That’s what Abraham Drost, geologist and CEO for Clean Air Metals (AIR, TSX-V), calls this part of the world – “Palladium Central”.

Following a brief delay, AIR expects to start trading next week and it’s got the potential to be a high flying stock right away! Eric Sprott was the lead order in Clean Air’s $15 million financing. He’ll own approximately 9.6%. In addition to Sprott, another 50+ people, a mixture or high-net worth and institutional investors (I presume), participated in the 20-cent financing.

I’m guessing AIR will start trading at least 20% above the offering price, call it 25 cents, kind of a big deal for Benton Resources (BEX, TSX-V) which is sitting on 24.6 million shares (or $6.1 million, starting out). Benton owns approximately 19.6% of the company and is Clean Air’s largest shareholder. Considering 500+ holes and $100+ million has been spent on the projects (Escape Lake and Thunder Bay North), AIR has room to triple before having an enterprise value commensurate with “exploration and development” expenditures made thus far.

At 75 cents per share Benton’s equity holdings in AIR would be worth $18.4 million, twice their current market cap.

Another beneficiary is going to be Transition Metals (XTM, TSX-V) which owns 100% of the Saturday Night Project and a 25% interest in Implats‘ Sunday Lake (drill results pending), on trend with Escape Lake and Thunder Bay North. Transition also has a lot of other irons in the fire, another reason we’re bullish on this play as well. It continues to creep higher.

Benton Resources (BEX, TSX-V) 

The chart on BEX is looking quite nice, quite nice indeed, as market participants have really started to factor in the significance and certainty of this deal (one I’ve been talking about since Benton tied these projects up via contract).

Meanwhile Steve Stares may have another trick up his sleeve – possibly another arrangement with Rio Tinto? – so his network and connections are really proving to be valuable.

During Clean Air’s conference call yesterday, a prelude to listing next week, Drost disclosed he’s a shareholder of BEX. He said everybody else should probably be a shareholder of BEX, too. Obviously Drost likes AIR but recognizes BEX as a proxy for playing it, while simultaneously endorsing Stares’ talent and ability to keep generating new deals (strong testimonial for Benton).

In a snapshot, this section of core is why Stares’ was so excited to get these projects under contract to begin with.

Stares’ excitement, which was infectious, ultimately attracted high-profile executives and investors because they couldn’t pass up the chance to find more. Just a stunning intercept there – 98 g/t Palladium Platinum and Gold plus 14.9% Nickel + Copper over 2.6 m – and they think they’re still looking for the “high-grade” feeder zone!

During the call Clean Air’s Executive Chairman Jim Gallagher, P.Eng., CEO of NA Palladium until it sold for $1 billion, said Lac des Llles doesn’t have the extreme high-grade like they have here ‘nor does it have the Nickel-Copper.

I found that point to be noteworthy, considering Gallagher knows Lac des Llles better than most.

He and Drost think they could have a “mini Norilsk” on their hands, the granddaddy of magma conduit systems.

High-grade drill results were practically promised to be released before the end of May.

Such a promise can be made and delivered upon in this case because Rio Tinto was sitting on assays that were kept private.

So Clean Air should be off and running sometime next week (BEX should tag along for the ride). Exploration starts next week, too! And the Company is funded for a planned 25,000 m of drilling this year. One of the initial goals is to double the size of the Escape Lake resource.

Tagging one of the feeder zones could create an even bigger score for holders of AIR and BEX.

Here’s a link to a replay of yesterday’s live presentation.

Finally, a few quick points on Palladium fundamentals. While automobile production is expected to slow considerably, approximately 30% is what some analysts are calling for, modern catalytic converters (in keeping with more stringent environmental regulations) require 30% more Palladium. Therefore a good portion of lower auto production could be offset by higher usage of metal. Recycling as a percentage of total supply is thought to have peaked, or recycled volumes of Palladium can’t go any higher, while new global supply is sourced from relatively unstable countries like South Africa and Russia. Given the differential in prices, still about $1,000 per ounce, people keep thinking auto manufacturers could substitute Platinum for Palladium (which has historically been done), but Gallagher basically said that ain’t happening. Platinum can no longer replace Palladium on a 1-for-1 basis in modern catalytic converters, according to Gallagher.

The post “Palladium Central” appeared first on Penny Stock Experts.

Dario, with a strong treasury of $20 million U.S. (Dec. 31) and no debt, has just 8.1 million shares outstanding and closed on the NASDAQ today at $6.32. Key breakout level is the 200-day SMA which is flattening out at $7.00 after being in decline since late 2016.

