diluted shares		44,970		45,374		44,970		45,374

	Nine Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	2,504,703	$	2,299,662	$	2,504,703	$	2,299,662
Net income	$	175,268	$	149,712	$	207,266	$	184,028
Diluted earnings per share	$	3.88	$	3.27	$	4.58	$	4.02
EBITDA (non-GAAP measure)	$	388,372	$	348,291	$	392,752	$	350,028
Weighted-average diluted shares		45,214		45,747		45,214		45,747

Consolidated Operating Highlights

Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million.
For the trailing twelve month period ended September 30, 2024:
- Revenues totaled a record $3.4 billion
- Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
- Adjusted EBITDA was $554 million
- Operating cash flows were $441 million and adjusted free cash flows were $217 million

Store Base and Platform Growth

Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
- One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
- There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
- As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

Cash Flow and Liquidity

Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
- A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
- 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
- Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

Shareholder Returns

The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

2024 Outlook

The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

U.S. Pawn

Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

Latin America Pawn

Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

Interest Expense, Tax Rates and Currency:

Interest expense for the fourth quarter is expected to be consistent with the prior year.
The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

“The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

“In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

“Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

“AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

“All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue:
Retail merchandise sales	$	363,141		$	335,081		$	1,093,425		$	983,860
Pawn loan fees		186,561			174,560			547,142			480,298
Leased merchandise income		188,560			189,382			588,801			562,625
Interest and fees on finance receivables		61,198			61,413			175,384			174,247
Wholesale scrap jewelry sales		37,861			25,865			99,951			98,632
Total revenue		837,321			786,301			2,504,703			2,299,662

Cost of revenue:
Cost of retail merchandise sold		218,178			199,719			659,854			590,991
Depreciation of leased merchandise		104,928			103,698			335,369			307,824
Provision for lease losses		39,171			39,736			129,834			141,674
Provision for loan losses		40,557			33,096			102,091			90,571
Cost of wholesale scrap jewelry sold		29,880			21,405			81,711			79,012
Total cost of revenue		432,714			397,654			1,308,859			1,210,072

Net revenue		404,607			388,647			1,195,844			1,089,590

Expenses and other income:
Operating expenses		224,926			211,524			674,431			615,366
Administrative expenses		40,930			45,056			129,563			124,428
Depreciation and amortization		25,933			27,365			78,507			81,526
Interest expense		27,424			24,689			78,029			66,657
Interest income		(403	)		(328	)		(1,407	)		(1,253	)
Loss (gain) on foreign exchange		882			(286	)		2,133			(1,905	)
Merger and acquisition expenses		225			3,387			2,186			3,670
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)
Total expenses and other income		319,427			311,023			962,601			888,229

Income before income taxes		85,180			77,624			233,243			201,361

Provision for income taxes		20,353			20,480			57,975			51,649

Net income	$	64,827		$	57,144		$	175,268		$	149,712

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	September 30,						December 31,
	2024			2023			2023
ASSETS
Cash and cash equivalents	$	106,320		$	86,547		$	127,018
Accounts receivable, net		74,378			72,336			71,922
Pawn loans		517,877			483,785			471,846
Finance receivables, net		123,751			113,307			113,901
Inventories		334,394			314,382			312,089
Leased merchandise, net		137,769			143,169			171,191
Prepaid expenses and other current assets		34,861			21,114			38,634
Total current assets		1,329,350			1,234,640			1,306,601

Property and equipment, net		689,075			604,673			632,724
Operating lease right of use asset		329,228			312,097			328,458
Goodwill		1,788,795			1,713,354			1,727,652
Intangible assets, net		241,389			291,690			277,724
Other assets		10,339			10,057			10,242
Deferred tax assets, net		4,671			8,052			6,514
Total assets	$	4,392,847		$	4,174,563		$	4,289,915

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	133,792		$	146,873		$	163,050
Customer deposits and prepayments		78,083			71,752			70,580
Lease liability, current		96,598			98,745			101,962
Total current liabilities		308,473			317,370			335,592

Revolving unsecured credit facilities		200,000			560,229			568,000
Senior unsecured notes		1,530,604			1,037,151			1,037,647
Deferred tax liabilities, net		127,425			139,713			136,773
Lease liability, non-current		227,151			202,516			215,485
Total liabilities		2,393,653			2,256,979			2,293,497

Stockholders’ equity:
Common stock		575			573			573
Additional paid-in capital		1,764,351			1,737,497			1,741,046
Retained earnings		1,344,542			1,164,228			1,218,029
Accumulated other comprehensive loss		(114,807	)		(64,521	)		(43,037	)
Common stock held in treasury, at cost		(995,467	)		(920,193	)		(920,193	)
Total stockholders’ equity		1,999,194			1,917,584			1,996,418
Total liabilities and stockholders’ equity	$	4,392,847		$	4,174,563		$	4,289,915

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS
(UNAUDITED)

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	235,037		$	203,769			15	%
Pawn loan fees		128,393			114,022			13	%
Wholesale scrap jewelry sales		26,685			17,140			56	%
Total revenue		390,115			334,931			16	%

Cost of revenue:
Cost of retail merchandise sold		134,966			115,670			17	%
Cost of wholesale scrap jewelry sold		21,393			14,297			50	%
Total cost of revenue		156,359			129,967			20	%

Net revenue		233,756			204,964			14	%

Segment expenses:
Operating expenses		128,104			113,976			12	%
Depreciation and amortization		7,365			6,586			12	%
Total segment expenses		135,469			120,562			12	%

Segment pre-tax operating income	$	98,287		$	84,402			16	%

Operating metrics:
Retail merchandise sales margin	43		%	43		%
Net revenue margin	60		%	61		%
Segment pre-tax operating margin	25		%	25		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	702,120		$	610,493			15	%
Pawn loan fees		371,699			315,679			18	%
Wholesale scrap jewelry sales		70,722			61,108			16	%
Total revenue		1,144,541			987,280			16	%

Cost of revenue:
Cost of retail merchandise sold		407,329			349,138			17	%
Cost of wholesale scrap jewelry sold		57,928			49,604			17	%
Total cost of revenue		465,257			398,742			17	%

Net revenue		679,284			588,538			15	%

Segment expenses:
Operating expenses		372,191			331,916			12	%
Depreciation and amortization		21,609			18,786			15	%
Total segment expenses		393,800			350,702			12	%

Segment pre-tax operating income	$	285,484		$	237,836			20	%

Operating metrics:
Retail merchandise sales margin	42		%	43		%
Net revenue margin	59		%	60		%
Segment pre-tax operating margin	25		%	24		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of September 30,
	2024			2023			Increase
Earning assets:
Pawn loans	$	380,962		$	341,123			12	%
Inventories		238,668			217,406			10	%
	$	619,630		$	558,529			11	%

Average outstanding pawn loan amount (in ones)	$	264		$	245			8	%

Composition of pawn collateral:
General merchandise	30		%	31		%
Jewelry	70		%	69		%
	100		%	100		%

Composition of inventories:
General merchandise	43		%	45		%
Jewelry	57		%	55		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

													Constant Currency Basis
													Three Months
													Ended
		Three Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	129,081			$	132,784			(3	)%		$	142,147			7	%
Pawn loan fees			58,168				60,538			(4	)%			64,130			6	%
Wholesale scrap jewelry sales			11,176				8,725			28	%			11,176			28	%
Total revenue			198,425				202,047			(2	)%			217,453			8	%

