Survey of Junior Resource Companies Under Coverage Strong Focus on Exploration and M&A in 2021
Join Our ‘Casino Royale Party’ Next Week and Meet Your Favorite CEOs
Global equity markets were up 1.2% last week (down 3.0% in the prior week). The S&P 500 was down seven weeks in a row, and the US$ was up 5.4% in the past seven weeks amid rising yields. Valuations of gold producers were down 4% last week (down 4% in the prior...
Altaley Mining Corporation (TSXV: ATLY / OTC: ATLYF / FSE: TSGA) – Commenced Pre-Production at Second Mine – Resuming Coverage
Highlights In 2021, this company’s Campo Morado mine in Guerrero, Mexico, generated $98M in revenue, up 122% YoY. Production increased 52% YoY, driving cash costs down 41% YoY to US$0.60/lb (Zn). The project can operate for another 20 years, based on existing...
Atrium Mortgage Investment Corporation (TSX: AI) – Record Advancements in Q1/Higher Rates to More Than Offset Potential for Slower Originations
Highlights Q1 EPS (adjusted for loan loss provisions/recoveries) was relatively flat YoY, but 3% below our forecast due to lower than expected lending rates. Mortgage advancements were up 55% YoY, and in line with our...
Churchill Resources Inc. (TSXV: CRI) Early-Stage High Grade Nickel Projects for EV Batteries – Initiating Coverage
Highlights This company owns three nickel projects and two diamond projects in Canada, including two high-grade class 1 nickel projects: the Taylor Brook nickel-copper-cobalt- PGE project in Newfoundland, and the Florence Lake nickel-copper-cobalt-PGE project in...
Timbercreek Financial Corp. (TSX: TF) – Rising Rates and Robust Multi-Family Outlook Offering Strong Prospects
Highlights In Q1, mortgage advancements were up 44% YoY, and significantly higher than our expectations. Due to lower lending rates, distributable income was down 1%, but beat our forecast by 1% due to robust lending. We...
Lumina Gold Corp. (TSXV: LUM / OTCQX: LMGDF) – Expanding & De-Risking a Strong M&A Target
Highlights An infill and step-out drill program (totaling 30,000 m) designed to convert and expand Cangrejos’ (Ecuador) resource is underway. With 10.4 Moz of gold, and 1.4 Blbs of copper in the indicated category, and 6.7 Moz of gold and 0.8 Blbs of copper in the...
Sekur Private Data Ltd.(formerly GlobeX Data Ltd.) (CSE: SKUR / OTCQX: SWISF / FRA: GDT0) – Starting to Gain Traction
Highlights Q4-2021 revenue was $81k, up 77% QoQ, beating our estimate by 32% due to stronger than expected growth in subscribers. Subscriber-count has increased from 2,550 at the end of 2021, to 3,500 currently. According...
Keep Your War Chest Ready for Buying the Dip
Global equity markets were down 3.0% last week (up 0.7% in the prior week) after the Fed raised its benchmark rate by 0.5% - the highest hike in 20+ years. The S&P 500 was down six weeks in a row, and the US$ was up 5% in the past six weeks amid rising yields....
Weekly Mining Commentary
Weekly Mining Commentary Global equity markets were down 3.0% last week (up 0.7% in the prior week) after the Fed raised its benchmark rate by 0.5% - the highest hike in 20+ years. The S&P 500 was down six weeks in a row, and the US$ was up 5% in the past six...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Source: FRC Last week, U.S. cannabis stocks outperformed their Canadian peers (-4% vs -12%). Key sector developments below (positive): ➢In Illinois, sales of recreational cannabis increased 0.6% MoM to...
Senior Gold Producers (NYSE: NEM and GOLD / TSX: NGT and ABX) Near-Term Weakness Offering Attractive Entry Points
Highlights Both Newmont and Barrick had a soft Q1 due to lower production, and higher cash costs amid inflationary pressures. While Barrick’s results fell below our estimates, Newmont’s results were in line. Both miners...
Senior Gold Producers (NYSE: NEM and GOLD / TSX: NGT and ABX) Near-Term Weakness Offering Attractive Entry Points
Highlights Both Newmont and Barrick had a soft Q1 due to lower production, and higher cash costs amid inflationary pressures. While Barrick’s results fell below our estimates, Newmont’s results were in line. Both miners...
BIGG Digital Assets Inc. (CSE: BIGG/ OTCQX: BBKCF/ WKN: A2PS9W) – Rising M&A to Revive Interest in Crypto Platforms
Highlights In Q4, BIGG reported $3.27M in revenue, up 25% QoQ, but 17% below our estimate as trading volumes were lower than expected. For comparison, Coinbase (NASDAQ: COIN) – operator of the largest crypto exchange in the U.S. – had experienced 91% QoQ revenue...
