Gevo, Inc. (GEVO) – Two milestones in a week – FEED Engineering firm identified

Tuesday, January 05, 2021

Gevo, Inc. (GEVO)
Two milestones in a week – FEED Engineering firm identified

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.

    Another milestone hit with identification of FEED firm. Koch Project Solutions, LLC is performing front end engineering, design and project execution management services (FEED) for the renewable fuel expansion projects. Koch Project Solutions is part of a subsidiary of Koch Industries. Like Trafigura, the new relationship could open up collaboration opportunities on other fronts. While there is no indication that other subs are involved, establishing a relationship with a major energy industry player should be viewed as a positive development.

    Debt free milestone hit.  Strong December stock price performance was catalyst for debt conversion into equity. Last week, we learned from an ATM equity prospectus update that all of the convert debt was converted into equity. A total of 5.67 million shares were issued to Whitebox, and ~$14 million of cash was preserved to keep current cash near $79 million …



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. 

Capstone Turbine Corporation (CPST) Scheduled To Present at NobleCon17


Join Capstone Turbine (CPST) CEO Darren Jamison & CFO Eric Hencken at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Darren and Eric to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com.

NobleCon 17 Complete Presenting Company Schedule

InPlay Oil (IPOOF)(IPO:CA) Scheduled To Present at NobleCon17


Join InPlay Oil (IPOOF)(IPO:CA) CEO Doug Bartole at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join Doug to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com.

NobleCon 17 Complete Presenting Company Schedule

Indonesia Energy Corp (INDO) – Shares surge 47 percent on rising oil prices

Thursday, December 31, 2020

Indonesia Energy Corp (INDO)
Shares surge 47% on rising oil prices

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.

    The shares of INDO rose 47% on December 30 on heavy volume. The shares of INDO opened at $5.74 and quickly rose to $15.33 before ending the day at $7.11. The company did not report any news that might account for the rise in its stock. We would note that management gave an update on operations on November 23 and presented at a conference for microcap stocks on December 10. The shares of INDO are thinly traded with less than 1 million shares traded on average. More than 50 million shares were traded on Wednesday with most of the trades executed before noon.

    Oil prices have been rising.  Brent oil prices have been rising since the beginning of November and are now above $51 per barrel. The price INDO receives for oil production follows a complicated formula but generally tracks Brent oil prices. Current prices are above that assumed in our models which call for an average price of $45 in 2021 and $50 in 2022 and beyond. Drilling has been delayed into …



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, Inc. (GEVO) – Debt free with higher pro forma cash balance moving into 2021

Thursday, December 31, 2020

Gevo, Inc. (GEVO)
Debt free with higher pro forma cash balance moving into 2021

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.

    Strong December stock price performance proved catalyst for debt conversion into equity. ATM program updated for opportunistic use.  In the updated ATM equity prospectus, we learned that the convert debt was fully converted into equity after strong stock price performance in December and 5.67 million shares were issued to Whitebox to retire the convert debt, including PIK interest and a make whole payment. About $14 million of cash was preserved and current cash is $79 million. In 4Q2020, ATM equity issuance raised $6.2 million and warrant exercises added ~$0.4 million.

    Potential milestones/catalysts over the next year: Expanding the supply contract portfolio with new industry/financial partners; Identifying engineering firm performing FEED work; Identifying equity and debt project financing partners; Awarding an EPC (Engineering/Procurement/Construction) contract to a construction firm; Financial closing of project debt/equity financing that allows the …



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. 

What Should the Price Range Be for Oil and Gas?

 


Well Productivity Improvements – Good for Producers, Bad for Energy Prices

 

Oil well production and improved drilling efficiency could keep the price per barrel low, even as demand picks up. Although today’s lower oil price range is largely demand-related, the result of pandemic related slowdowns, technology has been improving well output, this is also a culprit. The trend is also impacting natural gas.  Technology is not likely to reverse itself and reduce the capacity to bring oil to the surface. From a supply standpoint, oil prices could be stuck in a lower range, even in a booming economy.

