Category: Natural Resources

Tuesday, March 17, 2020

Grindrod Shipping (GRIN)

Weaker Operating Results, But 2H2020 Recovery Expected

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

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

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

Reported adjusted EBITDA of $39.7 million was a sharp improvement over the 2018 number of -$0.1 million. Adjusting for IFRS 16 adoption, we calculate that adjusted EBITDA was $24.2 million in 2019, which was below expectations due to dry bulk market weakness late in the year.


Adjusting estimates to reflect 2019 operating results and current dry bulk market weakness. Our 2020 EBITDA estimate drops to ~$40 million from $59 million. Starting with 1Q2020, operating results will be reported quarterly. While the dry bulk market is currently weak due to seasonality and havoc wreaked by the spread of the coronavirus, we believe that supply growth is muted and…





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NOTE: investment decisions should not be based upon the content of
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making any investment decision. 

Wednesday, March 11, 2020

InPlay Oil (IPOOF)

Earnings Preview

InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

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

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

We are lowering our 2020 ebitda and EPS estimates ahead of earnings to reflect a sharp drop in oil prices. We have lowered our WTI estimate to $45 from $52. With the decline, our 2020 ebitda estimate drops to $15 million from $35 million and our EPS estimate drops to $(0.25) from $(0.14). We would note that our oil price assumption is still above current oil prices. We are not adjusting our 2021 estimates at this point under the assumptions that oil prices will return to normal when the Coronavirus subsides and the global economy strengthens.


We are also reducing our capital investment and production assumptions. Management has indicated a plan to hold expenditures to a level near cash flow. As a result, we are lowering 2020 capital investments to $20 million from $35 million. This will cut the number of wells drilled down from 11-12 to 6-8. We are also lowering our 2020 production from 5,415 BOE/d to…









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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
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Wednesday, March 11, 2020

InPlay Oil (IPOOF)

Earnings Preview

InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

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

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

We are lowering our 2020 ebitda and EPS estimates ahead of earnings to reflect a sharp drop in oil prices. We have lowered our WTI estimate to $45 from $52. With the decline, our 2020 ebitda estimate drops to $15 million from $35 million and our EPS estimate drops to $(0.25) from $(0.14). We would note that our oil price assumption is still above current oil prices. We are not adjusting our 2021 estimates at this point under the assumptions that oil prices will return to normal when the Coronavirus subsides and the global economy strengthens.


We are also reducing our capital investment and production assumptions. Management has indicated a plan to hold expenditures to a level near cash flow. As a result, we are lowering 2020 capital investments to $20 million from $35 million. This will cut the number of wells drilled down from 11-12 to 6-8. We are also lowering our 2020 production from 5,415 BOE/d to…









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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. 

Tuesday, March 10, 2020

Great Panther Mining Limited (GPL)

Company Update Is a Mixed Bag

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.

Updated technical reports. Great Panther released results from updated technical reports for its Guanajuato, San Ignacio and Tucano mines. Compared with previous reports, estimated mineral resources for the Guanajuato mine increased by 1.5 million silver equivalent ounces as a result of 2019 exploration efforts, while decreasing by 6.4 million silver equivalent ounces at San Ignacio due, in part, to depletion. Tucano mineral reserves and resources declined, by 489,000 and 500,000 gold ounces, respectively.

Topia mine operations to be suspended.  The company has stopped depositing tailings at its Phase II tailing storage facility due to evidence of material movement underlying the facility. We have assumed that mining operations at the Topia mine are suspended until an alternate solution is available. Alternatives include continued use of…









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

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, March 10, 2020

Great Panther Mining Limited (GPL)

Company Update Is a Mixed Bag

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.

Updated technical reports. Great Panther released results from updated technical reports for its Guanajuato, San Ignacio and Tucano mines. Compared with previous reports, estimated mineral resources for the Guanajuato mine increased by 1.5 million silver equivalent ounces as a result of 2019 exploration efforts, while decreasing by 6.4 million silver equivalent ounces at San Ignacio due, in part, to depletion. Tucano mineral reserves and resources declined, by 489,000 and 500,000 gold ounces, respectively.

Topia mine operations to be suspended.  The company has stopped depositing tailings at its Phase II tailing storage facility due to evidence of material movement underlying the facility. We have assumed that mining operations at the Topia mine are suspended until an alternate solution is available. Alternatives include continued use of…









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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. 

Wednesday, February 26, 2020

Endeavour Silver Corp (EXK)

Lowering Estimates for 2020; Rating Reset to Market Perform

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.

EXK reports fourth quarter and full year earnings. EXK reported a full year net loss of $48.1 million, or ($0.36) per share, compared to our forecast of a loss of $37.8 million, or ($0.28) per share. The company reported a fourth quarter loss of $17.9 million, or ($0.13) per share, compared to our estimate of a loss of $7.6 million, or ($0.05) per share. While revenue exceeded our forecast, cost of sales and expenses were above our estimates.

Updating estimates. We have reduced our 2020 and 2021 EPS estimates to $0.01 and $0.05 from $0.04 and and $0.06, respectively. We forecast 2020 and 2021 EBITDA of $34.1 million and $42.0 million, respectively. Our revised 2020 estimates reflect more gradual operational improvement at the Bolanitos mine and…

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

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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, February 26, 2020

Endeavour Silver Corp (EXK)

Lowering Estimates for 2020; Rating Reset to Market Perform

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.