Oculus VisionTech Inc. (TSXV: OVT / OTCQB: OVTZ) – Expecting Its First Client in the Coming Months
Highlights Oculus’ data privacy solution, Forget Me Yes® (FMY), is now available on the AWS Marketplace (Amazon Web Services/NASDAQ: AMZN), and the Salesforce AppExchange (NYSE: CRM). These platforms market third-party software/solutions to their combined 1M+...
TAAT Global Alternatives Inc. (CSE: TAAT / OTCQX: TOBAF / FRA: 2TP)- Rebuilding After a Setback – FINAL REPORT
Highlights In Q4-2021 (ended October 2021), the company recalled outdated versions of its products, and started replacing with updated versions. As a result, revenue declined from $1.31M in Q3, to $0.40M in Q4, and $0.47M in Q1-2022 (ended January 2022). Q1 revenue...
Silver Dollar Resources Inc. (CSE: SLV / OTCQX: SLVDF/FRA: FYW) – Sprott and First Majestic Backed Junior Delineating a Large Resource – Initiating Coverage
Highlights Silver Dollar’s flagship La Joya silver project in Durango, Mexico is located in an area wellknown for historic and operating silver mines. Eric Sprott and First Majestic Silver (TSX: FR/MCAP: $3.4B) own 31% of...
Expecting Strong Results from This Cannabis Retailer
Global equity markets inched up 0.7% last week (down 3.4% in the prior week). The S&P 500 was down five weeks in a row, and the US$ was up 5% in the past month due to rising yields. Valuations of gold producers were down 2% last week (down 8% in the prior...
Apple Inc. (NASDAQ: AAPL) – 12% Upside Potential Despite Pessimistic Management Guidance
Highlights In Q2-2022 (quarter ended March 2022), revenue grew 9% YoY, and net income grew 6% YoY, exactly in line with our estimates. Raised quarterly dividends by 5% to $0.23 per share (0.6% yield). Double-digit YoY revenue growth recorded by services (17%), Mac...
Builders Capital Mortgage Corp. (TSXV: BCF)- Rising Rates to Drive EPS Growth
Highlights 2021 EPS was up 10% YoY, beating our estimate by 2% due to higher than expected origination. Loan advancements rose 34% in 2021; mortgages (net) outstanding increased 17% to $28M by the end of 2021. Exposure to...
Microsoft Corp. (NASDAQ: MSFT) – Upbeat Management Guidance Not Enough to Revise Our HOLD Rating
Highlights Q3 (quarter ended March) revenue was up 18% YoY, and 0.9% higher than our estimate due to stronger than expected revenue from cloud services. EPS was up 8% YoY, and 2% higher than our estimate. MSFT was up 7% today as Q3 beat consensus estimates as well....
Steppe Gold Limited (TSX: STGO / OTCQX: STPGF / FSE: 2J9) – Sitting on $150M+ of Inventory Ready for Processing
Highlights This company recommenced production at its ATO gold mine (Mongolia) last month. The company was essentially in standby mode for the past 12 months as it was unable to secure reagents/chemicals for processing, amid pandemic-induced border closures with...
Major Lithium Players Are Eyeing These Two Juniors
Global equity markets were down 3.4% last week (down 0.4% in the prior week) due to rising yields, concerns of a global economic slowdown, and COVID-19 cases/deaths in China. Markets were down the prior two weeks as well. We were not surprised with this decline...
Tesla Inc. (NASDAQ: TSLA) – Bearish Outlook Amid Unjustified Valuation and Rising Competition
Highlights Tesla recently reported Q1 earnings beating consensus revenue and EPS forecasts by 5% and 42%, respectively. Tesla’s shares are up 40% YoY, and 1,843% in the past three years. Tesla recently reported Q1 earnings...
Braveheart Resources Inc. (TSXV: BHT / OTCQB: RIINF) – Trading 55% Below Our Worst-Case Scenario
Highlights An updated Preliminary Economic Assessment (PEA) on the Thierry Mine project (Ontario) confirmed that the initial CAPEX can be lowered by 21%, by mining the upper workings initially, and deferring the construction of a shaft to access the lower workings....
Azure Minerals Limited (ASX: AZS) – Delineating a High-Grade Nickel Resource in Australia
Highlights We believe the project has resource expansion potential as Andover is one of several prospects identified on the project (60% owned by this company). A resource update is expected later this year, upon testing other targets. [MM_Member_Decision...
These Two Crypto Platforms Could Be the Next M&A Targets
Global equity markets were down 0.4% last week (down 2.2% in the prior week) due to rising yields. Last week, the Bank of Canada raised its overnight lending rate by 0.5%. Elevated geopolitical tensions, weaker retail sales and higher unemployment data from China, and...
GoviEx Uranium Inc. (TSXV: GXU / OTCQX: GVXXF) – One of the Most Undervalued Uranium Juniors in Our List
Highlights This company is simultaneously advancing three uranium projects in Niger, Zambia, and Mali. This company is up 104% since we initiated coverage in August 2021. A feasibility study (FS) on its flagship Madaouela...
