Chen’s Top Picks for Q3

Source: Streetwise Reports   06/30/2022

Need to know where to go in these turbulent times? Asset manager Chen Lin has some ideas with his top picks for the third quarter.Asset manager Chen Lin’s picks for the t…

Source: Streetwise Reports   06/30/2022

Need to know where to go in these turbulent times? Asset manager Chen Lin has some ideas with his top picks for the third quarter.

Asset manager Chen Lin’s picks for the third quarter are in, and they include an energy company, a silver miner, two silver ETFs, and several biotechs.

He’s also taking a victory lap on a pick from Q2 that is performing well.

Chen said he has been eyeing the energy sector since Colombia on June 19 elected a new president, left-wing Gustavo Petro, who wants to halt new oil and gas exploration and end open pit mining.

Petro is the first leftist leader of Colombia, which is now one of nine Central and South American countries with leaders leaning ideologically in that direction.

But the situation is a great opportunity for investors, Chen said.

Canacol Energy Ltd.

 

Calgary-based Canacol Energy Ltd. (CNE:TSX; CNNEF:OTCQX) is a major player in natural gas production and exploration in Colombia. Its stock dropped 9.3 percent the Monday after the runoff election, the company’s biggest intraday fall since May 2020.

But analysts remain bullish on the company, including Chen and Eight Capital’s Phil Skolnick, who say the company’s long-term prospects have not been harmed.

“We continue to believe it is difficult for radical changes to be made due to the balance of powers in Colombia,” Skolnick wrote in a June 20 research report, as reported by Bloomberg.

Petro still faces a divided Congress and faces term limits, he noted.

Canacol. Source: Canacol Energy Ltd.

“The winner is essentially a lame duck, in our view,” Skolnick wrote. The company also has a new pipeline to Medellin coming online that will essentially double its production, Chen said.

“So right now, it’s at a historical low due to the Colombia election,” Chen said. “It looks like a very good opportunity.”

Canacol also recently announced a CA$0.05-per-share dividend to shareholders, payable on July 15.

It said it’s the largest independent onshore conventional natural gas exploration and production company in Colombia, and that it supplies about 20% of the country’s natural gas.

Canacol has a market cap of CA$449.36 million and 170.86 million shares outstanding. It trades in a 52-week range of CA$4.09 and CA$2.43.

Altaley Mining Corp.; Silver ETFs

 

The green energy revolution has a silver highlight, Chen said, as the growing demand for solar panels is driving the demand for the precious metal. Silver use in solar applications increased 13% to 113.7 Moz in 2021, according to the Silver Institute.

Chen recently gave a presentation at the Metals Investor Forum in Toronto in June, in which he said he extolled the virtues of buying into the sector.

“We have a historical opportunity for silver,” he said. “Demand for solar panels is set to exponentially rise.”

One of his favorites, he said, is Altaley Mining Corp (ATLY.V), a Vancouver-based miner with two 100%-owned gold, silver, and base metal mining projects in Mexico. Its Tahuehueto mill is set to ramp up to full production by the end of the year, and its Campo Morado project is producing an average of 2,200 tonnes per day and is estimated to be Mexico’s sixth-largest zinc producer, the company said.

Chen said the stock has been in decline, from CA$0.35 in April to CA$0.18 on Tuesday, with the anticipation of a block trade. The company said that a director, Roberto Guzman Garcia, is selling up to 50 million of his 68.2 million shares as part of a restructuring of his Mexican real estate business. The sales are being made in a series of private transactions.

After the block trade in “a couple of weeks,” pressure will ease, Chen said. “It is a very good buying opportunity for this stock.”

Altaley has a market cap of CA$48.63 million with 277.89 million shares outstanding. It trades in a 52-week range of CA$0.80 to CA$0.18.

Chen also suggested two silver exchange-traded funds (ETFs): the ETFMG Prime Junior Silver Miners ETF (SILJ), and the Silver Miners ETF (SIL).

Finally, Chen picked three companies from the biotech sector, including one encore performance from the second quarter.

Tricida Inc.

 

Tricida, Inc. (TCDA:NASDAQ) is a pharmaceutical company developing Veverimer, which is designed to treat metabolic acidosis in patients with chronic kidney disease. The U.S. Food and Drug Administration (FDA) did not approve the drug in 2020, but the company plans to resubmit its New Drug Application (NDA) in 2023.

A hedge fund, Venrock Healthcare Capital Partners, owns more than a 10% stake in the company and has acquired shares worth more than CA$13 million this month.

“The company looks like it’s about to break out from the chart,” Chen said of Tricida.

Tricida’s market cap is $542.06 million with 55.42 million shares outstanding. It trades in a 52-week range of $12.45 and $3.55.

Amyris Inc.

 

Chen said he sees a lot of potential in Amyris Inc. (AMRS:NASDAQ), a synthetic biotech company that “programs” cells to create sustainable ingredients.

The company just last week announced that it had successfully began production at its new precision sugar fermentation plant in Barra Bonita, Brazil. The plant consists of five precision fermentation “mini-factories” that can produce 13 of Amyris’ molecules, which are used in everything from health and beauty products to flavors and fragrances.

From the first quarter of 2021 to the first quarter of 2022, the company said it saw 75% core revenue growth and grew consumer revenue 121% to a record $35 million.

“They will make a very strong start in 2023,” Chen said. “I would recommend using any weaknesses in the next a few months to accumulate shares. If they can deliver $2 billion in revenue by 2025, the stock will have at least (a) 10x upside, could be a lot more.”

Amyris has a market cap of $593.07 million and 319.71 million shares outstanding. It trades in a 52-week range of $17.19 and $1.47.

Axsome Therapeutics Inc.

 

The asset manager also doubled down on his top pick from the second quarter, Axsome Therapeutics Inc. (AXSM:NASDAQ), a biopharmaceutical company that focuses on therapies for central nervous system conditions.

The company has been waiting on decisions from the FDA on drug candidates for major depressive disorder and migraine.

Its stock went up more than 50% to $37.03 on Monday on news that it had received proposed labeling for its NDA for its major depressive disorder treatment, bringing it one step closer to approval.

Axsome has a market cap of $1.44 billion and 38.91 million shares outstanding. It trades in a 52-week range of $74.10 and $19.38.

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Disclosures

1) Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

5) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: ATLYF: OTCMKTS, AMRS:NASDAQ, AXSM:NASDAQ, CNE:TSX; CNNEF:OTCQX, TCDA:NASDAQ, )

Co. Secures Option to Acquire Its 15th Uranium Asset

The mining firm plans to drill at this Athabasca Basin property this year, noted a Fundamental Research report.Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB; SC1P:FSE) secured an option to acquire up to 100% of the Russell Lake uranium project from…

The mining firm plans to drill at this Athabasca Basin property this year, noted a Fundamental Research report.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB; SC1P:FSE) secured an option to acquire up to 100% of the Russell Lake uranium project from Rio Tinto, reported Fundamental Research analyst Sid Rajeev in a June 21 research note.

To own Russell Lake outright, the analyst noted, Skyharbour must pay about US$37.5 million (US$37.5M) in cash or shares and spend US$12M on exploration there over several years.

Note: The company stated in its May 19 news release that as operator, it can "earn an initial 51% interest in the Property by paying CAD $508,200 in cash, issuing 3,584,014 common shares to RTEC, and funding CAD $5,717,250 in exploration on the Project, inclusive of a 10% management fee to Skyharbour, over a period of 3 years."

The addition of this property would take Skyharbour's total of uranium projects in and around Canada's Athabasca Basin to 15. One of those, Moore, is just next door to Russell Lake, and Skyharbour is pursuing a seven-hole drill program at it.

