Category: Natural Resources

For How Long Will the World’s LNG projects Remain Frozen?

“…U.S. Energy firms alone are developing over 50 billion cubic feet per day (bcfd) of
new export capacity – more than all the worldwide consumption of LNG in 2019…”

In recent months nearly half of the world’s Liquid Natural Gas (LNG) exporting projects have been delayed.  “Out of 45 major LNG export projects in pre-construction development globally, at least 20 – representing a capital outlay of some $292 billion – are now facing delays to their financing,” according to the Global Energy Monitor.  It is not unusual for multiple projects to be proposed to meet and compete for an identified need.  In fact, U.S. Energy firms alone are developing over 50 billion cubic feet per day (bcfd) of new export capacity – more than all the worldwide consumption of LNG in 2019, according to Refinitiv Eikon data.  As is often the case, not all projects will be completed.  Still, the pace of delays in LNG constructions is unprecedented.  So why are so many LNG terminals being delayed?  As is usually the case, the answer is multifaceted.

 

 

Global Economic Slowdown due to COVID is Sapping Demand. A global economic slowdown has decreased the demand for all fuels, including natural gas. 
Approximately 130 cargoes scheduled to be loaded between April and August at US LNG export terminals have been canceled by customers, according to Platts’ latest tally based on information from market sources. Power generation is down due to individuals working from home and avoiding out-of-home recreation.  This means less need for natural gas to power generators.  It also means less need for natural gas to heat businesses and commercial sites.  And less demand for natural gas means less demand for LNG cargoes.

Drop-in Oil and Gas Prices.  Oil and natural gas prices declined dramatically this spring.  A price war between Saudi Arabia and Russia cut oil prices in half, while a mild winter caused natural gas prices to decline.  Shipping LNG overseas only makes sense if the price differential between the two points is enough to cover the costs of liquifying, storing, shipping, and unliquifying the gas.  If energy prices drop, the differential often declines as well.  Costs, however, tend to be fixed, often above $2 per mcf.  In fact, when U.S. natural gas prices dropped below $2 per mcf, it cost more to ship the gas than it did to purchase the initial gas supply.  This has made the attractiveness of LNG less favorable than purchasing the gas domestically.

Too Many Projects.  As mentioned earlier, it is not unusual for multiple projects to be proposed to meet a single need.  These projects play a game of chicken until one project investor backs down and cancels.  That seems to be the situation in the case of proposed LNG projects. Soorya Tejomoortula, Oil and Gas Analyst at GlobalData, comments: “The global LNG sector was already witnessing an LNG supply glut and weak demand before the outbreak of COVID-19. The fall in gas prices and further weakening of LNG demand after the COVID-19 outbreak has accelerated this trend.

Growth of Renewable.  The growth of renewable energy sources for power generation has also sapped the demand for LNG and the willingness of purchasers to make long-term commitments.  LNG terminals cost billions of dollars and have long payback periods.  Developers seek out partners who will take on long-term outtake capacity to assure project profitability.  It is becoming increasingly difficult to find such partners, given an uncertain environment for natural gas.  “Investing in new fossil fuel infrastructure like liquefied natural gas (LNG) terminals is increasingly an economically unsound decision,” Andrew McDowell told Reuters in an email. The bank had announced in November that it would stop financing fossil fuel projects at the end of 2021.  Natural gas is commonly viewed as the premier fossil fuel to bridge the gas from coal to renewables.  Lately, that bridge is looking shorter.

Conclusion: The world energy market is dynamic.  Decades ago, LNG terminals were built to import gas into the United States.  In recent years, after the shale gas boom, exporting LNG terminals were built to ship gas overseas.  Lately, the pendulum has swung back to a point where the profitability of long-term U.S. gas exports is in question.  However, it would only take a resurgence in the global economy or a breakthrough in domestic gas production to make exporting natural gas profitable again.  

