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Revival Gold To Raise $10 Million Via Private Placement

Revival Gold (TSXV: RVG) this morning announced its latest round of financing. The firm is looking to conduct a non-brokered
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This article was originally published by The Deep Dive

Revival Gold (TSXV: RVG) this morning announced its latest round of financing. The firm is looking to conduct a non-brokered private placement, which will see a new institutional investor take an interest in the company.

The financing will see the company look to raise $10.0 million via the sale of units at a price of $0.65 per unit. Each unit contains one common share and one half of a common share purchase warrant. Warrants are valid for a period of two years from the date of issuance and contain an exercise price of $0.90 per share.

An over-allotment option has also been included in the financing, which could increase to total gross figure to $11.7 million.

As part of the financing, Donald Smith Value Fund LP will take a “cornerstone” position in the company. However, no further information was provided on the size of the position being taken, or if it will meet early warning disclosure minimums.

The financing is expected to close January 25.

As of September 30, Revival Gold reported a cash balance of $2.9 million, while the quarter saw a total of $3.0 million in net cash used in operating activities, indicating that the firm by this point is likely low on cash overall.

Revival Gold last traded at $0.64 on the TSX Venture.


Information for this briefing was found via Sedar, and Revival Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Revival Gold To Raise $10 Million Via Private Placement appeared first on the deep dive.


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Author: Jay Lutz

Energy & Critical Metals

Here’s What Triggered Today’s Selloff

Well, the stock market sure woke up on the wrong side of the bed this morning!

Source: ventdusud / Shutterstock.com

After a long holiday weekend, investors…

Well, the stock market sure woke up on the wrong side of the bed this morning!

Source: ventdusud / Shutterstock.com

After a long holiday weekend, investors were greeted with a more than 1% drop in the major indices. The NASDAQ was hit particularly hard, down as much as 2% earlier in the trading day. The fact of the matter is Wall Street was cranky because the 10-year Treasury surged to a two-year high today.

The 10-year Treasury yield now sits at about 1.85%. That’s up from 1.51% on December 31, 2021. That’s a fairly dramatic rise in the 10-year Treasury, and it’s a big reason for why we saw a massive rotation out of the tech-heavy index today.

The financial media would have you believe higher rates will hurt tech stocks, but that’s simply not true. Here’s the reality: The global pandemic accelerated technological change, with many folks working and studying remotely. And this technological change boosted productivity in the U.S., with several industries leading the productivity miracle. So, tech stocks, especially semiconductor companies, will have some of the best quarterly results in mid-January through mid-February. And wave-after-wave of positive results will not only help these stocks firm up but also drive their shares higher. It’s one reason why I’m betting big on 5G.

Tech stocks aside, this earnings season should also trigger rebounds in fundamentally superior stocks that were hit during today’s selling. I expect Wall Street to become laser-focused on earnings over the next five weeks, and after all the reports are out, we’ll see who’s left standing. I anticipate the winners will be those with superior fundamentals, i.e., my Breakthrough Stocks. My Buy List companies have 57.2% average forecasted annual sales growth and 231% average forecasted annual earnings growth. They should also issue positive forward guidance.

Now, due to more difficult year-over-year comparisons, my Breakthrough Stocks are actually “decelerating” from the previous 78.2% average annual sales growth and 724.8% average annual earnings growth. However, my Buy List stocks are still set to achieve earnings and sales growth well above the average S&P 500 company. According to FactSet, the S&P 500 is anticipated to achieve 21.8% average earnings growth and 12.9% average revenue growth.

The Bellwether Steps Up to the Earnings Bat

We’ve heard from a few companies so far, including the Big Banks (I’ll review their quarterly results later in the week, so stay tuned for that!), but I’m most excited to hear from Alcoa Corporation (NYSE:AA), which will report its fourth-quarter earnings results tomorrow afternoon. As you probably know, Alcoa is known for establishing the aluminum industry more than 130 years ago. The company primarily manufactures and sells bauxite, the primary source of aluminum, as well as alumina, aluminum, cast products, energy and rolled products. Alcoa actually is one of the largest bauxite producers in the world with seven active mines, as well as is the leading producer of alumina.

Alcoa is also considered a “bellwether” for earnings season, as it’s a stock investors have turned to in the past as an indicator for how the coming earnings season will shake out. Currently, analysts expect Alcoa’s earnings to surge 653.8% year-over-year to $1.96 per share, up from earnings of $0.26 per share a year ago. Revenue is estimated to climb 40.5% year-over-year to $3.36 billion.

I should note that analysts have lowered earnings estimates in the past three months, following the company’s announcement that it will temporarily halt production at its Spain plant due to rising energy costs. Alcoa noted that the production halt would reduce earnings by $0.32 per share, which is why analysts have lowered earnings estimates initially. Interestingly, in the past week, analysts have increased estimates by nearly 11%.