"The drill-ready Russell Lake project is strategically located between Cameco’s (TSX: CCO) Key Lake mill and MacArthur uranium mine, the world’s largest uranium mill and the largest high-grade uranium mine, respectively," Rajeev noted.

Extensive exploration work already has been done at Russell Lake, which is made up of 26 claims over 73,294 hectares, the analyst stated. At this property, about 230 holes' worth of drilling spanning roughly 95,000 meters was previously completed, and exploration targets were identified, wrote Rajeev. Those include the Grayling zone, M zone extension, Little Man Lake, Christie Lake and Fox Lake Trail. The Grayling zone, for example, showed 0.3 meters of 3.45% U3O8.

Skyharbour plans to follow up soon with some preliminary exploration efforts at Russell Lake and then drill there later this year.

The analyst noted that Skyharbour has a strong balance sheet, and its in-the-money warrants and options imply it can raise US$5M.

"We expect several catalysts from the ongoing/planned exploration programs by Skyharbour and its partners this year," added Rajeev.

Fundamental adjusted its fair value estimate on Skyharbour to CA$0.75 per share from CA$1.04 "due to the lower sector multiple," Rajeev indicated. Currently, the uranium company is trading at around CA$0.38 per share. Fundamental maintains its Buy rating on the company.

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Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Skyharbour. Click here for important disclosures about sponsor fees. 
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour, a company mentioned in this article.

Disclosures for Fundamental Research Corp., Skyharbour Resources Ltd., June 21, 2022

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness.

There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by SYH to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct.

Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, SYH has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated.

Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time.

( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQB; SC1P:FSE, )

Fuel Cell Co. Secures New €782.1M Investment for EU Project

Source: Streetwise Reports   06/16/2022

Advent Technologies Holdings Inc.’s shares traded 245% higher after the fuel cell systems developer and components manufacturer advised it received official notification from the Greek State for the IPCEI Green HiPo Project. The firm is scheduled to receive an investment totaling €782.1 million ($829M) over a period of six years for a new hydrogen fuel facility to be constructed in Western Macedonia.

Renewable energy sector fuel cell systems developer and components manufacturer Advent Technologies Holdings Inc. (ADN:NASDAQ), today announced that “it has received notification from the Greek State for funding under the Important Projects of Common European Interest (IPCEI) Hydrogen–Technology, Green HiPo.”

The company advised that Greece has in turn submitted the necessary details to the European Union (EU) as required under the terms of the IPCEI framework. The firm indicated that once the EU ratifies the request, Advent’s Green HiPo project will be eligible to receive total funding in the amount of 782.1 million euros ($829 million) over a period of six years.

Advent Technologies reported that under the terms of the Green HiPo project development plan, it will be tasked with developing, designing, and manufacturing high-temperature proton exchange membrane (HT-PEM) fuel cell systems and electrolyzer systems over a six-year period at a new state-of-the-art production facility in Western Macedonia.

Advent Technologies Holdings stated that the approved investment funding schedule (in euros) is expected to be as follows: 35.8 million in year one; 84.3 million in year two; 175.7 million in year three; 259.3 million in year four; 111.7 million in year five; and 115.2 million in year six.

The company mentioned that the Green HiPo project was one of twenty proposed projects submitted to the Greek State for IPCEI funding. The firm noted only five of these projects, including Green HiPo, were selected for advancement and submitted to the EU for a full and detailed review. To date, only Advent’s Green HiPo and one other project have been officially notified by the Greek State.

The firm claimed that “the notification in the first wave of IPCEI Hydrogen–Technology projects is a testament to the world-class innovation that Advent Technologies possesses and the belief that Greece and the EU have in Advent’s ability to deliver such an important project.”

Advent Technologies Holdings’ Chairman and CEO Dr. Vasilis Gregoriou commented, “Today is a milestone day for Advent but also for Greece and Europe. Green HiPo will catalyze a sea-change of operational events within Advent while the project is implemented. Our application was initially submitted in April 2021, and the process for review and due diligence by the EU has been thorough.”

Dr. Gregoriou continued adding, “Advent’s Green HiPo project will be instrumental in hydrogen generation and clean energy production. Green HiPo demonstrates the commitment by Greece and the EU to rapidly decarbonize power production and to move forward to energy security and independence with hydrogen technologies playing a crucial role.”

Advent Technologies is an advanced materials and technology firm based in Boston, Mass. The company engineers, manufactures, and assembles fuel cell systems and critical components that aid in determining the performance of hydrogen fuel cells and other energy systems for applications in the fuel cell and hydrogen technology markets. The company designs and manufactures HT-PEM fuel cells, HT-PEM-based membrane electrode assemblies, membranes, and electrodes that are used in supplying stationary and portable power and green hydrogen for the automotive, aviation, defense, energy storage, marine, oil and gas, and sensor markets.

Advent Technologies started off the day with a market cap of around $59.8 million with approximately 51.6 million shares outstanding. ADN shares opened 150% higher today at $2.90 (+$1.74, +150.0%) over yesterday’s $1.16 closing price. The stock has traded today between $2.76 and $4.48 per share and is currently trading at $4.01 (+$2.85, +245.69%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: ADN:NASDAQ,
)

Source: Streetwise Reports   06/16/2022

Advent Technologies Holdings Inc.'s shares traded 245% higher after the fuel cell systems developer and components manufacturer advised it received official notification from the Greek State for the IPCEI Green HiPo Project. The firm is scheduled to receive an investment totaling €782.1 million ($829M) over a period of six years for a new hydrogen fuel facility to be constructed in Western Macedonia.

Renewable energy sector fuel cell systems developer and components manufacturer Advent Technologies Holdings Inc. (ADN:NASDAQ), today announced that "it has received notification from the Greek State for funding under the Important Projects of Common European Interest (IPCEI) Hydrogen–Technology, Green HiPo."

The company advised that Greece has in turn submitted the necessary details to the European Union (EU) as required under the terms of the IPCEI framework. The firm indicated that once the EU ratifies the request, Advent's Green HiPo project will be eligible to receive total funding in the amount of 782.1 million euros ($829 million) over a period of six years.

Advent Technologies reported that under the terms of the Green HiPo project development plan, it will be tasked with developing, designing, and manufacturing high-temperature proton exchange membrane (HT-PEM) fuel cell systems and electrolyzer systems over a six-year period at a new state-of-the-art production facility in Western Macedonia.

Advent Technologies Holdings stated that the approved investment funding schedule (in euros) is expected to be as follows: 35.8 million in year one; 84.3 million in year two; 175.7 million in year three; 259.3 million in year four; 111.7 million in year five; and 115.2 million in year six.

The company mentioned that the Green HiPo project was one of twenty proposed projects submitted to the Greek State for IPCEI funding. The firm noted only five of these projects, including Green HiPo, were selected for advancement and submitted to the EU for a full and detailed review. To date, only Advent's Green HiPo and one other project have been officially notified by the Greek State.

The firm claimed that "the notification in the first wave of IPCEI Hydrogen–Technology projects is a testament to the world-class innovation that Advent Technologies possesses and the belief that Greece and the EU have in Advent's ability to deliver such an important project."

Advent Technologies Holdings' Chairman and CEO Dr. Vasilis Gregoriou commented, "Today is a milestone day for Advent but also for Greece and Europe. Green HiPo will catalyze a sea-change of operational events within Advent while the project is implemented. Our application was initially submitted in April 2021, and the process for review and due diligence by the EU has been thorough."

Dr. Gregoriou continued adding, "Advent's Green HiPo project will be instrumental in hydrogen generation and clean energy production. Green HiPo demonstrates the commitment by Greece and the EU to rapidly decarbonize power production and to move forward to energy security and independence with hydrogen technologies playing a crucial role."

