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Golden Guide: 3 Best Ways To Invest In Gold

Gold is a hot commodity right now. Q3 2020 hedge fund letters, conferences and more The economy is in shambles. Copper is in high demand. That’s thanks to the expansion of electric-vehicles every year. Not to mention, construction, HVAC, and electronic…

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This article was originally published by Value Walk

Gold is a hot commodity right now.

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Q3 2020 hedge fund letters, conferences and more

The economy is in shambles. Copper is in high demand. That’s thanks to the expansion of electric-vehicles every year.

Not to mention, construction, HVAC, and electronic industries too.

Everyone’s getting in on it. Even you.

But how should you invest, and is it the right investment?

Well, let’s see.

Particularly during a market downturn, such as this, gold becomes an enticing investment. It’s an opportunity to protect and profit—to broaden your portfolio.

And with the right understanding about the stock you’re investing in, there’s no reason you shouldn’t join in on the forthcoming copper boom.

Let’s take a look at three primary ways to invest in gold.

Three Types of Gold Stocks (“Paper Gold”)

Gold Mining Stocks

If you’re not looking to get your hands directly on gold—look to gold mining stocks.

It’s a popular option for investors.

Investing in mining stocks is similar to buying any other stock. When you invest in mining stock, you’re investing in a share of a company that produces, explores, and mines for gold. It’s a liquid investment.

Keep in mind, however: it’s important to know the stock you’re investing in.

The success or failure of a mining company is dependent on their individual operating performance as well as the generating and deploying of their profits.

For this reason, gold stocks don’t necessarily move in accordance with bullion prices.

Ultimately, you won’t have the physical security of the gold if the company you invest in turns out unsuccessful.

You can, however, buy individual gold stocks or spread out the operational risk by buying an ETF that holds a basket of gold miners—an example being the GDX.

Gold ETFs

Gold ETFs means exchange traded funds, also known as closed-end funds.

Gold ETFs such as Gold Bullion Securities (LSE: GBS.L), SPDR Gold Trust (NYSE: GLD), and ETFS Physical Gold (LSE: PHAU.L) gives investors the opportunity to track the cost of gold through a fund. This simplifies the process of owning gold.

For example, a Gold fund provider may own assets, create a fund to mitigate their performance, and then sell shares in that fund to investors. Though shareholders may have a portion of an ETF, they don’t own the rudimentary assets in the fund. Nevertheless, investors in an ETF that track a stock index will receive lump dividend payments, or reinvestments, for the stocks making up the index.

Much like a share, an ETF can be purchased on a stock exchange.

However, on the contrary, ETFs track an index, a commodity, bonds, or a basket of securities; stock primarily focuses on one company.

A benefit to ETFs:

You can dodge the costs and hassle of markups, storage costs, and security risks that come with obtaining physical gold.

The downside to ETFs:

You’ll lose a percentage of the investment’s value annually to the fund’s ratio.

The expense ratio is the recurring annual fee charged by funds. This covers the cost of all administrative and management expenses.

Additionally, you’ll have to pay a commission to buy and sell an ETF. Most commissions are only under $10.

However, this may add up if you’re an active trader.

Gold Certificates

Though no longer a popular means to invest in gold, there’s always a gold certificate.

Gold certificates aren’t technically bonds. Moreso, it’s an official document that states you own gold that’s not in your possession.

Be wary though. Once again, it all falls on the integrity of the company you’re purchasing from.

If the company fails, just like that, your gold certificate becomes worthless.

Is the Latest Copper Investment Pick Right for You?

Latest Copper Investment Pick: Josemaria Resources ($JOSE / $JOSMF)

In the last years, there’s been very few new gold discoveries. For one reason, many theorize that we’ve reached “peak gold” production which is causing a rising challenge for the industry.

However, to counter this argument, many mining companies are turning to copper deposits to find gold as they are frequently found together. An example of this is Josemaria, one of the largest undevelopment copper-gold projects in the world. Boasting a reserve profile of 7 million ounces of gold, this leading mining company is located in San Juan Province, Argentina.  Consistently, Josemaria Resources ($JOSE / $JOSMF) have acquired the largest mineral discoveries, developing them into major mines that spin out gold, copper, and cash year after year.

Many notable names are associated with Josemaria Resources ($JOSE / $JOSMF). The Lundin Family has been the driving force behind some of the top-performing mining development companies for years. In addition, the world’s top mining families everywhere are gearing up to cash in on it this company

Now’s the opportunity to make an investment worthwhile.

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The post Golden Guide: 3 Best Ways To Invest In Gold appeared first on ValueWalk.