EXK reports fourth quarter and full year earnings. EXK reported a full year net loss of $48.1 million, or ($0.36) per share, compared to our forecast of a loss of $37.8 million, or ($0.28) per share. The company reported a fourth quarter loss of $17.9 million, or ($0.13) per share, compared to our estimate of a loss of $7.6 million, or ($0.05) per share. While revenue exceeded our forecast, cost of sales and expenses were above our estimates.

Updating estimates. We have reduced our 2020 and 2021 EPS estimates to $0.01 and $0.05 from $0.04 and and $0.06, respectively. We forecast 2020 and 2021 EBITDA of $34.1 million and $42.0 million, respectively. Our revised 2020 estimates reflect more gradual operational improvement at the Bolanitos mine and…

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

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, February 25, 2020

Orion Group Holdings (ORN)

NobleCon 16 Review – 4Q2019 Results Out Shortly

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

CFO Robert Tabb’s presentation at our NobleCon16 conference highlighted progress on the Invest, Scale and Grow (ISG) restructuring program and other positives, including the recent $47 million Industrial award.

Upcoming 4Q2019 operating results and earnings call should be well received. ORN reports tomorrow (2/26) AMC and will host a call on Thursday (2/27) at 10am EST. Call number is 201-493-6739 and code is Orion Group. We expect gross profit of $15.2 million and EBITDA of $8.2 million with gross margin of 9.5% and EBITDA margin of 5.1%. Seasonality exists but…

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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).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Tuesday, February 25, 2020

Orion Group Holdings (ORN)

NobleCon 16 Review – 4Q2019 Results Out Shortly

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

CFO Robert Tabb’s presentation at our NobleCon16 conference highlighted progress on the Invest, Scale and Grow (ISG) restructuring program and other positives, including the recent $47 million Industrial award.

Upcoming 4Q2019 operating results and earnings call should be well received. ORN reports tomorrow (2/26) AMC and will host a call on Thursday (2/27) at 10am EST. Call number is 201-493-6739 and code is Orion Group. We expect gross profit of $15.2 million and EBITDA of $8.2 million with gross margin of 9.5% and EBITDA margin of 5.1%. Seasonality exists but…

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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. 

Monday, March 2, 2020

Orion Group Holdings (ORN)

Set Up for Positive Year Drives Higher Price Target

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

A solid end to a transformational year. 4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. High backlog, improving execution and ISG restructuring create tailwinds into 2020.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. Backlog is $341 million in Marine and $232 million in…

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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).

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Monday, February 24, 2020

Newrange Gold Corp (NRG:CA)

Additional Ground Is Staked at Pamlico Based on IP Survey Results

Newrange Gold Corp is an exploration stage company focused on acquiring and exploring exploration and evaluation assets in Colombia and the United States. The Company operates in a single reportable operating segment-the acquisition, exploration, and development of mineral properties. Some of the projects acquired by the company are Pamlico gold project in Nevada and Rocky mountain project in Colorado. The company also holds an interest in the Yarumalito property, El Dovio property and Anori property in Colombia.

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.

IP Survey generates new drilling targets.  Newrange Gold announced that its recently completed and interpreted Induced Polarization and Resistivity (IP) survey at the company’s Pamlico project generated several targets for its planned drilling program which is expected to commence in the first quarter of 2020.

Expanding the property to accommodate future exploration. Based on the trend and extent of anomalies revealed in the survey, Newrange acquired 105 additional claims and added 878 hectares of contiguous property bringing the Pamlico project total to 2,548 hectares. An anomaly is any variation from the norm which may indicate the presence of…

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

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NOTE: investment decisions should not be based upon the content of
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making any investment decision. 

Monday, February 24, 2020

Coeur Mining (CDE)

Focusing on the Real Value Drivers

Coeur Mining Inc is a metals producer focused on mining precious minerals in the Americas. It is involved in the discovery and mining of gold and silver and generates the vast majority of revenue from the sale of these precious metals. The operating mines of the company are palmarejo, rochester, wharf, and kensington. Its projects are located in the United States, Canada and Mexico, and North America.

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

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

CDE reports full year 2019 earnings.  On an adjusted basis, the company reported fourth quarter and full year losses per share of ($0.01) and ($0.25), respectively, compared to our estimates of ($0.06) and ($0.30). Positive fair value adjustments and a tax benefit accounted for the variance to our estimate. Fourth quarter and full year EBITDA were $59.8 million and $173.9 million, respectively. Including non-cash write downs of inventory and asset impairments, the company reported fourth quarter and full year losses per share of ($1.13) and ($1.59), respectively.

Production guidance for 2020. Coeur expects to produce 10.3 million to 13.3 million ounces of silver and 317,000 to 363,000 ounces of gold. In 2019, the company produced 11.7 million ounces of silver, 359,418 ounces of gold, 17.1 million pounds of zinc and 16.6 million pounds of lead. The company is suspending operations at the Silvertip mine due an inability to turn a profit at current zinc and…

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

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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Monday, March 2, 2020

Orion Group Holdings (ORN)

Set Up for Positive Year Drives Higher Price Target

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

A solid end to a transformational year. 4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. High backlog, improving execution and ISG restructuring create tailwinds into 2020.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. Backlog is $341 million in Marine and $232 million in…

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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.