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.
We will be resuming coverage on NWGI shortly. Since our previous report in September 2019, the company has made significant progress on a number of fronts. In December 2019, its shares were uplisted from the OTC to NASDAQ, while completing a 8:1 share consolidation.
Since our introductory note in July 2020, Noram Ventures Inc.’s share price is up 20%. Noram is advancing its 100% owned Zeus lithium property in Nevada. It is located just 2 km from Albemarle Corporation’s (NYSE: ALB) Silver Peak mine – the only lithium brine producer in the U.S.
Laurion Minerals completed an induced polarization geophysical survey, followed by a 21-hole drill program (totaling 4,975 m) on its Ishkoday property in Ontario, located 220 km northeast of Thunder Bay.
Loncor Resources holds one of the largest gold exploration land packages in the Democratic Republic of the Congo.
Highlights Delta 9 Cannabis Inc. (“D9”, the “company”) is a vertically integrated cannabis company...
An updated Preliminary Economic Assessment (“PEA”) on FPX Nickel Corp.’s (“company”, “FPX”) Baptiste nickel deposit showed strong improvements over a previous PEA completed in 2013, and exceeded our valuation estimate.
Indiva Limited (“Indiva”, the “company”) reported Q2-2020 financials, with revenue increasing 1,375% year-over-year, and 27% quarter- over-quarter. In addition to the significant revenue brought on by Bhang, new product additions contributed to the increase.
Based on the live test results announced yesterday (mentioned in our note), KNR announced today...
Diginex Ltd. went public in early 2019 on the NASDAQ Capital Market (“NASDAQ”) through a $50 million initial public offering (“IPO”). JFK is a special purpose acquisition company (“SPAC”), alternatively known as a blank check company.
Kontrol announced today that live COVID-19 virus tests on its BioCloud returned positive results. Test results to date have also indicated that BioCloud can be used to detect and measure many different viruses (in addition to the COVID-19 virus), bacteria, and fungi. We believe this offers BioCloud the capability to offer consumers a long-time solution.
Highlights Kontrol Energy Corp.’s (“Kontrol”, the “company”) latest round of lab tests produced...
Exro Technologies Inc. is an early-stage technology company with a patented technology that allows electric motors to operate with two different torque profiles, resulting in higher energy efficiency.
Through private placements and sale of non-core assets, MQR has significantly strengthened its balance sheet since our last update in March 2020. A $10 million bought deal financing is expected to close this month, which will bring MQR’s cash + investment position to $37 million.
Kalon Acquisition Corp. is a Capital Pool Corporation (“CPC”) that went public through an IPO in June 2020.
Highlights After more than a ~50% (both y/y and q/q) slump in combined earnings of the top six...
In July 2020, CGC completed a Pre-Feasibility Study (“PFS”) on its Marmato project (Colombia), which demonstrated that the mine can be expanded to a 165+ Koz per year operation, from the current 24 Koz run rate.
Q2-2020 EBITDA was up 9% YoY to $35.6 million due to stronger gold prices, offset by a 17% YoY decline in gold production to 48 Koz.
In Q2-2020, Inner Spirit Holdings Ltd. generated system-wide retail sales (“SRS”) of $20.5 million – a YoY increase of 343% and a QoQ increase of 19%. SRS reflects the total sales across both Spiritleaf franchised and corporate stores.
Timbercreek Financial’s Q2-2020 results beat our expectations as rent collections were higher than our estimates. In July, TF collected 98.4% of the month’s mortgage interest, in line with historical rates.
Galane Gold Ltd. operates two underground gold mines in Africa – the Mupane mine in Botswana, and the Galaxy mine in South Africa.
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
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.
Read More
Highlights In October 2020, Global Energy Metals (“company”, GEMC”) closed on a letter-of-intent...
Read More
Highlights All three of the world’s largest gold producers, Barrick, Newmont and AngloGold,...
Read More
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.
Read More
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
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
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.
Read More
Highlights E3 Metals Corp. (“company” and “E3”) is focused on applying its proprietary Direct...
Read More
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.
Read More
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
Read More
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.
Read More
Highlights Kerr Mines Inc. (“company”, “Kerr”) is conducting its next phase of a resource...
Read More
Highlights Cora Gold Limited (“company”, “Cora”) holds gold exploration and development projects...
Read More
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.
Read More
We will be resuming coverage on NWGI shortly. Since our previous report in September 2019, the company has made significant progress on a number of fronts. In December 2019, its shares were uplisted from the OTC to NASDAQ, while completing a 8:1 share consolidation.
Read More
Since our introductory note in July 2020, Noram Ventures Inc.’s share price is up 20%. Noram is advancing its 100% owned Zeus lithium property in Nevada. It is located just 2 km from Albemarle Corporation’s (NYSE: ALB) Silver Peak mine – the only lithium brine producer in the U.S.
Read More
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