Thursday, March 18, 2021

Gevo, Inc. (GEVO)
Looking Beyond Losses to Brighter Future

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

As expected, 4Q2020/FY2020 operating losses continued. 4Q2020 revenue was minimal at $0.5 million and EBITDA was negative $5.1 million. FY2020 revenue was $5.5 million and EBITDA was negative $18.3 million. Recent capital raises increased cash to $531 million (on Feb 26th) and materially reduced funding risk.


Tune in for today’s fireside chat on financing.  Water Tower Research will host another fireside chat with Gevo management on March 18th at 2:30pm EST. Gevo will be represented by CEO Dr. Patrick Gruber and CFO Lynn Smull. The main topic is slated to be project financing efforts. Details are posted at www.gevo.com …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Gevo Reports Fourth Quarter 2020 Financial Results

 

Gevo to Host Conference Call Today at 4:30 p.m. EDT/2:30 p.m. MDT

ENGLEWOOD,
Colo. – March 17, 2021 – Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the fourth quarter of 2020 and recent corporate highlights.

Recent Corporate Highlights

• In January 2021, Gevo announced the plans for its Net-Zero 1 Project (“Net-Zero 1”) to be located in Lake Preston, South Dakota.  Net-Zero 1 is expected to produce about 45 MGPY of energy dense liquid hydrocarbons that, when burned as transportation fuels, should have a net-zero greenhouse gas footprint across the whole of the life cycle based on Argonne National Laboratories’ GREET model.  Net-Zero 1 is being designed to eliminate the fossil based energy footprint to run the production facility.  Importantly, Net-Zero 1 is expected to produce ~400 million pounds per year of protein rich animal feed, and about 30 million pounds per year of corn oil.  The 45 MGPY of hydrocarbons would be sold into the gasoline and jet fuel markets under existing take-or-pay contracts.  Net-Zero 1 is expected to produce its own biogas.  The biogas would be used to heat the production facility and provide approximately 30% of the electricity needed to power the production facility.   In addition, wind power is being developed and is expected to supply the other 70% of electricity needed to run the production facility.  Green hydrogen will also be produced from the renewable electricity as part of the productions processes at Net-Zero 1.  Net-Zero 1 is also expected to have its own water treatment plant to further improve the environmental footprint.
• In February 2021, Gevo signed an amendment to its Fuel Sales Agreement with Scandinavian Airlines System (“SAS”) for sustainable aviation fuel.  The volume in the amendment is 5 million gallons per year, and is a “take-or-pay” contract worth ~$100 of revenue across the life of the contract.  This volume for the SAS contract is expected to be supplied by Gevo’s second Net-Zero Project beginning in 2024.
• As of February 26, 2021, Gevo had approximately $530.6 million in cash and no significant debt.
• Gevo believes it has the cash on the balance sheet needed to fund the project equity required for Net-Zero 1.  A tax-exempt private activity bond debt structure has been developed and vetted by Citigroup which Gevo currently expects to utilize.  In order to close the financing for Net-Zero 1, the engineering design and costs first need to be delivered in suitable form for project style financing, and the EPC firm needs to be selected prior to the bond offering.  The financial close for Net-Zero 1 is targeted for the first half of 2022.
• In January 2021, Gevo announced that it had selected Koch Process Solutions to provide the Front End Engineering and Design services (FEED) for Net-Zero 1.  FEED is expected to be completed in December of 2021.  The completion of the FEED work is necessary before the financing of Net-Zero 1 can be completed with Citigroup Global Markets, Inc.
• In January 2021, Gevo completed a registered direct offering of 43.7 million shares of common stock (or common stock equivalents) at $8.0 per share. Total proceeds were $321.7 million, net of closing costs.
• In January 2021, Gevo raised $135.8 million, net of fees, by issuing 24.4 million shares of common stock through its At-the-Market (“ATM”) offering program.
• In December 2020, the holders of Gevo’s 12.0% Convertible Senior Secured Notes due 2020/2021 (the “2020/21 Notes”) converted $12.7 million in aggregate outstanding principal amount of 2020/21 Notes (including the applicable make-whole payment) into an aggregate of 5,672,654 shares of common stock.  As a result, as of December 31, 2020, all obligations under the 2020/2021 Notes had been fully paid and satisfied.
• In December 2020, Gevo entered into an option agreement for the right to purchase approximately 240 acres of land near Lake Preston, SD.  Gevo expects to construct its Net-Zero 1 Project on this land. 