Where the Growth in Oil Production is Greatest

A recent study by the U.S. Energy Information Administration shows that technology improvements in the last decade have not only increased the overall production of oil and gas in the United States they have also dramatically increased production rates per well. To show this graphically, the EIA separated production into categories based on the size of the well. The graph below shows that the growth in oil production has occurred primarily from wells producing 100-1600 barrels of oil equivalent (BOE) per day. Interestingly, there has not been much growth in the number of production of large wells producing more than 3,200 BOE/day. The limited growth from “mega wells” reflects a decreased emphasis on drilling in the Gulf of Mexico and searching for giant discoveries. It is also worth noting that there has been little growth among smaller wells. These largely represent existing wells that have been in production for many years at steady rates.

 

 

Where the Growth in Natural Gas Production is Greatest

A similar story can be told by looking at natural gas well production.  The growth has come from the middle size wells and not the largest or smallest producing wells. Notably, the production growth has come during a period of low natural gas prices and does not yet reflect the impact of a rebound in natural gas prices in the second half of 2020.

 

 

Improved Drilling Methods

The growth in oil and natural gas production should come as no surprise. Horizontal drilling and fracking have improved initial productivity rates of middle-size wells. What is perhaps a surprise is the fact that improvements seem to be accelerating in recent years. Horizontal drilling began in the ‘70s, and fracking has been done for over 150 years, but it wasn’t until ten years ago that the use of horizontal drilling and fracking surged in the United States. Importantly, drillers continue to improve well production rates by finetuning the number and spacing of fracks per well, and the amount of pressure and viscosity used to frack a well. To complicate matters, the ideal drilling formula in one land formation may not work in another land formation. This has lead to a growth of producers that specialize in specific drilling locations.

 

 

It is a common theme among producers to report well production that surpasses expected “type curves”. At the same time, managements report a reduction in the number of days it takes to drill a well and thus its overall drilling cost. The result of reduced well cost and higher production has meant a higher return on investment. Higher returns have helped offset lower energy prices in 2019 and the first half of 2020.

Take-Away

Improved profitability is clearly positive for individual energy companies. As a whole, however, it means lower energy prices.  Drilling can continue at lower energy prices than before, and drilling will increase sooner when prices rise. If the natural trading range of oil was previously $40-$70 per barrel, perhaps the new range is now $30-$60 per barrel. And, for natural gas, perhaps the range has shifted from $2.50-$3.50 per mcf to $2.00-$3.00 per mcf. If true, current prices of $48 for oil and $2.40 for natural gas do not represent depressed levels but levels in the middle of the new trading ranges. And technology continues to improve. Ten years from now, we may be talking about even lower trading ranges. Technology is not going to reverse itself and cause trading ranges to rise.

 

Suggested Reading:

Small-Cap Energy Underperformance During the Drop in Oil is Unwinding

Are we headed to Another Oil Collapse?

Will Oil Prices Rise
in 2021?

 

Sources:

https://www.hartenergy.com/news/history-horizontal-directional-drilling-52314., Hart Energy, September 1, 2005

https://www.nrdc.org/stories/fracking-101#history, NRDC, April 19, 2019

 

enCore Energy (ENCUF)(EU:CA) Scheduled To Present at NobleCon17


Join enCore Energy (ENCUF)(EU:CA) Executive Chairman William Sheriff & CEO Paul Goranson at NobleCon17 – Noble Capital Markets 17th Annual Small & Microcap Investor Conference – January 19&20, 2021. Following a formal presentation, a seasoned Wall Street research analyst will join William and Paul to moderate a LIVE Q&A session. If you want to be added to the roster of presenters… or if you would like to join the virtual audience of investors, at no cost, go to nobleconference.com.

NobleCon 17 Complete Presenting Company Schedule

Release – Energy Fuels (UUUU) – Applauds $75 Million Launch of the U.S. Uranium Reserve in Bipartisan 2021 Omnibus Spending Bill

 

 


Energy Fuels Applauds $75 Million Launch of the U.S. Uranium Reserve in Bipartisan 2021 Omnibus Spending Bill

 

LAKEWOOD, Colo., Dec. 22, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) the largest uranium miner in the U.S., applauds the bipartisan, bicameral launch of the U.S. uranium reserve, as $75 million of funding was included in the omnibus appropriation bill passed by both houses of Congress last night. Appropriating funding for a U.S. uranium reserve was one of the main recommendations of the U.S. Nuclear Fuel Working Group, which was directed to make recommendations on securing the domestic capacity to produce uranium and nuclear fuel. This key funding opens the door for the U.S. government to purchase domestically-produced uranium to guard against potential commercial and national security risks presented by our country’s near-total reliance on foreign imports of uranium. The bill is expected to be sent to the President for signature in the coming days.