Cost of revenue:
Cost of retail merchandise sold			83,729				84,816			(1	)%			92,131			9	%
Cost of wholesale scrap jewelry sold			8,487				7,108			19	%			9,378			32	%
Total cost of revenue			92,216				91,924			—	%			101,509			10	%

Net revenue			106,209				110,123			(4	)%			115,944			5	%

Segment expenses:
Operating expenses			63,062				63,907			(1	)%			69,199			8	%
Depreciation and amortization			4,676				5,236			(11	)%			5,117			(2	)%
Total segment expenses			67,738				69,143			(2	)%			74,316			7	%

Segment pre-tax operating income		$	38,471			$	40,980			(6	)%		$	41,628			2	%

Operating metrics:
Retail merchandise sales margin	35			%	36			%				35			%
Net revenue margin	54			%	55			%				53			%
Segment pre-tax operating margin	19			%	20			%				19			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

													Constant Currency Basis
													Nine Months
													Ended
		Nine Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	394,375			$	378,302			4	%		$	391,606			4	%
Pawn loan fees			175,443				164,619			7	%			174,228			6	%
Wholesale scrap jewelry sales			29,229				37,524			(22	)%			29,229			(22	)%
Total revenue			599,047				580,445			3	%			595,063			3	%

Cost of revenue:
Cost of retail merchandise sold			254,188				244,439			4	%			252,377			3	%
Cost of wholesale scrap jewelry sold			23,783				29,408			(19	)%			23,627			(20	)%
Total cost of revenue			277,971				273,847			2	%			276,004			1	%

Net revenue			321,076				306,598			5	%			319,059			4	%

Segment expenses:
Operating expenses			198,389				179,170			11	%			196,986			10	%
Depreciation and amortization			15,199				15,884			(4	)%			15,072			(5	)%
Total segment expenses			213,588				195,054			10	%			212,058			9	%

Segment pre-tax operating income		$	107,488			$	111,544			(4	)%		$	107,001			(4	)%

Operating metrics:
Retail merchandise sales margin	36			%	35			%				36			%
Net revenue margin	54			%	53			%				54			%
Segment pre-tax operating margin	18			%	19			%				18			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

										Constant Currency Basis
										As of
										September 30,
	As of September 30,									2024		Increase
	2024			2023			(Decrease)			(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	136,915		$	142,662			(4	)%	$	151,486		6	%
Inventories		95,726			96,976			(1	)%		105,792		9	%
	$	232,641		$	239,638			(3	)%	$	257,278		7	%

Average outstanding pawn loan amount (in ones)	$	85		$	89			(4	)%	$	94		6	%

Composition of pawn collateral:
General merchandise	62		%	66		%
Jewelry	38		%	34		%
	100		%	100		%

Composition of inventories:
General merchandise	70		%	68		%
Jewelry	30		%	32		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.2 times			4.3 times

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	188,560	$	189,382		—	%
Interest and fees on finance receivables		61,198		61,413		—	%
Total revenue		249,758		250,795		—	%

Cost of revenue:
Depreciation of leased merchandise		105,308		104,198		1	%
Provision for lease losses		39,268		39,640		(1	)%
Provision for loan losses		40,557		33,096		23	%
Total cost of revenue		185,133		176,934		5	%

Net revenue		64,625		73,861		(13	)%

Segment expenses:
Operating expenses		33,760		33,641		—	%
Depreciation and amortization		679		771		(12	)%
Total segment expenses		34,439		34,412		—	%

Segment pre-tax operating income	$	30,186	$	39,449		(23	)%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	588,801	$	562,625		5	%
Interest and fees on finance receivables		175,384		174,247		1	%
Total revenue		764,185		736,872		4	%

Cost of revenue:
Depreciation of leased merchandise		336,649		309,432		9	%
Provision for lease losses		130,272		141,854		(8	)%
Provision for loan losses		102,091		90,571		13	%
Total cost of revenue		569,012		541,857		5	%

Net revenue		195,173		195,015		—	%

Segment expenses:
Operating expenses		103,851		104,280		—	%
Depreciation and amortization		2,078		2,258		(8	)%
Total segment expenses		105,929		106,538		(1	)%

Segment pre-tax operating income	$	89,244	$	88,477		1	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	143,146	$	147,513		(3	)%
Finance receivables		142,910		103,183		39	%
Total gross transaction volume	$	286,056	$	250,696		14	%


	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	444,045	$	452,792		(2	)%
Finance receivables		350,332		303,485		15	%
Total gross transaction volume	$	794,377	$	756,277		5	%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of September 30,						Increase /
	2024			2023			(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	231,796		$	250,298			(7	)%
Less allowance for lease losses		(93,823	)		(105,472	)		(11	)%
Leased merchandise, net	$	137,973		$	144,826			(5	)%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	232,948		$	209,991			11	%
Less allowance for loan losses		(109,197	)		(96,684	)		13	%
Finance receivables, net	$	123,751		$	113,307			9	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)

	Three Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	103,301			$	110,964			(7	)%
Provision for lease losses			39,268				39,640			(1	)%
Charge-offs			(50,394	)			(46,794	)		8	%
Recoveries			1,648				1,662			(1	)%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	27			%	27			%
Average monthly net charge-off rate⁽²⁾	6.8			%	5.9			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	99,961			$	93,054			7	%
Provision for loan losses			40,557				33,096			23	%
Charge-offs			(32,969	)			(30,890	)		7	%
Recoveries			1,648				1,424			16	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	28			%	32			%
Average monthly net charge-off rate⁽²⁾	4.8			%	4.7			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	95,752			$	79,576			20	%
Provision for lease losses			130,272				141,854			(8	)%
Charge-offs			(137,516	)			(120,966	)		14	%
Recoveries			5,315				5,008			6	%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	29			%	31			%
Average monthly net charge-off rate⁽²⁾	5.9			%	5.3			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	96,454			$	84,833			14	%
Provision for loan losses			102,091				90,571			13	%
Charge-offs			(95,061	)			(83,281	)		14	%
Recoveries			5,713				4,561			25	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	29			%	30			%
Average monthly net charge-off rate⁽²⁾	4.5			%	4.4			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,201		1,817		3,018
New locations opened⁽¹⁾	—		15		15
Locations acquired	1		—		1
Consolidation of existing pawn locations⁽²⁾	(1	)	(8	)	(9	)
Total locations, end of period	1,201		1,824		3,025


	Nine Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,183		1,814		2,997
New locations opened⁽¹⁾	1		54		55
Locations acquired	28		—		28
Consolidation of existing pawn locations^{(2) (3)}	(11	)	(44	)	(55	)
Total locations, end of period	1,201		1,824		3,025

⁽¹⁾In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
⁽²⁾Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
⁽³⁾Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

Retail POS Payment Solutions

As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
	In Thousands			In Thousands			In Thousands			In Thousands			In Thousands			In Thousands
Net income, as reported	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Adjustments, net of tax:
Merger and acquisition expenses		171			2,605			1,675			2,818			4,946			4,379
Non-cash foreign currency loss (gain) related to lease liability		986			442			2,124			(1,171	)		1,517			(1,856	)
AFF purchase accounting and other adjustments		9,572			10,880			28,717			32,869			50,189			50,529
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(21,952	)
Other expenses (income), net		(377	)		(296	)		(518	)		(200	)		(1,397	)		(208	)
Adjusted net income	$	75,179		$	70,775		$	207,266		$	184,028		$	300,112		$	260,670

