Survey of Junior Resource Companies Under Coverage Strong Focus on Exploration and M&A in 2021
Blue Sky Uranium Corp. (TSXV: BSK / OTCQB: BKUCF) – A Solution to Argentina’s Rising Demand for Uranium – Initiating Coverage
Highlights Blue Sky holds a portfolio of four uranium assets in Argentina. There is a need for domestic uranium producers as Argentina imports 100% of its uranium consumption. Argentina has three operating nuclear reactors (plus one in construction, and two additional...
TAAT Global Alternatives Inc. (CSE: TAAT / OTCQX: TOBAF / FRA: 2TP) – Q3 Revenue Blows Past Expectations/Expecting New Records in Q4
Highlights TAAT generated $1.3M in revenue in Q3-FY2021 (quarter ended July 2021), up 89% QoQ, beating our estimate by 44%. We are raising our revenue forecasts for FY2021 and FY2022. Revenue growth came from increased...
Sabre Gold Mines Corp. (TSX: SGLD / OTCQB: SGLDF) – Acquires an Advanced Stage Gold Junior at a 70% Discount
Highlights Sabre acquired TSXV listed Golden Predator (GPY) for just $25M, net of GPY’s working capital of $3.3M. We estimate that the deal was valued at just $17/oz vs the sector average of $57/oz (100% of M&I + 50% of inferred), implying a 70% discount....
This Copper Junior is Getting No Value for Its Advanced Stage Flagship Asset
Our pick last week, Farmmi Inc. (NASDAQ: FAMI), went from US$0.36 on Monday, to a high of US$0.42 on Friday (up 16.7%). Companies in our Top Picks list were up 41.6% on average since we initiated coverage vs 0.8% for the benchmark (TSXV). The IMF has lowered its 2021...
Geomega Resources Inc. (TSXV: GMA / OTC: GOMRF) – Building the First Rare Earths Recycling Plant Outside Asia – Initiating Coverage
Highlights Geomega has developed a potentially eco-friendly and cost-effective process to recycle Rare Earth Elements (REE), and other valuable materials from end-of-life magnets, scraps, and other feeds. The company is...
Yorkton Equity Group Inc. (TSXV: YEG) – Completes Previously Announced Acquisitions
Highlights Since our initiating report in June 2021, YEG closed the previously announced acquisitions of Larson Place (Kelowna), and Langford Apartments (Victoria), and entered into an agreement to divest its 25% interest in the Yorkton 108 development in Surrey....
Kiaro Holdings Corp. (TSXV: KO) – Record Revenue in Q2 / Expecting New Records in Q3
Highlights Q2-2022 (quarter ended July 2021) performance was commendable, and inline with expectations. Retail sales continued to strengthen amid Kiaro’s focus on providing a superior customer experience. Same store sales...
Black Mountain Gold USA Corp. (TSXV: BMG / OTCQB: BMGCF) Management Just Sold a Company for $377 Million; This is Their Next Focus – Initiating Coverage
Highlights BMG is run by the same team that runs Millennial Lithium Corp.(TSXV: ML), which is being acquired by CATL (SZSE: 300750) for $377M. Management and board own 35% of BMG’s shares. BMG is advancing its Mohave gold...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Last week, both Canadian and U.S. cannabis stocks fell as a result of the overall weakness in equity markets. Key developments in the sector include: In September, Illinois’ recreational cannabis sales increased...
Weekly Mining Commentary
Author: Sid Rajeev, Head Of Research Weekly Mining Commentary Global equity markets were down 2.5% last week. We have been anticipating a correction for some time, and had even discussed a catalyst in our report last week, titled “Weak Manufacturing Data and Slow...
Equity Markets and Base Metals Retreat on Slower Economic Recovery
Last week’s top five performers among our Top Picks include one cannabis, three junior resource companies, and one technology company. The top performer, Chalice Brands (CSE: CHAL), was up 16.9%. Chalice recently announced an acquisition to expand its retail...
Los Andes Copper Ltd. (TSXV: LA) – Expecting a Strong PFS
Highlights Los Andes is aiming to complete a Pre-Feasibility Study (PFS) on the Vizcachitas project (Chile) in Q1-2022. Changes to processing, infrastructure, and tailings management are expected to improve the project’s...
Vista Gold Corp.(NYSE/TSX: VGZ) – Upcoming DFS Likely to Be a Trigger for M&A
Highlights Vista is planning to complete a Definitive Feasibility Study (DFS) on its 100% owned Mt Todd project in early Q1-2022. Mt Todd has the largest undeveloped gold project, and is expected to be the fourth largest gold mine in Australia. [MM_Member_Decision...
