Cypress Development Partners with Lithium Extraction Firm

Source: Peter Epstein for Streetwise Reports 07/18/2019 Peter Epstein of Epstein Research delves into the reasons why he believes this development—and other developments in the lithium market—strengthen the investment thesis. Earlier this year, Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) delivered a preliminary economic assessment (PEA) on its 100%-held Clayton Valley clay-hosted lithium project in Nevada (USA). The results were strong, (all figures post-tax, in Canadian dollars [CAS$]), an IRR [internal rate of return] of 32.7%; NPV [net present value](8%) = $1.95 billion upfront capex = $645.88 million; a 40-year mine life operating at 24,000 (24K) tonnes lithium carbonate equivalent (LCE) per year. A fully funded prefeasibility study (PFS) is expected in late August or early September. After the release of this important report, management will be in a position to dive deeper into talks with a number of strategic and/or financial partners that have already expressed interest [see new corporate presentation]. The next capital raise (or, if an investment at the project level, it would not require the issuance of new shares), will fund a pilot plant bank feasibility study (BFS). The BFS is expected to be delivered in mid- to late 2020. Cypress partners with lithium extraction technology company On July 15, Cypress and privately owned Lilac Solutions announced a successful demonstration of favorable lithium recoveries from Cypress’ Clayton Valley project in Nevada. Lilac is a lithium extraction technology company based in California. Cypress’ project is a large, clay-hosted lithium deposit containing 3.835 million tonnes LCE in the NI … Continue reading

Uranium Explorer Set to Profit in Market Upswing

Source: Maurice Jackson for Streetwise Reports 07/12/2019 In this interview with Maurice Jackson of Proven and Probable, the head of this junior miner in the Athabasca Basin discusses recent developments in the uranium market and the projects his company is focused on the region. Maurice Jackson: Joining us for a conversation is Jordan Trimble, the president, director, and CEO of Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB), a preeminent uranium explorer in Canada’s Athabasca Basin. Sir, please introduce us to Skyharbour Resources, and the opportunity you present to the market. Jordan Trimble: Skyharbour is a high-grade uranium exploration and early stage development company with six projects scattered throughout the Athabasca Basin, which is in northern Saskatchewan in Canada. For those of you not familiar with the Athabasca Basin, it’s the highest grade depository of uranium in the world. Saskatchewan is ranked as the number three mining jurisdiction in the world by the Fraser Institute—so, really, it’sthe best place in the world to be looking for and developing uranium deposits. We started the company about six years ago, and what we saw was the contrarian opportunity in the uranium space to go out and really build a foundation, build a company up that would allow investors to get exposure to a couple of things. [First, we saw] an improving uranium market, so as a uranium-focused company, when the uranium price moves up, we’ll see our share price respond positively. Post-Fukushima, when we started the company, we saw an opportunity to go out and … Continue reading

McDermott Awarded Single Largest EPCI Offshore Contract for Saudi Aramco

Source: Streetwise Reports 07/10/2019 McDermott International has been awarded a US$3 billion contract for Saudi Aramco. The company will partner with China Offshore Oil Engineering Company to increase production by 300,000 barrels per day. McDermott International Inc. (MDR:NYSE) announced that it has been awarded a contract in excess of US$3 billion for Package 1 of Saudi Aramco’s Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC), a subsidiary of China National Offshore Oil Corporation. The award reportedly represents the single largest EPCI offshore contract awarded by Saudi Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development. The project includes EPCI of a gas-oil separation platform, compression and accommodation facilities. McDermott is leading the consortium with COOEC. The scope of the project includes the fabrication of over 165,000 tons consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, and over 40 miles of 36-inch oil export trunk lines along with more than 55 miles of 230kV composite subsea cables. McDermott is a fully-integrated provider of technology, engineering and construction solutions to the energy industry in both shallow water and deepwater construction. The firm designs and builds end-to-end infrastructure and technology solutions from the wellhead to the storage tank and transportation and transformation oil and gas … Continue reading

Is a Lithium Sector Rebound Coming? Is This Company Too Cheap to Ignore?

