As SH's inboxing is down and linking a blog doesn't work (as you can't pull down the info in the blog section), here is the jimrockford blog in its entirety. APM is mentioned re one of featured companies.
Jimrockford Blog for July 2013 – 2 NEW COMPANIES!
New Companies – CMC ( CNSX-TSX listing later this month) and DOT
BXR, V.PP, GGX, ALYI, etc., etc.
Plus: The BC Geological Survey’s Ground-Breaking Work in the Nicola Arc / Quesnel Trough
The Tale of the Jimrockford Blog Tape for 6 months – (Of the companies already blogged, I only hold these and the New Companies):
Note: I am now loading up in the two new companies - CMC and DOT!
Global Green Matrix (V.GGX on the TSX-V)
– A gain of 200%
- Moved from 4 cents to a high of 12 on good volume.
Pacific Potash (V.PP on the TSX-V) – A gain of 165%
– Moved from 8.5 cents to a high of 22.5 cents on huge volume.
Blue River Resources (V.BXR on the TSX-V)
– A gain of 71%
- Moved from 7 cents to 12 cents and rising on very good volume. They will be drilling this summer.
Alternet Systems (ALYI on the otcmarkets.com)
– Maintained its SP
in the 11-12 cent range. I believe extremely fundamental NRs are coming, which should have a drastic effect on the SP.
Canada Strategic Metals (V.CJC on the TSX-V) – It has gone from 9 to the 5-6 cents range
. I am loaded up, just like the last time it hit a nickel. IMHO, NRs and a higher SP are coming.
This has been a very tough year for the TSX-V and the smaller brokerages (see below), but good wins (as shown above) are there with enough DD.
Notes re the Blog:
- The first time I have ever posted on a company, the SP has ALWAYS gone up
– see CMC and DOT, below
- I am not an altruist re the writing of this blog. I own six of the companies
. I don’t own them all.
- I have zero problems saying something bad about a company
if they don’t merit kind words. I’ve done my DD and read a lot of other’s DD (take a bow, DKM, etc.) – both micro and macro.
- I let people know when I am buying – but I will not jump and down when I am selling
. Why? Well, because I might start the SP going down and then people will be annoyed. People can read my blogs and posts and they will certainly be able to ascertain my thoughts on a company and whether I am buying, holding – or selling.
- If a stock that I like goes up and then goes down – and you don’t sell (and my opinions on it will be expressed) – it is all on you.
Cielo Gold (CMC on the CNSX) - First Time on Blog!
Important! A TSX LISTING HAS BEEN ANNOUNCED! (See below)
Note re CNSX: If you get a quote at CNSX.ca, they have depth by order and price. If you get a quote elsewhere, be sure to use the different exchange prefix – ie. at Stockhouse, you plug in C.CMC – not V.CMC.
Name Change Coming: Cielo Waste Solutions Corp.
CMC‘s “focus is on converting landfill waste to recoverable products and renewable diesel.”
CMC, in my educated opinion, has world-beating technology, a space (biodiesel / renewable diesel/ biofuels / clean tech) that needs a winner - and enough blue sky to be a smash hit.
Highlights from their Corporate FactSheet, dated June 18, 2013, can be read near the end of this section.
Notes re the listing/s:
Note 1: CMC is doing a reverse takeover with Northcore Technologies (NTI on the TSX).
Note 2: As the technology is not yet in NTI – and as NTI is doing a consolidation (1-for-20, I believe) IMHO, there isn’t a good arbitrage opportunity yet re buying the NTI.
Note 3: CMC is itself taking the biodiesel technology, etc. from another company, Blue Horizon (BH on the TSX).
I initially heard about CMC’s new biodiesel technology a year and a half ago at a lunch in Toronto – and I was blown away. In response to a query of mine, CMC’s new President replied that he could take care of Toronto’s garbage problem, make great money – and hide the technology in enclosed buildings throughout the city!
I believe CMC’s technology can change the future of waste management. In seconds, municipal solid waste becomes some of the best quality biodiesel renewable on the planet. There are few emissions – and the cost is ......... pennies per liter. What could be better than that? – Other than tipping fees to the company (And making feedstock costs lower or free) for taking the waste.
1.1 million shares of CMC have traded over the last few weeks - mostly in the 24-25 cent range. Things definitely look to be heating up on the market side! Take a look:
Here is a quick look at the TSX deal.
Here is the NR:
My best guesstimate is that Cielo will end up with roughly about 70% of the combined entity.
