Prospect Generator in Position for Uranium Turnaround

Source: Maurice Jackson for Streetwise Reports 03/16/2019 Ross McElroy of Fission 3.0 sits down with Proven and Probable’s Maurice Jackson to discuss the state of the uranium market and his company’s myriad projects in Canada’s prolific Athabasca Basin. Maurice Jackson: Joining us for a conversation is Ross McElroy, the COO and chief geologist for Fission 3.0 Corp. (FUU:TSX.V; FISOF:OTC.MKTS): A Uranium Project Generator and Property Bank. Ross McElroy, glad to have you back on the program to share the value proposition of Fission 3.0. Before we begin, Ross, I’d like to begin with some basic fundamentals regarding uranium. For someone new to the uranium sector, what is uranium, and where is it used? Ross McElroy: Uranium is really all about energy. The way we use uranium is for nuclear fuel. That’s basically the fuel that runs reactors. Globally nuclear power constitutes between 15% and 20% of the electrical requirements. That’s really where the majority of the uranium is used. There is some uranium that’s used for strategic purposes on a country by country basis, more for the Department of Defense reasons. But really, the vast, vast majority of uranium is used to fuel nuclear reactors. Maurice Jackson: Provide us with some metrics on how abundant uranium is in the Earth’s crust, and correlate that to the average grade that is found versus the grade that is needed to define an ore deposit in a future mine? Ross McElroy: Well, uranium is actually one of the most abundant elements in the … Continue reading

Target Price Increased on Oil & Gas Company 'Poised for Continued Growth'

Source: Streetwise Reports 03/14/2019 A Raymond James report provided reasons for the upward revision and detailed areas of potential growth for this Texas-based entity. In a March 8 research note, analyst John Freeman reported that Raymond James increased its target price to $24 per share from $22 and reiterated its Strong Buy recommendation on Kimbell Royalty Partners LP (KRP:NYSE), whose stock is currently trading at around $18.15 per share. “We remain highly confident in Kimbell’s long-term outlook, particularly following the recently completed acquisitions last year and the roughly $151 million deal with Phillips Energy/EnCap set to close later this month,” Freeman explained. Specifically, the analyst noted, highlights going forward are the limited partnership’s (LP’s) mineral interest business model, the low declines rates of its proven developed producing (PDP) reserves base and its solid track record in acquiring accretive assets. Raymond James anticipates “continued strength in operator activity on Kimbell acreage along with an improved commodity price environment,” added Freeman. He noted two major areas in which Kimbell could grow. One is acquisitions. Kimbell’s management has stated it is looking to make accretive acquisitions regardless of size and currently is reviewing about 30–50 possible transactions of a smaller scale, in the $10–20 million range. However, because competition for mineral assets in key resource plays is increasing, Raymond James expects to see Kimbell making and structuring deals in this market creatively, such as partnering with smaller firms, such as in a joint venture arrangement, to improve the economics. The second area of … Continue reading

Uranium-Vanadium Producer Releases Results from 'Seminal Year,' 2018

Source: Streetwise Reports 03/13/2019 One of the company’s major new initiatives related to vanadium, thanks to stronger prices. Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American) reported in a news release its full year 2018 financial and operational results. During the year ended Dec. 31, 2018, this uranium-vanadium company generated $31.7 million of revenue, yielding a gross profit of 39%, or $12.4 million, from its mining and milling activities. The company experienced a net loss for the year of $25.4 million. As for recoveries of uranium (U3O8), the year’s total was 917,000 pounds (917 Klb), 424 Klb of which were for third parties. In terms of U3O8 sales, the company sold 650 Klb at an average realized price of $47.37 per pound ($47.37/lb). Four hundred Klb of those were sold per existing contracts at an average price of $61.30/lb. The remaining 250 Klb were sold into contracts based on spot market prices, at a weighted average price of $25.07/lb. As of year-end 2018, Energy Fuels had $52 million of working capital, including cash and cash equivalents. It had $41.7 million in marketable securities and about 430 Klb of uranium concentrate inventory. Of note during 2018, Energy Fuels participated in petitioning the U.S. federal government to conduct a Section 232 investigation into the effects of uranium imports on domestic national security. Consequently, the U.S. Department of Commerce initiated such an inquiry, the results of which are pending. Further, in 2018, Energy Fuels began recovering vanadium from the pond solutions at its White Mesa Mill. … Continue reading

