Jan 18, 2019 04:43 pm
By Shree Kargutkar Part 2 in our palladium series explores the unique supply/demand fundamentals that support our bullish outlook; Part 1 provided a primer.
Palladium has been a standout performer, more than doubling in price in three years 2016 to 2018. YTD the white-hot metal is up more than 10% as of January 16, 2019. Palladium’s rise is best understood by analyzing its unique supply-demand dynamics. Russia and South Africa account for nearly 80% of the world’s production, and a chronic supply deficit keeps pushing prices higher. Read on » Read in browser »
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.
The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
VANCOUVER, Jan. 21, 2019 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX: NXE, NYSE MKT: NXE) is pleased to announce that the largest drill program in the Company’s history focused on optimizing mine development has begun at our 100% owned, Rook I property, in the AthabascaBasin, Saskatchewan. The drill program results will be incorporated into a NI43-101 Bankable Feasibility Study (“FS” or the “Study”), building on the successful outcomes highlighted in the Company’s Pre-Feasibility Study (“PFS”) (see News Release dated November 5, 2018) which demonstrated the Arrow Project to be an exceptional development opportunity for NexGen, Saskatchewan and Canada.
The development optimization program consists of a minimum 125,000 m using 10 diamond drill rigs focusing on three objectives:
Convert High Grade Indicated Mineral Resources to Measured Mineral Resources: Approximately 71,000 m will be drilled at a spacing sufficient to support the conversion of the currently defined high-grade (“HG”) Indicated Resource (currently 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8)to Measured Resource. Measured Mineral Resources represent the highest level of mineral resource estimate, providing a significant amount of technical detail on the FS mine plan, design and economics.
Covert Inferred Mineral Resources to Indicated Mineral Resources: Approximately 54,000 m will be drilled to support the conversion of part of the currently defined Inferred Resource (currently 91.7 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8)to an Indicated Resource. Further conversion of Inferred to Indicated Mineral Resources will optimise the usable mineral inventory for the FS mine plan which can only incorporate Indicated or higher classification resources in compliance with the NI 43-101 guidelines. Given the strong continuity of mineralization seen at Arrow, the conversion of Inferred to Indicated resources since delineation drilling commenced has been very efficient and predictable.
Geotechnical and Hydrogeological Characterization: Approximately 12,500 m of the 125,000 m will also incorporate the geotechnical and hydrogeological characterization of the rock mass in the areas of potential mine development and Underground Tailings Management Facility (“UGTMF”). This additional analysis will build upon the significant geotechnical, hydrogeological and metallurgical testing that has been incorporated into the PFS.
The 125,000 m of drilling outlined above will be added to the existing 296,000 mof drill data collected to date by NexGen to form the basis of an FS which will incorporate an updated Mineral Resource Estimate and scheduled for release in H1/2020. The FS will increase design detail to a resolution necessary to support at a minimum a Class 3 cost estimate (AACE International standard). The objectives of the FS are as follows:
Further optimization of the proposed development of the Arrow Deposit with respect to mine design (stope layouts, development, and production schedule) based on only Measured and Indicated mineral resources,
Defining a level of design to support the comprehensive Environmental Assessment applications,
Engaging with construction experts to optimize construction sequencing, utilization of pre-fabrication, offsite module assembly, and identify alternative opportunities to advance project development timelines,
Continuing the advancement of the UGTMF design to optimize tailings density and further reduce tailings volumes enabling the opportunity to minimize the surface footprint of the mine,
Leveraging opportunities for capital cost optimization while increasing confidence in the capital and operating cost estimates,
Integrating innovative but proven mining, milling and environmental technologies and sustainable practices including the evaluation of alternative energy solutions to further increase NexGen’s sustainability commitment.
Drilling program target areas can be found in the figures 1 and 2.
Financial
The Company has cash on hand of approximately ~$110 million.
Leigh Curyer, President and Chief Executive Officer, commented: “This year’s drill program will be the largest in the Company’s history to date, and reportedly, in Canada for a uranium project in 2019. The team has focused considerable effort into the planning of the drill program and technical studies, which leverages our experience in optimizing mine development, processing and elite environmental management practices. With the opening this week of the new Saskatoon project office, which has been designed at a capacity to take NexGen through to reaching its objective of becoming a major producer of uranium on the world stage, it is very exciting times for the NexGen team and Saskatchewan.”
Troy Boisjoli, Vice-President, Operations and Project Development, commented: “The technical characteristics of the Arrow deposit has allowed for rapid growth and increased confidence through each successive drill program. This is an exciting time at NexGen, focussing on continued advancement of the Arrow deposit through the requisite development stages.”
