Top-News of the week:
EnWave: Second major order within two weeks!
The week before last EnWave announced that the company received a purchase order for a 100kW nutraREV® machine for cheese cake production. Only a few days later the next profitable deal has been signed. This time with Ereğli Agrosan, a Turkish company that secured a license which grants Ereğli Agrosan the exclusive right to process a variety of fruit, vegetable and cheese products using EnWave’s Radiant Energy Vacuum (“REV™”) dehydration technology in Turkey. Ereğli Agrosan will pay EnWave a quarterly product specific royalty based on the wholesale value of the individual product offerings. In addition, Ereğli Agrosan committed for multiple purchase orders for REV™ machinery in order to retain exclusivity. The first purchase order under the License is for a small commercial REV™ machine to be installed at Eregli Agrosans facility in the spring of 2016. In the spring of 2016, a purchase order is required for a second small commercial REV™ machine. The License further requires Ereğli Agrosan submit purchase orders for at least one 100kW REV™ machine within twelve months of the start-up of the first small commercial REV™ machine in Turkey and a second 100kW REV™ machine within three years in order to retain exclusivity. Besides Turkey, EnWave has already granted exclusive licenses for the United States, Canada, Central America, Chile, Portugal and Spain. The recent order is a quantum jump for EnWave, which has a signalling effect for the introduction of the revolutionary EnWave technology in further regions and especially for the important Asian market. Furthermore, the recent purchase orders may have a positive effect on EnWave’s operative profit. For the first quarter ended December 31, 2015 the Company reported consolidated revenue of $2,604,000 and a consolidated net loss of $483,000. The recent Deals should lead to get into the positive numbers within the next few months.
Video Interview with John Budreski, EnWave
Gold: Once again amazing! - Silver: Drastic upward movement, but still upside potential!
The gold price amazes week over week! Even though gold should make a sharp consolidation in cause of its strong upward movement since the beginning of the year, it once more jumped above 1.260 US$ and scratched at the 1.280 US$ mark. From a technical perspective, the air is getting tight now and a correction into the 1.100s range becomes more probable. However, the last few weeks clearly showed that gold still or again has a strong lobby. The current gold price level makes many CEOs of gold companies smile, as they successfully transferred enormous efforts for cost reduction within the last few years. With every dollar the gold price rises, the gold companies margins get bigger and bigger. A fact that should provide good profits to producers like Caledonia Mining, Inca One Gold, Klondex Mines and Timmins Gold and relieve production decisions and financings for development companies like Pershing Gold, Rye Patch Gold, TerraX Minerals and Treasury Metals. This also applies for silver, because the silver price has been able to regain a little bit in comparison to gold within the last week. Even though the gold-silver-ratio still stands at a very high level of around 81, which gives silver further upside potential! A circumstance that opens enormous development- and price advance potential to silver companies like Endeavour Silver, MAG Silver and Cyprium Mining.
Endeavour Silver 2015 financial results
Bradford Cooke, CEO Endeavour Silver about 2016 interview
MAG Silver Interview George Paspalas, CEO
Japan brings fourth reactor back to grid! – Rising uranium price is only a matter of time!
Japan tends to bring one by one nuclear reactor back to grid. At the beginning of February reactor Takahama 3 has been classified as secure and got back to normal operation. Takahama 4 followed a few days ago. At present 25 of the 43 „active“, which means not permanently shut down Japanese reactors are on trial and wait for their licensing. This year three more reactors should get back to grid. 2017 as far as twelve reactors could be reactivated and 25 more until 2020. At the same time 15 to 20% of the worldwide demand could not be covered by operating mines. Furthermore only a few small mines will start production until 2020. But not at current uranium prices below 40 US$ per pound. They will need some 80 US$ to guarantee an economic production. In expert groups there is no doubt that higher uranium prices have to come. Good for high-grade development companies like Fission Uranium which already owns a high-grade resource and which will be able to massively enlarge it within the next few months!
Fission CEO Dev Randhawa about CGN Deal and FCU future
MAG Silver closes 65 Mio. US$ bought-deal-financing plus 9.75 mio. US$ over-allotment option
MAG Silver recently closed its bought-deal financing that secures the company 65 Mio. US$. The subscribers, which mainly consist of clients of the Who is Who of Canadas banking- and investment-world like Scotia Capital Inc., BMO Nesbitt Burns Inc. and Raymond James Ltd, Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., TD Securities Inc., Cormark Securities Inc., Desjardins Securities Inc. and PI Financial Corp. furthermore used the option to purchase 1.335 Mio. additional shares which would bring another 9.75 mio. US$ into MAG Silvers treasury. The company will use the money to develop the Juanacipio Mine together with Fresnillo to bring it into production until 2018, and for exploration work.
MAG Silver with bought deal over 65 Mio. $
Pershing Gold closes 6.9 mio US$ private placement – Relief Canyon to become a low-cost-mine!
Pershing Gold announced the closing of a private placement of 6.9 mio. US$. Therefore the company issued 2,120,882 Units, with each Unit comprised of 1 share of Common Stock and a 30 month warrant to acquire 0.5 of a share of Common Stock at an exercise price of $5.06, pursuant to subscription agreements with certain accredited investors, at a price of $3.25 per Unit. Pershing expects to use the net proceeds mainly for the advancement of the Company's Relief Canyon project.The company now finds itself in a very comfortable financial position to bring Relief Canyon back into production ASAP. Furthermore Pershing Gold issued a shareholder letter which – amongst others – included estimated all in sustaining costs in the range of approximately US$ 725 to US$ 775 per ounce gold. A sensational low price which promises a very high margin!
PP news Pershing Gold
Pershing Gold letter to shareholders
Crude oil prices still weak! Will the turnaround come as soon as the US-shale-oil (fracking) industry has been floored?
In recent newsletters we philosophised much about the OPEC’s risible proclamation to freeze their crude oil production at the record levels of January 2016. Where is the sense in freezing a production at record levels when other countries like Iran rise their production at the same time (Iran recently announced to rise their crude oil exports from 1,5 Mio barrels per day in February to 1.65 Mio. barrels in March) and besides that inventory is overfull? A hot rumour from recently closed BMO Global Metals & Mining Conference in Miami says, that OPEC- and Non-OPEC-countries may agree to reduce their crude oil production by midyear 2016. The countries believe that most of the big competition from the US-shale-oil (fracking) industry may be bankrupt until that time. If the biggest competitor from outside the OPEC has been eliminated as far as possible, the own production could be easily cut and the oil price could be catapulted to 50, 60 or even 80 US$. A level that barely guarantees that the flaring up fires in the US will not flash up again. This scenario sounds quite realistic and would be even more worthwhile for also saddled OPEC countries.
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