Natural Gas Supplier Buys Energy Infrastructure Firm

Source: Streetwise Reports   01/24/2022

Shares of full-service oil & gas solutions provider Exterran Corp. traded 60% higher after the company reported it agreed to be acquired by Enerflex Ltd. of Canada in an all-stock transaction for US$735 million.

Prior to the open of U.S. markets today, Texas midstream infrastructure
solutions firm Exterran Corp. (EXTN:NYSE), which offers products and turnkey services to oil & gas, water and power services companies and Calgary-based Enerflex Ltd. (EFX:TSX), supplier of natural gas compression, oil and gas processing and other equipment, announced that the two companies entered into an agreement combining the companies’ operations in order to create a premier integrated global energy infrastructure provider.

The companies advised that under the terms of the merger agreement, “Enerflex will acquire all of the outstanding common stock of Exterran on the basis of 1.021 Enerflex common shares for each outstanding share of common stock of Exterran.” The firm noted that after the transaction is completed, the newly merged Enerflex will have about 124 million outstanding common shares with an enterprise value of around US$1.5 billion.

The report indicated that the all-stock transaction sets the value for Exterran at approximately US$735 million, which according to the news release is 18% higher than Exterran’s enterprise value as of Friday, January 21, 2022.

After the transaction has been finalized, existing owners of Exterran will own approximately 27.5% of all Enerflex common shares outstanding with current Enerflex shareholders owning the remaining 72.5%.

Enerflex will continue to be headquartered in Calgary, Alta. Canada and operate under the same name following the completion of the acquisition. The report noted that Enerflex President, CEO and Director Marc Rossiter will continue to serve in the same capacity and will be tasked with overseeing all aspects of integration. The firm’s share will continue to trade on the Toronto Stock Exchange though the firm mentioned that it plans apply for listing in the U.S. on either the NYSE or the NASDAQ.

Enerflex Ltd.’s President and CEO Marc Rossiter stated, “This is an exciting day in the history of our companies. The transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform…Enerflex and Exterran each have a long history of global expertise in the delivery of modular energy solutions. Together, we are more efficient and better positioned in global capital markets. The Transaction will improve our ability to partner with an expanded set of customers to solve their growing energy infrastructure challenges with integrity, creativity, commitment, and success.”

Exterran Corp.’s President and CEO Andrew Way commented, “We are excited about the ability to create shareholder value through this transaction and improving our product and service offering. The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services.”

The report indicated that combining the two companies will help form a premier integrated global energy infrastructure firm. The companies were said to have highly complementary product lines and geographies which together will enhance efficiencies, scale and expanded product and service offerings for customers.

The combined entity is expected to have a well-balanced geographic presence with about 25-35% of revenues being derived fairly evenly between North America, the Middle East and Latin America. The company stated that it expects that after 12-18 months it will be able to achieve annual cost savings of US$40 million.

The report indicated that each company’s respective Board of Directors has already unanimously approved the transaction and recommends that shareholders vote in favor of the transaction. The companies advised that the transaction is expected to close in Q2/22 or Q3/22 subject to approval by both Exterran’s and Enerflex’s shareholders. In addition, the merger remains subject to ordinary closing conditions, TSX and U.S. exchange requirements and necessary government regulatory approvals.

Enerflex’s CEO commented on the rationale for the merger stating, “the timing is right for this transaction as it strengthens its positioning while global energy markets recover from the pandemic-induced lows. Natural gas is a transition fuel that, together with renewables, will lead the world toward a lower carbon future.”

Enerflex is based in Calgary, Alta. and was described as “a single source supplier of natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment – plus related engineering and mechanical service expertise.” The company is engaged in the design, engineering, manufacture, construction, operation and servicing of hydrocarbon handling systems. The firm employs around 2,000 people worldwide.

Exterran is headquartered in Houston, Tex. and operates in around 25 countries. The company is a global systems and process company that offers services and products for the oil, gas, water and power industries. The company listed that it provides natural gas processing and treatment and compression products and critical midstream infrastructure solutions to its global customers

Exterran Corp. started the day with a market cap of around $99.9 million with approximately 33.3 million shares outstanding and a short interest of about 5.6%. EXTN shares opened more than 60% higher today at $4.84 (+$1.84, +61.33%) over Friday’s $3.00 closing price. The stock has traded today between $4.32 and $4.90 per share and closed for trading at $4.79 (+$1.79, +59.67%).

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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: EFX:TSX,
EXTN:NYSE,
)

Source: Streetwise Reports   01/24/2022

Shares of full-service oil & gas solutions provider Exterran Corp. traded 60% higher after the company reported it agreed to be acquired by Enerflex Ltd. of Canada in an all-stock transaction for US$735 million.

Prior to the open of U.S. markets today, Texas midstream infrastructure
solutions firm Exterran Corp. (EXTN:NYSE), which offers products and turnkey services to oil & gas, water and power services companies and Calgary-based Enerflex Ltd. (EFX:TSX), supplier of natural gas compression, oil and gas processing and other equipment, announced that the two companies entered into an agreement combining the companies' operations in order to create a premier integrated global energy infrastructure provider.

The companies advised that under the terms of the merger agreement, "Enerflex will acquire all of the outstanding common stock of Exterran on the basis of 1.021 Enerflex common shares for each outstanding share of common stock of Exterran." The firm noted that after the transaction is completed, the newly merged Enerflex will have about 124 million outstanding common shares with an enterprise value of around US$1.5 billion.

The report indicated that the all-stock transaction sets the value for Exterran at approximately US$735 million, which according to the news release is 18% higher than Exterran's enterprise value as of Friday, January 21, 2022.

After the transaction has been finalized, existing owners of Exterran will own approximately 27.5% of all Enerflex common shares outstanding with current Enerflex shareholders owning the remaining 72.5%.

Enerflex will continue to be headquartered in Calgary, Alta. Canada and operate under the same name following the completion of the acquisition. The report noted that Enerflex President, CEO and Director Marc Rossiter will continue to serve in the same capacity and will be tasked with overseeing all aspects of integration. The firm's share will continue to trade on the Toronto Stock Exchange though the firm mentioned that it plans apply for listing in the U.S. on either the NYSE or the NASDAQ.

Enerflex Ltd.'s President and CEO Marc Rossiter stated, "This is an exciting day in the history of our companies. The transaction is immediately accretive to shareholders; enhances our presence, offerings, and scale across our regions; and importantly, executes upon our years-long strategic goal of increasing recurring revenues to improve the profitability and resiliency of our platform…Enerflex and Exterran each have a long history of global expertise in the delivery of modular energy solutions. Together, we are more efficient and better positioned in global capital markets. The Transaction will improve our ability to partner with an expanded set of customers to solve their growing energy infrastructure challenges with integrity, creativity, commitment, and success."

Exterran Corp.'s President and CEO Andrew Way commented, "We are excited about the ability to create shareholder value through this transaction and improving our product and service offering. The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services."

The report indicated that combining the two companies will help form a premier integrated global energy infrastructure firm. The companies were said to have highly complementary product lines and geographies which together will enhance efficiencies, scale and expanded product and service offerings for customers.

The combined entity is expected to have a well-balanced geographic presence with about 25-35% of revenues being derived fairly evenly between North America, the Middle East and Latin America. The company stated that it expects that after 12-18 months it will be able to achieve annual cost savings of US$40 million.

The report indicated that each company's respective Board of Directors has already unanimously approved the transaction and recommends that shareholders vote in favor of the transaction. The companies advised that the transaction is expected to close in Q2/22 or Q3/22 subject to approval by both Exterran's and Enerflex's shareholders. In addition, the merger remains subject to ordinary closing conditions, TSX and U.S. exchange requirements and necessary government regulatory approvals.

