Newsletter 24 /2018
This newsletter contains news on the following topics:
Share of the week: White Gold + Cardinal Resources + Caledonia Mining + Laramide Resources + Nevada Exploration + Outlook for 2019: Royalty Companies and Uranium as Special Investment Opportunities in the Commodities Sector + Osisko Gold Royalties + Uranium Energy + RavenQuest BioMed + Endeavour Silver + Polar X + RNC Minerals + iMetals Resources + Panoro Minerals + Tirupati Graphite + Neo Lithium + Wood Mackenzie + AIS Resources + Energy Fuels + Azarga Uranium + Reward Minerals + Sibanye-Stillwater + Strongbow Exploration + Transition Metals + Rock Tech Lithium + EnWave
We wish you a Merry Christmas and a Happy new Year 2019! Thanks a lot for your comtinued interest in our information, Videos and our presented companies!
May the metal force be with us 2019...
At the recent commodity fairs in Zurich (Precious Metals Summit Zurich), Munich (International Precious Metals & Commodities Fair) and Mines & Money London, interviews were conducted with some extremely interesting business partners. Some of these interviews can be found in this issue.
Cardinal Resources: New Targets Hit 25km Away From Namdini
Caledonia Mining: Update On Zimbabwe & Development Of New Shaft
Laramide Resources: Working Towards ISR Uranium Production In US
Nevada Exploration: Searching For District Scale Gold Deposits In Nevada By Analyzing Groundwater
Share of the week: White Gold
White Gold hits up to 304g/t gold!
White Gold recently announced the discovery of additional high-grade gold mineralization outside the previously drilled area on the Vertigo target on the JP Ross property, Yukon, Canada, which extends up to 300 metres in multiple directions. Additional surface sampling has also identified new zones of high-grade gold mineralization in the areas around the Vertigo target, further extending the footprint of the high-grade mineralized system to 2,200 m x 650 m and other targets along the structural trend now identified with an extension of 18 km on the JP Ross property. Vertigo encountered up to 304g/t gold and over 1,000g/t silver in surface samples.
These results significantly increase the size and scope of the Company's recent discovery on the JP Ross property discovered through its systematic and data-driven regional exploration program with the assistance of partners Agnico Eagle Mines Limited and Kinross Gold Corp.
News: White Gold Corp. Discovers New High-Grade Parallel Structure 300m from Previous Drilling on Vertigo Target Intersecting 9.2 g/t Au over 9.14m, including 17.2 g/t Au over 4.6m and also Encounters Multiple High-Grade Surface Results up to 304 g/t Au
Interview: Q&A White Gold: New High-Grade Parallel Structure 300m From Previous Drilling On Vertigo Target
For gold fans 2018 was rather mixed and not the best year. However, for 2019 experts see some factors that could provide for an upswing in the gold price. This will be due to the end of the FED interest rate hike cycle and the associated depreciation of the US dollar. Because when the US$ is weak, the price of gold usually rises. In any case, investors are looking forward to the end of the FED interest rate hikes. The last time this happened, between 2004 and 2006, the gold price went up almost eight months before the last rate hike. Should this development repeat itself, we should be able to observe a rising gold price at the beginning of 2019.
In 2018, gold prices plummeted in the second quarter and a price recovery then set in in the autumn. The main reason for this was the strong US$. US equity markets also rose sharply until September, making gold less attractive. As the stock markets went down in October, gold was rediscovered, as could be seen from the rising price.
Geopolitical uncertainties and crises will continue to accompany us, see Brexit or the Italian debt crisis. All this should help the price of gold to rise. Analysts at Commerzbank expect the price of this precious metal to rise around mid-2019. By the end of 2019 they forecast US$ 1,350 per troy ounce of gold.
Demand from China and India is important for the future development of the gold price. Together they account for more than half of the world's demand for physical gold. The end of the FED interest rate hikes should also have an effect here. A weaker US$ should lead to rising demand for gold in Asia.