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
	Per Share			Per Share			Per Share			Per Share
Diluted earnings per share, as reported	$	1.44		$	1.26		$	3.88		$	3.27
Adjustments, net of tax:
Merger and acquisition expenses		0.01			0.06			0.04			0.06
Non-cash foreign currency loss (gain) related to lease liability		0.02			0.01			0.05			(0.03	)
AFF purchase accounting and other adjustments		0.21			0.24			0.63			0.72
Other expenses (income), net		(0.01	)		(0.01	)		(0.02	)		—
Adjusted diluted earnings per share	$	1.67		$	1.56		$	4.58		$	4.02

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Net income	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Income taxes		20,353			20,480			57,975			51,649			79,874			73,189
Depreciation and amortization		25,933			27,365			78,507			81,526			106,142			107,863
Interest expense		27,424			24,689			78,029			66,657			104,615			86,616
Interest income		(403	)		(328	)		(1,407	)		(1,253	)		(1,623	)		(1,462	)
EBITDA		138,134			129,350			388,372			348,291			533,865			495,984
Adjustments:
Merger and acquisition expenses		225			3,387			2,186			3,670			6,438			5,697
Non-cash foreign currency loss (gain) related to lease liability		1,409			632			3,035			(1,673	)		2,168			(2,652	)
AFF purchase accounting and other adjustments⁽¹⁾		—			—			—			—			13,968			8,760
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(26,760	)
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)		(1,983	)		(270	)
Adjusted EBITDA	$	139,278		$	132,985		$	392,752		$	350,028		$	554,456		$	480,759

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

⁽¹⁾The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

	Trailing Twelve
	Months Ended
	September 30,
	2024		2023
Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables	$	—	$	7,859
Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise		—		901
Other non-recurring costs included in administrative expenses related to a discontinued finance product		13,968		—
	$	13,968	$	8,760

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Cash flow from operating activities	$	113,090		$	111,368		$	341,809		$	317,037		$	440,914		$	460,544
Cash flow from certain investing activities:
Pawn loans, net⁽¹⁾		(48,836	)		(59,614	)		(69,723	)		(59,426	)		(45,275	)		(20,536	)
Finance receivables, net		(48,623	)		(30,869	)		(86,186	)		(87,994	)		(113,634	)		(123,713	)
Purchases of furniture, fixtures, equipment and improvements		(13,368	)		(18,375	)		(56,032	)		(46,723	)		(69,457	)		(52,679	)
Free cash flow		2,263			2,510			129,868			122,894			212,548			263,616
Merger and acquisition expenses paid, net of tax benefit		171			2,605			1,675			2,818			4,946			4,379
Adjusted free cash flow	$	2,434		$	5,115		$	131,543		$	125,712		$	217,494		$	267,995

⁽¹⁾Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Return on Equity and Adjusted Return on Assets

Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

	Trailing Twelve
	Months Ended
	September 30, 2024
Adjusted net income⁽¹⁾	$	300,112

Average stockholders’ equity (average of five most recent quarter-end balances)	$	1,987,405
Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)	15		%

Average total assets (average of five most recent quarter-end balances)	$	4,285,437
Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)	7		%

⁽¹⁾See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

Constant Currency Results

The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

	September 30,		Favorable /
	2024	2023	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	19.6	17.6		(11	)%
Three months ended	18.9	17.1		(11	)%
Nine months ended	17.7	17.8		1	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.9		3	%
Three months ended	7.7	7.9		3	%
Nine months ended	7.8	7.8		—	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,164	4,054		(3	)%
Three months ended	4,095	4,048		(1	)%
Nine months ended	3,979	4,413		10	%

FIRSTCASH HOLDINGS, INC.
INTERSEGMENT TRANSACTIONS
(UNAUDITED)

Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

As of September 30, 2024 and 2023, these intersegment amounts are as follows:

Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

The MIL Network –

January 25, 2025

MIL-OSI: Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.

Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):

Net income of $16.8 million, or 51 cents per diluted Class A share, compared to net loss of $0.8 million, or 2 cents per Class A share
Net premiums earned increased 6.0% to $238.0 million
Net premiums written¹ increased 5.9% to $232.2 million
Combined ratio of 96.4%, compared to 104.5%
Net income included after-tax net investment gains of $1.5 million, or 5 cents per diluted Class A share, compared to after-tax net investment losses of $1.0 million, or 3 cents per Class A share
Book value per share of $15.22 at September 30, 2024, compared to $14.26

Financial Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024			2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017		$	655,886		6.7	%
Investment income, net		10,827			10,536		2.8			32,868			30,143		9.0
Net investment gains (losses)		1,876			(1,243	)	NM²			4,725			930		408.1
Total revenues		251,738			233,928		7.6			739,651			687,870		7.5
Net income (loss)		16,752			(805	)	NM			26,860			6,396		319.9
Non-GAAP operating income¹		15,270			176		NM			23,127			5,661		308.5
Annualized return on average equity		13.4	%		-0.7	%	14.1 pts			7.2	%		1.8	%	5.4 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM		$	0.81		$	0.20		305.0	%
Net income (loss) – Class B		0.46			(0.02	)	NM			0.74			0.17		335.3
Non-GAAP operating income – Class A (diluted)		0.46			0.01		NM			0.70			0.17		311.8
Non-GAAP operating income – Class B		0.42			–		NM			0.63			0.15		320.0
Book value		15.22			14.26		6.7	%		15.22			14.26		6.7

¹The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

²Not meaningful.

Management Commentary

“We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.

“Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”

Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024		2023	% Change			2024		2023	% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,401	$	135,432	0.7	%	$	402,982	$	399,427	0.9	%
Personal lines		101,556		88,961	14.2			297,035		256,460	15.8
Total net premiums earned	$	237,957	$	224,393	6.0	%	$	700,017	$	655,887	6.7	%

Net Premiums Written
Commercial lines:
Automobile	$	41,464	$	37,535	10.5	%	$	142,067	$	134,853	5.3	%
Workers’ compensation		23,934		24,371	-1.8			82,599		85,315	-3.2
Commercial multi-peril		50,155		44,949	11.6			163,528		147,622	10.8
Other		10,548		11,639	-9.4			35,649		39,913	-10.7
Total commercial lines		126,101		118,494	6.4			423,843		407,703	4.0
Personal lines:
Automobile		65,150		58,038	12.3			188,958		161,348	17.1
Homeowners		38,288		39,633	-3.4			109,655		105,035	4.4
Other		2,669		3,021	-11.7			8,383		8,917	-6.0
Total personal lines		106,107		100,692	5.4			306,996		275,300	11.5
Total net premiums written	$	232,208	$	219,186	5.9	%	$	730,839	$	683,003	7.0	%

Net Premiums Written

The 5.9% increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023, as shown in the table above, represents the combination of 6.4% growth in commercial lines net premiums written and 5.4% growth in personal lines net premiums written. The $13.0 million increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023 included:

Commercial Lines: $7.6 million increase that we attribute primarily to new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states in which we are executing ongoing profit improvement initiatives as part of our state-specific strategies.
Personal Lines: $5.4 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	50.1	%	56.7	%	54.5	%	56.0	%
Loss ratio – weather-related losses	10.3		11.5		8.6		9.1
Loss ratio – large fire losses	3.7		4.9		5.2		5.3
Loss ratio – net prior-year reserve development	-2.6		-3.3		-2.2		-2.4
Loss ratio	61.5		69.8		66.1		68.0
Expense ratio	34.5		34.1		34.0		34.9
Dividend ratio	0.4		0.6		0.5		0.6
Combined ratio	96.4	%	104.5	%	100.6	%	103.5	%