Important to note re the Coming TSX Listing:
-When the technology goes to the TSX, I am very sure that a lot of funds that need a biodiesel / biofuels / clean tech company in their portfolios that make sense. I am very confident they will all give the company a very good look – i.e. this may be an indexing exercise for them.
The History of the Company:
I first wrote about this biodiesel technology when writing in the Jimrockford Blog about Blue Horizon Industries Inc (BH on the CNSX).
BH had a number of divisions – but the only one I was interested in was the biodiesel division. With the new deal in place between BH and CMC, all BH shareholders will hold a very good amount of shares in CMC (and in NTI if that deal goes through, as it should, later this month).
- I have followed this technology’s progress closely and I even flew to the launch of its demonstration plant in Red Deer this winter
(Red Deer in January at 30 degrees below zero, fercryinoutloud!) I was so impressed. I was even more taken with things when I talked to all the hundred or so industry pros there – and the surrounding area mayors who wanted to acquire the technology immediately for their municipalities!
- This technology is Version 2.0 + +, IMHO. The source technology is of German origin.
- First generations of this technology have been running for years.
- The BH technology has gone from pilot plant - to demonstration plant – and now will be building commercial plants.
- Technologically, the move from up from demonstration plant to commercial plant (from 50 litres and hour to just south of 1000 litres an hour) is not a big deal, as it will still only use two turbines.
Cielo’s Technology Beats Every other Biodiesel Company’s Hands-down – in my opinion and the opinion of a lot of experts I have talked to.
Biodiesel is produced from crop-based feedstocks. Cielo makes renewable diesel.
Cielo vs. The Competition:
Note: BX, like many clean tech companies, has had massive costs, government subsidies – and problems.
Cielo uses Municipal Solid Waste and other feedstocks. What can be better than that? Every city in the world has a waste problem. MSW hands-down beats every other substance being used to make biodiesel renewable.
Cielo can get its feed (MSW) for free or for very cheap prices. Other biodiesel companies use feed that can be VERY expensive and hard to come by.
Cielo’s cost to make a liter of biodiesel – all in - is a fraction of its competitors. A good guesstimate is that Cielo’s cost is in the 50-cent range (allowing for its 13 cent a liter government grant – see below) – while a competitor such as Biox (BX on the TSX) out of Hamilton, ON, makes biodiesel for roughly $1.85 a liter – and may be selling it for $1.30 a liter in 2013!
Note: Many of CMC’s competitors need massive government grants to survive – and more than a few are while elephants because of this. Government grants are being discontinued in 3 years, so if a business doesn’t work economically now, they may become extinct.
Cielo’s operational costs are low.
Cielo will be very profitable and does not need government grants (although they received a ….government grant for $7.86 million at 13 cents a produced liter).
Cielo’s Technology is Modular:
Cielo’s technology is modular (a 5-module daisy-chain, tops). It can be moved right onto dump sites and moved as needed. Most competitors need land and massive infrastructure that is intended to be permanent.
Cielo’s low CAPEX is a tiny fraction of its competitors. Competitors have CAPEX’S which run extremely high – ie. they can run into the hundreds of millions of dollars.
Cielo’s technology has low emissions.
Cielo’s biodiesel is the best there is – ie. CMC can make aircraft and highway grade low sulphur diesel – ie. It will exceed all government and regulatory standards! Most competitors cannot make this statement.
Cielo will be able to sell its product in the $1.40 range (and that’s being very conservative). With the cost per liter being in the 50-cent range, that makes for very healthy margins.
Cielo has no shortage in demand for its product. Canada is starving for it.
Cileo’s biodiesel does not freeze or go bad – like a lot of their competitors’ product. Renewable diesel has a longer shelf life and a much lower freezing point than biodiesel.
Cielo’s technology makes for very little waste material. There is some rock-like material (asphaltine discharge) that can be used to pave roads and a tiny amount of waste water.
Cielo’s technology has minimal water requirements.
Cielo’s technology does not produce coke.
Cielo’s technology has low temperature and pressure.
- 1, 2, 3, 4, 5 or 6 units (ie. as many as can be supported) can be daisy-chained together, each taking a different type of municipal solid waste (MSW).
- If one module breaks down, it can easily be moved away for repair – and the remaining modules can keep producing biodiesel.
- A municipality can buy the amount of modules they need. This means the potential customer base for CMC is exponentially larger.
- Units can be put right on the dumpsite and a temporary shelter can be built around it, with some ventilation.
