Lithium Company Files PEA on Argentina Project

Source: Streetwise Reports 10/11/2018

The report provides support to proceed with development plans.

Advantage Lithium Corp. (AAL:TSX.V; AVLIF:OTCQX) announced the filing on SEDAR of its Preliminary Economic Assessment (PEA) report following summary results announced on August 14, 2018.

The company stated that the PEA report provides support for Advantage Lithium to “proceed with development plans for 20ktpa capacity stand-alone Lithium Carbonate plant located at its Cauchari Joint-Venture project in the province of Jujuy, Argentina.”

The company noted the following key points:

  • US$830 Million after-tax Net Present Value at 8% discount rate and Internal Rate of Return of 24.0 % for 20,000 Tons per year production of lithium carbonate. (Pre-Tax Net Present Value – $1,321 Million)
  • Pre-production Capital Expenditure estimate of US$ 401 million for a 20,000 Tons Per Year operation
  • Operating Expenses of $3,667/ton of lithium carbonate average after production ramp-up
  • Processing facilities design based on proven solar evaporation technology and conventional lithium brine processing, leveraging JV partner Orocobre Ltd.’s (ORL:TSX; ORE:ASX) project development experience
  • Mine life of 25 years including a 3-year ramp up for 20,000 tons per year production scenario based on conversion factors applied to 3 Metric Tons resource published in May 2018
  • Cauchari resource conversion to Measured and Indicated well underway with DFS to commence imminently with completion scheduled in Q2 2019, both fully funded by the AAL/Orocobre Joint Venture
  • The resource is open to the south and at depth, with potential to add significant tonnage with additional exploration, including in the deep sand unit

David Sidoo, CEO and founder of Advantage Lithium, commented, “We are very pleased that we have advanced our Cauchari JV from exploration through to a completed PEA in just over a year. The positive results first summarized in our news release of August 14 are now backed up with an independent study report that reflects the rapid advancement of the project engineering supported by Worley Parsons.”

Sidoo noted that this “confirms the potential of Cauchari JV as a robust project with operating costs expected to be in the lower quarters of the industry cost curve.”

The company also reported that it is progressing on schedule with phase 3 drilling and well testing programs. “The results from this work are required to support resource to reserve conversion and to achieve our target Definitive Feasibility Study which will commence in early October and planned for completion by Q2 2019,” Sidoo stated.

The company noted that the economic results for the project have been updated to reflect an improvement in the tax regime in Argentina with lower tax rates that were not reflected in the initial PEA announcement of August.

“The economic analysis is based on brine grades and lithium volume estimated from the company’s published Inferred Mineral Resource only,” stated the company. “Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the Cauchari project evaluation envisioned by the PEA will be realized. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.”

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Disclosure:
1) John McPhaul compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Advantage Lithium. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Advantage Lithium, a company mentioned in this article.

( Companies Mentioned: AAL:TSX.V; AVLIF:OTCQX,
)

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From:: The Energy Report

Energy Companies’ Merger to Create ‘World’s Largest Offshore Drilling Fleet’

Source: Streetwise Reports 10/11/2018

A Raymond James report described the expected synergies of this proposed transaction.

In an Oct. 9 research note, analyst Praveen Narra reported that Ensco Plc (NYSE:ESV) and Rowan Companies Plc (RDC:NYSE) agreed to merge “in an all-stock transaction that will result in the largest offshore drilling rig fleet.”

Narra added that “despite a lack of premium to either party, it does appear to be positive for shareholders with the value creation expected to be driven by synergy realization.” In the transaction, Rowan shareholders would receive 2.215 Ensco shares for every Rowan share.

Narra reviewed the positive highlights of the proposed merger. For one, the combined fleet, becoming the world’s largest, would pose a “dual threat in floaters and jackups.” The combined entity’s assets would encompass 82 rigs, roughly $2.7 billion in backlogged contracts and about $3.9 billion in liquidity, all for an estimated pro forma enterprise value of about $12 billion.

The combined fleet would include 54 jackups and 28 floaters, and its 11 tier 1 capable floaters would mean it would control 50% of all of them, Narra relayed. The deal would allow Rowan to capitalize on Ensco’s broader floater footprint and keep its drill ships busier, as they’re not needed for backlogged work and located in the Gulf of Mexico. With respect to jackups, the combined company would instantly gain market share in certain geographies, specifically 40% of jackups in Saudi Arabia and 30% in the North Sea.