DarioHealth (DRIO, NASDAQ)

Leading the way in a brand new industry called “Digital Therapeutics (DTx)”, Dario has an excellent chance at becoming a standout stock like TDOC and thrive during the 2020s. Business Insider Intelligence estimates DTx will be a rapid growth industry with a total addressable market of $9 billion and 110 million users in the United States (globally DTx could grow to become a $200+ billion industry by 2024) because it offers a novel means of treating, managing, and improving health outcomes for people with chronic diseases like diabetes, hypertension, and obesity.

At this moment in time DRIO is 1 of only a couple of ways to invest into publicly-traded DTx companies. The opportunity for Dario and its shareholders is massive, but before we dig into some key details I’d like to acknowledge the elephant in the room:

• Continuous glucose monitoring (CGM)

Inevitably, when you talk to people/investors about what Dario is doing they’ll say, yeah, but such and such friend of mine wears a “patch” that monitors their blood sugar levels. The patch they speak of, or used themselves, is manufactured and distributed by DexCom (DXCM, NASDAQ).

DexCom is a behemoth (market cap $29 billion). DexCom basically invented the CGM. By far and away they’re the leader in real-time glucose data and monitoring. DexCom even works with Apple and Google, so what chance in the world could a tiny little player like Dario (sub $50 million market cap) have at competing successfully?

When you dig into this situation I think that’s really the big question. DexCom’s continuous glucose monitoring technology is really the elephant in the room.

Dario’s technology for checking blood sugar is “old school”, but it’s super cool and convenient!

Some users describe their Dario as “cute”, and “durable”. It makes testing your blood sugar almost fun, said another user.

About the size of 2 fingers, Dario’s device is the only product on the market that’s an all-in-one solution (no batteries required). Simply plug the meter into just about any smart phone and voila! Dario gets an A+ rating for accuracy. Plus with Dario there’s no need to write down and manually track glucose levels. Everything is saved automatically for easy monitoring and sharing. “It’s just what the doctor ordered, literally,” said another satisfied customer on Amazon, where Dario has a 4+ star rating out of 1,000+ reviews.

Dario’s blood sugar monitor has a 4.9 star rating out of 10,400+ reviews in the Apple App Store (it’s pretty much the most popular application for managing diabetes in Apple’s App Store).

So very fair to say Dario is already successful and incredibly popular.

Getting back to the elephant in the room (CGM) and DexCom, while putting on my investor hat, I think I’ve got the investment thesis for Dario boiled down to this:

• For diabetics will a finger prick go the way of a handshake?
• Is this a horse and buggy moment whereby CGM completely replaces the finger prick?

If you asked me, the answer to both questions is NO.

Therefore DRIO represents a compelling investment opportunity (market cap sub $50 million), having created an all-in-one 21st century solution for monitoring glucose. DexCom will continue dominating with its CGM technology, but Dario isn’t really competing in that space anyway. Worldwide an estimated 415 million people have diabetes and I just don’t see 100% of them wearing a CGM patch around the clock.

Dario’s developed a simple and sleek solution for testing and tracking blood sugar levels via smartphone. Coupled with Dario’s application, users can easily share their healthcare information with doctors and loved ones. They can even get signed up with a “coach” via text and video chat, which ultimately leads to better health (Dario has the data to prove engaged users have better outcomes). Insurance providers, employers, and health plans are willing to pay for “better outcomes”, creating a win-win for people with chronic health conditions like diabetes and Dario.

Compared to recent years the company’s business model is shifting from selling devices (hardware) and test strips to a monthly subscription model. The shift is well underway. Here’s what the model looks like right now:

• $25 per month per person (subscriber), which includes unlimited test strips automatically delivered. Plus an upgrade option that includes coaching;
• $60 per month per employee via an employer sponsored diabetes management program that includes coaching.

Dario already had 46,000 users. As per the most recent conference call they expect 70% of that user base to make the transition to Dario’s subscriber model, implying baseline revenues of approximately $9.6 million this year. Subscriber growth should start ramping via new employer and health plan related agreements. Dario also has an innovative “subscription-in-a-box” (SiB) program that’s already on grocery store shelves of many Albertson’s (2,000+ locations). Already sitting on digital shelves of BestBuy.com and Walmart.com, it shouldn’t be long until Dario’s SiB is being offered at brick and mortar stores at locations near you soon!

By the way, telehealth and DTx companies are currently receiving rich valuations of 5 to 10 x sales. Using those metrics DRIO could go from being a $6 stock to a $12+ stock based on its existing subscriber base.

The post DRIO: Leading the way in a brand new industry called “Digital Therapeutics (DTx)” appeared first on Penny Stock Experts.

“Phase IV” if you prefer roman numerals, or just Phase 4 if you don’t, the next phase of stimulus money is going to shower itself over critical infrastructure. Across America and Canada, roads, rails, airports, bridges, water utilities, and much more need repair and improvement. Critical infrastructure has been neglected for decades, and that capital injection (possibly $2 trillion) will be YUUGE for some construction materials providers, builders, and engineering groups.