The Macro Outlook for Biodiesel
Everybody needs biodiesel
– the West especially. In Alberta, it is regulated that 2% fuel has to be biodiesel. So, corn, etc. is shipped to the US to make biodiesel and then it is shipped back to Western Canada for use – as they are not making enough to be self-sufficient.
Re the above, well, biodiesel can freeze, making for a very bad solution for Western Canada and its cold winters. Cielo’s biodiesel is much like regular oil – and is therefore much more viable.
- Think of a Cielo module working on a city dump as being akin to a producing oil well in a field.
- The company wants 6 Cielo modules in every city dump in the world.
Note: This is dependent on a municipality’s waste stream – as each module requires 20% of 120 tons of MSW.
- A lot of Funds have a mandate to have decent clean tech in their portfolios – and can’t find anything satisfactory. Indexing alone will be great for this company – when it reaches the TSX next month.
- With tipping fees, the product may almost be produced for free.
Note: Cielo is looking at roughly 50 to 60 cents a liter cost per 700lph and a selling price of $1.40 (very conservatively).
- Cielo has the simplest plant and the simplest feed – garbage.
The technology is scalable enough that cities won’t have to go initially balls-in for massive start-up expenditures. And they have the feed, so a lot of it should be a one-off cost and then they can save dollars on their equipment and fuel costs.
HANDLED PROPERLY, I BELIEVE CIELO CAN BE A BILLION DOLLAR COMPANY! THE BLUE SKY COULD NOT BE BIGGER.
I have a LOT more to say about this company in my next blogs. – too much for one blog.
Highlights from the Corporate FactSheet, dated June 18, 2013
Cielo’s growth strategy and corporate focus will be on:
I have some docs that aren’t online. (One has a nice picture of the demo plant) If anybody is interested, just inbox me – when SH gets it back up.
-Divert waste from landfills.
Waste Recoverables (copper & other metals, compost)
-Recovery of valuable material for resale.
Waste to Renewable Fuel
-Refine MSW and cellulose into an ultra-low sulfur renewable
Full sorting line with separating shredding and drying
Proprietary technology to reduce waste sent to landfills up to
Can reduce moisture up to 50% with no heat
Recover valuable material for resale
Separate all metals and valuables
Processing of Organic Materials into Fertilizer
Fertilizer technology with accelerated processing times
Waste to Fuel
Operational Demo plant located in Red Deer, Alberta
Multiple feedstock inputs:
Municipal Solid Wastes, Recycled Tires, Wood Chips, Paper,
Plastics, Bitumen, Heavy Oils and Yellow Grease
Low temperature (>300°C) & low pressure (>0 psi)
Government Mandate 2% provincial (AB), 2% federal
Provincial and Federal Government Grants Established
(As of June 17 2013)
52 Week High/Low
Cielo Waste Solutions Corp.
Reducing of Alberta’s carbon dioxide (CO2) footprint by more than 6 million tonnes over the
next 25 years – the equivalent of removing more than 42,000 cars off the road every year.
Here are some good sites for your perusal:
Note: The Canada Clean Fuels website has a lot of useful information on biodiesel
I am doing a comparable re clean tech stocks and would be happy to hear your ideas when SH Messaging comes back.
DOT Resources (DOT on the TSX-V)
I have been loading up on DOT Resources. It has had a bad run, SP-wise – and now I think it is waking up.
Note: The President of DOT, John Komarnicki, was President of Hurricane Hydrocarbons, one of the biggest headline-makers and successful companies of the 1990’s (it later changed its name to PetroKazakhstan).
Dot is “a Canadian based exploration corporation currently exploring on its 100% owned properties situated near Kamloops, in British Columbia near the world class Highland Valley copper porphyry district.”
The company website
Updated 43-101 Resource Report
filed on Dec 30, 2010 - done by Aurora Geosciences Ltd.
Following are a few highlights of the Aurora Report (from the website):
Points re the Company Structure
at a 0.20% copper cut-off, the estimated indicated resource was 5.33 million tonnes grading 0.45% copper, 3.28 g/t silver, 0.05 g/t gold and 0.006% molybdenum representing a 19% increase relative to the previous NI 43-101 Mineral Resource dated June 22, 2009), and
at a 0.20% copper cut-off, the estimated inferred resource was 4.28 million tonnes grading 0.46% copper, 1.99 g/t silver, 0.02 g/t gold and 0.004% molybdenum representing a 79% increase relative to the previous NI 43-101 Mineral Resource dated June 22, 2009), and
the five zones of mineralization included in the resource estimate are open along strike and down dip.