Personally, I believe Alcoa will post impressive fourth-quarter results. The reality is that aluminum prices are trekking higher again. The World Bank revealed that aluminum prices jumped from $2,004 per tonne in January 2021 to more than $2,900 per tonne in January 2022. Prices are anticipated to rise 6% this year, thanks to ongoing demand from the auto industry, rising energy prices and supply shortages.

Suffice it to say, Alcoa is the stock to watch tomorrow.

But for today, don’t be discouraged by today’s wild market gyrations. The reality is that earnings work 70% of the time, so given that earnings momentum has tapped the brakes a bit due to tougher year-over-year comparisons, I think companies that achieve better-than-expected results will see their shares climb higher as investors celebrate their results.

It’s why now is the time to make sure you’ve filled your portfolio with fundamentally superior stocks. If you’re not sure where to look, you might want to review my Breakthrough Stocks Buy List. As I mentioned, my stocks should post much strong earnings than the average S&P 500 company. I should also note that I recently created a special model portfolio I call the 5G Hypergrowth Portfolio: Six Stocks to Incredible Wealth. Each company is directly in line to profit from 5G.

I will be recommending another 5G stock on Thursday, after the market close. So, if you join Breakthrough Stocks today, you’ll have access to this new recommendation as soon as it’s released.

For full details, click here.

Sincerely,

Louis Navellier

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Alcoa Corporation (AA)

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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Drilling proves Strickland’s theory about Dusk til Dawn gold mineralisation

Special Report: The balance of results from drilling at Dusk til Dawn have all but confirmed Strickland’s reinterpretation of how … Read More
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The balance of results from drilling at Dusk til Dawn have all but confirmed Strickland’s reinterpretation of how mineralisation at the prospect really looks like.

Results such as 10m grading 3.1 grams per tonne (g/t) gold from 314m and 11m at 2g/t gold from 249m including 5m at 3.2g/t gold have extended gold mineralisation further down dip.

Previous results from the same drill program had yielded hits such as 33m at 3.6g/t gold from 61m and 24m at 1.6g/t gold from 196m including 12m at 2.5g/t gold.

More importantly, all holes have intersected the modelled alteration zone where Strickland Metals (ASX:STK) had predicted, a strong indicator that its understanding of Dusk til Dawn mineralisation is down pat.

It also means that further discoveries in the surrounding terrain are very likely given the proven effectiveness of the company’s current set of geophysical and geochemical techniques used at the prospect.

This means that there is significant potential for the discovery to scale-up given that there are up to 20 lookalike targets in two corridors within roughly 10km strike of Dusk til Dawn.

“The drilling has confirmed the company’s reinterpretation of the mineralisation at the prospect, with all holes intersecting the targeted zones where predicted. Remodelling of the mineralisation is underway, with an updated Mineral Resource expected in early February 2022,” chief executive officer Andrew Bray said.

“Most excitingly, our growing understanding of the mineralisation in this area opens up a tremendous opportunity to intersect repeats of this style of mineralisation.”

He added that six of the lookalike targets were drilled prior to the reverse circulation program concluding in December 2021, with all holes intersecting the targeted alteration zones.

However, the ongoing laboratory delays mean that results from these initial holes are not due until the middle of February 2022.

Dusk til Dawn cross section. Pic: Supplied

And now for the next act

Work is now underway to remodel the existing resource of 108,900oz of contained gold.

Strickland believes that correctly orientating the mineralised plunge will potentially lead to a material increase in both grade and tonnage.

This remodelling should also demonstrate the excellent potential to build a substantial mineralised inventory in the immediate surrounding region should the nearby ‘look-a-like’ targets also be mineralised.

The updated resource estimate is expected to be announced early in February 2022.

 


 

 

This article was developed in collaboration with Strickland Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Drilling proves Strickland’s theory about Dusk til Dawn gold mineralisation appeared first on Stockhead.


Author: Special Report

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Precious Metals

Precious Metals Outlook 2022

Summing up the performance of last years precious metals prices starting with…

By Rod Blake

Summing up the performance of last years precious metals prices starting with gold which was off by $76 or 4% from its highs by year end 2021 at US$1,822. Silver and platinum group investors might use the more descriptive ‘damn’ to sum up their year as silver lost 12.5% to US$23. Platinum fell by 10% to US$962 and palladium dropped by almost 18% to US$1,928. And as boring or disappointing as these numbers are they look even worse when compared to their base metal cousins such as copper that gained over 25.5% to US$4.42, nickel up 26% to US$9.47 and zinc that rose by 31.5% to US$1.63. And even these pale when compared to the petroleum sector where crude oil advanced by almost 59% to US$75.21 and natural gas gained 47.5% to US$3.76. Then to really feel bad compare precious metals in 2021 to the electric vehicle battery mineral lithium that  rose by 142% to US$77 or its more stable compound lithium carbonate that soared up by 393% to US$16.67.

