Connect with us

Energy & Critical Metals

enCore Energy and Azarga Uranium merging

  VANCOUVER – enCore Energy Corp. [EU-TSXV; ENCUF-OTCQB:ENCUF] and Azarga Uranium Corp. [AZZ-TSX; AZZUF-OTCQB; P8AA-AZZUF] have entered into a definitive…

Share this article:

Published

on

This article was originally published by Canadian Investor

 

VANCOUVER – enCore Energy Corp. [EU-TSXV; ENCUF-OTCQB:ENCUF] and Azarga Uranium Corp. [AZZ-TSX; AZZUF-OTCQB; P8AA-AZZUF] have entered into a definitive arrangement agreement whereby enCore will acquire all of the issued and outstanding common shares of Azarga pursuant to a court-approved plan of arrangement.

The transaction consolidates an industry leading pipeline of exploration and development staged in-situ recovery focused uranium projects located in the United States, including the licensed Rosita and Kingsville Dome past producing uranium production facilities in South Texas, the advanced stage Dewey Burdock development project in South Dakota, which has been issued its key federal permits, the PEA-staged Gas Hills Project located in Wyoming, and a portfolio of resource staged projects throughout the United States. The combined company will possess a uranium resource base of 90.0 million pounds in the measured & indicated category, 9.9 million pounds in the inferred category, as well as 68.4 million pounds in the historic category.

Under the merger terms, Azarga shareholders will receive 0.375 common shares of enCore for each Azarga common share held. The Exchange Ratio implies consideration of $0.71 per Azarga common share based on the closing price of the enCore common shares on the TSX Venture Exchange on September 3, 2021.

Additionally, the exchange ratio will be subject to an adjustment mechanism at the closing of the transaction. The closing exchange ratio shall be equal to the greater of the exchange ratio; or an exchange ratio calculated as $0.54 divided by enCore’s 15-day volume-weighted average price prior to the closing of the transaction, subject to a maximum closing exchange ratio of 0.49 common shares of enCore for each share of Azarga outstanding.

The merger will create a top-tier American uranium ISR mining company with multiple assets at various stages of development and will have two licensed ISR production facilities and multiple potential satellite exploration and development projects in South Texasand an advanced stage Dewey Burdock development project in South Dakota with key federal permits issued.

There is a recently published PEA for the Gas Hills project in Wyoming. There is a large uranium resource endowment in New Mexico, including the Marquez-Juan Tafoya project, for which a recent PEA was published and the Crownpoint and Hosta Butte project.

The surviving entity is well positioned to benefit from America’s nuclear renaissance, which boasts bi-partisan political support. The management team and board has unrivaled experience in the permitting, development, and mining of ISR uranium deposits in the USA.

 

Energy & Critical Metals

SSE Renewables and Microsoft launch puffin monitoring pilot

UK energy company, SSE Renewables has launched the Flying Squad initiative to monitor and protect puffins around the Scottish coastline.
The post SSE…

Share this article:

UK energy company SSE Renewables has launched the Flying Squad initiative to monitor and protect puffins around the Scottish coastline.

The initiative will see the energy company team up with Microsoft, tech firm Avanade and NatureScot to monitor puffin numbers.

The technology used for the initiative has recently been tested during the seabird’s breeding season on the Isle of May in the Firth of Forth.

Four cameras in position on the island gathered footage and automatically detected and counted the birds until they recently left the island.

Simon Turner, CTO, Data & AI, at Avanade: “As the investment in renewable energy continues, it’s even more important to ensure that developments, like wind farms, are not having any detrimental environmental effects.

Have you read?
Binder jetting 3D printer to streamline production of GE’s Haliade-X turbines
More wind turbines could mean less sleep for locals

“With SSE Renewables, we saw an opportunity to use camera and AI technology to more accurately and efficiently, and less invasively monitor the wellbeing and breeding habits of the puffins that are attracted to this particular area on the Isle of May.”

If successful it is expected the technology will be used for a number of species recognition projects around SSE sites including hydropower stations and wind farms.

Rachel McEwen, SSE’s Chief Sustainability Officer, said: “…Our assets can have far-reaching consequences across a wide range of issues, from reducing the effects of global climate change to supporting local habitats.

“The impacts of our hydro and wind farm operations and our transmission and distribution networks need to be actively managed and what initiatives like the Flying Squad show is that there are also incredible opportunities to be had in protecting and enhancing existing and new habitats as we harness natural resources such as water and wind for renewable energy generation.”

James Scobie from SSE’s Flying Squad. Credit: SSE

James Scobie from the Flying Squad said: “The implications for the Microsoft/Avanade technology are huge. It’s our ultimate aspiration that this incredible cutting-edge technology could be deployed in a variety of different settings to monitor species of interest in the future.”

