Small-Cap's Large Solar Project in Puerto Rico Moves Closer to Fruition

Source: Streetwise Reports 09/19/2019 The support of the Puerto Rico Financial Oversight and Management Board advances the solar project. Greenbriar Capital Corp.’s (GRB:TSX.V; GEBRF:OTC) Montalva 100- to 165-megawatt solar project took several steps forward when in August the company reported that the Puerto Rico Electric Power Authority (PREPA) notified it that the Financial Oversight and Management Board (FOMB) reviewed the project and is “supportive of the company’s economic proposal.” FOMB has authorized PREPA to work with Greenbriar to “finalize the formal terms of the revised power purchase operating agreement (PPOA).” When that is completed, “PREPA will provide the FOMB with the final agreement and seek FOMB approval to move ahead for final judicial approval.” “I expect Montalva could be generating income for Greenbriar in 2020 and full capacity in 2021.” – Ron Struthers, Struthers Resource Stock Report This news was followed by the announcement that Greenbriar has executed a $195-million project financing mandate with Voya Investment Management LLC for the Montalva project. The company noted that the financing “takes place at the project level and does not involve the sale of the company’s shares.” The mandate is to “structure, arrange and provide key capital requirements for the Montalva solar project,” and the company notes that completion by Voya is discretionary. Greenbriar will issue under certain conditions, as an incentive to Voya, 3.5 million common share purchase warrants at $1 per share and exercisable for five years. The agreement for Montalva project is for a 25-year term, with two five-year renewal … Continue reading

SunPower's Energy Storage Reflecting Well on Its Shares

Source: Streetwise Reports 09/19/2019 SunPower Corp. shares are trading 6% higher today as the firm announced that its Equinox Storage paired with its platform provides energy independence to residential users. Global sustainable energy company SunPower Corp. (SPWR:NASDAQ) today announced the introduction of its Equinox Storage, which the firm claims is the next major advancement in the company’s Equinox energy platform, giving homeowners more freedom from utility outages, grid uncertainty and peak energy rates. The company indicated that homeowners with Equinox Storage can choose to store energy for full-home or partial-home backup during blackouts, reduce daily peak electricity consumption or any combination that best fits their needs. SunPower reports that it offers energy independence with Equinox Storage and states that its leading solar technology paired with powerful battery, proprietary software and new mobile app gives homeowners control of their energy. The firm advises that it is combining high-efficiency solar with high-impact storage, and that Equinox Storage is made specifically for the company’s Equinox Solar solution, which it claims is the only fully-integrated residential solar system designed, engineered and warranted by one company. Norm Taffe, EVP of SunPower’s North America residential solar, commented, “We’re entering a new solar decade as storage adoption increases with the advancement of battery technologies, and with accompanying services becoming standard…For homeowners, Equinox Storage provides energy certainty and the power to make electricity allocation decisions, easing concerns with scheduled power outages, prolonged wildfire seasons, and unpredictable energy rates that are becoming more common…With up to 12 kilowatt hours … Continue reading

An 'Electrical Storm' of Catalysts Converge to Jump Start Sales of Eguana's Solar-Power Storage Solutions

Source: Knox Henderson for Streetwise Reports 09/10/2019 The small-cap energy storage firm just signed a global production agreement with industry heavyweight Jabil. The Punch: Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB), which provides solutions for residential and commercial energy storage is about to supremely capitalize on a wave of industry catalysts and government-led solar powered storage initiatives. These advancements affecting demand, distribution and production culminate into a “perfect electrical storm,” which should boost revenues from about $1 million per quarter to six times that amount and beyond in the next 12 months. The product is there, the installs are waiting, the last piece of the puzzle, which was to exponentially ramp up production, was ushered in through a recently announced big-fish partnership backed with the essential, scalable financing. Since that announcement we see a clear buying signal as the stock has a solid base at $0.10. EGT.V appears to now have the momentum to climb back to a previous plateau of $0.17, then beyond as this translates into real sales. That big fish is a global production agreement, announced September 3, with industrial giant Jabil Inc. (JBL:NYSE), a $4.5 billion market-cap company with more than $22 billion in global revenue. The sweetener on the entire arrangement is that Eguana is now backstopped, with working capital support by Export Development Canada (EDC) to guarantee its loans and lines of credit with Eguana’s banking partners, so production and financing is instant and scalable from one to 100,000 units. “Given the success the company has … Continue reading

