With $5 Million in New Financing, This Small Cap Oil Company Sees Opportunity in the Midst of a Pandemic-Induced Major Oil Downturn

Source: Streetwise Reports 06/23/2020 Jericho Oil Corp.’s just-closed $5 million insider financing allows it to capitalize on the distress in the market right now. Update: On June 23, investor Michael L. Graves announced that through Catlett Sands-II, LLC he had acquired additional 8.473 million shares of Jericho Oil, bringing his total ownership via Catlett Sands and Inter Vivos Trust to approximately 16% of the firm. With many small oil producers fighting for survival, Jericho Oil Corp. (JCO:TSX.V; JROOF:OTC) has taken the opposite tack and plans to go on the offensive and acquire assets, recently closing a $5 million non-brokered private placement with existing large shareholders. “Jericho sees opportunity in the present environment and will look to acquire what it perceives to be high-quality assets in special situations,” the company stated. “While Jericho does not currently have any binding agreement to enter into any such transaction, having cash on hand will allow it to be nimble as market opportunities may present themselves.” “Jericho Oil is regarded as an interesting speculative play here for a possible reversal leading to a potentially sharp upleg.” – Technical analyst Clive Maund Jericho benefits from a tight share structure with committed shareholders. “Insiders own around 27% of Jericho’s shares, with another 50% or so owned by large shareholders and family offices. There were just a handful of investors in the private placement that closed on June 12, four of whom comprised the vast majority,” Jericho CEO Brian Williamson told Streetwise Reports. “Our shareholder base provides us … Continue reading

The V-Recovery and Beyond

Source: McAlinden Research for Streetwise Reports 06/17/2020 Joseph J. McAlinden of McAlinden Research Partners outlines his firm’s view of what post-pandemic recovery will look like for various markets and explains why the firm is in a minority that foresees a V-shaped recovery. Summary: In the months since the COVID-19 crash began, stock prices have been on a wild ride in anticipation of a tsunami of poor economic data. However, some investors appear to be seeing the light at the end of the tunnel including McAlinden Research Partners (MRP). While most see a V-shaped recovery as doubtful, we feel that the combination of what appears to be limitless fiscal and monetary stimulus, combined with better than expected reopening data in a number of states, provides compelling reason to expect a V-shaped recovery. A V or not a V; that is the question. At least for the moment. According to a majority of commentators, the answer is not a V. But MRP is in the distinct minority, still expecting a sharp economic rebound. This content was delivered to McAlinden Research Partners clients on May 29. To receive all of MRP’s insights in your inbox Monday–Friday, follow this link for a free 30-day trial. And now new questions have arisen, in particular, how permanently the effects of the COVID-19 pandemic will affect long-term growth beyond the initial recovery, whatever its shape. Many notable sources have described scenarios of substandard economic growth for years to come irrespective of the shape of the recovery in … Continue reading

Standard Lithium Successfully Commissioned Demonstration Plant Despite COVID-19

Source: The Critical Investor for Streetwise Reports 06/12/2020 The Critical Investor takes a look at the current dynamics of the lithium market, and speaks with the Standard Lithium’s CEO about the firm’s latest news. After Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) managed to close an almost two-times oversubscribed CA$12.1 million capital raise on Feb. 21, 2020, the company is financed at least into the “proof of concept” completion of its demonstration plant, and the subsequent consummation of the formal joint venture (JV) with Lanxess AG (LXS:DE). The timing couldn’t have been better, as the COVID-19 pandemic gathered speed at the same moment, severely dampening sentiment at, for example, the mining industry’s premier event, PDAC, in the first week of March. With the funding secured, Standard Lithium proceeded as quickly as possible, abiding by COVID-19 measures at the Lanxess location, resulting in the announcement on May 19, 2020, of the successful commissioning and commencement of continuous 24/7 operation of the demonstration plant, first of its kind at this scale, this month. In the meantime, lithium product prices kept on falling, so as these are interesting times, it certainly is time for an update, further illustrated by input from CEO Robert Mintak. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in U.S. dollars (USD), unless stated otherwise. Standard Lithium recently announced the successful start-up of the industrial-scale direct lithium extraction demonstration plant at Lanxess’ South Plant facility in southern Arkansas … Continue reading

