EMX Royalty's Approach to Value Creation

Source: Maurice Jackson for Streetwise Reports 04/19/2019 David Cole, CEO of EMX Royalty, speaks with Maurice Jackson of Proven and Probable about his company’s three-pronged business model and projects that span the globe. Maurice Jackson: Welcome to Proven and Probable. Joining me today is the president and CEO of EMX Royalty Corp. (EMX:TSX.V; EMX:NYSE.American), David Cole. We’re at the Oxford Club Investment U Conference 2019, in Saint Petersburg, Florida. Mr. Cole, welcome. David Cole: Thank you, Maurice, always a pleasure to be here, and also a pleasure to be back at the Oxford Club in Florida. Maurice Jackson: Full disclosure, we are proud shareholders and EMX Royalty is a sponsor of Proven and Probable. In regards to being a shareholder, we just purchased shares today, at $1.15. And also my sons Brayden and Bryce (twins) when they were 6, and my son Carson at the age of 8, have been shareholders of EMX Royalty when the company was known as Eurasian Minerals. Mr. Cole, you just conducted a presentation sharing the value proposition regarding EMX Royalty. Talk to us about the three-prong approach, because a lot of investors overlook the value proposition, and it really begins with the three-prong approach. David Cole: Our business model consists of a time-tested process using a three-prong approach consisting of Royalty Generation, Royalty Acquisition and Strategic Investments as the basis for value creation for our shareholders. EMX Royalty developed and fine-tuned our business model over the course of the 16 years that we’ve been … Continue reading

Allegiant Completes Fifth Drilling Project in Nevada

Source: Streetwise Reports 04/19/2019 Allegiant Gold is assessing six “discovery potential” projects in Nevada. Allegiant Gold Ltd. (AUAU:TSX.V; AUXXF:OTCQX) announced it has completed drilling at its Adularia Hill gold project in Nevada. The Adularia Hill drilling consisted of 21 holes, totaling 3,170 meters. Assays of the drilling are pending, the company added. The Adularia Hill target is the fifth of six gold exploration projects Allegiant owns and plans to drill in Nevada. The company said the six projects have “discovery potential” and highlighted that they are located in a “world-class gold mining jurisdiction.” Allegiant wholly owns 11 gold projects in the United States, eight of which are in Nevada. Allegiant discovered the Adularia Hill target during geologic and alteration mapping followed by surface sampling of outcrop and float. “Thirty of the 140 samples contained gold values ranging from 0.1 to a maximum of 1.5 g/t gold. Gold occurs in and along structures and silica ribs with associated stockworks of quartz and adularia veining,” the company explained. No previous drilling was performed at the Adularia Hill target, it added. Allegiant, on the other hand, announced that the assays from its previous drilling project carried out at Monitor Hill, Nevada, showed results that “are considered too low-grade.” “Drilling at Monitor Hills encountered broad zones of anomalous gold but better grade gold was only present in narrow 1.5 to 3 meter intervals. Overall the drilling results are considered too low-grade, and in the context of prioritizing expenditures on Allegiant’s large portfolio of prospective … Continue reading

Coverage Initiated on 'Almost Famous' Energy Firm with Thermal Oil, Natural Gas Assets

Source: Streetwise Reports 04/18/2019 The reasons why this stock is attractive now are presented in a CIBC report. In an April 16 research note, analyst Trevor Bolland reported that CIBC initiated coverage on Athabasca Oil Corp. (ATH:TSX; ATI:FSE) following its “major transformation over the past several years, which has substantially changed the outlook for the stock and gives rise to our constructive view.” CIBC assigned to the corporation an Outperformer rating and a CA$1.35 per share target price that compares to CA$1.05, the current trading price. This discounted valuation, Bolland noted, makes it an advantageous time for investors to get into or build their position in the stock. The analyst named three important factors that underlie CIBC’s positive thesis on Athabasca Oil. One, the company is “uniquely positioned” among small and mid-cap exploration and production companies, Bolland described. This is due to its self-funded asset base, its thermal business with low declines and a modest sustaining cost and its high-quality, liquids-rich natural gas business that generates “peer-leading netbacks.” Two, Athabasca Oil’s long-term sustainability is significantly improved after the company’s recent work to reduce its cost structure. Three, the energy company has both short- and long-cycle growth assets, the combination of which affords “marked forward optionality,” Bolland noted. Four, Athabasca Oil is now, for the first time, generating free cash flow. “Combined with an influx of cash from its recent midstream monetization,” explained Bolland, “it is in the enviable position of having excess cash to allocate to growth, share buybacks and/or … Continue reading

