Category: Natural Resources

Monday, December 2, 2019

Aurania Resources Ltd. (ARU:CA)

On the Road to Finding the Lost Cities?

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

Discovery could lead the way to find the Lost Cities.  Vestiges of an old road were discovered in the central part of Aurania’s Lost Cities – Cutucu project. The road is believed to be one that linked two historic gold mining centers, Sevilla de Oro and Logrono de los Caballeros, both believed to be within the Lost Cities project area.

Next steps.  A LiDAR survey will be expedited over the area which should be able to detect extensions to the road and its termination at the historical mine sites. Findings will be incorporated into Metron’s data analytics process to…

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This Company Sponored 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 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, November 22, 2019

Aurania Resources Ltd. (ARU:CA)

Drilling at Yawi is Off to a Good Start

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

First drill hole completed at Yawi. Scout drilling at the first hole at Yawi Target A has been completed and samples have been submitted to the laboratory. The second bore hole at Target A is currently being drilled. Recall that four targets have been identified at Yawi and a fifth is being mapped and soil sampled to determine whether it warrants scout drilling.

Refining targets for future drilling. Aurania’s heliborne geophysics program has been completed on the entire project area. The company’s stream sediment sampling program, which has been completed on over 50% of the Lost Cities Project, has…

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This Company Sponored 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 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 November 15, 2019

Sierra Metals (SMTS)

Higher EBITDA and Operating Cash Flows Driven by Strong Q3 Production

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 full report for price target, fundamental analysis and rating.

• Third quarter financial results. Sierra Metals generated net income attributable to shareholders of $1.8 million, or $0.01 per share, compared to $1.9 million, or $0.01 per share, during the prior year period. Adjusted EBITDA amounted to $21.6 million versus $18.2 million during the prior year period and our estimate of $23.4 million. The increase relative to the prior year period was attributed to higher revenue driven by production growth.
• Updating estimates. We are revising our full year 2019 EPS and EBITDA estimates to $0.03 and $69.2 million from $0.08 and $74.2 million, respectively. Additionally, we have trimmed our 2020 EPS and EBITDA estimates to $0.26 and $134.5 million from $0.30 and…
  
  

  
  

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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 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, November 15, 2019

Pyxis Tankers Inc. (PXS)

Solid Improvement Likely Extends Into Next Year

Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.

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

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

• Positive direction with 3Q2019 EBITDA of $2.1 million ahead of expectations due to stronger MR and small tankers performance. 3Q2019 TCE rates of $12,360/day and operating days of 500 were up sequentially.
  
• Increasing 2019 Estimate to $6.2 million to reflect quarterly results and forward cover. TCE rate estimate is $11,899/day and forward cover is 57% of available…
  
  

  
  

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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 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, November 13, 2019

Genie Energy Ltd. (GNE)

Boring quarter welcomed after rough 2Q

Genie Energy Ltd, through its subsidiaries, operates as a retail energy provider; and an oil and gas exploration company. Its segments are Genie Retail Energy (GRE) which is the key revenue generator, Genie Energy Services (GES), and Genie Oil and Gas (GOGAS). GRE owns and operates retail energy providers (REPs), including IDT Energy, Residents Energy, Town Square Energy, and Mirabito. Its REP businesses resell electricity and natural gas to residential and small business customers in the Eastern and Midwestern United States. GES designs, manufactures and distributes solar panels and also offers energy brokerage and advisory services. GOGAS is an oil and gas exploration company that owns an interest in a contracted drilling services operation and interest in Afek Oil and Gas (Afek).

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

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

• GNE reported 2019-3Q EPS of $0.18 and adjusted EBITDA of $8.0 million, in line with our $0.17 and $8.6 million estimates. A solid quarter for the company supports claims that disappointing 2Q results were largely weather related.
  
• Investing for the future.  GNE’s expansion into the Texas market this summer and Japan in January should pay dividends in 2020 and beyond. Global meters rose to 492,000 from 448,000. International adjusted EBITDA was ($1.6) million versus…
  
  

  
  

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This Company Sponored 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 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 November 13, 2019

Endeavor Silver (EXK)

Will El Curso Play a Role in Guanacevi’s Turnaround?

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. It is also involved in exploration activities in Chile. The company is organized into three operating mining segments, Guanacevi, Bolanitos and El Cubo, which are located in Mexico as well as Exploration and Corporate segments. The 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 full report for price target, fundamental analysis and rating.

• Initial drilling results are encouraging.  Endeavour reported positive initial drilling results for the El Curso property adjacent to Endeavour’s Guanacevi mine in Durango, Mexico. By our calculation, weighting the grams per tonne by the interval lengths, the weighted average grades for silver, gold and silver equivalents are 671.8 grams per tonne, 1.63 grams per tonne and 802.4 grams per tonne, respectively. For a point of reference, the weighted average grade of Guanacevi’s reserves and resources, excluding silver-gold-lead-zinc mineral resources, are 312.5 grams per tonne of silver and 0.78 grams per tonne of gold.
  