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https://www.reuters.com/article/us-climate-change-gas/global-lng-projects-jeopardized-by-climate-concerns-pandemic-delays-report-idUSKBN247303, Matthew Green, Reuters, July 6, 2020

https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/062320-freeport-lng-delays-target-for-sanctioning-fourth-liquefaction-train-until-at-least-2021, S&P Global Platts, June 23, 2020

https://finance.yahoo.com/news/did-covid-kill-lng-natural-092358695.html

https://oilmanmagazine.com/covid-19-triggers-delays-in-projects-and-investment-decisions-in-global-lng-liquefaction-sector/, Oilman Editor, Oilman Magazine, May 13, 2020

https://www.gasworld.com/covid-19-triggers-delays-in-lng-projects/2019106.article, Joanna Sampson, Gas World, May 15, 2020

https://theenergymix.com/2020/07/07/global-gas-bubble-has-nearly-half-of-new-lng-projects-facing-pandemic-delays-nervous-investors/, The Energy Mix, July 7, 2020

https://www.csis.org/blogs/energy-headlines-versus-trendlines/how-much-does-us-lng-cost-europe, Niko Tsafos, CSIS, July 5, 2019

Thursday, July 16, 2020

Sierra Metals (SMTS)(SMT:CA)

Better than Expected 2Q Production; Raising Estimates

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

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

SMTS reports second quarter production results. Compared with the prior year period, second quarter production of copper was flat at 9.7 million pounds, while silver, lead and zinc decreased 31.6%, 20.6% and 17.2% to 572 thousand ounces, 6.4 million pounds and 13.7 million pounds, respectively. Gold production increased 8.7% to 2,762 ounces relative to the prior year period. Second quarter production was negatively impacted by government-mandated work constraints in Mexico and Peru. The decline in silver production was due to the Cusi mine being under care and maintenance. Despite the negative impact of COVID-related work restrictions, production levels were above our expectations due to a strong performance by the Bolivar mine.

Updating estimates. We are increasing our 2020 and 2021 EPS estimates to $0.07 and $0.24 from $0.05 and $0.19, respectively. Our estimates reflect Cusi’s return to service in the third quarter and higher commodity prices. Recent strength in …









Click to get the full report.

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. 

SIERRA METALS REPORTS SOLID SECOND QUARTER 2020 PRODUCTION RESULTS INCLUDING STRONG PRODUCTION FROM BOLIVAR, DESPITE THE IMPACT OF THE COVID-19 PANDEMIC

 

Toronto, ON – July 15, 2020 – Sierra Metals Inc. (TSX: SMT) (BVL: SMT) (NYSE AMERICAN: SMTS) (“Sierra Metals” or “the Company”) is pleased to report second-quarter 2020 production results featuring the strong operational performance at its Bolivar Mine.

Results are from Sierra Metals’ three underground mines in Latin America: The Yauricocha polymetallic mine in Peru, and the Bolivar copper and Cusi silver Mines in Mexico.

Second Quarter 2020 Production Highlights

• Copper production of 9.7 million pounds; in-line with Q2 2019
• Silver production of 0.6 million ounces; a 32% decrease from Q2 2019
• Gold production of 2,762 ounces; a 9% increase from Q2 2019
• Zinc production of 13.7 million pounds; a 17% decrease from Q2 2019
• Lead production of 6.4 million pounds; a 21% decrease from Q2 2019
• Copper equivalent production of 22.7 million pounds; a 10% decrease from Q2 2019
• Production at Yauricocha and Bolivar impacted in April and May due to the government-imposed shutdowns to contain the advancement of COVID-19.
• Cusi remained under care and maintenance throughout the quarter

Quarterly throughput from the Yauricocha and Bolivar Mines was negatively impacted by the shutdowns announced by the Peruvian and the Mexican Governments to contain the advancement of the COVID-19 pandemic. Both the mines, while maintaining essential activities, operated at reduced capacities for the April and May months. These restrictions were relaxed for mining companies in June (as announced in our Press Release dated June 5, 2020), and the Company began to recall its furloughed employees and started ramping up the operations to full capacity. The Cusi mine remained under care and maintenance throughout the quarter, due to its proximity to urban communities.

Consolidated production of copper remained in-line at 9.7 million pounds, silver decreased 32% to 0.6 million ounces, lead decreased 21% to 6.4 million pounds, zinc declined 17% to 13.7 million pounds, and gold increased 9% to 2,762 ounces compared to Q2 2019. Consolidated silver production dropped since there was no production at Cusi during the quarter, while gold production increased largely due to higher gold grades from the Bolivar Mine.

The Yauricocha Mine experienced a 20% reduction in throughput during Q2 2020 compared to Q2 2019, due to the afore-mentioned government-imposed state of emergency. The reduction in throughput was partially offset by higher head grades and higher silver and gold recoveries at Yauricocha, which resulted in a 15% decrease in copper equivalent pounds produced during Q2 2020 compared to Q2 2019.