Author: Anna Peel

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6 Canadian Penny Stocks That May Take off in November 2021

If you’re looking for some of the hottest Canadian penny stocks on the market today, you’ve come to the right place. We’ve got 6 of the best penny stocks…

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If you’re looking for some of the hottest Canadian penny stocks on the market today, you’ve come to the right place. We’ve got 6 of the best penny stocks to be looking at in 2021. Continue reading to find out what they are!

What is the definition of a penny stock?

The definition of a penny stock is quite broad. You’ll get varying answers from different investors, but the general consensus is that a penny stock is a stock that trades below $5.

However, it’s important to note that a lot of popular stocks, ones that don’t have the volatility or market capitalization of a penny stock trade below $5. So here is a few more guidelines to help you narrow down your search:

  • Penny stocks are typically smaller companies, and their shares are often illiquid (not easy to buy and sell)
  • They have a small following, and typically are not covered by major analysts
  • They usually trade OTC (over-the-counter, more on this later) or through pink sheets.

Canadians often confuse the term small-cap stock with penny stock. Unlike numerous small-cap stocks, you won’t find penny stocks trading on the TSX.

This is often because they are too small to meet the requirements needed to list on major exchanges, and don’t file the proper paperwork needed.

How do I buy penny stocks in Canada?

The first box you need to check off if you want to invest in penny stocks is the ability to handle significant volatility. If you don’t think you can stomach the risk, simply head to our how to buy stocks page to get started investing in the major exchanges.

What I like to tell investors looking to start trading the pink sheets, is to set aside an amount you would be completely comfortable losing. I wouldn’t recommend anyone invest their whole portfolio into penny stocks. But a designated amount, say 10% of your total portfolio, is completely reasonable.

Once you’ve allocated some capital towards what I like to call “fun investing”, you’ll need a brokerage account.

If you already have one, you’re ahead of the game. If not, feel free to check out our Questrade review. In my opinion, they are the best brokerage to start with if you’re looking to invest in penny stocks.

Take advantage of our exclusive offer for $50 in free trades with Questrade today.

Keep in mind, most brokerages charge more than their standard commission rates to buy penny stocks.

This is simply due to the fact that the stocks are traded over-the-counter, which is a little bit different than processing a transaction on a normal exchange.

Is it bad to invest in penny stocks?

If you’ve developed the proper strategy no, it isn’t bad to invest in penny stocks.

Where people go wrong, is investing money that they simply can’t afford to lose, and in the end it puts them in a very difficult position both emotionally and financially.

Penny stocks are, in the end, a gamble. We don’t have enough fundamental research to form any sort of concrete conclusion about the company’s future. So, our opinion is that you should be purchasing penny stocks with money you would be completely comfortable taking to a casino.

Why are penny stocks so cheap?

Penny stocks are often companies that do not meet the requirements or have the funding to list on major exchanges. As such, they typically have low market capitalizations and less stringent requirements.

One requirement to list on major exchanges is a higher share price. With penny stocks, there is no minimum and as such, stocks can trade extremely cheap, sometimes in fractions of a penny. The key to judging a size of a company is not its share price however, but it’s market cap. This is a very important concept.

Can you get rich off penny stocks?

It is possible to become rich investing in penny stocks yes. But, it’s very important you understand that for every success story, someone striking it rich and retiring early off a penny stock, there is a dozen, if not more, disasters of people risking way more than they were comfortable with and losing it all.

You are more likely to go broke than strike it rich with penny stocks. So, keep this in mind and invest solid, blue-chip stocks with the majority of your portfolio and spend expendable capital if you wish on Canadian penny stocks.

Can you buy penny stocks on Wealthsimple?

Unfortunately with a brokerage like Wealthsimple Trade, you won’t be able to buy Canadian Penny stocks. Why?

Well, when companies aren’t listed on a normal exchange like the NYSE,NASDAQ or TSX, they are traded via a broker-dealer network. Transactions take place via a bulletin board (the OTCBB) and Pink Sheet listing services.

These broker-dealer networks communicate with each other and act as market makers. They will locate shares available for purchase or sale, along with negotiate a price for a fee.

Although most of the stocks trading over-the-counter cannot make it on the major exchanges due to regulations, they still need to meet requirements to trade OTC.

It’s not only penny stocks that trade over-the-counter either. For example, companies may also issue bonds over-the-counter.

If you want to find a brokerage that will let you trade Canadian penny stocks, you’ll need to stick to one that deals with OTC transitions like Questrade.

Tips when buying penny stocks

Before you get started, I’m going to drop you a few quick pointers you will need to be successful with buying penny stocks here in Canada. This is by no means a complete list, however I feel they are some of the most, if not the most important things you need to know so you don’t lose your money.

