Newsletter 01 /2020
This newsletter contains news on the following topics:
Share of the week: RNC Minerals + Gold price soon at US$2,000?!? + Uranium Energy + Uranium Royalty + Osisko Gold Royalties + Skeena Resources + EnWave + Caledonia Mining + White Gold + Fission 3.0 + Aurania Resources + Maple Gold Mines
We would like to take this opportunity to wish you a happy, healthy and successful stock market year. Already at the end of 2019, but especially at the beginning of the new year, which in our view has heralded a new, strong decade for commodities, several commodity companies were able to publish high quality news.
Especially for this purpose we would like to recommend the following Newsflash, which covers several of the companies mentioned in this newsletter: Newsflash with Skeena, Osisko Gold Royalties, RNC Minerals, IsoEnergy and Auryn Resources.
We also recommend that you take a look at two new and interesting companies that we would like to look at in more detail in the future:
RNC Minerals: Increasing Gold Production Up To 110k,000 Oz in 2020
We are looking forward to another exciting raw materials year with you!
Announcement: SRC is in the midst of creating a new certificate to make it easy to invest into all our companies in one security. The new SRC Mining Special Situations Certificate should be in 2 weeks tradeable and will be denominated in Swiss Francs. We also mix this with dividend paying major companies to make sure there is a constant revenue stream. The new certificate is done in cooperation with Asset Management Switzerland and will be managed by Prof. Dr. Torsten Dennin. Stay tuned for more information!
Share of the week: RNC Minerals
RNC Minerals achieves record production and repays debt ahead of schedule
RNC Minerals recently announced that since acquiring the HGO mine and mill, it has achieved a consolidated record gold production of 9,620 ounces for the month of December 2019 from its Beta Hunt and Higginsville mines in Western Australia. For the fourth quarter of 2019 production totalled 26,874 ounces. For the second half of 2019 production totalled 51,090 ounces and thus exceeded the company's forecast of 42,000 to 49,000 ounces. Production for the whole year 2019 amounted to 64,277 ounces.
Given the strong cash generation from operations, RNC decided in December 2019 to repay $3 million of debt early (reducing interest costs for 2020) and closed the year with a strong cash position of $34 million.
News: RNC Exceeds 2H19 Guidance with Production of 51,090 oz After Record December Monthly Production Since HGO Acquisition; Pays Down $3M in Debt Early to Reduce Interest Costs
RNC Minerals improves royalty agreement
RNC Minerals also announced that it has restructured the royalty agreement on a number of properties at its Higginsville Gold Operations in Western Australia. Prior to these changes, the royalty on these properties included a net smelter return (NSR) of 1.75% plus a 50% participation payment for the difference between the realised gold price and AU$1,340 per ounce. The restructured royalty provides for a flat 2% NSR after payment of an adjusted scrap rate for the first 10,000 ounces of gold sold per year.
This revised structure addresses RNC's strategic objective for an additional economic incentive to extract gold resources on these properties in a meaningful way.
News: RNC Restructures Royalty at Higginsville Gold Operations to Unlock Significant Production Potential and Lower Costs
RNC Minerals announces reserve for Beta Hunt Gold Mine
In addition, RNC Minerals announced an initial gold mineral reserve of 310,000 ounces (3.4 million tonnes at an average grade of 2.8 g/t) at its Beta Hunt Gold Mine in Kambalda, Western Australia. The gold mineral reserve forms the basis of Beta Hunt's mining plan, which provides for base load feed to the Company's Higginsville processing plant. Together with the Higginsville Mine, the company feeds the 1.4 million tons p.a. Plant with 100% capacity.
The gold mineral reserve remains open to potential expansion along strike and at depth from both the existing gold mineral resource (which underpins the mineral reserve) and exploration targets to be tested by drilling.
News: RNC Minerals Delivers Maiden Beta Hunt Gold Mineral Reserve
Video presentation: RNC Minerals: Increasing Gold Production Up To 110k,000 Oz in 2020
Gold price soon at US$2,000?!?
More or less at the start of the Christmas holidays the gold price broke out of its sideways movement and within a few days jumped up to almost US$1,600. But was that it already or will there be another increase? The point and figure analysis shows that at US$1,580 a further buy-signal has opened up, which could even push the gold price up to a new record high of around US$2,000 within a few months. In many other currencies the gold price has already reached all-time highs. You can find further details in our current Point and Figure Analysis:
Further company news:
Uranium Energy lists Royalty Company
Uranium Energy was able to announce in late 2019 that Uranium Royalty Corp. successfully completed its IPO and raised gross proceeds totaling CA$30 million. The shares of Uranium Royalty have commenced trading on the TSX Venture Exchange under the symbol "URC". Uranium Energy holds 14 million shares of Uranium Royalty Corp. representing 19.5% of the issued and outstanding shares.