At Bolivar, higher grades and recoveries were partially offset by the 5% decrease in throughput, resulting in a 24% increase in copper equivalent pounds produced during Q2 2020 compared to Q2 2019. A mere 5% decrease in throughput, despite the COVID-19 related shutdown, resulted from the increased plant capacity attributable to the expansion completed at the end of 2019.

Luis Marchese, President, and CEO of Sierra Metals, commented: “The Company had solid production results in the second quarter despite the negative implications of the shutdowns that occurred due to the COVID-19 pandemic.  At Yauricocha and Bolivar, the Company was able to maintain essential activities while fully complying with the government protocols during the state of emergency. I want to thank our workers at the mines for their dedication and efforts during these difficult times, which lead the Company to have remarkably high productivity levels. While Cusi remained in care and maintenance due to its proximity to urban centers, we are working through a process that will allow us to safely return workers to the mine and ramp up production.  Through the period of downtime, we reviewed our processes at each mine site, targeting improving efficiencies and identifying optimized exploration sequencing to add to our reserves and resources. As we ramp-up towards full capacity, we continue to adhere to strict health protocols protecting our operations, our employees, and the communities in which we operate.”

 

Consolidated Production Results

(1) Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following realized
prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2019 were
calculated using the following realized prices: $14.88/oz Ag, $2.75/lb Cu,
$1.20/lb Zn, $0.85/lb Pb, $1,323/oz Au. Silver equivalent ounces and copper and
zinc equivalent pounds for 6M 2020 were calculated using the following realized
prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2019 were
calculated using the following realized prices: $15.23/oz Ag, $2.80/lb Cu,
$/1.22lb Zn, $0.90/lb Pb, $1,314/oz Au.

 

Yauricocha Mine, Peru

The Yauricocha Mine processed 202,534 tonnes during Q2 2020, which is a 20% decrease from Q2 2019. The decline resulted from the government-imposed state of emergency, which remained in force until June 4, 2020, when the Peruvian government announced the resumption of mining activities as part of phase two of its economic recovery plan. Gradually ramping up its operation, the mine achieved an average throughput of approximately 2,600 tpd in June. The average production for Q2 2020 was 2,315 tpd.  The Yauricocha mine has the operational flexibility to recover part of the lost production.

Higher head grades and higher silver and gold recoveries partially offset the impact of lower throughput resulting in a 15% decrease in copper equivalent metal production compared to Q2 2019. Copper and lead recoveries were slightly below the Q2 2019 recoveries, while zinc recoveries were in-line with Q2 2019. Head grades for all metals were higher due to the mining in the cuerpos chicos. Copper grades were particularly higher as a greater proportion of copper sulphides were processed versus polymetallic ore as compared to Q2 2019. Installation of the SK-240 cells and grade analyzers helped achieve higher silver and gold recoveries.

A summary of production from the Yauricocha Mine for Q2 2020 is provided below:

(1) Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following realized
prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2019 were
calculated using the following realized prices: $14.88/oz Ag, $2.75/lb Cu,
$1.20/lb Zn, $0.85/lb Pb, $1,323/oz Au. Silver equivalent ounces and copper and
zinc equivalent pounds for 6M 2020 were calculated using the following realized
prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2019 were
calculated using the following realized prices: $15.23/oz Ag, $2.80/lb Cu, $/1.22lb
Zn, $0.90/lb Pb, $1,314/oz Au.

 

Bolivar Mine, Mexico

The Bolivar Mine processed 308,951 tonnes in Q2 2020, which is a mere 5% decrease from the Q2 2019 throughput, despite the impact of COVID-19. The average daily throughput realized during the quarter was 3,531 tpd. Head grades for copper, silver, and gold were 8%, 44%, and 28% higher, respectively, as compared to Q2 2019. Higher head grades and higher copper and silver recoveries, partially offset by lower throughput, resulted in a 24% increase in copper equivalent pounds produced during Q2 2020 compared to Q2 2019. In Q2 2020, copper production increased by 7% to 5,544,000 pounds, silver production increased 41% to 214,000 ounces, and gold production increased 21% to 1,912 ounces compared to Q2 2019.

Development and infrastructure improvements, which were on hold during Q2 2020, are planned to resume in the second half of the year in the effort to push throughput at Bolivar to 5,000 tpd by the end of 2020. Copper grades are expected to increase during the second half of the year, as mining is planned in the Mina de Fierro and Bolivar West zones.