Enerflex's CEO commented on the rationale for the merger stating, "the timing is right for this transaction as it strengthens its positioning while global energy markets recover from the pandemic-induced lows. Natural gas is a transition fuel that, together with renewables, will lead the world toward a lower carbon future."

Enerflex is based in Calgary, Alta. and was described as "a single source supplier of natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment – plus related engineering and mechanical service expertise." The company is engaged in the design, engineering, manufacture, construction, operation and servicing of hydrocarbon handling systems. The firm employs around 2,000 people worldwide.

Exterran is headquartered in Houston, Tex. and operates in around 25 countries. The company is a global systems and process company that offers services and products for the oil, gas, water and power industries. The company listed that it provides natural gas processing and treatment and compression products and critical midstream infrastructure solutions to its global customers

Exterran Corp. started the day with a market cap of around $99.9 million with approximately 33.3 million shares outstanding and a short interest of about 5.6%. EXTN shares opened more than 60% higher today at $4.84 (+$1.84, +61.33%) over Friday's $3.00 closing price. The stock has traded today between $4.32 and $4.90 per share and closed for trading at $4.79 (+$1.79, +59.67%).

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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: EFX:TSX, EXTN:NYSE, )

Solar Stocks Shining Bright Again With Greenbriar Capital

Source: Ron Struthers   01/20/2022

Solar is back. A 10-year chart of the Invesco Solar ETF (TAN) of solar-based stocks shows the surge in price and volume. This pull-back in the sector provides a buying opportunity.

Source: Ron Struthers   01/20/2022

Solar is back. A 10-year chart of the Invesco Solar ETF (TAN) of solar-based stocks shows the surge in price and volume. This pull-back in the sector provides a buying opportunity.

Solar is back. This 10-year chart of the Invesco Solar ETF (TAN) of solar-based stocks shows the surge in price and volume. This pull-back in the sector provides a buying opportunity.

Greenbriar is filing a form 20-F to the SEC for a NASDAQ listing. This is a sample of junior NASDAQ-listed solar companies and one on the OTC. They all spiked up in price around the same time the TAN ETF did above and have now settled back considerably with the recent market correction.

Sunworks Inc. (SUNW:NASDAQ)

  • Recent price $2.60, Recent high $25
  • Annual revenue $37.9M
  • Market Cap $75.6M

Solar Integrated Roofing Corp. (SIRC:OTCMKT)

  • Recent Price $0.43, Recent high $3
  • Annual revenue $17.0M
  • Market Cap $72.2M

SPI Energy Co. Ltd. (SPI:NASDAQ)

  • Recent Price $3.62, Recent high $15
  • Annual revenue $97.8M
  • Market Cap $81.6M

VivoPower International Plc (VVPR:NASDAQ)

  • Recent Price $2.62, Recent high $18
  • Annual revenue $40M
  • Market Cap $48.5 M

I first bought Greenbriar mostly because of their Montavla project in Puerto Rico. However, the speed at which politics moves there is probably slower than any U.S. State. I expect this will come to fruition this year with a final Power Purchase Agreement signed, but Montavla has dropped to third position among Greenbriar's assets that will positively affect the stock first, before Montavla during this year.

Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC)

  • Shares outstanding — 29 million, approximately
  • Insiders own 21%
  • Market Cap $30M (less Captiva, CSE:PWR share value)

In no way I am down playing Montavla as it is the largest solar/battery project in the Caribbean and will replace the highest cost and dirtiest energy in North America. The realized power price for Montavla is about 400% higher than the US mainland and the project area has the highest solar radiation in Puerto Rico. There is also an existing 115 kV PREPA transmission line across the property.

If it wasn't enough that hurricane Maria destroyed infrastructure, including the electrical grid in 2017, an earthquake destroyed their largest power plant in 2020.

Montavla will be very very lucrative to Greenbriar and its shareholders, but solar projects in Alberta, Canada will start construction before Montavla.

Greenbriar has executed a long-term solar energy supply agreement with West Lake Energy, a privately owned oil and gas company based in Calgary. Under the agreement, Greenbriar will build, own and operate 90 megawatts of solar power and West Lake will purchase all of it.

Many oil and gas companies, especially the seniors, are doing similar type things with green energy projects so they can offset their carbon foot print and be perceived as good corporate citizens. As for solar in Canada, Alberta has the best solar radiation in the country. At left is the electrical grid map from the Alberta Electrical Systems Operator indicating lots of grid capacity except in the Central East area.

The initial 90 megawatt solar energy facility should have an approximate 10-year annual levelized EBITDA of CA$19,500,00 and a CAPEX of approximately CA$105 to CA$120 million. Greenbriar has engaged Nu-E Corp, a leader in renewable energy construction, to build the facility. In the longer term, Greenbriar and West Lake intend to eventually produce 400 megawatts of solar energy.

Sage Ranch, Tehachapi, California

Sage Ranch is a green/sustainable $480 million fully approved 995-unit subdivision in a prime real estate market. It is a 138-acre site located between the parallel arterial roads of Valley Boulevard and Pinon Street near downtown Tehachapi. The site is within half a mile from the City Hall, immediately adjacent to all schools, and in close proximity to many shops, restaurants, and public spaces in the Downtown District.

Non-dilutionary bank construction financing will be provided at the project level. Further, the USDA (U.S. Department of Agriculture) and other federal agencies provide 30- to 38-year, sub-2-per-cent home purchase mortgages requiring only a 3% down payment, making the mortgage payments to assist professional families, seniors, and single occupants an affordable home ownership package that is less expensive than renting.

Greenbriar owns the 995-unit project without any debt, being one of the only projects of this size in the United States to own 995 lots, debt-free. This is in, and of itself a $120 million to $150 million net value to Greenbriar.

Sage Ranch has engaged Paul Morris of Forward Living Keller Williams to lead the sales effort. You should watch this video, with California real estate expert Paul Morris. Buyers are anticipated to come from the large sophisticated population of engineers and skilled tradesmen related to the aeronautical and high tech engineering involvements in the Mojave and Kern County Area. Northrup Grumman, Tesla, Space X, Edwards Air Force Base, NASA, and numerous other engineering affiliations all have regional involvements with high paid and affluent employees.

All Single-Family homes will have PV roof panels with attached homes having shared panels. Water consumption will be reduced for parks and open spaces with reclaimed water connections.

You can view the Final Master Development Plan at this link for further detail.

Financial

Last financial statements at Sept. 30, 2021, show cash of CA$45,747. Since then, Greenbriar closed a CA$495,000 financing at $1.65 per unit on Nov. 8, 2021. Neither of the companies three current projects require any equity financing. They will all be financed with debt at the project level.

Summary

The unique aspect that Greenbriar's projects can be developed without equity financing gives large leverage for investors buying the stock. The company is moving from a development company to a revenue-generating one and this segment in a stock's life cycle usually produces large gains. Any one of their three projects will generate enough revenue to propel the stock much more higher than the current price.

Greenbriar has the management to get the job done and they have the incentive with 21% share ownership. Jeff Ciachurski, chief executive officer, was a founder and CEO of Western Wind, which sold for $420 million in 2013. Cliff Webb, president, is a professional engineer with 40 years of power engineering experience directly applicable to regulatory, EPC, and financing renewable energy development. Devon Sanford, president of Greenbriar Alberta, is a leading electrical contractor knowledgeable in design/construction of electrical power distribution systems including utility scale solar systems. Paul Morris, CEO of Sage Ranch, was in the video previous. Dan Kunz, chairman, was the former CEO of US Geothermal Inc., which constructed and operated three geothermal power plants in the U.S. Previous to that, he was president of Ivanhoe Mines, in charge of building the $10 billion Oyu Tolgoi copper/gold mine in Mongolia. Check out the whole team here.