Standard Lithium Successfully Commissioned Demonstration Plant Despite COVID-19

Source: The Critical Investor for Streetwise Reports 06/12/2020 The Critical Investor takes a look at the current dynamics of the lithium market, and speaks with the Standard Lithium’s CEO about the firm’s latest news. After Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) managed to close an almost two-times oversubscribed CA$12.1 million capital raise on Feb. 21, 2020, the company is financed at least into the “proof of concept” completion of its demonstration plant, and the subsequent consummation of the formal joint venture (JV) with Lanxess AG (LXS:DE). The timing couldn’t have been better, as the COVID-19 pandemic gathered speed at the same moment, severely dampening sentiment at, for example, the mining industry’s premier event, PDAC, in the first week of March. With the funding secured, Standard Lithium proceeded as quickly as possible, abiding by COVID-19 measures at the Lanxess location, resulting in the announcement on May 19, 2020, of the successful commissioning and commencement of continuous 24/7 operation of the demonstration plant, first of its kind at this scale, this month. In the meantime, lithium product prices kept on falling, so as these are interesting times, it certainly is time for an update, further illustrated by input from CEO Robert Mintak. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in U.S. dollars (USD), unless stated otherwise. Standard Lithium recently announced the successful start-up of the industrial-scale direct lithium extraction demonstration plant at Lanxess’ South Plant facility in southern Arkansas … Continue reading

'Timing is Right' to Invest in Natural Gas Firm Weeks from Production Start

Source: Streetwise Reports 06/08/2020 The rationale for this view concerning Alvopetro Energy is explained in a Mackie Research Capital Corp. report. In a June 2 research note, Mackie Research Capital Corp. analyst Bill Newman purported that Alvopetro Energy Ltd. (ALV:TSX.V; ALVOF:OTCQX) currently presents a buying opportunity as its stock has not yet responded to its announcement of impending production. The company is on track to commence sales production from its Caburé natural gas field in Brazil before or on July 1, 2020. “Once on production, we expect the company to generate substantial free cash flow to fund an exploration program targeting the company’s large prospect inventory and potentially pay a cash dividend,” commented Newman. As a comparator, Newman used Canacol and the trading pattern around its announcement and commencement of natural gas production in Colombia in 2016. “Despite a fully funded project, the market did not fully reward Canacol until only after production had commenced,” he noted. When the market reacted, the stock increased to CA$4.50 per share from CA$3.30. This trend also held with Canacol in two other instances, with production increases. Further, Newman highlighted that Alvopetro is trading at a deep discount to its net asset value, as determined by Mackie, of CA$2.15 per fully diluted share. Thus, Mackie Research has a Speculative Buy recommendation and a CA$1.65 per share target price on Alvopetro. In comparison, the stock is trading now at about CA$0.67 per share. Read what other experts are saying about: Alvopetro Energy Ltd. Sign up … Continue reading

Cypress Development Delivers Strong PFS on Clayton Valley Lithium Project

Source: Peter Epstein for Streetwise Reports 06/08/2020 Peter Epstein of Epstein Research discusses the Nevada lithium project and potential paths that the company could take. Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) owns 100% of a giant, leachable, lithium-bearing claystone-hosted resource, the Clayton Valley Lithium Project (CVLP), adjacent to Albemarle Corp.’s Silver Peak brine operations in Nevada. The company has an Enterprise Value (EV) {market cap + debt – cash} of C$17.5 million. On May 19th, management delivered a highly anticipated press release summarizing its Pre-Feasibility Study (PFS) on the CVLP. Let me start by saying…. It was worth the wait. Cypress adopted a low long-term price of US$9,500/tonne (t) of Lithium Carbonate Equivalent (LCE). The price used in a dozen other brine or clay-hosted (sedimentary) project reports (PEA, PFS or DFS) in the past three years ranged from US$11,000 to US$13,950/t and averaged US$12,558/t. Cypress Development Corp. PFS a high-quality, serious report Admittedly, lithium prices have been falling since 2018, but peer Nevada lithium and boric acid project developer ioneer ltd. announced (20 days before Cypress) a Definitive Feasibility Study (DFS) with a US$13,200/t LCE price assumption. Hard rock juniors are pursuing lithium hydroxide, but brine projects have lithium carbonate in their plans. Cypress plans to make battery-quality lithium hydroxide. In Cypress’ PFS, nameplate capacity is 27,400 tonnes LCE/year. However, it takes less lithium to manufacture hydroxide than to make carbonate. If the CVLP project were to deliver 100% hydroxide, it would be operating at an average of 31,141 tonnes … Continue reading

COVID-19: A Catalyst for Small-Cap Outperformance

Source: Steve Palmer for Streetwise Reports 06/03/2020 Steve Palmer, president and chief investment officer of AlphaNorth Asset Management, outlines why he believes Canadian companies on the TSX Venture Index remain good investments in a time of pandemic uncertainty. We believe that the COVID-19 lockdown has been a catalyst for the TSX Venture index (TSX.V) to outperform. After a decade of underperforming the major equity indices the TSX.V has led returns from the March equity market lows, gaining 58.9% as compared to 36.3% and 36.6% for the TSX Composite and S&P 500 indexes, respectively. This is likely to continue for reasons outlined in this report. We do not often write special commentaries. However, when a situation becomes particularly compelling, we are prompted to provide a timely opinion, as we did in our special commentary in February 2016 titled, “Reasons to be Optimistic on Canadian Venture Stocks—What Is Recent Investor Sentiment Implying for Equity Markets?” This opinion piece was very timely and accurate, as the TSX.V was subsequently the best performing diversified equity index worldwide in 2016 increasing by 45% and 12% in 2017. The AlphaNorth Partners Fund, by comparison, returned 42% in 2016 and 69% in 2017. The Impact of the COVID-19 Lockdown As the fear regarding the COVID-19 pandemic spread in March, equity indices worldwide crashed. In only a few weeks indices erased substantial wealth. The S&P 500 index declined by 35.4% in just 23 trading days, from an all-time high on Feb. 19 to the low on March 23. … Continue reading