  • When buying penny stocks, be aware that smaller sized entities may not be required to file documents with the Securities and Exchange Commission (SEC), something that bigger companies are required to do. This makes determining the financial health of a company nearly impossible, which is often why purchasing penny stocks is often thought of as nothing more than a gamble.
  • In order to reduce your risk, try investing in companies listed on the OTCQX or OTCQB exchanges. These are essentially the top and middle tiers in terms of penny stocks, and companies listed on these exchanges will more than likely have accurate financial information, and will file it in a timely manner.
  • If you’re looking for some of the highest returns, albeit highest risk, the OTC Pink is the lowest tier of penny stocks in terms of financial information provided. These stocks are the most volatile, so they bring with them highest potential profitability. Keep in mind though, the higher the reward, the higher the risk.
  • There are a ton of penny stocks out there, and I would highly suggest using a screener to identify and narrow down your potential list of suitable companies.
  • Knowledge in technical analysis is absolutely crucial when trading penny stocks. Because limited or inaccurate financial information is available to most investors, fundamental analysis almost plays no part in picking stocks.
  • Analyze the management team. More than anything, they will be responsible for the inevitable failure or success of the company. With startups in particular, there will be a lot of key decisions made by the management team that can make or break an over-the-counter company.

FP Newspapers (TSXV:FP)

Hot Penny Stocks On The TSX - FP Newspapers

Speaking of terrible liquidity, you’ll want to be careful trading Canadian penny stock FP Newspapers (TSXV:FP) shares. This $0.63 stock sometimes goes a whole day without trading and has average daily trading volume of just a few thousand shares.

I’m the first to admit a company that owns 49% of the distributable cash of several newspapers in Manitoba – most notably The Winnipeg Free Press – doesn’t sound like a very exciting penny stock opportunity in 2021. But this stock is insanely cheap, and it seems to be turning a corner.

It earned approximately $0.32 per share in 2020, while shares trade for less than 2x that much. It’ll get a nice journalism tax break from the Canadian government in 2021, too.

It also could sell its headquarters in Winnipeg for a nice gain as well. Shares could see another boost when an important loan gets extended.

The stock could also pay a substantial dividend in a year or two once it starts to earn a little more money and it gets its balance sheet more under control. If this happens, you’ll be very happy you got in today.

Kodiak Copper (TSXV:KDK)

Kodiak Copper Stock

 

Kodiak Copper (TSXV:KDK) is a newer player on this list of top Canadian penny stocks primarily because of the rising price of copper.

If you haven’t been paying attention, the price of copper has launched over the last year, going from lows of $2.10 in 2020 to touching highs of $3.70 just recently in 2021. Obviously, with this company being essentially a copper pure-play, it stands to benefit from this increase in price.

In fact, in September of 2020, resource giant Teck Resources invested $8 million into Kodiak Copper, representing a 9.9% stake in the company, and showing strong signs of confidence and outlook for the junior exploration company moving forward.

The company generates no revenue and is largely a play on its exploration efforts and asset base which is located in British Columbia, Arizona and Nunavut.

The company actually recently went through a transition, as it changed its name from Dunnedin Ventures to Kodiak Copper at the start of 2020, and is probably one of the higher risk plays on this list. However, there’s always large potential in exploration companies in the very early stages. Just be wise, and invest with expendable capital.

Namesilo Technologies (CSE:URL)

Top Canadian Penny stocks - Namesilo

 

Namesilo Technologies (CSE:URL) is an internet services company in Canada that registers domain names, provides hosting, offers email services, and provides various other needs for the owners of websites.

In 2021, having your own website is imperative. Customers don’t bother picking up the phone if they have a question or concern; they’re just going to go straight to your website. If you don’t have a digital advertising strategy, good luck.

Namesilo is delivering blistering growth of late, more than doubling its top line on a year-over-year basis in 2019. Net income before taxes, meanwhile, grew more than 1,000% compared to the same period last year. Profit margins expanded as well, and the company reported strong customer retention rates.

The question is whether Namesilo can continue its blistering growth. It should benefit from new businesses (and individuals) becoming serious about building an online presence, as well as taking customers from competitors. Its focus on giving great deals and providing excellent service is a winning combination.

And at just $0.25 per share, Namesilo certainly qualifies as a penny stock. The stock only has a market cap of just under $23 million, so big-time investors might struggle with its lack of liquidity.

Fobi AI (Formerly Loop Insights) (TSXV:MTRX)

Loop Insights Logo

 

Fobi AI (TSXV:MTRX) has surged in value recently, but prior to this the company had a market cap of just over $40 million. It now sits at just under $190 million, but I’d still firmly place this company in penny stock territory.

Fobi AI, which recently changed its name from Loop Insights, provides retail and marketing solutions for digital and physical landscapes. They’re primarily situated in the AI sector, and the company’s primary function is to enable brick and mortar companies to analyze critical customer data, including customer spending habits and trends.

The company works in the casino, sports, hospitality, retail and education sectors and has signed multiple critical contracts with some major players here in Canada, including Telus, Amazon and Shopify. Although the company does not generate any revenue at the time of writing, this is still a company you’ll want to keep a close eye on moving forward.

