cpereira@noblefcm.com, Author at Channelchek

Defense Metals Corp. (DFMTF) – Recent Work Affirms High Concentrate Grade and Recoveries Across a Range of Feed Grades

Posted on October 11, 2023October 11, 2023 by cpereira@noblefcm.com

Wednesday, October 11, 2023

Defense Metals Corp. is a mineral exploration and development company focused on the acquisition, exploration and development of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals owns 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Proving out the flowsheet. Defense Metals reported recent results of comprehensive comminution and beneficiation test work conducted by SGS Canada using samples from the Wicheeda Rare Earth Deposit. The three key rare earth-bearing lithologies in the Wicheeda deposit are: 1) higher-grade dolomite carbonatite (DC) comprising 73% of the deposit, 2) xenolithic carbonatite (XE) representing 24%, and 3) syenite (SYN). The DC material is expected to comprise most of the mill feed with the deeper XE and SYN mined later. SGS has performed a thorough investigation of the comminution and beneficiation characteristics of a wide variety of samples.

Beneficiation results. A total of 90 open-circuit flotation tests, using 1 or 2 kg of feed, were conducted on 17 individual variability samples, various composites, and blends. At a feed grade of 3%, the best fit line indicates 80% recovery to a 45% total rare earth oxide (TREO) concentrate. Closed circuit operations, as in a flotation plant, would deliver higher recoveries and grades. Favorable results were obtained in a locked cycle test on a deposit composite with a feed grade of 2.9% resulting in a rare earths recovery rate of 85% at a concentrate grade of 50.7% TREO.

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Alvopetro Energy (ALVOF) – Gas sales in September take a big drop

Posted on October 11, 2023October 11, 2023 by cpereira@noblefcm.com

Wednesday, October 11, 2023

Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Gas sales declined due to a temporary reduction in demand. Gas sales to Bahiagas in September averaged 6.8 MMcf/d down 35% from August sales and well below peak sales of 15.8 MMcf/d in the March quarter. Gas sales were below take or pay agreements by 1.2 MMcf/d, which will be treated as deferred revenue. Gas sales had been declining in recent months because Alvopetro’s joint venture partner in its primary field had increased its nominations for gas sales following the start-up of its plant. The decline in September is related to lower demand and comes in addition to nomination issues.

Management views the decline as temporary and is working to increase production in 100% owned fields. As we have indicated before, increased partner nominations will result in lower partner nominations in the latter years of well lives. In addition, Alvopetro is making progress drilling new wells that do not have nomination issues. Regarding the drop in demand, we would remind investors that the city of Bahia is a vibrant growing city that has limited gas supply options beyond Alvopetro. We are not concerned with a one-month decline in demand but recommend investors monitor demand issues going forward.

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Comtech Telecommunications (CMTL) – Major New Awards

Posted on October 10, 2023October 10, 2023 by cpereira@noblefcm.com

Tuesday, October 10, 2023

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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U.S. Army Award. Yesterday, Comtech announced that it was recently awarded a U.S. Army contract with a maximum ceiling value of $544 million. The task order was awarded on Comtech’s existing contract with the U.S. Army, which leverages the ten-year, $5.1 billion Global Tactical Communications Systems II IDIQ contract vehicle.

Details. Under the contract, Comtech will provide onsite professional engineering services as well as supply and support the Company’s market leading satellite and terrestrial networking communications technologies for the Project Manager Tactical Network for the Global Field Service Representative (GFSR) support program. The GFSR program provides ongoing communications and IT infrastructure support for the Army, Air Force, Navy, Marine Corps, and NATO-enabling U.S. and coalition forces to maintain robust, resilient, and secure connectivity for global all-domain operations in all environments.

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MAIA Biotechnology (MAIA) – THIO-101 To Add US Clinical Sites and Present Data At ESMO

Posted on October 6, 2023October 6, 2023 by cpereira@noblefcm.com

Friday, October 06, 2023

MAIA is a targeted therapy, immuno-oncology company focused on the development and commercialization of potential first-in-class drugs with novel mechanisms of action that are intended to meaningfully improve and extend the lives of people with cancer. Our lead program is THIO, a potential first-in-class cancer telomere targeting agent in clinical development for the treatment of NSCLC patients with telomerase-positive cancer cells. For more information, please visit www.maiabiotech.com.

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

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FDA Clearance For THIO-101 Has Been Received. MAIA announced that it has received clearance of its IND application, allowing the THIO-101 trial to open clinical sites in the US. While the Phase 2 THIO-101 trial has been underway in Australia and Europe since July 2022, the IND clearance was needed for starting clinical treatment sites in the US. We see this as a strong positive, since US clinical data is considered the most reliable standard for data. Since THIO-101 is a multi-national trial, this should provide support for the potential application for FDA approval.

Preliminary Results From THIO-101 Have Been Scheduled For Presentation At ESMO. The THIO-101 trial tests THIO in patients with progressive or relapsing non-small cell lung cancer (NSCLC) after being treated with a checkpoint inhibitor. Patients receive treatment with a combination of THIO and Libtayo (cemiplimab), giving two mechanisms of action against the cancer cell. The poster presentation will be presented at the European Society for Medical Oncology on October 23, 2023.