Analyst Raises Q3/19 Production Estimates Texas-Based Oil & Gas Company

Source: Streetwise Reports 09/06/2019 The revisions and the reasons for them are discussed in a ROTH Capital Partners report. In an Aug. 27 research note, analyst John White reported that ROTH Capital Partners raised its Q3/19 production estimate for Lonestar Resources US Inc. (LONE:NASDAQ), “based on guidance which is supported by continuing strong well completions.” ROTH also revised its oil and gas price deck, which led to it lowering its price target on Buy-rated Lonestar to $8 per share from $11 per share. The energy company’s current share price is $2.66. White detailed ROTH’s changes to its model on Lonestar, resulting from the energy company having been “consistently guiding production higher and operating costs lower.” ROTH increased its Q3/19 production projection by 11%, to 17,170 barrels of oil equivalent per day (17,170 boe/day) from 15,505 boe/day. ROTH also raised its projected cash flow per share for Q3/19 to $1.02, up from $0.84. Its new EBITDA estimate is $35 million, up from $32.9 million. As for changes to its near- and medium-term oil price estimates, ROTH lowered its West Texas Intermediate (WTE) estimates for Q3/19 to $56 per barrel ($56/bbl) from $57 and for Q4/19, to $54/bbl from $57, White relayed. For the Henry Hub price in Q3/19, ROTH predicts $2.20 per million British thermal units (2.20/MMBtu) versus $2.20 and in Q4/19, $2.25/MMBtu versus $2.40. As for 2020 forecasts, ROTH now expects a WTI crude oil price of $52.25/bbl versus $54.75 and a Henry Hub price of $2.40/MMBtu as opposed to … Continue reading

Texas Firm Represents 'Inexpensive Way to Buy Integration in Midstream'

Source: Streetwise Reports 09/06/2019 The reasons this energy firm warrants a rerating are discussed in a Raymond James report. In an Aug. 28 research note, analyst J.R. Weston reported that Raymond James upgraded Targa Resources Corp. (TRGP:NYSE) to Strong Buy from Outperform “as we feel this is an attractive entry point to gain exposure to the longer-term theme; the selloff is overdone.” That theme, Weston explained, is “meaningfully improved” financial flexibility in 2020 and beyond for this midstream energy corporation now that capex has “dialed down” and cash flow is increasing. “The worst is largely behind the company,” and now, it is on the cusp of “reaping the rewards of a long-running and ambitious growth program.” That program involved Targa integrating business and enhancing downstream assets to strengthen its long-term strategic position, noted Weston. “With Grand Prix online this month and expected to ramp to 200,000 barrels per day September, Targa has connected the natural gas liquids value chain between its Permian/Midcon assets and top-tier downstream footprint.” Targa “is poised to rate into a group of midstream players that are perceived to be higher quality,” Weston commented, and as the company nears full integration, “we expect that investors become willing to provide it with a substantial premium valuation, closer to large-cap C corps.” Raymond James’ target price on Targa remains unchanged at $48 per share. This compares to $36.78, where the stock is currently trading. Sign up for our FREE newsletter at: Disclosure: 1) Doresa Banning compiled this article … Continue reading

First Cobalt, Last Man Standing in North American Cobalt Sector

Source: Peter Epstein for Streetwise Reports 09/05/2019 An agreement with Glencore enabling advancement of recommissioning and expansion plans for the junior’s cobalt refinery makes First Cobalt a good bet for investors, according to Peter Epstein of Epstein Research. First Cobalt Corp. (FCC:TSX.V; FTSSF:OTCQX; FCC:ASX) announced it has entered into a US$5 million loan facility with Glencore International Plc (GLEN:LSE) to complete advanced engineering, metallurgical testing, field work and permitting associated with the recommissioning and expansion of its 100%-owned cobalt refinery in Canada. The loan facility bears interest of LIBOR + 5%, and has a two-year term, extendable by one year, at the company’s election. The First Cobalt refinery is a hydrometallurgical facility in the Canadian Cobalt Camp of Ontario, Canada, roughly 600 km from the U.S. border. It’s the only permitted primary cobalt (Co) refinery in North America. It can produce either a Co sulfate for lithium-ion batteries or a Co metal for the aerospace industry. This is a long-lasting, very valuable, hard asset with decades of use ahead of it. Upon completion of a positive definitive feasibility study (DFS) for a 55 tonnes per day (tpd) facility, and subject to other terms and conditions, Glencore has agreed to advance an additional $40 million (all figures in US$ unless indicated otherwise) in three stages. However, not all of the $45 million in funding will necessarily be needed. A 30% contingency is built into that figure. On Sept. 4 the company announced it has awarded key contracts to complete a DFS … Continue reading

Cypress Development Makes Lithium Flow Sheet Enhancements

Source: Peter Epstein for Streetwise Reports 09/04/2019 Peter Epstein of Epstein Research outlines the latest from this firm operating in Nevada, which is set to release a PFS in the fourth quarter. On Aug. 29, Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) announced the successful completion of the slurry rheology and filtration studies that are an integral part of the prefeasibility study (PFS) for its Clayton Valley clay-hosted lithium project, located immediately adjacent to Albemarle Corp.’s (ALB:NYSE) Silver Peak brine processing facilities in Nevada. Management believes its U.S. location will become an increasingly valuable attribute. While many junior lithium companies like to name drop “Albemarle” and “Silver Peak,” Cypress owns 100% of one of just a few projects in Nevada that Albemarle might actually be interested in. More Promising Results from Cypress’ Expert Technical Team Back to the latest news: The outcome was the result of months of testing by laboratories and a detailed review with consultants and equipment vendors. This news represents a major milestone in the project because the results simplify the process flow sheet. Cypress CEO Dr. Bill Willoughby commented in the press release, “A critical step for us at Clayton Valley is the separation of solids and liquids. A viable process is dependent upon the ability to separate the process leach solution (PLS) from the leached residue whether by thickeners, filters, or other means. Significant test work has allowed Cypress to identify a commercially viable process, based on filtration, to take the solid-liquid separation from the laboratory … Continue reading

