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Shares in Denison, CanAlaska Rise as Uranium Price Surges

CanAlaska Uranium Ltd. [CVV-TSXV, CVVUF-OTCQB, DH7N-Frankfurt] said Thursday its joint venture partner Denison Mines Corp….

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CanAlaska Uranium Ltd. [CVV-TSXV, CVVUF-OTCQB, DH7N-Frankfurt] said Thursday its joint venture partner Denison Mines Corp. [DML-TSX] is set to start a 2,400-metre summer drilling program at the Moon Lake South uranium project in Saskatchewan.

The moves comes as the price of uranium has been propelled to its highest level since 2015 amid reports of a surge in buying by the Sprott Physical Uranium Trust [U.UN-TSX, U.U-TSX]. Sprott has amassed over 24 million pounds of uranium, sometimes buying more than 500,000 pounds in a single day, according to its website.

The spot price for U308 has moved to US$39 a pound from a low of US$18.50 in late 2016, recently sparked active trading in the uranium stocks.

On Thursday, CanAlaska eased 1.65 or $0.01 to 60 cents. The shares are trading in a 52-week range of 84 cents and 18.5 cents.

Denison eased 3% or $0.055 to $1.78 on volume of 2.4 million Denison shares trade in a 52-week range of $2.29 and 40.5 cents.

Under an option agreement with CanAlaska, Denison can earn a 75% stake in the Moon Lake South project. The project contains a 5.0-kilometre-long conductor corridor known as the Cr-3 conductor, which is located approximately 2.0 kilometres west of the K-trend, host to the Gryphon Deposit on Denison’s adjacent Wheeler River property.

Denison drilled one diamond drill hole near the southern boundary of the Moon Lake South project and confirmed the location of a new uranium target. The hole intersected an interval of fractured and friable sandstone with uranium mineralization immediately at the unconformity (0.1% U308 over 0.5 metres)

CanAlaska holds a 25% stake in the project and will fund the company’s share of the 2021 exploration program. Drilling is expected to begin on September 10, 2021. The program will evaluate four of the highest priority targets identified during surveys that were conducted in 2017 and 2020.

CanAlaska Uranium holds interests in approximately 24,000 hectares in Saskatchewan’s Athabasca Basin. The company is a project generator that is positioning itself for discovery success in the region.

Denison’s Wheeler River project is the largest undeveloped high-grade uranium project in the eastern portion of Saskatchewan’s Athabasca Basin. Proven and probable reserves at the site stand at 109.4 million pounds of U3O8. That includes 141,000 tonnes at 19.1% U3O8 or 59.7 million pounds in the Pheonix zone, and 1.26 million tonnes at 1.8% U3O8 or 49.7 million pounds in the Gryphon zone.

“The Moon Lake South project offers an intriguing set of targets that have been developed over the last number of years by our new joint venture partner, Denison,’’ said CanAlaska CEO Cory Belyk.

Energy & Critical Metals

Renewables Not So Reliable As US Hydropower Plunges 14%

Renewables Not So Reliable As US Hydropower Plunges 14%

The transition away from hydrocarbons is not a seamless as many hope. The latest data…

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Renewables Not So Reliable As US Hydropower Plunges 14%

The transition away from hydrocarbons is not a seamless as many hope. The latest data from the Energy Information Administration (EIA) shows a significant decline this year in hydropower generation amid historic droughts. 

The magical thinking about renewable energy and President Biden's calls for the U.S. power grid to be 100% clean by 2035 is a pipe dream. 

The problem with renewable energy is sustainability. California and states in the Pacific Northwest have found out that out the hard way this summer as droughts and back-to-back heat waves have led to a plunge in hydropower capacity. The region produces a bulk of U.S. hydropower capacity. 

EIA estimates U.S. hydropower plants will be 14% lower in 2021 than it was in 2020. Hydropower generation in the Northwest, which includes the Columbia River Basin and parts of other Rocky Mountain states, is expected to be 12% lower than the prior year. Hydropower generation in California will be down a shocking 49% in 2021 than in 2020.

The dry conditions have reduced water levels across large parts of the Columbia River Basin this summer, drought emergencies were declared in counties across Washington, Oregon, and Idaho. Some reservoirs in California halted hydropower generation due to declining water levels. 

Between March and April, hydropower generation in Washington and Oregon was 10% below the 10-year range. Over the summer, hydropower generation in these states moved back within range. But in California, hydropower generation stayed below the 10-year range as the Edward Hyatt Power Plant at Lake Oroville went offline due to low water levels last month. 

This summer, California's energy challenges show the state's aggressive push to slash carbon emissions by shifting to renewable energy has its disadvantages. The state's top grid operator, California Independent System Operator (CAISO), requested and was granted an emergency measure by the federal government to fire up natural gas generation plants to prevent blackouts amid the loss of some renewable energy sources. 

Maybe it's time for California to admit their "green" push has been a complete disaster, and the transition is not going to be as seamless as once thought. But wait, they already have:

The short-term strategy for California has been to fire up fossil fuel generation plants as renewable energy sources become unreliable. This is just one ugly truth about renewable power the progressives don't want you to hear. 

Tyler Durden Fri, 09/24/2021 - 22:20
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Energy & Critical Metals

Personal Tracking Devices Moving Toward A “Dangerous” New Era

Personal Tracking Devices Moving Toward A "Dangerous" New Era

Tracking devices can sometimes be useful: you can attach one to your phone or…

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Personal Tracking Devices Moving Toward A "Dangerous" New Era

Tracking devices can sometimes be useful: you can attach one to your phone or wallet and know where it is at all times, for example.