Erica Knott, NatureScot Marine Sustainability Manager said: “There are exciting possibilities for further development, for example, to track activity at individual breeding burrows or overcome some of the trickier aspects of seabird monitoring, such as remoteness and weather, at other sites.

“This would enhance our understanding of seabird populations and their interactions with human activities, helping us to advise on the future management and monitoring of marine developments, in particular, to secure renewable energy to address climate change while also safeguarding biodiversity.”

Recently, SSE and Microsoft signed a memorandum of understanding (MOU), establishing a Sustainability Partnership between the companies, to develop and deploy innovation projects aligned to the zero carbon emissions ambition of both companies.

The MOU represents SSE and Microsoft’s commitment to working together on several future initiatives, to promote the awareness of business challenges and opportunities around sustainability, technology, and digital innovation.

The post SSE Renewables and Microsoft launch puffin monitoring pilot appeared first on Power Engineering International.

Continue Reading

Energy & Critical Metals

Evergrande Auto Hasn’t Sold A Single Car, But Has Enriched Its Founder And His Friends Plenty

Evergrande Auto Hasn’t Sold A Single Car, But Has Enriched Its Founder And His Friends Plenty

While everyone has been focusing on Evergrande…

Share this article:

Evergrande Auto Hasn't Sold A Single Car, But Has Enriched Its Founder And His Friends Plenty

While everyone has been focusing on Evergrande as a property developer, few know the story about how Evergrande Auto became worth $86.6 billion at one point without selling a single car. The company now trades at a fraction, about 4%, of its all time high. While shareholders were wiped out for the most part, insiders made out well. 

On Tuesday of this week, the company did what it does best. No, not make vehicles: pay insiders. Evergrande Auto "granted 323.72 million share options worth HK$1.26 billion to three directors and around 3,180 employees of the company," a new report from Caixin notes.

Founder Hui Ka Yan and "friends" in his circle have made out the best from the fallen company. How well have they done? One "friend" of the founder bought 80 million shares in the company before it was renamed as Evergrande Auto for HK$0.30 each. They then sold them all for HK$50 per share, netting the friend more than HK$4 billion.

Hey, it's great work if you can get it. 

Caixin reports that the primary purpose of Evergrande Auto was to raise capital for the group company Evergrande. While the parent company claimed it was investing some 47 billion yuan into the auto company, analysts are starting to wonder if the market funded these investments instead. 

One analyst told Caixin: “Evergrande Auto had raised 30 billion yuan in two rounds, which means that the company mostly used investors’ money — instead of its own capital — to invest, and it managed to gain a high market value (for the auto company). Consequently, with its shares (in the auto company) at high price, it could use them as collateral to raise even more money.”

The company focused more on M&A than it did on making cars, the report says. For example, it bought a major stake in Xinjiang Guanghui Industry Investment Group Co. Ltd. for 14.5 billion yuan in 2018. As Caixin notes, that company is a stakeholder in China Grand Automotive Services Group Co. Ltd., which is one of the largest auto dealers in the country.

The stake was later sold off in 2019 when Evergrande needed cash. 

In 2019, Evergrande Auto's predecessor bought a 51% stake in National Electric Vehicle Sweden AB (NEVS) for $930 million, the report notes. Evergrande's stock price rose as a result. 

Part of the mechanics that helped Evergrande Auto's predecessor rocket higher included the fact that 18 shareholders owned 19.83% of the company's shares. When combined with the 74.99% of the issued shares held by the company, that only left 5.18% of Evergrande shares to be traded freely. 

Evergrande also acquired a 51% equity stake in Fangchebao Group Co. Ltd. using its shares. Fangchebao then brought in 17 investors in March 2021 that helped it raise capital at a valuation of HK$163.5 billion. Evergrande made HK$8.175 billion upon selling its shares.

Analysts, however, were baffled as to how Evergrande was able to bring in investors at the elevated valuation. The secret lied in a promise of a buyback from Evergrande.

One investor told Caixin: “What we valued was its valuation adjustment mechanism (对赌协议). If Fangchebao failed to go public within a year, Evergrande would buy back our shares at a 15% premium to the prevailing market price. At least, through this mechanism, we could get out money back.”

Those investors thought Evergrande could continue to push up Fangchebao's valuation and that Evergrande wouldn't fail within a year.

Another investor said: "However, Fangchebao was a relatively poor quality company, much worse than Evergrande Property Services. In Fangchebao’s case, it was better not to go public. It would be more troublesome after the listing because its poor performance would become public knowledge.”