In early January, I saw that the price of gold, at about US$1,900, was forming a potentially very bullish ‘Flag or Pennant ‘ formation in advance of its usual New Year’s rally. Unfortunately this rally was short-lived and actually failed as gold peaked shortly after at US$1,955 before drifting down to the year’s low of US$1,700 in early March. This was followed by another ‘Dead Cat’ rally in June that saw the yellow metal rise once again to US$1,900. But this rally failed to take out the previous US$1,955 high and the yellow metal quickly settled back down once again to US$1,750. And let me caveat the rest of this column by saying upfront that my outlook on precious metals in 2021 wasn’t quite what I anticipated on its upside performance. Especially for gold which I thought was poised for a very good year. In July I wrote that gold seemed to have formed a base above $1,700 and this base along with the traditional second half of the year rally could push gold to new highs. Unfortunately, the second half rally turned into more of a recovery and gold bullion finished 2021 at the above mentioned US$1,822. For whatever reason – the two strongest seasons for gold bullion failed to materialize in 2021. Meanwhile silver held US$26 – US$28 for the first half of the year but eventually fell along with gold. Platinum/Palladium followed suit but their price drop was accelerated by the chip shortage induced drop in new car sales and by extension demand for new catalytic convertors.

In short, 2021 was a very disappointing year for precious metals and especially gold. And not just because gold lost a nominal 4%. No, the gold market was so disappointing  because early in the year gold seemed to have the planets aligned with conditions for a good if not exceptional year ahead. Conditions that could see gold possibly take out the 2020 record high of US$2,075. Record low interest rates and the markets awash in Covid induced government money were the two most obvious conditions and those alone could have propelled gold higher. But this failed to happen. Looking back, it seems the giant NASDAQ and S&P 500 markets, which were continually achieving new record highs, would not let go of their winners and attracted the vast amount of this new money that otherwise might have migrated to gold. Any dips in those markets quickly brought in more investors to ‘Buy the Dips’ and drive those markets higher again. Any seasoned observer of the markets knows that buying begets more buying and these markets had it in spades. Now add to this the money that went into the new crypto currency markets. Much like the high flying cannabis markets of a few years ago, the crypto stocks also rose to new highs in 2021, With these markets reaching higher highs it is not too hard to imagine investors ignoring precious metals that not only couldn’t make new highs but at best could not hold on to previous gains.

Now, against last year’s backdrop, how do I think precious metals will do in 2022? Time is an amazing investing tool. Time gives one the advantage of stepping away from the immediate actions or emotions and let’s one look at the bigger and sometimes clearer picture. Now take gold. And although 2021 was disappointing, the year was still interesting, and taken as whole may have given some insight to the year ahead.  If you can, take a look at a 1-year chart of gold bullion. From the early in the year high of US$1,955 and the resulting low of US$1,700, gold has tracked out a wedge pattern of descending highs and more importantly, ascending lows. Currently, as I write this in early January,  the overhead resistance has descended to about US$1,825 and the ascending low is risen to about US$1800. If this pattern continues then the rising lows should meet the descending resistance sometime in the near future. From there gold either breaks thru to test the 2021 highs or it fails once again and falls to new lows. Recent monetary events suggest that gold bullion should be going lower. The U.S. Federal Reserve (Fed) has stated that 2022 will see rising interest rates and a tightening of the money supply. This announcement should be detrimental for gold, but gold is holding at or near US$1,800. It is said that a commodity (or stock) that doesn’t go lower in the face of negative events wants to go higher. With this in mind I’m looking for gold to meet and break thru the overhead resistance sometime in the first quarter. And the extended basing pattern suggests the measured move above this resistance could have some strength to it so that the 2021 high of $1,955 could be put to the test once again later in the year.

Silver usually follows  gold, but if it starts to outperform gold then we’ll know that a real precious metals bull market has begun. Platinum/Palladium should also follow gold but will also get the benefit of more demand as the auto industry once again gears up with renewed shipments of those all important chips. Based on last year’s disappointments, if gold bullion can take out US$1,955, silver recover to US$28,and Platinum/Palladium get back to US$1,300 & US$3,000 respectively then 2022 will be considered a good year for precious metals.

The above 2022 outlook is based on historic and current market conditions and supported by charts. But then there are the intangibles that ebb and flow and can effect markets during the course of the year. Three of these are the above mentioned NASDAQ, S&P 500 and crypto markets. To me these markets seem very overextended and are supported by the current ‘Buy the Dips’ mindset. Should this change and these markets give up some of their gains and that money comes to the precious metals markets then perhaps a run above the 2021 highs could be in the works. Based on my past forecasting performance, I won’t officially go that far, but I’ll be secretly watching and waiting for it to happen.