But the Bluetooth and ultra-wideband (UWB) tracking devices are moving towards a "dangerous new era", according to a new writeup by Android Authority

The devices are getting so small, prominent and widely available that risks of both stalking and general surveillance using them can no longer be ignored, the piece argues. 

It calls stalking the "biggest and most obvious threat". It can happen when a tracker, usually a thin tile-like piece of plastic, gets slipped into someone's bag, vehicle or clothing, tracking them everywhere they go. 

One such instance of stalking took place in 2018 when  a woman in Houston said she found a Tile planted inside the console of her car, which her ex was using to follow her. The ex was charged with a misdemeanor as a result.

Even overaggressive parents could take advantage of the trackers, the article argues: "An abusive husband could use trackers to follow their spouse to a shelter or the police. An overprotective mother could prevent their child from going anywhere but home or school."

Surveillance is another way trackers can be abused. Android Authority writes:

The more items a person tracks through first- or third-party apps, the more comprehensive surveillance can theoretically become. Let’s say you have a tracker on your backpack or laptop. If your phone and the tracker leave for a specific place every morning, it’s not hard to guess that the origin is your home, and the destination is an office or worksite. Placing another tracker on a TV remote immediately confirms your home location, and if you’re monitoring headphones or a personal electric vehicle, hackers can pick out some of your favorite haunts, like parks or the gym.

Hacking into a phone could even allow an attacker to figure out where in a building devices are kept, or where a specific person sits and sleeps, the report says: "In the wrong hands, this data could be used to plan burglaries or even murders."

Tracking apps could eventually even become the target of ransomware attackers, the piece suggests. And, with everything from shoes to cars in the future moving toward being trackable, you may not even know when or how you're being watched. 

Finally, the idea of government intrusion using such apps and trackers also becomes an obvious cautionary point. "More trackers translate into more data points for surveillance and suppressing dissent," the piece concludes.

Tyler Durden Fri, 09/24/2021 - 21:00
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Energy & Critical Metals

Nio Stock’s Slide Likely Isn’t Over as Broader Correction Looms

When I wrote about Nio (NYSE:NIO) last month, I argued that the risks that could send NIO stock lower outweighed factors that could help it bounce back.
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When I wrote about Nio (NYSE:NIO) last month, I argued that the risks that could send NIO stock lower outweighed factors that could help it bounce back.

Source: Robert Way / Shutterstock.com

The Chinese electric vehicle (EV) maker has numerous strengths, such as high projected rates of growth in its home market. It also has the potential to go global, first in Europe, and then possibly in other key markets like the United States.

However, I believe the company’s rich valuation and jurisdictional risk from China outweigh these positives. What’s more, the stock has taken a hit on concerns about the potential collapse of Chinese property development giant Evergrande (OTCMKTS:EGRNF).

In my opinion, NIO stock is nowhere near bottoming out and likely to move lower in the short term.

High Growth Far From Guaranteed

While NIO stock is down 47% from its all-time high of just below $67 per share, made in January, there’s still a good deal of enthusiasm surrounding the company.

The main driver of that enthusiasm is the company’s high projected levels of growth. Analysts forecast revenue will surge 120% this year and 65% in 2022.

Depending on how Nio’s expansion into Norway goes, growth from Europe could cause analysts to raise their growth forecasts. This could also help counter a growth slowdown in China. Nio faces stiff competition in the Chinese EV market from local rivals such as Xpeng (NYSE:XPEV), as well as from the likes of Tesla (NASDAQ:TSLA).

Despite the high-growth forecast, I do not expect sentiment for NIO stock to shift back to prior levels of bullishness for two reasons.

First, it’s not guaranteed that the company’s rate of growth will stay as high as it’s been in recent quarters. The global chip shortage resulted in Nio’s August vehicle deliveries falling by 25.9% on a month-over-month basis and caused management to cut its delivery outlook for the current quarter (ending Sept. 30). With the chip shortage expected to drag on, it may affect results in subsequent quarters as well. A Chinese economic slowdown, even if the Evergrande crisis gets under control, could also negatively affect sales growth going forward.

Second, the company’s European expansion could fail to deliver. If Nio stumbles in Norway, it may signal it doesn’t have what it takes to become a global EV brand.

Given these two big unknowns, I don’t see much to prevent NIO stock from tumbling if the broader market turns lower.

Downside Risk High if Appetite for Growth Stocks Wanes

With the odds of a correction climbing, it may be best to tread carefully with growth stocks. Whether caused by changes in Federal Reserve policy, or factors like slowing economic growth, it seems all the more likely that the runaway bull market is about to reverse course.

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In the event of a broader market pullback or correction, investors will shift out of speculative growth plays like NIO stock and into safer plays. This is likely to be the case even if the company meets expectations.

If Nio faces the double-whammy of disappointing results and a rocky stock market, look out below. While shares probably won’t head back to the low single-digits, investors can expect an outsized pullback compared to the broader market.

The Bottom Line on NOI Stock

Hopes for this popular EV maker run high, but the ongoing chip shortage and a slowing Chinese economy may stop Nio’s revenue growth in its tracks. And the risk of a pullback is being exacerbated by a weakening broader market.

I think there is a high probability that NIO stock trades back down to $25, or even $20 per share. So, it’s best to stay away for now.

On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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