As of right now, it’s very difficult to value this company considering it has no form of revenue generation or any sort of earnings. And because of this, we can expect the company to be, like many Canadian penny stocks, extremely volatile around earnings time and on news releases. There is a lot of speculation and forward earnings priced in to Loop’s price right now, so we’d stress extreme caution if you’re considering taking a position.

Athabasca Oil (TSX:ATH)

Canadian Penny Stocks - Athabasca Oil

Athabasca Oil (TSX:ATH) is a classic penny stock conundrum. It has huge upside potential, but there’s also a real possibility the company could go bankrupt. It’s almost like flipping a coin, except if you win, you’ll likely do far better than just doubling your money.

The company has light oil production in both the Motney and Duvernay fields in Alberta Canada, as well as heavy oil production near Fort McMurray. The heavy oil assets have a long reserve life, but the company isn’t making much from any of its production because of low oil prices.

Athabasca projects it’ll start earning free cash flow in the next couple of years, but in the meantime, it’s forced to spend approximately $125 million each year on sustaining capital. It has cash on the balance sheet, but it must also contend with refinancing some US$450 million worth of debt coming due in 2022.

You could make a lot of money if oil recovers and Athabasca Oil shares shoot higher. But this $0.22 stock is cheap for a reason. You’re taking some significant risk buying today, especially with the demand in oil plummeting due to COVID-19.

However, a quick recovery in the industry could lead to a quick recovery in this stocks share price as well. Prior to COVID-19, Athabasca’s share price sat in the low $0.50 range.

Redishred (TSXV:KUT)

Top Canadian Penny Stocks - Redishred

One of our favorite Canadian penny stocks is Redishred Capital (TSXV:KUT), which owns and operates the Proshred brand.

Proshred has two separate business models – it both owns mobile paper shredding trucks and it franchises out locations to interested franchisees. The company has either corporate or franchised operations in 40 different U.S. cities.

The mobile paper shredding model has a few interesting advantages. It allows Redishred to easily acquire competitors and then rebrand them. It’s more secure – and convenient — than bringing documents to a central location. And the multi-city business model allows brand recognition in an industry that’s currently very fragmented.

It’s well poised to keep growing, thanks to its clean balance sheet with almost zero debt. Top managers are major shareholders with an ownership stake of more than 40% of the company.

And unlike many penny stocks, this company generates plenty of cash flow. Remember, this company has a share price of $0.61 and a market cap of just over $48 million. It doesn’t take much to really move the bottom line.

Redishred is one of our top penny stock picks in Canada because it’s in a good business with great growth potential. It’s the kind of stock you’ll want to stick in your portfolio and own for a very long time.

However as with any other penny stock, you’ll want to keep a close eye on it incase anything materially changes.












Author: Dan Kent

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Canada’s Top Renewable & Clean Energy Stocks for November 2021

There’s no questioning the fact that as a population we’re moving towards cleaner, greener forms of energy. Fossil fuels will be a thing of the past, and…

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There’s no questioning the fact that as a population we’re moving towards cleaner, greener forms of energy. Fossil fuels will be a thing of the past, and the world will benefit immensely from it.

How long will it take before Canadian renewable companies dominate the energy scene? It’s difficult to say. But if I were to guess, not long at all. That’s why you need to have a look at these Canadian stocks before it’s too late.

The renewable energy vs fossil fuel debate is a heated one

The effects of fossil fuels on the climate and climate change in general is an extremely touchy subject, and arguments from both sides tend to pack a sizable punch in terms of support. Plus, much like Canadian gold stocks, fossil fuel companies rely heavily on a commodity and can be quite cyclical.

But all while this is happening, green energy companies here in Canada are quietly amassing large asset bases and production capacities. It’s an investment gold mine.

Your best bet as an investor is to funnel out the noise and instead take a position in a strong TSX listed renewable energy stock.

Because it’s a matter of when, not if these companies take over as the primary method of energy generation

And while people sit on the sidelines, squabbling over if swapping to renewables is worth it, you can be making boatloads of money off of it.

Don’t believe me? These clean energy companies have crushed the returns of the TSX Index.

So if you’re new to buying stocks here in Canada, you may want to know what exactly these Canadian renewable energy companies do. Lets go over it.

What exactly do Canadian renewable energy companies do?

Renewable energy is defined as such:

“energy from natural resources that can be naturally replenished within a human lifespan.” – Natural Resources Canada

Renewable energy companies provide sources of power that are often considered cleaner and more sustainable including but not limited to:

  • Hydroelectric
  • Wind
  • Solar
  • Biomass
  • Hydrogen

Renewable energy provides nearly 20% of Canada’s energy supply, with hydroelectricity accounting for over half of that.

