Coverage Initiated on 'Unique Silver Exploration Story'

Source: Streetwise Reports 08/17/2019 The rationale for investing in this Canadian mining company is given in this BMO Capital Markets report. In an Aug. 13 research note, analyst Ryan Thompson reported that BMO Capital Markets initiated coverage on New Pacific Metals Corp. (NUAG:TSX.V; NUPMF:OTCQX) with an Outperform (Speculative) rating and a CA$3.75 per share target price. The stock is currently trading at around CA$2.64 per share. Thompson presented the company highlights. One, Silver Sand, New Pacific’s flagship project in Bolivia, could become a “very large, profitable project,” he wrote, based on the scale of the land package, the mineralization already discovered at the main Silver Sand area and the prospective mineralized zones. “These projected zones show characteristics similar to Silver Sand, as evidenced by artisanal mining and represent several additional drill targets to be tested,” added Thompson. Two, silver majors Silvercorp Metals and Pan American Silver invested in Silver Sand, which BMO interprets as a “vote of confidence” in the project. Three, New Pacific is on the cusp of completing a resource estimate for Silver Sand. The report is expected by year-end 2019 with a preliminary economic assessment to follow in 2020. Four, Silver Sand is a rarity in that few silver developments projects exist in the world. As such, it is a “scarce deposit with a high amount of leverage to the silver price,” Thompson commented. Five, New Pacific signed a mining production contract (MPC) with Bolivia’s state mining entity, COMIBOL, the first ever between it and a private … Continue reading

Improved Recovery Rate Spurs Target Price Increase on Gold Developer

Source: Streetwise Reports 08/17/2019 The metallurgical result and its implications are addressed in a ROTH Capital Partners report. In an Aug. 14 research note, ROTH Capital Partners analyst Jake Sekelsy reported that the final results from the metallurgical work done at Vista Gold Corp.’s (VGZ:NYSE.MKT; VGZ:TSX) Mt. Todd gold project in Australia were positive. Accordingly, ROTH increased its target price on the gold company to US$1.60 per share from US$1.40. The current share price, in comparison, is US$0.86. Sekelsky highlighted that testing resulted in recoveries in the low-90% range, “a significant increase” over the 86.4% outlined in the prefeasibility study. This recovery rate was determined from 71 samples of various grades from the main Batman deposit at Mt. Todd, “which we believe provides a representative sample of the deposit as a whole.” Next for Vista Gold, the analyst indicated, is updating the prefeasibility study, specifically the costs and foreign exchange rates within it, and incorporating the metallurgical results as well. “In short, we expect the updated prefeasibility study to feature enhanced economics relative to the existing prefeasibility study,” Sekelsky added, noting such an updated study would be the “largest” short-term catalyst for the company. Based on the recent metallurgical results, ROTH adjusted its model on Vista Gold, increasing, but remaining conservative on, the estimated average recovery rate at Mt. Todd to 90% rather than 87%, wrote Sekelsky. Also, “we believe additional upside remains via an update to foreign exchange rates utilized in the prefeasibility study.” ROTH, which considers Vista Gold … Continue reading

The State of the Financial Union

Source: Bob Moriarty for Streetwise Reports 08/16/2019 Bob Moriarty of 321 Gold makes available the first two chapters of his most recent book that delve into the current state of the economy. After being bugged unmercifully by a couple of my so-called friends, I finally sat down in early January to write a tome about investing in resource stocks. It took me sixteen days to write. And another four weeks to get the cover and layout right. I had some important charts in it that couldn’t be shrunk and still understood. A couple of days ago I was reaching for a quote that I thought I remembered from the book so I picked up one of my test copies. I read through the first two chapters and thought to myself, “Damn, this guy got it exactly right.” That was before I realized I was the person who wrote it eight months ago. One of the great advantages of getting old, other than just getting old, after all the alternative is far worse… One of the benefits of getting old is that you get to hide your own Easter eggs. That is if you can still remember when Easter is. I never did find the quote. But I did realize that what I wrote in January could have been written twenty minutes ago and not be more timely. So I thought it would be a nice idea to share it with you. This isn’t a sale pitch. If you have read … Continue reading

Exploring for Gold in Labrador

Source: Maurice Jackson for Streetwise Reports 08/16/2019 Roger Moss, CEO of Labrador Gold, sits down with Maurice Jackson of Proven and Probable to discuss his company’s exploration efforts in Labrador. Maurice Jackson: Joining us for conversation is Roger Moss, the president, director, and CEO of Labrador Gold Corp. (LAB:TSX; NKOSF:OTCQX). Glad to have you on the program to share the value proposition before us in Labrador Gold. We have a lot of ground to cover today but before we begin, Dr. Moss, please introduce us to Labrador Gold and what is the opportunity you present to the market? Roger Moss: Well, I think as the name implies, we are a junior mining company. We’re exploring for gold in Labrador. Labrador is part of a province on the eastern seaboard of Canada. It’s an area that has seen exploration in the past, but not for gold to any significant degree. So that’s one of the key factors for us is that looking for gold in under-explored terrains, where we have a good chance to find not just a gold deposit, but potentially a whole district. Myself and Sean Ryan, who is our technical consultant, between the two of us we have a lot of experience in gold exploration and specifically in discovery of gold deposits. Sean, with his discoveries up in the Yukon on the other side of Canada and myself in Namibia when I was working with Anglo-American back in the in the early ’80s. So I think that we … Continue reading