A summary of production for the Bolivar Mine for Q2 2020 is provided below:

(1) Silver equivalent ounces and copper and zinc
equivalent pounds for Q2 2020 were calculated using the following realized prices:
$16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Silver
equivalent ounces and copper and zinc equivalent pounds for Q1 2019 were
calculated using the following realized prices: $14.88/oz Ag, $2.75/lb Cu,
$1.20/lb Zn, $0.85/lb Pb, $1,323/oz Au. Silver equivalent ounces and copper and
zinc equivalent pounds for 6M 2020 were calculated using the following realized
prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au.
Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2019 were
calculated using the following realized prices: $15.23/oz Ag, $2.80/lb Cu,
$/1.22lb Zn, $0.90/lb Pb, $1,314/oz Au.

 

Cusi Mine, Mexico

The Cusi Mine remained in care and maintenance throughout the second quarter of 2020, due to the government-mandated shutdown to contain the advancement of COVID-19. As a result, there was no production from Cusi during the quarter. As announced in the press release dated June 18, 2020, this care and maintenance period has allowed the management team to complete an optimized view of the entire mine operation. Changes in the interpretation of the geological system have been made based on updated information from a stockwork tonnage system to a vein model system, which is expected to help better control and improve head grades, dilution and make better use of Cusi’s silver mineral resources.

Mine development is currently on-going at Cusi in a zone that will bypass the previously announced area of subsidence and provide access to higher-grade economic ore to provide feed for the mill. Production is expected to recommence after the mine development work is completed and once a process can be implemented at the mine to mitigate risk to employees at the site through a testing and quarantine methodology similar to the Company’s other operations.

The Company plans to drill an additional 1,000 meters to better understand the mineralization of the new high-grade silver zone in an area called Northeast – Southwest System of Epithermal Veins, as mentioned in the press release dated June 18, 2020.

The management team will continue to ramp throughput up to the targeted 1,200 tpd by the end of the year and will commence studies in the second half of the year for the potential expansion of Cusi.

A summary of production for the Cusi Mine for Q2 2020 is provided below:

(1) Silver equivalent ounces and copper and zinc equivalent pounds for Q2 2020 were calculated using the following realized prices: $16.59/oz Ag, $2.40/lb Cu, $0.89/lb Zn, $0.76/lb Pb, $1,722/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for Q1 2019 were calculated using the following realized prices: $14.88/oz Ag, $2.75/lb Cu, $1.20/lb Zn, $0.85/lb Pb, $1,323/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2020 were calculated using the following realized prices: $16.58/oz Ag, $2.46/lb Cu, $0.91/lb Zn, $0.78/lb Pb, $1,654/oz Au. Silver equivalent ounces and copper and zinc equivalent pounds for 6M 2019 were calculated using the following realized prices: $15.23/oz Ag, $2.80/lb Cu, $/1.22lb Zn, $0.90/lb Pb, $1,314/oz Au.

 

Quality Control

All technical data contained in this news release has been reviewed and approved by Americo Zuzunaga, FAusIMM CP (Mining Engineer) and Vice President of Corporate Planning is a Qualified Person and chartered professional qualifying as a Competent Person under the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves.

Augusto Chung, FAusIMM CP (Metallurgist) and Consultant to Sierra Metals, is a Qualified Person and chartered professional qualifying as a Competent Person on metallurgical processes.

 

About Sierra Metals

Sierra Metals Inc. is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.

The Company’s Common Shares trade on the Bolsa de Valores de Lima and on the Toronto Stock Exchange under the symbol “SMT” and on the NYSE American Exchange under the symbol “SMTS”.

For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:

 

Mike McAllister V.P., Investor Relations Sierra Metals Inc. +1 (416) 366-7777 Email: info@sierrametals.com

Luis Marchese CEO Sierra Metals Inc. +1(416) 366-7777

Continue to Follow, Like and Watch our progress:

Web: www.sierrametals.com | Twitter: sierrametals | Facebook: SierraMetalsInc | LinkedIn: Sierra Metals Inc | 
Instagram: sierrametals

 

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian and U.S. securities laws (collectively, “forward-looking
information“). Forward-looking information includes, but is not limited to, statements with respect to the date of the 2020 Shareholders’ Meeting and the anticipated filing of the Compensation Disclosure. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information.

Forward-looking information is subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the risks described under the heading “Risk Factors” in the Company’s annual information form dated March 30, 2020 for its fiscal year ended December 31, 2019 and other risks identified in the Company’s filings with Canadian securities regulators and the United States Securities and Exchange Commission, which filings are available at www.sedar.com and www.sec.gov, respectively.