Energy Firm Reacts to Oil Price Weakening with 2019 Budget Decrease

Source: Streetwise Reports 08/31/2019 The company’s revised estimates, the reasons for and repercussions of them are addressed in a CIBC report. In an Aug. 26 research note, analyst Dave Popowich reported that his firm CIBC reduced its price target on Whitecap Resources Inc. (WCP:TSX) to CA$7.25 per share from CA$7.50 due to strip pricing changes. In comparison, the oil and gas company’s current share price is about CA$3.67. CIBC made other small adjustments to its estimates on Whitecap to reflect the company recently reducing its 2019 budget by CA$50 million to CA$400 million. This move, Popowich wrote, reflects “an increasingly cautious industry stance” in a worsening oil price environment. Consequent to lower spending, Whitecap’s Q4/19 production is expected decrease to 74,000–75,000 barrels of oil equivalent per day (74,000–75,000 boe/day) from 77,000–9,000 boe/day. Full-year 2019 production guidance remains the same, however, and Whitecap forecasts free cash flow this year of about CA$135 million, an increase over previous guidance of CA$95 million. “With an estimated FY19 payout ratio of just 82% on recent strip pricing, Whitecap’s 9.3% dividend yield looks very safe for the time being,” Popowich highlighted. CIBC anticipates Whitecap’s lower spending in H2/19 to carry over into 2020. Thus, the bank decreased its full-year 2020 capital spending forecast on the energy firm to CA$450 million from CA$500 million and reduced its projected production by 4% to 74,015 boe/day. Popowich concluded that “Whitecap has maintained a relatively strong balance sheet throughout the ongoing industry downturn, and we see that as a … Continue reading

Standard Lithium Remains on Course to Production in 24–30 Months

Source: Peter Epstein for Streetwise Reports 08/29/2019 Peter Epstein of Epstein Research does the math and reviews the details of an expected joint venture and the lithium market overall, and determines this company will benefit from the upsides. On August 25, Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) announced another important milestone on its way to first commercial production, with giant German specialty chemicals company Lanxess AG (LXS:DE), of battery-grade lithium chemicals. Fabrication of phases one and two of Standard Lithium’s LiSTR direct lithium extraction demonstration plant (DP) are complete. All site construction works are on schedule, the concrete slab and foundations required to house the DP are in place. Nine modules are in transit and expected to arrive at the Lanxess South Plant facility in southern Arkansas before month’s end. When fully commissioned, the DP will continuously process an input “tail brine” flow of 50 gallons per minute, an annualized production rate of 100–150 tonnes of lithium carbonate equivalent (LCE). Lanxess “tail brine” is a heated, mineralized flow of water (brine) exiting the Lanxess South Plant facility, stripped of bromine, containing significant concentrations of lithium. The DP showcases Standard’s proprietary LiSTR technology, which uses a solid sorbent material to selectively extract lithium. The environmentally friendly process eliminates the need for evaporation ponds and reduces processing time from 9–18 months to a matter of hours while, at the same time, greatly increasing lithium recovery rates. Dr. Andy Robinson, president and COO, commented, “The Standard Lithium team and our partners continue to execute … Continue reading

'Outsized Dislocation' of Wind Blade Maker's Stock Means Buying Opportunity: Analyst

Source: Streetwise Reports 08/27/2019 A disconnect surrounding the company’s EBITDA multiple is discussed in a Raymond James report. In an Aug. 20 research note, analyst Pavel Molchanov reported that Raymond James upgraded its recommendation on TPI Composites Inc. (TPIC:NASDAQ) to Strong Buy from Outperform, “the first time we have done so since its initial public offering in 2016.” TPI is currently trading at around $17.69 per share, which compares to Raymond James’ target price on it of $32 per share. The stock is down around 29% year to date, but the clean tech index is up 38% during that same period. This is the case despite the Arizona-based company accomplishing “the rare feat of double-digit, organic topline growth every year since 2012,” and becoming a $1.5 billion topline enterprise,” described Molchanov. TPI stock rerated to a 4.7x EBITDA multiple, which is its lowest ever and seemingly “overly beaten down,” Molchanov highlighted, suggesting that margin risk is fully baked in. Yes, inherent in the company’s business model are production line transitions, but the resulting valuation haircut seems too high, the analyst noted. TPI “should not be trading like a mature cyclical business,” wrote Molchanov. This is especially the case because TPI has begun to diversify its revenue sources by moving into manufacturing composites for electric vehicles, now buses and potentially trucks in the future, and these efforts are still early stage. For example, only 9% of revenue in Q2/19 came from this other area. “Given where the stock is, we look … Continue reading