A common misconception with Canadian green energy companies? 

Renewable companies aren’t the new kids on the block, despite many thinking so.

In fact, they have been around for quite some time now, and as a result clean energy stocks provide stable and reliable cash flows, much like regulated utility giants Fortis, Canadian Utilities and Emera.

The end result?

Clean energy companies are able to provide strong dividends to go along with upside potential in an ever growing industry.

Let’s take a closer look at four renewable energy companies we think are the cream of the crop here in Canada for 2021.

As requested by many readers, we’ve also added a solar energy company to the list in this most recent update. Solar stocks in Canada have been around for a while, but have remained relatively unknown due to high costs, and investors are starting to gain interest

What are the best Canadian renewable energy stocks?

4. Canadian Solar Inc (NASDAQ:CSIQ)

Canadian Solar Stock

One of the primary reasons we’ve never included a Canadian solar company on this list of renewable energy stocks is the fact that the best of the best trades down south on the NASDAQ.

However, due to increasing demand we figure we’d start talking about Canadian Solar Inc (NASDAQ:CSIQ).

Solar stocks in general have surged as of late, but since its lows in March 2020 Canadian Solar has shot up over 81%.

The stock has dipped significantly from all time highs however as renewable energy companies have gone through a significant correction. But, there is still a bullish attitude.

We think investors, and analysts for that matter, are finally starting to see the potential in the once small cap Canadian (but U.S. traded) company.

Canadian Solar benefits from a fairly low cost of production and has a decent amount of projects planned for the future.

Initially, solar power faced a lot of criticism. Production costs were extremely high, and it wasn’t looked at as a permanent solution to dirtier forms of power.

But the fact is, we wouldn’t even need to capture one-hundredth of a percent of the energy hitting the earth in a year to be able to scrap every other form of energy generation. And as costs of production come down, it’s becoming a more feasible clean energy generation method.

Canadian Solar has been a very frustrating stock for those buying it as a value investment.

But interestingly enough, even with a 81% run up, Canadian Solar is still fairly valued considering the future of solar energy.

Trading at only 0.38 times 2021 expected sales and 14.23 times 2021 expected earnings, valuations are not outrageous. The company has been fairly inconsistent with its growth, which is why the market isn’t really willing to pay a high earnings multiple. But again, most of its inconsistencies have been as a result of what we’ve stated above.

Growth is expected to pick back up in 2022 and 2023, and 2023 expected revenue of $7B USD would mark a 100% increase from 2020 revenue of $3.47B. There is promise in the industry, and at current valuations the company is certainly worth a look.

Keep in mind however, this is the only renewable energy stock on this list that doesn’t currently pay a dividend, and we would classify this stock as the highest risk of the bunch as well.

CSIQ 5 year performance vs the NASDAQ:

CSIQ Vs NASDAQ 5 Year

3. Northland Power (TSX:NPI)

Northland Power Logo

Northland Power (TSX:NPI) is a pure-play renewable energy company, and one that has been in business for a long period of time. The company was established in 1987, and operates nearly 2.8 GW of electricity, with potential future capacity in excess of 5 GW.

Northland has witnessed some incredible growth in terms of earnings over the last 3 years with a compound annual growth rate (CAGR) in excess of 30%. The company has also managed to more than double revenue since 2015.

The bulk of the company’s renewable operations are located in Eastern Canada.

In fact, the farthest the company reaches out west are two facilities in Saskatchewan – its Spy Hill facility with 86 MW of production and its North Battleford facility, with 260 MW of production. Both of these facilities generate power by burning natural gas and full contracts are established until 2036 and 2033 respectively.

The company has a total of 27 assets, 2 of which we’ve already talked about. With 19 facilities in the province, Northland has a high percentage of its assets in Ontario. Quebec has 2 wind farms, while the Netherlands and Germany have one wind farm each, Netherlands being offshore.

The renewable company closed on its acquisition of EBSA back in September of 2019, a Colombian regulated utility company for around $1.05 billion. EBSA serves nearly half a million customers, and its revenue is highly regulated, thus highly reliable. It also provides Northland Power with strong revenue outside of North America.

In terms of performance, Northland Power, at least over the last year and a half, has not disappointed. Much like other Canadian renewable energy stocks, it was hit hard in the correction at the start of 2021. However, it held on better than most and didn’t witness the volatility that many small/micro cap renewable companies did.

The company currently has a yield in the high 2% range and a payout ratio in terms of earnings of 104%. This payout ratio looks high, however the dividend is well covered by cash flow at 16.09%.

Northland Power’s lack of dividend growth is one of the primary reasons it falls short on this list. Especially considering the company has ample room to grow it.

But, don’t let that fool you, this is still a very strong renewable energy stock, one that has actually faced some recent weakness due to seasonal and temporary issues with its windfarms.