Statutory Combined Ratios
Commercial lines:
Automobile	101.5	%	86.5	%	98.2	%	94.8	%
Workers’ compensation	84.7		97.7		104.1		93.1
Commercial multi-peril	88.4		114.8		100.4		113.8
Other	59.4		76.2		78.4		82.7
Total commercial lines	89.8		97.5		98.6		100.2
Personal lines:
Automobile	97.8		109.8		97.8		106.1
Homeowners	116.8		128.9		107.5		111.2
Other	102.2		46.4		97.2		81.3
Total personal lines	104.7		119.4		101.2		107.2
Total lines	96.0	%	105.2	%	99.7	%	102.9	%

Loss Ratio

For the third quarter of 2024, the loss ratio decreased to 61.5%, compared to 69.8% for the third quarter of 2023. For the commercial lines segment, the core loss ratio of 48.5% for the third quarter of 2024 decreased from 53.7% for the third quarter of 2023, due largely to lower severity of large casualty losses. For the personal lines segment, the core loss ratio of 52.5% for the third quarter of 2024 decreased from 61.8% for the third quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment. Core loss ratios in both segments improved compared to the respective ratios for the first half of 2024.

Weather-related losses were $24.4 million, or 10.3 percentage points of the loss ratio, for the third quarter of 2024, compared to $25.7 million, or 11.5 percentage points of the loss ratio, for the third quarter of 2023. Weather-related loss activity for the third quarter of 2024 was higher than our previous five-year average of $18.8 million, or 9.4 percentage points of the loss ratio, for third-quarter weather-related losses. Our insurance subsidiaries incurred $6.0 million in net losses from Hurricane Helene in September 2024.

Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2024 were $8.8 million, or 3.7 percentage points of the loss ratio. That amount was lower than large fire losses of $11.0 million, or 4.9 percentage points of the loss ratio, for the third quarter of 2023. We experienced a decrease in commercial property fire losses compared to the prior-year quarter.

Net favorable development of reserves for losses incurred in prior accident years of $6.2 million decreased the loss ratio for the third quarter of 2024 by 2.6 percentage points, compared to $7.3 million that decreased the loss ratio for the third quarter of 2023 by 3.3 percentage points. Our insurance subsidiaries experienced favorable development primarily in the commercial multi-peril and other commercial lines of business.

Expense Ratio

The expense ratio was 34.5% for the third quarter of 2024, compared to 34.1% for the third quarter of 2023. The modest increase in the expense ratio primarily reflected an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. This increase was offset partially by impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project will peak at approximately 1.3 percentage points of the expense ratio for the full year of 2024 before beginning to subside gradually in subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 96.2% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at September 30, 2024.

	September 30, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	173,663		12.7	%	$	176,991		13.3	%
Obligations of states and political subdivisions		413,040		30.1			415,280		31.3
Corporate securities		427,372		31.2			399,640		30.1
Mortgage-backed securities		304,911		22.3			278,260		21.0
Allowance for expected credit losses		(1,483	)	-0.1			(1,326	)	-0.1
Total fixed maturities		1,317,503		96.2			1,268,845		95.6
Equity securities, at fair value		35,957		2.6			25,903		2.0
Short-term investments, at cost		15,805		1.2			32,306		2.4
Total investments	$	1,369,265		100.0	%	$	1,327,054		100.0	%

Average investment yield		3.3	%				3.1	%
Average tax-equivalent investment yield		3.3	%				3.2	%
Average fixed-maturity duration (years)		5.1					4.3

Net investment income of $10.8 million for the third quarter of 2024 increased modestly compared to $10.5 million for the third quarter of 2023. The increase in net investment income primarily reflected an increase in average investment yield relative to the prior-year third quarter.

Net investment gains of $1.9 million for the third quarter of 2024 were primarily related to unrealized gains in the fair value of equity securities held at September 30, 2024. Net investment losses of $1.2 million for the third quarter of 2023 were primarily related to unrealized losses in the fair value of equity securities held at September 30, 2023.

Our book value per share was $15.22 at September 30, 2024, compared to $14.39 at December 31, 2023, with the increase related to net income as well as $11.9 million of after-tax unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 that increased our book value by $0.37 per share, offset partially by cash dividends declared.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:


	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024		2023	% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017	$	655,886	6.7	%
Change in net unearned premiums		(5,749	)		(5,207	)	10.4			30,822		27,117	13.7
Net premiums written	$	232,208		$	219,186		5.9	%	$	730,839	$	683,003	7.0	%

The following table provides a reconciliation of net income (loss) to operating income for the periods indicated:

	Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023		% Change		2024			2023		% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss)	$	16,752		$	(805	)	NM	$	26,860		$	6,396		319.9	%
Investment (gains) losses (after tax)		(1,482	)		981		NM		(3,733	)		(735	)	407.9
Non-GAAP operating income	$	15,270		$	176		NM	$	23,127		$	5,661		308.5	%

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM	$	0.81		$	0.20		305.0	%
Investment (gains) losses (after tax)		(0.05	)		0.03		NM		(0.11	)		(0.03	)	266.7
Non-GAAP operating income – Class A	$	0.46		$	0.01		NM	$	0.70		$	0.17		311.8	%

Net income (loss) – Class B	$	0.46		$	(0.02	)	NM	$	0.74		$	0.17		335.3	%
Investment (gains) losses (after tax)		(0.04	)		0.02		NM		(0.11	)		(0.02	)	450.0
Non-GAAP operating income – Class B	$	0.42		$	–		NM	$	0.63		$	0.15		320.0	%

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On October 17, 2024, we declared a regular quarterly cash dividend of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which are payable on November 15, 2024 to stockholders of record as of the close of business on November 1, 2024.

Pre-Recorded Webcast

At approximately 8:30 am ET on Thursday, October 24, 2024, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and delivering a superior experience to our agents and customers.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.

Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

		Quarter Ended September 30,
			2024		2023

Net premiums earned		$	237,957	$	224,393
Investment income, net of expenses			10,827		10,536
Net investment gains (losses)			1,876		(1,243	)
Lease income			77		86
Installment payment fees			1,001		156
	Total revenues		251,738		233,928

Net losses and loss expenses			146,426		156,683
Amortization of deferred acquisition costs			40,200		39,332
Other underwriting expenses			41,827		37,155
Policyholder dividends			1,007		1,399
Interest			367		156
Other expenses, net			1,499		208
	Total expenses		231,326		234,933

Income (loss) before income tax expense (benefit)			20,412		(1,005	)
Income tax expense (benefit)			3,660		(200	)

Net income (loss)		$	16,752	$	(805	)

Net income (loss) per common share:
	Class A – basic and diluted	$	0.51	$	(0.02	)
	Class B – basic and diluted	$	0.46	$	(0.02	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
	outstanding:
	Class A – basic		27,978,435		27,594,973
	Class A – diluted		28,058,399		27,665,293
	Class B – basic and diluted		5,576,775		5,576,775

Net premiums written		$	232,208	$	219,186

Book value per common share
	at end of period	$	15.22	$	14.26

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

		Nine Months Ended September 30,
			2024		2023

Net premiums earned		$	700,017	$	655,886
Investment income, net of expenses			32,868		30,143
Net investment gains			4,725		930
Lease income			237		262
Installment payment fees			1,804		649
	Total revenues		739,651		687,870

Net losses and loss expenses			462,683		446,024
Amortization of deferred acquisition costs			120,458		115,065
Other underwriting expenses			117,604		113,715
Policyholder dividends			3,248		4,088
Interest			677		464
Other expenses, net			2,309		969
	Total expenses		706,979		680,325