Source: Peter Epstein for Streetwise Reports 07/09/2019 Peter Epstein of Epstein Research explains why he believes this company stands out from many of the lithium explorers in Argentina. Portofino Resources Inc. (POR:TSX.V; POT:FSE) is a high-risk lithium junior with three brine projects in Catamarca province, Argentina. I say “high risk,” but that should go without saying. All lithium juniors are high risk. There are 13–14 publicly listed, pre-PFS (prefeasibility study) stage companies (Neo Lithium has completed a PFS, Millennial Lithium is expected to deliver a BFS in August) with all, or substantially all, of their properties in Argentina. But, how many of those companies are proactively moving forward? How many have good projects? Which companies still have to make substantial cash payments to complete acquisition(s)? Portofino Resources moving forward, several peers dead in the water Portofino is clearly moving the ball forward on two of its three projects, and it does not owe a lot of money to property vendors. Although it’s too early to know if the company has good assets, one of its two main projects, Hombre Muerto West (HMW), is in the single best salar in Argentina—Salar del Hombre Muerto. Last year, 18 near-surface samples were taken, plus two duplicates, on the two concessions that total 1,804 hectares. The top three samples averaged 906 mg/L Li and had a low average Mg:Li ratio of 1.8 to 1. Neighbors in and around Hombre Muerto include Livent Corp. (formerly FMC), Korean giant POSCO and Australia-listed Galaxy Resources. Within the … Continue reading

Company Named 'Top Small-Cap Growth Story'

Source: Streetwise Reports 07/06/2019 The reasons for the positive outlook are given in a Raymond James report. In a July 3 research note, analyst Praveen Narra reported that Raymond James maintained its Strong Buy rating but reduced its target price on Newpark Resources Inc. (NR:NYSE) to $12 per share from $13 (current share price about $7.18) due to the “softer U.S. oilfield and rig count.” Due to the market change, Narra noted that Raymond James now conservatively estimates a Q2/19 EBITDA of $22.5 million, a 10% reduction in 2019 EBITDA and a 9% drop in 2020 EBITDA. For Newpark, the financial services firm lowered its Q2/19 margin projection by 5% and its year-end 2019 margin by 6%. However, the analyst highlighted that growth is expected in all of Newpark’s divisions, thereby increasing margins. The company’s fluids segment, he wrote, “still has room for margin expansion as new Gulf of Mexico work and international contracts should offer strong incremental margins.” Margins should see a boost from the company’s move into stimulation chemical sales, from which it achieved its first revenue in Q2/19. “The fruits of the fluids expansion are beginning to pay off,” Narra indicated. “We model about $80 million in stim/chem sales for 2020.” The shift in its composite mats segment, which serves utilities, toward larger transmission and distribution (T&D) customers, once the transition ends, should also positively impact margins due to higher volume and longer term contracts. “For 2020, we expect topline growth of 15.2% year over year as … Continue reading

'High Growth Production Ahead' for International Oil & Gas Company

Source: Streetwise Reports 07/05/2019 The reasons for the positive outlook are presented in a Pareto Securities report. In a July 2 research note, analyst Tom Erik Kristiansen reported that Pareto Securities raised its year-end 2020 production estimate but lowered its target price on Panoro Energy ASA (PEN:OSE; 1PZ:FRA) to NOK 22 per share from NOK 23. Buy-rated Panoro is currently trading at NOK 16.70 per share. Pareto decreased its target price on Panoro to “adjust for the operator’s (BW Energy) new and more conservative estimate of the resource potential of the largest exploration prospects on the [Dussafu] block” in Gabon, explained Kristiansen. As for the energy company’s net production, Pareto expects Dussafu block output to more than double over the next three years due to Phase 2 of the Tortue development and a final investment decision of Ruche and Ruche North East, both expected this year, Kristiansen indicated. Additionally, Panoro also guided to 25% production growth at its Tunisian fields by year-end 2019, “which we find impressive considering that the asset was acquired less than one year ago (with no growth expected),” the analyst added. Pareto increased its overall production estimates on the company for 2019 and 2020 by 4% and 24%, respectively. This means Panoro could double production to 4,000 barrels of oil equivalent (4,000 boe/day) by year-end 2022 and also reduce opex by 30–40% to $15/boe. Regarding that anticipated production growth, Kristiansen highlighted that significant potential exists for derisking it as well as for further upside via exploration … Continue reading