“Given the significant market share as well as the advantaged relationship with ARO Drilling, the combined entity is likely to see both cost synergies as well as the ability to win a higher proportion of available work,” Narra purported.

Synergies resulting from the merger would be about $150 million, as estimated by the management teams, half realized in shore-based costs and the other half in selling, general and administrative (SG&A) expenses. Narra noted that while $75 million worth of SG&A savings is possible, Raymond James estimates a more conservative amount, $60 million. The savings in shore-based costs implies the combined company would reduce its contract drilling expense by about 4% due to the merger, which Raymond James finds reasonable given Ensco already has a presence in most regions.

As for the synergies overall, Narra concluded, “We estimate the present value of these synergies minus transaction fees to be $800–900 million. All else equal, this would represent a value uplift to the combined equity of about 14%.”

Three, the merger could result in better day rate pricing throughout the industry, Narra pointed out, though likely later rather than sooner and, therefore, remains “cautious on the timing and breadth” of the recovery.

The merger transaction, having been greenlighted by Rowan and Ensco’s boards and its ARO Drilling joint venture partner Saudi Aramco, is now subject to shareholder and United Kingdom regulatory approval. The deal is expected to close in H1/19. At that time, Ensco and Rowan shareholders would own approximately 60.5% and 39.5%, respectively, of the combined entity’s outstanding shares.

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Disclosures from Raymond James, Offshore Drillers: Rowan and Ensco Merger Continues Consolidation Trend – Synergies Drive Value, Oct. 9, 2018

ANALYST INFORMATION

Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person’s …read more

From:: The Energy Report

Texas Oil & Gas Company’s Permian Wells Produce Encouraging Results

Source: Streetwise Reports 10/09/2018

This Texas E&P firm is having success using new well testing techniques.

Amazing Energy Oil & Gas Co.’s (AMAZ:OTCQX) CEO, Willard McAndrew III, reported that the company achieved “effective” outcomes from recent drilling and completing of the new #30 well on its Permian Basin acreage using the open hole technique. “We are very encouraged by the results of our drilling efforts and newly employed completion techniques,” he said in a news release.

With the #30 well, drilled to a depth of 1,768 feet, the company “encountered approximately 14 feet of pay zone thickness based on comparison to a southern offset well,” along with “two benches of the Queen A formation,” the news release noted.

After completion, the natural pressure in #30 swelled overnight, then oil began to flow. Now, without stimulation, the well is producing about 30 barrels of oil per day.

Amazing will continue well testing to determine its stabilized initial potential production rate.

In the release, the CEO highlighted that the company invested more than $1 million over the past year on “testing cores, a Halliburton rock vision log, rock and fluid property testing with special core analysis and new test wells.” These new techniques, he said, produce improved results and lower Amazing’s average well cost, thereby improving operational economics well by well.

McAndrew added, “We are committed to building value through the drill bit and controlling costs. Amazing will continue to communicate our measured results to investors as we progress, and we look forward to achieving new production milestones as the benchmark for our corporate growth.”

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Amazing Energy. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Amazing Energy. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Amazing Energy, a company mentioned in this article.

( Companies Mentioned: AMAZ:OTCQX,
)

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From:: The Energy Report

Two Companies with Nevada Lithium Deposits Plan Joint Venture

Source: Streetwise Reports 10/06/2018

The close proximity of two properties offers promise of synergies for these firms.

With an eye toward partnering in a joint venture (JV), Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) signed a nonbinding letter of intent with Dajin Resources Corp. (DJI:TSX.V; DJIFF:OTCPK) concerning Dajin’s Alkali Spring Valley lithium property in Nevada, 12 kilometers from Cypress’ Clayton Valley lithium project.

Under the agreement, Cypress gains the exclusive right and option to acquire a 50% interest in Dajin’s 145 unpatented mining claims at Alkali Spring Valley, as well as its application for 1,000-acre-feet per year of water rights in Nevada’s Esmeralda County.

