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Red Cloud Gives Uranium Explorer “Speculative Buy” After Sampling Efforts Indicate High-Grade Uranium and REE Deposits

Red Cloud Securities Inc. stated in a research report that high-grade samples exceeding 50% U3O8 at…

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This article was originally published by Streetwise Reports

Source: Streetwise Reports   09/17/2021

Red Cloud Securities Inc. stated in a research report that high-grade samples exceeding 50% U3O8 at Skyharbour Resources Ltd.‘s Hook Lake property provide a clear indication that a high-grade uranium zone may be located close by. Red Cloud said it is maintaining its “Speculative Buy” rating for Skyharbour and 12-month price target of CA$0.95/share.

In a September 1 research note, David A. Talbot MD, Mining Analyst at Red Cloud Securities Inc. commented that Saskatchewan-focused uranium and thorium exploration company Skyharbour Resources Ltd.‘s (SYH:TSX.V; SA:NYSE.MKT) partner Valor Resources Ltd.. (VAL:ASX) recently reported high-grade samples from its Athabasca Basin Hook Lake uranium project.

The analyst indicated that Valor owns 80% earn-interest option rights in the projects which Red Cloud Securities believes is quite positive due to the confirmed high-grade uranium and rare earth and high-grade base metals found at the site.

The Hook Lake property includes 18 different target areas which show potential for new high-grade discoveries. Red Cloud noted that it sees upside re-rating opportunities for Skyharbour as a result of both the completion of the earn-in agreement and as the company continues to register further successful exploration activities at its flagship Moore Lake project where it is presently conducting a 5,000 m of drill program.

The report listed that a total of 57 samples were gathered at Hook Lake. The samples were noted to contain high-grade uranium, rare earth element and base metals. The analyst mentioned that four of these samples not only returned high-grade uranium (>6% U3O8) but notably also returned elevated amounts of rare earth materials (>0.5% TREO) and some silver and lead.

The Red Cloud report listed that a particular float sample yielded 59.2% U3O8, 499 g/t Ag, 5.05% TREO and 14.4% Pb. The firm highlighted two other rock chip samples that returned very high grades. The first produced results of 57.4% U308, 507 g/t Ag, 3.68% TREO and 14.5% Pb and the second returned 46.1% U3O8, 435 g/t Ag, 2.88% TREO and 8.8% Pb.

The analyst cautioned that these specific selective results may not be repeatable across the entire property; however, it may be a good sign since uranium assays of 50% or greater often provide a strong indication of a nearby high-grade uranium zone.

The analyst commented that a lots of news flow is expected from Skyharbour during the rest of the year. Valor Resources is scheduled to proceed with its follow-up field program in October, before locking in drill targets and initiating its winter 2021/2022 drill program. Meanwhile, Skyharbour remains focused on diamond drilling work at its 100%-owned, flagship Moore Lake project.

Skyharbour Resources is focused on acquiring and exploring uranium and thorium projects in Saskatchewan, Canada. The company’s primary asset is its advanced stage Moore uranium project. Moore is located on the eastern portion of the Athabasca Basin and covers about 35,705 ha. In addition, the firm owns a 100%-interest in the South Falcon uranium project which according to estimates from a NI-43-101 technical repot contains an Inferred resource of approximately 7.0 Mlb of U3O8 and 5.3 Mlb of ThO2. The company also holds a 15%-interest another Athabasca Basin uranium project called East Preston.

The analyst indicated that upcoming potentially positive catalysts for the company include further drill results from ongoing work at the Moore property, exploration results from Hook Lake and East Preston and positive findings from a potential Moore resource estimate in H2/21.

Red Cloud Securities Inc. rates Skyharbour Resources Ltd. as a “Speculative Buy” with a target price of CA$0.95/share. The analyst advised that the firm’s target price was arrived at by taking 80% of the NAVPS estimate of CA$1.14 per share. The report mentioned that the NAVPS forecasts were based upon an inferred resource of 7 Mlb U3O8 at South Falcon Point and an additional 7 Mlb U3O8 in mineral inventory at Moore’s Maverick and Maverick East zones.

The company’s shares trade on the TSX Venture Exchange under the symbol “SYH” and last closed for trading at CA$0.84/share on September 16, 2021.

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Skyharbour Resources Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd., a company mentioned in this article.

Disclosures from Red Cloud Securities Inc., Aug. 31, 2021

Company Specific Disclosures

3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services or has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

Analyst Certification

Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

( Companies Mentioned: SYH:TSX.V; SA:NYSE.MKT, VAL:ASX, )

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Energy & Critical Metals

The Ethical Investor: ESG moves, lessons from the energy crisis and JP Equities’ stock tips

The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity … Read More
The post The Ethical…

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The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity Partners’ director and partner, Nic Brownbill.

The world is in the grip of an ongoing global power crisis that has seen energy prices soaring by thousands of percentage points.

From China to Europe and now India, the cost of energy is surging drastically. The price of natural gas has even quadrupled in some parts of the world.