The risk factors referred to above are not an exhaustive list of the factors that may affect any of the Company’s forward-looking information. Forward-looking information includes statements about the future and is inherently uncertain, and the Company’s actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. The Company’s statements containing forward-looking information are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update such forward-looking information if circumstances or management’s beliefs, expectations or opinions should change, other than as required by applicable law. For the reasons set forth above, one should not place undue reliance on forward-looking information.

Wednesday, July 15, 2020

Indonesia Energy Corp (INDO)

First Investor Conference Call Highlights Growth Opportunities

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.

INDO management held their first ever conference call with the investment community. The company brought the full slate of its management team located both in Jakarta and California, including the Founder & CEO, President, Chief Investment Officer, COO and Chief Development Officer. The call mainly outlined its previously-announced drilling plans, but there were a few new items of interest.


Drilling plans on track. The company is moving “full steam ahead” with its drilling plans despite lower oil prices. The company is finalizing bidding the drilling process and expects to drill the first of six oil wells in the Kruh Block in September. Each well will take …

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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, July 15, 2020

Endeavour Silver (EXK)(EDR:CA)

EXK Unveils Final Terronera Preliminary Feasibility Study

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

Highlights of the study. The final preliminary feasibility study (PFS) highlights enhanced project economics, including cumulative after-tax free cash flow of $217.4 million and a 30% internal rate of return based on silver and gold prices of $15.97 and $1,419 per ounce, respectively. The previous study released in 2018 forecast cumulative after-tax free cash flow of $193.2 million and a 23.5% IRR. Part of the difference is due to a 6.7% increase in processing capacity to 1,600 tons per day. Expected life of mine payable silver and gold ounces produced increased 6.8% and 22.4%, respectively, relative to the 2018 study.


Next steps. Endeavour will proceed with a feasibility study over the next 12 months to bolster confidence in the project and enhance access to financing alternatives. Once a development decision is made, the project could …








Click to get the full report

This 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. 

Palladium One Resumes Drilling at The Läntinen Koillismaa PGE-Cu-Ni Project in Finland

July 14, 2020 –
Vancouver, British Columbia – Palladium One Mining Inc. (
TSX-V: PDM, FRA:
7N11, OTC: NKORF) (the “Company” or “Palladium One“) is pleased to report that it is preparing to resume its drill program, in August, at the Läntinen Koillismaa (“LK”) PGE-Cu-Ni Project, located in north central Finland.  Initial drilling will be focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South zone, which hosts a greater than four (4) kilometer long Induced Polarization chargeability anomaly. (Figure 1)

In March 2020, the Phase 1 exploration program was suspended due to the COVID-19 pandemic (see news release – March 24, 2020). Initiated in January 2020, the Phase 1 program completed several tasks prior to being suspended, including:

• 85 kilometers of high-resolution 3D Induced Polarization (IP) survey, covering 12 kilometers (5-survey grid areas) of the 38-kilometer favourable basal contact,
• 385 kilometers of high-resolution drone-based Magnetic (Mag) survey, covering 17 kilometers of the favourable basal contact,
• 1,920 meters of a 5,000-meter planned diamond drilling program.

At the LK project, IP has proven very reliable in identifying PGE-Ni-Cu mineralization. During the winter program, multiple new and significant IP chargeability anomalies were outlined – see below for highlights.  The high-resolution magnetic survey, which was also undertaken earlier this year, proved invaluable for structural interpretation and in outlining prospective peridotitic rocks, which commonly host PGE-Cu-Ni mineralization. Integration and 3D modelling of this data has produced numerous high-quality drill targets for testing.

President and CEO, Derrick Weyrauch commented “To date our exploration program has been very successful.  We identified an abundance of large, high-quality drill targets throughout the LK project. With
the large number of excellent drill targets at hand, we are taking a very disciplined approach to drilling prioritization.  A prime example is Kaukua South (Figure 1.), when we began the winter program this was an interesting but poorly understood zone. As multiple IP results
demonstrated, we learned that Kaukua South extends for over 4 kilometers of strike length, of which 3.5 kilometers has never been drill tested. Considering that Kaukua South has known PGE-rich mineralization similar to the Kaukua
deposit, it will be a primary focus of our resumed drill program“.