As talk of Phase IV advances and ultimately materializes in a $1 or $2 trillion spend on infrastructure, CEMATRIX is a “hidden gem” that will benefit biglee.

This will be absolutely yuuge for CEMATRIX, which owns 3 of the 4 largest cellular concrete operations across the U.S. and Canada (yet has a market cap of only $24 million CDN).

During one of his news conferences earlier this week, President Trump reiterated his want/demand for a Phase IV infrastructure stimulus program. Trump told Steven Mnuchin, Secretary of the Treasury, to “get it done”.

Get it done, Steve.

I think it’s gonna happen, but a beautiful factor concerning the stock (CVX) is that it should perform great with or without “new trillions” in infrastructure spending.

CEMATRIX already has a backlog of approximately $78 million, after announcing another $2.9 million of contracts that have been awarded to MixOnSite USA and Pacific International Grout (wholly-owned subsidiaries). They also announced a $5.5 million financing this week to help fund this anticipated growth while strengthening the balance sheet.

“Even though the business of designing, tendering and quoting infrastructure projects has slowed down a bit as a result of the COVID-19 Pandemic, CEMATRIX still continues to land new projects throughout North America,” stated Jeff Kendrick, CEMATRIX President and CEO. “In addition, in order to help Americans and Canadians revive both economies, strong signals are being sent by different levels of governments that infrastructure focused spending will be part of future stimulus packages. CEMATRIX is extremely well positioned to benefit from these infrastructure focused initiatives. This opportunity was recently confirmed in part by announcements in the U.S. to move forward on 2 trillion dollars’ worth of infrastructure replacement projects.”

Yeah, so I’m a buyer of CVX and I especially like it in the 30-cent range (minor resistance at 40 and major support at 30 cents). When talk of Phase IV really starts heating up, smart speculators will start connecting the dots and conclude CVX is an awesome way to play. CVX has great potential to become a true “story stock”.

Please don’t hesitate to leave a comment if you’ve got any questions or statements to make (political or otherwise).

The post Cellular Concrete: The Fastest Growing Construction Material on Earth? appeared first on Penny Stock Experts.

Refrigerants, Recycling, And Energy Efficiency

Refrigerants keep things cool – like houses, commercial buildings, semi-tractor-trailer trucks, and food sitting on shelves at supermarkets. Without refrigerants,  air conditioning wouldn’t be a thing. We could live without air conditioning, but many people choose not to because summertime would be hotter indoors. We could live without refrigeration but it wouldn’t be convenient, and lots and lots of food would spoil.

So you’d agree, then, modern societies need chemical refrigerants.

R-22 (aka. freon) is one of the most widely known and consumed refrigerants.

You probably knew that, but did you know 2020 is the first year no new R-22 is being produced (zero-zip-nothing-nada). Thanks to strict environmental regulations, R-22, which isn’t considered to be “eco-friendly”, has been banned. Following a multi-year phase out plan, 2020 is the first full year with no new supply. Virgin production has been completely eliminated.

Therein lies a problem for the tens of millions of homeowners and businesses who possess equipment that relies on R-22 for cooling.

With no new supply where will they get R-22?

Hudson most likely. They’ve captured about 35% market share of the refrigerant reclamation industry. The only “new supply” of R-22 going forward will come from recycling and as one of America’s largest, Hudson has a near-monopoly and $1 billion opportunity in front of them (pretty substantial for a company with a $37 million market cap, don’t you think!).

Yeah, so I’ve been nibbling on some HDSN lately and I think it’s a fantastic speculation while it lasts below $1 per share.

Coming into 2020 the price per pound of R-22 (freon) was $10. Assuming tried and true supply/demand fundamentals still hold, R-22 prices have nowhere to go but up. Demand remains similar, while declining at some rate until year 2030 or 2040, but there’s no new supply coming onto the market (other than reclaimed R-22). Not unlike any other commodity producer, Hudson’s fixed costs stay about the same and they make more money when commodity prices rise.

You know how Oil producers make more money at $100 per barrel than $30? Well, Hudson will make a heck of a lot more money when R-22 is $20 or $30 per pound instead of $10.

Long-term supply/demand factors point to rising R-22 prices that will have a directly positive impact on Hudson’s revenues and profitability.

Quick look and you see, holy cow, HDSN was a $10 stock in the midst of a multi-year bullish trend and than it all fell apart – what happened?

Long story short, what happened was (to use a phrase from my urban dictionary) Hudson made a big acquisition in late 2017. They took on $185 million worth of borrowings to get the deal done, which seemed to make sense at the time.