2020 Fourth Quarter Financial Highlights

• Ended the quarter with cash and cash equivalents of $78.3 million. 
• Revenue totaled $0.5 million for the quarter compared to $6.9 million in Q4 2019.
• Hydrocarbon revenue totaled $0.4 million for the quarter compared to $1.0 million in Q4 2019.
• Loss from operations of ($7.0) million for the quarter compared to ($6.2) million in Q4 2019.
• Non-GAAP cash EBITDA loss[1] of ($5.1) million for the quarter compared to ($4.0) million in Q4 2019.
• Net loss per share of ($0.15) based on 120,017,120 weighted average shares outstanding for the quarter compared to ($0.50) based on 13,659,944 weighted average shares outstanding for the quarter in Q4 2019.
• Non-GAAP adjusted net loss per share[2] of ($0.07) based on 120,017,120 weighted average shares outstanding for the quarter compared to ($0.50) based on 13,659,944 weighted average shares outstanding for the quarter in Q4 2019.

Commenting on the fourth quarter of 2020 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “Net-Zero 1 is a first of a kind, off-the-grid type of plant where we are putting great effort into making Net-Zero 1 the most sustainable plant it can be.  I’m glad we have the customers secured, Citigroup to help us with the debt financing, and that the economics of Net-Zero 1 are attractive at this stage.  I’m also pleased that we are making progress on filling up production capacity at Net-Zero 2 as evidenced by the recent SAS contract.  We are making great progress, fast.”

Fourth Quarter 2020 Financial Results

Revenue for the three months ended December 31, 2020 was $0.5 million compared with $6.9 million in the same period in 2019.

Revenue
derived at our production facility located in Luverne, Minnesota (the “Luverne Facility”) related to ethanol sales and related products was nil compared to $5.9 million for the fourth quarter of 2020. As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains at the Luverne Facility in March 2020.  The Luverne Facility is currently shut down until further notice. Currently, the South Hampton Facility is not producing renewable premium gasoline or jet fuel. Gevo expects to produce isobutanol in intermittent campaigns during 2021 to supply the demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”) so that renewable premium gasoline or jet fuel can be produced in 2021.

During the three months ended December 31, 2020, hydrocarbon revenue was $0.4 million compared with $1.0 million in the same period in 2019 as a result of decreased shipments of finished products from our demonstration plant at the South Hampton Facility. Gevo’s hydrocarbon revenue is comprised of sales of alcohol-to-jet fuel, isooctane and isooctene.

Cost of goods sold was $2.0 million for the three months ended December 31, 2020, compared with $9.4 million in the same period in 2019, primarily as a result of terminating ethanol production at the Luverne Facility as discussed above. Cost of goods sold included approximately $0.9 million associated with the production of isobutanol and related products and maintenance of the Luverne Facility and approximately $1.1 million in depreciation expense for the three months ended December 31, 2020.

Gross loss was $1.4 million for the three months ended December 31, 2020, versus a $2.5 million gross loss in the same period in 2019.

Research and development expense increased by $1.7 million during the three months ended December 31, 2020 compared with the same period in 2019, due primarily to an increase in consultant and personnel expenses.

Selling, general and administrative expense increased by $0.2 million during the three months ended December 31, 2020, compared with the same period in 2019, due primarily to an increase in consulting and personnel costs offset by a decrease in investor relations and marketing costs.

Loss from operations in the three months ended December 31, 2020 was $(7.0) million, compared with a ($6.2) million loss from operations in the same period in 2019.

Non-GAAP cash EBITDA loss[3] in the three months ended December 31, 2020 was ($5.1) million, compared with a ($4.0) million non-GAAP cash EBITDA loss in the same period in 2019.

Interest expense in the three months ended December 31, 2020 was $0.5 million, a decrease of $0.1 million as compared to the same period in 2019, primarily due to a decline in amortization of original issue discounts and debt issuance costs compared to the same period last year and the conversion of $2.0 million of 2020/21 Notes in July 2020.

In the three months ended December 31, 2020, Gevo recognized net non-cash loss totaling $1.4 million due to the conversion of $12.7 million of 2020/21 Notes during December 2020.

During the three months ended December 31, 2020, Gevo recognized net non-cash loss totaling $8.6
million due to changes in the fair value of our 2020/21 Notes embedded derivative liability resulting from the increase in the price of our common stock prior to the conversion of the $12.7 million of 2020/21 Notes.

Gevo incurred a net loss for the three months ended December 31, 2020 of ($18.1) million, compared with a net loss of ($6.8) million during the same period in 2019. Non-GAAP adjusted net loss[4] for the three months ended December 31, 2020 was ($8.1) million, compared with a non-GAAP adjusted net loss of ($6.8) million during the same period in 2019.

Cash at December 31, 2020 was $78.3 million, and the total principal face value of 2020/21 Notes was $0.

