Junior Gold Stock 'On the Up'

Source: Clive Maund for Streetwise Reports 10/11/2019 Technical analyst Clive Maund charts a junior explorer and explains why he sees it as a speculative buy. Although we are generally aiming to gravitate towards the large and mid-cap gold stocks during the early stages of the sector bull market, it is worth considering smaller stocks from time to time, if they measure up fundamentally and technically. Goldcliff Resource Corp. (GCN:TSX.V) is one such stock, and it has just successfully completed a round of financing. On its latest 21-month chart we can see that about a week ago it tried and failed to break out of a large Cup & Handle base pattern. This failure was not negative, for several reasons. One is that the attempt occurred on strong volume, which is bullish, especially as this was the culmination of a build up in upside volume for a couple of months prior to it. Another is that the reaction back into the base was on much lighter volume—so it looks like it needs to do a little more work in the base pattern before it makes a sustainable breakout. Several factors support a successful breakout attempt soon. One is the buildup in upside volume already mentioned, another is the strong Accumulation line resulting from this, and still another is moving averages being in bullish alignment because the stock is trending higher. We can see the breakout attempt and subsequent reaction back in more detail on the 6-month chart. The long-term 18-year chart … Continue reading

Energy Stock Is 'Looking to Break Out of Large Base'

Source: Clive Maund for Streetwise Reports 10/11/2019 Technical analyst Clive Maund explains why he believes this company with projects in Thailand and Indonesia is about ready to start another upleg. Pan Orient Energy Corp. (POE:TSX.V) presents an overall positive picture of a stock that is probably on the verge of breaking out of a large base pattern. On its 6-month chart we can see that it is definitely in an uptrend, within which it has been consolidating for about 10 weeks now. The sharp intraday drop about a week ago, which left behind a bullish “dragonfly doji” on the chart, marks the likely end of the correction / consolidation phase, and with the 200-day moving average pulling up beneath the price, it looks about ready to start another upleg. The recent volume pattern is favorable, with good upside volume that drove the accumulation line to new highs, a positive sign. The 10-year chart reveals that a large Double Bottom formed in Pan Orient from early 2016 through late 2018, and the price now appears to be consolidating ahead of an attempt to break out of the entire base pattern which will be signified by a breakout above the resistance level shown which extends up to a little above C$2.50. It is regarded as a good sign that Pan Orient has only reacted back modestly as the price of oil has reacted back quite sharply to an important support level shown on the 6-month chart for Light Crude below that has … Continue reading

East-West Trade War: Never Take a Knife to a Gunfight

Source: Michael Ballanger for Streetwise Reports 10/10/2019 Sector expert Michael Ballanger’s take on this week’s news from the financial markets informs his most recent investment decisions. It’s a funny thing that happens when the stress of financial insolvency bubbles up to the surface. Decisions once considered “routine” (like brushing one’s teeth or walking one’s dog) suddenly have life-or-death outcomes, complete with cold sweats, sleepless nights and self-prescribed medicinal relief. Whenever I turn on the financial news stations, such as Fox, Bloomberg or CNN, I get the impression that I am watching Kabuki theatre, with exquisitely-designed puppets playing out exquisitely crafted scripts. I am immediately faced with the ageless problem of whether or not to consider the content “news,” or should I view it as simple “entertainment.” By example, the saber-rattling of the United States of America in its anti-China rhetoric is playbill material of the highest order. You have in the red corner the aging heavyweight champion, long seated on the throne of global military and economic dominance, while in the blue corner, you have the spry young contender, hungry from decades of communist suppression and poverty with a highly motivated populace and a powerful and rapidly growing military. As much as the world may loathe it, it appears that the bell is soon to sound and the battle for global supremacy is about to begin. The problem lies not in the war itself but in the collateral damage about to be inflicted upon the those close to the battlefield. … Continue reading

Target Price Raised on 'One of the Highest-Quality Stories' in Oil & Gas

Source: Streetwise Reports 10/09/2019 The changes made and the reasons for them are detailed in a Raymond James report. In an Oct. 8 research note, analyst Justin Jenkins reported that Raymond James raised its target price on Phillips 66 (PSX:NYSE) to $120 per share from $117 “on higher conviction in earnings quality/outlook.” Currently, the energy company’s share price is around $102.71. Raymond James expects Q3/19 to be another strong quarter for Phillips 66 and as such, increased its earnings per share (EPS) forecast on the company to $2.55 from $2.30. Similarly, due to recent strength in refining margins, the investment bank boosted its Q4/19 EPS estimate to $2.03 from $1.78, which is above consensus’ projected $1.97 EPS. Jenkins described Phillips 66 as a “high-quality story.” He noted it has “strong cash-generating assets that support growth in the higher-value Midstream and Chemicals segments to drive earnings power higher over time.” “Importantly, while the growth outlook remains solid, we also believe the strength of the refining assets that can be realized in the coming years remains under appreciated. With an excellent management team that has a keen focus on continued discipline in capital allocation and business optimization, we view PSX as a core holding,” Jenkins stated. Raymond James has an Outperform rating on Phillips 66. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities … Continue reading