Here was CEO Kevin J. Zugibe’s rationale back then for making the acquisition: “We’re very pleased to have closed this transformative acquisition which represents a milestone in our company’s history. The addition of ARI significantly strengthens our leadership position in the refrigerant and reclamation industry by enhancing our product offerings, increasing our geographic reach and customer base and enhancing our sales and distribution capabilities. This strategic combination considerably increases the scale of our company which will allow us to better serve our customers during the ongoing phase out of HCFC refrigerants and as the industry continues its transition to next generation HFC refrigerants, which have also been identified for future phase down. We welcome ARI’s experienced management team and employees and look forward to working together to serve our existing and new customers with our expanded product and service capabilities.”

Mr. Market didn’t see all those benefits, though, and was obviously scared off by this new stress to the balance sheet. Aside from that, supply/demand factors haven’t really kicked in yet, which should almost surely cause R-22 prices to rise.

After monitoring Hudson’s progress over the years, and the chart, this feels like the right time to be a buyer. I’m not sweating the debt after hearing Zugibe say they’ve already paid down $68 million from operating cash flow, or nearly 40% of the debt originally taken on.

When R-22 prices start rising from $10 toward $20 per pound, Hudson will be able to pay down the remaining debt even faster.

The post HDSN: A Nearly-Monopoly on R-22 Freon appeared first on Penny Stock Experts.

Azimut’s highly anticipated 6,000-m (30-hole) diamond drilling program to expand its Elmer Gold discovery starts this weekend!

AZM tripled from 50 cents to $1.50 in 1 day (January 14) after discovering substantial Gold mineralization in multiple drill hole intersections, in 7 of 7 holes on a property that had never been drilled before, including 3.1 g/t Au over 102 m and 2.8 g/t Au over 108 m.  Wisely, in retrospect, the company closed a $6 million flow-through financing at $2.45 a share February 26.  Just 2 weeks later the stock plummeted as low as 86 cents as global markets cratered.  AZM recovered about half of its losses by closing at $1.21 Friday.

With the IP and magnetic geophysical survey results in-hand (pictured above), we can see the drill holes that got everyone so excited about AZM were taken from the northern nub of a larger chargeability and resistivity high called ELM-1, which measures 850 m long by 350 m wide.

Azimut has outlined 5 priority target areas identified by a combination of moderate to strong chargeability and resistivity anomalies that delineate a cumulative prospective length of 3.5 km.

With the exception of ELM-1, the target areas remain untested by drilling.

These IP anomalies are thought to represent the potential footprint of a significant Gold-bearing system for the following reasons:

• The 5 high-grade Gold prospects known thus far within the grid area, including Patwon, show good spatial correlations with the IP anomalies;
• The features displayed by these prospects – e.g., Gold associated with disseminated with pyrite and intense quartz veining, are known to produce good IP signatures characterized by chargeability anomalies (generated by chargeable pyrite) and resistivity anomalies (generated by resistive quartz veining).

The Elmer Project was staked based on the results of Azimut’s predictive modelling for Gold in the James Bay region using their proprietary AZtechMine expert system.

We need a GIANT new discovery and we need it now more than ever.

Wish Lulin and Azimut luck because their good fortune could rub off on other companies seeking grassroots metal discoveries, especially those with projects in the James Bay region (Canada’s youngest and most prospective emerging Gold district?).

The post Good Luck, Buena Suerte, And Bonne Chance! appeared first on Penny Stock Experts.

Do you want to buy high and then sell higher?

If the answer is “yes”, Galway Metals (GWM, TSX) is really becoming a stock for you.

GWM has an attractive orderly-looking chart – the stock has dependably traded between 30 and 40 cents.

I’d say the “waiting game” is over, or nearly over.  Therefore the timing for buying or adding to your existing GWM position is nearly perfect.  Following a year’s worth of consolidation, which had the stock trading sideways between 30 and 40 cents, GWM has broken out.

Said differently, GWM is in the process of breaking out, but not in spectacular “shock and awe” fashion.  Not yet anyway, and that’s good news for buyers.

As we can easily see in the chart, trading activity increased substantially in the month of February (rising volume increases the likelihood that this price breakout is for real).  GWM tried to break 40 cents resistance on Feb 25 after announcing 10.6 g/t Au over 47 m, but it was promptly thrown back, all the way back, to support at 30 cents.  Then GWM bounced off 30 like a super ball to a new multi-year high of 43.5 cents!

Nasty little shakeout before the breakout!  

With the 40-cent hurdle (resistance) cleared rather convincingly GWM should continue working its way higher toward 50 then 60 cents – price points that serve as “new” resistance looking forward.

Management/Friends/Family, led by CEO Robert Hinchcliffe with 13.9 million shares, own 30% of Galway’s outstanding equity.