Income before income tax expense			32,672		7,545
Income tax expense			5,812		1,149

Net income		$	26,860	$	6,396

Net income per common share:
	Class A – basic	$	0.82	$	0.20
	Class A – diluted	$	0.81	$	0.20
	Class B – basic and diluted	$	0.74	$	0.17

Supplementary Financial Analysts’ Data

Weighted-average number of shares outstanding:
	Class A – basic		27,878,552		27,390,883
	Class A – diluted		27,916,904		27,507,706
	Class B – basic and diluted		5,576,775		5,576,775

Net premiums written		$	730,839	$	683,003

Book value per common share
	at end of period	$	15.22	$	14.26


Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			September 30,			December 31,
				2024			2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	694,663		$	679,497
		Available for sale, at fair value		622,840			589,348
	Equity securities, at fair value			35,957			25,903
	Short-term investments, at cost			15,805			32,306
		Total investments		1,369,265			1,327,054
Cash				28,651			23,792
Premiums receivable				194,254			179,592
Reinsurance receivable				434,078			441,431
Deferred policy acquisition costs				78,484			75,043
Prepaid reinsurance premiums				185,364			168,724
Other assets				56,030			50,658
		Total assets	$	2,346,126		$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,134,853		$	1,126,157
	Unearned premiums			646,870			599,411
	Accrued expenses			2,987			3,947
	Borrowings under lines of credit			35,000			35,000
	Other liabilities			13,046			22,034
		Total liabilities		1,832,756			1,786,549
Stockholders’ equity:
	Class A common stock			312			308
	Class B common stock			56			56
	Additional paid-in capital			342,186			335,694
	Accumulated other comprehensive loss			(20,951	)		(32,882	)
	Retained earnings			232,993			217,795
	Treasury stock			(41,226	)		(41,226	)
		Total stockholders’ equity		513,370			479,745
		Total liabilities and stockholders’ equity	$	2,346,126		$	2,266,294

The MIL Network –

January 25, 2025

MIL-OSI Europe: Press release – María Corina Machado and Edmundo González Urrutia awarded 2024 Sakharov Prize

Source: European Parliament

The leader of Venezuela’s democratic forces and the opposition candidate in the July presidential elections will receive the 2024 Sakharov Prize for Freedom of Thought.

Parliament’s President Roberta Metsola announced the winners of the 2024 Sakharov Prize for Freedom of Thought in the chamber on Thursday, following the meeting of the Conference of Presidents, which took the decision.

President Metsola said: “The 2024 Sakharov Prize for Freedom of Thought is awarded to María Corina Machado and President-elect Edmundo González Urrutia for their brave fight to restore freedom and democracy in Venezuela. In their quest for a fair, free and peaceful transition of power, they have fearlessly upheld values that millions of Venezuelans and the European Parliament hold so dear: justice, democracy and the rule of law. The European Parliament stands with the people of Venezuela and with María Corina Machado and President-elect Edmundo González Urrutia in their struggle for the democratic future of their country. This award is for them.”

María Corina Machado was elected as the Venezuelan opposition’s presidential candidate on behalf of the ‘Unity Democratic Platform’ in 2023 but was later disqualified by the regime-controlled National Electoral Council.

Edmundo González Urrutia, a diplomat and politician who succeeded her as the ‘Unity Democratic Platform’ candidate, denounced the Venezuelan government’s failure to publish the official results of the presidential elections and contested Nicolás Maduro’s declared victory. Mr González Urrutia left the country in September after a warrant was issued to arrest him.

In a resolution adopted on 19 September 2024, MEPs stressed that international election observation missions made it clear that the Venezuelan presidential election did not comply with international standards of electoral integrity. They recognised Edmundo González Urrutia as the legitimate and democratically-elected president of the country, and María Corina Machado as the leader of the democratic forces.

Parliament condemned “the electoral fraud” and the serious and systematic human rights violations perpetrated against the democratic opposition, the Venezuelan people, and civil society.

According to the Venezuelan government, 2 400 people were arrested during demonstrations that followed the election and non-governmental organisations have reported the deaths of 24 people. María Corina Machado remains in hiding, while Edmundo González Urrutia fled to Spain, which granted him political asylum on 7 September.

In its September 2024 resolution, Parliament called on the EU to extend sanctions against the Venezuelan regime and to apply targeted sanctions through the EU Global Human Rights Sanctions Regime against Nicolás Maduro and his inner circle. Before the elections, the European Parliament urged member states to maintain the sanctions imposed on the Maduro regime and criticised the unconstitutional decision to prevent prominent political opposition figures such as María Corina Machado from running in the 2024 elections.

Award ceremony on 18 December

The award ceremony for the Sakharov Prize for Freedom of Thought will take place on 18 December in Strasbourg, during Parliament’s plenary session.

Background

Named after Soviet physicist and political dissident Andrei Sakharov, the Sakharov Prize for Freedom of Thought is the EU’s highest human rights award. Created in 1988, it is awarded every year by Parliament to individuals or organisations, in recognition of their work in one of the following areas: the defence of human rights and fundamental rights, in particular freedom of expression, the safeguarding of minority rights, respect for international law, the development of democracy and the defence of the rule of law.

MIL OSI Europe News –

January 25, 2025
MIL-OSI Video: Haiti: the situation has worsened – BINUH Briefing | United Nations

Source: United Nations (Video News)

Briefing by María Isabel Salvador, Special Representative of the Secretary-General for Haiti and Head of BINUH, on the question concerning Haiti – Security Council, 9757th meeting.

———————–

Addressing the Security Council, Salvador said, “The situation in Haiti has regrettably worsened. There are more than 700,000 internally displaced persons, which represents a 22 per cent increase in the last 3 months. The political process, despite initial advances, which I reported in July, is now facing significant challenges, turning hope into deep concern.”

She also said, “The security situation remains extremely fragile, with renewed peaks of acute violence. Haitians continue to suffer across the country as criminal gang activities escalate and expand beyond Port-au-Prince, spreading terror and fear, overwhelming the national security apparatus. The humanitarian situation is even more dire.”
She continued, “The MSS mission remains critically under-resourced, which could impact deployment and impede it from carrying out its tasks in support of the Haitian National Police and of the Forces Armées d’Haïti.”

Also addressing the Council Catherine Russell, UNICEF Executive Director, said, “So far, this year, we have seen a staggering increase in reported incidents of sexual violence against women and children, including gender-based violence. Armed groups are also actively recruiting and using children in their operations. We estimate that children account for 30 to 50 percent of armed group members. They are being used as informants, cooks, and sex slaves, and they are being forced to perpetrate armed violence themselves.”

She concluded, “This is a pivotal moment for the country … with the Transitional Presidential Council and the Government now in place leading the effort … and with the Multinational Security Support Mission supporting security initiatives. These are important steps. Now we must do our part. The international community has the tools, and the resources to help Haiti emerge from this crisis, and to embark on a sustained road to recovery. The question is one of will.”

Antonio Rodrigue, Haitian Permanent Representative to the United Nations, said “I would like to take this opportunity to express my deep concern regarding the alarming situation of mass deportations of our compatriots by the Dominican Republic. While we acknowledge the inalienable right of any state to manage its borders and enforce its migration policies, these actions must align with the fundamental principles of international law, especially those that safeguard human dignity and the rights of migrants.”