Technical Analyst Sees Signs of Upside Breakout on Small-Cap Oil & Gas Firm

Source: Clive Maund for Streetwise Reports 03/12/2019 Technical analyst Clive Maund explains why he expects this company’s shares to break out. BNK Petroleum Inc. (BKX:TSX; BNKPF:OTCQX) has put in a disappointing performance since we went for it about a month ago—it has refused to break out of its downtrend and has instead dropped to a new low, although not by much, but the good news is that buying on huge volume has started to kick in, which we can see on its latest 3-month chart below. In particular there were two up days on huge volume at the start of this month that, together with the curious high volume day in the middle of February that looks like a “cross trade” give rise to the suspicion that something is going on here—it looks like some powerful buyer is taking a position—and it is definitely worth noting here that there has been a big volume buildup in the US traded stock since the start of the year, with the On-balance Volume line surging in recent weeks, and the chart for this market, shown lower down the page, has been added later after the close of trading on Monday 11th. This action is viewed as greatly increasing the chances that the upside breakout that we have been looking for is going to occur soon. On the 1-year chart you can see why we are expecting an upside breakout soon—the large bullish Falling Wedge shown on this chart is now closing up with … Continue reading

Small-Cap Energy Firm a 'Strong Buy'

Source: Clive Maund for Streetwise Reports 03/12/2019 Technical analyst Clive Maund charts this small-cap energy company and explains why he sees it as a strong buy. The decision to take profits on at least half of our holding in Torchlight Energy Resources Inc. (TRCH:NASDAQ) on 23rd February turned out to be a good one, because it lost nearly 40% of its value peak to trough on the heavy reaction that soon followed. Actually we were a day early taking profits and would have got a better price the next day, but it was still the correct decision. So, we got the expected reaction, but we are going to be a day late buying it back, because it turned higher on Friday due to investors being stoked by the company announcing before the open on Friday that it would be hosting a conference call on 22nd March to discuss the Orogrande Basin project, and as you may recall this is an exciting project because Maverick Operating has determined, on Torchlight’s behalf, that there is a significant hydrocarbon system in this basin. So we can expect investor interest to build ahead of the conference call, and if the call gets investors excited we may even see a spike in the share price immediately after (which we of course would sell into). Our 3-month chart below shows that Torchlight is nicely set up for another run that could easily take it well past the February peak—it is just above a quite strong support … Continue reading

Coverage Initiated on Gulf of Mexico Pure Play Oil & Gas Company

Source: Streetwise Reports 03/11/2019 A Stifel report discussed the positive attributes of this Texas-based exploration and development corporation. In a March 8 research note, analyst Michael Scialla reported that Stifel initiated coverage on W&T Offshore Inc. (WTI:NYSE), a Gulf of Mexico pure play, oil & gas explorer and developer, with a Buy rating and a $10 per share price target. This compares to the company’s current share price of $5.24. The company’s assets include 330,000 net acres, 250,000 on the continental shelf and 80,000 in deepwater, the analyst relayed. W&T Offshore’s proven reserves as of year-end 2018 were 84 million barrels of oil equivalent, made up of 47% oil, 12% natural gas liquids and 41% natural gas. “W&T offshore exposes investors to one of the strongest free cash flow and debt-adjusted production growth per share profiles in our small and mid-cap exploration and production universe,” Scialla commented. “The company is well positioned to augment this growth with accretive acquisitions in a region where high-quality assets will solicit a short list of competitive bidders.” Having developed offshore assets for 35 years, W&T Offshore has history and experience on its side, Scialla highlighted. The oil and gas company is proving naysayers wrong by continuing to show that Gulf of Mexico assets can compete with shale. For instance, it drilled more than 40 wells since 2020 with a greater-than-90% success rate. “The proved reserves assigned to the 21 wells WTI completed between 2013 and 2017 were more than double the company’s predrill estimates … Continue reading

Outperform Rating Reiterated on Denver-Based Oil & Gas Company

Source: Streetwise Reports 03/07/2019 A Raymond James report discussed the outlook for this energy firm in 2019. In a Feb. 28 research note, analyst John Freeman noted that Raymond James’ thesis on SM Energy Co. (SM:NYSE) “focuses on the company’s high-quality Howard County assets that have yielded some of the best results in the area to date in the highest oil-cut county in the Midland Basin. Through shifting capital out of the Bakken/Williston and Powder River Basin assets and into its Midland Basin program, SM has positioned itself to realize much of the upside to our bullish oil call in 2019/2020.” Freeman also reported that Raymond James updated its estimates on SM Energy, accounting for a weaker-than-anticipated development program and, thus, the expectation of slower growth, in 2019. “SM Energy targets the Midland Basin again this year, dedicating $1,035 million to its total program at the midpoint of guidance,” Freeman relayed, which compares to Raymond James and the Street’s projections of $1,060 million and $1,050 million, respectively. The company, when it delivered its Q4/18 earnings report, guided to lower estimated volume growth in 2019 than consensus’ expectation, which resulted in its share price decreasing 14%. SM Energy’s “total/oil guidance of ~127/55 Mboe/d yields ~6%/8% growth y/y, [is] coming in much weaker than Street forecasts expecting ~136/62 Mboe/d (~13%/22% y/y growth),” Freeman noted. “An inconsistent well POP cadence and year-end drilled-but-uncompleted well count attribute to the weak volumes relative to Street models.” Overall in 2019, SM Energy expects to complete 100 … Continue reading