Then there's the question of who truly benefitted from Evergrande's financial wheeling and dealing over the years. While investors and shareholders now suffer the consequences of the company's poor decision making, Hui Ka Yan's personal assets are now mysteriously being "transferred to new ownership", the report says. In fact, Hui was easily the single biggest beneficiary of the dividends paid by Evergrande from 2011 to 2020. 53 billion yuan of the 69 billion yuan that Evergrande has paid in dividends since it listed have gone to Hui.

You can read Caixin's detailed report here

Tyler Durden Thu, 09/23/2021 - 19:20
Continue Reading

Energy & Critical Metals

Why Nio Stock Needs Some Help When It Comes to the Charts

The electric vehicle (EV) trade has finally cooled off, which is a good thing given how far it had run. It would be hard for Tesla (NASDAQ:TSLA) to justify…

Share this article:

The electric vehicle (EV) trade has finally cooled off, which is a good thing given how far it had run. It would be hard for Tesla (NASDAQ:TSLA) to justify a trillion dollar market capitalization or for these revenue-less SPAC stocks to keep soaring higher. Meanwhile, Nio (NYSE:NIO) is somewhere in between, with NIO stock performing quite well but not exactly on Tesla’s level.

Source: Robert Way / Shutterstock.com

At least, not yet.

In order to get there, the company will need to continue its domestic expansion in China and work on expanding globally. Tesla has been trading pretty well lately as it works on consolidating its massive gains over the last 18 months.

For Nio, though, the charts aren’t all that great right now. Combined with a high valuation, that has me on guard with the stock. For Nio, it needs the technicals to work in its favor in order for the stock to be attractive.

Trading Nio Stock

Daily chart of Nio stock
Click to Enlarge
Source: Chart courtesy of TrendSpider

A look at the chart highlights the recent struggles for Nio stock. Shares bottomed in early May along with most other growth stocks, as the bear market in this group came to end.

Nio ripped back toward $55 and the 61.8% retracement, but ultimately failed to hold those gains. It later failed to hold its major moving averages, while giving us an “ABC” correction down to the weekly VWAP measure.

This measure had been decent support throughout 2021.

However, after its rally back to the 21-day and 21-week moving averages, NIO stock gave us the “D” leg of that correction, resulting in the recent flush lower. We now see the stock below the weekly VWAP reading, as bulls scramble to see whether Nio can find its footing

If it can, we need to see Nio stock reclaim the August low at $36.24, as well as the weekly VWAP level. As of now, it’s currently undergoing a “monthly-down rotation” so long as it’s below $36.24. Back above those measures, and the high $30s could be in play.

On the downside, though, it’s possible we see the $31 to $32 area again. This area has been support twice amid two nasty corrections in Nio stock this year.

As a whole, Nio stock has been a leader amid growth stocks when the group is hot. But it has not done too well lately and it shows on the charts. So if the overall market struggles, this stock may too.

Breaking Down Nio

So many people will point to the fundamentals of a company like Nio without taking into consideration the valuation. Granted, I don’t put a lot of weight in the valuation either. At one point, valuations played a much larger role in the way that stocks behaved.

However, I think a few things have altered some of that Benjamin Graham thinking.

First, tech stocks blew the market wide open. No longer were companies having to follow traditional paths with only decent margins. Now software companies can routinely generate massive profit margins, while the tangible addressable markets (TAM) are significantly larger.

That’s allowed valuations to expand as well.

Second, the Fed’s low-rate and easy-money policies have forced investors to plow funds into equities. The returns in bonds (particularly internationally) and fixed income have dried up, forcing investors to chase returns in growth stocks — like Nio.

Is it healthy? Not necessarily, but this has been our reality for quite some time and it will likely remain that way for the foreseeable future.

I’m not calling for some great reckoning. A stock like Nio can continue to go up as long as it continues to deliver. But that remains a question mark.

While the company reported solid quarterly results last month, Nio’s July and August monthly auto deliveries disappointed investors. Furthermore, Nio was forced to trim its third-quarter delivery expectations.

Throw in Nio’s plan to raise $2 billion in stock, and it creates even more pressure on the stock price.

The Bottom Line on NIO Stock

It’s not that I have any specific gripe against Nio, but the facts are simple. For an automaker, the stock commands a high valuation and the company doesn’t have enough momentum in its underlying business right now. Thus, we need to see beat-and-raise quarters and delivery results in order to spur the stock higher. In line and disappointing results aren’t going to cut it.

Second, the charts don’t look very good. Back above $36.25 and my tone will change a bit. Otherwise, I remain defensive on Nio stock for the time being.

On the date of publication, Bret Kenwell 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.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

More From InvestorPlace

The post Why Nio Stock Needs Some Help When It Comes to the Charts appeared first on InvestorPlace.

Continue Reading

Trending