Great Bear's Drills Creating 'Large Continuously Mineralized Gold Zone' in Red Lake District

Source: Maurice Jackson for Streetwise Reports 10/09/2019 Chris Taylor, CEO of Great Bear Resources, speaks to Maurice Jackson of Proven and Probable about what the drills are turning up at the Dixie Gold Project in Ontario’s Red Lake District. Maurice Jackson: Joining us for our conversation is Chris Taylor, the president, director and CEO of Great Bear Resources Ltd. (GBR:TSX.V; GTBDF:OTCQX). Readers should note last month we conducted a very thorough, comprehensive interview with Mr. Taylor, highlighting the value proposition before us in Great Bear Resources. Great Bear Resources has some important updates for current and prospective shareholders regarding the company’s continued progress from the ongoing 90,000-meter drill program on his 100%-owned Dixie Gold Project in the Red Lake district of Ontario. Before we address today’s exciting press release, Mr. Taylor, for someone new to the story, please introduce us to Great Bear Resources and what is the opportunity you present to the market? Chris Taylor: Great Bear is a Canadian gold-focused exploration company and our project, the Dixie Property, is located in one of Canada’s best high-grade gold mining jurisdictions. That’s the Red Lake area of the province of Ontario. The Dixie Gold Project is 100% owned, and it’s located immediately adjacent to a highway beside power lines and about a 20-minute drive from other existing gold mines in this area. In addition to that, it’s an infrastructure-rich, high-grade gold project with gold results that go right to the surface beside a highway. Maurice Jackson: Mr. Taylor, we have … Continue reading

Analyst: Royal Gold's 'Q1 FY20 Sales Top Expectations'

Source: Streetwise Reports 10/09/2019 The details regarding those metals sales are provided in a BMO Capital Markets report. In an Oct. 8 research note, BMO Capital Markets analyst Andrew Kaip reported that Royal Gold Inc.’s (RGLD:NASDAQ; RGL:TSX) Q1 FY20 revenue was higher than anticipated and costs, lower. Accordingly, “we expect positive revisions to Q1 FY20 earnings and cash flow,” he added. Kaip highlighted the U.S. firm’s sales during the quarter, which amounted to about 60,000 ounces (60 Koz) of gold equivalent. The total was 13% higher than BMO’s estimate despite expectations for lower streaming sales resulting from production limitations at Mt. Milligan during calendar Q1/19. The total gold equivalent ounces sold with respect to Royal Gold’s streaming agreements constituted 50 Koz gold, 510 Koz silver and 1,100 tons of copper. Of the three metals, only gold sales were higher, thus primarily accounting for the beat. The reason for that was a drawdown and sellout of gold inventory, leaving the company with 18 Koz of the precious metal currently in inventory. Royal Gold intends to release its Q1 FY20 results on Nov. 6, 2019, after the market closes and hold a conference call the following day at noon EST. BMO has a Market Perform rating on Royal Gold. It is currently trading at around $129.88 per share. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her … Continue reading

Natural Gas Midstream, Infrastructure Firm to Acquire Oil Refinery

Source: Streetwise Reports 10/09/2019 The pros and cons of the deal are discussed in an iA Securities report. In an Oct. 8 research note, iA Securities analyst Elias Foscolos reported that Tidewater Midstream and Infrastructure Ltd. (TWM:TSX; TWMIF:OTCMKTS) entered an agreement to acquire Husky Energy’s Prince George Refinery (PGR) for about $277 million. The deal is expected to close in Q4/19. IA Securities wants to wait and see how this “bold acquisition” plays out for Tidewater, Foscolos indicated. On one hand, he pointed out, Tidewater “should benefit from high crack spreads making the acquisition attractive.” Recent spreads averaged about $50–55 per barrel ($50–55/bbl) whereas Tidewater used a $44/bbl calculation in determining annual EBITDA contributions from PGR would be around $75 million. This difference constitutes upside for Tidewater as crack spreads are expected to stay higher for the ensuing 12 months and the break even point for the company is an estimated $30/bbl barrel, according to iA estimates. On the other hand, Foscolos highlighted, Tidewater’s purpose in doing the deal with Husky is to help delever its balance sheet to two and a half to three and a half times. Because refining is a different business segment for Tidewater and deleveraging relies on the acquired asset’s future performance, the strategy is risky. Due to that heightened risk, iA Securities trimmed its target price on Tidewater to CA$1.75 per share from CA$1.80. In comparison, the energy company’s share price today is around CA$0.98. Also, Tidewater is financing the PGR acquisition with debt, … Continue reading