Advent Technologies is an advanced materials and technology firm based in Boston, Mass. The company engineers, manufactures, and assembles fuel cell systems and critical components that aid in determining the performance of hydrogen fuel cells and other energy systems for applications in the fuel cell and hydrogen technology markets. The company designs and manufactures HT-PEM fuel cells, HT-PEM-based membrane electrode assemblies, membranes, and electrodes that are used in supplying stationary and portable power and green hydrogen for the automotive, aviation, defense, energy storage, marine, oil and gas, and sensor markets.

Advent Technologies started off the day with a market cap of around $59.8 million with approximately 51.6 million shares outstanding. ADN shares opened 150% higher today at $2.90 (+$1.74, +150.0%) over yesterday's $1.16 closing price. The stock has traded today between $2.76 and $4.48 per share and is currently trading at $4.01 (+$2.85, +245.69%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: ADN:NASDAQ, )

US E&P Co. Receives Take-Private Offer

Source: Streetwise Reports   06/15/2022

Continental Resources Inc. shares traded 15% higher to a new 52-week high after the oil and gas company announced it received a non-binding buyout proposal for $70 per share in…

Source: Streetwise Reports   06/15/2022

Continental Resources Inc. shares traded 15% higher to a new 52-week high after the oil and gas company announced it received a non-binding buyout proposal for $70 per share in cash from the firm's largest shareholder Chairman Harold G. Hamm and the Hamm Family Trust.

Top-10 U.S. independent oil producer Continental Resources Inc. (CLR:NYSE), announced yesterday that in a letter addressed to the firm's board of directors, the company's Chairman Harold G. Hamm presented a non-binding cash offer to purchase all of the firm's outstanding common shares not already owned by the Hamm Family.

The proposal outlined that a block of shareholders represented by Harold G. Hamm, the Hamm Family Trust, and other Hamm family members collectively referred to as the "Hamm Family," expressed an interest in acquiring all of the company's remaining outstanding shares for $70.00 per share in cash.

The report mentioned that the $70 per share offer represents about a 9% premium over Continental's closing share price on June 13, 2022, and is 11% above the firm's 30-day volume-weighted, average share price.

Harold G. Hamm noted in the letter to the Board that as was listed in the most recent Form 10-Q report filed with the SEC on May 4, 2022, the Hamm Family together currently owns approximately 299.7 million shares or around 83% of Continental's common stock.

Continental Resources advised that its Board of Directors plans to establish a special committee comprised of independent board members to review and evaluate the offer. To maintain impartiality, it is anticipated that the committee will seek opinions from outside financial and legal advisors to assist in the review process.

The company stated that it is acknowledging receipt of the take-private offer but cautioned its shareholders that it has not yet had an opportunity to carefully review or make any kind of determination or recommendation regarding the proposal, which was just received in the letter dated yesterday, June 13, 2022. The firm reiterated that the proposal represents only an indication of interest by the Hamm Family and is not to be considered as any type of binding commitment to any transaction.

Hamm pointed out in his letter that the price offered equates to a 21% premium over the shares' year-to-date volume-weighted average share price and commented that "it should be noted that Continental's Common Stock has appreciated more than 82% during the last twelve months of trading."

The proposal suggested that if a definitive agreement were to be reached it would be structured in the form of a tender offer for any and all shares of common stock and would not include any financing provisions.

Continental Resources is a major oil and natural gas producer headquartered in Oklahoma City, Okla. The top-10 U.S. independent producer claims that it is the largest leaseholder and producer in the Bakken Shale Play of North Dakota and Montana. The firm also owns significant holdings in the South Central Oklahoma Oil Province (SCOOP) and Sooner Trend Anadarko Canadian Kingfisher (STACK) areas in Oklahoma along with more recently acquired positions in Wyoming's Powder River and Texas' Permian basins.

Continental Resources began the day Tuesday with a market cap of around $23.4 billion with approximately 363.0 million shares outstanding and a short interest of about 1.7%. CLR shares opened 16% higher at $74.88 (+$10.38, +16.09%) over the previous day's $64.50 closing price and reached a new 52-week high price of $75.49. The stock traded between $72.20 and $75.49 per share.

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Disclosures

1) Stephen Hytha wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: CLR:NYSE, )

Oil and Gas E&P to Spin Out Assets

“The market is pricing in very little for the new company, and given our expectations for continued strong oil prices, we believe this is a buying opportunity,” noted a Research Capital Corp. report regarding Pan Orient Energy Corp. Pan Orient Energy C…

"The market is pricing in very little for the new company, and given our expectations for continued strong oil prices, we believe this is a buying opportunity," noted a Research Capital Corp. report regarding Pan Orient Energy Corp.

Pan Orient Energy Corp. (POE:TSX.V) agreed to be taken over, including its Thai assets, for about CA$0.99 per share in a cash consideration by DIALOG Group Berhad subsidiary, reported Research Capital Corp. analyst Bill Newman in a June 14 research note. DIALOG is a Malaysian technical service provider to the oil, gas, and petrochemical industry.

Also, Pan Orient will spin out all of its non-Thailand assets, including its Sawn Lake project and CA$7.1 million (CA$7.1M) of working capital and long-term deposits, into a new entity to be called CanAsia Energy Corp. Current Pan Orient shareholders will own CanAsia and receive one CanAsia share for each Pan Orient share they own.

"At the share price of CA$1.12, the market is pricing in very little for the new company, and given our expectations for continued strong oil prices, we believe this is a buying opportunity," Newman wrote.

In other news, Pan Orient, shifting its focus now to the Sawn Lake heavy oil project in northern Alberta, released an updated independent resource estimate on it. Pan Orient holds Sawn Lake through its 71.8% ownership of Andora Energy, the project operator.

The best estimate indicates a contingent resource of 248,200,000 barrels net to Andora and, thus, 178,200,000 barrels net to Pan Orient. The associated after-tax net present value discounted at 15% is CA$165M for Andora's interest and CA$119M for Pan Orient.

Years ago, in a steam-assisted gravity drainage (SAGD) pilot project, Andora advanced Sawn Lake to steady-state production of 620 barrels per day (620 bbl/d), achieving an instantaneous steam: oil ratio of 2.1.

"The demonstration project proved that the SAGD process works in the Bluesky Formation at Sawn Lake, however, the project was sidelined by low oil prices," Newman explained.

Research Capital is bullish on Sawn Lake and estimates initial production at 1,235 bbl/d, Newman noted.

"Given the relatively significant amount of capital invested to date in the SAGD facilities, the relatively small amount of capital need for the phase development, and our bullish outlook for oil prices, we believe its highly likely that the Swan Lake development will proceed," added Newman.

Because Sawn Lake is early stage, the investment firm values CanAsia at CA$0.32 per share based on an assumed CA$25,000 per flowing barrel of oil, "leaving additional development upside for the investor," wrote Newman.

As for Pan Orient, Research Capital maintains its Buy rating and CA$1.35 per share target price on it.

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Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pan Orient Energy Corp. Click here for important disclosures about sponsor fees. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 

Disclosures for Research Capital Corp., Pan Orient Energy Corp., June 14, 2022

Analyst Certification: I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. 

General Disclosures: The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation ("RCC") are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. 

Potential Conflicts of Interest: All Research Capital Corporation ("RCC") Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.

( Companies Mentioned: POE:TSX.V, )

Junior Picks Up Rio Tinto Uranium Project

Source: Streetwise Reports   06/01/2022

Land position is often the key to not only finding an economic deposit but also ensuring that when you do, it’s all yours. One uranium explorer in the Athabasca Basin just added 732 sq. kilometers to its land package and is looking to dust off some old drill targets and expand its resource base.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB; SC1P; Frankfurt) has an agreement with global diversified miner Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) that would see the commodities giant option the advanced-exploration stage 732.-sq.-km Russell Lake Uranium Project to the junior explorer in exchange for shares, a modest cash payment and some exploration spending requirements.