Analyst: Discovery of First Oil Is 'Company Making Event'

Source: Streetwise Reports 08/16/2019 This event, its implications and near-term catalysts are discussed in a Pareto Securities report. In an Aug. 14, 2019 research note, Pareto Securities analyst Tom Erik Kristiansen reported that Eco Atlantic Oil & Gas Ltd. (EOG:TSX.V; ECAOF:OTCMKTS; ECO:LSE) discovered its first oil at Jethro-1 on the Orinduik block in offshore Guyana and as such, Pareto increased its target price on the company to GBp170 per share from GBp120 (Eco Atlantic’s current share price is about GBp117). Kristiansen pointed out the benefits of the Jethro-1 success, which he described as a “company making event.” For one, the discovery further derisks any subsequent targets on the block, including Joe, which is expected to spud soon and has “a relatively high geological chance of success,” he wrote. Two, it makes Eco Atlantic an attractive acquisition target. Also positive for the oil/gas company is its “substantial exploration resource inventory,” highlighted Kristiansen. Unrisked gross recoverable resources for Orinduik’s tertiary fairway are an estimated 740 million barrels (740 MMbbl) and from the deeper Cretaceous targets, about 2.8 billion. These represent an aggregate resource base net to Eco of about 530 MMbbl with its 15% working interest. Further, the company looks forward to yet another potential stock moving event later this year, in addition to Joe, Kristiansen noted. That is drilling of the Carapa-1 well on a nearby block, targeting the Cretaceous section. Pareto has a Buy recommendation on Eco Atlantic. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning … Continue reading

Analyst: Market Undervalues Oil & Gas Firm with Canadian Assets

Source: Streetwise Reports 08/15/2019 A Mackie Research Capital Corp. report provided the reasons why the cheap price of this company’s stock is unwarranted. In an Aug. 9 research note, Bill Newman, an analyst with Mackie Research Capital Corp., reported that after having a “solid” Q2/19, Prairie Provident Resources Inc.’s (PPR:TSX) stock is still “incredibly cheap.” Mackie has a target price on Prairie Provident of CA$0.70 per share, which reflects a potential eight-fold gain as the company’s current share price is around CA$0.08. Newman reviewed the energy firm’s highlights from Q2/19. Quarterly production was a record high, averaging 6,386 barrels of oil equivalent per day (6,386 boe/day). It also was 24% higher than Q2/18 production of 5,146 boe/day. In terms of average production for 2019, management reiterated its guidance, between 6,100 and 6,500 boe/day. Also noteworthy, indicated Newman, was that Prairie Provident’s adjusted funds flow in Q2/19 was about $6.6 million, which exceeded Mackie’s estimate of $5.9 million. It also was more than double the Q2/19 capital expenditures of $3.2 million, which means the oil & gas company is “living within cash flow.” Given its current status and near-term developments, Prairie Provident should be valued higher, Newman purported. For one, it is generating free cash flow. Two, its most recently drilled well at Princess is “highly economic” and could pay out in under 10 months’ time. Three, the company is likely to drill two more wells this year. Four, it could have a “cash windfall from the Quebec asset arbitration process,” … Continue reading

U.S. Energy Firm's Stock at 'Good Entry Point,' Rating Upgraded to Outperform

Source: Streetwise Reports 08/15/2019 An update on this company’s valuation is provided in a Raymond James report. In an Aug. 13 research note, analyst Pavel Molchanov reported that Raymond James boosted its rating on Chart Industries Inc. (GTLS:NASDAQ) to Outperform from Market Perform, “taking a positive stance for the first time since December 2016.” The stock, currently trading near a 52-week low, “is no longer in priced-for-perfection territory,” Molchanov indicated. The stock was trading at $58.67 when the report was released and is currently at $59.36; Raymond James’ target price is $72 per share; when. Molchanov highlighted that Chart management’s anticipated 2020 upside, equivalent to an earnings per share of about $8.00–8.75, is not only uncertain but also likely unattainable. The upside is based on the company landing large liquefied natural gas (LNG) contracts, thereby generating revenue of $300–370 million. Yes, Chart will most probably land at least one of the expected contracts, acknowledged Molchanov. Yet the “U.S.-China trade war (and resulting tariff on U.S. LNG) is a headwind that will likely delay certain final investment decisions, above and beyond the macro LNG market uncertainty.” However, Chart no longer needs to attain that upside “for the stock to work,” Molchanov pointed out. This is due to its revenue mix and expected future oil prices. About 60% of the company’s revenue is linked to the energy sector and the remaining roughly 40% to non-energy industrials. Oil prices forecasted for 2020 by Raymond James at $92.50 West Texas Intermediate and $100 Brent … Continue reading