You may recall that Hinchcliffe’s ongoing open market purchases, which never really slowed over an 18+ month period, were what tipped us off on GWM to begin with.  I’ve even expressed concern for Hinchcliffe’s health at times because his actions indicated he might be addicted to buying his own stock.  Lately it’s becoming more clear that this is probably just a “healthy addiction”.

Michael Sutton, who was previously Chief Geologist for Kirkland Lake (KL, TSX, NYSE), is another reason we’ve stuck with GWM.  Sutton and Canada Cobalt’s (CCW, TSX-V) High-Grade Halliday are 2 examples of talent that’s come out of Kirkland.  Junior explorers who can attract top talent from Kirkland seem to have a habit of making discoveries and outperforming in the market.

For those of you who aren’t up to speed on Galway or just want a little reminder, please read some of our “greatest hits” on GWM below (starting with the newest stuff)…

Re: Hole 87 which assayed 10.6 g/t Au over 47 m

Hinchcliffe said, “The wide and high-grade intersection in hole 87 is among the best in the company’s history.  Its location between two other wide and high grade intersects bodes very well for the Clarence Stream resource update scheduled for the 3^rd quarter of 2020, both from the perspective of any pit-constrained or underground resource.  Hole 93 is significant because it continues the process of closing the gap between the Richard and Jubilee Zones, just as the previous press release of 2 weeks ago closed the gap between the GMZ and Richard Zones.  Of note is that NONE of the 36,377 m of drilling that Galway has completed in the 2.5-km-long mineralized system that hosts the George Murphy, Richard and Jubilee Zones are in the existing Clarence Stream resource, which was last updated 2.5 years ago on September 26, 2017.  That resource includes the South and North Zones only.  All 5 deposits remain open for expansion in all directions.  Galway’s strong drill results demonstrate that Clarence Stream is an emerging new Gold district in North America.”

To reiterate – NONE of what you’re seeing in the image is included in the existing Clarence Stream resource estimate.

With each round of drill results and each news release it’s becoming glaringly obvious that Clarence Stream is in fact a new Gold district in eastern Canada.  Their next resource estimate should show they’ve got 1+ million ounces of open-pit material grading nearly 2 g/t.  Then if you start extrapolating out over the 65 km of strike, which is littered with high-grade Gold boulders in soil anomalies, a high percentage of which lead to drilling discoveries, I think it’s easy to see Clarence Stream will keep growing (Galway is like a mini-Marathon – MOZ, TSX – at this point).

Galway captures the BIG picture potential of what Clarence Stream could be in that 1 image.  It’s a similar geologic setting to Marathon’s Valentine Lake Project, and Galway’s got twice the strike length (65 km).

Along the Sawyer Brook fault system, soil anomalies are proving to be great pathfinders for new discoveries.  As crazy as it might sound (crazy in a good way!), almost every soil anomaly drilled by Galway has intersected Gold thus far.

In other words, Clarence Stream has been a fun and dare I say “predictable” place to explore.  All you need to do is find an area where Gold has leached into the soil, then drill.  Grab samples also provide a good clue, and have assayed +1 ounce Gold atop some of these soil anomalies.  This process of drilling soil anomalies has helped Galway identify 5 zones across a 5 km strike length (within a 65 km structure called the Sawyer Brook fault system).

Location is a huge plus!  The market’s expressed a strong interest for Gold deposits located in eastern Canada – look no further than price action in MOZ and St. Barbara’s $800 million takeover of Atlantic.

At an estimated 1.96 g/t Gold, grades at Clarence Stream are quite high relative to open-pit mines worldwide.  Galway will be publishing a new resource estimate this year (they’re guiding for Q3), and that ought to take them well over the 1 million ounce mark.

And don’t forget Galway also owns 100% of a Zinc and Gold-rich VMS project in Quebec called Estrades.

Estrades is a wildcard for an unexpected new discovery and/or non-dilutive financing.  Hinchcliffe will look to monetize Estrades when Zinc prices improve.

A Zinc equivalent grade of approximately 21% (measured and indicated resource) ranks Estrades as one of the Top 3 highest grade Zinc projects in North America.

The post New 2+ Year High For Galway Metals (GWM, TSX-V) appeared first on Penny Stock Experts.

My initial reaction was oh, how sweet, Valentine’s Day! 

Balmoral (BAR, TSX) and Wallbridge (WM, TSX) sitting in a tree, K-I-S-S-I-N-G!

Two love birds finally unite as one!

Perfect Hollywood ending to a rom-com that began tragically.  Valentine’s Day will forever and always be their anniversary!

Love is in the air, everywhere I look around.

Love is in the air, every sight and every sound.

