K9 Gold Corp.(TSXV: KNC / FSE: 5GP / OTC: WDFCF)-Close to Well-Known Projects in an Emerging Gold District in Atlantic Canada – Initiating Coverage
Highlights KNC’s 13,025-hectare Stony Lake gold project is located within the Cape Ray/Valentine...
Research Reports
Steppe Gold Limited (TSX: STGO / OTC: STPGF) Extended Mine Life With an Updated Resource
An updated resource estimate reflected an 82% increase to 2.45 Moz Au Eq (gold equivalent) vs the 2017 reserve/resource estimate of 1.35 Moz. 88% of the 2021 resource is in the M&I category. The significant increase in resources was a result of resource expansion at ATO-4 (one of three known mineralized pipes), inclusion of a maiden resource at Mungu, and lower cut-off grades amid higher gold prices.
Senior Gold Producers(NYSE: NEM/GOLD / TSX: NGT/ABX) Record Revenue in 2020; Recent Dip in Prices Offers Attractive Entry Point
The world’s two largest producers, Newmont and Barrick, recorded record revenue and EBITDA in 2020 due to stronger gold prices. Although both companies’ revenues were almost in line with our forecasts, their EPS fell below expectations due to higher than expected costs.
Monarch Mining Corporation (TSX: GBAR) – Formed After Selling Predecessor Company to Yamana for 5x Return – Initiating Coverage
Monarch Mining (“Monarch”) was spun-out from Monarch Gold, which was acquired by Yamana Gold (TSX: YRI) for $152M in December 2020. Yamana acquired Monarch Gold’s Wasamac property and the Camflo mill for $61M in cash, and $91M in shares.Prior to the acquisition, four advanced stage gold assets, and the Beacon mill, in the Abitibi mining camp in Quebec (valued at $47.5M), and $16M in cash, were spun-out into newly formed Monarch Mining. The assets sold to Yamana were part of a portfolio acquired from Richmont Mines in 2017 for just $25M. The sale to Yamana reflected a return of over 5x in under four years. Monarch Mining is run by the same team that ran Monarch Gold.
Gold X Mining Corp. (TSXV: GLDX / OTCQX: GLDXF) Advanced Stage Gold in Guyana Headed by Friedland and Matysek – Initiating Coverage
We believe that Gold X Mining Corp. (“GLDX”, “company”) has one of the best management teams/boards in the junior resource space. In 2020, the company appointed Robert Friedland as its Non-Executive Chairman, and Paul Matysek as the CEO. Mr. Matysek has sold five juniors totaling over $2B in the last decade.
Atrium Mortgage Investment Corporation (TSX: AI)-2020 Dividends Exactly Equals our Estimate; Preparing to Ramp Up Lending
Interest payment collections have been in line with historical rates through the pandemic. As of February 9, 2021, Atrium had collected 98% of its mortgage interest due in January. Announced a $0.02 special dividend, bringing 2020 dividends to $0.92 per share, exactly in line with our estimate.
Blue Lagoon Resources (CSE: BLLG / OTC: BLAGF / Frankfurt: 7BL) -Near-Term Production Potential With Exploration Upside in B.C. – Initiating Coverage
Highlights BLLG holds a portfolio of projects in B.C. It is currently focused on advancing its...
Inception Mining Inc. (OTCQ: IMII) – Ramping up Production After Disruption Due to the Pandemic and Hurricanes
Highlights As a result of the production disruption due to the pandemic and two hurricanes (from...
THC BioMed Intl Ltd. (CSE: THC / OTC: THCBF / FSE: TFHC) Adds Capacity for Edibles & Beverages
Highlights THC announced yesterday that it has completed construction of additional space for...
Capital Direct I Income Trust – Minimally Impacted by the Pandemic / Lowers Risk Profile
Despite the pandemic, Capital Direct expanded its mortgage receivable by 21% YTD to $243M, across 1,697 properties, by the end of Q3-2020. The company maintains its spot among the 15 largest mortgage investment entities in Canada.Due to lower lending rates, and slightly higher losses (0.28% of portfolio in 2020-9M vs 0.24% in 2019), annualized dividends declined in 2020 (9M) to 6.9%, from 7.4% in 2019 (full year). We expect yields to increase to 7.2% in 2021.