The four junior solar companies on page 1 have average annual revenue of $48 million and an average market cap of about $70 million. As Greenbriar's projects move into revenue generation, this year and next they should reach in excess of $120 million in revenue per year. To move up to the average valuation to the comparable companies, it would mean a stock price 2.3 times higher. Greenbriar also owns about 36.5 million Captiva Verde, CSE:PWR shares that could add value. Currently valued at around $3 million, Captiva has the right to earn a 50% net profits interest in Sage Ranch.

I believe Greenbriar's Montavla and Sage Ranch have much higher profit margins than comparables and will warrant a higher revenue multiple. Furthermore, revenues should well exceed $100 million above the $70 million average of comparables. It is easy to put a price target of $4.00 to $5.50 on the stock for 2022.

The chart set up is very nice with a strong base to move up from and first resistance at $2 is mild.

For 27 years, Ron Struthers, founder and editor of Struthers' Resource Stock Report and Playstocks.net, has consistently beat the comparable benchmarks selecting stocks in the precious metals, oil & gas, clean-tech and disruptive technology sectors. In 2017, 35 stocks in the precious metals sector saw an average gain of 62% and energy clean-tech an average gain of 65%. In disruptive technology, 16 picks saw an average gain of 55%. Past performance is no guarantee of future gains. Struthers leverages his vast network of contacts, approaches investments from a value perspective seeking several 100% gain potential and uses technical analysis to aid in buy and sell levels.

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SWR Disclosures:

1) Ron Struthers: The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication. Additional disclosures above.
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) 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 Greenbriar Capital Corp., a company mentioned in this article.

( Companies Mentioned: GRB:TSX.V; GEBRF:OTC, )

Investor Says Clean Energy Stock Set to Move

Source: PennyQueen   01/19/2022

PennyQueen explains why you should care about Jericho Energy Ventures Inc.’s announcement that it has led the investment into a company developing a new class of hydrogen electrolyzer….

Source: PennyQueen   01/19/2022

PennyQueen explains why you should care about Jericho Energy Ventures Inc.'s announcement that it has led the investment into a company developing a new class of hydrogen electrolyzer.

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTCMKTS) has done it again! After insiders filled a private placement above market price, Jericho has led a seed investment into Supercritical Solutions Ltd.

Beyond the cool tech, which I’ll tell you about later, why should you care?

Last January, insiders exercised warrants which had about a year and a half until expiration and SEDI records show that they didn’t even sell shares to do it.  Jericho then used those funds to acquire Hydrogen Technologies and their zero-emissions Dynamic Combustion Chamber boiler technology. This ran their stock from 34 cents all the way up to $1.22, almost four times higher.

The Industry

If you aren’t familiar with the burgeoning hydrogen industry, you need to know that the market to produce and utilize green hydrogen as a fuel, feedstock, and means of energy storage is slated to reach a total addressable market size of $2.5 trillion per year by 2050. This, along with the environmental benefits, is how Jericho became part of my PennyQueen portfolio.  I look for companies that have the technology and support needed to enter these growing markets and carve out territory in the frontier of our energy transition.

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PennyQueen is an investor who focuses mostly on clean tech and does her own independent analysis. She has created a social media community of over 10,000 like-minded investors with whom she has shared her progress of taking a $329k nest egg and building it to over $6 million within a year.

Since I first bought shares of Jericho this past November, they have gone from a clean energy company with great technology to a clean energy company with sales! Jericho’s technology was one of the four winners in the UK government’s Green Distilleries Competition.  Supercritical was another.

The Tech

Why is Supercritical’s technology important? If you want green hydrogen (clean hydrogen), you need to produce it with an electrolyzer. Supercritical has developed a whole new class of electrolyzer with a proprietary membrane-less design allows it to exploit the benefits of supercritical water, creating hydrogen at over 200 bar of pressure. Regular electrolyzers usually produce hydrogen at 10 to 40 bar. This is a major bottleneck in green hydrogen production.

"After being beaten down alongside the majority of Canadian small caps, Jericho is currently sitting at a mere 65 cents and near a double bottom, it is primed to move."
—PennyQueen

Supercritical’s tech could very well unlock the needed efficiencies to make the storage of green hydrogen financially feasible, this would also eliminate a major barrier in utilizing hydrogen for transportation.

This acquisition will give Jericho around a 10% stake in Supercritical Solutions and give them access to their technology.

I was taught to watch what the smart money is doing, and there are two great examples here. First, there are the insiders, who own upwards of 60% of the company and keep buying more at higher and higher prices. Then there is Chris Sacca, a brilliant investor, who became a billionaire by picking winners early. His venture capital fund made seed and early stage investments in Twitter, Instagram, Uber, and many other very successful companies.  Now he has come out of retirement on a mission to save the planet. While Jericho is leading the investment into Supercritical, Sacca’s new fund Lower Carbon Capital is investing, as well as New Energy Technology. This is to me the equivalent of LeBron James playing on your high school basketball team, your chances of winning the state championship are definitely going up.  

After being beaten down alongside the majority of Canadian small caps, Jericho is currently sitting at a mere 65 cents and near a double bottom, it is primed to move. I expect that the inroads made during the Green Distilleries Competition and the publicity from their win there should also provide them with several more customers in short order.   

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PennyQueen Disclosure: I own shares of Jericho Energy Ventures Inc. I have not and will not be compensated for this report in any way. I write reports on my favorite picks; this is meant to be educational and not investment advice as I am not an investment advisor, just a mom on a mission to make the world better and make money along the way.

Streetwise Reports Disclosures:

1) The PennyQueen's disclosures are listed above.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Jericho Energy Ventures Inc. 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 report. 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 report 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 Jericho Energy Ventures Inc., a company mentioned in this article.

( Companies Mentioned: JEV:TSX.V; JROOF:OTCMKTS, )

Investment Highlights Company’s Pivot From Fossil Fuels to Green Energy

Source: Streetwise Reports   01/19/2022

Jericho Energy Ventures’ latest foray into the burgeoning hydrogen energy market is as the lead seed capital investor in a company with disruptive electrolyzer technology.Jeric…

Source: Streetwise Reports   01/19/2022

Jericho Energy Ventures' latest foray into the burgeoning hydrogen energy market is as the lead seed capital investor in a company with disruptive electrolyzer technology.

Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTCMKTS), once on the oil and gas side of the energy equation, has shifted to green energy, becoming an investor and incubator of companies involved with hydrogen energy production.

Jericho President Brian Williamson told Streetwise Reports that the company “saw the world evolving and developing. And for us, what we found most interesting was hydrogen. And what was interesting to us about hydrogen was its ability to offer what the current renewable environment couldn't offer, which was: always available, storable, transportable energy…so the equivalent of natural gas, but with the profile to be developed in a cleaner, green and sustainable way.”

The transition began in June 2020 when the company raised CA$5 million through a fully subscribed non-brokered private placement of 50 million units at CA$0.10 each. One unit included one common share and one warrant exercisable for one common share at a price of CA$0.13, valid for 36 months.

In January 2021, Jericho announced the acquisition of Hydrogen Technologies, a company that has developed a "breakthrough high-temperature Dynamic Combustion Chamber (“DCC”) boiler that enables zero-emissions hydrogen to generate heat, hot-water, high-temperature steam, and Combined Heat & Power (“CHP”) through a closed-loop process" that emits no greenhouse gasses. The company noted that 37% of all fossil fuels used in U.S. industry are burned to produce steam.

Jericho's transition to clean energy continued in July with its co-lead Series A investment in H2U Technologies Inc., a company developing "proprietary ultrahigh throughput, AI-driven, electrocatalyst discovery process for electrolyzer and fuel cell applications" in partnership with Southern California Gas Co. The firm is commercializing technology developed by Caltech.