Points re the SP
As at April 26, 2013 there were 55,734,333 common shares issued and outstanding along with options to purchase another 2,150,000 common shares of which 2,075,000 had vested.
Insiders own 13% of the shares.
Alhambra (ALH on the TSX) owns 27% of the shares (see below)
- The SP was 1.5 cents in late May – and it closed at 4 cent bid by 5 cent offer on Friday on strong volume.
- Volume is rising.
DOT traded at 20-some sense before they did a late 2009 MineralFields flow-through financing for 14.234 million units at a purchase price of 6 cents per unit:
Here’s a 5-year chart showing how MineralFields coming off their position hammered the DOT SP:
I have been told that after offering a ton of stock, the MineralField guys were nice enough to come around offering to do another flow-through financing at an even lower price. This is not the first time your blogger has heard that type of story – not by a long shot.
Note: The assets of MineralFields were acquired by Marquest Asset Mgmt in October of 2012
The Relationship with Alhambra (ALH on the TSX-V) http://www.alhambraresources.com/
- DOT was spun out from Alhambra in May of 2007
- Alhambra owns 27% of DOT – ie. 15,000,001 shares
- Alhambra and DOT share a number of Management and Directors – including John Komarnicki, the President and Chairman of both companies.
The DOT / Alhambra Administrative Services Contract:
This is from the Q3 Alhambra MD&A -
- “The Corporation and Alhambra are parties to an Administrative and Corporate Services Contract (the “Contract”) whereby the Corporation agrees to engage Alhambra to provide management, administration and corporate services to the Corporation. The Contact provides for a monthly remuneration of $20,000 plus all reasonable out of pocket expenses and is for an indefinite term but may be terminated by either party upon providing thirty (30) days prior written notice. Effective January 1, 2011, Alhambra agreed to suspend billing DOT for services provided under the Contract until further notice therefore there were no amounts billed for the nine months ended September 30, 2012 and 2011. The amount owing under the Contract as of September 30, 2012 was $367,781 (September 30, 2011 – $359,433). During the nine months ended September 30, 2012, Alhambra advanced DOT $4,200 to assist DOT with its outstanding obligations while DOT is contemplating various options regarding the financing of its exploration plans and working capital requirements which brings the total amount outstanding as of September 30, 2012 to $404,200”
Having Alhambra as a “Big Brother” Works Well for DOT
DOT may not have a treasury, but almost nothing is being paid out (ie. see above) – ie. no payments to employees or Directors. As well, it has the benefit of Alhambra’s bandwidth and eyeballs.
DOT is in a place to recover from the MineralFields shellacking of their SP. They have great numbers in their drilling / 43-101 - are in a good area, have strong backing – and plan geophysics and drilling.
IMHO, DOT easily goes well north of here – and a move has already begun.
Blue River Resources (BXR on the TSX-V)
came late on Friday: Blue River arranges $1-million private placement (see below)
$505,900 in unit subscriptions has already been received!
My educated guess is that they are now only a few hundred thousand dollars from finishing the second tranche.
Copper plays that have been financed and are drilling – ARE GOING UP!
BXR will definitely be drilling now.
I have been mentioning Colorado Resources (CXO on the TSX-V)
a little bit on the bullboard – and for good reason. CXO as you probably know, is a BC Copper play (BXR is in Washington State, 25 km from the BC border) that went sideways for a year - and then went on a tear.
CXO is also a case where you had to be in early, or you missed the biggest part of the ride.
Here is a comparable:
Colorado Resources BC North Rok Discovery vs. BXR’s Mazama Copper Project (25 km from the BC Border
Work by Colorado (2012)
Confirmed the presence of significant copper and gold mineralization, with grab samples returning values up to 1.0 % Cu and 4.4 grams per tonne gold.
Demonstrated that the quartz-sericite-pyrite alteration is underlain by a 700 long by 350 m wide area of elevated magnetic intensity.
Defined a 600 long by up to 400 m wide coincident copper and gold anomaly overlying the magnetic anomaly.
Defined a second 700 m in diameter magnetic anomaly that occurs about 200 m west of the first magnetic anomaly in an area that is totally covered by glacial overburden.
Demonstrated that the copper and gold mineralization identified in rock and soil is associated with a chargeability anomaly that is 1 kilometre wide and at least 500 metres long and open to the south.