For a 51% stake, Skyharbour must issue Rio Tinto’s subsidiary, Rio Tinto Exploration Canada Inc., 3,584,014 common shares and CA$508,200 cash and spend about CA$5.8 million on exploration over three years (roughly CA$1.9 million must be spent in the first 18 months). Exploration spending includes a 10% management fee paid to Skyharbour as operator.

The Russell Lake uranium project in the Athabasca Basin.  Source: Skyharbour Resources Ltd.

Another option in the property deal could boost Skyharbour’s stake to 70%, and a third option would provide the chance to own Russell Lake outright — as long as certain criteria are met.

All the claims are in good standing, and the deal is subject to TSX Venture Exchange approval.

A May 20 research report by Red Cloud Securities analyst David Talbot called Skyharbour’s proposed Russell Lake acquisition “very positive” and wrote that the Russell Lake addition “improves Skyharbour’s odds of discovering further high-grade basement or unconformity uranium deposits in the Athabasca Basin.”

Russell Lake is on the eastern side of the Athabasca Basin and sits between Skyharbour’s Moore Uranium project there and Denison Mines’ Wheeler River project on the west side (see map).

Meat in the Sandwich

 

“It’s kind of the meat in the middle of the sandwich. We can now kind of tie it together with Moore Lake as dual flagship properties,” Skyharbour President and CEO Jordan Trimble told Streetwise Reports.

The property comes with some perks. It’s between Cameco Corp.’s (CCO:TSX; CCJ:NYSE) Key Lake mill to the south and MacArthur River — the largest and highest-grade mine in the basin — to the north. A highway runs through the western end of the property, as does a high-voltage power line that provides electricity to the various uranium mines.

Russell Lake also comes with a fully permitted 40-person camp that will serve as Skyharbour’s base of operations once the drills start turning again.

“All of this infrastructure will allow us to go in and drill with much lower drilling costs. And cost inflation has been a big issue in the industry as of late,” Trimble said.

Russell Lake has seen significant historical exploration, including more than 230 drill holes covering more than 95,000 meters. Data from those holes will help Skyharbour geologists form a plan to carry out more targeted drilling based on modern exploration methods.

Trimble says there are more than 35 kilometers of untested conductors on Russell Lake in magnetic lows, which sometimes indicate the type of rocks that host uranium deposits in the Athabasca Basin. Several zones were drill tested and have shown promise.

Perhaps the most promising target for follow-up drilling is the Grayling Zone, where drilling into a 100-meter-thick sub parallel conductor intersected an 800-meter-long discontinuous zone of basement-hosted uranium mineralization.

Drill hole RL-85-07, part of a drill program that occurred more than a decade ago at Grayling, intersected 3.45% U3O8 over 0.3 meter at a depth of 363.2 meters and 0.1% U3O8 over 0.5 meter at a depth of 366.4 meters. The target is open in several directions.

Meanwhile, historical drilling at neighbouring Denison’s M-Zone along trend from the Grayling Zone intersected basement-hosted uranium of 0.70% U3O8­ over 5.8 meters at a depth of 374 meters.

Drilling Wraps Up at Moore Lake

 

Skyharbour’s flagship project is Moore Lake, which it acquired from Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT). Moore Lake is 25 kilometers southwest of Cameco’s McArthur River mine and 15 km northeast along strike of Cameco’s Millennium uranium deposit.

Denison remains Skyharbour’s largest corporate shareholder, and Denison CEO David Cates is a director.

Skyharbour has just finished a 2,500-meter drill program in seven holes, which followed up on the successes of the 2021 fall drilling program in the Maverick East Zone and the Grid 19 target area, as well as at the Viper area on the 4.7-kilometer Maverick Structural Corridor. Assays are pending, with a follow-up program planned for later in the year.

JVs and Other Projects

 

Skyharbour has a joint venture with Orano Canada Inc. at the Preston Project. Orano has earned a 51% interest in the project by spending pre-set amounts on exploration and making cash payments. Skyharbour now owns 24.5% of Preston.

Map of the different uranium projects in the Athabasca Basin in northern Saskatchewan.  Source: Skyharbour Resources Ltd.

And Skyharbour owns 15% of East Preston Project, a joint venture with Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) where assays are pending for over 5,000 meters of drilling.

Skyharbour also has optioned properties to several different partners, including ASX-listed Valor Resources Ltd.. (VAL:ASX) at the Hook Lake Uranium Project, Basin Uranium Corp. on the Mann Lake Uranium Project, and Medaro Mining Corp. on the Yurchison Project. All of the projects are in the Athabasca Basin.

Partner company Basin Uranium recently wrapped up its phase one drill program (the first since 2007) at Mann Lake, which consisted of five holes totalling 3,503 meters. The unconformity (typically where uranium mineralization is found in the Athabasca Basin) was intersected between 608 meters to 651 meters downhole in all holes, and several holes intersected uranium dominant, anomalous radioactive intervals in the basement rocks.

The second phase of drilling will be about the same size and is planned for the fall. Gravity and airborne geophysical surveys are set to begin in early June. Results from the first drill holes and the geophysical work will help Basin Uranium and Skyharbour determine the next set of drill targets.

Furthermore, Skyharbour owns 100% of the South Falcon Point Uranium Project on the eastern edge of the basin. The project contains a National Instrument 43-101-compliant resource of 7 million lb U3O8 at 0.03% and 5.3 million lb ThO2 at 0.023%.

Toronto-based Red Cloud Securities gives Skyharbour a “speculative buy” rating and a 12-month target price of CA$0.85. The consensus 12-month target using the Institutional Brokers’ Estimate System (IBES) is CA$1.01.

Management owns about 2.8%, while Seoul, South Korea-based Mirae Global Investments Co. owns 4.93%. Sprott Asset Management owns 4.64%.

Fully diluted, Skyharbour has 167.5 million shares outstanding. Shares in the junior have traded between CA$0.87 and CA$0.30 over the previous year.

[SMNLINSERT] 

Disclosures:

1) Brian Sylvester compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He and members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Skyharbour Resources Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd., and Azincourt Energy Inc., companies mentioned in this article.

( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQB; SC1P; Frankfurt,
)

Source: Streetwise Reports   06/01/2022

Land position is often the key to not only finding an economic deposit but also ensuring that when you do, it’s all yours. One uranium explorer in the Athabasca Basin just added 732 sq. kilometers to its land package and is looking to dust off some old drill targets and expand its resource base.

Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB; SC1P; Frankfurt) has an agreement with global diversified miner Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) that would see the commodities giant option the advanced-exploration stage 732.-sq.-km Russell Lake Uranium Project to the junior explorer in exchange for shares, a modest cash payment and some exploration spending requirements.

For a 51% stake, Skyharbour must issue Rio Tinto’s subsidiary, Rio Tinto Exploration Canada Inc., 3,584,014 common shares and CA$508,200 cash and spend about CA$5.8 million on exploration over three years (roughly CA$1.9 million must be spent in the first 18 months). Exploration spending includes a 10% management fee paid to Skyharbour as operator.

The Russell Lake uranium project in the Athabasca Basin.  Source: Skyharbour Resources Ltd.

Another option in the property deal could boost Skyharbour’s stake to 70%, and a third option would provide the chance to own Russell Lake outright — as long as certain criteria are met.

All the claims are in good standing, and the deal is subject to TSX Venture Exchange approval.

A May 20 research report by Red Cloud Securities analyst David Talbot called Skyharbour’s proposed Russell Lake acquisition “very positive” and wrote that the Russell Lake addition “improves Skyharbour’s odds of discovering further high-grade basement or unconformity uranium deposits in the Athabasca Basin.”

Russell Lake is on the eastern side of the Athabasca Basin and sits between Skyharbour’s Moore Uranium project there and Denison Mines’ Wheeler River project on the west side (see map).