0.71 is the exchange ratio and based on the 20-day volume weighted average price, that implied a 62-cent share price for BAR, or $110 million.  That’s the second thing we learn, so every 1 share of BAR will convert into 0.71 shares of WM assuming the all-stock transaction closes as planned.

Is this a match made in heaven?

YES.  A resounding “yes”.

Marrying makes strategic sense for both parties.  Darin Wagner and Marz Kord, the CEO’s, then proceeded to lay out benefits of the transaction:

• Significantly expands Wallbridge’s land holdings in Quebec (from 1,050 hectares to 73,900 hectares) along the Detour Gold Trend, improving the  company’s potential for further discoveries in the district as well as additional mine development flexibility;
• In addition to Fenelon, adds multiple Gold-focused properties, including the resource stage Martiniere Gold deposit, that have significant exploration upside within the prolific Abitibi Greenstone Belt, and (Grasset) a resource Ni-Cu-Co-PGE project that has option value;
• Increased market capitalization which has the potential to attract greater support from new investors seeking to participate in funding the potential future growth of Wallbridge;
• The combined entity will have an enhanced capital markets profile and a pro forma cash balance of approximately $67 million, which takes on particular importance given the extreme market volatility experienced over the past trading week, to advance the combined assets and pursue further growth opportunities.

All true.

But I’m struggling to see more than 50% upside for (WM) the combined entity this year.

As much as I like this partnership, the relationship began tragically August 2, 2016 – so let’s start there.

Why tragic?

Why am I thinking about this whole thing like a rom-com?

It’s because you can’t make this stuff up.  With the benefit of hindsight we know the story is ironic, kind of comical, and somewhat tragic for long-term shareholders of BAR.

A stock price chart comparison between the two simplifies the story (it’s below), starting August 2016 when Wallbridge bought Fenelon from Balmoral for $3.7 million.

Kord created wealth for shareholders of WM via a 733% gain!

Wagner destroyed wealth for shareholders of BAR over a 5-year time frame via a –57% loss (yet he’ll walk away from this far wealthier and smelling like a rose, total genius geologist).

I’m pretty sure I got those numbers right with help from Yahoo Finance.  Since selling (giving away) Fenelon for $3.7 million, BAR has declined 57% versus a 733% increase for WM.

One has been a big WINNER and one has been a big LOSER.

In fairness, Wagner didn’t know exactly what he had with Fenelon.  We can only presume he didn’t have any clue how fantastic this property would be given the $3.7 million sale price which now carries Wallbridge’s nearly HALF BILLION dollar market cap.

Hindsight is 20/20.  You don’t know what you don’t know, etc.  Kord and Wallbridge spent a whole heck of a lot of money drilling, too.  Money Wagner and Balmoral didn’t have.  So there’s no telling what position BAR would be in today, or how it would have performed over the last 5 years, better or worse, if it didn’t sell Fenelon.  There’s just no way of knowing.

One thing that is crystal clear, however, is that Wagner’s decision to sell Fenelon for $3.7 million didn’t age well.  Wagner’s decision didn’t age well at all considering Fenelon could host 3, maybe 5, or even 10 million ounces of Gold.

Wagner under-appreciated the value and upside potential at Fenelon yet again by selling Balmoral’s 1% NSR on the Fenelon Mine Property to Ely Gold Royalties (ELY, TSX-V) for $600,000 worth of cash and stock (October 2018).

Since then ELY has been a high-flyer, largely because of the increasing worth of its Fenelon royalty (the royalty Wagner gave away for a pittance).

Look – or as Uncle Joe Biden would say – LOOK! LOOK! LOOK!

I’m not complaining.  My cost basis on BAR is around 15 cents, so I’m a happy camper.  But that doesn’t mean I can’t complain on behalf of long-term BAR shareholders, who’ve lost half their money thus far and were down +90% at one point.

It really sucks to be down 90% when your neighbor is up 900%, all thanks to the property you sold them for $3.7 million!

Looking back you’d think it’s a deal Wagner wishes he didn’t do.

Wagner, if you could take a time machine back to 2016, would you still sell Fenelon for $3.7 million?

I’m guessing he’d argue, “I had to.  I had no other choice,” or something along those lines.  Funds were tight.  Market conditions were tough, etc.

Who knows, he may even go so far as to say, “Selling Fenelon to Wallbridge is really what saved the company.  Look at all the money they spent drilling, which ultimately led to making our surrounding property portfolio more valuable.”

Certainly, that would be putting a positive spin on it!  Talk about a Silver lining.

Anyway, in summary:  This whole story is a rom-com that begins and ends somewhat tragically for Balmoral’s long-term shareholders.

