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The Top 3 Stocks to Profit from the Booming Low-Emissions Industry

The global fight against climate change has only just begun, as countries push for lowered emissions around the world. And that means a revolution could…

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The global fight against climate change has only just begun, as countries push for lowered emissions around the world. And that means a revolution could be coming for the low-emissions stocks helping to meet these goals.

All as the United Nations warns, “The alarm bells are deafening, and the evidence is irrefutable: greenhouse‑gas emissions from fossil-fuel burning and deforestation are choking our planet and putting billions of people at immediate risk. Global heating is affecting every region on Earth, with many of the changes becoming irreversible.”

The release talks about how close the Earth is to the 1.5°C temperature gains above pre-industrial levels that nations agreed was a vital threshold in the 2015 Paris Agreement. Fears persist that going above that threshold could have dire consequences for the planet.

With that, countries around the world are pledging to reduce emissions.

The U.S. for example pledged cut to emissions by up to 51% by 2030. Europe pledged to cut emissions by up to 55% over the next 10 years. China wants to stop releasing emissions over the next 40 years. In an effort to meet these plans, countries want millions of electric vehicles on the roads. They also want to beef up their reliance on green energy, such as hydrogen.

As the world fights to avoid the worst-case scenarios, some of the best stocks to consider in the space include:

  • VanEck Vectors Low Carbon Energy ETF (NYSEARCA:SMOG)
  • iShares Low Carbon Target ETF (NYSEARCA:CRBN)
  • Plug Power Inc. (NASDAQ:PLUG)

Low-Emissions Stocks:  VanEck Vectors Low Carbon Energy ETF (SMOG)

Net Expense Ratio: 0.62%, or $62 per $10,000 invested annually

One of my favorite ways to diversify in hot sectors, at less cost is with an exchange-traded fund (ETF) like SMOG.

At around $160 a share, the SMOG ETF invests in renewable energy stocks, including companies focused on solar, hydrogen, lithium ion batteries, and electric vehicles for example. All of these could see explosive growth moving forward with strong government pushes.

Look at lithium, for example.  For the global community to achieve its goal of having millions of electric vehicles on the roads, we need a good amount of lithium.  Unfortunately, the world is already running into a supply issue, which could drive lithium prices and related stocks to the moon.

Hydrogen is another growing market to consider, especially with Goldman Sachs saying it could be worth 10 trillion euros, or around $11.7 trillion at current exchange rates, by 2050.

Some of the top SMOG ETF holdings include Tesla (NASDAQ:TSLA), Nio Inc. (NYSE:NIO), Vestas Wind Systems (OTC:VWDRY), Li Auto (NASDAQ:LI), and Nextera Energy (NYSE:NEE). That gives me easy access to a lot of these great stocks. For example if I were to buy 100 shares of the SMOG ETF, it would cost me about $16,000, and I’d have exposure to dozens of related stocks. If I were to buy 100 shares of just TSLA, it would cost me $70,700.

iShares Low Carbon Target ETF (CRBN)

iShares by Blackrock signSource: Sundry Photography / Shutterstock.com

Net Expense Ratio: 0.2%

With the world transitioning to a lower-carbon economy, another great way to gain exposure is with the CRBN ETF.  At $173 a share, this ETF offers diversification among stocks that aren’t completely dependent on fossil fuels.

In fact, some of the top stocks it offers exposure to include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), and Facebook (NASDAQ:FB) to name a few.

While the ETF does have global exposure to stocks in Japan, China, the U.K., Canada and France, nearly 60% is focused on the U.S. at this time. It’s also predominantly focused on information technology stocks, with 22.26% exposure. Financial stocks account for about 15%, with consumer discretionary in third at 12.24%.

Along the way, the ETF is tracking the results of the MSCI ACWI Low Carbon Target Index, which was designed to address “two dimensions of carbon exposure — carbon emissions and potential carbon emissions from fossil fuel reserves,” as noted by iShares Summary Prospectus.  By doing so, the Index seeks lower carbon exposure, as compared to the broader market.

Better, the CRBN ETF is still in a strong uptrend. Since bottoming out around $90 in March 2020, the stock has nearly doubled to $173. From here, I’d like to see it at $200.

Low-Emissions Stocks: Plug Power (PLUG)

Man hold a fuel dispenser with hydrogen on gas station. h2 combustion engine for emission free eco friendly transport.Source: Alexander Kirch / Shutterstock.com

The last time I weighed in on Plug Power, I said, “Plug Power could significantly benefit from the $12 trillion hydrogen boom. Governments all over the world could become far more reliant on it. Electric vehicles could help drive growth. It may even supply up to 25% of the world’s energy in the next 30 years.”

That was on April 26, as PLUG stock traded around $28. While the stock hasn’t move much since then, I’m still bullish, and believe PLUG could run back to $80, near-term.

As mentioned above, even Goldman Sachs says the industry could be worth $11.7 trillion over the next 30 years. Bank of America says it could be worth $11 trillion by 2050.