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Kratos Defense & Security (KTOS) – An Acquisition, a Contract, and More Opportunity

Posted on October 6, 2023October 6, 2023 by cpereira@noblefcm.com

Friday, October 06, 2023

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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Acquisition. Wednesday night, Kratos filed an S-3 disclosing the acquisition of Sierra Technical Services, Inc. (“STS”) for 866,026 shares, with an additional 979,038 shares subject to an earnout. Based on Wednesday’s $14.81 closing price, the first share tranche is valued at $12.8 million, with the earnout portion valued at an additional $14.5 million.

Award. In early August, STS was named as a “major subcontractor” for a $77.2 million total value award from the Pentagon’s Test Resources Management Center. The program is a re-start of a previous program to develop a fighter-sized stealthy target drone that can serve as a stand-in for advanced adversary combat jets and their electronic warfare capabilities in particular. Significantly, according to the award, “Upon successful completion of this prototype effort, the Government anticipates that a follow-on production effort may be awarded via either contract or transaction, without the use of competitive procedures if the participants in this transaction successfully complete the prototype project as awarded.”

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Comstock Inc. (LODE) – Innovating Leading Technologies for a Low Carbon Future

Posted on October 6, 2023October 6, 2023 by cpereira@noblefcm.com

Friday, October 06, 2023

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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Market leading yields coupled with low carbon intensities. Comstock recently achieved two significant milestones within its cellulosic fuels business. These include biofuel production yields of more than 100 gallons per dry tonne of woody biomass on a gasoline gallon equivalent (GGE) basis and market-leading low carbon intensity (CI) scores of 16 or below for cellulosic ethanol and 15 for the company’s proprietary hydro-deoxygenated Bioleum oil (HBO). The CI score is measured in grams of carbon dioxide equivalent per megajoule of energy.

Differentiation provides a key competitive advantage. HBO is a proprietary drop-in bio-intermediate used in the production of sustainable aviation and renewable diesel fuels. It increases the diversity of hydro-processed, fat-based feedstock and significantly reduces carbon intensity scores from what is currently commercially achievable. For example, the carbon intensity of fossil fuels is industry-benchmarked between 80 and 95. Moreover, yields of over 100 GGE exceed the U.S. Department of Energy’s production goals of less than 75 GGE per tonne. While the higher yields are a key selling point in that they surpass existing cellulosic-derived biofuel production yields, leading biofuel refiners have indicated that lower CI scores are what significantly reduce the carbon footprint of their overall portfolios.

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Bit Digital, Inc. (BTBT) – September Slightly Down

Posted on October 6, 2023October 6, 2023 by cpereira@noblefcm.com

Friday, October 06, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Mining. Bit Digital had a decrease in BTC production in September, producing 130.2 BTC, a 7% decrease compared to the prior month of 133.0. The decrease was primarily driven by an increase in network difficulty and a reduction in active hash rate that occurred towards the end of the month. The active hash rate was approximately 1.19 EH/s as of September 30, 2023, as roughly 600 PH/s of miners went offline due to a power utility mandated maintenance outage from September 26, 2023, to October 6, 2023 with an additional 250 PH/s of miners going offline towards the end of the month following the conclusion of a hosting contract at one facility. The Company is in the process of relocating those miners to alternative hosting sites.

Staking. The Company had approximately 13,594 ETH (13,188 last month) actively staked in native and liquid staking protocols as of September 30, 2023, with 11,200 natively staked and 2,394 ETH deployed in liquid staking protocols. The Company has 512 ETH (16 Nodes) deposited but in queue to be activated on the Ethereum staking network, which are estimated to come online by the end of October 2023. The blended APY for the month was roughly 4.1%.

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Bitcoin Depot (BTM) – Reduces Potential Stock Overhang

Posted on October 5, 2023October 5, 2023 by cpereira@noblefcm.com

Thursday, October 05, 2023

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Amended PIPE Funding Agreement. The company announced that it is amending its PIPE agreement, which was established when it went public through a SPAC. The amendment allows several private investors to purchase roughly 3.4 million Series A Convertible Preferred shares from the original PIPE investor.

PIPE agreement. In accordance with the agreement, 4.3 million Convertible Preferred shares and 0.7 million common shares and $50 million cash ($10 pre share) were held in trust. After going public, the company received cash per share from the trust at the volume weighted average price (VWAP) of the shares (rather than $10/share). The shares would settle in increments over several reference periods. The PIPE investor would receive a cash redemption for the difference between $10 and the VWAP of the shares for a given reference period. For example, if the VWAP was $3 for a reference period, the company would receive $3 per share and the trust would return $7 per share to the PIPE investor.