Builders Capital Mortgage Corp.(TSXV: BCF)- Highest Dividend Yielding Public MIC
BCF is one of the five publicly traded MICs in the country. BCF’s portfolio is relatively small vs other publicly traded MICs. However, the company has the highest lending rate, and dividend yield, due to its focus on construction mortgages, which is a higher-risk segment.
ION Energy Ltd. (TSXV: ION / FRA: 5YB / OTC: IONGF/ OTCQB: IONGF) – Preparing for the First Ever Lithium Brine Drill Program in Mongolia – Initiating Coverage
ION’s share price is up 47% since our introductory note on December 16, 2020. The company is recipient of Mongolia’s first ever exploration license for lithium brine.ION’s project is strategically located just 24 km from the border with China – the world’s largest Electric Vehicle (“EV”) and battery manufacturer.
South Star Mining Corp. (TSXV: STS / OTCQB: STSBF) Receives Mining License / Advancing to Production Next Year
On January 6, 2021, STS announced receipt of a three-year mining license for its 100% owned Santa Cruz graphite project in Brazil.STS has all the required permits to advance to construction, commissioning, and production.Management intends to develop the project in two phases: a Phase- 1/5,000 tonne per year (“tpy”) pilot plant operation (with a CAPEX estimate of US$7.3M) in the first two years, followed by a larger 25,000 tpy Phase 2 operation (US$27.2M CAPEX).
Apple Inc.(NASDAQ: AAPL) – Q1 Earnings Beat Expectations / Stronger than Expected Sales in China
We are raising our revenue forecasts for FY2021, and FY2022, on the back of faster growth from iPhone sales as well as strong contribution from wearables, home and accessories, and services. We expect iPhone sales to remain strong on continued consumer upgrading, as 5G networks have yet to be fully implemented across the globe. As a result of our higher revenue/EPS projections, and higher sector-average valuation metrics, we are raising our fair value estimate by 21% to $148.12, suggesting a potential return (including dividends) of 8.3% in FY2021.
Golden Minerals Company (NYSE American / TSX: AUMN) Commences Production Ahead of Schedule
Highlights On January 13, 2021, AUMN announced the commencement of production at the Rodeo project...
Microsoft Corp. (NASDAQ: MSFT)-Strong Q2 / Growth Potential Already Priced-In
Q2 revenue was mainly driven by 51.2% YoY growth in the gaming segment coupled with sustained revenue growth in server products and cloud services (25.8% YoY). We expect server products and cloud services to sustain growth momentum as we believe flexible work arrangements will continue to be part of business operations post-pandemic.
Braveheart Resources Inc. (TSXV: BHT / OTCQB: RIINF)- Acquires a Past-Producing Copper-Nickel Mine for 1% of its NPV
BHT’s shares are up 47% since we initiated coverage in November 2020. In December 2020, the company completed a previously announced acquisition of the Thierry mine project from Cadillac Ventures (TSXV: CDC) for $2.2M in cash and shares. Thierry is a past-producing copper and nickel mine in Ontario.
Noram Ventures Inc. (TSXV: NRM / OTCQB: NRVTF) Albermale’s Announcement Increases Likelihood of M&A
Noram’s shares are up 400% since we initiated coverage in September 2020. Battery metals stocks have rallied in the past few months based on growing optimism on the sector, and the Democrats’ win in U.S. elections. Lithium carbonate prices in China were up 24% last month, to US$8,800/t. Our long-term forecast is US$10,000/t.
THC BioMed Intl Ltd. (CSE: THC / OTC: THCBF / FSE: TFHC)-Aiming to be a Leader in Cannabis Beverages and Edibles – Initiating Coverage
THC BioMed Intl Ltd. (“THC BioMed”, the “company”) is a cannabis 2.0 focused company positioning itself as a leader in beverages and edibles. The company’s two primary products at this point are the THC Kiss beverage shot, and THC Kiss gummies, both part of the THC Kiss product line.
Timbercreek Financial Corp. (TSX: TF) Minimally Impacted by the Pandemic; Raising Dividend Forecasts
TF’s interest collections have been in line with historical rates through the pandemic. Multi-family properties (TF’s primary focus) have not been materially impacted by the pandemic because of benefits offered by the government to businesses and unemployed individuals.
CIBT Education Group Inc. (TSX: MBA) Diversifies Tenant-Base; Expecting Strong H2-FY2021 from Vaccine Rollout – FINAL REPORT
CIBT’s domestic education business has been more resilient as the company was able to quickly switch to online delivery. The language business, and the student housing division, were significantly impacted due to lack of international students from travel restrictions.