Given their vast acreage (73,900 hectares) along the SLDZ, including high-grade Gold deposits and Nickel deposits, a $110 million buyout price isn’t exactly the huge score most BAR shareholders were probably hoping for, not when a postage stamp sized piece of property (Fenelon) can be worth $500 million or a billion.  Maybe BAR holders with a cost basis of $1 or more will break even or make money by holding onto WM, maybe not.

I’ll continue to hold about 1/3 of my original position and I’m hoping for the best, but I think WM is in somewhat of a tough spot considering their end goal is acquisition.

The combined company (WM) wants to get acquired but Kirkland Lake (KL, TSX, NYSE) is most likely their only natural buyer – and if Kirkland plans on buying Wallbridge, do you really think they’d want the price to get carried away?

WM’s stock price might not be something Kirkland and CEO Tony Makuch care to control, or influence, even if they could.  But over and above that I’m also skeptical about anything more than a 50% price advance in WM this year because they’re now more of a “development” story and less of a “discovery” story, which has been a tougher spot to be in lately.

50% ain’t bad.  I just have a hard time seeing WM doubling or more this year given the circumstances.  And your average WM shareholder is probably expecting a doubling, or more.  So those expectations might be a little too high, that’s all I’m trying to say.

Hopefully I’m wrong, though.  Hopefully WM goes on an absolute tear!  Hopefully Wallbridge shocks and awes the market again and again, like what they’ve been doing.  Hopefully they double or triple from here and get bought out for $2 bucks or more.  That would imply a $1.42 share price for BAR holders and everyone will be happy, or relatively happy (so it goes sometimes in relationships).

Here’s to hoping.

p.s. With those thoughts in mind I’ll leave you with one final thought…

There’s always an outside chance someone else ups Wallbridge’s bid and the marriage is annulled before it even starts.  $110 million is an uppable number in this market, wherein lies increasing levels of “urgency” at the corporate level.

The post The Wallbridge-Balmoral Matrimony appeared first on Penny Stock Experts.

“We have a strategic plan for the Los Ricos district which includes consolidation of concessions and drilling for ounces.  With the completion of the latest concession acquisitions and our financing, we will be adding drill rigs and accelerating our exploration to showcase the Los Ricos district to be one of the most prospective in Mexico,” said Brad Langille, CEO and owner of 10.8 million shares of GGD.  “All the elements are now in place for us to execute on creating more value at Los Ricos for our shareholders.”

The new concessions come with a legacy database of 50 historical drill holes with grades as high as 2,109 g/t Silver equivalent (6.4 g/t Au and 1,629 g/t Ag) over 24 m.

Langille kinda surprised the market recently by announcing a $25 million financing that halted GGD’s momentum, but only temporarily.  When you’re in a bull market I think you just want to hunker down and hold onto companies like GoGold, one of few pure play Silver producers with Silver and Gold exploration leverage (Los Ricos is presumed to be a multi-million ounce Gold district).  Having a management team with a consistent track record of value creation is the cherry on top.

Maybe Langille could have struck a more shareholder friendly deal, but since he owns 10.8 million I thinks it’s safe to assume he tried his darndest to create a win-win situation.  With this newly raised capital GoGold has $47 million (U.S.) in potential funds available (including receivables from the Mexican government, warrants, and options outstanding).  That’s the kind of money you need to move fast and do some really heavy lifting.  And like I said before I think Langille knows he’s got to get GoGold prepped perfectly for a sale within 2 or 3 years – the additional capital in hand today is the fuel that gets them there.

Breakout Week For Fiore (F, TSX-V)!

I’ve written extensively about this play in recent months, and there’s no reason it won’t hit and perhaps exceed measured Fib. resistance in the mid-70’s before the end of this quarter.  Fiore‘s a small-scale cash flow generating producer and their only product (Gold) is rising in price while costs at the Pan mine rise only slightly in H1 versus last year.  Slightly higher costs relating to infrastructure improvements and strip ratio should become tailwinds during H2 2020.

‘Twas a breakout week on the chart for F.  The stock’s now broken out convincingly on volume above 57 cents, which now becomes support.  As per John’s chart, next measured fib resistance is in the mid-70’s.

We’re still waiting on preliminary economics for Gold Rock (promised this quarter).  Perhaps they’ll have that in time for PDAC.

Don’t forget, Fiore‘s got one of the largest land packages prospective for Carlin-style deposits, too. At 200 sq km the land package is larger than just about any other junior’s.

F closed at a new 2-year high of 63 cents Friday!

Strong fundamentals + strong chart = going higher.

The post GoGold (GGD, TSX) launches “Monte del Favor” As Exploration Project Numero Dos In Los Ricos District appeared first on Penny Stock Experts.

Trump Eyes U.S. Opportunities In Ecuador

After a decade or more where capital was leaving the country, capital for exploration and mining activities started arriving in Ecuador in 2018.  As a “new” industry it’s taken some time to work out the kinks and barriers to business, but it’s starting to feel like Ecuador’s time has arrived in 2020.