Ryan Breen, Jericho's head of corporate strategy, stated "H2U's catalyst discovery process is a distinct advantage over traditional catalyst companies looking to serve the hydrogen market. Driving down the cost of green hydrogen is of vital importance to its adoption and JEV seeks to play a market-leading role in that pursuit. Moreover, we are thrilled to be joined by like-minded investors in recognizing the value of H2U's proprietary technology and world-class Caltech team."

Earlier this month, Jericho closed a non-brokered convertible debentures private placement financing, raising CA$5.7 million in aggregate gross proceeds, at the price of CA$0.70 per debenture, a premium to the market. The debenture pays annual interest of 4%, and the principal is payable 36 months after closing. The debenture is convertible to one common share at CA$0.70. One share purchase warrant is included in each debenture, entitling the holder to acquire an additional common share at the price of CA$1.00.

The company noted that the proceeds from the financing will be used for "working capital as well as other growth-focused initiatives."

Jericho just announced what one of the growth-focused initiatives were with the lead seed series investment in Supercritical Solutions Ltd. The firm is developing a new class of water electrolyzer that will allow low-cost hydrogen production. Jericho is joined by Chris Sacca's Lowercarbon Capital and New Energy Technology in the investment and global mining company Anglo American and Deep Science Ventures are existing investors.

According to the company, one of the issues with hydrogen production is current electrolyzer technology puts out hydrogen at a lower pressure than what's needed for most uses, necessitating expensive compressors. Supercritical is working on electrolyzer technology that will allow hydrogen to be emitted at pressures high enough that the need for compressors is eliminated in many cases, streamlining and lowering the cost of hydrogen production.

Jericho's recent investments show that the company has transformed itself from a fossil fuel company to one that is meeting its goal of "developing high growth technology companies across the hydrogen value chain and searching for technologies to address industry’s pain points."

Read what Technical Analyst Clive Maund and Penny Queen have to say about Jericho Energy Ventures.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family 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: Jericho Energy Ventures. 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 Jericho Energy Ventures, a company mentioned in this article.

( Companies Mentioned: JEV:TSX.V; JROOF:OTCMKTS, )

Why PennyQueen Likes This Energy Stock

Source: PennyQueen   01/18/2022

PennyQueen explains why she thinks this uranium explorer is a great pick and why the metal should have an especially auspicious season.Drill rigs are in position and getting ready to s…

Source: PennyQueen   01/18/2022

PennyQueen explains why she thinks this uranium explorer is a great pick and why the metal should have an especially auspicious season.

Drill rigs are in position and getting ready to start the season. So I thought it would be a good time to cover why I think Azincourt Energy Corp. (AAZ:TSX.V; AZURF:OTC) is a great pick and why this season is especially auspicious.

In its entire history, the uranium explorer has been able to drill 17 holes over three seasons. They have run into to typical setbacks like late funding and early springs and showed caution with shareholders' money and the environment by not continuing to drill last spring when the ice bridges began to deteriorate.

How is this year different? What was a needle in a haystack search is becoming easier with a metaphorical metal detector of positive factors. We are set up early with a massive 73 kilometer road constructed and are planning 30 to 35 drill holes.

If we hit all 35 holes, we will have, in essence, done six seasons of work.  (I only say we, because I like to remember that as a shareholder, it is my money out there looking for pay dirt; I am not and will not be paid in any way for this report.)    

They have built in efficiency this year; instead of commuting to the sites, they are constructing a camp for their employees.  They also have not one, but two drilling rigs that will be running full time, along with a company contracted to maintain the road and run in supplies.

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PennyQueen is an investor who focuses mostly on clean tech and does her own independent analysis. She has created a social media community of over 10,000 like-minded investors with whom she has shared her progress of taking a $329k nest egg and building it to over $6 million within a year.

The primary areas are already scouted out with the G zone to be drilled first. If you remember from last year’s drill results, they had elevated uranium levels, somewhere between three to five times the average. This, along with an increase in pathfinder elements, is a great sign that they are looking in the right area. I should also note that they did an aerial radiometric survey this summer to fine tune their drill sites. They are still working with Fobi AI Inc. (FOBI:TSX) to further refine and guide their drilling.

The area they are working in has minimal overburden and they are expecting each drill hole to be 100 meters to 200 meters deep. So, the total drilling for the season should come in over 6,000 meters.  It sounds like a lot, but with two drill rigs running two 12-hour shifts a day and a well thought out plan, it should be easily achievable.

The uranium spot price is sitting at $45.50. For this same day one year ago, it was sitting at $30.35. Our needle is now about 50% more valuable! I expect the price of uranium to keep rising, the Sprott Physical Uranium Trust has continued to gobble up uranium supplies. All while non-utility buyers have begun to enter the market.

Many believe that uranium is at the beginning of a bull cycle, and anyone who remembers its 2007 run to $140 a pound knows that it can make a rapid ascent. One critical piece to be watching right now for the overall uranium market is the unrest in Kazakhstan. Kazatomprom, the Khazak National Atomic Company, supplies 23% of nuclear fuel and a shutdown or slowdown of their operations would cause an immediate spike in the price of uranium. Yesterday, they reported that their operations have not been largely impacted.  Hopefully, tension will continue to decrease in the region.

There are 440 working nuclear reactors worldwide. There are another 55 being built, 100 planned, and 300 proposed, and we know demand is increasing.  Just remember, as the price of uranium goes up, so does the share price of uranium exploration companies. The biggest change for an exploration company, of course, comes from a successful find and Azincourt has taken all the steps necessary to increase our odds as shareholders exponentially. At less than 6 cents a share, I like our chances.

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PennyQueen Disclosure: I own shares of Azincourt Energy Corp. I have not and will not be compensated for this report in any way. I write reports on my favorite picks; this is meant to be educational and not investment advice as I am not an investment advisor, just a mom on a mission to make the world better and make money along the way.

Streetwise Reports Disclosures:

1) The PennyQueen's disclosures are listed above.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. An affiliate of Streetwise Reports is conducting a digital media marketing campaign for this article on behalf of Azincourt Energy Corp. Please click here for more information. 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 report. 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 report 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 Azincourt Energy Corp. and Fobi AI Inc., companies mentioned in this article.

( Companies Mentioned: AAZ:TSX.V; AZURF:OTC, FOBI:TSX, )

Uranium Price Forecast 2022, Growth Expected

Source: Streetwise Reports   01/17/2022

Political unrest in Kazakhstan and a buildup of stockpiles is leading to tightened demand and opportunities for growth in uranium, according to an industry report.The new year …

Source: Streetwise Reports   01/17/2022

Political unrest in Kazakhstan and a buildup of stockpiles is leading to tightened demand and opportunities for growth in uranium, according to an industry report.

The new year offers new opportunities for investors in the uranium market, as political unrest in top-producing Kazakhstan promises to tighten demand on the industry.

In a recent industry report by Haywood Securities, analysts said the problems in Kazakhstan, plus a buildup of uranium inventory by the Sprott Physical Uranium Trust, could reignite the metal's spot prices near-term and accelerate a permanent shift toward higher prices.

"We maintain a long-term bullish thesis on uranium demand/supply and commodity price and believe this short-term setup could rapidly transform into a mid-term accelerant and market tightening mechanism if there is any production impact in Kazakhstan," Haywood analysts said in the report.

At least 225 people have died and more than 4,300 people have been injured in uprisings of tens of thousands of people in Kazakhstan, The Associated Press reported. Protesters stormed government buildings and set them on fire. It's the largest unrest the country has seen since it gained independence from the Soviet Union three decades ago.

"Uranium is the one energy source that could satisfy every Millennial and Gen-Xer on the planet; zero pollutive impact anywhere and a reliable cost-effective means of heating the planet and recharging Elon Musk’s vehicles."
—Industry observer Michael Ballanger

The demonstrations began over a near-doubling of some fuel prices in the west and quickly spread across the country. The cabinet resigned and a 180-day price cap on vehicle fuel and a moratorium on utility rate increases were announced, but it was unclear what effects those moves would have on the country's stability.