Banxa Holdings Inc. (TSXV: BNXA)-Cryptocurrency Payment Solution Company’s Share Price up 2.5x After Going Public Yesterday – Introductory Note
We are introducing Banxa Holdings Inc. (“company,” “Banxa”), a Payment Service Provider (fiat-to-crypto and vice versa) (PSP) company based in Australia. Banxa went public yesterday through a reverse-takeover of a TSXV listed capital pool company. Banxa provides an international compliant solution enabling customers to engage in fiat-to-crypto as well as crypto-to-fiat transactions. The company targets both consumers (“B2C”) and businesses (“B2B”) in over 130 countries. Its solution permits the exchange of fiat currencies into bitcoin and other cryptocurrencies, and vice versa.
Universal Ibogaine Inc.-Focused on New Treatment for Opioid Addiction and Other Substances Going Public – Introductory Note
In this note we are introducing Universal Ibogaine Inc. (“UI”), a privately held company building an addiction treatment business. UI plans to file a Clinical Trial Application with Health Canada by mid 2021, as well as open ibogaine based psychotherapy centres in jurisdictions where ibogaine use is legal. The company is scheduled to go public through a reverse-takeover (“RTO”) transaction with a TSXV listed capital pool company. The transaction is expected to close in February 2021.
Kontrol Energy Corp. (CSE: KNR / OTCQB: KNRLF / FSE: 1K8) Commencing BioCloud Deliveries in January
We found that a BioCloud device was tested at a McDonald’s (NYSE:MCD) location in Ontario. Management has indicated that there are multiple units currently in the field undergoing tests by potential buyers.
Delta 9 Cannabis Inc.(TSX: DN / OTCQX: VRNDF) – Launching Decontamination and COVID-19 Vaccine Storage Tech
Highlights Delta 9 Cannabis (“D9”) recorded $13.13M in revenue in Q3, up 97% YoY, and $37.90M in...
Galane Gold Ltd. (TSXV: GG / OTCQB: GGGOF)-Ramping up Production with Easing Restrictions
With easing restrictions in both South Africa and Botswana, GG’s Q3 production increased 36% QoQ at Mupane (Botswana), and 50% at Galaxy (South Africa), and beat our expectations. We are raising our 2020 production forecast from 30.5 Koz to 32.5 Koz. Operating cost increased 5% YoY, and 2% QoQ, to $1,082/oz in Q3, and was higher than our expectations. However, gross profit increased 82% YoY, and 21% QoQ, to $790/oz, due to stronger gold prices.
Elys Game Technology, Corp. (NASDAQ: ELYS) Seasoned Sports Betting Tech Company Entering the U.S. Market – Resuming Coverage
Since our preliminary note on September 25, 2020, Elys’s share price is up 100%. ELYS is currently focused on entering the U.S. market, and uplisted its shares to the NASDAQ in December 2019.
QMX Gold Corporation (TSXV: QMX / OTC: QMXGF) Backing from Eldorado and Osisko Gold: Initiating Coverage
QMX Gold is focused on exploring its large land package, covering over 200 sq. km, in the Val d’Or East Mining Camp, southeast of the Abitibi Belt – one of the richest mining regions in the world. Eldorado Gold (TSX: ELD), Osisko Gold Royalties (TSX: OR), O3 Mining (TSXV: OIII), and Probe Metals (TSXV: PRB) are significant investors of QMX, and are active players in the region. We believe this creates opportunities for QMX to position itself as an acquisition candidate.
ION Energy Ltd. (TSXV: ION / FRA: 5YB)-Mongolia’s First Lithium Brine Explorer – Introductory Note
ION Energy went public through a reverse takeover in August 2020. It is the recipient of Mongolia’s first ever exploration license for lithium brine. Although the country has never been explored for lithium brine, previous studies suggest that its salt lakes hold potential for lithium. ION’s project, which is in early exploration stage, is strategically located just 24 km by road from the border with China – the world’s largest Electric Vehicle (“EV”) and battery manufacturer.
Indiva Limited (TSXV: NDVA / OTCQX: NVDAF) Wana Gummies Start Strong; Expecting Record Q4 – FINAL REPORT
In Q3-2020, Indiva reported $3M in revenue, up 1,532% YoY, and 18% QoQ, inline with our expectations. The increase was attributed to the introduction of WanaTM Sour Gummies last quarter, partially offset by a 41% QoQ decline in sales of Bhang® Chocolates due to seasonality in chocolate sales, and fewer new additions to the Bhang product line. Sales of gummies were well above our expectations, with $1.23M in revenue in the first month of sales (September), capturing 41% of the quarter’s revenue.