Drill hole NR13-001 was targeted to test the northern part of the coincident soil geochemical, magnetic and chargeability anomalies, and the entire length of Hole NR13-001 returned 333.0 m of 0.51 per cent Cu and 0.67 g/t Au. The first 242 metres of the hole was hosted in a typical porphyry-copper-style altered monzonite intrusion, and returned 242.0 m of 0.63 per cent Cu and 0.85 g/t Au.
“June 6 assays from Colorado Resources
[V.CXO] failed to meet soaring hopes set by North ROK’s very first hole. That northwestern British Columbia discovery excited anticipation of a project comparable to Imperial Metals’
[T.III] Red Chris project, 15 kilometres east. But while Colorado’s stock has since suffered, a still-strong market cap and recent activity by other companies suggest the area play may yet endure.
The June 6 announcement gave results for three holes, with NR13-003 showing:
- 0.21% copper and 0.55 grams per tonne gold over 152.4 metres, starting at 1.2 metres in downhole depth (including 0.31% copper and 1.04 g/t gold over 52 metres).
NR13-003 was drilled at a -80 degree dip towards the northeast from the same location as discovery hole NR13-001, which was sunk at a -45 degree dip in the same direction. NR13-004 was drilled 100 metres southeast of the discovery hole, showing:
- 0.4% copper and 0.5 g/t gold over 205.2 metres, starting at 158.8 metres (including 0.56% copper and 0.68 g/t gold over 131 metres).”
True widths weren’t available. Hole NR13-002, drilled 350 metres west of the discovery hole, found no significant results. The company stated it “may have not been drilled deep enough or at the correct azimuth to adequately test the IP chargeability anomaly that is now better understood with the new detailed geophysics.”
Work Conducted on Mazama Copper Project (1963 to date)
Kennecott recognizes porphyry copper potential at Mazama and conducts geological mapping, an IP survey and 6 diamond drill holes (1963 -1964).
Inspiration Development drills 18,000 ft. (5486.4 m) of core at Mazama in 16 holes (1970 – 1973).
Best diamond drill holes:
Quintana acquires Mazama project and drills 8 diamond drill holes and 47 RC holes. Reports mineable reserve of 146 million tons grading 0.36% (1973 to 1975). Drill results are not assayed for gold & silver.
DDH 31 – 800 feet (243.84 m) grading 0.46% Cu from 86 ft. (26.21 m) to 886 ft. (270.05 m).
DDH 15 - 962 feet (293.22 m) grading 0.42% Cu from 300 ft. (91.44 m) to 1372 ft. (418.19m).
DDH 17 – 1900 feet (579.12 m) grading 0.31% Cu.
3D IP survey conducted on Mazama property (2007).
The primary porphyry copper deposit at Mazama extends for a minimum strike length of 5000 feet (1524 m) trending SW-NE - and remains open along strike.
Previous exploration indicates fault offsets to the known Mazama deposit may extend the strike length by several miles. There is good continuity of grade to depth, indicated by DDH 17 intersecting 1900 feet (579.12 m) greater than 0.30% Cu.
Future Plans Colorado Resources
Future plans Blue River Resources
Exploration on the North Rok property in 2013 will involve continuing the IP survey to the south, further geochemical surveying and diamond drilling.
Exploration on the Mazama project will commence with a ground magnetometer survey over 2500 meters by 1500 meters to correlate with 3D IP survey and develop drill targets.
CXO is a beacon for all BC plays. At this stage, IMHO, BXR’s Mazama compares nicely to where CXO was – and of course, BXR’s Mazama wasn’t tested for gold & silver. Let’s hope being early on BXR proves even a fraction as profitable as was holding CXO.
Take a look at Doubleview (DBV on the TSX-V)
A 3000 meter diamond drill program is scheduled for summer 2013. The drill program is designed to confirm previous drilling and test new zones.
Doubleview (DBV on the TSX-V), a Stikine mining district of NW BC play, took a run just before a small financing/s – going from 5 cents to 17 cents in a heartbeat. If you weren’t already in, you most likely missed a lot of it.
- DBV – and Redhill Resources Corp. (RHR on the TSX-V) and Victory Ventures (VVN on the TSX-V), etc., etc. for that matter, all took a run after financing/s. Copper plays seem to need that catalyst.
Copper didn’t fall apart like gold
The BXR guys have a LOT of buy-in from the drillers
, who, like BXR’s Mgmt, see a potential home run. This bodes very well for drilling – and IMHO, helped the financing.