In exchange, Cypress will give Dajin 150,000 Cypress shares plus $50,000. Cypress has two years to complete its earn-in, which requires issuing another 150,000 Cypress shares to Dajin, and spending $200,000 on exploration at Alkali Spring Valley in year one and $250,000 in year two. Following that two-year period, the two companies will establish the JV.

If Dajin does not want to participate in the JV at that point, it may “dilute to a 10% net profits’ interest on the value of the JV property in Alkali Spring Valley,” a news release explained.

The next steps are for Cypress to perform due diligence on Dajin and draft a definitive agreement for the deal. Once those are done and the TSX Venture Exchange approves the transaction, Cypress will compensate Dajin with the above mentioned shares and cash.

After the JV is in place, Cypress and Dajin will “share proportionally in property development if lithium brine resources are discovered,” according to the release.

“We look forward to working with Dajin on the exploration of the Alkali Spring Valley lithium property, and we appreciate its work to date toward obtaining related water rights,” Cypress’ CEO Bill Willoughby said in the release. “We particularly welcome the prospect to explore synergies with our Clayton Valley lithium project.”

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Cypress Development. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE,
DJI:TSX.V; DJIFF:OTCPK,
)

…read more

From:: The Energy Report

Canadian Oil & Gas Firm ‘Too Cheap to Ignore’

Source: Streetwise Reports 10/06/2018

A Pareto Securities report highlighted the disconnect between this energy company’s current share price and where it should be.

An Oct. 3 research note by analyst Tom Eric Kristiansen pointed out a “valuation mystery in Blackbird Energy Inc. (BBI:TSX.V), which continues to be priced at a large discount to peers and is the most obvious takeover candidate in our coverage universe.”

The company is currently trading at CA$0.35 per share. Pareto’s target price on Blackbird is more than three times that, at CA$1.10 per share. “We view Blackbird as too cheap to ignore and reiterate our Buy,” Kristiansen wrote.

The analyst offered arguments for why the company should be valued higher. Its year-end financials, as of July 30, 2018, were as expected. Management has guided to near-term production of 2,000 barrels of oil equivalent per day (2 Mboe/d), an increase from 1.148 Mboe/d.

“More important,” the analyst noted, “Blackbird delivers an industry leading operational netback of CA$30 per barrel of oil equivalent (CA$30/boe).” It is the highest among its peers, as demonstrated in the graph Kristiansen included in his report, which compares the group on this metric. Seven G’s netback is CA$29/boe, and NuVista’s is CA$24/boe. The lowest is Birchcliff’s at CA$13/boe.

Yet, as shown by Kristiansen, despite having the highest netback per boe, Blackbird has the lowest enterprise value per section of land owned, at CA$2.1 million, as depicted on the same graph. NuVista has the highest, at CA$12.4 million/section; QEC’s is CA$11.9 million/section; and Seven G’s is CA$8.8 million.

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Blackbird Energy. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackbird Energy, a company mentioned in this article.

Disclosures from Pareto Securities AS, Blackbird Energy, News Flash, October 3, 2018

This publication or report has been prepared solely by Pareto Securities Research.

Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors.

Analysts Certification
The research analyst(s) whose name(s) appear on research reports prepared by Pareto Securities Research certify that: (i) all o f the views expressed in the research report accurately reflect their personal views about the subject security or issuer, and (ii) no part of the research analysts’ compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analysts in research reports that are prepared by Pareto Securities Research.

The research analysts whose names appears on research reports prepared by Pareto Securities Research received compensation that is based upon various factors including Pareto Securities’ total revenues, a portion of which are generated by Pareto Securities’ investment banking activities.

Conflicts of interest

Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report.

In addition Pareto Securities Group, or affiliates, may from time to time have a broking, advisory or other relationship with a company which is the subject of or referred to in the relevant Research, including acting as that company’s official or sponsoring broker and providing corporate finance or other financial services. It is the policy of Pareto to seek to act as corporate adviser or broker to some of the companies which are covered by Pareto Securities Research. Accordingly companies covered in any Research may be the subject o f marketing initiatives by the Corporate Finance Department.