NPI.TO 5 year performance vs the TSX:

TSE:NPI vs TSX Index

2. Brookfield Renewable Energy Partners (TSX:BEP.UN)

Brookfield Renewable Partners

Brookfield Renewable Energy Partners (TSX:BEP.UN) is another pure-play renewable company and is one of the fastest growing by a landslide. The company is expected to grow earnings at a rate of nearly 40% over the next 5 years.

To add to this, the company is already the fastest growing pure-play renewable energy company in the country with a compound annual growth rate of 10.71%.

The company has over 20,000 MW of capacity and just shy of 6000 facilities in North America, Europe, Asia and South America.

The company’s goal is to deliver shareholders annual returns in the 12-15% range. Thus far, it has more than accomplished its objective.

The company’s portfolio consists of wind, solar, storage facilities and distributed generation and most importantly, hydroelectric, which makes up over 62% of its portfolio. An interesting note, this is down from the 75% that was noted last time we updated this article, a sign the company is diversifying its asset base.

Back in March of 2020, the company entered an agreement to buy Terraform Energy in an all stock deal. Why are we still mentioning this year later? Well, this purchase made Brookfield Renewable Partners the biggest pure-play renewable energy company in the world.

The company pays a generous dividend, north of 3%, and the dividend accounts for only 80%~ of funds from operations.

Management has stated they want its dividend to grow by 5-9% annually over the next 5 years. This would be an increase over its past results, so it will be interesting to see how the company performs.

Renewable companies faced a significant correction in 2021, which will be evident in the performance chart below. In our eyes, all this did was make Brookfield Renewables more attractive.

In our last update of this piece, we had stated that valuation was one of the main reasons it was number 3 on this list. Well, we’ve bumped it up to number 2 now due to its recent correction.

The company also set up a Canadian corporation, BEPC, to be the “equivalent” to the partnership BEP.UN. This is primarily a tax consideration, one that you’ll need to figure out on your own which one is best for you.

Brookfield Renewables 5 year performance vs the TSX:

TSE:BEP.UN Vs TSX Index

1. Algonquin Power (TSX:AQN)

Algonquin

Algonquin Power & Utilities (TSX:AQN) is a diversified generation, transmission and distribution utility company. The company provides rate regulated natural gas, water, and electricity generation, transmission, and distribution utility services to over 1 million customers in the United States and Canada.

The company is engaged in the generation of clean energy through its portfolio of long term contracted wind, solar and hydroelectric generating facilities representing more than 1,600 megawatts (MW) of installed capacity.

There are a few things we really like about the company, but there’s one thing that stands out with Algonquin, and that is its growth rates.

Algonquin is one of the fastest growing utility companies on the TSX Index. In fact, the company grew earnings by 33% in 2020, and prior to a very unfortunate one-off event in Texas that ended up costing the company $55 million, analysts expected strong growth in 2021 as well.

They’ve changed their tune now, and overall it will be a flat or even shrinking year for Algonquin. But, it’s important to understand that this is very temporary, and we’d expect the company to get back to growth in 2022. In fact, the company expects to inject $9.4B USD into capital projects through 2025, adding more than 1.6 GW of capacity.

2021 aside, you’re not going to find many utility companies on the index that provide this kind of growth, especially one that offers a rock solid dividend to go along with it.

Algonquin, at the time of writing, yields north of 4%. In terms of earnings this works out to be a payout ratio of around 40%.

With a dividend growth streak of 10 years, the company has proven to be capable of consistently raising its dividend. In fact, Algonquin is one of the few Canadian Dividend Aristocrats that raised the dividend during the COVID-19 pandemic.

Algonquin is a top 5 holding in one of Canada’s biggest utility ETFs, and pays its dividend in US dollars, providing an even more attractive proposition to Canadian investors.

AQN.TO 5 year performance vs the TSX

TSE:AQN vs TSX Index




Author: Dan Kent

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Precious Metals

Collective Mining Stock Up 7.02% After Announcing Significant Discovery at Its San Antonio Project

This morning, Collective Mining (TSXV:CNL) has announced that is has made a significant grassroot discovery at the Pound target within the San Antonio…

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Plan View of the San Antonio Project and the Pound Target. Source: Collective Mining

This morning, Collective Mining (TSXV:CNL) has announced that is has made a significant grassroot discovery at the Pound target within the San Antonio project. This comes right on the heels of the recent discovery at the Donut target at its Guayabales property. 

One of three targets generated at the San Antonio project, reported assay results are from the recently completed Phase 1 reconnaissance drill program which tested two of these targets. 