Energy Fuels has been the number one uranium miner in the U.S. since 2017, and the projects the Company now owns and operates have produced roughly one-third of all uranium mined in the U.S. since 2006, ranking second among all U.S. uranium producers during that period. Energy Fuels holds three (3) of the most productive uranium facilities in the U.S., which together have a combined licensed capacity to produce over 11.5 million pounds of uranium per year. This includes the White Mesa Mill, located in southeast Utah, which is the only conventional uranium mill operating in the U.S. today, along with the Nichols Ranch and Alta Mesa in situ recovery (“ISR”) facilities, located in Wyoming and Texas respectively, both of which are on standby. The Company is therefore in an unmatched position and stands ready to supply uranium for the reserve.

Mark S. Chalmers, President and CEO of Energy Fuels stated: “Energy Fuels extends our gratitude to Congress and the Administration for working together on a bipartisan basis to appropriate these funds in 2021 for the creation of a U.S. uranium reserve. We are extremely pleased to see members on both sides of the aisle support a healthy domestic uranium industry, so America cannot be held hostage by foreign adversaries like Russia for the fuel needed to generate clean, carbon-free nuclear energy. This funding also has the potential to create good-paying jobs and economic opportunity for under-served areas of Wyoming, Texas and Utah. We wish to extend a particular thank you to Wyoming Senator John Barrasso, a tireless champion for the U.S. uranium industry and a true advocate for ending America’s dependence on foreign adversaries for the critical minerals we need today.

“Creation of a uranium reserve is truly a milestone for our industry, and $75 million will go a long way toward reviving and expanding the domestic production of nuclear fuel in 2021 and beyond. We look forward to working with the U.S. Department of Energy to make sure this funding is spent wisely to support existing infrastructure by purchasing uranium from existing, proven uranium facilities.

“Our White Mesa Mill in Utah is a clean energy and critical minerals hub, a concept that goes much farther than simply mining and producing uranium. Any funds used through a Department of Energy program to purchase uranium from the White Mesa Mill can have a ‘multiplier effect’, by not only supporting the domestic uranium mining industry, but also by advancing other important clean energy priorities, including rare earth production, abandoned mine cleanup and supporting Native American communities.

“Energy Fuels, and particularly our White Mesa Mill, is one of the best untold clean energy stories in the U.S. today. The U.S. uranium reserve can help revive domestic uranium production, while also accelerating other important initiatives that play a part in making the world a cleaner and healthier place.”

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 anticipates commencing 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, and is completing final test-work for the production of 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: the Company being a leading producer of uranium in the U.S.; any expectation that the Company is able to produce REE carbonate from uranium-bearing ores or that the Company will commence commercial production of REE carbonate in 2021 or at all; any expectation that the Company’s REE project may, in time, result in among the lowest cost REE production in the western world; any expectation that the Company will be successful in acquiring additional supplies of monazite, or will be successful in processing other types of REE- and uranium bearing ores at the White Mesa Mill; any expectation that the Company will be successful in achieving its goal of processing 15,000+ tons of monazite and other sources of ore per year; any expectation that the Company will be able to sell some or all of its REE carbonate to buyers in Europe and/or Asia until a REE separation facility is established in the United States; any expectation that the Company may potentially perform separation, and other downstream REE activities including metal-making and alloying, in the future at the White Mesa Mill or elsewhere in the United States; any expectation that the Company will be successful in helping the EPA and Navajo Nation address historic abandoned uranium mines; any expectation that the Company will significantly increase the number of green jobs it is providing at the White Mesa Mill; 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: the Company being a leading producer of uranium in the U.S.; any expectation that the Company is able to produce REE carbonate from uranium-bearing ores or that the Company will commence commercial production of REE carbonate in 2021 or at all; any expectation that the Company’s REE project may, in time, result in among the lowest cost REE production in the western world; any expectation that the Company will be successful in acquiring additional supplies of monazite, or will be successful in processing other types of REE- and uranium bearing ores at the White Mesa Mill; any expectation that the Company will be successful in achieving its goal of processing 15,000+ tons of monazite and other sources of ore per year; any expectation that the Company will be able to sell some or all of its REE carbonate to buyers in Europe and/or Asia until a REE separation facility is established in the United States; any expectation that the Company may potentially perform separation, and other downstream REE activities including metal-making and alloying, in the future at the White Mesa Mill or elsewhere in the United States; any expectation that the Company will be successful in helping the EPA and Navajo Nation address historic abandoned uranium mines; any expectation that the Company will significantly increase the number of green jobs it is providing at the White Mesa Mill; 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

Gevo, Inc. (GEVO) – Greenfield Site Announced – Debt Free One Way or Another

Tuesday, December 22, 2020

Gevo, Inc. (GEVO)
Greenfield Site Announced – Debt Free One Way or Another

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.