Canadian Solar Shares Shine on Sunny Quarterly Earnings

Source: Streetwise Reports 08/15/2019 Canadian Solar, which operates a portfolio of utility-scale solar operated power plants, reported higher Q2 earnings. This morning one of the world’s largest solar power companies, Canadian Solar Inc. (CSIQ:NASDAQ), announced financial results for the second quarter ended June 30, 2019. In the release the firm reported significantly higher net revenue in Q2/19 of $1,036.3 million compared to $484.7 million in Q1/19, and $650.6 million in Q2/18. The company advised that the sequential increase was primarily due to higher solar module shipments and higher revenue from the sale of solar power plants. Total solar module shipments in Q2/19 were 2,143 MW, compared to 1,575 MW in Q1/19 and prior Q2/19 guidance provided of 1.95–2.05 GW. Gross profit in Q2/19 was $182.6 million, compared to $107.4 million in Q1/19 and $159.4 million in Q2/18. Income from operations in Q2/19 was $60.7 million, compared to $6.6 million in Q1/19, and $53.9 million in Q2/18. Net income in Q2/19 was $62.7 million, or $1.04 per diluted share, compared to a net loss of $17.2 million, or $0.29 per diluted share in Q1/19 and net income of $15.6 million, or $0.26 per diluted share in Q2/18. As of June 30, 2019, the company had $981.0 million of cash, cash equivalents and restricted cash on its balance sheet, compared to $912.3 million on March 31, 2019. Q2/19 accounts receivable turnover in Q2/19 improved to 41 days, compared to 91 days in Q1/19, and inventory turnover in Q2/19 was 40 days, compared … Continue reading

Gold Project in Brazil Offers 'Simplicity and Potential Scale'

Source: Maurice Jackson for Streetwise Reports 08/14/2019 Nick Appleyard, CEO of TriStar Gold, talks with Maurice Jackson of Proven and Probable about advancing his company’s gold project in Brazil. Maurice Jackson: Joining us for a conversation is Nick Appleyard, the president, director and CEO of TriStar Gold Inc. (TSG:TSX.V). Glad to have you discuss the value proposition before us, TriStar Gold, which is focused on developing gold and delivering value. Before we delve into project specifics, Mr. Appleyard, please introduce us to TriStar Gold and the opportunity you present to the market. Nick Appleyard: TriStar Gold [has] a project called Castelo de Sonhos, which is reasonably early stage. We’ve got a scoping study we published last year—great results—and now we’ve just financed through the end of feasibility, which we’re starting now. This is what we’re here to talk about, and that’s what’s going to show the value to our shareholders, de-risk and move this very exciting project forward through the feasibility and into production in the next few years. Maurice Jackson: TriStar Gold’s projects portfolio is located in the Para state of Brazil. Take us there, and provide us with some historical context on the region. Nick Appleyard: Para state is one of the major mining locations within Brazil. There are two states in Brazil, Minas Gerais and Para, that receive 80% of the mining investment into Brazil. The government of Para has said its goal is to become the main source or main recipient of mining investment in Brazil, … Continue reading

First Vanadium Achieves Critical Process Flow Sheet Milestone for Carlin Project

Source: Peter Epstein for Streetwise Reports 08/14/2019 Peter Epstein profiles recent developments with this company that has a large vanadium deposit in Nevada, with a PEA on the way. First Vanadium Corp. (FVAN:TSX.V; FVANF:OTCQB) has a large, near-surface vanadium resource (303 million pounds, Indicated category only), with a very good grade (0.615% V2O5) in the great mining jurisdiction of Nevada. The company has 42.4 million shares outstanding & $1.7 million in cash. Its enterprise value (EV) [market cap + debt – cash] = $12.5 million = US$9.4 million. First Vanadium is fully funded through delivery of a preliminary economic assessment (PEA), expected by Q1 2020. The technical team is nothing short of world class. I can’t imagine a better team to optimize a greenfield project than this one. The company’s board, management and technical team’s core competence is in the exploration, permitting, development, construction and operation of mining projects around the globe, with over 400 years combined experience. Not only are these highly experienced professionals good at what they do, they’re passionate about it. {see August corporate presentation} The Carlin vanadium project, one of the best in North America The Carlin Vanadium project is situated on 3,608 acres in mining-friendly Elko County, in north-central Nevada, and surrounded by exceptional infrastructure. It’s road accessible from the towns of Carlin and Elko. Carlin, 7 miles away, is a major rail hub to both coasts. A power line runs within five miles of the property. There are nearby mining communities, a skilled workforce, … Continue reading