 

Source: IEA via Reuters

 

But economists are now warning this might be just the first of many power crunches the world will see as we transition into the new economy.

According to a research paper by CommBank’s analyst Vivek Dhar, there are two main root causes that led to the crisis — a strong demand recovery from the pandemic, and an acute shortage of two key power-producing fuels – natural gas and thermal coal.

As economies reopen, there is a sudden pent up demand from consumers which meant that factories were forced to switch on their production capacity at short notice. This was exacerbated by a colder than usual European autumn, as the continent potentially faces a more-freezing-than-usual winter season.

In China, the crisis mainly stemmed from an undersupply in local production of coals, according to Dhar, adding that coal supply has been hampered in China because of the government’s own environmental protection regulations.

So what can we learn from all this?

Dhar reckons that we are transitioning into the new economy too fast, too soon.

“What the recent energy crisis has shown is that the energy transition needs to be planned carefully,” Dhar wrote.

“This will mean significant investment in renewable generation, batteries, electricity grids and hydrogen.”

But he thinks the roll-out of a decarbonised grid and role of gas need to be clearly defined too.

“Under-investing in gas infrastructure relative to its role in coming years will only serve to make Europe’s energy market more vulnerable to prolonged gas shortages, and increase dependence on Russia.”

Like Europe, China’s decarbonisation ambition will need to be planned as well, Dhar said.

“If coal mines and coal power plants are closed before a renewable replacement is in place, power shortages in China could be an ongoing concern.”
 

What’s happening in Australia

Australians have chosen climate change as the top ESG priority, according to the latest survey conducted by global ESG consultant, SEC Newgate.

And more than half of the 1,000 Aussies surveyed said they were happy with the direction the government is taking on the environment.

ESG Rio
Source: Survey by SEC Newgate

 

Aussie respondents also nominated retailers Coles Group (ASX:COL) and Woolworths (ASX:WOW) as the top local companies when it came to doing well on ESG metrics.

These results should provide food for thought for PM Scott Morrison, who’s currently caught in a political wrangle with the Nationals in setting our 2050 climate goals.

The PM has told Liberal colleagues that he wants to bring a binding 2050 net zero commitment to the COP26 Summit in Glasgow next month, without having to upgrade Australia’s 2030 commitments.

Nationals Leader and also Deputy PM, Barnaby Joyce, said however that he was willing to back the 2050 targets only if funding for regional producers and farmers were made as part of the deal.
 

Special guest JP Equities’ Nic Brownbill shares his views and ESG stocks

Nic Brownbill, a partner at JP Equity, told Stockhead that decarbonisation is a mega global investment opportunity, one that JP Equity wants to be all in on.

How big is the potential for ESG investing?

“We see the whole decarbonisation theme as the next mega global investment opportunity. An estimated $41 trillion is required to decarbonise the planet. It’s going to be a bigger opportunity than the crypto market, because unlike cryptos, the carbon market is going to be mandated by governments, major asset managers and pension funds.”

Which segment of the ESG market do you see outperforming?

“Some companies will fall short in trying to make their carbon targets, so the balance will need to be met with carbon credits. I think carbon emissions will eventually be metricated, and the carbon offset market is going to be a way for major companies to offset their emissions.”

Would that investment opportunity catch on in Australia?

“I believe the Australian market hasn’t really caught on to the opportunity of this yet. But I think something will really start to emerge from the COP26 conference in November, where you’ll see a sustained mega theme starting to unfold in this country.

“I think we will start to see a complete emergence of Australian companies in the carbon space over the next few months and beyond.”

What are the ASX stocks that JP Equity likes in the carbon credit space?

One ASX stock that we’ve been watching very closely is  Fertoz (ASX:FTZ). They’re a leading North American fertiliser manufacturer that produces a unique low-emission rock phosphate product that increases crop yield by 15%.

“Importantly, it can generate significantly lower CO2 emissions in manufacturing compared with other commercial fertilisers.

“This presents a really significant opportunity because agriculture as a sector accounts for 24% of all human generated greenhouse emissions. Fertoz is one of the first movers in the carbon credit market, and since May this year has been issuing carbon offset credit certificates.

“It’s not a matter of if, but when disclosure of carbon emissions will become metricated. And as a result, Fertoz is getting some strong enquiries from other companies looking to offset their footprints by buying carbon credits.”

Any other ASX stocks you like in the ESG space?

“We’re also bullish on Mpower (ASX:MPR). The company is Australia’s leading specialist in renewable energy, battery storage and micro-grid business. It has a focus on five megawatt solar farms, and is in the process of creating an initial portfolio of 20 sites across Australia in the coming years.

“That gives them an aggregate capacity of around 100 megawatts, and an estimated value of more than $150 million. It’s now down to what the team can deliver in some of those projects to build up the portfolio.”

 

Notable ASX ESG-related news during the week

Rio Tinto (ASX:RIO)

The energy giant announced that it was targeting a 50% reduction in Scope 1 and 2 emissions by 2030, and a 15% reduction by 2025 from a 2018 baseline of 32.6Mt.