Inca One Gold Corp. (TSXV: IO / OTC: INCAF / FSE: SU9) Ramping up Production with Relaxed COVID-19 Restrictions
Q1-FY2021 (quarter ended July 31, 2020) production from Inca One was down 68% YoY to 1.7 Koz, and missed our expectations. From March to July, the company significantly scaled back activities as a result of the pandemic. Production has been ramping up since July. During July-September 2020, the company produced 3.5 Koz, up 81% QoQ. We expect production to continue to increase as Peru has been experiencing a decline in daily new cases of COVID-19. Despite lower sales, revenue increased 18% YoY to $6.6M in Q1 due to stronger gold prices. Gross profit was $163/oz (9% of revenue) in Q1-FY2021 vs $51 per oz (4%) in FY2020. Gross margins were well above our expectations.
Canadian Banks(TSX: RY / TD / BNS / BMO / CM) Raising FY2021 Forecasts Amid Improved Outlook from Vaccine Rollout
The Big Five (except CIBC) reported stronger than expected earnings in FY2020. On average, earnings were 11% higher than our expectations. Earnings were higher due to lower-than-expected provisions, as well as faster loan growth in Q4.
Kontrol’s COVID Detection Unit Tested at a McDonald’s Location
Kontrol Energy Corp. (CSE: KNR / Current Share Price: $3.42 / FRC Fair Value Estimate: $6.72) announced today that it filed patent applications for its BioCloud technology in the U.S. and Canada. On another positive note, we found that a McDonald’s (NYSE: MCD) location in London, Ontario, gave BioCloud a test run last week. We reached out to the location’s management (ended up talking to a shift supervisor), and learned that KNR’s device was installed for a day to screen employees prior to checking in to work.
Trillion Energy International Inc. (CSE: TCF / Frankfurt: 3P2N / OTC: TCFF) Gas Producer in Turkey with an Ambitious Expansion Strategy – Initiating Coverage
Highlights Trillion Energy holds two oil and gas producing assets in Turkey, and two...
E3 Metals Corp. (TSXV: ETMC / OTC: EEMMF) Impressive PEA Overshadows Livent Withdrawal from JV
Highlights We were pleased with the results of a Preliminary Economic Assessment (“PEA”) announced...
Three Point Capital Corp. Minimally Impacted by COVID-19
Three Point remains focused on first mortgages on single family residential properties. At the end of Q3, first mortgages accounted for 93% of the total portfolio. The loan-to-value (“LTV”) remains low at just 55%. The MIC has been diversifying its portfolio into Ontario (“ON”). At the end of Q3, B.C. accounted for 62%, and ON accounted for 29%.
Kidoz Inc.(TSXV: KIDZ / OTC: KDOZF) Q3 Revenue up 161% QoQ and Beats Expectations
Q3 revenue was $1.9M, up 161% QoQ, and 51% YoY. We were pleasantly surprised by the spike in revenue as the outlook for ad spending this year had been weak due to the pandemic.
Inner Spirit Holdings Ltd. (CSE: ISH) Q3 Revenue up 49% QoQ, Second Consecutive Quarter of Positive EBITDA
Inner Spirit Holdings Ltd.’s Q3-2020 revenue was $8.09M, a YoY increase of 152%, and a QoQ increase of 49%. Net loss improved QoQ from $1.23M (EPS: -$0.01) to $1.01M (EPS: -$0.00). While revenue beat our expectations, gross margins were relatively inline; actual 2020 (9M): 47% vs our estimate of 48%.
Steppe Gold Limited (TSX: STGO / OTC: STPGF) Minimally Impacted by COVID-19
Unlike most gold producers, Steppe Gold’s operations have not been materially impacted by the pandemic as most employees reside on-site. Also, as 100% of the produced gold is sold within Mongolia, the company is not reliant on export channels.
Kaya Holdings Inc. (OTCQB: KAYS) – Vertically Integrated U.S. Cannabis Company to Tap into Growth Opportunities in Europe – Introductory Note
In this note, we are introducing Kaya Holdings Inc. (“company”, “KAYS”; market capitalization:US$6M), a U.S. based company operational since 2014. According to management, KAYS is the first publicly traded company in the U.S. to own and operate a medical marijuana dispensary. Their business model is focused on cultivating, processing, and retailing medical and recreational cannabis.