Mickey Fulp: Buy the Unknown, Unloved, Unwanted, Undervalued

Source: Maurice Jackson of Streetwise Reports 06/03/2020 In light of pandemic conditions, government reactions and the impacts of both on financial markets, Mercenary Geologist Mickey Fulp describes his investment strategy to Maurice Jackson of Proven and Probable. Maurice Jackson: Joining us for conversation is Mickey Fulp, the world-renowned Mercenary Geologist. I want to speak to you today about the mainstream financial news networks and the narratives that they’re pushing on both sides of the aisle, respectively. And of course, depending on the news program, the blame is always cast on the political adversaries and never, to anyone’s surprise, are they accepting blame for championing and implementing policies that have created the U.S. financial pandemic. . .it just seems to be skipping over most people’s radar, as we’re all focusing our efforts right now on COVID-19. When you look at the U.S. financial pandemic, just how bad is the U.S. economy, and did it begin with COVID-19? Mickey Fulp: Well, there were certainly financial stresses before spawning of this flu bug in Wuhan, China. Long live frothy stock markets that were overdue for a correction, burgeoning trade, and budget deficits. And I think most importantly, American outsourcing and our dependence on China for fundamental supply chains. But there’s little doubt in my mind that this economy was booming despite some underlying structural weaknesses, and the collapse, in my opinion, was due to draconian government overreaction in response to the immediate crisis. So no doubt, this is a very bad, deadly flu … Continue reading

Westwater Shares Charge Higher after Demonstrating Simulated Full-Scale Battery Graphite Processing

Source: Streetwise Reports 06/02/2020 Shares of Westwater Resources traded higher on greater than 100-times average daily volume after the company reported that positive independent test results on ULTRA-PMG™ demonstrated successful simulated full-scale processing of battery graphite. Energy materials development company Westwater Resources Inc. (WWR:NASDAQ) today announced that “independent testing of its ULTRA-PMG™ battery graphite material has shown outstanding resistivity values as a conductive additive.” Westwater Resources’ President and CEO Christopher M. Jones commented, “This milestone achievement is a critical step in developing our battery graphite business. We have shown that one of the key products in our business plan – purified micronized graphite (ULTRA-PMG™) – can be produced using proprietary processes that we intend to utilize in our pilot program later this year. Successful performance testing demonstrates that we can manufacture our ULTRA-PMG™ as a premium-grade, conductive enhancement material for all types of batteries at larger scale.” The company advised that its “ULTRA-PMG™ product has been produced by laboratory-scale equipment simulating the full-scale processing flowsheet and that it has been working with Dorfner AnzaPlan in Germany to commercialize processing technology to produce various sizes of ULTRA-PMG™ products.” Test samples were independently tested by Polaris Laboratories in order to evaluate the performance of the product. The testing method included resistivity testing that utilizes “4T sensing” which the firm noted is a battery industry standard for measuring resistivity. The company indicated that the results from testing demonstrated very desirable resistivities in the first simulation samples and for the finer size ULTRA-PMG™ in … Continue reading

Greenbriar Capital's Shares Skyrocket on Puerto Rico Solar Agreement

Source: Clive Maund for Streetwise Reports 06/01/2020 Technical analyst Clive Maund discusses Greenbriar Capital shares’ big ramp up following its agreement with the Puerto Rico Electric Power Authority. We hit the jackpot with this one, so it was a bit silly of me to say that traders might want to think about taking some money off the table on Friday morning—silly because the Montalva solar energy project deal that Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) has done with PREPA (Puerto Rico Electric Power Authority) is going to end up being worth about C$10 a share, and I’ve heard it said that it could be a $17 stock. The deal now moves on to final approval by the Puerto Rico Energy Bureau (PREB) and the Puerto Rico Financial Oversight and Management Board (FOMB). This process is expected to last two to three weeks (from now) and should be a mere formality, a rubber stamp job. We bought the stock back at the perfect entry point 2 weeks ago as it completed a bull Flag, since which time it has accelerated into a vertical ramp on news of the deal being clinched, as you will see on the latest 6-month chart shown above. With this deal being worth approximately C$10 per share it is clear that the stock is probably on its way to this level, however, that said, we can expect to see some jitters and profit taking in the days leading up to the final approval, so we will keep an … Continue reading