To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of …read more

From:: The Energy Report

Cobalt Development Firm Changes President/CEO at Critical Juncture

Source: Streetwise Reports 10/04/2018

Two analysts relayed the relevant background of the newly appointed executive and shared their thoughts about the timing of the replacement.

In a Sept. 27 research note, Eric Zaunscherb, a Canaccord Genuity analyst, reported that eCobalt Solutions Inc.’s (ECS:TSX; ECSIF:OTCQX; ECO:FSE) president/CEO, Paul Farquharson, was retiring as of Oct. 1, 2018, and Michael Callahan was assuming those positions. Farquharson, however, will be present through year-end 2018 to assist through the transition.

“Callahan’s appointment comes after several months of planning, and he is taking the helm at a pivotal time for eCobalt as it advances the Idaho cobalt project toward production,” Zaunscherb noted.

The new president and CEO, an Idaho native, will oversee the release of the optimized feasibility study (OFS) of Idaho, expected in October, and resume project financing discussions.

“Going forward, Callahan will oversee the release of the optimized feasibility study, planned for October 2018, and continue project financing discussions,” wrote Zaunscherb.

As for Callahan’s experience in the mining industry, he most recently was the president of Western Pacific Resources, moving into the CEO role in 2014. While there, he “oversaw restructuring activities in a challenging market as the company focused on rehabilitating and exploring the Deer Trail Mine in Utah,” Zaunscherb relayed.

Prior to that, starting in 2009, Callahan, as president, grew Silvermex Resources Inc. from a $12 million junior explorer into a $175 million gold-silver producer, and left when First Majestic Silver acquired it in 2012.

For the 20 years between 1989 and 2009, Callahan worked at Hecla Mining, holding various finance, accounting and corporate development positions. One highlight was his appointment in 2000 as president of the company’s mining operations in Venezuela.

As for Callahan’s predecessor at eCobalt, Farquharson, he spent more than a quarter-century at the Idaho-based cobalt company, fostering its growth through acquisitions and advancing its Idaho project.

Canaccord Genuity has a Speculative Buy rating and a CA$0.90 per share target price on eCobalt, whose stock is currently trading at around $0.78 per share.

Like Zaunscherb, analyst Craig Hutchison with TD Securities wrote, in a Sept. 27 research report, that indeed eCobalt’s president/CEO substitution is taking place at a critical juncture in the company’s development.

For one, it is about to release the OFS for its flagship project, Idaho, in October, which represents a further postponement beyond the initial Q2/18 and subsequent Q3/18 targets. The extra time affords Callahan the chance to “review the model and projected economics prior to its release,” Hutchison indicated.

Also, the company is in the middle of ongoing dialogues regarding potential financing and offtake agreements. In fact, since pilot-level testing finished, eCobalt has been providing potential offtake partners with a sample of the clean cobalt concentrate it intends to produce. While the company has not indicated when such agreements might be finalized, TD Securities estimates they could take about a year.

As for the appointment of Callahan, his experience with Silvermex will be especially beneficial to eCobalt, Hutchison noted, as it evolves from an explorer/developer into a producer.

Like Canaccord Genuity, TD Securities has a Speculative Buy on eCobalt. Its price target on the company is CA$1.35. Again, eCobalt’s current share price is CA$0.78.

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: eCobalt Solutions. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Disclosures from Canaccord Genuity, eCobalt Solutions Inc., Flash Update, September 27, 2018

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst …read more

From:: The Energy Report

How Commodities Will Perform in the ‘Impending Massive Credit Crunch’

Source: Clive Maund for Streetwise Reports 10/03/2018

Technical analyst Clive Maund looks at the factors that he sees are behind a massive credit crunch and discusses how the markets could react.

An enormous “sword of Damocles” hangs over all markets now. A massive liquidity drain is underway as global QE reverses into QT and rates rise against the background of immense ubiquitous crippling debt burdens. What this means is that the biggest credit crunch of all time is bearing down on us, which will involve markets crashing in the absence of bids, serious dislocation of capital markets and out of control interest rates.

This is probably the high point for Trump’s presidency as the stock market enjoys its final “swansong rally” ahead of the crash, buoyed up the last of the stock buybacks before rising rates choke them off, and the dumbest of the dumb money who think that because the market has been in an uptrend for years it’s going to continue.