Nordic American Benefiting from Exceptionally Strong Tanker Market

Source: Streetwise Reports 10/08/2019 Shares of Nordic American Tankers are trading 16.5% higher today setting a 52-week intraday high stock price as the company reported great demand for its Suezmax oil tankers. Hamilton, Bermuda-headquartered international tanker company Nordic American Tankers Ltd. (NAT:NYSE) announced in a letter to shareholders and investors that the anticipated upswing in the tanker market has come to fruition. The release referenced that just two weeks ago the company advised that there would be strong market improvement for the firm’s Suezmax tankers. The company wrote in the release, “We have for a long time informed you of this anticipated upswing in the tanker market…Seeing is believing and if anyone had doubts, last week, the international shipbroking firm of Clarkson Platou Research reported the largest week-on-week increase in the history of their freight index. From Thursday to Friday last week, reported Suezmax rates jumped 60% on the day and 400% on the month!” Nordic American states in the report that “its uniform fleet of 23 Suezmax tankers have 21 units trading in the open spot market, ready to benefit from strengthening freights.” The firm indicates that presently “the Suezmax spot market is reported to about $68,000/day, and rising and the NAT operating costs are about $8,000/day per ship.” The company noted that “a seasonal upturn was already in the making. However, the additional combination of increased demand from refineries around the world ramping up their production to supply low sulphur fuels for 2020 and reduced supply of new … Continue reading

Brazil Mine 'Demonstrates Growth is Real'

Source: Streetwise Reports 10/08/2019 Conclusions from a recent site visit are delivered in a CIBC report. In an Oct. 4 research note, analyst Anita Soni reported that CIBC raised its valuation of Yamana Gold Inc.’s (YRI:TSX; AUY:NYSE; YAU:LSE) Jacobina mine in Brazil to $968 million from $925 million following a visit to the site. “The mine showed well, with phase 1 optimization on track to be completed ahead of the scheduled mid-2020 commissioning and on budget of $5.3 million,” Soni commented. With the changes already made, the mill achieved 6,400 tpd (6.4 Ktpd) in Q3/19. The goal is 6.5 Ktpd. That rate would increase production to 180,000 ounces (180 Koz) by 2022, noted Soni. Yamana is considering a phase 2 expansion to 7.5–8.5 Ktpd, which CIBC incorporated into its model on the company. This throughput rate would boost production to 200–225 Koz in 2022-2023. Capex for phase 2 is now an estimated $75 million, down from about $150 million. The company is targeting Q1/20 for releasing the phase 2 prefeasibility study. “We believe the company may be able to achieve the 200–225 Koz level at 7.5 Ktpd with higher throughput grade of 2.5–2.6 grams per ton (2.5–2.6 g/t), currently at about 2.4 g/t,” Soni highlighted. During the visit, management emphasized the exploration potential and long-term expansion opportunities at Jacobina, Soni reported. The current reserve estimate is 2.28 million ounces at 2.4 g/t, and all deposits there remain open along strike and downdip. Recent drill intercepts from the Canavieiras and Morro … Continue reading

Avrupa Minerals Options Alvalade VMS Project to Trafigura-Mubadala JV Company

Source: The Critical Investor for Streetwise Reports 10/07/2019 The Critical Investor digs into what the proposed joint venture means for this junior project generator. Despite being a hybrid prospect generator, meaning self-funding projects and also being funded by joint venture (JV) partners, Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) has finally succeeded in signing a nonbinding letter of intent (LOI), on Oct. 1, for a nice JV deal on its Alvalade project in Portugal. The deal is with a Spanish private mining company called Minas de Aguas Teñidas, S.A.U. (MATSA), owned in joint venture by juggernauts Mubadala and Trafigura. This is an important development, as Avrupa wasn’t exactly in the position to raise enough cash to drill out Alvalade themselves, as management estimated the costs of a decent program on all targets at about CA$10 million (CA$10M). The new JV doesn’t provide this amount of financial budget either, but the initial CA$2.4M is enough for a solid start, and prevents a lot of dilution for Avrupa, whose market cap has gone down to a very tiny CA$3.3M. A financing of that size would have added 73% dilution. Share price; 3-year time frame After a decent start to 2019, with encouraging drill results, the company has had to wait for a new exploration permit, which is taking longer than expected. Also, the general base metal sentiment went down as the US-China trade war intensified and the global economy started lagging, making things difficult for Avrupa on the financing front. However, with this … Continue reading