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’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. (“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.
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’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.
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.
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.
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.
Highlights Delta 9 Cannabis (“D9”) recorded $13.13M in revenue in Q3, up 97% YoY, and $37.90M in...
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.
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 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 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.
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.
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.
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 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.
Highlights Trillion Energy holds two oil and gas producing assets in Turkey, and two...
Highlights We were pleased with the results of a Preliminary Economic Assessment (“PEA”) announced...
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%.
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.’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%.
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.
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 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.’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.
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.
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. 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. 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. (“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.
Highlights In October 2020, Global Energy Metals (“company”, GEMC”) closed on a letter-of-intent...
Highlights All three of the world’s largest gold producers, Barrick, Newmont and AngloGold,...
Braveheart Resources Inc. (“company”, “BHT”) is focused on bringing its 100% owned Bull River copper-gold-silver mine in B.C. back into production. The company is also in the process of acquiring another historic producer (copper-nickel), named the Thierry mine, in Ontario.
Gold Springs Resource Corp. (“company”, “GRC”) is focused on delineating a multi-million ounce gold resource on its 100% owned Gold Springs project on the Nevada-Utah border in the Western U.S
Panoro Minerals Ltd. (“company”, “PML”) is a copper focused junior with nine projects in Southern Peru. Hudbay Minerals (TSX: HBM) owns 12% and is the largest shareholder. PML’s portfolio includes two advanced stage assets – Cotabambas (copper-gold) and Antilla (copper) – with a combined After-Tax Net Present Value (“AT-NPV”) at 7.5% of US$989M, per Preliminary Economic Assessments (“PEA”) completed on the projects. Panoro’s Enterprise Value (“EV”) of $28M is just 2% of the combined AT-NPV.
Atrium’s Interest payment collections have been in line with historical rates through the pandemic. After a quiet Q2, the company ramped up lending in Q3; net mortgages outstanding increased 2.8% QoQ; management expects Q4 to be much stronger and lend approximately $100M in the quarter vs $48M in Q3 and $16M in Q2.
We had predicted the decline in iPhone sales as Apple had announced earlier that their new iPhone 12 series will only be launched after the fiscal year-end. We expect a strong Q1-FY2021 based on sales from iPhone 12.
Wearables, home, and accessories, and services reported strong revenue growth. Although we are concerned about increasing competition for iPhone, we are slightly raising our revenue and EPS forecasts for FY2021 based on stronger growth in wearables, home and accessories, and services. Our forecasts are on the conservative-end of consensus forecasts.
Highlights: Q1-FY2021 (quarter ended September 30, 2020) revenue was up 12% YoY, inline with our expectation, but beat market consensus by 4%. As expected, revenue was driven by a surge in demand for cloud services amid a work from home environment due to the pandemic. We expect a high percentage of businesses to move to a permanent work-from-home environment, even after the pandemic. This is positive for MSFT, and other cloud providers, as the recent surge in demand for cloud products will likely stay.
In Q3-2020, the company reported $904k in revenue (in line with our expectations), an increase of 17% YoY, and a decrease of 23% QoQ. EBITDA also showed a similar trend, improving YoY, but declining QoQ. The Bay City indoor production facility in Michigan (acquisition expected to be completed by Q2-2021) received its first Class-C adult-use (recreational) cannabis production license in August 2020. Recreational cannabis prices were 30% higher than medical in September.
In Q2-2020, AgraFlora Organics International Inc. reported a 25% QoQ increase in revenue to $0.46 million. Farmako (wholly-owned German medical cannabis distributor) continues to be the source of revenue, while the other divisions await licenses. We are lowering our 2020 revenue forecast as we were expecting sales from the Delta and Winnipeg facilities to commence in 2020. Management currently estimates sales to commence in Q1-2021.
Highlights E3 Metals Corp. (“company” and “E3”) is focused on applying its proprietary Direct...
Tartisan Nickel Corp. is developing its 100% owned advanced stage Kenbridge nickel-copper-cobalt deposit in northwest Ontario. The company also holds a 100% interest in two exploration stage polymetallic projects (Peru and Ontario), and investments in three publicly listed juniors currently valued at $7M.
Falcon Gold Corp. (“company”, “FG”) is building a portfolio of gold and polymetallic projects in the Red Lake region in Ontario and B.C. The current portfolio includes five projects, including two joint ventured with IAMGOLD / TSX: IMG and International Montoro Resources / TSXV: IMT
CIBT announced its intent to spin-off its real estate business, valued at $580 million by third-party evaluators, into a publicly listed entity on an exchange in the U.S. We believe this move will not only attract global investors, but also allow CIBT to monetize its interest in the real estate division.
Highlights Kerr Mines Inc. (“company”, “Kerr”) is conducting its next phase of a resource...
Highlights Cora Gold Limited (“company”, “Cora”) holds gold exploration and development projects...
Pilot tests conducted to date by American Manganese Inc. have been promising. The pilot plant has a capacity to accept lithium-ion battery cathode scrap materials at a rate of 292 kg/day.
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
Highlights Delta 9 Cannabis (“D9”) recorded $13.13M in revenue in Q3, up 97% YoY, and $37.90M in...
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
Highlights Trillion Energy holds two oil and gas producing assets in Turkey, and two...
Read More
Highlights We were pleased with the results of a Preliminary Economic Assessment (“PEA”) announced...
Read More
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%.
Read More
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.
Read More
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%.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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