Oil & Gas Company Sees Fruits of Process Refinements, Efficiencies

Source: Streetwise Reports 04/18/2019 An update on the energy firm’s Q4/18 well production was reviewed in a Stifel report. In an April 15 research note, Stifel analyst Derrick Whitfield reported that Roan Resources Inc. (ROAN:NYSE) updated its previous report on Q4/18 well results, “highlighting the low decline rates associated with its pressure management techniques.” During Q4/18, 15 Roan wells achieved an IP120 of 1,036 barrels of oil production per day (1,036 boe/d) at 48% oil, compared to an IP90 of 1,089 boe/d at 49% oil from the same group of wells. The continuing payback resulting from refined methods, aimed at improving oil recovery, is one of two current catalysts, Whitfield indicated. The success of Roan’s efforts was demonstrated in the company’s cumulative Q4/18 production, which was 15% greater than the average production during the three prior quarters. The outperformance, the analyst indicated, should continue over time. The second catalyst is the ongoing rewards from continued cost reduction, noted Whitfield. “Management announced efficiency gains, coupled with declining service cost, equate to a cost savings of approximately $1 million per well in 2019,” he added. Whitfield also reported a change in Roan’s executive leadership. Joseph Mills, a Roan board of directors member, will act as interim CEO and conduct the search for someone to permanently assume the role following the resignation, effective April 12, 2019, of Tony Maranto, board chairman and company CEO and president. Maranto purchased 20,000 Roan shares on March 26, 2019. Management commented Maranto did not leave due to … Continue reading

GFG Moves Forward on Two Fronts

Source: Bob Moriarty for Streetwise Reports 04/18/2019 Bob Moriarty of 321 Gold explains why he sees this explorer as undervalued and details the ways it is advancing its properties. In my latest book I try to make the point that at resource stock market lows, you can’t give shares away. That is all by itself a great indicator of where we stand in the cycle. We are now easing into the weakest seasonal period of the year for gold and silver and many companies are selling near their yearly lows. Gold and silver seem to have bottomed in late summer of 2018. Platinum tumbled to a new multi-year low in February of 2019. Shares generally are higher, some much higher but I think a correction would shake out the remainder of the bulls so I think we will be weak into mid-summer before gold and silver start to react to the Great Reset in progress. When I go through the stocks I own and follow I am astonished at how cheap they seem. It’s not the same as 2001 and 2009 when a hundred companies were selling for less than the cash they have on hand but there appears to me to be a giant disconnect between price and value. Harvest season is approaching and there is a lot of low hanging fruit. It’s hard for me to believe prices to be so cheap for so long. It won’t last. I’ve written before about an interesting project in Wyoming named … Continue reading

Frank Holmes: Why Gold Has Been the Second Best Asset Class for the Last 20 Years

Source: Streetwise Reports 04/18/2019 Frank Holmes, CEO and chief investment officer of U.S. Global Investors, speaks to Streetwise Reports about the fundamentals for gold, his company’s funds and a handful of companies on his radar screen. Streetwise Reports: Since the beginning of the year, gold has been trading fairly narrowly in the $1,300 range. What are some of the macro factors working behind this and how do you believe they’ll affect the price moving forward? Frank Holmes: When we look at macro factors at U.S. Global—and we write about them every month, in particular the Purchasing Managers’ Index (PMI)—we try to take this complexity and simplify it by dividing it into big chunks. The first is commodities; 50% of all commodity demand is China, so China is very, very important. When you add the populations of China and India—”Chindia”—you get 40% of the world’s population. That’s a lot of food. That’s a lot of clothes. That’s a lot of airplanes they’ll be buying for India. Next we look at global trade. Interestingly enough, if you put China and America together, that’s 40% of the world’s global trade. Then we take a look at gold demand. That’s predominantly China and India, but more generally from the Middle East to Southeast Asia. Sixty percent of all gold demand is for the love trade. So we get these chunks, and we try to understand the movement of those chunks. One of the things that contributes to those big numbers is rising gross domestic … Continue reading

California Gold Mining Full Speed Ahead in Hemp

Source: Peter Epstein for Streetwise Reports 04/18/2019 Peter Epstein of Epstein Research provides an update on a mining exploration company that is diversifying into the hemp market. This article is about California Gold Mining Inc.’s latest news regarding its industrial hemp segment. I will stick to the hemp segment and not discuss the gold exploration side of the business, as there’s no new news on that front. California Gold Mining Inc. (CGM:CSE; CFGMF:OTCQB)(CGM) announced that it received a non-binding Letter of Intent (LOI) from industrial hemp consulting firm Delta Valley Logistics (DVL) for the purchase of the company’s entire production of feminized, high-CBD content industrial hemp seeds in 2019 and 2020. The proposed agreement is only for the first greenhouse that CGM is building (GH#1) on its 100%-owned Fremont property in Mariposa County, California. (See press release.) GH#1 is expected to be completed in the third quarter, and the first harvest of seeds and first revenue is anticipated in the fourth quarter. As far as I know, there are no plans for a second greenhouse. However, in my opinion only, if GH#1 is a success, and if seed demand warrants, then a GH#2 could be built next year. GH#2 (if built) would presumably be self-funded from the profits of GH#1. Delta Valley Logistics & California Gold Mining Form Partnership The LOI received by CGM expresses DVL’s intention to purchase up to a combined total of 5,000 pounds of high CBD-content hemp seeds from CGM this year and next. The pricing … Continue reading