Meat in the Sandwich

 

“It's kind of the meat in the middle of the sandwich. We can now kind of tie it together with Moore Lake as dual flagship properties,” Skyharbour President and CEO Jordan Trimble told Streetwise Reports.

The property comes with some perks. It’s between Cameco Corp.'s (CCO:TSX; CCJ:NYSE) Key Lake mill to the south and MacArthur River — the largest and highest-grade mine in the basin — to the north. A highway runs through the western end of the property, as does a high-voltage power line that provides electricity to the various uranium mines.

Russell Lake also comes with a fully permitted 40-person camp that will serve as Skyharbour’s base of operations once the drills start turning again.

“All of this infrastructure will allow us to go in and drill with much lower drilling costs. And cost inflation has been a big issue in the industry as of late,” Trimble said.

Russell Lake has seen significant historical exploration, including more than 230 drill holes covering more than 95,000 meters. Data from those holes will help Skyharbour geologists form a plan to carry out more targeted drilling based on modern exploration methods.

Trimble says there are more than 35 kilometers of untested conductors on Russell Lake in magnetic lows, which sometimes indicate the type of rocks that host uranium deposits in the Athabasca Basin. Several zones were drill tested and have shown promise.

Perhaps the most promising target for follow-up drilling is the Grayling Zone, where drilling into a 100-meter-thick sub parallel conductor intersected an 800-meter-long discontinuous zone of basement-hosted uranium mineralization.

Drill hole RL-85-07, part of a drill program that occurred more than a decade ago at Grayling, intersected 3.45% U3O8 over 0.3 meter at a depth of 363.2 meters and 0.1% U3O8 over 0.5 meter at a depth of 366.4 meters. The target is open in several directions.

Meanwhile, historical drilling at neighbouring Denison’s M-Zone along trend from the Grayling Zone intersected basement-hosted uranium of 0.70% U3O8­ over 5.8 meters at a depth of 374 meters.

Drilling Wraps Up at Moore Lake

 

Skyharbour’s flagship project is Moore Lake, which it acquired from Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT). Moore Lake is 25 kilometers southwest of Cameco’s McArthur River mine and 15 km northeast along strike of Cameco's Millennium uranium deposit.

Denison remains Skyharbour’s largest corporate shareholder, and Denison CEO David Cates is a director.

Skyharbour has just finished a 2,500-meter drill program in seven holes, which followed up on the successes of the 2021 fall drilling program in the Maverick East Zone and the Grid 19 target area, as well as at the Viper area on the 4.7-kilometer Maverick Structural Corridor. Assays are pending, with a follow-up program planned for later in the year.

JVs and Other Projects

 

Skyharbour has a joint venture with Orano Canada Inc. at the Preston Project. Orano has earned a 51% interest in the project by spending pre-set amounts on exploration and making cash payments. Skyharbour now owns 24.5% of Preston.

Map of the different uranium projects in the Athabasca Basin in northern Saskatchewan.  Source: Skyharbour Resources Ltd.

And Skyharbour owns 15% of East Preston Project, a joint venture with Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) where assays are pending for over 5,000 meters of drilling.

Skyharbour also has optioned properties to several different partners, including ASX-listed Valor Resources Ltd.. (VAL:ASX) at the Hook Lake Uranium Project, Basin Uranium Corp. on the Mann Lake Uranium Project, and Medaro Mining Corp. on the Yurchison Project. All of the projects are in the Athabasca Basin.

Partner company Basin Uranium recently wrapped up its phase one drill program (the first since 2007) at Mann Lake, which consisted of five holes totalling 3,503 meters. The unconformity (typically where uranium mineralization is found in the Athabasca Basin) was intersected between 608 meters to 651 meters downhole in all holes, and several holes intersected uranium dominant, anomalous radioactive intervals in the basement rocks.

The second phase of drilling will be about the same size and is planned for the fall. Gravity and airborne geophysical surveys are set to begin in early June. Results from the first drill holes and the geophysical work will help Basin Uranium and Skyharbour determine the next set of drill targets.

Furthermore, Skyharbour owns 100% of the South Falcon Point Uranium Project on the eastern edge of the basin. The project contains a National Instrument 43-101-compliant resource of 7 million lb U3O8 at 0.03% and 5.3 million lb ThO2 at 0.023%.

Toronto-based Red Cloud Securities gives Skyharbour a “speculative buy” rating and a 12-month target price of CA$0.85. The consensus 12-month target using the Institutional Brokers' Estimate System (IBES) is CA$1.01.

Management owns about 2.8%, while Seoul, South Korea-based Mirae Global Investments Co. owns 4.93%. Sprott Asset Management owns 4.64%.

Fully diluted, Skyharbour has 167.5 million shares outstanding. Shares in the junior have traded between CA$0.87 and CA$0.30 over the previous year.

[SMNLINSERT] 

Disclosures:

1) Brian Sylvester compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He and members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Skyharbour Resources Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 
3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd., and Azincourt Energy Inc., companies mentioned in this article.

( Companies Mentioned: SYH:TSX.V; SYHBF:OTCQB; SC1P; Frankfurt, )

Analyst Has 4 Picks to Power EVs, Your Portfolio

Source: Streetwise Reports   06/01/2022

Everything in the future seems like it will run on batteries. Here are some smart picks to grow your money along with the industry, according to one analyst.The world is electr…

Source: Streetwise Reports   06/01/2022

Everything in the future seems like it will run on batteries. Here are some smart picks to grow your money along with the industry, according to one analyst.

The world is electrifying its cars, and powering that revolution is a series of metals and elements increasingly in demand, creating big opportunities for shrewd investors, said Chris Temple, editor of the National Investor.

More than 6.6 million electric vehicles (EVs) were sold worldwide last year, and that number is expected to jump to 10.5 million this year, Forbes reported. Estimates put the number as high as 40 million sold per year by 2030. Manufacturers have agreed to end the sale of cars with gasoline engines by 2035.

Those numbers are driving demand for metals important to batteries, like lithium, nickel, and cobalt. Rare earth elements (REEs) used in making permanent magnet motors for EVs — as well as for purifying water, building MRIs, and in weapons research — are also needed.

The “global lithium demand is expected to be resilient this year and beyond,” Rick Mills wrote May 18 in his newsletter, Ahead of the Herd. “When measured against a tight lithium market, the outlook for the lightweight metal is good.”

While the price of a metric tonne of lithium carbonate has risen above $60,000 — up from $42,000 last year — Goldman Sachs predicted there will be a sharp correction and possibly a big drop in prices in 2023.

But the need for batteries and battery metals will not go away. Temple said the sector still offers long-term opportunities for investors. He shared with Streetwise Reports his top four picks for getting ahead in the space.

Piedmont Lithium

 

North Carolina explorer Piedmont Lithium Ltd. (PLL:NASDAQ; PLL:ASX) made a splash in 2020 when it signed a lithium supply deal with Tesla Inc., sending its share price soaring tenfold. The company is still waiting for a permit for the project. A decision could come by August.

North Carolina is home to one of the most important lithium deposits in the United States. The Carolina Tin-Spodumene Belt is about 25 miles long and 2 miles wide and was the western world’s largest lithium producer from the 1950s to the 1980s, the company said.

Most of the world’s lithium currently comes from Australia and South America, and China controls 83% of the processed metal. Piedmont said it is targeting the production of 160,000 tons per year of spodumene concentrate that will be turned into 22,700 tons per year of battery-grade lithium hydroxide.

Piedmont also owns assets in Quebec and Ghana.

Temple said he thinks there’s still room for growth for the stock.

“Even though they’ve had a monster run,” he said of the price jump after the Tesla deal, “when they get properly appreciated and re-rated by the market, people can still make money on that stock.”