Kazakhstan produces 40% of the world's uranium, about 50.6 million pounds of triuranium octoxide (U3O8) in 2020, according to Haywood.

What Is the Demand for Uranium?

Uranium from mining is used primarily as fuel for nuclear fission in power plants, but it is also used in the medicine, food production, and space industries. There are currently about 440 nuclear reactors operating worldwide, according to the World Nuclear Association. In 2020, they provided about 10% of the world's electricity. About 55 additional plants are being built at a time when conventional coal-fired generation of electricity is simultaneously shrinking. 

Most uranium collection is volume-intensive and done through open pit mining. After Kazakhstan, Australia and Canada are the other top-producing countries at 13% and 8%, respectively, according to a report by Kitco Metals Inc.

The sector suffers from stigma surrounding the risk of radiation and accidents — like those at Chernobyl and Three Mile Island — and the element's use to power nuclear bombs. However, the Environment Protection Agency says that uranium is not as dangerous in its exposure profile as other radioactive elements because it decays by alpha particles, and human skin will block the alpha particles.

The industry also points to new studies that show other energy producing sectors are actually much more dangerous than nuclear energy. In fact, the coal industry accounts for as many as 120 deaths per year compared to less than 0.01 deaths per year in the nuclear industry, according to the World Nuclear Association.

Does Uranium Have a Future?

Investors are hoping nuclear power will have a resurgence as governments attempt to turn away from fossil fuels. Uranium prices surged 33% to surpass $40 a pound in September 2021, according to a report by North Shore Global Uranium Mining ETF. They surged again to $45.25 a pound on Jan. 5, Bloomberg reported.

In general, global nuclear power-generating capacity is expected to rise 82% to 792 gigawatts by 2050 as the world transitions from fossil fuels, the International Atomic Agency said.

"Uranium is the one energy source that could satisfy every Millennial and Gen-Xer on the planet; zero pollutive impact anywhere and a reliable cost-effective means of heating the planet and recharging Elon Musk’s vehicles," industry observer Michael Ballanger wrote in December. "Handled properly, nuclear power is truly the alternative for coal and oil and natural gas, but what spooks the world is that the collateral damage of a ruptured nuclear power station is infinitesimally larger than a pipeline leak or a coal fire."

The situation in Kazakhstan could lead to increased dependence on uranium companies in North America and Australia. Haywood's top picks in the sector are NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT), Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT), and Uranium Energy Corp. (UEC:NYSE AMERICAN)

The Haywood analysts pointed to NexGen's Arrow deposit, which they viewed as "the best undeveloped uranium asset globally,” calling it “highly strategic." A February 2021 feasibility study outlined more than 21 million pounds of U3O8 per year over a 10-year mining operation at the site.

"We believe that it is critical for major producers to control this deposit because of its disruptive potential and that this is the strategic key to preserving the value of existing deposits and maintaining the ability to affect price with output decisions," the Haywood analysts reported.

Contributing to uranium's rally is the fact that the Sprott Physical Uranium Trust (SPUT) has gathered 41.3 million pounds of the metal and has grown its assets from $630 million when it launched last summer to more than $2 billion today.

"We are left with a strong setup for uranium bulls short term, with SPUT’s return to the spot market and refortified dry powder as the risk profile of the world’s largest producing nation just increased," Haywood said.

China is reportedly testing another alternative to uranium, thorium. Officials claim the metal is cheaper and creates less radioactive waste. They've already built a reactor for a trial run using it as fuel.

But investors shouldn't let that affect their interest in the uranium industry, analysts said.

"Even if China can prove thorium's success, commercial production is unlikely to start before the end of the decade at the earliest, given that it can take years to assess the environmental impact of any nuclear fuel," Neha Chamaria at The Motley Fool wrote. "It's unlikely to replace uranium altogether, especially with nuclear energy gaining attention among some economies across the globe as a viable clean-energy option to meet their goals for greenhouse gas emissions."

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Disclosures:
1) Steve Sobek 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. 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 Uranium Energy Corp., which is a company mentioned in this article.

Disclosures from Haywood Securities, Jan. 6, 2022

This report is intended for institutional investors and may only be distributed to non-institutional  U.S. clients in the following states: nil. Otherwise, this report may only be distributed into those states with an institutional buyer state securities registration exemption.

Analyst Certification: I, Colin Healey, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer's shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Haywood Securities, Inc. has reviewed lead projects of these companies and a portion of the expenses for this travel may have been reimbursed by the issuer: Denison Mines Corp., NexGen Energy Ltd., and Uranium Energy Corp. Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for these companies in the past 12 months: Denison Mines Corp., and NexGen Energy Ltd. Haywood Securities, Inc. or one of its subsidiaries has received compensation for investment banking services from this company in the past 12 months: Denison Mines Corp.

( Companies Mentioned: DML:TSX; DNN:NYSE.MKT, NXE:TSX; NXE:NYSE.MKT, UEC:NYSE AMERICAN, )

Hydrogen Stock at Great Entry Point

Source: Clive Maund   01/17/2022

Following a severe downtrend, charts show Jericho Energy Ventures Inc. could be about to take off, analyst Clive Maund says.We have here what looks like a superb entry point for Jeric…

Source: Clive Maund   01/17/2022

Following a severe downtrend, charts show Jericho Energy Ventures Inc. could be about to take off, analyst Clive Maund says.

We have here what looks like a superb entry point for Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTCMKTS).

You may recall that Jericho was originally an oil stock that branched out into hydrogen and it has secured a contract to provide the energy infrastructure for a leading Scottish whisky distillery to enable it to make the changeover to “green energy,” a development which is likely to lead to numerous further such contracts.

On its latest 14-month chart we can see that, following a quite severe downtrend from its highs last February, Jericho has been building out a fine double bottom pattern.

With it now being very close to the low of the second bottom, this looks like a great “buy spot,” so we will now proceed to see additional strong evidence on the six-month chart that suggests it should take off higher from here.

On the six-month, we can quickly uncover strong evidence that Jericho is set to take off higher soon. Over the past couple of weeks, as the second low of the double bottom has formed, several long-tailed bull hammer candles have appeared on increasingly strong upside volume with the last one on Friday being on the strongest upside volume for about nine months, which drove the accumulation line sharply higher.

Together this is viewed as convincing evidence of determined accumulation by those “in the know” which of course means that the stock is very probably going to take off higher soon.

Jericho is therefore rated an immediate strong speculative buy.

Jericho Energy Ventures website

Jericho Energy Ventures. JEV.V. JROOF on OTC, closed at CA$0.58 on Jan. 14, 2022.

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Disclosure:

1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Additional Clive Maund disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Jericho Energy Ventures Inc. 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) 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.
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 Jericho Energy Ventures Inc., a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosures:
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: JEV:TSX.V; JROOF:OTCMKTS, )

Uranium Explorer Expecting Drill Results Soon

Source: The Critical Investor   01/16/2022

The Critical Investor discusses the latest developments for Blue Sky Uranium with CEO Niko Cacos, as a new drill program at Ivana has commenced, and the company has won a l…

Source: The Critical Investor   01/16/2022

The Critical Investor discusses the latest developments for Blue Sky Uranium with CEO Niko Cacos, as a new drill program at Ivana has commenced, and the company has won a lawsuit.

Where the Federal Reserve has been spooking the markets by more aggressive interest rates than expected lately, leading to a temporary consolidation, general sentiment seems to be picking up again after digesting the Fed scare, despite the new omicron COVID-19 variant developing around the globe, seemingly creating the new pandemic normal now. Blue Sky Uranium Corp. (BSK:TSX.V; BKUCF:OTCQB; MAL2:FSE) hasn’t been fazed, as the company diligently continues to advance its flagship Amarillo Grande uranium project in Argentina.