Webcast
and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Carolyn M. Romero, Chief Accounting Officer, and Geoffrey T. Williams, Jr., Vice President – General Counsel & Secretary. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial (833) 729-4776 (inside the U.S.) or (830) 213-7701 and reference the access code 3178466#, or through the event weblink: https://edge.media-server.com/mmc/p/xhvdnuqd.

A replay of the call and webcast will be available two hours after the conference call ends on March 17, 2021. To access the replay, please visit https://edge.media-server.com/mmc/p/xhvdnuqd. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

 

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s business development activities, Gevo’s Net-Zero Projects, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA excludes depreciation and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

 

Gevo,
Inc.

 

 

 

 

 

Investor and Media Contact

+1 720-647-9605

IR@gevo.com

 

How Does Uranium Fit Into the ESG Energy Landscape?

 

Since the November elections in the U.S., so-called ESG (environmental, social, and governance) stocks have seen a dramatic uptick as investors anticipate a shift in policy away from fossil fuels and towards cleaner-burning energy sources.

While perhaps not an obvious clean energy investment play, uranium and rare earth producers have benefitted from this ESG boom.  Despite the known risks associated with nuclear power, nuclear power plants represent a carbon and emission-free source of energy.

The months following the Fukushima disaster, in March 2011, saw a drop in nuclear-power generation of about 11%, but the industry remained strong, representing about 10% of total global electricity generation.  Today, In the U.S., nuclear power generates about 20% of the total electricity consumed.

Upward pressure on uranium’s price?

The price of uranium is driven by nuclear power demand, global supply and inventories, and macroeconomic and political factors. The highest demand for uranium is nuclear power use. Factors impacting this demand are the price of alternative generating fuels like coal, oil, and natural gas. Higher fossil-fuel prices increases demand for nuclear generation.

Nuclear accidents such as Chernobyl or the Fukushima tsunami have the potential to very quickly turn public sentiment against nuclear generation. These two accidents (Chernobyl 1986) and Fukishima Daiichi (2011) are the only two events with reported release of radioactivity. Although public sentiment towards nuclear quickly turned negative after these two and the Three Mile Island (1979) cooling malfunction, which did not involve radioactive release, there have been over 18,500 cumulative reactor-years of commercial nuclear power operation in 36 countries. Although this track record puts public safety numbers inline or lower than many other acceptable industries, it is still a factor in public policy.

Electricity demand is often correlated with a strong economy. When world economies are expanding, industries and consumers require more electricity. This increased demand drives more demand from all sources of power. With current politics leaning more heavily toward non-fossil fuel solutions to satisfy demand increases, nuclear power is again on the rise.

The current U.S. and global environment is one where demand for energy is increasing. Traditional generating fuels such as coal and oil are at odds with the current environmentally minded political climate. Fuels with minimum carbon emissions are gaining in popularity, adoption, and government support.

 

 

Some Companies Involved in Uranium Production

Energy Fuels (UUUU)

Energy Fuels is the leading U.S. producer of uranium and vanadium, and an emerging player in the commercial rare earth business where its work is helping to reestablish a fully integrated U.S. supply chain. The company boasts more production capacity, licensed mines and processing facilities, and in-ground uranium resources than any other U.S.-based producer.

Energy Fuels recently announced that they had received the first shipments of natural monazite ore, with commercial recovery of rare earths expected to begin in the U.S. in the coming weeks, as part of their increased “rare earths” focus.  In the press release, Mark S. Chalmers, President and CEO of Energy Fuels stated: “Over the past few months, Energy Fuels, Neo and Chemours have quietly worked to create something very significant: a new, fully-integrated, U.S.-Europe rare earth supply chain. This weekend’s shipments of monazite ore from Chemours to Energy Fuels marks the beginning of operations for what we believe will become a burgeoning supply chain. There is a lot of excitement building for rare earths, because they make many clean energy and advanced technologies possible, including electric vehicles, wind generation, batteries, and advanced electronics. Today’s announcement is a key milestone as our companies create, refine, and grow a sustainable rare earth supply chain capable of supplying the growing demand for clean technologies in the U.S. and Europe.

Over the past three months, the UUUU price per share has increased over 75%, with the company’s market cap recently surpassing $750MM.

Watch the video
replay of Energy Fuels CEO Mark Chalmers presentation at NobleCon17 (January 2021).

 

enCore Energy Corp (ENCUF)

enCore Energy is a domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer, based in the U.S. In-site recovery mining involves leaving the ore in the ground, dissolving the minerals in place and pumping the solution created to the surface.  enCore’s flagship ISR project hosts an indicated mineral resource containing 26.6 million pounds of uranium.  The company also has several high-grade conventional projects in the U.S.