European Residential REIT (TSX: ERE.UN) A Unique Opportunity to Own European Rental Properties – Initiating Coverage
European Residential Real Estate Investment Trust (“ERES”, “company”) provides exposure to rental markets in Europe, with a focus on the Netherlands, one of the most attractive regions in Europe. The country is one of the top performing economies in the European Union, with above average per capita income, below average unemployment rate, and one of the strongest export economies.
Caldas Gold Corp. (TSXV: CGC / OTCQX: ALLXF) Closes Streaming Deal with Wheaton Precious/Q3 Production up 108% QoQ
Caldas Gold Corp.’s (“company”, “CGC”) Q3 revenue was up 108% QoQ. EBITDA improved QoQ from -$0.8M to $1.7M. Although revenue beat expectations due to higher production, EBITDA was lower due to higher than expected costs. We are raising our 2020 production forecast from 22 Koz to 23.5 Koz, but lowering EBITDA forecast due to higher cash costs.
FinCanna Capital Corp. (CSE: CALI / OTCQB: FNNZF) Starts Receiving Royalty Revenue
In Q1-FY2021 (quarter ended July 31, 2020), FinCanna Capital Corp.(“CALI”, “FinCanna”) generated $55k in revenue, of which, $44k was from royalties, and the remaining was from accrued interest (non-cash) from a loan offered to its portfolio company named CTI. Although we were pleased with the commencement of royalty revenue, they were well below our expectations. CALI reported a net loss of $0.44 million (EPS: -$0.00) in Q1. As Q1 was the first quarter of royalty revenue, we believe it is not appropriate to compare Q1’s performance with prior quarters.
Mammoth Resources Corp. (TSXV: MTH) Regrouping After Centerra Terminates Option
In September 2020, Centerra Gold Inc. (TSX: CG) notified Mammoth Resources Corp. (“company”, “Mammoth”, “MTH”) that it will not be continuing with its option agreement on MTH’s Tenoriba gold-silver project in southwestern Chihuahua State, Mexico. This move was totally unexpected as CG had recently filed a permit application to drill 139 holes, and had two drill companies bidding for a drill contract. CG stated that their decision to cease exploration was not a reflection of Tenoriba’s potential.
Gran Colombia Gold Corp. (TSX: GCM / OTCQX: TPRFF) Triples Dividend / Q3 Production Beat Expectations
Gran Colombia Gold Corp. Research Report : Gran Colombia Gold’s (“company”, “GCM”) Q3 revenue was up 36% YoY, while EBITDA and net income were up 50% and 168%, respectively. Although revenue beat expectations due to higher production, EBITDA was lower due to higher than expected costs. Q3 cash cost of $796/oz still remains on the lower-end of gold producers.
GMV Minerals Inc. (TSXV: GMV / OTCQB: GMVMF) Updated PEA Demonstrates Scalability and Flexibility
GMV Minerals Inc. research report: On November 3, 2020, GMV Minerals (“company”, GMV”) announced results of an updated Preliminary Economic Assessment (“PEA”) on its Mexican Hat gold project in southeast Arizona. Management decided to update a previously completed 2018 PEA to account for higher gold prices and evaluate the economics of a lower throughput/lower initial CAPEX scenario.
Namaste Technologies Inc. (TSXV: N / FRA: M5BQ / OTC: NXTTF) Q3 Revenue Inline with Projections
Namaste Technologies Inc. (“Namaste”, the “company”) reported fiscal Q3-2020 financials (quarter ended August 31, 2020), with $5.7M in net revenue, up 49% YoY due to stronger product sales, and in line with our expectations. Flagship, CannMart, was the fastest growing segment, and contributed to 33% of this year’s revenue vs 3% in 2019-9M.
Global Energy Metals (TSXV: GEMC / OTCQB: GBLEF) – Diversifies Exposure to Battery Metals with Nickel-Cobalt-Copper Assets in Nevada – FINAL REPORT
Highlights In October 2020, Global Energy Metals (“company”, GEMC”) closed on a letter-of-intent...
K9 Gold Corp.(TSXV: KNC / FSE: 5GP / OTC: WDFCF)-Close to Well-Known Projects in an Emerging Gold District in Atlantic Canada – Initiating Coverage
Highlights KNC’s 13,025-hectare Stony Lake gold project is located within the Cape Ray/Valentine...