The Fed has been playing a stealth game for a long time now, gradually but steadily raising rates and hoping that the market won’t notice, and also furtively offloading its Treasury hoard, and other central banks are following the Fed’s lead and doing likewise. The liquidity that drove the massive bubbles in real estate and stock markets is being pulled. That must inevitably lead to these markets dropping, and we are already seeing the start of it with the Emerging Markets plunging and hitherto red hot real estate markets cooling. When punters realize that the game is over, the decline is likely to become disorderly and involve a number of crash phases.

The Fed is always behind the curve and reactive. It has been undermining the markets for over a year now with its raising of interest rates and now QT, so when the markets buckle and cave in, it won’t be “something out of the blue” or an “Act of God” as the mainstream media will inevitably portray it; it is eminently predictable, and slated to happen soon. The reason that the Fed and other central banks are raising rates and withdrawing liquidity is that they know there is another mammoth crisis looming, and they are scrambling to buffer themselves ahead of it, by giving themselves “wiggle room” to lower rates, and scaling back their massive holdings of Treasury paper, etc. The trouble is that it’s a very delicate balancing act, and they are inevitably overplaying their hand to the extent that their actions will bring about the crisis that they are seeking to avoid, or at least get ahead of.

When you get up in the morning, you know that no matter how bright and strong the sun is around midday, night must later follow. In the same way bull markets are followed by bear markets, with the consolidation and contraction in the bear market phase of the market cycle being necessary to strip out excess and waste and cull the weak and inefficient. What has happened in recent years is that central banks and governments have intervened with their liquidity injections to artificially extend the bull market—a bear market should have started several years back—it is like a guy who has just finished a marathon being pumped with drugs and told to run another 10 miles. What this means is that when the bear market eventually does hit, it arrives like a category 5 hurricane, which is actually what is called for now given the monstrous debt bubbles that have been inflated to gigantic proportions by all this relentless money pumping.

Since what they have done in recent years amounts to pure lunacy according to normal criteria, we must ask ourselves “Why did they do it?” The answer is twofold. The voting masses are economically infantile and reward politicians who give them what they want—what they want is endless prosperity and they will vote out any politician who threatens to inflict austerity on them, even if it’s for their own good. Second, the ZIRP policies of recent years have allowed for a massive transfer of wealth from the masses, the middle and lower classes, to the elites and super wealthy. The way it works is this: while the little folk continue to pay usurious interest rates to borrow money, the 1% pay almost nothing, borrow wads of cash and turn round and speculate in real estate, stock markets and other things like collectibles, driving huge bubbles in these markets, and then ideally cash out before the crash.

Now, you might say, when the Fed and other central banks realize that they have pulled the plug on the markets with their liquidity drain, won’t they simply reverse course to stabilize the markets and pump them up again. Yes, of course they will, but by then it will be too late, as a self-feeding liquidation cycle will be going full bore, and any changes they make will need time to take effect. However, what will happen soon after they reverse course is that the dollar will suddenly find it has no wind in its sails, and gold and silver will skyrocket at the prospect of an unprecedented new round of QE that will have to be of staggering proportions to stabilize the ship, and will set us on the course to hyperinflation. This will be the point at which hapless citizens start to realize that what happens in Venezuela doesn’t necessarily stay in Venezuela.

With a monstrous liquidity crunch bearing down on us, you don’t have to be a genius to work out what will happen to commodities. Look at 2008 as a dry run for what’s coming. Basically anything that can be sold for cash will be, and that will include commodities. It will only be when the central banks and governments reverse course into mega QE that commodities will quickly reverse and soar, especially the precious metals. Now we will …read more

From:: The Energy Report

Company Initiates Blockchain Technology for Real Estate Transactions to Counter Rampant Fraud

Source: Clive Maund for Streetwise Reports 10/02/2018

Technical analyst Clive Maund is following this company whose varied projects include blockchain technology for real estate transactions, a solar power project in Puerto Rico and a California land deal.

Although Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) hasn’t done much since we started following it, the outlook for it remains very favorable and its stock continues to look like it is readying to break out of a giant base pattern.