'Early Fireworks with Attractive Acquisition' of Assets from ExxonMobil

Source: Streetwise Reports 06/29/2019 The deal and its benefits to the energy firm are addressed in a ROTH Capital Partners report. In a June 27 research note, ROTH Capital Partners analyst John White reported that W&T Offshore Inc.’s (WTI:NYSE) proposed acquisition of assets from ExxonMobil for $200 million is “very positive.” Those assets include oil and gas producing properties in the eastern Gulf of Mexico that generated $70 million in operating cash flow in 2018 along with related onshore processing facilities. White highlighted that in terms of benefits of the deal to W&T Offshore, the acquisition will nearly double its Proven reserves from 84,000,000 barrels of oil equivalent (84 MMboe) to 158 MMboe. It will boost its pro forma production by about 59%, to 53,149 barrels of oil equivalent (boe). Also, the properties to be acquired will offset W&T Offshore’s Fairway field in offshore Alabama. Because W&T Offshore’s management team has successfully executed this acquisition strategy several times in the past, White noted, it likely will “be able to lower operating costs, add synergies and increase production and reserves” with this transaction. The analyst also pointed out that the acquisition metrics are “very favorable,” at $2.70 per boe or $0.45 per thousand cubic feet equivalent (Mcfe) on Proven reserves and $10,100 flowing boe per day or $1,684 flowing Mcfe per day. “The median figure of our coverage on flowing boe per day is $35,000,” he indicated. W&T Offshore will fund the acquisition with cash on hand, $86.1 million, plus the … Continue reading

Torchlight Drops a Bombshell for Shareholders

Source: Keith Kohl for Streetwise Reports 06/25/2019 A small-cap company sitting on a massive field with potentially several billion barrels of crude oil has caught the attention of Keith Kohl, managing editor of Energy & Capital. I was wrong. When we last talked about Torchlight Energy Resources Inc. (TRCH:NASDAQ), I told you that this company is sitting on a massive new field with potentially a billion barrels of crude oil at stake. Again, I want to apologize for getting that wrong. Torchlight isn’t sitting on a billion-barrel field. It’s actually 3.7 billion barrels of recoverable hydrocarbons. Yes, you read that correctly. Now, for those of you who were able to listen to the conference call on March 22, this blockbuster news won’t come as a surprise. If you weren’t able to catch that call, I highly recommend you listen to a replay of it. It was an extremely detailed presentation, and you can find a full re-cast of it right here. So let’s have a quick recap… Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. Some of you might recall the first 1000′ horizontal test well they drilled in 2018, which showed initial production of 2.2 million cubic feet of natural gas per day, and had a sustained rate of 1.2 million cubic feet of natural gas per day. The company holds a 72.5% working interest, and so far has drilled five pilot wells that have been instrumental … Continue reading

Precious Metals Expert Rick Rule Shares 'Gold Nuggets of Wisdom'

Source: Maurice Jackson for Streetwise Reports 06/25/2019 Maurice Jackson of Proven and Probable and Rick Rule of Sprott USA engage in a wide-ranging discussion covering Pareto’s law, the importance of courage and conviction in investment, copper, mentors and the upcoming Sprott Natural Resource Symposium. Maurice Jackson: Joining us for conversation is legendary investor Rick Rule of Sprott USA. Mr. Rule, welcome to the show. In our interview last month, we addressed a number of topics regarding where and what Sprott USA is focusing their attention on in the natural resource space. And at the conclusion of the interview, Rick, you stated that we should discuss Pareto’s law, which is known as the 80/20 law. But you put an interesting perspective on the law that I had not considered. Mr. Rule, expand the narrative on Pareto’s law and please introduce us to the concept of the 4%. Rick Rule: Sure. And actually I’ll take a little further than that with your permission. Most people have heard of the 80/20 principle, which suggests that in any sort of major field of human endeavor, 20% of the people engaged in that activity generate 80% of the utility. In other words, 20% of the people do 80% of the work. This turns out to be, broadly speaking, true. And it was pointed out in social sciences by an Italian social scientist at the turn of the last century named Pareto. Hence it’s called Pareto’s law. It’s appropriate to junior mining speculation because among other … Continue reading

Lithium Firm's Deposits Show High-Purity Spodumene

Source: Streetwise Reports 06/24/2019 The implications of the results and the next catalyst are addressed in a ROTH Capital Partners report. In a June 19 research note, ROTH Capital Partners analyst Joe Reagor reported that mineralogical testing of Piedmont Lithium Ltd.’s (PLL:NASDAQ; PLL:ASX) three North Carolina deposits showed a “relatively pure spodumene,” which could benefit metallurgy and future recoveries. Along with high-purity spodumene, testing also revealed a lack of petalite and lepidolite. This is a significant positive for Piedmont, Reagor pointed out, because the presence of these minerals typically requires extra operating and capital costs to recover the lithium. Reagor noted the next major catalyst for the stock is an update indicating a significant resource increase, expected in the near future. This should address investors’ concerns about the length of the mine life. “If the company is able to demonstrate an initial mine life of 20 or more years, we would anticipate a significant positive reaction by the market,” he added. ROTH has a Buy rating and a US$36 per share price target on Piedmont Lithium, whose stock is currently trading at around US$11.74 per share. Sign up for our FREE newsletter at: 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 of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) … Continue reading