Roberto Álvarez Gil, Minister for Foreign Affairs of Dominican Republic, said, “The Dominican government cannot accept the reckless call to halt repatriations, as this would be equivalent to declaring an open border, encouraging greater irregular migration to the country. We will never allow this.”

He also said, “The crisis enveloping Haiti is its own responsibility, exacerbated by the lack of timely and sustained support from the international community.”

Erastus Ekitela Lokaale, Permanent Representative of Kenya to the United Nations, said, “While the MSS is a critical and innovative intervention, it is only part of the solution. Haiti’s stability will only be accomplished through a multi-pronged approach that addresses the root causes of its challenges.”

https://www.youtube.com/watch?v=2z2IZLJYstU

MIL OSI Video –

January 25, 2025
MIL-OSI Video: Haiti:Interview with Resident Coordinator in Haiti | United Nations

Source: United Nations (Video News)

UN News interviews Ms. Ulrika Richardson, Resident and Humanitarian Coordinator in Haiti.

https://www.youtube.com/watch?v=USmYpgT_z38

MIL OSI Video –

January 25, 2025
MIL-OSI USA: US Department of Labor, Office of the Trade Representative seek review of alleged denial of labor rights at Hidalgo, Mexico, cement plant facility

Source: US Department of Labor

WASHINGTON – The U.S.-Mexico-Canada Agreement’s Interagency Labor Committee for Monitoring and Enforcement today requested that the Mexican government review an alleged denial of workers’ rights at Odisa Equipment Services, a cement plant machinery manufacturing facility in Hidalgo, Mexico.

The U.S. Department of Labor and U.S. Trade Representative co-chair the Interagency Labor Committee.

The request follows a Sept. 23, 2024, petition filed by a union affiliated with the Confederación Regional Obrera Mexicana, a federation of Mexican labor unions. Filed under the USMCA’s Rapid Response Labor Mechanism, or RRM, the petition alleges Odisa interfered with workers’ rights to freedom of association and collective bargaining through the intimidation and dismissal of workers for union activity.

“We are deeply concerned by the anti-union activity at the Odisa facility,” said Deputy Undersecretary for International Affairs Thea Lee. “Such practices violate Mexican labor laws and undermine the labor protections established under the U.S.-Mexico-Canada Agreement. We look forward to working closely with the government of Mexico to resolve these denials of rights.”

The Interagency Labor Committee found sufficient and credible evidence that supports the allegations, resulting in USTR submitting the request for review using the RRM.

“This is another example of how the Biden-Harris administration is keeping corporations accountable and lifting up working communities by protecting workers’ rights to freedom of association and collective bargaining,” said Ambassador Katherine Tai. “The United States remains committed to empowering workers through the USMCA, and we look forward to collaborating with the government of Mexico to address the ongoing denials of rights at this facility.”

The Mexican government has 10 days to decide whether to conduct a review and 45 days to investigate the claims and present its findings.

A subsidiary of Odisa, which has manufactured concrete batch plants, truck mixers and material handling equipment for nearly 50 years, Odisa Equipment Services exports material handling equipment, including sheet metal and aluminum goods, to dozens of countries including the U.S.

Learn more about the department’s international work.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: U.S. shale natural gas production has declined so far in 2024

Source: US Energy Information Administration

In-depth analysis

October 24, 2024

Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
Note: The formations included in our U.S. shale natural gas production estimates are determined by identified tight and shale formations. Year-to-date 2024=January–September.

U.S. natural gas production from shale and tight formations, which accounts for 79% of dry natural gas production, decreased slightly in the first nine months of 2024 compared with the same period in 2023. If this trend holds for the remainder of 2024, it would mark the first annual decrease in U.S. shale gas production since we started collecting these data in 2000.

Total U.S. shale gas production from January through September 2024 declined by about 1%, to 81.2 billion cubic feet per day (Bcf/d), compared with the same period in 2023, while other U.S. dry natural gas production increased by about 6% to 22.1 Bcf/d. Total U.S. dry natural gas production from January through September 2024 averaged 103.3 Bcf/d, essentially flat compared with the same period in 2023.

The decline in shale gas production so far this year has been driven primarily by declines in production in the Haynesville and Utica plays. From January through September 2024, shale gas production decreased by 12% (1.8 Bcf/d) in the Haynesville and by 10% (0.6 Bcf/d) in the Utica compared with the same period in 2023. At the same time, shale gas production in the Permian play grew by 10% (1.6 Bcf/d). Production in the Marcellus play, which leads U.S. shale gas production, remained flat.

The Haynesville play in northeastern Texas and northwestern Louisiana is a dry natural gas formation. The Utica and Marcellus plays in the Appalachian Basin produce lease condensate in addition to dry natural gas. In all three plays, natural gas prices mostly drive drilling and developing wells. The U.S. benchmark Henry Hub daily natural gas price has generally declined since August 2022 and reached record lows in the first half of 2024, making drilling natural gas wells less profitable, particularly in the Haynesville. Several operators in the Haynesville and the Appalachian Basin shut in natural gas production in reaction to historically low prices and intend to continue curtailments in the second half of 2024.

In contrast, natural gas produced in the Permian play in western Texas and southeastern New Mexico is primarily associated gas from oil wells where drilling and development is driven by the oil price. Natural gas production in the Permian has increased this year along with increasing oil production.

Shale natural gas production in the Utica was 5.6 Bcf/d in September, 33% less than the monthly high of 8.3 Bcf/d in December 2019 and 10% less than the average of 6.2 Bcf/d in 2023. At depths of 5,000 feet to 11,000 feet, wells in the Utica, which lies beneath the Marcellus, are slightly more expensive to drill than Marcellus wells because of their depth.

Drilling costs of Haynesville wells, at depths of 10,500 feet to 13,500 feet, are even higher. Shale natural gas production in the Haynesville was 13.0 Bcf/d in September 2024, 14% less than the peak in May 2023. The Haynesville is the third-largest shale gas-producing play in the United States, behind the Marcellus and the Permian plays. In 2023, shale natural gas production in the Haynesville averaged 14.6 Bcf/d, accounting for 14% of total U.S. dry natural gas production.

Data source: Refinitiv Eikon and Baker Hughes Company
Note: Prices are adjusted for inflation based on the September 2024 Consumer Price Index.

The U.S. benchmark Henry Hub natural gas price fell 79% from the August 2022 inflation-adjusted high of $9.39 per million British thermal units (MMBtu) to an average of $1.99/MMBtu in August 2024. So far this year, the price has averaged $2.10/MMBtu compared with an inflation-adjusted average of $6.89/MMBtu in 2022 and $2.62/MMBtu in 2023. As natural gas prices declined, the economics of producing natural gas in the dry gas formations worsened, leading producers to shut in production and drop drilling rigs.

Producers tend to increase or decrease the number of drilling rigs in operation as natural gas prices fluctuate. The number of natural gas-directed drilling rigs in the Haynesville, Utica, and Marcellus plays has decreased steadily since the end of 2022, according to data from Baker Hughes. In the Haynesville, an average of 33 rigs were in operation in September 2024, 53% fewer than in January 2023. The number of rigs operating in the Haynesville in September was the lowest it has been since July 2020.

In the Utica, an average of seven rigs were operating in September 2024, fewer than half the number that were operating in January 2023, and in the Marcellus, an average of 25 rigs were in operation, about 36% fewer than in January 2023. Although the productivity of newer wells has improved in recent years, the decline in rig counts has contributed to an overall decrease in production.