Energy Storage Maker Partners with Solar Cell Firm to Target European Residences

Source: Streetwise Reports 03/06/2019 The two firms will collaborate to sell a home energy solution that encompasses both AC and photovoltaic power. Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) announced in a news release that it entered into an exclusive agreement with Hanwha Q CELLS GmbH to market, sell and distribute Eguana’s Enduro home energy storage system, under the Q CELLS brand, in the European Union, Switzerland and Norway. Hanwha Q CELLS GmbH, the German subsidiary of South Korea’s Hanwha Q CELLS Co. Ltd., is a large solar cell and module manufacturer, according to the release. Also, according to EuPD Research, it was the market leader in Germany’s solar module market in 2018, during which it completed installations for more than 15,000 customers. “This partnership is a natural fit for both companies,” Eguana CEO Justin Holland said in the release, referring to his company and Hanwha Q CELLS GmbH. “Home storage systems are included in over 50% of new solar systems currently sold in Germany, and standard solar plus storage packages support the fastest market penetration potential.” Eguana’s Enduro is an AC-coupled option that allows homeowners to use their own photovoltaic-generated electricity whenever they need it. This capability lowers utility bills and also provides emergency backup power via an integrated power outlet. “The Eguana Enduro is the product that best exemplifies our commitment to best-in-class products, quality and reliability for our consumers and Q PARTNERS,” Vincent Lim, head of business development and system solutions at Q CELLS, said in the release. Under … Continue reading

Solar Energy Company Completes Project Milestones

Source: Streetwise Reports 03/05/2019 NYC’s first community solar program figures among the projects, the company says. UGE International Ltd. (UGE:TSX.V; UGEIF:OTC) recently completed several solar project milestones in key markets located in three continents, it announced in a February 28 press release. First among UGE’s list of new milestones is what the Toronto-based company described as “the first community solar project developed in New York City.” The system–called “The 505 Carroll St. project”–started producing clean energy in early February and has a capability of generating 127,000 kilowatt-hours of electricity per year, the company explained. That amount of clean energy should offset the emissions of carbon dioxide produced by driving approximately 220,000 miles, it noted. “This project sets the tone for UGE being an active participant in the New York community solar system market, an opportunity that UGE expects to grow rapidly in the coming years,” the company added. On the other hand, UGE helped a technology solutions client to reach commercial operations for two ground mount solar projects located in the state of Maryland, with a combined capability of generating 4.6 megawatts of clean energy. Each megawatt consists of one million watts of electricity. “UGE was brought in to help the project owner (to) successfully reach this milestone within a tight 2018 timeline,” it explained. From January to February, UGE also reached “substantial completion” of 5 of its 15 sites in Peterborough, a city in Central Ontario, Canada. In all the five sites, UGE was responsible for all phases, from … Continue reading

Blue Sky Uranium Corp.: Near-Term Production Potential + Uranium/Vanadium Resource Expansion + PEA

Source: Peter Epstein for Streetwise Reports 03/04/2019 Peter Epstein of Epstein Research profiles a uranium explorer that just released a PEA. This year, 2019, could be the year that long-term uranium contract prices blast through US$30/lb, US$35/lb and hit US$40/lb. Before Japan’s Fukushima Daiichi disaster, the contract price was US$73/lb. That was eight years ago. Many analysts think that the average global all-in cost of uranium production is ~US$40/lb, and that the incentive price to get a major uranium project off the ground is closer to US$60–US$65/lb. Spot uranium prices have moved from a low of ~US$17.75/lb in November 2016 to ~US$28.5/lb today, up 60%. But even a 60% advance has done nothing for most uranium juniors. Over the past few years, everything on the supply and demand sides of the equation has moved in favor of higher prices. Below is a chart showing supply cuts since 2016 totaling 30-33 million lb/year. Most analysts believe more cuts are coming. In addition, several mines are nearing the ends of their lives. Both KazAtomProm’s and Cameco’s cuts will extend into 2020 (unless the uranium price rebounds significantly before then). As 5–10 year contracts struck years ago continue to roll over, utilities will be forced back into the contract market. On the demand side, China is building new reactors at a frenzied pace, see chart below. Japan is returning to the market, slowly but surely. Canadian giant Cameco has shut down its largest mine and is buying uranium in the spot market, 11-15 … Continue reading