In January, 2021 enCore Energy acquired Westwater Resources’ Texas-based uranium production and resource assets, which included two licensed in-situ recovery uranium production facilities, as well as mineral exploration leases in Texas, and more than 270 square miles of deeded mineral rights in New Mexico. 

William M. Sheriff, Executive Chairman of enCore Energy stated “This transformational acquisition is the first significant step to build enCore into a domestic uranium producer. Our experienced and accomplished management team believes that a major change is coming in the uranium market in the next 12 to 24 months. The recent impressive strength in the uranium equity market is evidence of a broader realization within the financial community of the early changes in the dynamics of the uranium market. In addition to the key acquisition of licensed production facilities in Texas, enCore will hold the leading land position in New Mexico, consolidating the large Santa Fe and Frisco railroad “checkerboard” mineral rights land grant running through most of the Grants mineral belt.

Shares of ENCUF have traded over 60% higher over the past 3 months.  The company’s market cap is just under $150MM.

Watch the video
replay of encore Energy CEO Paul Goranson and Executive Chairman William Sheriff  presentation at NobleCon17 (January 2021).

 

Standard Uranium Ltd. (STTDF)

Standard Uranium is a pre-discovery uranium exploration company based in Canada.  The company’s primary focus is its Davidson River flagship project in the Southwest Athabasca Uranium District.

In February, the company began its phase II winter drill program at its Davidson River Project.  The project will consist of ~4500m of diamond drilling in 9 holes. Jon Bey, President, CEO and Chairman commented: “It is great to see the drills turning again on our Davidson River Project and to have the Aggressive Drilling team working with us once again. Their experience with our Phase I drilling program, and in this region, will go a long way to help us in making a high-grade uranium discovery. Our technical team have prepared an exciting drill program and I look forward to getting to the project site to view core with them.”

STTDF has risen 26% over the past 3 months.

Watch the Video
Replay  of Standard Uranium CEO Jon Bey presentation at NobleCon17 (January 2021).

 

Ur-Energy Inc. (URG)

Ur-Energy is a junior mining company operating an in-situ uranium facility in Wyoming.  Their Lost Creek processing facility is designed to have a two million pound-per-year capacity.  They have produced, packaged, and shipped more than 2.6 million pounds from Lost Creek since the commencement of operations. Ur-Energy engages in a wide range of uranium mining and recovery operations, with activities including acquisition, exploration, development, and operation of uranium mineral properties.

Ur-Energy recently announced the closing of a $15.24MM public equity offering.  They anticipate using the proceeds from the offering to maintain and enhance operational readiness, for possible strategic transactions and/or acquisitions, and for operating capital.

In a recent press release covering 2020 year-end results, Ur-Energy CEO, Jeff Klenda said: “We look forward to 2021 as a year with numerous prospective catalysts for the domestic uranium recovery industry – catalysts from which our proven operational results at Lost Creek position us to benefit. We are pleased that, already, the Biden Administration has committed to integrate nuclear energy into its clean energy mandate, which is coupled with its pledge, expressed just this week, to ‘expand and strengthen domestic mining and processing capacity of the U.S. These priorities, and the growing bipartisan support for nuclear energy, will facilitate the formation of the national uranium reserve approved in December 2020, as well as implementation of other recommendations of the U.S. Nuclear Fuel Working Group.”

URG is up 77% over the past 3 months.

Take-Away

There is no way to overstate the importance of energy in society or the economy at large. It’s a necessity that can only grow. The current trend away from carbon-emitting fossil-fuels and toward fuel sources viewed to have a less negative impact on the planet is changing the wealth of companies involved in sourcing fuel and products related to alternatives.  Investors are looking beyond wind and solar to also consider uranium producers and the potential for nuclear-generated electricity demand to experience increased growth.

Content Team, Channelchek

 

Suggested Reading:

Lithium-Ion Battery Recycling Market Heats Up

Is the Price of Uranium Rising?

What to Look for in Mining Stocks?

What is an ESG Score?