In our latest Short-Term Energy Outlook, we forecast total U.S. dry natural gas production to average 103.5 Bcf/d in 2024, down slightly from 103.8 Bcf/d in 2023, and to resume modest growth in 2025 at 104.6 Bcf/d.

Principal contributors: Katy Fleury, Corrina Ricker, Kenya Schott

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Rep. Cuellar Participates in Panel Discussion on Colombia Bridge Expansion and International Trade

Source: United States House of Representatives – Congressman Henry Cuellar (TX-28)

LAREDO, TX – Today, Congressman Henry Cuellar (TX-28), Ph.D. participated in a panel discussion hosted by the Laredo Chamber of Commerce in Laredo, TX, on the Colombia Bridge expansion project and international trade.

“I’m pleased to have worked with Senator Cruz to include language in the FY24 National Defense Authorization Act (NDAA) to expedite the Presidential permit for the Colombia-Solidarity Bridge expansion project,” said Dr. Cuellar, a senior member of the House Appropriations Committee. “By expanding the bridge from 8 lanes to 16 lanes, this project will improve our supply chain, reduce congestion, and provide economic growth. I am thankful to the Laredo Chamber of Commerce for hosting this discussion on the Colombia Bridge expansion project and to Senator Cruz, Mayor Victor Trevino, City Manager Joseph Neeb, and Governor Samuel Garcia for being here today to discuss this important project.”

The panel discussion included panelists Rep. Cuellar, City of Laredo Mayor Victor Trevino, Senator Cruz, and Nuevo León Governor Samuel Garcia. The discussion covered the importance of the Colombia Bridge expansion project, trade between the United States and Mexico, and other developments impacting commerce in the district.

Presidential permits are required for construction projects at border crossings. Obtaining a permit currently requires an environmental review, which often takes years to complete. Dr. Cuellar’s language would direct the President to issue conditional permits for projects while environmental reviews required under the National Environmental Policy Act (NEPA) are ongoing.

Dr. Cuellar has long worked to streamline the Presidential permitting process for border bridges. As a senior member of the House Appropriations Committee, Dr. Cuellar secured language to reform the Presidential permit process for border bridges in the Fiscal Year 2024 State, Foreign Operations, and Related Programs House appropriations bill, which would expedite the Colombia-Solidarity expansion project in Laredo.

The National Defense Authorization Act (NDAA) is an annual law specifying the budget and expenditures for the U.S. Department of Defense.

MIL OSI USA News –

January 25, 2025
MIL-OSI China: BRICS countries enhance cooperation through close economic, trade exchanges

Source: People’s Republic of China – State Council News

BEIJING, Oct. 24 — Economic and trade ties among BRICS countries are becoming increasingly close, and China is playing an important role in driving mutually beneficial BRICS cooperation.

The term BRIC was initially coined in 2001 as a concept referring to the emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade. It has become the world’s most important platform for solidarity and cooperation among emerging markets and developing countries.

The 16th BRICS Summit, held Tuesday to Thursday in Kazan, Russia, has drawn global attention and is believed to bring new economic and trade cooperation opportunities between China and other BRICS nations.

China’s foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1 percent, customs data showed.

The trade growth can be attributed to a high degree of economic complementarity, as well as China’s commitment to high-level opening up and the free trade agreements between China and other BRICS countries, said Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

In the industrial sector, China’s exports of steel and textile raw materials to other BRICS nations grew by 8.6 percent and 13.4 percent year on year in the first three quarters.

During the same period, China’s exports of intermediate goods such as integrated circuits, tablet display modules and aircraft parts to other BRICS countries achieved double-digit growth, helping other BRICS members boost their emerging industries.

Trade in agricultural products has also been robust. In the first three quarters, over 80 percent of poultry and frozen pollack and over 50 percent of crabs imported by China came from BRICS members.

“For BRICS countries, trade cooperation is not only conducive to promoting technological exchanges and innovation but also to bringing more development opportunities for member countries and even the world,” Hong added.

Regarding the financial sector, the New Development Bank is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the Shanghai-headquartered institution provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

Funding a raft of projects ranging from India’s urban rail to Brazil’s wind power complexes, the bank has cumulatively approved loans of 35 billion U.S. dollars for more than 100 projects to date.

Building on its commitment to multilateralism, BRICS has taken practical steps to unlock the potential of economic and trade cooperation and create new growth areas. These include policy coordination and joint initiatives to enhance trade and investment opportunities among member states.

At the 14th BRICS Economic and Foreign Trade Ministers’ Meeting held in Moscow in July, participants agreed to step up exchanges and cooperation in emerging areas such as global value chains, digital technologies and special economic zones, conduct practical cooperation in green product standards, electronic documentation and e-commerce, and strengthen policy exchanges, capacity building and best practice sharing.

By enhancing economic and trade exchanges, BRICS countries have capitalized on their complementary advantages, serving as an important force to oppose trade protectionism and promote global economic growth, noted Liu Ying, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.

MIL OSI China News –

January 25, 2025
MIL-OSI China: BRICS charts path at milestone summit, Xi offers five suggestions

Source: People’s Republic of China – State Council News

KAZAN, Russia, Oct. 24 — Heels clicked and shoes shuffled across the media center floors at the BRICS Kazan summit on Wednesday, as journalists from around the world rushed to cover the landmark first in-person summit since the group’s expansion.

Amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage. Chinese President Xi Jinping, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

“We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

This year’s summit also marked another major progress with the decision to invite a number of nations as partner countries, further advancing the group’s development.

The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is important and essential, said Bunn Nagara, director and senior fellow at Belt and Road Initiative Caucus for Asia-Pacific.

“China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and key international issues under the theme “Strengthening Multilateralism for Just Global Development and Security,” focusing on global and regional security, sustainable development, climate change, and reforms in global economic governance.

A major emphasis of the summit was the call for increased funding to support sustainable development in developing countries. Egyptian President Abdel-Fattah al-Sisi said BRICS is set to “strengthen a multipolar international system,” particularly through “innovative and effective” financing for these countries.

Russian President Vladimir Putin, who chaired the Kazan summit, said that “the trend for the BRICS’ leading role in the global economy will only strengthen.”

He warned against the ongoing risks from geopolitical tensions and the rise of unilateral sanctions and protectionism, emphasizing “a key task is to promote the use of national currencies to finance trade and investment.”

Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, echoed this sentiment. “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system,” said Lula.

BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. The BRICS countries agreed on Wednesday to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

The BRICS countries are also encouraged to strengthen financial cooperation and promote local currency settlement, according to the declaration.

During the summit, leaders also emphasized the need for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive formation capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

“The period of unilateralism is coming to an end,” added Iranian President Masoud Pezeshkian, calling for a more equitable global system.

Several speakers also highlighted the need for differentiated responsibilities in addressing climate change, urging that developing nations’ emissions reduction efforts should align with their capacities.

BRICS, initially known as “BRIC” when it was coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, originally represented emerging market economies of Brazil, Russia, India, and China. South Africa joined in 2010, officially forming BRICS.

In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

Other than the new full members joining on Jan. 1, 2024, over 30 countries, including Thailand, Malaysia, Türkiye and Azerbaijan, have either formally applied for or expressed interest in BRICS membership. Many other developing countries are seeking deeper cooperation with the group.

Observers view BRICS as a vital platform for developing countries to pursue growth. Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, noted that BRICS aims to foster a more equitable, effective, and rational international system.

It will play a crucial role in promoting development and growth opportunities for Global South countries while ensuring the sustainability of economic and social progress, said Al-Ali.