Romspen Mortgage Investment Fund – Expecting Stronger Yields in 2021 and 2022
Highlights Mortgages advanced increased 94% YoY, and repayments increased 746% YoY, in H1- 2021. As a result, mortgages and investments under management declined 13% YTD to $2.7B. Repayments were unusually high this year as several loans were extended last year due to...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Last week, U.S. cannabis stocks outperformed their Canadian peers, amid several positive developments. Mississippi lawmakers have reached an agreement to propose a bill to legalize medical marijuana. The U.S....
Weekly Mining Commentary
Author: Sid Rajeev, Head Of Research Weekly Mining Commentary Global equity indices were up 1.6% last week as North American and European markets shrugged off fears of a potential spillover of the debt crunch faced by China Evergrande Group (SEHK: 3333). Copper prices...
Weak Manufacturing Data and Slow Vaccination Rates to Delay Economic Recovery
Our pick last week, Lucid Group Inc. (NASDAQ: LCID), went from US$24.07 on Monday, to a high of US$28.21 on Wednesday (up 17%). The top performer, Southern Silver Exploration (TSXV: SSV), was up 10.3%, as it increased its ownership in the Cerro Las Minitas...
Sonoro Gold Corp. (TSXV: SGO/ OTCQB: SMOFF) – PEA Confirms Near-Term Production Potential
Highlights Sonoro released results of a Preliminary Economic Assessment (“PEA”) on its Cerro Caliche gold project in Sonoro, Mexico. The study, which was based on a 15,000 tpd open-pit/heap leach operation, returned an AT-NPV5% of US$41.5M, and an AT-IRR of 32.4%,...
Noram Lithium Corp. (TSXV: NRM / OTCQB: NRVTF) – Updated Resource Significantly Higher Than Expected / PEA Coming Soon
Highlights An updated resource estimate on Noram’s Zeus lithium project reported 1.78 Mt of Lithium Carbonate Equivalent/LCE (up 60%) in Measured & Indicated (“M&I), and 3.89 Mt in inferred resources (up 369%). The updated resource was 65% higher than our estimate. A...
Chalice Brands Ltd. (CSE: CHAL / OTCQB: CHALF) – Bolsters Retail Footprint in Oregon
Highlights Last week, CHAL announced the acquisition of Cannabliss for $6.5M. Cannabliss has four retail stores operating in Oregon, which generated $8.1M in revenue in 2020. The deal is valued at 0.8x revenue vs the sector average of 2.7x. We found that Cannabliss’...
East Africa Metals Inc. (TSXV: EAM) – Attracts Partners to Fully Fund Its Projects – Resuming Coverage
Highlights East Africa Metals (EAM) has found partners for its projects in Ethiopia and Tanzania. Tibet Huayu Mining (SHSE: 601020) is advancing the Mato Bula and Da Tambuk deposits in Ethiopia to production, with a...
Fortune Minerals Limited (TSX: FT / OTCQB: FTMDF) – A Unique Combo of Cobalt and Gold
Highlights FT is advancing its NICO polymetallic project in the NWT to an updated Feasibility Study (“FS”). The EV (electric vehicle) revolution is driving significant interest into EV metals. NICO (cobalt-gold-bismuth)...
Equity Metals Corporation (TSXV: EQTY / OTCQB: EQMEF)-Bonanza-Grade Silver Intercepts in B.C. – Initiating Coverage
Highlights Equity Metals is advancing its 100% owned Silver Queen high-grade gold and polymetallic project in B.C. Multiple bonanza silver grades were intercepted on one of the targets, including 0.3 m of 56,291 gpt AgEq (gold equivalent), 0.3 m of 14,035 g/t, and...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Last week, U.S. cannabis stocks outperformed their Canadian peers. Aside from a warning issued by the FDA and CDC, the cannabis sector in the U.S. had favorable developments: Michigan’s recreational cannabis...
Weekly Mining Commentary
Author: Sid Rajeev, Head Of Research Weekly Mining Commentary Global equity indices pulled back today amid concerns over a potential spillover of the debt crunch faced by China Evergrande Group (SEHK: 3333). Results of Canada’s federal elections are expected this...
Election Day! Banks, Energy, and the C$ Will Likely Be the Biggest Movers Tomorrow
Our pick last week, Alset EHome International (NASDAQ: AEI), went from US$2.84 on Monday, to a high of US$3.42 on Thursday (up 20.4%). Global equity indices pulled back today amid concerns over a potential spillover of the debt crunch faced by China Evergrande...