Piedmont has a market cap of $1.01 billion with 17.94 million shares outstanding and trades in a 52-week range of $79.99 and $40.65.

Frontier Lithium

 

In Ontario, there is what Temple called the “enormous” PAK project held by Frontier Lithium Inc. (FL:TSX.V; LITOF:OTCQX; HL2:FRA)

A preliminary economic assessment (PEA) released earlier this year by the company found that its PAK and Spark lithium deposits would generate $8.5 billion over 26 years, and 556,200 tonnes of battery-quality lithium hydroxide would be processed over 24 years.

Temple said Piedmont and Frontier’s hard rock lithium reserves will enable the resources to be extracted with minimal impact to the area.

“The one that Piedmont has in North Carolina and the one that Frontier has in Ontario are attractive because they have, in relative terms, a very small part of the kind of environmental footprint that (some other mines) have,” Temple said.

Frontier has a total of 211 million shares outstanding and a market cap of CA$650.17 million. It trades in a 52-week range of CA$3.89 and CA$0.73.

FPX Nickel Corp.

 

Vancouver’s FPX Nickel Corp. (FPX:TSX.V; FPOCF:OTC) goes after another important battery metal, nickel. FPX is known for its Baptiste project, located in its 100%-owned Decar Nickel District. It is projected to be among the world’s 10 largest by annual output and will have a low stripping ratio for open pit mining. Its 63% nickel with low impurities will be suitable for direct feed to stainless steel or for the EV battery market.

FPX recently announced the results of its summer 2021 drilling at Baptiste, and the third-highest grading near-surface interval ever intersected there: 254.9 meters grading 0.151% nickel from 48.1 meters downhole, including 157.3 meters grading 0.154% nickel.

A 2020 PEA found 1.5 billion tonnes of Indicated and Inferred material averaging 0.120% nickel over the project’s 35-year mine life, the company said.

It’s not just Temple who is talking about this junior explorer. James Kwantes, editor of the newsletter Resource Opportunities, said the company is nearing the point where it will “land on the radar of larger numbers of investors.

“I also think the project will become a mine, and a very large one,” he wrote.

FPX has a market cap of CA$123.04 million, 215.86 million shares outstanding, and trades on a range of CA$0.96 and CA$0.42 over 52 weeks.

IperionX

 

The same man, Taso Arima, cofounded both Piedmont and IperionX.

Charlotte, N.C.-based IperionX Ltd. (TAOFF:OTC) controls the largest source of titanium in the U.S., the Titan Project in west Tennessee. The lightweight metal is invaluable to the defense industry, and IperionX hopes to produce 10,000 tonnes per year of it within five years and go after what the company said is a $480 billion per year market for stainless steel and aluminum.

Russia and China control more than 70 percent of the global capacity for titanium, the company said.

“We have millions of tons, if not potentially billions of tons, of titanium mineral concentrates in this country,” Arima told Temple in a video interview. “We can do it far more sustainably than companies have in the past.”

But an added bonus at the site is a “large amount” of the REEs neodymium, praseodymium, dysprosium, and terbium. The company is partnering with Energy Fuels, which has processing facilities in Utah, to get those resources into the magnet supply chain for EVs in the U.S.

About 60% of the global production of REEs is centered in China, which accounts for more than 85% of the processing capacity. The U.S. government has taken notice and announced a $35 million Department of Defense grant to MP Materials Corp. to separate and process REEs at its California facility. The company is also investing $700 million to create more than 350 jobs in the permanent magnet sector by 2024.

Titanium and REEs are big on the national agenda, Arima said.

“But it takes time to get that support,” he added.

IperionX has 140.29 million shares outstanding and a market cap of $154.32 million. It trades in a 52-week range of $2 and $0.53.

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Disclosures

1) Steve Sobek compiled this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Frontier Lithium. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Frontier Lithium, a company mentioned in this article.

( Companies Mentioned: FPX:TSX.V; FPOCF:OTC, FL:TSX.V; LITOF:OTCQX; HL2:FRA, TAOFF:OTC, PLL:NASDAQ; PLL:ASX, )

Smart Window Maker Posts Record FY21 Revenue

Source: Streetwise Reports   06/01/2022

View Inc. shares traded 33% higher after the company reported FY/21 financial results highlighting a 125% YoY increase in revenue along with expectations for even higher growth…

Source: Streetwise Reports   06/01/2022

View Inc. shares traded 33% higher after the company reported FY/21 financial results highlighting a 125% YoY increase in revenue along with expectations for even higher growth in FY/22.

After U.S. markets closed yesterday, smart buildings platform and technologies firm View Inc. View Inc. (VIEW:NASDAQ), which manufactures Smart Windows that employ artificial intelligence (AI) to automatically adjust to light and the surrounding environment to control heat and glare without the need for blinds, announced financial and operating results for fiscal year 2021 ended December 31, 2021.

The company's CEO Dr. Rao Mulpuri commented, "2021 was a pivotal year for View…At the beginning of the year, we said that we would more than double revenues and we did just that, finishing the year with revenues of $74 million and 125% growth from the prior year."

"The restatement of our financials is a challenging process with many lessons learned and we are building the foundations needed to emerge stronger as a company…The real estate industry is going through a once-in-a-lifetime change driven by sustainability, user experience, human health, and digital transformation. View is committed to this journey, and we intend to play a leadership role in driving this transformation," CEO Mulpuri added.

View Inc. advised that the company has now fully completed the investigation undertaken by its Audit Committee. As the firm previously reported, the investigation was related to warranty accrual issues. The company noted that as this process is complete it is reporting FY/21 financial results and is restating prior years' results. The firm noted that except for the warranty-related accruals, no other material misstatements were identified by the company.

View Inc. provided details of the adjustments and indicated that warranty-related accruals were $42 million in FY/21 and advised that FY/20 and FY/19 warranty-related accruals were revised upward to $48 million and $53 million, up respectively from $23 million and $25 million. The firm noted that these adjustments were within the ranges it disclosed in November 2021.

The company reported that total revenue in FY/21 increased by 125% to $74.0 million, compared to $32.9 million in FY/20. View Inc. stated that the revenues achieved in FY/21 greatly exceeded its previous guidance of $65-70 million. The firm attributed the growth to increased customer demand and the introduction of its View Smart Building Platform and View Smart Building Technologies.

For FY/21, the company reported that it posted a net loss of 343.0 million, or a net loss of $1.97 per basic and diluted share, versus a net loss of 249.7 million, or a net loss of $148.81 per basic and diluted share in FY/20.

The firm pointed out that it successfully launched its Smart Building Platform in 2021. The company explained that "the View platform is a full performance solution that includes a converged secure network infrastructure, Smart Glass panel, Smart Building Technologies, and end-to-end deployment services."

The company noted that it generated $28.7 million in revenue from its in Smart Building Platform during FY/21. In addition, it registered $41.7 million in revenues from its Smart Glass products and $3.6 million in revenues from Smart Building Technologies.

Importantly the company explained that as it previously disclosed, it will disclose in its upcoming SEC filings "substantial doubt about the company's ability to continue as a going concern, as the company does not currently have adequate financial resources to fund its forecasted operating costs and meet its obligations for at least twelve months from the expected issuance date of its 2021 Annual Report on Form 10-K."

The View mentioned that it plans to raise additional capital and reduce cash burn by growing revenues and improving operating efficiencies and leveraging fixed costs.

The company offered some forward guidance and advised that for FY/22 it expects revenues of $100-110 million. The View indicated that the projected increase in revenues is due to "continued momentum in volume growth, strong ASPs and increased contribution from the View Smart Building Platform and Smart Building Technologies products."