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Steppe Gold Limited (TSX: STGO / OTC: STPGF) Extended Mine Life With an Updated Resource
An updated resource estimate reflected an 82% increase to 2.45 Moz Au Eq (gold equivalent) vs the 2017 reserve/resource estimate of 1.35 Moz. 88% of the 2021 resource is in the M&I category. The significant increase in resources was a result of resource expansion at ATO-4 (one of three known mineralized pipes), inclusion of a maiden resource at Mungu, and lower cut-off grades amid higher gold prices.
Read More
Senior Gold Producers(NYSE: NEM/GOLD / TSX: NGT/ABX) Record Revenue in 2020; Recent Dip in Prices Offers Attractive Entry Point
The world’s two largest producers, Newmont and Barrick, recorded record revenue and EBITDA in 2020 due to stronger gold prices. Although both companies’ revenues were almost in line with our forecasts, their EPS fell below expectations due to higher than expected costs.
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Monarch Mining Corporation (TSX: GBAR) – Formed After Selling Predecessor Company to Yamana for 5x Return – Initiating Coverage
Monarch Mining (“Monarch”) was spun-out from Monarch Gold, which was acquired by Yamana Gold (TSX: YRI) for $152M in December 2020. Yamana acquired Monarch Gold’s Wasamac property and the Camflo mill for $61M in cash, and $91M in shares.Prior to the acquisition, four advanced stage gold assets, and the Beacon mill, in the Abitibi mining camp in Quebec (valued at $47.5M), and $16M in cash, were spun-out into newly formed Monarch Mining. The assets sold to Yamana were part of a portfolio acquired from Richmont Mines in 2017 for just $25M. The sale to Yamana reflected a return of over 5x in under four years. Monarch Mining is run by the same team that ran Monarch Gold.
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Gold X Mining Corp. (TSXV: GLDX / OTCQX: GLDXF) Advanced Stage Gold in Guyana Headed by Friedland and Matysek – Initiating Coverage
We believe that Gold X Mining Corp. (“GLDX”, “company”) has one of the best management teams/boards in the junior resource space. In 2020, the company appointed Robert Friedland as its Non-Executive Chairman, and Paul Matysek as the CEO. Mr. Matysek has sold five juniors totaling over $2B in the last decade.
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Atrium Mortgage Investment Corporation (TSX: AI)-2020 Dividends Exactly Equals our Estimate; Preparing to Ramp Up Lending
Interest payment collections have been in line with historical rates through the pandemic. As of February 9, 2021, Atrium had collected 98% of its mortgage interest due in January. Announced a $0.02 special dividend, bringing 2020 dividends to $0.92 per share, exactly in line with our estimate.
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Blue Lagoon Resources (CSE: BLLG / OTC: BLAGF / Frankfurt: 7BL) -Near-Term Production Potential With Exploration Upside in B.C. – Initiating Coverage
Highlights BLLG holds a portfolio of projects in B.C. It is currently focused on advancing its...
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Inception Mining Inc. (OTCQ: IMII) – Ramping up Production After Disruption Due to the Pandemic and Hurricanes
Highlights As a result of the production disruption due to the pandemic and two hurricanes (from...
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THC BioMed Intl Ltd. (CSE: THC / OTC: THCBF / FSE: TFHC) Adds Capacity for Edibles & Beverages
Highlights THC announced yesterday that it has completed construction of additional space for...
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Capital Direct I Income Trust – Minimally Impacted by the Pandemic / Lowers Risk Profile
Despite the pandemic, Capital Direct expanded its mortgage receivable by 21% YTD to $243M, across 1,697 properties, by the end of Q3-2020. The company maintains its spot among the 15 largest mortgage investment entities in Canada.Due to lower lending rates, and slightly higher losses (0.28% of portfolio in 2020-9M vs 0.24% in 2019), annualized dividends declined in 2020 (9M) to 6.9%, from 7.4% in 2019 (full year). We expect yields to increase to 7.2% in 2021.
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Builders Capital Mortgage Corp.(TSXV: BCF)- Highest Dividend Yielding Public MIC
BCF is one of the five publicly traded MICs in the country. BCF’s portfolio is relatively small vs other publicly traded MICs. However, the company has the highest lending rate, and dividend yield, due to its focus on construction mortgages, which is a higher-risk segment.