One important positive development for the company that has been moving forward is that its RealBlock blockchain technology looks like it is going to gain widespread use. The reason for this is that over the past couple of years there has been an explosion in cybercrime involving hackers breaking into email accounts, especially gmail, and intercepting the wire transfer instructions that have in the past been routinely sent between real estate companies and their clients via email for the purpose of expediting real estate transactions. The hackers intercept the wire transfer instructions and then reroute the wired funds into their own accounts. This problem is mushrooming and approaching crisis proportions and this is where Greenbriar’s RealBlock blockchain system comes into play, as it is an encrypted safe transfer system that shuts the hackers out. There is a lot of interest in this system and potentially a lot of big customers that would lead to substantial earnings per share for Greenbriar, and that’s without factoring in its Puerto Rican solar project and its innovative Smartglass technology, which are both believed to be moving forward.

Looking at Greenbriar’s latest 10-year chart, we see that although it has continued to zigzag around in recent months within the confines of its giant base pattern, its technical condition has continued to improve, with a buildup in upside volume driving both of its volume indicators higher and higher. This is an obvious sign of ongoing accumulation, and clearly breakout can be expected to occur when all of the stock available around current levels has been soaked up—and here we should note that Greenbriar only has about 19 million shares in issue, and the majority of these shares are tightly held by insiders—so it is obvious that the upside potential of this stock is very big once it decides to get moving.

On its latest 6-month chart we see that after another sharp run-up on strong volume early in September, it is rather overbought and rounding over beneath resistance, so it could drop back again. While the positive volume pattern suggests that it could break higher from the current pattern, if it doesn’t and instead drops back again, it will simply be regarded as presenting another opportunity to buy or build positions further.

The conclusion is that Greenbriar continues to look like it is readying for a major bull market advance, so we stay long and it is buy on any near-term dips, if any. The fact is that most investors have no idea how much this company is going to be worth and is already worth. Let’s just briefly consider this. With respect to the company’s Montalva solar project in Puerto Rico, following the devastation wrought to the island’s infrastructure by Hurricane Maria, the Federal Oversight and Management Board has classified Greenbriar’s solar project a “Critical Project” and recommended that the project get built, and a court ordered valuation found the net present value to Greenbriar to be US $191 million even if the project does not get built, which works out at $10 a share.

Then we have Greenbriar’s RealBlock blockchain technology, which is commencing commercial operations in just a few days through its tradename RealBloq. With the real estate industry having no choice but to adopt this technology because of the increasingly ruinous consequences of ballooning wire transaction fraud, which was up from $17 million in 2016 to $969 million in 2017 based on FBI reports, this is set to be a multi-billion dollar industry, and Greenbriar is already there with the solution.

Finally, the company’s land position in California, acquired at a very low price, is set to be developed which will yield a further $260 million to shareholders. So I’ll stick to the charts, you do the math—don’t worry, it’s easy “back of a matchbox” stuff, and to get you started I’ll remind you that Greenbriar only has 19 million shares in issue, most of which are tightly held.

Greenbriar Capital website.

Greenbriar Capital Corp., GRB.V, GEBRF on OTC, closed at C$1.39, $1.11 on 28th September 2018.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Greenbriar Capital. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for …read more

From:: The Energy Report

Western Uranium and Vanadium: A VERY Timely Name Change

Source: Michael J. Ballanger for Streetwise Reports 10/02/2018

Precious metals expert Michael Ballanger explains why he believes the stars are aligning for vanadium and uranium.

One glance at the two charts below is all that is needed to see why Western Uranium Corp. (WUC:CSE; WSTRF:OTCQX) implemented a special resolution to add “& Vanadium” to its corporate moniker. On September 27, the company put out a news release updating the market on a number of developments, the most interesting and appropriate being the name change that will take effect in early October.

Vanadium, for those who need a refresher, is used in the hardening of steel (90%) with the residual 10% being deployed in vanadium flow batteries, integral to the electric car movement. However, the main price driver for vanadium lies in new Chinese building code requirements pertaining to the need for high-strength steel in the construction industry. That coupled with air quality requirements has served to shift China from net exporter to net importer of vanadium. Hence, vanadium closed the session at $22.30/lb up 21.8% since I first wrote about the company on August 30th.