As most metals are experiencing shortages now, partly caused by COVID-19 based supply chain disruptions, the Sprott Physical Uranium Trust, with its investment mandate to buy more than US$1.3billion in uranium oxide on the spot markets and other sources, seems to be determined to let the spot price hover in a trading range of US$42-48/lb U3O8 at the moment, probably awaiting the moment utilities start buying long term contracts:

On a side note, all moves of the uranium oxide spot price are represented nicely on this up to date chart provided by Tradingview, taken from my website. The Sprott Trust seems to have the power to corner the uranium spot market singlehandedly, but Sprott denies this, as he points at lots of uranium mines currently on care and maintenance, for example the McArthur River Mine from Cameco. What he fails to mention is that most of these mines aren’t switched on in days, as Cameco estimates a 12-18 months ramp-up period for McArthur River. Besides this, it seems the McArthur River Mine probably could encounter difficulties when trying to reopen again, as the mine is technically challenging, according to fund manager Warren Irwin. Of course, he has his own agenda, but I have heard these views from others as well.

Notwithstanding this, there are many other mines waiting to open who could fill the void of a McArthur River Mine, especially the Kazakh ISR mines, which already provide a substantial part of annual uranium oxide production globally, and could reportedly bolt on new production fairly easily. The best undeveloped deposit of the moment, Arrow, owned by NexGen Energy, will not be able to step in, as it probably is at least three years from production as they are in the midst of permitting, and construction of their project plus ramp-up takes at least two years, in my view.

As nuclear energy as a way to provide baseload power isn’t going anywhere soon, as solar and wind are simply not sufficient, and the development of new utilities is ongoing, even supported by the development of smaller type reactors now, fundamentals look robust for the short, middle and long term. For now, the entire industry is waiting for when utilities start buying again, and viewing Sprott’s actions, this could be in the cards soon.

Blue Sky Uranium is working hard to be ready for this bull market, with one drill program at its Ivana deposit underway now, and winning a lawsuit against them. In this update the current state of affairs will be discussed with CEO Niko Cacos.  

As can be seen below, the share price of Blue Sky Uranium follows more or less the movements of the uranium spot price:

Share price Blue Sky Uranium, 1 year timeframe (Source tmxmoney.com)

When comparing Blue Sky’s chart with peers, it is interesting to see that a more advanced stage and larger resource is able to generate more leverage and strength (gray line is BSK.V):

Source: tmxmoney.com

As Blue Sky Uranium is working on expanding its resource at Ivana, this is exactly the reason the stock could rise more than its competitors, as it has considerable catching up to do. As a reminder, the 2019 preliminary economic assessment (PEA), based on the current 22.7M lbs U3O8 resource, shows a decent but relatively small post-tax NPV8 of US$135.2M, with a robust internal rate of return (IRR) of 29.3%, at US$50/lb U3O8. Management aims at expanding the resource from 22.7M lbs to 100M lbs, and it is likely that such an increase will probably significantly improve economics and likely re-rate the stock.

In order to achieve this, Blue Sky Uranium has one drill RC program underway at the moment, a 3,500 drill program to expand and infill the flagship Ivana deposit. The 4,500-meter program at the Ivana North and Ivana Central targets plus two other nearby targets was delayed because of slow permitting, but these drill permits were finally granted in October of last year. A map from the October news release shows the North and Central drilling (red is completed drill holes, green planned):

At the time, 46 holes (1,870m) were completed, and according to VP Exploration Guillermo Pensado no more holes were completed at the time of writing. He also stated, “The drilling program was set into standby after that October press release, and it is expected to be resumed at Ivana Central after concluding the actual 3500m RC drilling program at the Ivana deposit.”

As results were reported for these first 46 holes, I was curious about the U3O8 intercepts. The resource has an average grade of 0.037% U3O8, which equals to 370ppm U3O8, so as the Ivana deposit is a thin mineralized layer stretched out over a large surface, economic intercepts should be in the 250-400ppm range, 1-10m long. Let’s have a look at the table of results:

All holes completed at Ivana North were assayed and presented in the table above, accompanied by a few results of Ivana Central. As can be seen, the drillers hit uranium oxide and vanadium oxide, but no intercepts came close to the necessary U3O8 grade range to be included in a potential Inferred resource unfortunately. Not all is lost for the Ivana North target, as CEO Cacos had this to say:

"The discovery of a new deposit is the result of an exploration process that begins with prospecting holes as well as those already drilled, which may confirm or not the presence of a system and vectorize more exploration efforts. As an example, the initial drilling program at Ivana deposit hit its first potentially economic uranium grade intercept at hole 100; where all the previous lower grade intercepts had been used as the vectorizing tool along the exploration process."

It was interesting to read in the news release about the explanation of low uranium oxide mineralization, as primary mineralization seemed to have remobilized:

“Intervals with anomalous uranium range from 1 to 9 metres in thickness and display variable uranium/vanadium ratios, as observed for the Ivana deposit. This is interpreted to be a result of remobilization of primary mineralization with low vanadium into the near surface environment, where uranium precipitates as carnotite, a uranium vanadate mineral. This interpretation is supported by the results of the downhole radiometric probe survey. Radiometric response from the probe did not show direct correlation in all cases with analytical uranium content, a phenomena known as “disequilibrium”. Disequilibrium is known to occur where uranium has been remobilized geologically recently and, for example, precipitated as carnotite resulting in a weak, or no, radiometric response. It had previously been detected at Amarillo Grande in surface sampling work.”

At the question where the potential uranium mineralization might have been remobilized to, if there would be an attempt to chase it down by follow-up drilling, and if such remobilization could be explored by surface trenching before any drilling takes place, CEO Cacos answered as follows:

“This is a new area where mineralization was observed at different depths, in some cases at the same hole; for that reason we developed a drilling program with the capacity to prospect down to 50 meters in depth. The superficial uranium is a good indicator of a potential buried mineralization system, which may locate hundreds of meters of that uranium on surface. This was the case at Ivana deposit, where the initial holes were located based on superficial mineralization and finally the core of the deposit was located  one hundred meters to the east.”

The news release also described the importance of certain pathfinder elements, especially molybdenum, selenium, lanthanum and yttrium. For example, the following map showed the relation between selenium and uranium:

The analogy with the Ivana deposit itself worked out beautifully, the only issue was that the encountered uranium oxide grades were much lower. I wondered how the geologists measured the pathfinder minerals, was this soil sampling? And as the selenium presence seemed to extend well beyond the target boundaries, why not enlarging the target? CEO Cacos answered:

“The use of pathfinder elements for exploration is very well-known tool used by all the explorationists at any commodity. Geos need to reduce their targeting areas from large potential zones using indirect or direct studies, as the definition of subtle pathfinder geochemistry anomalies. In our case every sample has a 45 elements assay associated, for those elements recognized as related to the geological model under exploration. The pathfinder tool is used with geological interpretation, geophysical data and the experience gained in the district as a batch of information to vectorize the follow up exploration.”

