Newsletter 01 /2019
Share of the week: EnWave
EnWave succeeds in brilliant entry into the cannabis sector
A few days ago, EnWave was able to publish a real hammer report. EnWave and Tilray Inc, one of the world's largest cannabis producers, have a royalty-bearing commercial sublicense with The Green Organic Dutchman Holdings Ltd. ("TGOD") has been signed. TGOD is a major Canadian producer of medical cannabis and recreational cannabis and a global leader in the cultivation of high-quality organic certified cannabis. The agreement grants TGOD the right to use the company's Radiant Energy Vacuum ("REV™") dehydration technology to dry Bio-Cannabis in Canada. Under the terms of the agreement, TGOD has signed an equipment purchase agreement and ordered a large commercial 60 kW REV™ machine from EnWave to begin commercial production in Canada. The agreement expands the scope of EnWave's REV™ technology within the rapidly growing global market for medical cannabis and recreational cannabis. EnWave's strategy is to commercialise its proprietary REV™ technology in the global cannabis sector through its business model which includes licensing and royalties.
EnWave also recently reported that the Company has entered into a technology evaluation and licensing option agreement (the "TELOA") with Simplot Australia to evaluate the use of the Company's Radiant Energy Vacuum ("REV™") dehydration technology for the development of dehydrated frozen vegetables and other applications. During the term of the TELOA, Simplot will have the exclusive option to license the REV™ technology to manufacture the products they desire.
News 1: EnWave and Tilray Sign a Commercial Royalty-Bearing Sublicense with The Green Organic Dutchman to Dry Cannabis in Canada
News 2: EnWave Signs Technology Evaluation and Licence Option Agreement with Simplot Australia
Newsflash #87: Newsflash #87 With Aurania Resources & Revival Gold
Admittedly, 2018 was not the best year for gold investments. Since the end of 2018, however, gold and silver have been able to regain ground and initiate a possible trend reversal. There are still trouble spots, problems could worsen, just think of the trade dispute between the USA and China, and the central banks are placing great emphasis on the yellow precious metal. A weakening of the US economy is also expected, which in turn would lead to higher demand for gold. Although China and the USA have come a little closer in their trade conflict, the grace period expires in spring 2019, when the cards will be shuffled again and further trouble in the form of penalty duties could threaten. Trade disputes usually entail a decline in risk appetite and an increase in the attractiveness of gold. In addition, there is the budget dispute between the EU and Italy, as well as the Brexit. The central banks' propensity to buy should continue in the current year. By the end of December 2018, China's central bank had increased its gold reserves to almost 60 million ounces, or about 1,853 tons of gold. This means that China's gold reserves have risen for the first time since October 2016, at least according to official figures. At the end of 2018, it was already evident that the price of gold was moving upwards again. Recently, a six-and-a-half month high of almost US$ 1,300 per troy ounce was achieved. Exchange-traded precious metal funds are at a seven-month high. This can be seen as a bullish sign, according to expert Matthew Turner from the Macquarie Group. However, many precious metal stocks have not yet experienced the recent upward trend and are therefore still cheap to buy.
So, it could be particularly worthwhile now to bet on gold and silver as well as on the values of gold and silver companies. First and foremost, producers such as Caledonia Mining, Endeavour Silver, Nordic Gold and Sibanye-Stillwater are eligible for an investment. But also the stocks from the second row, some of which are only a few weeks or months away from the start of production (such as Steppe Gold or MAG Silver) and promising development companies such as Treasury Metals or Aurania Resources should be at the top of the watch list.
Sibanye-Stillwater benefits from strong palladium price
A few days ago, Sibanye-Stillwater published a company update that also covered annual production in 2018. Production from the second tunnel of the Blitz project began in October 2018 and, together with record palladium prices, is expected to lead to a significant increase in revenues from the PGM business in the US. SA's PGM activities benefited from higher prices for PGM price baskets in the second half of 2018, with consistently good operating performance and 4E PGM production for 2018 of approximately 1.17 million ounces, which is above the full year guidance. The industrial action measures in progress since 21 November 2018 relating to gold transactions in SA are continuing. Strike contingency plans were successfully implemented to limit losses during the ongoing strike action with approximately 34,600 kg of gold produced for 2018. Group liquidity remains solid. The maturity profile of the liabilities is cautiously structured, with significant debt repayments not due until mid-2022.
RavenQuest BioMed makes significant progress
Since Christmas 2018, RavenQuest BioMed has been able to report several significant developments with regard to successful business transactions.
RavenQuest announced, among other things, that it has been contracted by the Canadian licensed producer Bonify to provide comprehensive management services, including operational management and supervision of Bonify's 320,000 square foot cannabis production facility in Winnipeg, Manitoba. RavenQuest has long experience as a leading consultant in the Canadian cannabis industry and has been mandated to ensure compliance with Health Canada regulations and to improve and optimize production processes.
RavenQuest also announced that it had secured a 51 % interest in 1 Life Cannabis Corporation of Abbotsford, British Columbia. 1 Life is deeply rooted in the artisanal production of cannabis and is dedicated to the cultivation of premium quality, artisanal cannabis in small batches. 1 Life will adopt the concept of RavenQuest's 24,000 square foot facility, which forms part of the expanded license awarded to RavenQuest by Health Canada.
News 1: Bonify Selects RavenQuest to Provide Management Services
News 2: RavenQuest Acquires Majority Stake in 1 Life Cannabis Corp.