    Tranche 1 development modified to optimize design. Greenfield site announced. Last week, CEO Pat Gruber updated investors on the current strategic plan and highlighted Tranche 1 which is now slated to build a new 45 MGPY renewable fuel plant on a greenfield site. Yesterday, a two-year option was secured/announced to acquire 239 acres near Lake Preston, South Dakota, which meets a provision in the 25 MGPY supply agreement with Trafigura.

    Recent strong stock price performance brings debt conversion option into play.  Either way, the company will be debt free moving into 2021. While we expect convert debt of $12.7 million to be paid off next week, strong stock price performance makes conversion into equity possible. With the current stock price 17% above the conversion price of $2.44/share, there is clearly an incentive to convert …



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. 

Is the Price of Uranium Rising?

 


Higher Uranium Prices Could Result from New Supply and Demand Pressures

 

The last decade has not been favorable for uranium pricing. The Fukushima nuclear plant disaster in 2001 shut down power plants. Kazakhstan flooded the market with cheap uranium in the middle of the decade. Canada increased production by 50% between 2016-2018. In response, uranium spot prices, which began the decade near $80/lb., dropped below $20/lb. Producers reduced exploration efforts to find new reserves. As a result, uranium production has not kept up with uranium demand for many years and only provided 84% of demand in 2019. The gap between demand and mining supply was filled by inventory drawdown, the downgrading of weapons-grade material, and enrichment underfeeding (taking low uranium tail assays and re-enriching the assays).

Looking Forward:

As we enter the next decade, the outlook for uranium prices is beginning to look much more favorable. Spot prices have climbed to $30/lb. and show signs of going higher. There are more nuclear power plants in operation and in construction than prior to the Fukushima accident. Demand is growing as Japanese power plants come back online, new ones are being built in China, India and the Middle East, and existing plants are being relicensed at higher capacities. At the same time, supply is decreasing as Kazakhstan and Canada pulls back production and major mines in Australia and Niger come to the end of their reserve life. The gap between demand and supply is growing and the steps taken to fill the gap in recent years are short-term plugs.

 

US production of uranium concentrate declined dramatically over the five years ended 2019.

 

The world has substantial reserves, but few mines can produce uranium profitably at prices below $40/lb. An analysis by SRK Consulting of existing wells in 2018 shows that global world demand of 150-160 million can not be met unless prices rise above $70/lb. Such a sharp rise has happened before in the ‘70s and ‘00s. In fact, uranium
prices started to spike in 2010-11 right before the Fukushima accident
. Noble Capital Market analyst, Michael Heim, believes we are approaching another spike. “The basic economic laws of supply and demand can only be put off for so long. Eventually prices are going to rise to grow supply to meet demand. Unfortunately, it may take 5-10 years for new supply to arrive.”

Impact on Utilities

For utilities buying uranium, a sudden rise in uranium prices may come as a shock. Utilities are notorious for not taking risks. Utility regulation tends to punish utilities for making missteps but does not reward them for taking risks that are successful. There isn’t much incentive for a utility to sign a long-term supply contract at $40/lb. when spot prices are at $30/lb. even if they think prices are about to rise. Consequently, most uranium buyers hold a portfolio of long-term contracts at $40/lb. that are beginning to expire. A rush to sign new contracts if spot prices rise could add to uranium price volatility and push prices even higher.

National Uranium Reserve

And as a final wild card, the U.S. Government has begun discussing the need for a national uranium reserve. Details regarding the size of the reserve or the price that would be paid for the uranium are not known at this time. However, it is reasonable to assume a reserve large enough to meet U.S. annual demand of 55 million pounds. If the reserve is supplied from domestic producers, it would represent more than 8 years of peak U.S. uranium production. The result could be a domestic uranium industry that is many times larger than what we have seen in the past.