Echoing that view, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg, said, “The BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

MIL OSI China News –

January 25, 2025
MIL-OSI: LNG Energy Group Announces Release of Its Sustainability Report

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: E26) (the “Company” or “LNG Energy Group”) today released its 2023 Sustainability Report (the “Sustainability Report”).

“I am pleased to report that LNG Energy Group has released its Sustainability Report and has taken a leading role in ESG and sustainability initiatives in Colombia,” comments Pablo Navarro, Chairman and Chief Executive Officer of the Company. “Our Sustainability Report highlights all of our important activities in Colombia and our approach to minimizing our environmental impact while improving the living standards of our local communities.”

The Sustainability Report presents the Company’s sustainability initiatives in 2023 and into 2024. The Sustainability Report can be accessed on the Company’s website at: https://www.lngenergygroup.com/sustainability.

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

About LNG Energy Group

The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.

For more information, please see below:

Website:
www.lngenergygroup.com

Investor Relations:
James Morris, Vice-President, Business Development and Investor Relations
Email: investor.relations@lngenergygroup.com
Telephone: 205-835-0676

Find us on social media:
LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
Instagram: @lngenergygroup
X: @LNGEnergyCorp

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends”, or variations of such words and phrases, or stating that certain actions, events or results “may” or “could”, “would”, “should”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.

The MIL Network –

January 25, 2025
MIL-OSI Canada: Statement by the Prime Minister on United Nations Day

Source: Government of Canada – Prime Minister

The Prime Minister, Justin Trudeau, today issued the following statement on United Nations Day:

“For nearly 80 years, the United Nations (UN) has brought the international community together to make progress on global challenges. Protecting human rights. Fighting climate change. Strengthening democracy, peace, and security. Reinforcing international law.

“As a founding member, Canada is doing its part to make this progress possible. Last month, at the UN General Assembly, we announced $200 million in measures to make the world better, fairer, and more secure. Our investments will protect the sexual and reproductive health and rights of women and girls, strengthen action on gender equality, fight climate change, and support efforts to restore peace and security in Haiti.

“We also adopted the Pact for the Future, so we can find shared solutions to shared challenges, alongside partners. As Co-Chair of the UN Sustainable Development Goals (SDG) Advocates group and SDG Stimulus Leaders group, I continue to highlight Canada’s commitment to advancing the SDGs. With the Vancouver Principles, we are leading efforts to end the recruitment of child soldiers. And with the Elsie Initiative, we are increasing the participation of women in peace operations.

“The UN’s mission would not be possible without its humanitarian workers, officers, and peacekeepers. It is critical we ensure their safety and protect their ability to deliver life-saving assistance. When we work together, we can make life better. This is what the UN is about. I invite Canadians to learn more about this important work.”

MIL OSI Canada News –

January 25, 2025
MIL-OSI China: Xi advocates high-quality development of greater BRICS cooperation at milestone summit

Source: People’s Republic of China – State Council News

Xi advocates high-quality development of greater BRICS cooperation at milestone summit

KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping on Wednesday called on BRICS countries to work for the high-quality development of greater BRICS cooperation as leaders gathered here for the 16th BRICS Summit.

In his address to the summit, Xi emphasized the need for BRICS countries to seize the historical opportunity and work together to strengthen solidarity and cooperation among Global South nations.

STRENGTHENING SOLIDARITY

During a small-group meeting, President Xi welcomed new members to the BRICS family and extended invitations to many other countries to become partner countries.

Xi pointed out that the enlargement of BRICS is a major milestone in its development history, and a landmark event in the evolution of the international situation. It is for their shared pursuit and for the overarching trend of peace and development that BRICS countries have come together, he said.

Stressing that the world is undergoing accelerated changes unseen in a century, marked by new trends of multipolarity and the risks of a “new Cold War,” Xi said BRICS countries should seize the historical opportunity, take proactive steps, remain committed to the original aspiration and mission of openness, inclusiveness and win-win cooperation, conform to the general trend of the rise of the Global South, seek common ground while reserving differences, work in concert to further consolidate common values, safeguard common interests, and strengthen BRICS countries through unity.

“We must work together to build BRICS into a primary channel for strengthening solidarity and cooperation among Global South nations and a vanguard for advancing global governance reform,” Xi said.

Xi stressed that the more turbulent the world is, the more BRICS countries should uphold the banner of peace, development and win-win cooperation, refining the essence of BRICS and demonstrating its strength. BRICS countries should raise the voice of peace, advocating a new path to security that features dialogue over confrontation and partnership over alliance.

Xi also urged BRICS countries to jointly pursue a path of development, advocate a universally beneficial and inclusive economic globalization, and stay committed to the principle of common development. He said BRICS countries should consolidate the foundation of cooperation, deepen cooperation in traditional areas such as agriculture, energy, minerals, economy and trade, expand cooperation in emerging areas such as green, low-carbon and artificial intelligence, and safeguard trade, investment and financial security.

ADVANCING DEVELOPMENT

As the high-profile gathering unfolded amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage.

President Xi, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

“We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

This year’s summit also marked another major milestone with the decision to invite a number of nations as partner countries, further advancing the group’s development.

During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and crucial international issues of shared concern under the theme “Strengthening Multilateralism for Just Global Development and Security.” Central to their discussions were global and regional security, sustainable development, climate change, and reforms in global economic governance.

A notable focus of the summit was the call for increased funding to support the sustainable development of developing countries. Egyptian President Abdelfattah al-Sisi said that BRICS aims to “strengthen a multipolar international system,” particularly through facilitating “innovative and effective” financing for developing nations.

Russian President Vladimir Putin said that “the trend for the BRICS’ leading role in the global economy will only strengthen.” He cautioned against the ongoing risks posed by geopolitical tensions, unilateral sanctions, and protectionism. “A key task is to promote the use of national currencies to finance trade and investment,” Putin said.

Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, said, “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system.”

BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. On Wednesday, the BRICS countries agreed to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

Leaders also advocated for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive bloc capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

“The period of unilateralism is coming to an end,” said Iranian President Masoud Pezeshkian, calling for a more equitable global system.

GROWING APPEAL

The term BRIC was initially coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, as an investment concept referring to emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

In recent years, BRICS has garnered attention from countries around the world. Over 30 countries, including Thailand, Malaysia, Türkiye, and Azerbaijan, have either formally applied for or expressed interest in joining the group. Many other developing countries are also seeking stronger cooperation with BRICS.

The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is not only important but essential, said Bunn Nagara, director and senior fellow at the Belt and Road Initiative Caucus for Asia-Pacific.

“China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

BRICS is seen as a vital platform for developing countries to pursue growth and address global imbalances.

The enlargement of BRICS is “important in tipping the financial and technological balance in favor of the majority Global South rather than the minority Global North,” Webby Kalikiti, a lecturer and researcher at the Department of History, University of Zambia noted. He believed that the future of the world depends on the cooperative energies of all countries and the transition to a multipolar world.

Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, believed that BRICS aims to foster a more equitable, effective, and rational international system.

It will play a crucial role in promoting development and growth opportunities for Global South countries, while also ensuring the sustainability of economic and social progress, said Al-Ali.

Similarly, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg said that “the BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

MIL OSI China News –

January 25, 2025

Category: Latin America

Meetings on the margins

Lacking a coherent agenda

Step 1: Ensure biodiversity increases are absolute

Step 2: Avoid conservation payments in risky situations

Step 3: Go beyond compensation

Step 4: Effectively implement nature positive laws

Is nature positive within reach?