Meanwhile, looking forward at producing and early-stage exploration companies, Dynacor Gold Mines Ltd. has been successful at the sustainable development of artisanal mining communities while offering investor an attractive 0.83 cent monthly dividend, up from 0.67 cents and on an annual basis to 10 cents from 8 cents per common share starting in this month.

And Aurwest Resources Corp., a Canadian-based junior resource company focused on the acquisition, exploration, and development of gold properties in Canada.

Dynacor Gold Mines Inc. [DNG-TSX} is an alternative gold company investment with a proven and profitable business model that involves the processing of ore purchased from the ASM (artisanal small-scale mining) industry in Peru.

Dynacor aims to be an environmentally and socially responsible industrial gold ore processor that is committed to shareholder returns through a monthly dividend stream and stock buyback program.

The company has US$17.8 million in cash, is debt free and has guided investors to anticipate $185-$190 million in gold sales for 2021. It recently declared a 25% increase in the monthly dividend payment of $0.83 cents per common share.

Dynacor operates in Peru, where its management and processing teams have decades of experience working with artisanal miners. Through a subsidiary called Veta Dorada, the company buys ore form Artisinal Small Miners who are enlisted in the formalizing process of the Peruvian government. The Veta Dorada Plant has a processing capacity of 340 TM/D and is located in the Chala District, Arequipa, Peru.

The company has implemented a compliance system for money laundering prevention and terrorism financing, focused on risks through which acts of corruption and money laundering are also prevented. “In our production areas, there is no child or forced labour,” Dynacor has said. Gold is exported from Lima airport to Switzerland.

As of June 2021, the company increased its processing capacity to 430 TM/D from 340 TM/D.

In the third quarter ended September, 2021, the company reported a net profit of $3.5million or $0.09 per share, an increase from $1.25 million or $0.03 in the same period last year. Sales of $61.9 million in the third quarter marked an increase from $24 million in the year ago period.

On January 22, 2022, Dynacor shares were trading at $3.04 in a 52-week range of $3.29 and $1.77, leaving the company with a market cap of $118 million, based on almost 39 million shares outstanding.

Aurwest Resources Corp. [AWR-CSE] is a Calgary-based junior exploration company that offers low risk exposure to early stage precious and base metal exploration in Newfoundland and British Columbia.

The company has option agreements, enabling it to earn a 100% interest in the Paradise Lake and Stony Caldera projects, covering a 478 square kilometre package of gold exploration licenses located within the emerging central Newfoundland gold district.

Paradise Lake consists of three separate claim blocks. Collectively the properties cover 45 kilometres of strike length of the regional scale structure hosting Marathon Gold Corp.’s [TSX:MOZ, OTC:MGDPF – Mkt cap C$755M] Valentine Gold Project, New Found Gold Corp’s [TSX:NFG – Mkt cap C$1.28B] Queensway project and Sokoman Minerals Corp.’s [TSX:SIC – Mkt cap C$67.1M] high-grade Moosehead gold discovery.

Aurwest has received government permits to complete a 10,000-metre diamond drilling program at Paradise Lake.  The program will consist of two phases, with the first phase consisting of a 3,000-meter program beginning in late January, 2022 (see news release dated January 6, 2022).

The main target is a 3.0-kilometre-long trend of high-grade gold in angular pyritic boulders of quartz breccia.

“We have concluded our preliminary 2021 exploration program at Paradise Lake with several high priority targets being identified,’’ said Aurwest President and CEO Colin Christensen.  “This area has had no historical drilling and is situated along the Cape Ray Valentine Lake structure with up to 14.22 g/t gold at surface,’’ he said. “We’re looking forward to joining the few other companies who are currently drilling in the area, and the potential re-valuation of our share price as we move ahead.”

In British Columbia, the company also holds a 100% interest in the 24,533-hectare Stellar copper/gold project, plus an additional 3,761 hectares of contiguous claims in the now 100% owned Stars property, which includes an early-stage porphyry copper-molybdenum discovery. In 2019 the previous operator had drilled 16 holes over 6, 472 meters, with a selected significant drillhole DD18SS004 assaying 0.45% Cu, 0.045g/t Au, and 0.0048% Mo over 204 meters. This district scale play lies on the Nechako Plateau, 25 kilometres southwest of Houston and 58 kilometres north of Imperial Metals Corp.’s (III-TSX) Huckleberry Copper Mine.

On January 18, 2022, Aurwest shares closed at $0.13 and trade in a 52-week range of 22 cents and $0.065 leaving the company with a market cap of just under $12.8 million, based on 98.3 million shares outstanding.

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Author: Resource World

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