Suggested
Reading:

Will Solar Panels Continue to be Subsidized?

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Mergers Within the energy Industry are Heating Up

 


 


 

Release – Gevo, Inc. (GEVO) – Options Site for Expansion Project


Gevo Options Site for Expansion Project

 

ENGLEWOOD, Colorado – December 21, 2020 – Gevo, Inc. (“Gevo”) (NASDAQ: GEVO), announced today that it has optioned the right to purchase approximately 239 acres of land near Lake Preston, SD, and has met the initial milestone to secure control of a site by the end of this year that meets the conditions required by the contract that Trafigura Trading LLC (“Trafigura”) and Gevo executed in August 2020. The production facility planned for Lake Preston is contemplated to produce about 45,000,000 million gallons per year collectively of jet fuel and renewable gasoline products. Gevo intends to make a decision on whether to purchase the Lake Preston site in the future as part of the Citigroup led project financing.

“We like the scale of plant that could be built at the Lake Preston site, it has the potential to produce large amounts of our products. It also has room to expand further, or add other businesses,” said Patrick R. Gruber, Gevo’s Chief Executive Officer.

A copy of the contract between Gevo and Trafigura was filed with the U.S. Securities and Exchange Commission on Form 8-K on August 20, 2020.

About Gevo

Gevo is commercializing the next generation of jet fuel, gasoline and diesel fuel with the potential to achieve zero carbon emissions and address the market need of reducing greenhouse gas emissions with sustainable alternatives. 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. As a result, Gevo is able to produce low-carbon fuels with substantially reduced carbon intensity (as measured by 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 environmental problems of fossil-based carbon 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 that enables the use of a variety of low-carbon sustainable feedstocks to produce price-competitive, low carbon products, such as jet fuel, gasoline components like isooctane and isobutanol 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 our 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, statements related to Gevo’s supply of sustainable aviation fuel to Avfuel and their customer 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 & Media Contact
IR@gevo.com
+1 720-647-9605

SOURCE: Gevo

Release – Energy Fuels (UUUU) – Environmental and Social Responsibility Key Priorities for Energy Fuels

 

 


Environmental and Social Responsibility Key Priorities for Energy Fuels; Sustainability Report Now Available on Company Website

 

LAKEWOOD, Colo., Dec. 21, 2020 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) is pleased to announce it has published its Sustainability Report, along with its Climate Change Policy, Human Rights Policy and Vendor Code of Conduct, which together with its other policies describe the Company’s ongoing commitment to the environment, worker health, public safety and social responsibility, including its important role in combating global climate change through producing and recycling carbon-free energy resources. Each of these documents is publicly available on the Company’s website at the following links:

Sustainability Report

Climate Change Policy, Human Rights Policy, Vendor Code of Conduct and other Policies

Through the Sustainability Report, the Company shares the key efforts, initiatives and factors that guide the Company in all aspects of its business. These documents highlight the Company’s unwavering commitment to sustainability and social responsibility. The Sustainability Report highlights:

  • The Company’s commitment to health, safety and environmental responsibility;
  • How the Company addresses global climate change and reduces air pollution through the production of uranium, the largest source of carbon-free energy in the world;
  • Additional contributions the Company makes to clean energy through its vanadium production and upcoming rare earth production;
  • How the Company preserves global resources, reduces carbon emissions and helps address global climate change through its industry-leading recycling programs;
  • The Company’s contributions to the communities in which it operates;
  • An overview of the Company’s comprehensive regulatory framework, which ensures the protection of public health, safety and the environment at the highest global standards;
  • The world-class reclamation standards that apply to the Company’s assets;
  • The Company’s pledge to help address the Cold War legacy of uranium mining; and
  • The Company’s commitment to human rights and corporate and social responsibility.

Mark S. Chalmers, President and CEO of Energy Fuels stated: “Energy Fuels might be the best untold clean energy and sustainability story in the U.S. today. We believe our recently published Sustainability Report tells this story, along with our commitments to human rights and corporate and social responsibility. We are proud of the growing roles we play in helping address global climate change, reducing air pollution, making clean energy technologies possible, and working to make the world a healthier and cleaner place.”