Ari Sussman, Executive Chairman of Collective Mining commented in a press release: “The wide and continuous zones of mineralization intersected from surface at Pound are exciting and suggest we are either peripheral to or above a very large porphyry system. It is extremely pleasing that we have made brand new significant discoveries with the initial drill holes into grass root generated targets at both our Guayabales and San Antonio projects. With funding in place through 2022, the Company will become aggressive in the short-term with follow up drilling on our new discoveries and testing newly generated targets across the project portfolio.”

 

Highlights (Tables and Figures 1 to 5)

  • Continuous gold (“Au”), silver (“Ag”) and base metal (copper and molybdenum) mineralization has been intersected from surface, over the full core lengths of two reconnaissance diamond drill holes at Pound as follows:
    • 710 metres at 0.53 g/t gold equivalent from surface including 133 metres at 0.92 g/t gold equivalent from 470 metre depth (SAC-8); and
    • 750 metres at 0.41 g/t gold equivalent from surface including 187 metres at 0.59 g/t gold equivalent from 60 metre depth (SAC-6).
  • Importantly, both drill holes ended in mineralization with copper and molybdenum grades increasing at depth including:
    • 70 metres at 0.12% copper and 89 ppm molybdenum from 681 metre depth (SAC-6); and
    • 133 metres at 0.15% copper and 27 ppm molybdenum from 470 metre depth (SAC-8).
  • Pound mineralization is related to hydrothermal breccia and highly altered, quartz diorite intrusive which have been overprinted by late stage, polymetallic veins. Pound is located within a NE-SW trending corridor, as defined by mineralized breccia and altered intrusive, which is open in all directions and has been mapped to date over a strike length of approximately 1.3 kilometres.

     

  • The alteration system associated with Pound (advanced Argillic litho-cap) is related to the upper and peripheral portions of a porphyry system. The Company is currently reviewing its options for follow up exploration which would include initiating a Phase II diamond drill program and a high-resolution and deep penetrating IP survey as has recently and successfully been undertaken at the Guayabales project.

Table 1 Initial Diamond Drilling Results at the Pound Target

Hole ID From

(m)

To

(m)

Intercept

Interval

(m)**

Au

(g/t)

Ag (g/t) Zn

(ppm)

Pb

(ppm)

Cu % Mo % AuEq

(g/t)*

SAC-6 0 750 750 0.32 6 454 303 0.02 0.001 0.41
Incl. 60 247 187 0.50 9 274 63 0.00 0.000 0.59
And 681 750 70 0.41 2 79 11 0.12 0.009 0.65
SAC-8 0 710 710 0.40 6 352 130 0.04 0.001 0.53
Incl. 4 156 152 0.50 11 281 65 0.01 0.000 0.62
And 470 603 133 0.61 6 504 307 0.15 0.003 0.92

* AuEq (g/t) = (Au (g/t) x 0.95) + (Ag g/t x 0.013 x 0.90) + (Cu (%) x 1.83 x 0.92) + (Mo (%) x 4.57 x 0.92), utilizing metal prices of Cu – US$4.00/lb, Mo – US$10.00/lb, Ag – $20/oz and Au – US$1,500/oz and recovery rates of 95% for Au, 90% for Ag, 92% for Cu and Mo.

** a 0.1 g/t AuEq cut-off grade was employed with no more than 10% internal dilution. True widths are unknown and grades are uncut.

Geological Details of the San Antonio Project

The San Antonio (“SA”) Project is located in the Middle Cauca Gold Belt (“MCB”), 80 km south of Medellin and 50 km north of Manizales, Department of Caldas, Colombia. The MCB has been the most prolific belt for Miocene aged, porphyry and epithermal vein discoveries within Colombia and multi-million ounce discoveries in recent years include Buriticá, La Colosa, Nueves Chaquiro and Marmato.

The SA covers an area of 3,853 hectares and hosts multiple quartz diorite, diorite intrusive and breccia bodies of Miocene age which intrude basement schists and younger volcano-sedimentary packages.

Three specific grassroots exploration targets have been outlined by surface mapping, sampling, soil geochemistry, geophysical modelling, and shallow scout drilling. These are referred to as the Dollar, COP and Pound targets.

The Pound target is located in the northern portion of the project, is defined by multiple hydrothermal breccia bodies hosted within highly altered diorite and quartz diorite intrusive and overprinted by late stage, polymetallic veins. This zone of altered intrusive and breccia bodies trends NE-SW and has been mapped for a strike length of plus 1.3 kilometres. The zone is still open to the NE and SW. Outcrop exposures on the southern border of this target area include epithermal vein systems within a preserved lithocap of advanced argillic alteration which is superimposed on hydrothermal breccia bodies which grades laterally and downwards into intermediate argillic alteration assemblages. These rocks are interpreted to reflect preservation of the shallow levels of the porphyry system. The initial two reconnaissance diamond drill holes, SAC-6 and SAC-8, were drilled to respective downhole depths of 750 metres and 710 metres and intersected various hydrothermal breccia (pyrite matrix), altered quartz diorite intrusive and late-stage polymetallic veins. All the rock units have been hydrothermally altered with an earlier sericitic event overprinted by a strong, advanced argillic phase with various aluminosilicates. At depth, various diorite phases display disseminations and aggregates of chalcopyrite and molybdenite in contact with large blocks of metamorphic schist. The target remains open in all directions and further work is envisaged and will commence with a deep penetrating, high-resolution, induced polarization survey down to minimum depths of 900m below surface followed by a Phase II expanded diamond drilling program. Exploration targets include the mineralized breccia and a porphyry system postulated to occur below the lithocap.