• El Curso may play a role in getting Guanacevi to full production. Management plans to drill another 10 holes before year end 2019 and then complete an initial resource estimate. The new mineralization is expected to be included in the …
  

  
  

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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 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 November 06, 2019

Endeavor Silver (EXK)

Third Quarter In Line With Our Expectations; Lowering 2020 Estimates

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. It is also involved in exploration activities in Chile. The company is organized into three operating mining segments, Guanacevi, Bolanitos and El Cubo, which are located in Mexico as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.

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

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

• Third quarter results in line with estimates.  Endeavour reported a third quarter loss of $6.8 million, or ($0.05) per share, compared to a loss of $5.5 million, or ($0.04) per share during the prior year period. We had projected a loss of $6.8 million, or ($0.05) per share. Adjusted EBITDA were $1.8 million compared to $6.3 million generated during the prior year period.
  
• Lowering 2020 estimates. While we are making no changes to our 2019 estimates, we are lowering our 2020 EPS estimate to $0.08 per share from $0.12 due mainly to narrower margin assumptions. We now forecast…
  

  
  

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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 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 November 06, 2019

Coeur Mining (CDE)

Q3 Results Better Than Expected; Increasing Estimates

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 full report for price target, fundamental analysis and rating.

• Quarterly financial results better than expected.  The company reported a third quarter adjusted loss of ($0.02) per share, compared to an adjusted loss per share of ($0.11) during the prior year period and our estimate of ($0.07). Adjusted EBITDA amounted to $61.0 million versus $24.7 million during the third quarter of 2018. Free cash flow increased to $11.3 million versus a loss of $33.7 million during the prior year period. Variances to our estimate were predominantly in costs, most notably amortization.
  
• Increasing 2020 estimates. We are reducing our 2019 loss estimate to ($0.22) per share from ($0.32) per share and increasing our 2020 EPS estimate to $0.10 from $0.04. We project 2019 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
certification and important disclosures included in 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 November 1, 2019

Great Panther Mining Limited (GPL)

Q3 Falls Short on EPS but Exceeds on EBITDA

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 full report for price target, fundamental analysis and rating.

• GPL reports third quarter loss.  GPL reported a third quarter loss of ($6.1) million, or ($0.02) per share compared with our net income estimate of $1.8 million, or $0.01 per share.  The variance to our estimate was due, in part, to higher finance and other costs, including a foreign exchange loss of $6.8 million.  Adjusted EBITDA increased to $13.7 million versus a loss of $3.0 million during the prior year period and $3.1 million generated during the second quarter of 2019.  We had forecast adjusted EBITDA of $11.6 million.
• Adjusting estimates. We are lowering our 2019 EPS and EBITDA estimates to ($0.07) and $26.4 million from ($0.03) and $27.6 million, respectively.  Our full year 2020 EPS and EBITDA estimates have also been lowered to $0.06 and $64.6 million, from…
  
  

  
  

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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 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, October 23, 2019

Aurania Resources Ltd. (ARU:CA)

Full Speed Ahead

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

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

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

• Scout drilling at Yawi expected to begin this week.  The current plan is to drill three to four holes between 350 meters and 500 meters in length on each of the four targets at Yawi. Drilling is expected to take between seven and ten days at each target before moving the drill rig between targets which takes about one to three days. Assay results from the first target should be available later in the fourth quarter. Importantly, water permits have been secured for each of the drilling targets at Yawi.
  
• LiDAR survey to commence shortly.   VeriDaaS Corporation has received permits necessary to complete a LiDAR (Light Distance and Ranging) survey over the company’s…
  
  

  
  

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This Company Sponored 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 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. 

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Looking for Money Growing on Trees? Try Timber.

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

With growing interest in alternative and “sustainable” investments, forest products may warrant consideration. Commercial timberlands supply all major forest product end-use markets, including sawn wood, pulp and paper products, furniture, and flooring materials. While timberland ownership was consolidated among integrated forest products and paper companies such as Georgia-Pacific and International Paper up until the 1990s, when most began to divest their timberland holdings, ownership has transitioned to timberland investment management organizations that acquire and manage timberlands on behalf of institutional investors. With growing awareness of environmental considerations, many of these new investors have adopted sustainable practices, which include selective harvesting and replantation.

Thursday October 17, 2019

Avino Silver & Gold (ASM)

Avino Reports Third Quarter 2019 Production; Dropping Research Coverage

Avino Silver & Gold Mines Ltd. is engaged in the production and sale of silver, gold and copper bulk concentrate, and operates two mines in Mexico and has a gold project under development in British Columbia. Avino holds mineral claims and leases in Durango, Mexico, and in British Columbia and Yukon, Canada. The company’s shares trade on the NYSE American and Toronto Stock Exchanges under the symbol “ASM”. Avino Silver & Gold Mines Ltd. was founded in 1968 and is headquartered in Vancouver, Canada.

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

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

• Research coverage dropped. We are discontinuing coverage of Avino Silver & Gold Ltd. in order to reallocate our resources.
• ASM reported third quarter 2019 production results.  Avino Silver & Gold Mines Ltd. reported third quarter production of 570,220 silver equivalent ounces representing a 19.1% decline versus the prior year period. Compared to the prior year period…
  

  
  
  

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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 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.