 

Watch Channelchek’s C-Suite
Interview with Capstone Turbine’s Darren Jamison

 

Capstone Turbine (CPST) CEO Darren Jamison

Micro-turbines: an economically competitive green energy source with flexible application

• Customer base; largest current clients, pandemic impacts on growth, and the post-covid strategy
• The future of hydrogen and its use as a blending fuel
• Recent Texas blackouts and the impact of natural disasters
• Service business growth, reoccurring revenues, and their current cash position

 

Sources:

 

https://www.world-nuclear.org/information-library/nuclear-fuel-cycle/mining-of-uranium/in-situ-leach-mining-of-uranium.aspx

https://www.world-nuclear.org/information-library/safety-and-security/safety-of-plants/safety-of-nuclear-power-reactors.aspx

https://finance.yahoo.com/news/ur-energy-releases-2020-end-230500192.html

https://finance.yahoo.com/news/ur-energy-inc-announces-closing-173700737.html

https://www.bloomberg.com/news/articles/2021-03-03/rare-earth-uranium-miners-benefit-from-ev-mania-and-dash-of-esg

https://www.energyfuels.com/

https://www.energyfuels.com/2021-03-09-Energy-Fuels-Receives-First-Shipments-of-Natural-Monazite-Ore-Commercial-Recovery-of-Rare-Earths-Expected-to-Begin-in-U-S-in-Coming-Weeks

https://encoreenergycorp.com/

https://www.globenewswire.com/news-release/2021/01/05/2153363/0/en/enCore-Energy-Corp-Completes-Acquisition-of-Westwater-Resources-Texas-Based-Uranium-Production-Resource-Assets.html

https://www.standarduranium.ca/

https://www.standarduranium.ca/news-releases/standard-uranium-begins-phase-ii-winter-drill-program-at-its-flagship-davidson-river-project/

Wednesday, March 10, 2021

InPlay Oil (IPOOF)(IPO:CA)
Estimates Raised to Reflect New Price Deck

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are raising our oil price estimates. We have increased our 2020-4Q WTI oil price estimate to $55 from $45 and our 2021 WTI oil price estimate to $60 from $50. Our long-term oil price forecast remains at $50. IPOOF is expected to release 4Q and 2020 results on March 17.


Higher oil prices means higher revenues and earnings.  We are increasing our 2020-4Q revenues and earnings estimate to C$14.5 million (up from C$11.9 million) and C$0.00 per share (up from -C$0.04), respectively. We are also increasing our 2021 revenue and earnings estimates to C$70.5 million (up from C$62.3) and C$0.14 per share (up from -C$0.10) …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

 

Energy Fuels Receives First Shipments of Natural Monazite Ore; Commercial Recovery of Rare Earths Expected to Begin in U.S. in Coming Weeks

 

LAKEWOOD, Colo., March 9, 2021 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) is pleased to announce that the first shipments of natural monazite ore arrived at the Company’s White Mesa Mill (the “Mill”) in Blanding, Utah this past weekend. This material was separated by The Chemours Company at its Offerman Mineral Sand Plant in Georgia and transported by truck to the Mill. In the coming weeks, Energy Fuels expects to gradually ramp-up production of an intermediate rare earth element (“REE”) product, called a “mixed REE carbonate.” This product will then advance to REE separation, which is the next stage in the REE value chain. Energy Fuels also expects to recover the uranium in the ore, which will be used as fuel for the generation of clean, carbon-free nuclear energy.

Upon successful ramp-up, Energy Fuels expects to commercially produce an REE product at a stage more advanced than any other U.S. company. As previously announced, Energy Fuels expects to sell its mixed REE carbonate to Neo Performance Materials (“Neo”), which will process this material at its facility in Europe and manufacture separated rare earth products available to U.S. and European markets. Energy Fuels is also continuing to evaluate developing additional value-added U.S. rare earth separation and other capabilities in Utah in the future.

Mark S. Chalmers, President and CEO of Energy Fuels stated: “Over the past few months, Energy Fuels, Neo and Chemours have quietly worked to create something very significant: a new, fully-integrated, U.S.-Europe rare earth supply chain. This weekend’s shipments of monazite ore from Chemours to Energy Fuels marks the beginning of operations for what we believe will become a burgeoning supply chain. There is a lot of excitement building for rare earths, because they make many clean energy and advanced technologies possible, including electric vehicles, wind generation, batteries and advanced electronics. Today’s announcement is a key milestone as our companies create, refine, and grow a sustainable rare earth supply chain capable of supplying growing demand for clean technologies in the U.S. and Europe.

“We believe Energy Fuels has done more to restore U.S. rare earth production in one year than others have achieved in many years. Less than one year ago, Energy Fuels announced that we were entering the U.S. rare earth space. Now, we are receiving shipments of rare earth bearing ore and are in the process of ramping up for commercial production of an intermediate rare earth product at a stage more advanced than any other U.S. company. We intend to optimize our production of a mixed rare earth carbonate and then move on to developing our own ability to manufacture separated rare earth products at our plant in Utah. Our ultimate goal is to stand-up a fully-integrated U.S. rare earth supply chain that is globally competitive, quicker than any other U.S. company.”

