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Canoo Reports Substantial Loss in 3Q 2021, Still Rallies

On November 15, Canoo Inc. (NASDAQ: GOEV), a start-up electric vehicle (EV) manufacturer, reported substantial 3Q 2021 net income and
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This article was originally published by The Deep Dive

On November 15, Canoo Inc. (NASDAQ: GOEV), a start-up electric vehicle (EV) manufacturer, reported substantial 3Q 2021 net income and cash flow deficits, yet the market applauded the results, as it has for virtually any EV news, bad or good, over the past month. Canoo reported a US$107.0 million operating loss and a US$71.8 million operating cash flow deficit in the quarter, each figure sequentially worse than US$104.3 million and US$54.9 million losses, respectively, in 2Q 2021.

The constructive news in the report was that Canoo plans to begin production of its Lifestyle Vehicle before 4Q 2022. The company had previously estimated a 4Q 2022 manufacturing start date. In some 2021 presentations, Canoo projected that 15,000 units would be made in 2023, but the company did not make any numerical commitments in the 3Q 2021 earnings release. The Lifestyle Vehicle’s targeted starting sales price is US$34,750 to US$49,950.

The key issue facing Canoo is its rapidly accelerating cash burn rate. In 3Q 2021, the company’s cash burn (defined as its operating cash flow deficit plus capital expenditures) totaled US$143 million, up from US$71 million in 2Q 2021, and US$66 million in 1Q 2021. Canoo projects cash operating expenses and capital expenditures in 4Q 2021 of US$95 – US$115 million and US$60 – US$80 million, respectively, so its 4Q 2021 cash burn could total US$155 – US$195 million.

By year-end 2021, the company’s cash balance could therefore be down to around US$250 million versus US$415 million at September 30, 2021 and US$702 million at year-end 2020. Phrased differently, Canoo’s full-year 2021 cash burn could amount to US$450 million. The company seems to need to raise additional equity by the end of the first quarter of 2022.

(in thousands of U.S. dollars, except for shares outstanding) 4Q 2021E 3Q 2021 2Q 2021 1Q 2021
Operating Income ($95,000) to ($115,000) ($107,006) ($104,346) ($97,070)
Operating Cash Flow ($71,803) ($54,870) ($53,948)
Capital Expenditures ($60,000) to ($80,000) ($71,457) ($16,545) ($12,108)
Cash – Period End $414,904 $563,565 $641,925
Debt – Period End $14,032 $13,941 $21,063
Shares Outstanding (Millions) 237.6 237.6 237.5

Canoo is one of three EV manufacturers formed via the SPAC process — Nikola Corp. and Lordstown Motors Inc. are the other two — that are being investigated by the U.S. Securities and Exchange Commission (SEC). The SEC is probing Canoo’s “operations, business model, revenues, strategy, customer agreements, and earnings,” but Canoo notes that, “the investigation does not indicate that it has concluded that anyone has violated the law.”

Investors have regained the enthusiasm for the EV space that they displayed in the second half of 2020 and early 2021. Then, as now, any negative news was brushed aside as the market chose to adopt an optimistic, long-term view. This positive investor stance could persist for some time.

Canoo last provided forward-looking projections at its June 17 Investor Relations Day. At that time, Canoo projected that EBITDA could be around US$5.0 million in 2023. Assuming that figure still remains possible, it is difficult to square it with the company’s current enterprise value of about US$2.1 billion. The market is clearly valuing Canoo with a very long-tern perspective.

Canoo Inc. last traded at US$9.52 on the NASDAQ.


Information for this briefing was found via Edgar and the companies mentioned. 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 Canoo Reports Substantial Loss in 3Q 2021, Still Rallies appeared first on the deep dive.

Author: Jim McFadden

Energy & Critical Metals

CONFIRMED: Sovereign’s Kasiya rutile is the good stuff – thick, continuous and high-grade

Special Report: Sovereign’s upcoming Kasiya project resource category upgrade is looking promising after infill drilling confirmed the thick, continuous…

Sovereign’s upcoming Kasiya project resource category upgrade is looking promising after infill drilling confirmed the thick, continuous and high-grade nature of its mineralisation.

Notable assays of rutile – the rarest and highest-grade source of titanium – from the first phase of results from the 148-hole program in the central zone of the Kasiya deposit are:

  • 14m grading 1.34% rutile including 2m at 1.61% rutile;
  • 14m at 1.13% rutile including 4m at 1.62% rutile;
  • 13m at 1.12% rutile including 2m at 2.11% rutile; and
  • 12m at 1.23% rutile including 2m at 2.07% rutile.

Sovereign Metals (ASX:SVM) noted the assays are in line with previous hand-auger drilling and continue to confirm widespread, high-grade mineralisation commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface.

“We are looking forward to the completion of the initial scoping study for Kasiya which will reveal the potential economics of this globally significant rutile discovery,” managing director Dr Julian Stephens said.

“This is timely as Sovereign completes its dual listing on the AIM Market of the London Stock Exchange in mid-December introducing new capital markets and generating greater exposure for the company and the strong fundamentals of the Kasiya project.”

The company is expected to be admitted to AIM on or about 14 December 2021 while the scoping study remains on track for completion in the current quarter.

sovereign metals
Kasiya core drilling plan over existing inferred resource block model (top block) with selected highlight hole results labelled. Pic: Supplied

Drill results

Sovereign had completed 244 core holes totalling 2,484m across the Kasiya and Nsaru rutile deposits between July and September using two push-tube core rigs achieving near-100% recovery through the soft, friable, mineralised regolith profile.