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Salem Media Group (SALM) – Substantially Improves Its Financial Health

Posted on October 5, 2023October 5, 2023 by cpereira@noblefcm.com

Thursday, October 05, 2023

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

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Sells Church Products. On September 29, 2023, the company entered into an agreement to sell the Salem Church Products business to Gloo LLC for $22.5 million in cash and a promissory note in the principal amount of $7.5 million. Additionally, the company announced entering into membership unit purchase agreement with Gloo in exchange for an advertising credit. In our view, the sale is attractive and provides a timely influx of cash that assuages liquidity concerns.

Membership unit purchase agreement. As stipulated in the agreement, the company entered into a put agreement with Gloo Holdings for 833,333 series A membership units, which are redeemable after January 1, 2027 for a minimum price of $10 million. In exchange for the units, the company will provide an advertising credit of $10 million to Gloo Holdings that expires on December 31, 2028.

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V2X, Inc. (VVX) – A CFO Change

Posted on October 4, 2023October 4, 2023 by cpereira@noblefcm.com

Wednesday, October 04, 2023

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A CFO Transition. V2X announced this week that the Company has appointed Shawn Mural as its Senior Vice President and Chief Financial Officer (CFO). Mr. Mural will oversee all finance and accounting functions, including controllership, finance operations, planning, tax, treasury, investor relations, and corporate development. The appointment follows Susan Lynch’s retirement, which was effective on September 28, 2023.

Background on Shawn Mural. Mr. Mural has extensive experience in the old Raytheon. He joins V2X management from RTX Corporation and its subsidiaries, where he served most recently as Vice President of Finance and CFO of Raytheon. He provides experience in various leadership roles, as well as managing large integration and operational excellence-related activities in his 24 years at RTX. We believe Mr. Mural’s long tenure at Raytheon, where a good chunk of V2X’s business came from, will be a positive going forward.

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PDS Biotechnology Corp. (PDSB) – Strong Phase 2 Survival Data, But Stock Sells Off Anyway

Posted on October 4, 2023October 4, 2023 by cpereira@noblefcm.com

Wednesday, October 04, 2023

PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technology platforms. Our Versamune®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate and ovarian cancers.

Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

PDS Biotech Updated Phase 2 Survival Data. PDS Biotech updated its Phase 2 VERSATILE-002 data presented at the ACSO conference in May 2023. This trial is testing the combination of PDS0101 and pembrolizumab (Keytruda, from Merck) in recurrent or metastatic head and neck squamous cell carcinoma (R/M HNSCC). The data presented at ASCO in May included patients followed up to 12 months, while the update followed patients up to 24 months.

Survival Of 74% Is A Significant Improvement. Patients that were followed for two years had an overall survival rate of 74% compared with published studies showing less than 30% survival. Overall survival at 12 months at 80% compares with published results of 30% to 50%. Tumor shrinkage was seen in 60% (31/52) and confirmed by second MRI scan (overall response rate, ORR) in 27% (14/52 patients). Treatment related adverse events (TRAEs) were limited to Grade 3 in 13% (8/55) patients, and none had Grade 4 or Grade 5. We see these data as significantly improved over pembrolizumab alone or with chemotherapy.

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Labrador Gold Corp. (NKOSF) – Drilling to Resume Next Week

Posted on October 3, 2023October 3, 2023 by cpereira@noblefcm.com

Tuesday, October 03, 2023

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

The final stretch. Drilling at Labrador Gold’s 100%-owned Kingsway gold project is targeting the Appleton Fault over a 12-kilometer strike length. The drilling is part of the company’s ongoing 100,000-meter diamond drilling program of which 83,000 meters of drilling has been completed. The company is beginning to receive assays back from the laboratory for samples from approximately 8,877 meters of core which will be released in batches once they have been interpreted. With ~C$11.5 million in cash, Labrador Gold is well-funded to complete the remaining 17,000 meters of planned drilling.

Drilling resumes next week. Labrador Gold expects to resume drilling next week with three rigs. Drilling will target the Gap Zone between the Big Vein and Pristine targets, the Knobby Occurrence, and the Golden Glove target. Permits have been received to drill in the Gap Zone and in the area south of the Big Vein target to the southern boundary of the property which encompasses the Knobby Occurrence and Golden Glove.

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Orion Group Holdings (ORN) – More Awards

Posted on October 2, 2023October 2, 2023 by cpereira@noblefcm.com

Monday, October 02, 2023

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

More Awards. In an 8-K release late last week, Orion Group Holdings reported that on September 22nd its Marine segment business entered into a design-build contract with an undisclosed customer valued at approximately $120 million. In addition, the Company noted that it was recently awarded new contracts in both its Concrete and Marine segments for a combined total of approximately $121 million. Unfortunately, the 8-K does not provide a date range for the $121 million of additional contracts so we do not know if the figure includes the $58 million of new awards announced in early August or if the $121 million is in addition to the $58 million.

Awaiting Additional Detail. While the Company has yet to issue a press release on the new business, we believe the Company likely will, at the same time providing additional detail regarding the nature of the work, timing, and customer details. In any case, the new awards continue a recent trend for Orion of adding substantial new business which should result in improved operating results in the future.

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