The firm highlighted numerous sales and accomplishments during FY/21. The company said that as it announced on December 15, 2021, its smart windows were installed at Bozeman Yellowstone International Airport (BZN). This comes after the firm's View Smart Windows installations at several of the U.S.'s largest airports in Boston, Dallas-Fort Worth, New York, Orlando, and many others.

Some other notable installation during FY/21 included a 17-story office tower in Kelowna, B.C., a 370,000 sq. ft. office building, a new mixed-use apartment residence in Kirkland, Wash., a 200,000 sq. ft., 18-story tower residential development in Ont., Canada, a new 304,394 sq. ft. luxury multi-family project Toronto, Ont., a 235,000 sq. ft., Class-A office building in Denver, Colo., a newly-renovated, 530,000 sq. ft., 40-story office tower in New York City, and another 665,000 sq. ft., 27-story office tower.

View is a technology company based in Milpitas, Calif. that design and manufactures Smart Windows that utilize AI to automatically adjust heat, glare, and the flow of light in response to the sun, which in turn eliminates the need for blinds and improves natural light. The company's technologies help transform buildings' lighting environment and reduce energy consumption, carbon emissions and also serve to generate additional revenue for building owners. The View's cloud-connected smart building platforms have been installed in over 40 million sq. ft. of office buildings, including, airports, hospitals, hotels, schools, and multi-family dwellings.

View Inc. began the day with a market cap of around $291.6 million with approximately 229.6 million shares outstanding. View Inc.'s shares opened 18% higher today at $1.50 (+$0.23, +18.11%) over yesterday's $1.27 closing price. The stock has traded today between $1.36 and $1.98 per share and closed for trading at $1.69 (+$0.42, +33.07%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: VIEW:NASDAQ, )

Clean Tech Co. Buys LFP Cathode Producer for CA$10.25M

Source: Streetwise Reports   05/25/2022

Shares of Nano One Materials Corp. traded 46% higher after the company reported it has agreed to acquire 100% of the shares of Québec lithium iron phosphate cathode material manufacturer Johnson Matthey Battery Materials Ltd. for CA$10.25 million.

Clean energy technology company Nano One Materials Corp. (NANO:TSX), which is engaged in producing cathode powders and materials for use in lithium-ion batteries, today announced that “it has entered into a binding agreement to acquire all of the outstanding shares of Johnson Matthey (JM) Battery Materials Ltd. (JMBM Canada) for approximately CA$10.25 million. “

Under the terms of the agreement, Nano One Materials will acquire all of Johnson Matthey Battery Materials’ (JMBM Canada) assets including equipment, facilities, and land along with its highly experienced employees, which together have greater than 360 years of combined scale-up and commercial production know-how.

JMBM Canada’s lithium iron phosphate (LFP) cathode material plant is located in Candiac, Québec and is capable of producing 2,400 tonnes of LFP cathode material yearly for use in making lithium-ion batteries for automotive and non-automotive applications. The 400,000 sq. ft. property is well suited to server Nano One’s process needs and offers significant room for expansion.

The company advised that the acquisition is fully funded and that the transaction is expected to close prior to the end of this calendar year, subject to working capital adjustments, ordinary closing conditions and the fulfillment of contractual commitments by Johnson Matthey.

Nano One Materials CEO Dan Blondal commented, “The rapidly expanding need for responsibly produced cathode materials in North America presents an opportunity for Nano One to deploy its technology and become a leader.”

“The facility is in Greater Montreal and strategically located in proximity to employees and their families, international airports, major port facilities and is a critical link in the mines-to-mobility initiative. This complements Nano One’s technology innovation center and team in Burnaby, B.C., and is a perfect base for the advancement, expansion and acceleration of our commercialization strategy,” Blondal added.

Johnson Matthey Battery Materials’ CEO Liam Condon remarked, “We have worked with Nano One on a number of projects over the last year and having seen their innovations, we believe they have the potential to develop the Candiac site in the best way possible. We remain at the Candiac site until the end of the year and are fully committed to serving the needs of our customers.”

JMBM Canada is based in the Montreal metropolitan area and focuses on improving performance, functionality and safety of its client’s products in areas with high global impact such as low emission transport, chemical processing and efficient natural resource utilization.

Nano One is a Vancouver, B.C.-based technology company which concentrates its efforts on production of cathode powders for use in lithium-ion batteries. The firm claimed that it has developed and patented “a scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials.” The firm’s unique materials are engineered to add value to electric vehicles and grid storage batteries in order to address the needs for a zero-emission future.

Nano One started the day with a market cap of around $147.1 million with approximately 95.55 million shares outstanding. NNOMF shares opened 16.7% higher today at $1.4021 (+$0.2025, +16.66%) over yesterday’s $1.1996 closing price. The stock has traded today between $1.3494 and $1.81.74 per share and closed for trading at $1.755 (+$0.5538, +46.1%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: NANO:TSX,
)

Source: Streetwise Reports   05/25/2022

Shares of Nano One Materials Corp. traded 46% higher after the company reported it has agreed to acquire 100% of the shares of Québec lithium iron phosphate cathode material manufacturer Johnson Matthey Battery Materials Ltd. for CA$10.25 million.

Clean energy technology company Nano One Materials Corp. (NANO:TSX), which is engaged in producing cathode powders and materials for use in lithium-ion batteries, today announced that "it has entered into a binding agreement to acquire all of the outstanding shares of Johnson Matthey (JM) Battery Materials Ltd. (JMBM Canada) for approximately CA$10.25 million. "

Under the terms of the agreement, Nano One Materials will acquire all of Johnson Matthey Battery Materials' (JMBM Canada) assets including equipment, facilities, and land along with its highly experienced employees, which together have greater than 360 years of combined scale-up and commercial production know-how.

JMBM Canada's lithium iron phosphate (LFP) cathode material plant is located in Candiac, Québec and is capable of producing 2,400 tonnes of LFP cathode material yearly for use in making lithium-ion batteries for automotive and non-automotive applications. The 400,000 sq. ft. property is well suited to server Nano One's process needs and offers significant room for expansion.

The company advised that the acquisition is fully funded and that the transaction is expected to close prior to the end of this calendar year, subject to working capital adjustments, ordinary closing conditions and the fulfillment of contractual commitments by Johnson Matthey.

Nano One Materials CEO Dan Blondal commented, "The rapidly expanding need for responsibly produced cathode materials in North America presents an opportunity for Nano One to deploy its technology and become a leader."

"The facility is in Greater Montreal and strategically located in proximity to employees and their families, international airports, major port facilities and is a critical link in the mines-to-mobility initiative. This complements Nano One's technology innovation center and team in Burnaby, B.C., and is a perfect base for the advancement, expansion and acceleration of our commercialization strategy," Blondal added.

Johnson Matthey Battery Materials' CEO Liam Condon remarked, "We have worked with Nano One on a number of projects over the last year and having seen their innovations, we believe they have the potential to develop the Candiac site in the best way possible. We remain at the Candiac site until the end of the year and are fully committed to serving the needs of our customers."

JMBM Canada is based in the Montreal metropolitan area and focuses on improving performance, functionality and safety of its client's products in areas with high global impact such as low emission transport, chemical processing and efficient natural resource utilization.

Nano One is a Vancouver, B.C.-based technology company which concentrates its efforts on production of cathode powders for use in lithium-ion batteries. The firm claimed that it has developed and patented "a scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials." The firm's unique materials are engineered to add value to electric vehicles and grid storage batteries in order to address the needs for a zero-emission future.

Nano One started the day with a market cap of around $147.1 million with approximately 95.55 million shares outstanding. NNOMF shares opened 16.7% higher today at $1.4021 (+$0.2025, +16.66%) over yesterday's $1.1996 closing price. The stock has traded today between $1.3494 and $1.81.74 per share and closed for trading at $1.755 (+$0.5538, +46.1%).