Around $7.5 billion in direct capital expenditure will be spent on decarbonising Rio Tinto’s assets from 2022 to 2030, including $0.5 billion per year from 2022 to 2024.

Strandline Resources (ASX:STA)

The company released its Sustainability Report for 2021, outlining its commitment to the United Nations Sustainable Development Goals (UNSDGs).

STA said it’s focused on managing development risks at its Coburn project in WA to safeguard workers and ensure environmental compliance.

Lithium Power (ASX:LPI)

The company has appointed global consulting firm Deloitte to ensure a robust ESG program at its Maricunga project in Chile.

Deloitte has been tasked to imbed sustainable protocols in LPI’s lithium extraction operations, and to establish ambitious standards for LPI to become a carbon neutral producer, while keeping high standards on the social aspects.

Jadar Resources (ASX:JDR)

The company also said it has completed its maiden Sustainability Plan, with strategies aligned to the UNSDGs.

 

The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

The post The Ethical Investor: ESG moves, lessons from the energy crisis and JP Equities’ stock tips appeared first on Stockhead.




Author: Eddy Sunarto

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Energy & Critical Metals

You Can Now Buy A Flying Car That Looks Like A Star Wars Spacecraft

You Can Now Buy A Flying Car That Looks Like A Star Wars Spacecraft

Forget Elon Musk’s Tesla Cyberquad ATV because there’s a new form of transportation…

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You Can Now Buy A Flying Car That Looks Like A Star Wars Spacecraft

Forget Elon Musk’s Tesla Cyberquad ATV because there’s a new form of transportation for the offroad enthusiast now available, and it looks like something out of Star Wars. 

Sweden’s Jetson Aero has begun manufacturing a personal electric vertical take-off and landing (eVTOL) aircraft that will zip around the skies at 63 mph. 

The Jetson One eVTOL is an octocopter with four arms that produce 88 kW (118 horsepower) at full throttle. The pilot sits in an aluminum/carbon fiber frame and controls the craft via a throttle lever on the left, a joystick on the right, and a pair of pedals, likely controlling yaw.

According to vehicle car website Autoevolution, “the company [Jetson Aero] said that you can easily climb as high as 1,500 meters (4,921 feet) with Jetson One.” So far, videos only show the eVTOL moving at high rates of speed at low altitudes.  

Someone who weighs roughly 187 pounds can expect 15-20 minutes of flight time before the batteries need a recharge. 

New Atlas noted the eVTOL comes 50% built, and presumably, owners will have to assemble the rest. For that reason, the craft will likely fly under “experimental” where pilots don’t need a license to fly. 

As for price, a $22k deposit will give someone the right to reserve a build slot for 2023. There are only three left. Production in 2022, a total of 12, has already been secured from people worldwide, including a few in California. 

Personal eVTOLs appear to be the next big trend in transportation that will revolutionize how people (rich people) travel and commute or spend their leisure time. 

Tyler Durden
Sat, 10/23/2021 – 23:00

Author: Tyler Durden

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Energy & Critical Metals

LG Companies to Pay $918M Over Chevy Bolt Fires, Resume Plans for IPO Before Year-End

LG Chem has come to an agreement with General Motors (NYSE: GM) to cover the cost of the Bolt battery
The post LG Companies to Pay $918M Over Chevy Bolt…

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LG Chem has come to an agreement with General Motors (NYSE: GM) to cover the cost of the Bolt battery recall, as the automaker is forced to recall all Bolt EVs ever produced.

According to a company statement seen by Bloomberg, LG Energy Solution and LG Electronics Inc— both of which are owned by LG Chem Ltd and manufactured electric vehicle batteries for GM, have agreed to pay the automaker a combined 1.1 trillion won, or $918 million in costs related to the Chevy Bolt recall.

LG Energy is expected to pay about 620 billion won after fires started in about a dozen Bolts, prompting GM to issue a recall spanning across more than 100,000 vehicles. LG Electronics, which was responsible for packaging the cells produced by LG Energy into modules that were placed in the batteries, has also agreed to compensate GM 480 billion won in costs.

Including previous costs related to the recall that were disclosed during the companies’ second-quarter earnings, both companies are now responsible for coming up with a total of 1.4 trillion won related to the recall. Following the news, LG Electronics slumped by nearly 1% before paring back losses, while LG Chem jumped by over 4%.

On Tuesday, LG Energy also announced that it will resume plans to launch an IPO before the end of the year, after putting the original plans on hold after GM announced the recall. LG Energy was one of the largest EV battery manufacturers in the world between January and August, and according to a report cited by the Korea Times, the company’s valuation sits at around 100 trillion won, or $83.58 billion, with expectations that it could raise nearly 10 trillion won during during the IPO.


Information for this briefing was found via Bloomberg 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 LG Companies to Pay $918M Over Chevy Bolt Fires, Resume Plans for IPO Before Year-End appeared first on the deep dive.


Author: Hermina Paull

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