Uranium Royalty Corp. is the first and only publicly traded uranium licensing and streaming company. UEC believes that shareholders will indirectly benefit from the leverage effect on the uranium price through a variety of royalties across different jurisdictions and operating partners due to their interest in URC.
News: Uranium Energy Corp Announces the Public Listing of Uranium Royalty Corp.
Osisko Gold Royalties announces high quality drill results from Osisko Mining
Osisko gold Royalties reported a few days ago that Osisko Mining Inc. has reported significant high-grade drill results from its Windfall gold project, including 1,475 grams per tonne over a 4.6 metre length of Windfall's Lynx Zone. This is one of the best parts of this project so far.
Osisko Gold Royalties owns a net smelter return royalty of 1.5% of Windfall and a large block of shares in Osisko Mining.
News: Osisko announces positive drill results at Osisko Minings Windfall project
Skeena Resources Drilling Over 3,300g/t Gold
Skeena Resources reported initial assay results a few days ago from the recently completed Phase I surface exploration drill program at the Snip Gold Project. The surface program in 2019 comprised 10 surface holes totalling 1,934 metres. The Company encountered 1,131.91 g/t Au over 1.50 metres from 249.60 metres depth including 3,390.00 g/t Au over 0.50 metres. In addition, a longer interval of 5.10 metres was drilled at 16.64 g/t Au.
A bang that impressively underscores the high potential of the project.
News 1: Skeena Intersects 1,131.91 g/t (36.39 oz/t) Gold Over 1.50 m in New Footwall Mineralization at Snip
News 2: Skeena Intersects 16.64 g/t Au over 5.10 m in 200 Footwall at Snip
Video presentation: Skeena Resources: Exploration and Development of Historic Gold Mine - Deal with Barrick
EnWave announces further license agreement
EnWave recently signed a commercial fee-based licensing agreement with Responsible Foods ehf for the production of Radiant Energy Vacuum ("REV™") dried snacks and ingredients from high quality Icelandic raw materials. These REV ™ -dried products are sold both on the national and international market. Under the terms of the licence, Responsible Foods purchased a commercial 10 kW REV ™ machine to start production in Iceland. The licence grants Responsible Foods the exclusive right to process a variety of unique and healthy food products in Iceland, including but not limited to dairy products, seafood, meat, microalgae and algae, as well as a variety of herbs, berries and fungi found in Iceland. These REV ™ -dried products can be sold as ingredients or as retail products all over the world.
This license is EnWaves' first license in Iceland and the 36th worldwide.
News: EnWave Signs Commercial License Agreement with Responsible Foods in Iceland and Receives Purchase Order For REV™
EnWave receives additional machine order
Furthermore, the Company reported that it had signed an equipment purchase agreement for the supply of a 100kW nutraREV® processing line to Consulting FB Tech and Apps S.L. ("Fresh Business") in Peru. The agreement marks the expansion of Fresh Business' commercial activities in Peru, where the company sources high quality, highly nutritious fruit and vegetable products that are dried using EnWave Radiant Energy Vacuum ("REVTM") technology for export to international markets. The installation and commissioning of the 100kW nutraREV® processing line is planned for summer 2020. EnWave and Fresh Business signed a royalty-bearing commercial license agreement in April 2019, granting EnWave Fresh Business exclusive rights to produce a variety of premium dry feed products using REV™ technology in Peru. Fresh Business bought a 10kW REVTM machine when signing the license.
With the addition of a 100kW nutraREV® machine, Fresh Business will significantly increase its royalty-bearing production capacity.
News: EnWave Receives Purchase Order for Large-Scale 100kW nutraREV® Processing Line from Fresh Business Peru
EnWave achieves further success in Australia
In addition, EnWave announced another success in Australia a few days ago. It was announced that a commercial licence subject to royalties had been signed with KL Ballantyne Pty Ltd, a leading Australian dairy company. The licence grants Ballantyne the exclusive right to produce dairy products in Australia using the company's patented Radiant Energy Vacuum ("REV™") technology, with the exception of cheese snack products for direct consumption. In addition to the licence, Ballantyne signed an equipment purchase agreement to purchase a 10kW REV™ machine to start commercial production. Ballantyne has agreed to pay an undisclosed licence fee linked to the commercial success of the REV™ dry products they market.
This licence is the third fee-based licence signed with an Australian company, the fifteenth such licence for dairy processing worldwide and further proof of the value of REV™'s technology as a tool for creating innovative, high quality food applications in the dairy industry.