The company’s strategy has been to deploy an initial 1,500 meters of drilling at each of the Ivana North and Ivana Central targets, followed by 1,500 meters of follow-up detailed drilling to better define areas with the best results at both targets. As Ivana North has already seen 1,500m of drilling, and as the maps of the Ivana deposit seem to indicate a width varying from roughly 500m to 1500m, I wondered why a grid spacing of just 1,000m was done at Ivana North, but also a fencing with even much smaller spacing of 200-500m at Ivana Central, as the size of the property could probably warrant a larger grid spacing for step-outs of even 1,500-2,000m first before further fine-tuning, considering Blue Sky is hunting large scale REDOX front deposits, and potential mineralization is usually stretched out a few meters under the surface, potentially for many kilometers on end like at Ivana. CEO Cacos had this to comment:

“The area is huge, but the surface area that deposits occupy is relatively small. Using the Ivana deposit as our best local model for exploration, the deposit width actually ranges from 200 to 500 meters; therefore, drilling patterns over that 500m may pass over a deposit without been detected. The exploration programs need to be understood as the construction, where all the information gathered since the beginning will represent part of the exploration puzzle. Exploration requires strategies based on comprehensive work based on good quality data, high professional assessment, patience, and systematic work; and some luck.”

As a reminder, on September 28, 2021, the company announced the launch of a 3,500m reverse circulation (RC) drill program, in order to expand and upgrade the Ivana Deposit. The program includes about 260 shallow holes, as the mineralization is situated near surface (at -1m to -25m depth so far):

The goal is to test the zone west of the current Ivana deposit where 2018 sampling returned strong results. Some infill drilling of this deposit will also be completed, in order to upgrade categories of the mineral resource estimate, necessary for engineering work for the PFS. According to CEO Cacos, he expects the first drill results to be announced very soon, within the next couple of weeks.

Besides the mentioned three target zones for the ongoing drill programs, there are several other targets at the Amarillo Grande project, which is substantial with an almost 60km strike length:

Right now, the focus on its exploration programs is on the Ivana Deposit (1), Central (2) and North (3). After these targets, this will change towards the immediately surrounding targets: Ivana Cateo Cuatro (4), and, Ivana East (5). This is depending on drill results at each target, warranting potential follow up drilling or not, and market/uranium sentiment.

I also wondered what the status of the second phase testwork program was, targeting further process design tests for the Ivana deposit. As a reminder, based on 2018 testwork, the overall process plant recovery was already very solid at 85% for uranium and 53% for vanadium. Blue Sky shipped a bulk sample to the Saskatchewan Research Council where Chuck Edwards, a world-renown metallurgist and processing engineer, is carrying out advanced studies to improve recovery and cost. CEO Cacos had this to say about the progress of this testwork program:

“The test-work is properly advancing under the close supervision of our key person Chuck Edwards. The assessment is expected to be finished by Q2-2022.”

Besides exploration, resources and studies, permits are also part of every mining project, and can attract significant opposition of protesters. In this case, some environmentalists launched a lawsuit against Blue Sky Uranium and the Government of Rio Negro, in order to “assert environmental protection rights,” among other arguments, targeting its exploration efforts. As management already indicated in my last article about the company, they had nothing to fear, as the judge already dismissed the case. Fortunately, the Supreme Court also dismissed the subsequent appeal, making the ruling final as there were no further appeals filed. CEO Cacos was happy with the verdict:

“We are pleased to have this matter behind us and give our full attention to our ongoing exploration programs in accordance with all applicable laws and regulations. On behalf of the board, I thank our legal team and the support of our shareholders.”

The treasury currently stands at an estimated C$1.2M, which should be sufficient to continue with the two ongoing drill programs, part of permitting, met work and engineering, and commence working on the preliminary feasibility study (PFS). The company expects to go back to the markets to raise approximately C$3M in the next month or so. These funds will allow to complete the exploration work (and any follow up drilling), as well as pay for the baseline environmental studies that will be required for the upcoming pre-feasibility study.

Conclusion

It was good to see that the appeal against Blue Sky Uranium and the Government of Rio Negro was dismissed, as the lawsuit was completely without merit. Although ESG is a good thing for mining as the environment needs to be protected from toxic waste spills, noise etc., such badly prepared cases only seem to function as self-serving delaying tactics for environmentalists, damaging their own cause more than it helps.

In the meantime, the company finally got the first drill results from the 4,500m program back from the labs, and the Ivana North target didn’t generate economic results, unfortunately. Notwithstanding this, management still sees potential for this target as the Ivana deposit took a lot of drilling before it was discovered, and there are many more targets to test in a very large area that hasn’t seen much exploration, so next up is the Ivana deposit itself that is drilled now, followed by the balance of the 4,500m program at Ivana Central. Let’s see what the next batch of drill results will bring us, as uranium oxide prices keep hovering over US$40/lb U3O8, levels we haven’t seen since 2014.    

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on www.criticalinvestor.eu in order to get an email notice of my new articles soon after they are published.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.  

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high-quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value.

Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

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The author is not a registered investment advisor, and has a long position in this stock. Blue Sky Uranium is a sponsoring company. All facts are to be checked by the reader. For more information go to www.blueskyuranium.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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2) The following companies mentioned in the article are sponsors of Streetwise Reports: Blue Sky Uranium. 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) 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 Blue Sky Uranium Corp., a company mentioned in this article.

( Companies Mentioned: BSK:TSX.V; BKUCF:OTCQB; MAL2:FSE, )

Oilfield Services Co. Projects 25% Revenue Growth for Q4

Source: Streetwise Reports   01/04/2022

Shares of land-focused oil services firm NexTier Oilfield Solutions Inc. traded 27% higher after the company reported it expects Q4/21 revenues will be in the range of $500-510…

Source: Streetwise Reports   01/04/2022

Shares of land-focused oil services firm NexTier Oilfield Solutions Inc. traded 27% higher after the company reported it expects Q4/21 revenues will be in the range of $500-510 million and advised that its 32-unit fracking rig fleet will be fully deployed in Q1/22.

Oilfield well completion and production services company NexTier Oilfield Solutions Inc. (NEX:NYSE), yesterday issued an update on its business activities and provided some forward guidance for Q4/21.

NexTier Oilfield Solutions advised that it expects total revenue in Q4/21 of $500-510 million. The company highlighted that these revenue levels represent a 25% increase from Q3/21. The firm added that it estimates that adjusted EBITDA in Q4/21 will be in the range of $75-80 million, including around $18 million from a projected gain from certain asset sales. NexTier noted the asset sales were due to its planned divestment of diesel-powered frac equipment and other non-core assets as it converted its equipment to be fueled by natural gas.

The company indicated that in Q4/21 its on-site production activities grew to an average of 30 deployed and 29 fully utilized fleets, versus 25 deployed and 24 fully utilized fleets in Q3/21.

NexTier's President and CEO Robert Drummond commented, "The strong momentum we experienced when exiting the third quarter continued through year-end…The expected sequential gains resulted from solid growth across the entire NexTier enterprise, enhanced by the inclusion of a full quarter of Alamo contribution versus just one month in Q3/21."

"Market indicators suggest that the pace of market recovery is increasing and frac service supply is rapidly tightening. We're only just beginning to see the financial benefits of our integrated completion service model, which offers our customers higher efficiency and a path to lower costs and emissions," Drummond added.

The company's EVP and CFO Kenny Pucheu stated, "NexTier is beginning to experience the benefits from our countercyclical investment strategy, with the guidance revealing signs of strong, profitable growth as we exited 2021." 

Pucheo continued, "As an early adopter of low cost and emission technologies, NexTier is reaching the end of its two-year strategic conversion to a predominately natural gas capable fleet…We enter 2022 with momentum, the industry's largest natural gas capable fleet and a supportive market backdrop."

The company mentioned that that as it advised previously, it expects to operate an average of 32 deployed frac fleets in Q1/22, which include one additional upgraded Tier 4 dual fuel frac fleet compared to the average of 31 fleets during Q4/21.

The firm stated that it is projecting net pricing gains and increased utilization in Q1/22 and indicated that it is on a path to achieving double-digit annualized EBITDA per fleet by the end of that quarter.

CEO Drummond remarked, "We see a constructive demand backdrop for U.S. onshore completion services as we begin 2022…Supply of frac services has tightened considerably over the past year and NexTier is in a great position to recapture a significant portion of the pricing concessions we made to help our customers through COVID."