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ION Energy Ltd. (TSXV: ION / FRA: 5YB / OTC: IONGF/ OTCQB: IONGF) – Preparing for the First Ever Lithium Brine Drill Program in Mongolia – Initiating Coverage
ION’s share price is up 47% since our introductory note on December 16, 2020. The company is recipient of Mongolia’s first ever exploration license for lithium brine.ION’s project is strategically located just 24 km from the border with China – the world’s largest Electric Vehicle (“EV”) and battery manufacturer.
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South Star Mining Corp. (TSXV: STS / OTCQB: STSBF) Receives Mining License / Advancing to Production Next Year
On January 6, 2021, STS announced receipt of a three-year mining license for its 100% owned Santa Cruz graphite project in Brazil.STS has all the required permits to advance to construction, commissioning, and production.Management intends to develop the project in two phases: a Phase- 1/5,000 tonne per year (“tpy”) pilot plant operation (with a CAPEX estimate of US$7.3M) in the first two years, followed by a larger 25,000 tpy Phase 2 operation (US$27.2M CAPEX).
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Apple Inc.(NASDAQ: AAPL) – Q1 Earnings Beat Expectations / Stronger than Expected Sales in China
We are raising our revenue forecasts for FY2021, and FY2022, on the back of faster growth from iPhone sales as well as strong contribution from wearables, home and accessories, and services. We expect iPhone sales to remain strong on continued consumer upgrading, as 5G networks have yet to be fully implemented across the globe. As a result of our higher revenue/EPS projections, and higher sector-average valuation metrics, we are raising our fair value estimate by 21% to $148.12, suggesting a potential return (including dividends) of 8.3% in FY2021.
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Golden Minerals Company (NYSE American / TSX: AUMN) Commences Production Ahead of Schedule
Highlights On January 13, 2021, AUMN announced the commencement of production at the Rodeo project...
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Microsoft Corp. (NASDAQ: MSFT)-Strong Q2 / Growth Potential Already Priced-In
Q2 revenue was mainly driven by 51.2% YoY growth in the gaming segment coupled with sustained revenue growth in server products and cloud services (25.8% YoY). We expect server products and cloud services to sustain growth momentum as we believe flexible work arrangements will continue to be part of business operations post-pandemic.
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Braveheart Resources Inc. (TSXV: BHT / OTCQB: RIINF)- Acquires a Past-Producing Copper-Nickel Mine for 1% of its NPV
BHT’s shares are up 47% since we initiated coverage in November 2020. In December 2020, the company completed a previously announced acquisition of the Thierry mine project from Cadillac Ventures (TSXV: CDC) for $2.2M in cash and shares. Thierry is a past-producing copper and nickel mine in Ontario.
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Noram Ventures Inc. (TSXV: NRM / OTCQB: NRVTF) Albermale’s Announcement Increases Likelihood of M&A
Noram’s shares are up 400% since we initiated coverage in September 2020. Battery metals stocks have rallied in the past few months based on growing optimism on the sector, and the Democrats’ win in U.S. elections. Lithium carbonate prices in China were up 24% last month, to US$8,800/t. Our long-term forecast is US$10,000/t.
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THC BioMed Intl Ltd. (CSE: THC / OTC: THCBF / FSE: TFHC)-Aiming to be a Leader in Cannabis Beverages and Edibles – Initiating Coverage
THC BioMed Intl Ltd. (“THC BioMed”, the “company”) is a cannabis 2.0 focused company positioning itself as a leader in beverages and edibles. The company’s two primary products at this point are the THC Kiss beverage shot, and THC Kiss gummies, both part of the THC Kiss product line.
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Timbercreek Financial Corp. (TSX: TF) Minimally Impacted by the Pandemic; Raising Dividend Forecasts
TF’s interest collections have been in line with historical rates through the pandemic. Multi-family properties (TF’s primary focus) have not been materially impacted by the pandemic because of benefits offered by the government to businesses and unemployed individuals.
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CIBT Education Group Inc. (TSX: MBA) Diversifies Tenant-Base; Expecting Strong H2-FY2021 from Vaccine Rollout – FINAL REPORT
CIBT’s domestic education business has been more resilient as the company was able to quickly switch to online delivery. The language business, and the student housing division, were significantly impacted due to lack of international students from travel restrictions.