Energy Fuels is a uranium and vanadium mining, and rare earth element (“REE”) processing, company operating in the western United States dedicated to sustainability through corporate, environmental and social responsibility. The Company is also a global model for responsible mining and recycling. The materials that Energy Fuels responsibly produces and recycles are helping to address some of the most daunting health and environmental issues facing the world today: air pollution and climate change.

Uranium, Vanadium & Rare Earth Elements

Uranium is the fuel for carbon-free, emission-free baseload nuclear power – one of the cleanest forms of energy in the world. Vanadium, which today is mainly used in the steel, aerospace, and chemical industries, is also expected to increase its contribution to environmental sustainability, as next-generation, grid-scale batteries utilizing vanadium are now being commercialized to store energy generated from renewable sources. REEs, which are a group of 17 chemical elements, are the building-blocks for a wide array of clean energy and advanced technologies, including wind turbines, electric vehicles, cell phones, computers, flat panel displays, advanced optics, catalysts, medicine, and national defense applications.

Uranium & Vanadium Recycling

Energy Fuels is also committed to environmental responsibility through its industry-leading recycling programs. The Company recycles uranium-bearing material for the extraction of uranium at its White Mesa Mill in Utah that would otherwise be lost to direct disposal. This includes material from other metal mining and processing, the uranium conversion process, and other sources. The Company has also recently recycled high-purity vanadium from its tailings facilities. The Company believes it is important to recycle and reuse as much material as possible in order to reduce the need for more mining of the world’s finite resources.

Over its history, the Mill has recycled over six (6) million pounds of uranium and over 1.8 million pounds of high-purity vanadium product, all of which would otherwise have been lost to direct disposal. That amount of recycled uranium, after being converted to nuclear fuel, would:

  • Eliminate over 85 million tons of CO2 emissions compared to coal, or the same amount of annual emissions as 18 million passenger vehicles or about one and a half times the annual CO2 emissions from the entire country of Sweden;
  • Produce as much electricity as approximately 50 million tons of coal, or enough to fill a coal train that extends from Los Angeles to New York City and almost all of the way back; and
  • Produce as much electricity as about 24,500 wind turbines annually, representing almost half of the 60,000 wind turbines in the U.S. in 2019.

The 1.8 million pounds of vanadium Energy Fuels has recycled would produce enough vanadium for the steel girders needed to build four and a half Golden Gate Bridges.

All of this from just one company. We are not aware of any other mining company that can cite these types of recycling accomplishments and their direct impacts on combating global climate change.

Addressing the Cold War Legacy of Uranium Mining

In addition, the Company seeks out opportunities to help address the adverse environmental and health impacts caused by historic Cold War era uranium mining practices. The Mill is currently recycling clean-up material from a closed uranium mine in northwest New Mexico and recovering the contained uranium which will be used for the generation of clean, carbon-free nuclear energy. The Company is also seeking to assist in the clean-up of abandoned, government-sponsored Cold War era uranium mines across the Navajo Nation and Four Corners area of the United States, which continue to cause environmental issues today. We are proud of our ability to play a part in cleaning up these legacy Cold War era sites in the U.S. and returning the environment to the strict standards required today.

Excellent Record of Environmental & Regulatory Compliance

The Company performs all of these beneficial activities in accordance with and, when possible, to a stricter standard than, all applicable laws and regulations. The U.S. leads the world in rigorous laws, regulations and other requirements that mandate responsible exploration, construction, extraction, recovery, processing, exports, labor standards, occupational health and safety, transportation, waste disposal, protection and remediation of the environment, protection of species, toxic and hazardous substances, and other key environmental and health matters. Energy Fuels’ record in these areas is exceptional.

Social Responsibility

Energy Fuels also contributes meaningfully to the communities in which it operates, helping to provide many social and economic benefits in rural and underserved areas of the United States, including jobs to local workforces, contributions to local taxes that fund schools, hospitals and roads, and economic development for those communities. Approximately half of the Company’s employees at its White Mesa Mill are Native American.

Mr. Chalmers continued: “For decades, we have integrated environmental and social pillars into every facet of our business. I have worked all over the world, and I can affirmatively say that the U.S. produces the raw materials needed for a modern, clean society more responsibly than anywhere else I’ve seen. I am proud of the work we are doing at Energy Fuels to bring about a new era of responsible, socially-focused critical mineral mining, milling and recycling in the U.S.