Balbir Johal, the New Director on the BOD
The appointment of Balbir Johal as a Director is a coup - and greatly beefs up the BXR BOD’s skill-set and ability to raise money. Johal has been a senior officer and director for over thirty years and has some massive wins under his belt.
Among Balbir Johal’s Wins:
Johal is a very active guy. As Executive Chairman of Pacific Potash, he’s raised over $6.25 million for Pacific Potash in 2013 – and its SP has done very well for its investors (see above). Quite a bit of the monies raised come from the Sino-Canadian Natural Resources Fund, which has links to the Chinese government – ie. Johal’s BOD appointment told me that BXR was definitely going to be financed – and it was.
I don’t see a hitter like Johal going on the Blue River BOD unless he sees good potential for another big score.
Blue River Corporate Brochure
He did a deal for Uranium One in 2004 and its market cap subsequently touched $4 billion.
His Alamos Gold deal touched a $2 billion market cap.
His Abzu Gold hit a market cap of $71 million.
His Centurion Minerals hit a market cap of $83 million.
His Urastar gold hit a market cap of $30.6 million.
BXR, IMHO, is too cheap given that they will be drilling
– and have as good a shot of being a CXO as any BC/Washington State (the Mazama Property is 20 km south of the BC border) junior explorer. BXR should have received a lift when they announced financing – but they only did it late Friday. That or their getting on the property to drill (post geophysical and a mag survey), should nicely help the SP.
One More Point in Closing
The BC Geological Survey’s Ground-Breaking Work in the Nicola Arc / Quesnel Trough
The BC geological survey is undertaking an intensive survey and a highly focused geological saturation mapping program. The intention is that they data developed will be irresistible to majors, who will want to come in the area to drill the theoretical structures.
The BC Geological Survey website:
The Nicola Arc / Quesnel Trough
New Director Balbir Johal knows that BXR is not a greenfields project – it’s a reconfirmation drill program looking for a billion pounds of copper!
is the most prolific porphyry belts in Canada. Among the porphyry deposits in production are Teck’s Highland Valley Mine (TCK.B) on the TSX), Taseko’s Gibraltar Mine (TKO on the TSX), Imperial Metals’ Mount Polley Mine (III on the TSX), New Gold’s New Afton Mine (NGD on the TSX), KJHM’s Ajax Mine, Thompson Creek Metals’ Mount Milligan (TCM on the TSX), , CMMC’s Copper Mountain Mine (***** on the TSX), Goldfield’s (GFI on the NYSE) and Consolidated Woodjam Copper’s (WCC on the TSX-V) JV.
There are 40-odd copper occurrences along a 30-mile stretch. That makes mapping the structure important – ie. it’s more than one occurrence per mile! It’s clear that stakeholders are the main beneficiaries of the program. As such, the whole thing is staked – and if anything comes free – it is quickly gobbled up.
Major’s putting in money are Glencore Xstrata copper (GLEN – LSE) and Freeport McMoran (FCX on the NYSE)
. Xstrata has two joint ventures in this zone and are approaching others. There is a belief out there that the two are trying to package a lot of this area up
This initiative is great for BC and to the province’s juniors who will benefit from the dollars being put into it.
And kudos to the BC Liberals for fostering it. They know that the mapping of the structure program will allow the Xstrata’s of this world to have a better idea of where to focus their resources
A few points:
- Blue River’s Mazama is at the very bottom of the belt
- Sego (SGZ on the TSX) has done a deal with the BCGS re this (http://www.segoresources.com/newsnew.html
) and a BCGS Paper and Brochure are on their website. See their regional mapping program between Princeton and Aspen Grove.
- Orestone Mining
), program near the renowned Mt. Milligan deposit in central B.C. is in the area.
Global Green Matrix GGX on the TSX-V)
NR: Global Green Matrix receives $2-million credit facility
This is huge – as GGX gets access to $2 million at 5-6%! And as President and CEO, Randy Hayward says, “This loan, along with the Company's other fund raising efforts, will enable GGX to fulfill its goal of having a total of six heating units fully operational by October of this year
OK – Let’s Plug in Some Numbers:
As I have stated in a previous post, GGX should do $2 million ($2 million is a very conservative estimate, especially considering there is now a lineup for them) to $3.2 million yearly per truck. And GGX will now have 6 heating units fully operational by October. Using those numbers, by October, GGX will have yearly revenue of between $12 million and $19.2 million.
GGX’s margins are very, very good.