At the beginning of the new year, one could therefore think about investment opportunities that no one really has on their screens at the moment. An interesting possibility would be to invest in a royalty company. Royalty companies act as donors and receive shares in current and future production, such as gold and silver, at a fixed price. Companies that do not yet produce can become a particularly lucrative profit for the royalty companies. An example of a profitable royalty company is Osisko Gold Royalties. Investments in commodity companies, more than 130 licence fees, streams and precious metal purchases ensure the progress of Osisko Gold Royalties. And investors will receive the 17th consecutive quarterly dividend in January. Cash provided by operating activities of $20.6 million was generated in the third quarter of 2018, 177 percent more than in the comparable quarter of the prior year.
Another interesting investment opportunity is offered by the uranium sector. This can be seen in the purchases of investment funds. The reason for this is the impressive recovery of the raw material. The spot price of uranium has risen by 41 percent since April and is close to a two-year high. After the Fukushima disaster, nuclear power fell out of favour, but now global nuclear power production has recovered to its pre-Fukushima level. Supply and demand are almost balanced again.
Experts expect global demand to increase by a whopping 44 percent by 2035. In China, 19 nuclear reactors are being built and 41 are planned. India is building six new reactors and plans to build a further 15, with plans from Egypt, Jordan, Turkey and the United Arab Emirates to also rely on nuclear energy in the future. So, uranium is increasingly needed.
Uranium Energy also relies on this. Advanced and partly already approved projects (Texas, Paraguay, Colorado, Wyoming, New Mexico) and a processing plant in Texas are the company's big plus.
By the way, Sprott CEO Rick Rule also focuses on these two sectors, as he revealed in an interview at Mines & Money London at the end of November 2018.
Interview with Rick Rule: Rick Rule: Deploying Capital To M&A Targets, Royalty Companies & Promising Exploration Projects
RavenQuest BioMed Announces First Major Supply Agreement for Cannabis
RavenQuest BioMed recently announced that it has entered into a supply agreement with Wayland Group, under which Wayland will purchase up to 8,000 kg of dried flower cannabis from RavenQuest in 2019. The total quantity will be shipped periodically during 2019, when the product is available. Under the supply agreement, Wayland will immediately make a one-time payment of US$2 million to RavenQuest in anticipation of the first major shipment of cannabis flowers in March 2019. The prices for the transaction are comparable to current wholesale prices for cannabis.
Endeavour Silver receives up to 3,233g/t Silver Equivalent Plus Lead and Zinc
Endeavour Silver recently reported near-surface drilling results from its Parral project. The company encountered 4.2 m with an average of 950g/t silver equivalent, 3.0% lead and 5.9% zinc. It also included a 20 cm long intercept with an average of 3,233g/t silver equivalent, 7.94% lead and 13.50% zinc. Sampling directly from existing mine tunnels also revealed up to 614.6g/t silver, 1.81% lead and 0.73% zinc. In 2019, the Company intends to present an updated resource estimate and perform an initial economic valuation. In addition, the approval procedure for a mine will be initiated.
News: Endeavour Silver Reports Positive Surface Drilling and Underground Sampling Results for the Parral Project, Chihuahua, Mexico
PolarX: Exploring Copper & Gold Porphyry In Alaska
RNC Minerals: Selling Huge Gold Nuggets & Expanding Resource At Beta Hunt Project In Australia
iMetals Resources: Early Stage Exploration In Ontario, Canada
Panoro Minerals makes significant progress in Cotabambas development
Panoro Minerals has recently provided an overview of the progress of exploration and plans for the flagship Cotabambas copper/gold/silver project. Accordingly, the Company has completed field work for the ground geophysical program at the Chaupec Target in Cluster 2 of the Cotabambas Project. In addition, the Company has identified two new targets for skarn/porphyry mineralization in Zone 4 and Tamburo, north and east of the Chaupec target.