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: NANO:TSX, )

Record Natural Gas Prices Helping Co. to Become Cash Cow as Big Oil Rakes in Billions

Source: Kerry Lutz   05/18/2022

With Europe going through a major energy crisis, Rystad Energy, a respected energy consulting group, has predicted that European gas prices could triple again. Expert Kerry Lutz review…

Source: Kerry Lutz   05/18/2022

With Europe going through a major energy crisis, Rystad Energy, a respected energy consulting group, has predicted that European gas prices could triple again. Expert Kerry Lutz reviews how Trillion Energy could be the one to fill that void.

Tightening energy supplies and geopolitical tensions have led to greatly increased worldwide natural gas and oil prices, making investors the only winners. Soaring European energy prices are hitting households and energy providers. Since the fall of 2021, energy prices have been increasing steadily and have been pushed even higher by the Russian - Ukraine War. The cost-of-living crisis is not going away anytime soon and promises to get even worse next winter. Paying the energy bill has become a challenge to millions of Europeans, all while energy companies are making billions.

 [Trillion] is at the forefront of the race to replace Russian energy supplies in Europe and Eurasia, where a once-in-a-lifetime fundamental paradigm shift in the region's energy supply chain is taking place.

 

According to Keith Anderson, chief executive at one of the UK’s largest providers, this fall the crisis “is going to get truly horrific.” Demand will spike during the heating season in what could be a colder than average winter.

The European Union is close to embargoing Russian oil as part of its sixth sanctions package. Hold-outs Hungary and Slovakia have until 2024 to replace their oil suppliers.

Bulgaria has threatened to veto the embargo unless it also receives an exemption. Whatever the EU may decide, Germany intends to stop importing Russian oil and significantly curtail gas imports. Ukraine recently cut off Russian gas flows to Europe, citing a force majeure provision in its pipeline contract, thus driving May 2022 prices higher. It is no wonder that Rystad Energy, a respected energy consulting group, predicted European gas prices could triple again — citing a perfect storm of events.

Thanks to the geopolitically induced rally, Big Oil is raking in huge profits. BP booked a profit of $6.2 billion for the first quarter of 2022, and Exxon booked a profit of $5.5 billion for Q1 2022. Conoco reported profits of $5.76 billion, and Shell booked $9.13 billion in profits for the same period. The major energy companies are using these profits to buy back their shares, a trend that began during the COVID pandemic. 

With a few small exceptions, European natural gas producers are woefully ill-equipped the meet the demand. One exception is Trillion Energy International Inc. (TCF:CSE; TRLEF:OTC; 3P2N:FSE), which presents a unique opportunity to investors as it is perfectly positioned to capitalize on the ongoing energy crisis. Trillion produces gas and oil in Turkey, where natural gas prices have rocketed from $6 to $18 per mcf, in less than a year and up 40% in 2022 alone. It is about to put a major gas field back online.

Trillion has a ready-built large natural gas facility and pipeline infrastructure in place, which according to CEO Arthur Halleran has a replacement value that could exceed $500 million. Trillion’s SASB Black Sea shallow water natural gas field holds large quantities of urgently needed natural gas that will help supply a region experiencing acute shortages and high prices.

Production costs for the SASB field are expected to be sub-US$1 per mcf + 12.5% royalty over a planned 17 well development, giving Trillion massive margins at the current $18/MCF gas price. Netbacks like these are rarely seen and soon Trillion could be raking in cash just like the majors.

In recent oversubscribed financing, Trillion raised much of the cash needed to kick-start the project. Investors participated enthusiastically; no doubt driven by the company’s unique position in the resurgent energy sector.

Trillion’s aggressive multi-well gas drill program starts in Q3, with production revenues expected to follow shortly thereafter. CEO Art Halleran recently visited the regional project office to propel the project forward, targeting July 2022 to have the contracted rig onsite. All supplies required to spud the first wells are on order.

A well-known world-class oilfield services giant has been retained to oversee the engineering of its drilling program.

Thus, the company is at the forefront of the race to replace Russian energy supplies in Europe and Eurasia, where a once-in-a-lifetime fundamental paradigm shift in the region's energy supply chain is taking place.

Trillion aims to drill over 17 wells over the next two years, bringing one new well into production after another. It's a bold plan that will escalate cash flow as each well comes online.

According to CEO Halleran, "We are using best in class engineering and drilling support services at SASB. Using long reach drilling technology, directional drilling tools, and state of the art engineering, we will lower our capital costs for bringing the new wells into production and increases the anticipated returns."

When the SASB gas field is fully developed, at its peak, Trillion’s estimated cash flow could reach $180 million per year; many multiples of the company’s current share price.

The company received third-party engineering reports for its reserves and resources prepared by GLJ Inc and when combined, estimated the following:

 

Item

Class

BCF

NPV10% $US Million(2)

Class

Bcf

NPV10% $US Million

Discovered non-producing 

2P

20.2

$75.7 m

3P

31.4

$129.2 m

Development prospects, risked 

Medium estimate

23

$93.6 m

High Estimate

36.4

$156.0 m

TOTAL

 

40.3

US $169.m

 

62.4

US $285 m

 

 

 

CA $216 m

 

 

CA $367 m

 

From the above chart, representing the current work program, the combined net present value discounted at 10% (“NPV10%”) for the current 17 well work program (2P gas reserves plus risked medium case estimate of gas prospects is $169.3 million (CA$216m) up from $138.64). The combined net present value discounted at 10% (“NPV10%”) for the 3P Reserves plus high estimates for prospects, the NPV10% USD is USD $288m (CA$367m) up from $243.3m.

Actual cash flows could be much higher than the assessment shows, if current gas prices hold up. In April 2022 natural gas hit $18 /MCF, far exceeding the modest $8-9/MCF sales prices used in the reports.

Trillion has more than one European natural gas project on the burner. Russia's late April arbitrary cut-off of Bulgaria’s natural gas supplies caused an economic crisis. The company then announced plans to accelerate its Bulgarian project's development.

Sky-high natural gas prices have improved the Bulgarian project economics too much to be ignored. Bulgaria's current natural gas price is $22/mcf, indicating that this project could have enormous upside potential. Trillion is currently in discussions to prepare the necessary environmental reports to commence drilling work on the field; it intends to drill five new wells.

On the Bulgarian gas property, a 2014 preliminary survey by engineering firm Netherland Sewell & Associates estimated that undiscovered gas resources amounted to some 1.15 billion cubic feet (32.6 million cu m), according to best estimates.

Undiscovered Original Gas in Place -Billion Cubic feet (Bcf)

Prospective Formations

Low Estimate

Best Estimate

High Estimate

Macedonka

220.0

520.8

702.1

Mogilishte

214.6

624.7

1,082.0

TOTAL

434.6

1,145.5

1,784.1

Unrisked Gross (100%) Prospective Gas Resources (Bcf)

Prospective Formations

Low Estimate

Best Estimate

High Estimate

Macedonka

66.0

260.4

491.5

Mogilishte

64.4

312.4

757.4

TOTAL

130.4

572.8

1,248.9

 

Trillion is pursuing its Black Sea and Bulgarian projects with renewed vigor to capitalize on the current favorable environment for oil and gas producers. Fresh from its recent financing, it now has the cash and resources to commence drilling on these projects, along with the infrastructure needed for distribution in Turkey.

Once production starts, Trillion expects to generate substantial cash flows which could likely result in large shareholder returns, all while providing much-needed scarce energy to its partners and customers.

Kerry Lutz is the founder of the Financial Survival Network, whose mission is to help investors prosper and thrive in the new economy.

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Disclosures

1) Kerry Lutz: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Trillion Energy International Inc. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: Trillion Energy International Inc.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 

( Companies Mentioned: TCF:CSE; TRLEF:OTC; 3P2N:FSE, )