Besides the near-surface, high-grade mineralisation, the 148 core holes in the central zone also intersected moderate grade mineralisation generally grading 0.5% to 1.2% rutile that commonly extends from 5m to end of hole where it remains open at depths in numerous drill-defined, northeast-striking zones.

It is currently interpreted that these deeper, northeast-striking zones of rutile mineralisation should extend to the base of the soft, friable saprolite estimated to be about 25m depth.

The company will consider testing this deeper rutile mineralisation with sonic or air-core drilling in the 2022 field season.

Additionally, a comprehensive graphite assaying program has been completed over the course of the year to systematically assay all hand-auger and core samples.

This has shown low-grade, coarse-flake graphite averaging about 1.2% total graphitic content throughout the entire Kasiya rutile resources area.

Higher grade graphite occurs at depths of more than 5m in association with the northeast-striking zones of deeper rutile mineralisation.

Metallurgical testwork on a potential graphite by-product from Kasiya is now near completion and the company is confident of including a coarse-flake graphite by-product in the upcoming scoping study.

Results are pending for the remaining 96 holes from Kasiya and Nsaru.

 


 

 

This article was developed in collaboration with Sovereign 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 CONFIRMED: Sovereign’s Kasiya rutile is the good stuff – thick, continuous and high-grade appeared first on Stockhead.





Author: Special Report

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Energy & Critical Metals

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

An investment firm founded by Hunter…

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

An investment firm founded by Hunter Biden facilitated a $3.8 billion purchase of an American-owned cobalt mine by a Chinese conglomerate, placing a key resource used in the manufacture of electric car batteries under foreign control, according to the New York Times.

The mine, formerly owned by Freeport-McMoRan and located in the Democratic Republic of Congo, was purchased in 2016 after Chinese mining outfit China Molybdenum announced a partnership with the Biden-founded Bohai Harvest RST (BHR) – with the Chinese contributing $2.65 billion and BHR contributing $1.14 billion to buy out a minority stakeholder, Lundin Mining of Canada. The money for Bohai’s share came “entirely from Chinese state-backed companies,” according to the report.

China Molybdenum lined up about $700 million of that total as loans from Chinese state-backed banks, including China Construction Bank. BHR raised the remaining amount from obscure entities with names like Design Time Limited, an offshore company controlled by China Construction’s investment bank, according to the Hong Kong filings.

Before the deal was done, BHR also signed an agreement that allowed China Molybdenum to buy BHR’s share of the mine, which the company did two years later, the filings show. That purchase gave China Molybdenum 80 percent ownership of the mine. (Congo’s state mining enterprise kept a stake for itself.) -NYT

In 2019, when Hunter controlled 10% of the firm through Washington-based Skaneateles, LLC, BHR sold its stake. As the Times notes, Chinese corporate records show Skaneateles is still part owner of BHR, however Biden attorney Chris Clark said that Hunter “no longer holds any interest, directly or indirectly, in either BHR or Skaneateles.”

According to a former BHR board member, Hunter and the other American founders were not involved in the mine deal, and the firm only earned a ‘nominal’ fee on the deal. The proceeds allegedly went towards the firm’s operating expenses, and was not distributed to its owners.

That said, the Times does raise a good point: “It is unclear how the firm was chosen by China Molybdenum.”

A dozen executives from companies involved in the deal, including Freeport-McMoRan and Lundin, said in interviews that they were not given a reason for BHR’s participation. Most of the executives also said they were unaware during the deal of Mr. Biden’s connection to the firm.

Paul Conibear, Lundin’s chief executive at the time, said it was made clear that China Molybdenum was leading the transaction even though the buyer of Lundin’s stake was BHR.

I never really understood who they were,” Mr. Conibear said of BHR. -NYT

So – Hunter Biden’s investment firm shows up to funnel money from Chinese state-owned firms into the cobalt deal, and nobody involved knows why

Tyler Durden
Sun, 11/21/2021 – 18:00

Author: Tyler Durden

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Energy & Critical Metals

Alpha Lithium Drills 351 mg/L Lithium Brine At 352-Metre Depth At Tolillar Salar

Alpha Lithium Corporation (TSXV: ALLI) announced Friday morning results from its original six-well program at its Tolillar Salar located in
The post Alpha…

Alpha Lithium Corporation (TSXV: ALLI) announced Friday morning results from its original six-well program at its Tolillar Salar located in Salta Province, Argentina. The highlight encounter is 351 mg/L lithium brine over 352 metres.

The company has drilled six exploratory holes to date, with five production holes drilled to depths of between 78 and 352 meters. Results from the program include:

  • WBALT5: 351 mg/L lithium brine over 352 metres
  • WBALT7: 345 mg/L lithium brine over 352 metres
  • WBALT3: 210 mg/L lithium brine over 127 metres

The drilling program is part of the company’s initial exploration campaign of the 27,500-hectare property. according to the mining firm, both of the campaign’s objectives are achieved: improving the conceptual hydrogeological model of the salary and determining lithium grades and hydraulic parameters.

Based on the results so far, the firm has undertaken to add two additional production wells and two fresh-water wells on the property.

Alpha Lithium last traded at $1.21 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. 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 Alpha Lithium Drills 351 mg/L Lithium Brine At 352-Metre Depth At Tolillar Salar appeared first on the deep dive.







alpha lithium corporation

Author: ER Velasco

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