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Banxa Holdings Inc. (TSXV: BNXA)-Cryptocurrency Payment Solution Company’s Share Price up 2.5x After Going Public Yesterday – Introductory Note
We are introducing Banxa Holdings Inc. (“company,” “Banxa”), a Payment Service Provider (fiat-to-crypto and vice versa) (PSP) company based in Australia. Banxa went public yesterday through a reverse-takeover of a TSXV listed capital pool company. Banxa provides an international compliant solution enabling customers to engage in fiat-to-crypto as well as crypto-to-fiat transactions. The company targets both consumers (“B2C”) and businesses (“B2B”) in over 130 countries. Its solution permits the exchange of fiat currencies into bitcoin and other cryptocurrencies, and vice versa.
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Universal Ibogaine Inc.-Focused on New Treatment for Opioid Addiction and Other Substances Going Public – Introductory Note
In this note we are introducing Universal Ibogaine Inc. (“UI”), a privately held company building an addiction treatment business. UI plans to file a Clinical Trial Application with Health Canada by mid 2021, as well as open ibogaine based psychotherapy centres in jurisdictions where ibogaine use is legal. The company is scheduled to go public through a reverse-takeover (“RTO”) transaction with a TSXV listed capital pool company. The transaction is expected to close in February 2021.
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Kontrol Energy Corp. (CSE: KNR / OTCQB: KNRLF / FSE: 1K8) Commencing BioCloud Deliveries in January
We found that a BioCloud device was tested at a McDonald’s (NYSE:MCD) location in Ontario. Management has indicated that there are multiple units currently in the field undergoing tests by potential buyers.
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Delta 9 Cannabis Inc.(TSX: DN / OTCQX: VRNDF) – Launching Decontamination and COVID-19 Vaccine Storage Tech
Highlights Delta 9 Cannabis (“D9”) recorded $13.13M in revenue in Q3, up 97% YoY, and $37.90M in...
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Galane Gold Ltd. (TSXV: GG / OTCQB: GGGOF)-Ramping up Production with Easing Restrictions
With easing restrictions in both South Africa and Botswana, GG’s Q3 production increased 36% QoQ at Mupane (Botswana), and 50% at Galaxy (South Africa), and beat our expectations. We are raising our 2020 production forecast from 30.5 Koz to 32.5 Koz. Operating cost increased 5% YoY, and 2% QoQ, to $1,082/oz in Q3, and was higher than our expectations. However, gross profit increased 82% YoY, and 21% QoQ, to $790/oz, due to stronger gold prices.
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Elys Game Technology, Corp. (NASDAQ: ELYS) Seasoned Sports Betting Tech Company Entering the U.S. Market – Resuming Coverage
Since our preliminary note on September 25, 2020, Elys’s share price is up 100%. ELYS is currently focused on entering the U.S. market, and uplisted its shares to the NASDAQ in December 2019.
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QMX Gold Corporation (TSXV: QMX / OTC: QMXGF) Backing from Eldorado and Osisko Gold: Initiating Coverage
QMX Gold is focused on exploring its large land package, covering over 200 sq. km, in the Val d’Or East Mining Camp, southeast of the Abitibi Belt – one of the richest mining regions in the world. Eldorado Gold (TSX: ELD), Osisko Gold Royalties (TSX: OR), O3 Mining (TSXV: OIII), and Probe Metals (TSXV: PRB) are significant investors of QMX, and are active players in the region. We believe this creates opportunities for QMX to position itself as an acquisition candidate.
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ION Energy Ltd. (TSXV: ION / FRA: 5YB)-Mongolia’s First Lithium Brine Explorer – Introductory Note
ION Energy went public through a reverse takeover in August 2020. It is the recipient of Mongolia’s first ever exploration license for lithium brine. Although the country has never been explored for lithium brine, previous studies suggest that its salt lakes hold potential for lithium. ION’s project, which is in early exploration stage, is strategically located just 24 km by road from the border with China – the world’s largest Electric Vehicle (“EV”) and battery manufacturer.
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Indiva Limited (TSXV: NDVA / OTCQX: NVDAF) Wana Gummies Start Strong; Expecting Record Q4 – FINAL REPORT
In Q3-2020, Indiva reported $3M in revenue, up 1,532% YoY, and 18% QoQ, inline with our expectations. The increase was attributed to the introduction of WanaTM Sour Gummies last quarter, partially offset by a 41% QoQ decline in sales of Bhang® Chocolates due to seasonality in chocolate sales, and fewer new additions to the Bhang product line. Sales of gummies were well above our expectations, with $1.23M in revenue in the first month of sales (September), capturing 41% of the quarter’s revenue.
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