AWM Diversified Mortgage Investment Corporation – Diversified High-Yield Strategy – Initiating Coverage
Highlights AWM Diversified is a Mortgage Investment Corporation (“MIC”) focused on offering short-term residential mortgages to homeowners. Despite the pandemic, mortgages outstanding increased 35% YoY to $146M by the end...
KWESST Micro Systems Inc. (TSXV: KWE / OTCQB: KWEMF) – Launching a New Non-Lethal Firing System – Initiating Coverage
Highlights KWESST develops and markets proprietary technologies for applications in personal protection, law enforcement, and the military. In April 2021, the company acquired the Low Energy Cartridge (LEC) technology...
Latin Metals Inc. (TSXV: LMS / OTCQB: LMSQF) – LOI With AngloGold Ashanti
Highlights On September 2, 2021, LMS announced a non-binding LOI with AngloGold Ashanti (NYSE: AU) for three properties in Salta, Argentina. AU can acquire a 75% interest for US$2.55M in cash, and US$10M in exploration...
Monarch Mining Corporation (TSX: GBAR / OTCQX: GBARF) – Fully Funded to Production / Trading at a 23% Discount to Peers
Highlights Monarch is planning to restart production at its Beaufor mine by June 2022, for an estimated CAPEX of $20M, including $8M for the refurbishment of its 750 tpd Beacon mill. Recently raised $31.5M through equity,...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Last week, both Canadian and U.S. cannabis stocks fell despite some positive news for the sector: California approved Bill 45, which would allow CBD to be added to food, beverages, and cosmetic products. In...
Weekly Mining Commentary
Author: Sid Rajeev, Head Of Research Weekly Mining Commentary Global equity indices were relatively flat; down 0.2% last week. Among mainstream metals, copper and zinc gained strength from lower inventory levels. Valuations of both gold and base metals producers were...
Reddit Moves to Uranium / Check Out Names Under Our Coverage
The Horizons Global Uranium Index ETF was up 10% today as Reddit’s WallStreetBets shifted focus to Cameco (NYSE: CCJ). Check out uranium companies under our coverage. Among mainstream metals, copper and zinc gained strength from lower inventory levels. Globally, 42.1%...
Hello Pal International Inc. (CSE: HP / FSE: 27H / OTC: HLLPF) – Chinese Crypto Crackdown Increases Uncertainties, but Presents Selective Speculative Opportunities
Highlights China’s crackdown on crypto has created significant uncertainties, especially for tech companies operating in China. The Hang Seng Tech Index is down 20% in the past three months. HP is down 25%. As the...
Trillion Energy International Inc. (CSE: TCF / Frankfurt: 3P2N / OTC: TCFF)Q2 Revenue Up 56% / Announcing a Financing Shortly
Highlights Q2-2021 revenue was up 56%YoY due to stronger oil/gas prices, and inline with our expectations. Oil and gas prices are expected to remain strong, based on the expected economic recovery. 60% of Turkey’s population have received at least one dose of vaccine....
BIGG Digital Assets Inc. (CSE: BIGG/ OTCQX: BBKCF/ WKN: A2PS9W) – Revenue up 850% YoY in Q2 / Trading Volumes Picking Up
Highlights Q2 revenue increased 850% YoY to $4.5M, and was approximately 5% higher than our expectations. Although adjusted EBITDA and EPS improved YoY, they were below expectations due to higher operating expenses. ...
Weekly Cannabis Commentary
Weekly Cannabis Commentary Cannabis Industry Performance Last week, Canadian cannabis stocks outperformed U.S. cannabis stocks. We believe the recent report published by Hifyre, indicating cannabis retail sales growth of 36% YoY in August, and closing of HEXO’s (TSX:...
Weekly Mining Commentary
Author: Sid Rajeev, Head Of Research Weekly Mining Commentary The Nikkei 225 (Japan) jumped 7.7% last week, on news that its Prime Minister will not be running in the upcoming elections. The S&P 500 was down last week due to weaker than expected jobs data. We note...
Lithium Chile Inc. (TSXV: LITH / OTCQB: LTMCF) – Substantial Portfolio in South America’s Lithium Triangle – Initiating Coverage
Highlights Lithium Chile owns a large portfolio in South America’s Lithium Triangle, including 12 lithium-rich salar properties, totaling 68,000 hectares (“ha”), in Chile, and the recently acquired 23,300-ha salar property in Argentina. [MM_Member_Decision...
Uranium Junior Under Coverage Getting Acquired
Last week’s pick, Alibaba Group (NYSE: BABA), went from US$162.29 on Monday, to a high of US$178.18 on Thursday (up 9.79%). The S&P 500 was down last week due to weaker than expected jobs data. We note that this weakness will likely push the Fed to delay...