“It is also my hope that our burgeoning rare earth business will provide significant opportunities for the Four Corners area of the United States. If we are successful in producing a mixed rare earth concentrate and uranium from natural monazite ore, we hope to grow this business to the point that we are able to help create a fully-integrated U.S. REE supply chain. With investment and jobs flowing into this region, which is one of the poorest in the U.S., there will be multiple opportunities to address numerous pressing needs. We hope to be a part of the solution to these needs.

“Finally, it is past time for the U.S. government to address the Cold War legacy of abandoned uranium mines on the Navajo Nation. Energy Fuels is aggressively urging the U.S. government to live up to its obligations to the Navajo People and start cleanups now. There is ample money available, and our White Mesa Mill can receive and recycle clean-up material versus having it buried onsite on tribal lands, an option that may not be available for many years, if ever. This would also be a wonderful job and economic development opportunity for the Navajo. I have lived and worked with the Navajo and other Indigenous Peoples around the world throughout my career, and I have great respect for their unique and varied traditions, cultural identities and use of the land and natural resources to sustain and nurture both life and spirit. It would be a great personal and professional triumph to help reverse the Cold War legacy of uranium mining on the Navajo Nation.”

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 anticipates commencing 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, and is completing final test-work for the production of 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: the Company being a leading producer of uranium in the U.S.; any expectation that the Company is able to produce REE carbonate from uranium-bearing ores or that the Company will commence commercial production of REE carbonate in 2021 or at all; any expectation that the Company’s REE project may, in time, result in among the lowest cost REE production in the western world; any expectation that the Company will be successful in acquiring additional supplies of monazite, or will be successful in processing other types of REE- and uranium bearing ores at the White Mesa Mill; any expectation that the Company will be successful in achieving its goal of processing 15,000+ tons of monazite and other sources of ore per year; any expectation that the Company will be able to sell some or all of its REE carbonate to buyers in Europe and/or Asia until a REE separation facility is established in the United States; any expectation that the Company may potentially perform separation, and other downstream REE activities including metal-making and alloying, in the future at the White Mesa Mill or elsewhere in the United States; any expectation that the Company will be successful in helping the EPA and Navajo Nation address historic abandoned uranium mines; any expectation that the Company will significantly increase the number of green jobs it is providing at the White Mesa Mill; 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: the Company being a leading producer of uranium in the U.S.; any expectation that the Company is able to produce REE carbonate from uranium-bearing ores or that the Company will commence commercial production of REE carbonate in 2021 or at all; any expectation that the Company’s REE project may, in time, result in among the lowest cost REE production in the western world; any expectation that the Company will be successful in acquiring additional supplies of monazite, or will be successful in processing other types of REE- and uranium bearing ores at the White Mesa Mill; any expectation that the Company will be successful in achieving its goal of processing 15,000+ tons of monazite and other sources of ore per year; any expectation that the Company will be able to sell some or all of its REE carbonate to buyers in Europe and/or Asia until a REE separation facility is established in the United States; any expectation that the Company may potentially perform separation, and other downstream REE activities including metal-making and alloying, in the future at the White Mesa Mill or elsewhere in the United States; any expectation that the Company will be successful in helping the EPA and Navajo Nation address historic abandoned uranium mines; any expectation that the Company will significantly increase the number of green jobs it is providing at the White Mesa Mill; 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

Gevo, Inc. (GEVO) – More Clarity on First Project. Debt Free Heading into 2021

Monday, December 21, 2020

Gevo, Inc. (GEVO)
More Clarity on First Project. Debt Free Heading into 2021.

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.

    Development plan modified to optimize design. Last week, CEO Pat Gruber updated investors on the current strategic plan and indicated that the first development (Tranche 1) is slated to be a new 45 MGPY renewable fuel plant on a greenfield site. The move away from converting the existing Luverne plant appears driven by discussions with potential financing partners. A new plant on a greenfield site should optimize the design/engineering specs, utilize state-of-the-art technology and capture other economies of scale. Targeted cost of the greenfield plant estimated in the $450 million range, excluding some infrastructure.

    3Q2020 capital raises allow full pay off of convert debt next week. Debt free moving into 2021.  Unless the stock price moves above the conversion price of $2.44/share by yearend, the convert debt will be fully paid off. Pro forma yearend 2020 cash should be in the $60 million range with no debt …



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.