News: EnWave Signs Commercial Royalty-Bearing License with KL Ballantyne Pty Ltd and Receives Purchase Order for REV™ Machinery
Caledonia Mining increases dividend
Good news for all shareholders as Caledonia Mining announced a few days ago that the Board of Directors has declared an increased quarterly dividend of seven and a half US cents (US$0.075) on each ordinary share of the company. This represents a 9.1% increase over the previous quarterly dividend of 6.875 US cents. The company decided to take this step due to a much better financial performance, which has improved due to increased production and the continued higher price of gold. The central shaft will be put into operation in Q4 2020. Furthermore, a target production of 80,000 ounces of gold per year is expected from 2022.
News: Caledonia declares an increased quarterly dividend
Buy recommendation for Caledonia Mining
WH Ireland published a research report on Caledonia Mining a few days ago. The analyst firm issued a clear buy recommendation, which is partly due to the dividend increase.
Research Report: WH Ireland Research with buy recommendation for Caledonia Mining due to rising dividend
White Gold reports high grade gold grades
White Gold recently announced the results of diamond drilling at the Vertigo Target, located 25 kilometres northwest of the Company's flagship Golden Saddle & Arc deposit. Drilling included 4.31 g/t Au over 11.60 metres from 31.00 metres.
These results confirm that the Vertigo target is a structurally controlled mineralized zone that is part of a regional system, including the recently discovered Sabotage, Topaz, North Frenzy and several other gold targets on the JP Ross property. To date, at least 10 gold targets have been identified on the JP Ross property over an area of 250 square kilometres, with Vertigo being the first to receive diamond drilling subsequently.
News: White Gold Corp. Drills 4.31 g/t Au over 11.6m from 31.0m depth, Extends High-Grade Mineralized Structures Within Large Mineralized Zone at Vertigo Discovery, JP Ross Property
Fission 3.0 encounters up to 8.23% U3O8 at Hearty Bay
Fission 3.0 was able to announce the results of recent exploration activities on its Hearty Bay project in the northwest region of the Athabasca Basin in Canada a few days ago. Prospecting work on the historic Wolfe and Jackfish Block Fields on Isle Brochet has identified 45 new occurrences of radioactive blocks with assay values of up to 8.23% U3O8 that dwarf the historic peak values of 3.54% U3O8. Several complementary investigations, including glacier direction determination, ocean-acoustic seismics and sea-bed spectrometry, have revealed a likely direction of bedload transport and identified markers of the potential source.
The location of these marks represents a clear area of interest for drilling, as a significant uranium deposit could be encountered there.
News: Fission3: Boulders at Hearty Bay Returns Assays of up to 8.23% U308, Identifies Potential Source Location
Aurania Resources: Consultant offers prospects for copper deposits
Aurania Resources recently reported on the prospects of Professor Gregor Borg, an independent specialist and expert in sedimentary hosted copper deposits, during his visit and review of the Lost Cities - Cutucu Project in southeast Ecuador. Professor Gregor Borg observed that, in his extensive and global personal experience, he has never before encountered spatially consistent porphyry copper deposits and sedimentary hosted copper deposits as found throughout the project area.
This potentially geologically unique situation is due to the intrusion of the porphyry into chemically receptive red sediments and black shale and should continue to encourage the Company to target such drill targets.
News: Expert Consultant Provides Perspective on Sedimentary-Hosted Copper in Aurania’s Project Area
Aurania Resources receives CA$5.2 million
Furthermore, Aurania Resources reported that shareholders exercised warrants valued at CA$ 5,234,061 until the expiry date, December 29, 2019. These warrants, which entitle the holder to purchase one common share of Aurania at CA$ 3.00 each, were issued in private placements that the Company had completed in 2017 and 2018.
Aurania Resources thus receives another important financial injection.
News: Aurania Raises C$5.2 Million from the Exercise of Warrants
Maple Gold Mines increases financing
Maple Gold Mines recently announced that it has completed its previously announced non-brokered private placement for total gross proceeds of CA$1,132,000 and subsequently arranged additional financing of CA$330,000.
The Company intends to use the net proceeds from the private placement to further advance the Douay gold project.
News: Maple Gold closes previously announced C$1,132,000 private placement and arranges additional $330,000 financing
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following assets mentioned in this issue: RNC Minerals + Uranium Energy + Uranium Royalty + Osisko Gold Royalties + Skeena Resources + EnWave + Caledonia Mining + White Gold + Fission 3.0 + Aurania Resources + Maple Gold Mines + IsoEnergy + Auryn Resources.
Swiss Resource Capital AG has concluded IR consulting agreements with the following companies mentioned in this issue: RNC Minerals + Uranium Energy + Osisko Gold Royalties + Skeena Resources + EnWave + Caledonia Mining + White Gold + Fission 3.0 + Aurania Resources + Maple Gold Mines + IsoEnergy + Auryn Resources.
This publication is based on the detailed risk information, limitations of liability and disclaimers of Swiss Resource Capital AG, which can be viewed here: risk information and disclaimer