Better, “A McKinsey & Company report co-authored with industry estimated that the hydrogen economy could generate $140 billion in annual revenue by 2030 and support 700,000 jobs. The study also projected that hydrogen could meet 14 percent of total American energy demand by 2050,” as noted by The New York Times’ contributor Hiroko Tabuchi.

And analysts see a strong growth ramp for PLUG stock in particular. According to Seeking Alpha, earnings are expected to rise every year for the foreseeable future, turning positive in 2024 and continuing to rise from there. Revenue, likewise, is expected to see steady growth.

If the industry keeps growing — as expected — hydrogen stocks like PLUG could easily test $80.

On the date of publication, Ian Cooper 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.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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Navarre’s near miss points to big things at Morning Bill

Special Report: Navarre has good reasons to believe that it has uncovered a major porphyry gold-silver mineralised system at its … Read More
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Navarre has good reasons to believe that it has uncovered a major porphyry gold-silver mineralised system at its Morning Bill prospect in western Victoria.

Its maiden diamond drilling program at the prospect had returned variably broad to strong gold, silver and associated polymetallic mineralisation including peak assays of 10.1 grams per tonne (g/t) gold, 216g/t silver, 1.2% copper, 9.1% zinc and 4.8% lead in drill hole GDD003.

While these are significant results, the real kicker is that Navarre Minerals Limited (ASX:NML) thinks this hole has just clipped the edge of a target that was newly identified from a recently completed 3D induced polarisation (3DIP) survey.

If this is correct, then the best is yet to come, with the company planning to test this target with an aggressive drilling program later this year when the annual crop harvest has been completed and drilling crews can access farmers’ land.

“This is an exciting result, and we have many reasons to be highly optimistic about our

planned drilling at Morning Bill,” managing director Ian Holland said.

“The modelled 3DIP data has revealed a large, high-chargeability anomaly which we

believe may represent a porphyry target of approximately 900 metres long by 600

metres wide.

“Our recently completed, first ever diamond core testing of the prospect seems to have

clipped the edge of this target in drill hole GDD003. This drill hole also recorded many of Morning Bill’s strongest precious and base metal assay results to date below a mineralised footprint of 1,100m by 400m outlined by earlier air-core drilling.

“It is exciting times ahead as we progress towards our next phase of diamond core

testing at Morning Bill.”

Perspective view of Morning Bill looking southeast, showing silver assays in drilling (coloured discs) and the 3DIP target as a series of chargeability shells.

 

Morning Bill

Morning Bill was first discovered by Navarre in 2018 and is located in the same belt of rocks which hosts Stavely Minerals’ (ASX:SVY) Cayley Lode copper discovery at its nearby Thursdays Gossan deposit.  Shallow air-core drilling initially outlined a silver – gold – copper – lead and zinc mineralised system with a footprint of approximately 1,100 metres long by 400 metres wide.  The mineralisation is associated with abundant quartz and sulphide veining, thereby providing strong chargeability features, within broad zones of intensive sericite-carbonate-pyrite-chlorite alteration within the Stavely volcanic host rocks.

Mineralisation at Morning Bill is interpreted to be epithermal in style, situated above a larger porphyry target, which is exactly what the large, high chargeability 3DIP anomaly appears to represent.

Navarre’s upcoming 3,000m diamond drilling will initially target the upper 500 metres of the chargeability anomaly, with hole extensions likely if mineralisation and alteration continue at depth towards the modelled roots of the system.

The company is also completing a regional gradient array induced polarisation survey to map the broader Morning Bill prospect for additional basement targets hidden below the veneer of younger, unmineralised cover of up to 30m thickness.

Final results from this survey are expected before the end of September.

This article was developed in collaboration with Navarre Minerals, 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 Navarre’s near miss points to big things at Morning Bill appeared first on Stockhead.

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Resources Top 5: Battery recyclers, porphyry hunters, and an ‘extraordinary’ uranium discovery

Hannans has enjoyed sizable rerate after moving into battery recycling earlier this month 92E just chose the perfect time to … Read More
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  • Hannans has enjoyed sizable rerate after moving into battery recycling earlier this month
  • 92E just chose the perfect time to make a uranium discovery in Canada
  • 3200m of drilling has now kicked off at Culpeo’s flagship ‘Las Petacas’ copper project

Here are the biggest small cap resources winners in early trade, Monday September 20.

 

HANNANS (ASX:HNR)

(Up on no news)

This humble nickel explorer has enjoyed a sizable rerate after moving into the lithium-ion battery recycling game earlier this month.

Hannans wants to recover high purity metals from scrap and spent batteries in Norway, Sweden, Denmark and Finland – the region with the highest electric vehicle (EV) penetration rates in the world.

Subject to securing a feedstock source, Hannans decision on Stage 1 plant locations are expected 1st Quarter next year.

A decision on a Stage 2 plant – which would refine mineral rich ‘black mass’ into high purity nickel, cobalt, lithium and manganese chemicals – is expected in the 2nd half of 2022.

The $83m market cap stock is up 220% over the past month.

 

92 ENERGY (ASX:92E)

92E just chose the perfect time to make a uranium discovery.

A drill hole hit an “extraordinary” 5.5m of 0.12% U3O8 at the ‘Gemini Mineralised Zone’ (GMZ), part of the Gemini project in the Athabasca Basin, Saskatchewan.