 

Figure 1. Plan view of the 2008 and 2020 (current) IP survey in the Kaukua Area. The 2008 IP survey area is outlined in blue, while the 2020 survey is outlined in green. The Kaukua deposit’s optimised open pit is outlined by a dashed black line. The Kaukua deposit hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq (see press release September 9, 2019). The newly expanded Kaukua South Zone is outlined by a dashed orange line. The 2008 IP survey was instrumental in identifying the Kaukua Deposit. Note that the 2008 survey used different equipment, consisting of a 3-line 3D system, whereas the 2020 survey used a 5-line 3D system, as a result the two surveys are not exactly comparable.

Highlights of Phase 1 Exploration Program Results, Before
Suspension Due to COVID

• IP Survey Grid #1 @ Kaukua
  South (~400 meters south of the Kaukua deposit)
• Discovered a chargeability anomaly over 4,000 meters long, including 3,500 meters which has never been drill tested (Figure
  1), (see news release -April 14, 2020).
• Extending the known PGE-rich mineralization is a top priority when drilling resumes (e.g. 32.95m @ 1.05g/t PGE (0.74g/t Pd, 0.24g/t Pt, 0.07g/t Au), and 0.17% Cu, 0.13% Ni) in hole KAU08-035).
• IP Survey Grid #2 @ Murtolampi (~2,000 meters northeast of the Kaukua deposit)
• Discovered a 750-meter long chargeability anomaly the core of which has never been drill tested.
• This anomaly is associated with high PGE prospecting samples collected in 2019 (e.g. prospecting sample NP-LK-003 which returned 3.11g/t PGE (1.86g/t Pd, 1.11 g/t Pt, 0.14 g/t Au), and 0.78% Cu, 0.13% Ni) (see news release August 12, 2019).
• The anomaly is proximal to limited, shallow (~40-meter deep), historic drill holes having high PGE values from the 1990’s, that were never followed up with more drilling, (see news release – March 10, 2020).
• IP Survey Grid #3 @ Haukiaho (~12,000 meters south of the Kaukua deposit and host to the historic Haukiaho resource)
• Discovered three new chargeability anomalies (see news release – May 7, 2020). 
• The western anomaly corresponds with the 2013 historic Haukiaho resource.
• The central anomaly occurs underneath the bulk of the historic drilling in this area, suggesting the best mineralization has not been tested.
• The eastern anomaly is associated  with sparse shallow historic drilling and occurs underneath 2019 prospecting sample NP-LK-002 which returned 0.96 g/t PGE (0.18 g/t Pt, 0.56 g/t Pd, 0.21 g/t Au) 0.51% Cu, 0.33% Ni  (see news release August 12, 2019)
• IP Survey Grid #4 @ Haukiaho East (~7,500 meters east of the historic Haukiaho resource)
• Discovered a 1,600-meter long chargeability anomaly (see news release – May 26, 2020)
• The anomaly is coincident with a strong magnetic high suggesting peridotitic rocks, which are characteristic of Haukiaho-style PGE-Ni-Cu mineralization.
• IP Survey Grid #5 @ Tilsa (~6,000 meters west of the historic Haukiaho resource)
• Discovered a new 1,000-meter long chargeability anomaly (see news release – June 11, 2020).
• The strongest part of the newly identified chargeability anomaly has never been drill tested.
• The survey also identified two other parallel chargeability and magnetic anomalies possibly representing fault repetitions of the favourable basal phase of the Koillismaa complex.
• Diamond Drilling
• The Company completed twelve (12) drill holes (1,920 meters), prior to the suspension of drilling in March 2020, located in the following zones:
• Kaukua Deposit Area, 6 holes.
• Kaukua South Extension, 1 hole.
• Murtolampi, 2 holes.
• Haukiaho, 3 holes
• All assay results are pending.

Qualified Person
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.

About Palladium One
Palladium One Mining Inc.
is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Läntinen Koillismaa (“LK”) and Kostonjarvi (“KS”) PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. All projects are 100% owned and are of a district scale.  LK is an advanced project targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly.  Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 3,100-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

ON BEHALF OF THE BOARD
“Derrick
Weyrauch”
President & CEO,
Director

For further information contact:
Derrick Weyrauch,
President & CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as
that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release is not an offer or a solicitation of an offer
of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration.

Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

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

Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …









Click to get the full report.

This 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. 

Friday, July 10, 2020

Endeavour Silver (EXK)(EDR:CA)

Higher Commodity Prices Expected to Benefit 2H Performance

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

Second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 43.7% and 39.1% to 596,545 ounces and 5,817 ounces, respectively. Sequentially, silver and gold production declined 30.4% and 31.4%, respectively. Second quarter production was negatively impacted by the temporary suspension of mining operations in Mexico due government-mandated work restrictions. Mining operations resumed in late May. The bright spot for the quarter was the improvement at the Guanacevi mine as a result of access to new higher grade ore bodies. We expect improvement at the Bolanitos mine beginning in the third quarter.