Hot Chili Limited (ASX/TSXV: HCH / OTCQB: HHLKF) – Strengthens Portfolio Through a Major Resource Upgrade
Highlights Total resources of the Costa Fuego copper-gold project in Chile increased 17% to 8.3 Blbs CuEq (This company’s share). 82% of resources (previously 56%) are in the indicated category, implying higher confidence. We believe the significant increase in...
Sprott Funds an Under-the-Radar Potential Supplier of Graphite for EV Batteries
Global equity markets were down 2.2% last week (up 1.3% in the prior week) due to rising yields, amid expectations of higher rates and an inflation-induced recession. The Bank of Canada is expected to raise the overnight lending rate by 0.5% this week. Valuations of...
Kidoz Inc. – (TSXV: KIDZ / OTC: KDOZF) – Benefitting From Rising Smartphone Adoption and Digital Ad Spending
Highlights This company reported record revenue in 2021, up 75% YoY to $12.5M, beating our estimate by 9%. Revenue growth came from increased ads, monetized impressions, and enhanced product offerings. In Q4, monetized impressions rose 88% QoQ, and ads increased 97%...
Kontrol Technologies Corp. (NEO: KNR / OTCQB: KNRLF / FSE: 1K8) – Ramping Operations Amid Easing Restrictions
Highlights 2021 was the first profitable year for this company. Gross profit increased 162% YoY, beating our estimate by 6%. EBITDA (excluding government subsidies) increased 123% YoY, beating our estimate by 21%. Growth primarily came from the Global HVAC &...
GCM Mining Corp. (formerly Gran Colombia Gold) (TSX: GCM / OTCQX: TPRFF) – Higher Yield and Growth Potential Than Seniors
Highlights 2021 results were in line with expectations. Production was up 5% to 206 Koz (1.6% higher than our forecast) due to higher throughput, partially offset by lower grades. Revenue was 0.5% higher than our estimate, and EBITDA was 2.3% higher....
CoinSmart Financial Inc. (NEO: SMRT / FRA: IRR) – Coinbase’s Latest Acquisition Confirms Sector Consolidation
Highlights Q4 revenue was up 86% QoQ, amid higher crypto trading volume, and in line with the preliminary results announced by management in January. For comparison, Coinbase (NASDAQ: COIN) – operator of the largest crypto exchange in the U.S. - experienced 91% QoQ...
Impending Cold War to Benefit Commodities and Hurt Equities
Global equity markets were up 1.3% last week (up 0.8% in the prior week) despite elevated geopolitical tensions, indications that the EU and the U.S. are preparing for more sanctions on Russia, higher oil prices, and extended lockdowns in China. ...
Golden Minerals Company (NYSE / TSX: AUMN) – Time for Junior Miners to Join the Rally
Highlights 2021 revenue and EPS beat our estimates by 4% and 9%, respectively, primarily due to higher than expected grades. An updated resource estimate at Rodeo indicated that primary production could last until Q3-2023,...
OMID Holdings Inc. (OTC PINK: OMID) – U.S. House to Vote on Legalization This Week: FINAL REPORT
Highlights The U.S. House of Representatives announced plans to vote on the MORE Act this week; this legislation would legalize marijuana on a federal level in the U.S. Although the House had passed this legislation last year, only to be denied in the Senate, we...
Clean Seed Capital Group Ltd. (TSXV: CSX / OTCMKTS: CLGPF) – Supply Disruptions to Boost Demand for AgTech
Highlights Russia’s invasion of Ukraine resulted in a surge in prices of crops and fertilizers due to supply chain disruptions. Russia accounts for 15%-20% of global fertilizer supply. Russia and Ukraine supply 30% of the world’s wheat. Fertilizer and crop prices were...
Graphano Energy Ltd. (TSXV: GEL / OTCQB: GELEF / FSE: 97G0) – Adjacent to The Only Graphite Producer in North America – Initiating Coverage
Highlights This company is advancing its 100% owned Lac Aux Bouleaux (LAB) graphite project in Quebec. The property is located adjacent to the Lac des Iles graphite mine - the only graphite producer in North America. The...
Move by Ontario’s Cannabis Regulator to Benefit This Retailer
Global equity markets were up 0.8% last week (up 3.4% in the prior week) as Russia and Ukraine are preparing for peace talks this week. In the U.S., yield curves inverted briefly this morning (for the first time since 2006), implying that the market is...
Canada Computational Unlimited Corp. (TSXV: SATO, OTCPK: CCPUF) – Can Be Profitable Even If Bitcoin Prices Drop 50% – Initiating Coverage
Highlights This company was founded in 2017, and went public in September 2021. It is a renewable energy crypto miner focused on Bitcoin and Ethereum. 2021 revenue was up 229% YoY to $6M, from mining 71 Bitcoins and 55 Ethers. Since inception, this company has mined...