NexTier Oilfield Solutions is a U.S. land oilfield service firm based in Houston, Tex. The company provides well completion and production services across active basins throughout the U.S. to exploration and production (E&P) customers.

NexTier began the day with a market cap of around $936.4 million with approximately 242.0 million shares outstanding and a short interest of about 2.1%. NEX shares opened 6% higher today at $4.11 (+$0.24, +6.20%) over yesterday's $3.87 closing price. The stock has traded today between $4.11 and $4.98 per share and is currently trading at $4.92 (+$1.05, +27.13%).

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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: NEX:NYSE, )

Skyharbour Looks to New Uranium Claims

Source: Streetwise Reports   01/03/2022

Skyharbour Resources Ltd. has staked six new prospective uranium exploration properties within and near the Athabasca Basin of northern Saskatchewan, which contains the world’s highest-grade uranium deposits.

Skyharbour Resources Ltd. (SYH:TSX.V; SA:NYSE.MKT) has staked six new prospective uranium exploration properties within and near the Athabasca Basin of northern Saskatchewan. The six properties comprise 147,510 hectares (364,505 acres) in the basin, which contains the world’s highest-grade uranium deposits.

The company also recently completed a small private placement financing for total gross proceeds of CA$500,000 bringing the treasury of the company to over CA$10 million in cash and stock. An independent director provided the lead order for the financing, illustrating the strong insider support for Skyharbour.

Skyharbour intends to use the financing’s proceeds for its exploration and upcoming drilling programs.

With major nations committed to reducing carbon emissions as global electricity usage continues to climb, Skyharbour President and Chief Executive Officer Jordan Trimble believes more nuclear-based generating capacity will be seen as the way to meet demand. That, he says, should drive uranium prices, and the value of exploration companies like Skyharbour, higher.

“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference,” Trimble said. “But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”

“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference. But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”

—Skyharbour President and Chief Executive Officer Jordan Trimble

At Skyharbour, he says, the emphasis is on discovering uranium at its exploration projects. Secondarily, the company acts as a project generator and land incubator enabling outside companies to earn into the secondary projects through cash and stock payments as well as funding the advancement of the projects. Management and ownership see acquisition of Skyharbour by a large mining company to be the company’s end-goal. Trimble says the trigger for such an event would be a combination of several factors.

“Finding rich deposits of high-grade U3O8 is key, along with higher uranium prices and greater demand from utilities,” he said. “We have more-than-adequate capital to get us to that point as well as a management team whose mix of capital-market and geological expertise is suited to lead us there.”

Based in Vancouver, British Columbia, Skyharbour Resources operates several uranium-drilling programs individually, or participates jointly, on over 385,934 hectares (953,663 acres) in northern Saskatchewan’s uranium-rich Athabasca Basin. It is one of the largest project portfolios in the region.

Its single-largest effort is the Moore Uranium Project, which it acquired from Denison Mines, a large strategic shareholder of the company. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization. It is located in the Maverick Zone, 15 kilometers east of Denison’s Wheeler River project and 39 kilometers south of Cameco’s McArthur River uranium mine. Moore has returned drill results of up to 6.0% triuranium octoxide (U3O8) over 5.9 meters including results of 20.8% U3O8 over 1.5 meters at a vertical depth of 265 meters.

In a joint venture with Orano Canada Inc., Skyharbour has a 24.5% interest in the Preston Project. It also has a 15% interest in the East Preston Project as part of a joint venture with Azincourt Energy. Preston and East Preston are large, geologically attractive properties near Fission Uranium’s Triple R deposit and NexGen Energy’s Arrow deposit.

In addition to having active partners at its Hook Lake Uranium Project, its Mann Lake Uranium Project and its Yurchison Project, the company also has eight other projects: South Falcon Point, Riou River, Pluto Bay, Wallee, Usam Island, Foster River, and South Dufferin.

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Disclosure:
1) Evan Cooper compiled 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. 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., a company mentioned in this article.

( Companies Mentioned: SYH:TSX.V; SA:NYSE.MKT,
)

Source: Streetwise Reports   01/03/2022

Skyharbour Resources Ltd. has staked six new prospective uranium exploration properties within and near the Athabasca Basin of northern Saskatchewan, which contains the world’s highest-grade uranium deposits.

Skyharbour Resources Ltd. (SYH:TSX.V; SA:NYSE.MKT) has staked six new prospective uranium exploration properties within and near the Athabasca Basin of northern Saskatchewan. The six properties comprise 147,510 hectares (364,505 acres) in the basin, which contains the world’s highest-grade uranium deposits.

The company also recently completed a small private placement financing for total gross proceeds of CA$500,000 bringing the treasury of the company to over CA$10 million in cash and stock. An independent director provided the lead order for the financing, illustrating the strong insider support for Skyharbour.

Skyharbour intends to use the financing’s proceeds for its exploration and upcoming drilling programs.

With major nations committed to reducing carbon emissions as global electricity usage continues to climb, Skyharbour President and Chief Executive Officer Jordan Trimble believes more nuclear-based generating capacity will be seen as the way to meet demand. That, he says, should drive uranium prices, and the value of exploration companies like Skyharbour, higher.

“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference,” Trimble said. “But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”

“Currently, consumption of nuclear fuel is outstripping supply, with utilities and others working down their inventories to meet the difference. But a new wave of long-term contract renewals is likely soon, and utility demand is largely inelastic in terms of uranium prices, chiefly because fuel accounts for only about 5% to 10% of the total cost of operating a nuclear electrical generating facility.”
—Skyharbour President and Chief Executive Officer Jordan Trimble

At Skyharbour, he says, the emphasis is on discovering uranium at its exploration projects. Secondarily, the company acts as a project generator and land incubator enabling outside companies to earn into the secondary projects through cash and stock payments as well as funding the advancement of the projects. Management and ownership see acquisition of Skyharbour by a large mining company to be the company’s end-goal. Trimble says the trigger for such an event would be a combination of several factors.

“Finding rich deposits of high-grade U3O8 is key, along with higher uranium prices and greater demand from utilities,” he said. “We have more-than-adequate capital to get us to that point as well as a management team whose mix of capital-market and geological expertise is suited to lead us there.”

Based in Vancouver, British Columbia, Skyharbour Resources operates several uranium-drilling programs individually, or participates jointly, on over 385,934 hectares (953,663 acres) in northern Saskatchewan’s uranium-rich Athabasca Basin. It is one of the largest project portfolios in the region.

Its single-largest effort is the Moore Uranium Project, which it acquired from Denison Mines, a large strategic shareholder of the company. Moore is an advanced-stage uranium exploration property with high-grade uranium mineralization. It is located in the Maverick Zone, 15 kilometers east of Denison's Wheeler River project and 39 kilometers south of Cameco's McArthur River uranium mine. Moore has returned drill results of up to 6.0% triuranium octoxide (U3O8) over 5.9 meters including results of 20.8% U3O8 over 1.5 meters at a vertical depth of 265 meters.

In a joint venture with Orano Canada Inc., Skyharbour has a 24.5% interest in the Preston Project. It also has a 15% interest in the East Preston Project as part of a joint venture with Azincourt Energy. Preston and East Preston are large, geologically attractive properties near Fission Uranium's Triple R deposit and NexGen Energy's Arrow deposit.

In addition to having active partners at its Hook Lake Uranium Project, its Mann Lake Uranium Project and its Yurchison Project, the company also has eight other projects: South Falcon Point, Riou River, Pluto Bay, Wallee, Usam Island, Foster River, and South Dufferin.

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Disclosure:
1) Evan Cooper compiled 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. 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., a company mentioned in this article.

( Companies Mentioned: SYH:TSX.V; SA:NYSE.MKT, )