- GGX has just under 84.4 million shares out, closed at 8.5 cents today – and therefore has a $7.17 million market cap.
One-time industry heavyweight, Poseidon had a multiple as high as 23 times – ie. People certainly will pay for blue sky – and GGX is growing like a weed.
You can plug in whatever multiples re revenue or earnings you would like….GGX will look pretty da-n good.
GGX looks like it’s catching fire again – and in my educated opinion this means that its 19.2 cents per unit financing (it closed Friday at 8.5 cents!) is in very good shape.
- These guys have raised equity and are raising a good amount in debentures. They have demonstrated fundraising muscle in a difficult market.
- The revenues are expanding beautifully. They are in the printing money stage!
I think GGX is going to do even better than it has, fundamentally – and that’s saying a lot.
Pacific Potash (V.PP on the TSX-V)
Pacific Potash has been a great win for me. There is still a LOT of blue sky – as the info below shows.
June 19 NR: Pacific Potash Corp. and CapitalAsia Investment Holdings Group Sign M.O.U for Potash Off-Take Agreement
The PP guys are in Beijing and signed this deal at the Mines and Money Show. It is huge for the company, as it demonstrates that with exploration success (and they have raised $6.25 million in the last three months for drilling, etc.) they will have strong partners in the exploration, development and sales process.
Financial Press: Pacific Potash Ready to Feed Brazil
Points re the Sino Resource Fund / China – IMP!
- The Sino Resource Fund is huge.
The Sino Resource is backed by the biggest of the Chinese state entities.
- The new V.PP Co-Chair is Managing Partner of the Sino Resource Fund.
- The above means that V.PP has extremely strong backers, who are able to take them to the delineation of a commercial resource and an eventual producing mine.
If V.PP pulls commercial potash out of the initial drill program, in my educated opinion, they will have all the Chinese backing they need for a 4 million ton a year or more mine.
- The above, IMHO, would absolutely come with huge take-off agreements
- Not only does Brazil badly need potash – so does China – i.e. finding markets for the potash would not be a problem.
A few points re Potash Brazil:
- The Street says the adjacent land holder to V.PP, Potash Brazil, is about to complete a $100 mil financing in the $4 dollar range. As it would then have about 130 million shares outstanding, this would give Potash Brazil a valuation of about $520 million.
- Potash Brazil’s 43-101 Reserve Report should soon be released to the public.
- Watch for Potash Brazil to both go public and raise in the neighbourhood of $1 billion to begin mine development.
More Points re V.PP
- The drill program is being prepared and permitted.
- In my educated opinion, institutions are chasing V.PP
Other Potash Companies:
I am doing DD on Encanto Potash Corp (EPO on the TSX-V, Passport Potash (PPI on the TSX-V), Western Potash (WPX on the TSX) and Allana Potash (AAA on the TSX-V), etc., etc. Potash companies seem to be doing – so I will be doing comparables re these and others quite soon.
Pacific Potash may just be a few drill holes from an enormous market cap!
Alternet (ALYI on the otcmarkets.com)
Get ready for some serious NR/s chock-full of fundamentals…in my educated opinion.
Do a quick comparable with Monitise PLC, which trades on London’s LSE and has a market cap of 582.01 m GBP.
Small group of shareholders = Very little trading = Shorts are in a very bad situation
The majority of ALYI’s’s shares are in a small amount of hands. This can be proven by the decisions that have been made, that otherwise would have needed the calling of Special Meetings. The shareholders calling the shots – the Cisneros family and others – are not sellers. And almost all the smaller shareholders are not speculators. They are investors who have informed themselves – and they are not sellers.
There are 90.8 million shares out in ALYI – and it only trades about 48k shares a day. This is absolutely miniscule volume. The numbers tell the tale – and the shorts are in a terrible position.
ALYI is a growing company, and as such, they need to use their shares as equity in order to raise funds to grow. And seeing the fundamental results they have achieved, I’d say they’ve been extremely successful.
I’ve done my DD and read a lot of other’s DD (take a bow, DKM, etc.) – both micro and macro. The revenue bumps are just a precursor to where I believe this ship to be going - on a fundamental basis. I believe fundamental NRs are almost here.
Yangaroo (YOO on the TSX)
Yangaroo has a corporate structure that is holding the company back – but there is no question where they are headed in terms of fundamentals
. Just take a look at the revenue hockey stick over the last two years, fercryinoutloud!