Updating estimates. We have narrowed our 2020 loss per share estimate to $(0.14) from $(0.15) based on higher gold and silver prices. Additionally, we have increased our 2021 EPS estimate to …








Click to get the full report

This 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. 

Friday, July 10, 2020

Minerals Industry Report

Metals & Mining: 2020-2Q Review and Outlook

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

• Mining equities outperform the broader market. During the second quarter of 2020, mining companies (as measured by the XME) gained 31.4% compared to 20.0% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 59.2% and 76.4%, respectively. During the second quarter, gold futures prices increased 12.8%, while silver futures prices increased 31.3%. With respect to base metals, copper, lead, and zinc futures prices increased 21.5%, 10.5%, and 6.0%, respectively.
• Outlook for precious metals remains favorable. In our view, the outlook for gold remains constructive based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe-haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions. While silver generally lags gold during periods of rising demand for precious metals, silver finally caught a bid in May and finished the month up almost 24%. At this time, we think silver may offer more immediate upside potential relative to gold.
• Base metals should benefit from a rebound in industrial activity. Following a challenging first quarter, base metals prices, led by copper, responded to a more optimistic industrial demand outlook that was driven by supportive fiscal and monetary policies. Positive demand signals from China, the first country to begin recovering from the negative impacts of COVID-19, rippled across various commodities, including crude oil.
• Mining equities provide leverage to rising commodity prices. In our view, the backdrop is uniquely constructive for both precious and base metals since both are likely to benefit from a rising tide of fiscal and monetary stimulus and their repercussions. Publicly traded equities of mining & metals equities are an attractive way to gain metals exposure due to their leverage to commodity prices.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	88%	43%
Market Perform: potential return is -15% to 15% of the current price	12%	3%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)

Friday, July 10, 2020

Great Panther Mining (GPL)(GPR:CA)

Encouraging Initial Results from the 2020 Tucano Drilling Program

As of April 24, 2020, Noble Capital Markets research on Great Panther Mining is published under ticker symbols (GPL and GPR:CA). The price target is in USD and based on ticker symbol GPL. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Great Panther Mining Limited, headquartered in Vancouver, Canada, is a precious metals mining and exploration company that operates three mines. These include: 1) the Tucano gold mine in Amapa State, Brazil, 2) the Guanajuato mine complex which includes the Guanajuato and San Ignacio mines in Mexico, and 3) the Topia mine in Mexico. Great Panther also owns the Coricancha Mine in Peru, which is expected to restart operations in 2020. The shares are traded under the ticker “GPR” on the Toronto Stock Exchange and under the ticker “GPL” on the NYSE American.

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

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

Second quarter production results. Great Panther produced 38,540 gold equivalent ounces, including 36,356 ounces of gold and 142,457 ounces of silver. Compared with the prior year period, gold production increased 8.7%, while silver production declined 59.3%. Sequentially, gold production increased 25.6%, while silver production decreased 62.0%. Notably, Tucano mine gold production increased 18.5% on a year-over-year basis and 35.3% sequentially due to greater ore processing rates and higher gold grades and recoveries. The company’s operations in Mexico, which produce mostly silver, resumed production in June following government mandated COVID-19 work restrictions.

Updating estimates. The company provided updated 2020 production guidance and expects to produce between 146,000 and 158,000 gold equivalent ounces, inclusive of the Topia mine. We have narrowed our 2020 loss per share estimate to …









Click to get the full report.

This 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. 

Friday, July 10, 2020

Endeavour Silver (EXK)(EDR:CA)

Higher Commodity Prices Expected to Benefit 2H Performance

As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

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

Second quarter production results. Compared to the prior year period, second quarter silver and gold production declined 43.7% and 39.1% to 596,545 ounces and 5,817 ounces, respectively. Sequentially, silver and gold production declined 30.4% and 31.4%, respectively. Second quarter production was negatively impacted by the temporary suspension of mining operations in Mexico due government-mandated work restrictions. Mining operations resumed in late May. The bright spot for the quarter was the improvement at the Guanacevi mine as a result of access to new higher grade ore bodies. We expect improvement at the Bolanitos mine beginning in the third quarter.