Monazite is one of the highest-value REE-bearing minerals in the World, containing between 50% and 60%+ REEs, along with significant quantities of recoverable natural uranium. Monazite also contains 22% – 24% NdPr (%TREO Basis), which are two of the key REEs and which are needed for many permanent REE magnet technologies used in electric vehicles (EVs) and other advanced technologies. Monazite also contains excellent distributions of “heavy” rare earths, which are needed for many advanced technologies.

Monazite is currently mined in the U.S., Australia, Africa, and elsewhere as a byproduct of heavy mineral sand operations whose main products are zircon and titanium.

Implementation of this initiative is subject to successful commercial ramp-up, execution of definitive agreements between the Company and Neo, and optimization of the companies’ production processes.

About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and expects to commence commercial production of rare earth element (“REE”) carbonate in 2021. Its corporate offices are in Lakewood, Colorado, near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, has the ability to produce vanadium when market conditions warrant, as well as REE carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also on standby and has a licensed capacity of 1.5 million pounds of U3O8 per year. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the meaning of applicable securities legislation, which may include, but is not limited to, statements with respect to: any expectation that the Company will be successful in producing REE Carbonate on a commercial basis; any expectation that Neo will be successful in separating the Company’s REE Carbonate on a commercial basis; any expectation that Energy Fuels will be successful in developing U.S. separation or other REE production capabilities, or otherwise fully integrating the U.S REE supply chain in the future; any expectations that ramp-up to commercial-scale operations will be successful; any expectation that the Company and Neo will successfully execute definitive agreements and optimize their respective production processes; and any other statements regarding Energy Fuels’ future expectations, beliefs, goals or prospects constitute forward-looking information within the meaning of applicable securities legislation (collectively, “forward-looking statements”). All statements in this news release that are not statements of historical fact (including statements containing the words “expects,” “does not expect,” “plans,” “anticipates,” “does not anticipate,” “believes,” “intends,” “estimates,” “projects,” “potential,” “scheduled,” “forecast,” “budget” and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Energy Fuels’ ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation factors relating to: processing difficulties and upsets; available supplies of monazite sands; the ability of the Company to produce REE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; the ability of Neo to separate the REE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; market factors, including future demand for rare earth elements; the ability of Neo and Energy Fuels to finalize definitive agreements; and the other risk factors as described in Energy Fuels’ most recent annual report on Form 10-K and quarterly financial reports. Energy Fuels assumes no obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in Energy Fuels’ filings with the various securities commissions, which are available online at www.sec.gov and www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of Energy Fuels relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.

SOURCE Energy Fuels Inc.

For further information: Investor Inquiries: Energy Fuels Inc.: Curtis Moore, VP – Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com; www.energyfuels.com

Indonesia Energy Mobilizes Drilling Rig to Commence Drilling

 

Plan to drill 3 Back-to-Back Production Wells at Kruh Block

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / March 9, 2021 / Indonesia Energy Corporation Limited (NYSE American:INDO) (IEC), an oil and gas exploration and production company focused on Indonesia, today announced that the company has mobilized the drilling rig to drill 3 back-to-back producing wells at its 63,000 acre Kruh Block.

Each of the 3 wells are expected to average production of 173 barrels of oil per day over the first year of production. IEC anticipates that each well will cost approximately $1.5 million to drill and complete. Based on the terms of IEC’s contract with the Indonesian government and an assumed oil price of $63.50/barrel, each well is expected to generate $3.33 million in net revenue in its first year, which is more than double the cost to drill each well.

As previously announced, IEC plans to drill a total of 5 wells in 2021, 6 wells in 2022 and 7 wells in 2023, for a total of 18 new wells on Kruh Block.

Mr. Frank Ingriselli, IEC’s President commented “We are excited to commence our production plans on the Kruh Block. These 3 new wells, which we have the cash to drill, have the potential to grow production and cash flow for our company by nearly 300%. At today’s oil price, the net cash flow we expect to receive from each of these wells, in just the first year, will be more than double the total cost to drill the wells. This is a great asset that should significantly grow our cash flow as we continue to seek to maximize returns on our investments and grow shareholder value.”

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts, and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results (including, without limitation, the anticipated results of IEC’s 2021 exploration and production activities and the impact of global oil prices as described herein) to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2019 filed on June 16, 2020 with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

Source: Indonesia Energy Corporation Limited

 

Private Energy Companies’ Role in the Energy Cycle

 

The energy industry is a cyclical business. Energy prices rise, causing drilling activity to increase, creating excess supply that causes energy prices to fall. When energy prices fall, companies reduce drilling, which lowers supply and causes energy prices to rise. One never knows exactly which part of the cycle we may be experiencing or when the peaks and troughs will form, only that the cycle exists. But, a closer look at the active players within each cycle component can provide insight as to the length and magnitude of the cycle.