Of note this week, the President of Ecuador (Lenín Moreno) was a guest at the White House (it was the first visit of an Ecuadorean President to the White House in nearly 2 decades).  Trump said Ecuador had been doing things a little crazy but now they recognize the importance of having positive working relationships with the United States.

A high-level delegation of U.S. trade and investment officials will travel to Ecuador in April, the White House said following Wednesday’s meeting between President Trump and his Ecuadorean counterpart.

The April meetings will seek to build on a recently signed Growth in the Americas agreement that opens Ecuador to U.S. investment in energy and infrastructure.

SRL is a thinly traded stock and it’s tightly held (the Salazar family and 1 strategic investor out of London, the Arlington Group, own more than 50%).  The combination of thin trading and majority insider ownership is a double-edged sword, but you can make a lot of money when the blade is working in your favor! With discovery stage drilling on 4, 5 or possibly 6 projects this year, and the general lack of awareness of Salazar (they’re working hard internally though, finally, to market SRL), any new buying interest will drive price higher quite easily.

I’ve been tracking and reporting on SRL since the low teens.  Now it’s trading comfortably in the low 20’s and there doesn’t seem to be much left for sale at that level.  Place your bids and hope they get filled is all I can say.  Salazar’s 25% carried interest in Curipamba, alone, is worth approximately 40 cents, and speculation surrounding drilling could create some excitement this year.

The post Salazar’s (SRL, TSX-V) Fantastic 4-Year Patriotic Chart! appeared first on Penny Stock Experts.

Patience isn’t exactly a strong suit for most traders and investors.

Well, Galway already provided a 6-bagger for some shareholders.  It happened fast, too.  GWM skyrocketed from 10 cents to 60 cents between April and August of 2016.

Since then GWM hasn’t advanced whatsoever in terms of stock price appreciation.  It did provide 1 great trading opportunity about a year ago.  We positioned ourselves in GWM at around 15 to 20 cents prior to assay results after learning Galway had hit some nice sections of visible Gold while drilling.  When the news came in, some subscribers were able to cash out with 200% gains, or better, within a month.

I’m sure some of you, like myself, continued to hold GWM because Galway’s Clarence Stream Project (New Brunswick) really is shaping up to be a “district”.

With each round of drill results and each news release it’s becoming glaringly obvious that Clarence Stream is in fact a new Gold district in eastern Canada.  Their next resource estimate should show they’ve got 1+ million ounces of open-pit material grading nearly 2 g/t.  Then if you start extrapolating out over the 65 km of strike, which is littered with high-grade Gold boulders in soil anomalies, a high percentage of which lead to drilling discoveries, I think it’s easy to see Clarence Stream will keep growing (Galway is like a mini-Marathon – MOZ, TSX – at this point).

Galway published some more solid results Thursday, including 6.3 g/t Au over 30 m.  Drilling also intersected visible Gold in 3 separate locations within 1 hole, located about 230 m west of the prior western-most George Murphy Zone (GMZ) drilling.  Assays are pending.

“Galway is rapidly expanding the George Murphy Zone in both vertical and horizontal dimensions.  The structure containing 6.3 g/t Au over 30 m was drilled up-plunge of known mineralization, towards surface, to enable it to become part of a pit-constrained resource estimate.  The new discovery to the north contains strong quartz veining.  New drilling to the west is intended to shrink what was an 800 m gap between the Richard and GMZ.  Galway is demonstrating that its interpretation that the Jubilee, Richard and George Murphy Zones, which cover 2.5 km of strike length, are part of the same system. These 3 zones are not included in the existing Clarence Stream resource, as 2 of them, the GMZ and Richard, were discovered by Galway after the last resource estimate was released in September 2017.  These results, and those that precede them, demonstrate that Clarence Stream is an emerging new Gold district in North America,” cited Robert Hinchcliffe, President and CEO of Galway.

I don’t know what kind of high-grade assays it would take to create some shock and awe for GWM, but I do know I like project and potential for shock and awe (fast money).  Hinchcliffe sure likes GWM and Clarence Stream, during the past year he’s purchased 1.5 million shares in the open market.

Galway’s got 3 rigs on site and plans to drill 25,000 m this year.

At 33 cents per share Galway’s market cap is $42 million.

And don’t forget Galway also owns 100% of a relatively high-grade Zinc and Gold-rich VMS deposit on its Estrades Project.  Estrades is a wildcard for an unexpected new discovery and/or non-dilutive financing.  Hinchcliffe will look to monetize Estrades when Zinc prices improve.

The post Galway Metals (GWM, TSX): What Will It Take To “Shock And Awe” The Market? appeared first on Penny Stock Experts.