The COP target is located 800 metres south of Pound and is defined by highly anomalous molybdenum (8 ppm to 108 ppm) and gold (up to 2.74 g/t) in soils in association with altered diorite porphyry and quartz veinlets over an area of 650 metres x 350 metres. The surface expression of the COP target is coincident with geophysical anomalies, at 200-300 metres depth which include a positive magnetic anomaly and IP chargeability and resistivity highs. COP has not been tested, other than a single historical borehole drilled just south of the target area, returned an intercept of 99 metres at 0.42 g/t gold and 4.9 g/t silver within unmineralized country rocks partially intruded by mineralized porphyry quartz veins at a depth of 608 meter downhole. The mineralization encountered in the drill-hole is interpreted to be leakage from the COP target directly to the north.

The Dollar target is located 400 metres south of COP. At surface various outcrop of quartz diorite porphyry host stockwork and sheeted quartz-magnetite vein systems associated with disseminated pyrite covering a 500-metre radius. Shallow scout drilling (6 holes) to cover the target area, identified the main mineralized porphyry. Holes SAC-1 to SAC-5 and SAC-9 returned gold intercepts of 0.1 to 0.3 g/t over various angled intercepts of 100 metres to 600 metres length within or across the various outcrops of the mineralized stockwork system. Based on the shallow intercepts a deeper hole was drilled into the mineralized stockwork and returned the intercepts outlined in Table 2 below. Gold, copper and molybdenum grades improve with depth and further deeper drilling is warranted, particularly as the project area is located approximately 300 metres above an accessible valley floor.

Table 2 Initial Deep Diamond Drilling Hole at the Dollar Target

Hole ID From

(m)

To

(m)

Intercept

Interval

(m)**

Au

(g/t)

Ag

(g/t)

Zn

(ppm)

Pb

(ppm)

Cu % Mo % AuEq

(g/t)*

SAC-7 0 621 621 0.22 3 207 49 0.01 0.001 0.26
Incl. 547 621 74 0.49 6 195 19 0.05 0.001 0.62

* AuEq (g/t) = (Au (g/t) x 0.95) + (Ag g/t x 0.013 x 0.90) + (Cu (%) x 1.83 x 0.92) + (Mo (%) x 4.57 x 0.92), utilizing metal prices of Cu – US$4.00/lb, Mo – US$10.00/lb, Ag – $20/oz and Au – US$1,500/oz and recovery rates of 95% for Au, 90% for Ag, 92% for Cu and Mo.

** a 0.1 g/t AuEq cut-off grade was employed with no more than 10% internal dilution. True widths are unknown, and grades are uncut.

The San Antonio project benefits from favorable topography with approximately 600 vertical metres of elevation change from the mountain peaks to the various flat lying valleys. Additionally, the topography is not overly steep, lending itself to multiple potential infrastructure development scenarios should an economic deposit be discovered in the future.

Source: Collective Mining

Figure 1: Plan View of the San Antonio Project and the Pound Target

Plan View of the San Antonio Project and the Pound Target. Source: Collective Mining

Figure 2: Plan View of the Pound Target

Source: Collective Mining

Figure 3: Cross Section of Pound Drilling

Source: Collective Mining

Figure 4: Core Photos: Pound: SAC-6 and SAC-8

Hydrothermal breccias, cemented by sericite, carbonates, and sulphides are overprinted by strong advance argillic alteration with pyrite and chalcopyrite and molybdenite mineralization. Source: Collective Mining 
Carbonate base metals with galena, sphalerite and pyrite mineralization. Microdiorites and quartzodiorites with secondary biotite alteration with magnetite chacopyrite and pyrite mineralization. Source: Collective Mining

Figure 5: Core Photos: Dollar, SAC-7. Clay Alteration Overprint Decreases With Depth

Quartz Diorites porphyry overprinted by strong Sericite alteration, quartz veinlets with magnetite, pyrite, and chalcopyrite. Source: Collective Mining
 
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

 

The post Collective Mining (TSXV:CNL) Announces Significant Discovery at Its San Antonio Project appeared first on MiningFeeds.

Author: Matthew Evanoff

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