During the down periods of an energy cycle, cash flow is low. Smaller companies with weaker balance sheets are pressured. Some go bankrupt or are forced to sell off property at low prices. Most will be forced to sharply cut back drilling to operate within their expected cash flow. Larger, less leveraged companies are in a better position to take a longer-term perspective and continue drilling under the belief that energy prices will eventually rise.

The Role of Private Companies

During the boom periods of an energy cycle, the reverse is true. Large companies flush with cash will increase drilling. But, they will focus on their most profitable projects, leaving many good projects on the planning board. This is when smaller, sometimes private companies step in. Many successful companies have been formed by mid-level managers of large companies who form new companies that buy underutilized assets of their former employers.

 

 

Energy Today

So, what part of the energy cycle are we in currently? Is the recent rise in oil (and natural gas) prices a sign that we have reached an inflection point in the cycle? Or is it merely a head fake temporarily offsetting a longer trend. Bloomberg reports that there is a resurgence of private energy operators drilling in the Permian Basin. It points out that companies like DoublePoint Energy and Mewbourne Oil Co. are operating as many rigs in the basin as larger companies such as Chevron Corp. and Exxon Mobil Corp. While such a shift toward increased drilling by private companies is normal, it is usually seen in conjunction with increased drilling by established energy companies.

The fact of the matter is that large energy companies are not responding to higher oil prices in a manner similar to past cycles. Drilling has started to rise in response to the rise in oil prices that began last November. However, the number of active rigs in the United States (402 as of 2/19/21) is only half that of a year ago (790) despite higher energy prices.

 

 

The shift towards smaller and private energy investing has created unexpected delays in the supply response to higher prices. Large, well-funded energy companies can expand the drilling of known projects quickly. Drilling by small, underfunded companies takes more time. Assets must be acquired and analyzed. Funding must be secured. The shift towards private investors is perhaps one explanation as to why the rig count has been slow to respond.

Wrap-Up

Of course, there may be other reasons. COVID has thrown a wrench in the ability of companies to find and relocate employees to drilling sites. Large energy companies are also rethinking their commitment to fossil fuels. Companies like BP Amoco and Total SE are emphasizing investments in renewable energy over fossil fuels. A study by Deloitte shows that almost all companies setting emission targets have been companies with market caps above $10 billion. Time will tell whether new investors fill the investment gap being left by the majors. The pace and size of private energy investing could go a long way towards determining the length and magnitude of the current energy price cycle.

Suggested Reading:

Energy Outlook 2021

Can Oil Prices Keep Climbing?

Will the U.S. Continue to Subsidize Renewable Energy?

Will Renewable Energy be the Downfall of Fossil Fuels?

Sources

https://finance.yahoo.com/news/shale-private-army-ramping-means-090003295.html, David Wethe, Kevin Crowley and Sheela Tobben, Bloomberg, March 1, 2021

https://www.forbes.com/sites/deborahbyers/2020/06/16/the-last-cycle-lessons-from-the-past-to-build-oil-and-gass-future/?sh=1cc3d1972cac, Deborah Byers, Forbes, June 16, 2020

https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/oil-gas-energy-sector-disruption.html, Stanley Porter, Duane Dickson, Kate Hardin, Thomas Shattuck, Deloitte, August 13, 2020

 

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Gevo to Report Fourth Quarter 2020 Financial Results Earlier

 

ENGLEWOOD, Colo., March 8, 2021 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it has rescheduled the release of its fourth quarter 2020 financial results ended December 31, 2020 from March 18, 2021 to March 17, 2021 at 4:30 p.m. EST (2:30 p.m. MST).

To participate in the conference call on March 17, 2021, please dial (833) 729-4776 (inside the U.S.) or (830) 213-7701 and reference the access code 3178466#.

A replay of the call will be available two hours after the conference call ends on March 17, 2021. To access the replay, please visit https://edge.media-server.com/mmc/p/xhvdnuqd. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that have the potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials from residues and slurries, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle) and GHG scores. Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven and patented technology, which enables the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel, yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Learn more at Gevo’s website: www.gevo.com

About HCS Group and Haltermann Carless

HCS Group is one of the leading manufacturers of high-quality hydrocarbons and specialty chemicals. The company employs about 500 people worldwide. The products are sold worldwide through the traditional brands Haltermann Carless, ETS Racing and EOS. HCS Group belongs to H.I.G. Europe, a subsidiary of the US private equity investment company, H.I.G. Capital.

The brand Haltermann Carless, one of the oldest chemical companies in the world, provides innovative hydrocarbon-based specialty products and solvents and associated services to best serve its customers. The company operates a network of state-of-the-art facilities for refining, processing and blending to produce a wide variety of specialty products in key business areas: Automotive, Middle Distillates, Oil & Gas, Pentanes, Performance Fuels, Performance Solvents and Aromatics.