News: Panoro Minerals Advances Exploration at Cotabambas Project, Peru
Interview: Panoro Minerals: Increasing Value Of Multiple Copper Projects In Peru
Tirupati Graphite: Private Company Producing 27k Tonnes Of Graphite In Madagascar In 2019
Neo Lithium: Developing Huge High Grade Lithium Deposit In Argentina
Wood Mackenzie: Iron Ore Demand Rising & Effects Of US Tariffs
Uranium Energy with target price 3.50 US$!
H.C.Wainwright recently published a research report on Uranium Energy. The analysts set a fair market value of US$ 3.50 as the target.
Research Report: H.C. Wainwright's Buy Recommendation for Uranium Energy - Price Index 3.50 USD
AIS Resources: Investing In Lithium Exploration Project In Argentina
Energy Fuels & Azarga Uranium - Two Uranium Companies Working In The US
Reward Minerals: Developing Huge Premium SOP Potash Deposit In Australia
Sibanye-Stillwater achieves breakthrough in wage negotiations
Sibanye-Stillwater announced a few days ago that it had extended the collective agreement concluded on 14 November 2018 with the National Union of Mineworkers ('NUM'), UASA and Solidarity to all employees of its South African gold operations within the meaning of Section 23(1)(d) of the Labour Relations Act, No 66 of 1995 ('S23(1)(d)'). During the strike declared by the Association of Mineworkers and Construction Union ("AMCU") on 21 November 2018, collective membership in NUM, UASA and Solidarity has increased to over 50% of staff in South African gold operations. Under these circumstances, the Employment Relations Act provides that the collective agreement is extended to all other employees and that they are bound by the collective agreement. In this case, all employees who are members of the AMCU and those who do not belong to a trade union are bound by the collective agreement.
As a result of the extension of the collective agreement, the strike of the AMCU is no longer protected and all employees are obliged to resume work.
News: Sibanye-Stillwater extends the gold wage agreement to all employees in terms of Section 23(1)(d) of the Labour Relations Act
EnWave announces break-even and new machine order
EnWave has recently published the company's consolidated results for the fourth quarter and 30 September 2018. Accordingly, the Company increased net sales by 103% to $7.355 million in the fourth quarter of 2018 compared to the same quarter in the prior year. Annual sales increased 43% to $22.825 million. In addition, net income for the fourth quarter of 2018 was US$ 75,000.
EnWave has thus made a leap into the profit zone, which is to be further expanded in the future in view of a wealth of existing technology and development agreements and the associated potential new orders.
The company also recently announced that it has signed an equipment purchase agreement (the "EPA") with Milne Fruit Products d.b.a. Milne MicroDried Inc. to equip Milne with its third 120 kW radiant energy vacuum machine ("REV™") for the production of an extensive portfolio of dried vegetable and fruit applications. The EPA also confirms Milne's exclusive right to produce REV™ dried strawberries and blueberries in the United States of America. In addition, EnWave and Milne have amended the existing commercial license agreement to include prickly pear and table grapes in their MicroDried® product portfolio.
News 1: EnWave Announces Fourth Quarter and 2018 Annual Consolidated Financial Results
News 2: EnWave Receives Purchase Order for Third 120kW REVTM Machine from Milne Fruit Products
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following companies mentioned in this issue: White Gold + Cardinal Resources + Caledonia Mining + Laramide Resources + Nevada Exploration + Osisko Gold Royalties + Uranium Energy + RavenQuest BioMed + Endeavour Silver + Polar X + RNC Minerals + iMetals Resources + Panoro Minerals + Tirupati Graphite + Neo Lithium + Wood Mackenzie + AIS Resources + Energy Fuels + Azarga Uranium + Reward Minerals + Sibanye-Stillwater + Strongbow Exploration + Transition Metals + Rock Tech Lithium + EnWave.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: White Gold + Caledonia Mining + Osisko Gold Royalties + Uranium Energy + RavenQuest BioMed + Endeavour Silver + Panoro Minerals + Sibanye-Stillwater + EnWave.
This publication is based on Swiss Resource Capital AG's detailed risk warnings, limitations of liability and disclaimers, which can be viewed here: Disclosure and Disclaimer