Updating estimates. We have narrowed our 2020 loss per share estimate to $(0.14) from $(0.15) based on higher gold and silver prices. Additionally, we have increased our 2021 EPS estimate to …








Click to get the full report

This 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. 

Friday, July 10, 2020

Minerals Industry Report

Metals & Mining: 2020-2Q Review and Outlook

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

Listen To The Analyst

Refer to end of report for Analyst Certification & Disclosures

• Mining equities outperform the broader market. During the second quarter of 2020, mining companies (as measured by the XME) gained 31.4% compared to 20.0% for the broader market as measured by the S&P 500 index. The VanEck Vectors Gold Miners (GDX) and Junior Gold Miners (GDXJ) ETFs were up 59.2% and 76.4%, respectively. During the second quarter, gold futures prices increased 12.8%, while silver futures prices increased 31.3%. With respect to base metals, copper, lead, and zinc futures prices increased 21.5%, 10.5%, and 6.0%, respectively.
• Outlook for precious metals remains favorable. In our view, the outlook for gold remains constructive based on U.S. and global monetary and fiscal policies that support gold as a store of value. Gold’s safe-haven appeal has increased due to economic concerns caused by a resurgence of COVID-19 cases and geopolitical frictions. While silver generally lags gold during periods of rising demand for precious metals, silver finally caught a bid in May and finished the month up almost 24%. At this time, we think silver may offer more immediate upside potential relative to gold.
• Base metals should benefit from a rebound in industrial activity. Following a challenging first quarter, base metals prices, led by copper, responded to a more optimistic industrial demand outlook that was driven by supportive fiscal and monetary policies. Positive demand signals from China, the first country to begin recovering from the negative impacts of COVID-19, rippled across various commodities, including crude oil.
• Mining equities provide leverage to rising commodity prices. In our view, the backdrop is uniquely constructive for both precious and base metals since both are likely to benefit from a rising tide of fiscal and monetary stimulus and their repercussions. Publicly traded equities of mining & metals equities are an attractive way to gain metals exposure due to their leverage to commodity prices.

GENERAL DISCLAIMERS

All statements or opinions contained herein that include the words “we”, “us”, or “our” are solely the responsibility of Noble Capital Markets, Inc.(“Noble”) and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results. Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.
The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

Company Specific Disclosures

The following disclosures relate to relationships between Noble and the company (the “Company”) covered by the Noble Research Division and referred to in this research report.
Noble is not a market maker in any of the companies mentioned in this report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) with any or all of the companies mentioned in this report within the next 3 months

ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE

Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis.
Named WSJ ‘Best on the Street’ Analyst and Forbes/StarMine’s “Best Brokerage Analyst.”
FINRA licenses 7, 24, 63, 87

WARNING

This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate for any recipient particular investment objectives, financial situation or particular needs. Prior to making any investment decision, recipients should assess, or seek advice from their advisors, on whether any relevant part of this report is appropriate to their individual circumstances. If a recipient was referred to Noble Capital Markets, Inc. by an investment advisor, that advisor may receive a benefit in respect of
transactions effected on the recipients behalf, details of which will be available on request in regard to a transaction that involves a personalized securities recommendation. Additional risks associated with the security mentioned in this report that might impede achievement of the target can be found in its initial report issued by Noble Capital Markets, Inc. This report may not be reproduced, distributed or published for any purpose unless authorized by Noble Capital Markets, Inc.

RESEARCH ANALYST CERTIFICATION

Independence Of View
All views expressed in this report accurately reflect my personal views about the subject securities or issuers.

Receipt of Compensation
No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.

Ownership and Material Conflicts of Interest
Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOBLE RATINGS DEFINITIONS	% OF SECURITIES COVERED	% IB CLIENTS
Outperform: potential return is >15% above the current price	88%	43%
Market Perform: potential return is -15% to 15% of the current price	12%	3%
Underperform: potential return is >15% below the current price	0%	0%

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. Additional information is available upon request. Any recipient of this report that wishes further information regarding the subject company or the disclosure information mentioned herein, should contact Noble Capital Markets, Inc. by mail or phone.

Noble Capital Markets, Inc.
225 NE Mizner Blvd. Suite 150
Boca Raton, FL 33432
561-994-1191

Noble Capital Markets, Inc. is a FINRA (Financial Industry Regulatory Authority) registered broker/dealer.
Noble Capital Markets, Inc. is an MSRB (Municipal Securities Rulemaking Board) registered broker/dealer.
Member – SIPC (Securities Investor Protection Corporation)