The chemical company is a pioneer in developing and marketing a sustainable technologies portfolio based on renewable feedstock since more than a decade. With access to a variety of bio-based feedstock sources the company is able to supply into different high-end applications ranging from high purity solvents for personal care and cosmetics to specialty renewable fuels for motorsport races, outdoor power equipment and aviation contributing to significantly reduced greenhouse gas emissions.

For more information visit: http://www.h-c-s-group.com; www.haltermann-carless.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the MOU to develop and build a renewable hydrocarbon facility at HCS Group’s site located in Speyer, Germany, Gevo’s technology, whether the project contemplated by the MOU will be constructed resulting in revenue to Gevo, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2019, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
IR@gevo.com

+1 720-647-9605

SOURCE: Gevo

Indonesia Energy Obtains Key Permits to Commence its 2021 Drilling Campaign

 

• Paves way for commencement of new production well drilling operations at Kruh Block in the next 30 days
• Appraisal activities at Citarum Block also continuing

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / March 4, 2021 / Indonesia Energy Corporation Limited (NYSE American:INDO) (IEC), an oil and gas exploration and production company focused on Indonesia, today announced that the company has received necessary permits that will allow it to move forward expeditiously to commence its previously announced drilling plans in 2021 for its 63,000 acre Kruh Block.

Drill site preparations are completed and supporting services are in progress. The mobilization of the drilling rig is expected within the next 5 days and the first well is expected to commence drilling within 30 days. IEC’s plan is to drill 3 back-to-back wells as part of the commencement of its new drilling on Kruh Block, which is part of an overall previously announced plan to drill a total of 5 wells in 2021, 6 wells in 2022 and 7 wells in 2023, for a total of 18 new wells on Kruh Block.

In addition, IEC has also completed and provided to the Government of Indonesia two (2) Geological & Geophysical studies each covering both the Kruh Block and the Citarum Block. Additional prospects have been identified from the new study in the 1,000,000-acre Citarum Block which is located on the island of Java only 16 miles from the capital city of Jakarta where natural gas prices are at a 300% premium to the prices in the United States.

Mr. Frank Ingriselli, IEC’s President, commented “These final permits couldn’t have come at a better time, given the recent recovery in oil prices which are at a level not seen since 2019. Accordingly, we should be on-track to significantly increase production and cash flow this year. Also, our drilling operations are expected to decrease production costs to below $20.00 per barrel. All these factors should contribute to our near and long-term goal of maximizing production from the Kruh Block and augmenting shareholder value.”

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts, and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results (including, without limitation, the anticipated results of IEC’s 2021 exploration and production activities and the impact of global oil prices as described herein) to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2019 filed on June 16, 2020 with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

Source: Indonesia Energy Corporation Limited

Wednesday, March 03, 2021

Indonesia Energy Corp (INDO)
Rating downgraded with shares above our price target

Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are lowering our rating on the shares of INDO as the shares have crossed and remain above our previous price target of $8.00. The shares of INDO have been strong as of late in response to rising oil prices. The shares have traded above our previous price objective for several weeks.


We have adjusted our earnings and cash flow estimates to reflect our higher oil price assumptions.  We have raised our 2021 WTI oil price estimate to $60 from $45 and our 2022 estimate to $60 from $50 to reflect recent strength. We are maintaining our long-term oil price estimate of $50 at this time as we monitor the industries drilling response to higher prices. We now project a 2020 EPS loss of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Wednesday, March 03, 2021

Energy Fuels (UUUU)(EFR:CA)
Rare Earth Element Outtake Agreement Signed. Is This Just The Beginning?

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

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

Energy Fuels signs Rare Earth Element (REE) Outtake Agreement with Neo Performance Materials. Neo will take 80% of the rare earth products processed from monazite sand by UUUU’s White Mills plant. (See December 15, 2020 announcement regarding 3-year agreement with Chemours Co to supply monazite sands.) The agreement with NEO includes a put option for UUUU to sell the remaining 20% as well as a right of first refusal option for Neo for additional monazite purchases. The agreement will only use only 2% of White Mill capacity, leaving room to expand either monazite/rare earth operations or start up uranium operations.


What are Rare Earth Elements and Monazite Sand? Rare earth elements are 17 elements that are becoming increasingly valuable for high-tech consumer products such as cellular telephones, computer hard drives, electric and hybrid vehicles and flat-screen monitors.  Demand for Thulium is especially high. Monazite sand, abundant around the world, is a reddish brown phosphate material that contains …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.