In addition to the big move in vanadium, uranium is ahead 5.3% in the same time frame, which has contributed to a stellar move and technical breakout in WUC. The decision to highlight vanadium in the new company name lies in its 35 million pound resource, the bulk of which is situated in the Colorado-based Sunday Mine. With the Section 232 investigation into uranium imports, domestic uranium resources are certain to favor U.S. developer/producers.

The company also announced that 983,000 options were priced at $2.15 per share and while these are modestly in-the-money, they certainly could have been priced earlier given the 200-dma sits at $0.94. I view this as an extremely shareholder-friendly action by management and one which enhances the optics for the prospective new shareholder as well as solidifying loyalty for existing ones.

I am adding a chart courtesy of John Newell of Fieldhouse Capital Management simply to provide readers with an independent assessment of the technical position of WUC. The old 2016 high at $2.75-2.80 is formidable resistance but once through there, the 2015 price range is certainly attainable.

WUC chart
Chart courtesy of John Newell and Stockcharts.

We are entering into a seasonally powerful time of the year for the uranium space and as the chart of Cameco shown below would illustrate, from now until late February should be a high-performance window for the uranium space and those with the all-important vanadium “kicker” such as WUC should be exceptional performers.

Lastly, the company is embarking on a series of investor conferences and private meetings commencing in October with the intention of eradicating the deep discount that exists when compared to peers. With a 97.8-million-pound of uranium-equivalent resource, the current market capitalization of US$39.1 million is absurdly low when compared to Fission Uranium’s 140.5-million-pound resource and $306 million market cap. A similar market cap to share price ratio would have Western Uranium and Vanadium Corp. trading closer to US$215 million or US$8.30 per share. For those interested in viewing an analysis of 30 uranium developers and producers, contact me and I will be pleased to send it along. Submit Your Info Here

Chart courtesy of Haywood Securities.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Michael J. Ballanger: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Western Uranium Corp. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies referred to in this article: Bonaventure Explorations Limited is owned by me and my wife and has earned consulting fees from Western Uranium in the past. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Western Uranium. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a …read more

From:: The Energy Report

Lithium Explorer Files PEA, Launches PFS Work for Nevada Project

Source: Streetwise Reports 10/01/2018

The company outlined the next steps for its lithium brine operation.

Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) filed an NI 43-101 compliant preliminary economic assessment (PEA) for its Nevada-based Clayton Valley lithium project, which CEO Bill Willoughby called “a significant milestone,” in a news release. The project advanced from the initial drill hole through the PEA stage in fewer than two years.

The company had announced the results for the PEA on September 6. As a reminder, the PEA for Clayton Valley outlined a 32.7% internal rate of return, a $1.45 billion net present value 8% and a 2.7-year payback period. It projected the mine would produce 15,000 tons per day of lithium carbonate for 40 years and initial capital costs would be about $482 million over two years.

The report, prepared by Global Resource Engineering (GRE) in Denver, Colo., is available at SEDAR and on Cypress Development’s website.

According to Cypress, next for Clayton Valley is a prefeasibility study, which will include additional infill drilling and various tests and studies—metallurgical, geophysical, hydrological and geotechnical—all aimed at fleshing out Clayton Valley’s economic assumptions.

“Our next steps have the potential to unlock shareholder value as we continue with infill drilling, further metallurgical studies, and a prefeasibility study to provide more detailed information related to the project’s economic assumptions,” Willoughby added.

The goals of metallurgical testing, already underway, are to define ideal leach conditions, configure the processing plant and “demonstrate production of high purity lithium carbonate suitable for battery usage,” the company stated.

With infill drilling, scheduled to start in one to two months, Cypress aims to upgrade resource categories and optimize the mine production schedule.

In the PEA, GRE recommended additional efforts. They include testing to determine the potential to mine, as byproducts, rare earth elements, most notably those identified during the PEA, scandium, neodymium and dysprosium. GRE also suggested Cypress evaluate different processing methods, such as membranes and ion exchange resins, and conduct “trade‐off studies related to capital and saleable electrical generation for the acid plant,” noted the news release.

The prefeasibility study, whose estimated budget is about $800,000, is expected to be finished in Q1/19.

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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) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Cypress Development. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE,
)

…read more

From:: The Energy Report