Video: RavenQuest Biomed: Diversified Cannabis Production Company With Unique Growing Technology
Millennial Lithium Reports Major Project Progress
A few days ago, Millennial Lithium gave an overview of all technical programs within the Pastos Grandes project in Salta, Argentina. The Company is currently working on a comprehensive development plan which includes the completion of a final feasibility study, extension drilling for an updated resource estimate, the construction of pilot ponds to provide concentrated lithium-rich brines pumped from the Salar, the development of a pilot and training lithium processing facility to produce 3 tonnes of lithium carbonate equivalent per month, the addition of additional pump test wells and the completion of various technical studies and infrastructure improvements to accelerate the Company's ongoing feasibility study.
An updated resource estimate will be published shortly. The feasibility study will follow in the second quarter of 2019.
News: Millennial Provides Pastos Grandes Project Progress
Auryn Resources encounters significant copper mineralization
Auryn Resources has recently identified a significant zone of oxide copper mineralization over a strike length of 1.2 kilometres and a width of 500 metres. This is located about 12 kilometres south of Sombrero on the Milpoc prospectus. Rock samples have returned copper oxide mineralization grades of 0.1% - 8.45% and silver grades of 0.06 g/t - 101 g/t.
This high-grade copper oxide and silver mineralization at Milpoc represents another opportunity within the Sombrero District to discover an additional intrusive center that could be associated with skarn and porphyry mineralization.
Among other things, this discovery prompted the experts at H.C.Wainwright&Co. to issue a buy recommendation for the Auryn share.
News: Auryn Identifies Significant Copper Mineralization at New Prospect Near Sombrero
Research Report: Buy recommendation for Auryn Resources after additional Copper discoveries at Sombrero for Auryn Resources from H.C. Wainwright
Osisko Gold Royalties reduces debt and number of outstanding shares
Osisko Gold Royalties recently announced that the company has made an initial investment of CA$ 9.8 million in 849,480 shares to repurchase shares under the Normal Course Issuer Bid. The shares were cancelled and cancelled. The average price was CA$ 11.56 per share in December 2018 for the share buybacks. In addition, US$ 43 million of the revolving credit facility has been repaid.
News: Osisko Makes Initial C$9.8 Million Investment Towards C$100 million Share Buyback Program and Reduces Debt by US$43 million
White Gold Strikes New Gold Mineralization
Almost weekly, White Gold can excel with excellent drilling results and/or even new discoveries. This was the case recently when near-surface gold mineralization was encountered at the Betty deposit in the Yukon, Canada. Betty-Ford has inter alia returned 1.08 g/t Au over 50.29 m from 4.57 m depth, including 2.24 g/t Au over 9.41 m from 19.81 m depth, with the upper 25.91 m of the drill hole showing oxidized mineralization and additional shallow mineralization seen in trend in other holes. The gold mineralization was found along the eastern extension of the Coffee Creek fold zone where the adjacent Coffee deposit of Goldcorp Inc. is located. This is currently being developed as an open pit and tailings leach gold mine and commercial production is expected to commence in 2021.
These results represent a new discovery on a previously undrilled target discovered through the Company's systematic and data-driven regional exploration program supported by partners Agnico Eagle Mines Limited and Kinross Gold Corp.
News: White Gold Corp. Makes New Discovery on Betty Property Along the Extension of the Coffee Creek Fault
Video: Newsflash #88 With Bluestone Resources, Copper Mountain & White Gold
Bluestone Resources Discovers Several New Gold Veins
Bluestone Resources recently announced initial results from the ongoing 3,500 m infill drilling program being completed on the high-grade Cerro Blanco Gold project. The main focus of the program is on improving inferred resources identified during the drilling program completed last year and defining new resources along veins in the mine plan that extend outside the current resource envelope. The company discovered several new gold veins containing up to 86.9g/t gold and 227g/t silver.
News: Bluestone Drills 3.0 m of 16.3 g/t Au and Intercepts New Veins at Cerro Blanco as Part of its Infill Drill Program to Convert and Upgrade Resources
Copper Mountain Mining achieves its own production forecast and aims to increase production substantially by 2020
Copper Mountain Mining announced production results for the fourth quarter and full year 2018 for its Copper Mountain Mine in southern British Columbia a few days ago. The Copper Mountain Mine produced 78.85 million pounds of copper for the full year 2018, reaching the production forecast of 76 to 84 million pounds of copper. Copper equivalent production for 2018 was 92.4 million pounds, including 28,250 ounces of gold and 273,910 ounces of silver. The annual average rolling throughput was approx. 40,000 tonnes per day with a copper recovery of 80% and an average feed rate of 0.31% Cu. In 2018, opencast mining averaged 204,000 tonnes per day.
The Company expects production in 2019 to be between 72 and 80 million pounds of copper, with an average slightly lower than in 2018 due to slightly poorer mining. Mined grades are recovering strongly over the years, with production expected to range from 86 to 95 million pounds in 2020 and 81 to 89 million pounds of copper in 2021.
News: Copper Mountain Mining Achieves 2018 Production Guidance and Announces Three-Year Guidance
Video: Newsflash #88 With Bluestone Resources, Copper Mountain & White Gold
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: EnWave + The Green Organic Dutchman + Tilray + Caledonia Mining + Endeavour Silver + Nordic Gold + Sibanye-Stillwater + Steppe Gold + MAG Silver + Treasury Metals + Aurania Resources + RavenQuest BioMed + Millennial Lithium + Auryn Resources + Osisko Gold Royalties + White Gold + Bluestone Resources.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: EnWave + Caledonia Mining + Endeavour Silver + Nordic Gold + Sibanye-Stillwater + Steppe Gold + MAG Silver + Treasury Metals + Aurania Resources + RavenQuest BioMed + Millennial Lithium + Auryn Resources + Osisko Gold Royalties + White Gold + Bluestone Resources.
This publication is based on Swiss Resource Capital AG's detailed risk warnings, limitations of liability and disclaimers, which can be viewed here: www.resource-capital.ch/en/disclaimer.html