Yangaroo is in a big space. They need only a small fraction of the business to do very, very well for shareholders – and the huge advertising industry partners they have are helping them get there.
High margins and electronic automation makes for incredible economies of scale – and scalability.
If Yangaroo can solve their corporate problems, they will become a very nice winner.
Macmillan Minerals (MMX on the TSX-V)
On May 29 MMX issued a news release reporting four diamond drill holes:
MMX received the title documents for the final five concessions the company had been waiting for. MMX had filed through the normal staking process but due to interest and staking by other parties, the claims became subject to a lottery process. MMX was the winner of this lottery process. The five new titles cover an area of 1,036 hectares bringing the size of the Las Cucharas project to eighteen concessions and 4,679 hectares.
This quote by President George Brown is a good summary of the results:
“We have anxiously awaited these titles and now have these very encouraging drill results which add further evidence to our concept that the six kilometre long by two kilometre wide corridor within our Las Cucharas Project is widely mineralized with excellent potential to host a significant resource of gold and silver. These four drill holes have provided us with individual sample results up to 28.879 g/t Au (1.0 metre sample ECB-129 from Hole EC-01), up to 141.6 g/t Ag (1.5 metre sample NCB-226 from Hole NC-01A), and up to 2.15% Cu (0.3 metre sample NCB-79 from Hole NC-01). The mineralization has shown itself to be widespread. (Example: the mathematical weighted average grade of all 19 samples in Hole LU-01 for the 23.7 metres between 64.30 metres and 88.00 metres, including several samples reporting minimal Au and Ag, is 0.651 g/t Au and 43.7 g/t Ag.)”
MMX Closed a PP on June 3rd
for a PP of $183,500 at 4 cents a unit. Each unit consisted of one common share and one full two year warrant – exercisable at 6 cents the first year and 10 cents the second year.
Note: MMX last traded at 1.5 cents.
I have a lot of respect for George Brown, MMX’s President. This is the same guy who when he was President of Duran Ventures, had it up over $3 bucks a share – today it trades at 1/100th
the price! Now sure, these are different times and we are in a very rough market. Brown, though, has delivered in the past and is a fighter. I like MMX at this price.
Canada Strategic Metals (CJC on the TSX-V)
The last time this company went to a nickel I loaded up and made a double on the investment. I went into it knowing it wasn’t a day trade – and I was rewarded for my patience.
Let’s go over some numbers:
CJC has 39.4 million shares out.
CJC has HST and TVQ receivables of $186,427.
CJC has mining exploration tax recoveries from the Goeland ($470k) and the Manouabe ($55k), together totalling $525k.
Taken together, receivables and recoveries of CJC are alone worth $711,427 – or $0.0181 cents a share.
That does not take into account the worth of CJC’s huge suite of graphite properties, the monies currently in the treasury and the value of a trading shell on the TSX-V.
CJC doing well for me will just take some patience.
Duran Ventures (DRV on the TSX-V)
I made a lot of money on DRV a couple of years ago - and I am glad I got out a big winner (it was a nice multi-bagger).
Currently, I see a company sitting on cash waiting for the market to improve in order to finance.
I also see:
- A treasury that on March 1st
was $1 million – with $250k in payables.
- An admin burn rate of $83k per month – excluding exploration! That’s $996k a year.
- I won’t get into salaries and bonuses, other than to say that I am a big believer in the “eat what you kill” ethos of junior mining exploration. In good times, everyone should do well. In bad times, well.....
Amerix Precious Metals (APM on the TSX-V)
I made good money on APM and am very glad I got out of it when I did. As I stated when it was announced, the rollback would be a terrible move for the company – and I have been proved completely and utterly right.
Novadx (NDX on the TSX-V)
No bid! No......freaking......bid! And it looks like SND is throwing in the towel. Wow - Neil has really covered himself with glory.
I made very good money (over a double) on this play, on size - and was glad I got out.
I did a lot of DD on this one and when I saw Neil not doing what he said he’d do – I headed for the hills and told the NDX bullboard. Doing intensive DD gave me a very strong win – and saved me from the death-by-a-thousand-cuts this play turned in to
Wow! I am surprised this ship is still afloat, with Ted Baxter at the helm (a generational pop culture reference for all the SH oldsters).
Points in Closing Re the Blog
- I haven’t written a jimrockford blog in quite a while – so this one was quite a bit longer than most.
- If you have any ideas re this one, please send me an inbox when SH has Messaging back up.
- I am very excited about the CMC and the DOT and will continue to buy