Gemini is 27km away from McArthur River, one of the largest and highest-grade uranium deposits in the world.

The GMZ discovery is wide open, 92E says.

“To identify 5.5m of 0.12% U3O8 on the fourth drill hole of our inaugural drilling program is an extraordinary result for 92 Energy,” 92E managing director Siobhan Lancaster says.

“Importantly, the assays from this drill hole display similarities to other early holes at major Athabasca Basin uranium discoveries, in terms of grade, width, alteration types and intensity, and we look forward to the follow up drilling to determine the extent of the mineralisation.”

The $40m market cap stock is up 364% over the past month, and 410% on its April IPO price of 20c per share.

 

CULPEO MINERALS (ASX:CPO)

This newly listed explorer raised $6 million in its IPO to look for monster porphyries in the world’s richest copper jurisdiction, Chile.

Porphyries are responsible for ~60 per cent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.

3200m of drilling has now kicked off at its flagship ‘Las Petacas’ project, where copper has been defined over a ~6km stretch.

“With the ASX listing now complete, we have mobilised our highly experienced exploration team to site and look forward to reporting the results of this drill program which will test several targets over the 6km-long mineralised trend at our Las Petacas project,” Culpeo managing director Max Tuesley says.

“Our team on site is already finding new zones of visible surface copper mineralisation during drill pad construction which is really exciting.”

Outcropping visible copper mineralisation (green stuff) exposed in drill pad construction.

The $14.5m market cap stock was up 80% on its IPO price of 20c per share in early trade.

 

INFINITY LITHIUM (ASX:INF)

The Spain-based lithium play hasn’t allowed the potentially catastrophic cancellation of its project permit by local government prevent it from moving toward a production decision.

‘Bench scale’ (very small scale) met test work has now produced battery grade lithium chemicals – both carbonate and hydroxide — from the ‘San José’ project, INF said today.

A pilot-scale program, designed to confirm the scalability of the process emerging from bench scale test work, is being conducted in parallel.

The pilot scale test work is an integral part in the Feasibility Study for San José, INF says.

The $48m market cap stock is down 26% year-to-date.

 

RESOURCE DEVELOPMENT GROUP (ASX:RDG)

Former mining contractor RDG acquired the ‘Lucky Bay’ garnet project in WA earlier this year.

High-quality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets.

Today the stock announced an initial 29-year mine life for Lucky Bay, based on a high confidence ore reserve of 202 million tonnes at 5.4% heavy mineral (HM) with an average garnet grade of 86% in HM.

The project has a net present value (NPV) of $483 million and internal rate of return of 48%.

Both NPV and IRR are a measure of projects’ potential profitability – the higher above zero, the better.

“This is a significant milestone for the project and confirms the value that this project creates for RDG,” managing director Andrew Ellison says.



The post Resources Top 5: Battery recyclers, porphyry hunters, and an ‘extraordinary’ uranium discovery appeared first on Stockhead.

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BPM finds two walk-up drill targets at its Claw gold project

Special Report: BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold … Read More
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BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold Project in WA.

The company found the Lewi and Chickie anomalies by reviewing all the available open file data sets from exploration drilling completed by Reynolds Australia Metals more than 30 years ago.

The historical data included 138 air core and rotary air blast holes for a total of 3,882m targeting the same structure that hosts Capricorn Metals’ (ASX:CMM) Mount Gibson gold project.

“It is rare for a junior exploration company to acquire such highly prospective ground directly along-strike from a 2-million-ounce gold project,” BPM Minerals (ASX:BPM). CEO Chris Swallow said.

“Perhaps even rarer is to find walk-up RC drill targets from an initial data review.

“We have signed a contract for an aeromagnetic survey to be completed later this year.”

Chickie and Lewi anomalies

Key intercepts from the historic drilling at the Chickie anomaly include:

  • 11m at 0.1 parts per million gold (46-57m) including 1m at 0.54 parts per million gold (48-49m);
  • 1m at 0.24 parts per million gold (72-73m EoH); and
  • 10m at 0.17 parts per million gold (50-60m EoH).

At the Lewi anomaly, several anomalous values up to 90 parts per billion gold were reported within the weathering profile.

And the fresh rock – the potential primary source of mineralisation – was never tested below the regolith anomaly.

Plus, the Lewi anomaly is less than 1km from the Mount Gibson project.

Pic: The Claw gold project, with newly identified gold anomalies overlain prospective geology.

Rare exploration opportunity

The company is confident that the Claw project presents a rare exploration opportunity to cover the interpreted southern extension of the Mount Gibson shear zone.

Particularly since 80% of the tenement area regolith is covered and the project is largely unexplored.

The upcoming aeromagnetic survey is planned for Q4 once the Claw tenement has been granted in the coming weeks.

The company will then conduct an RC drilling program of around 3,000m, targeting primary gold mineralisation in the fresh rock.

 


 

 

This article was developed in collaboration with BPM Minerals, 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 BPM finds two walk-up drill targets at its Claw gold project appeared first on Stockhead.

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