About NexGen
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017. NexGen is the recipient of the PDAC’s 2018 Bill Dennis Award and the 2019 Environmental and Social Responsibility Award.
Technical Disclosure
Split core samples will be taken systematically, and intervals will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis. All samples sent to SRC will be analyzed using ICP-MS for trace elements on partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES. Mineralized samples are analyzed for U3O8 by ICP-OES and select samples for gold by fire assay. Assay results will be released when received and after stringent internal QA/QC protocols are passed.
All scientific and technical information in this news release has been prepared by or reviewed and approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen. Mr. Boisjoli is a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.
For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Technical Report on the Preliminary Economic Assessment of the Arrow Deposit, Rook 1 Property, Province of Saskatchewan, Canada” dated effective September 1, 2017 (the “Rook 1 Technical Report”) prepared by Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G., David A. Ross M.Sc., P.Geo., Val Coetzee, M.Eng., Pr.Eng., and Mark Wittrup, M.Sc., P.Eng.,P.Geo. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at www.sedar.com. A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days from the date of the PFS news release (November 5th, 2018) providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource.
U.S. investors are advised that while the terms “indicated resources” and “inferred resources” are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize these terms. U.S. investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into mineral reserves.
SEC Standards
Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United Statesfederal securities laws and the rules and regulations thereunder.
Forward-Looking Information
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 31, 2017 under “Risk Factors”.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
The New Year is off to a murky start. The broader market managed to ease off lows seen at the end of last year and recover key technical levels. Yet volatility continues to keep investors on their toes. Gone are the days when “minor” triple-digit moves for the Dow Jones Industrial Average elicit nary a raised eyebrow.
2018 came to an end with a sigh of relief. After a tumultuous December the U.S. stock indexes posted their worst performance since the financial crisis. For the year, the Dow closed down 5.6% while the S&P 500 index declined 6.2%. The Nasdaq Composite shed 3.9% in 2018 and bid adieu to the worst year in a decade.
Revelers rang in the New Year with a pause in global trading. The holiday season brought its ups and downs with the S&P 500 off by a double-digit percentage point on Christmas Eve from its record highs. With the index touching bear market territory, perhaps setting the precedent for an investor’s version of the Ghost of Christmas Past. Nonetheless, the market rally on the day after Christmas on Dec. 26 boosted the Dow to hit its biggest gain on record.
There are plenty of unanswered questions on the fundamental front. Uncertainty has set the tone and put a damper on overall investor sentiment. The headwinds of yesteryear remain steadfast in 2019. The potential fallout from the longest U.S. government shutdown in history coupled with the ongoing U.S.-China trade negotiations as well as Brexit woes are doing little to boost confidence in this year’s outlook. 2019 WORD OF THE YEAR: PARTIAL
We can’t have partial growth or expansion; we can’t have a partial recession. The partial U.S. government shutdown is having a complete and negative impact on the economy.
As the shutdown enters Day 28, the U.S. market averages have bounced back from the Christmas lows with the major indexes out of correction territory. The partial government shutdown has halted a myriad of government operations. The Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB), considered non-essential, has ceased the review of keg collars for beer. This means breweries can’t ship product outside state lines without regulatory approval. Bad news for small craft brewers with perishable IPA and seasonal releases.
The IPO traffic jam is also notable as the result of the shutdown. Companies planning to go public could face delays in launching. The SEC shutdown plan includes only essential staff who are keeping an eye on the markets and responding to emergency situations. The government furlough could stall the pipeline for IPOs in 2019.
With federal agencies such as the FDA working only on “imminent threats” and federal workers missing paychecks, the headlines about national security and disruptions to government programs are sure to evoke distress. BANKING ON INCENTIVES
As earnings season got underway, the major banks reported results that showed mixed results. Results marked by a mostly positive season for banks were hampered by underperformance by one of the big banks at the end of the week. Of course, one of the investment banks missing profit forecasts reflected the volatility in trading and dour capital-raising environment during the last month of 2018.
The drum beat of recession may be getting louder and it’s not just Main Street expressing concern over mounting risks.
According to the latest survey by the Conference Board, recession is a major concern for CEOs around the world. The business research group conducted the survey of over 800 chief executives and found that out of the 28 issues, recession risk ranked as the main concern. The fact that the survey was conducted in the autumn of 2018, before the turbulent pullback in equity prices points to risks to the world economies.
Trading incentives may be limited for the time being amid a backlog of economic data and lack of breakthroughs in the global political arena. At the same time, U.K. Prime Minister Theresa May survived a vote of no-confidence following her Brexit deal defeat in Parliament. As earnings season continues in earnest, keep an eye on any surprises that could shed light on industry or sector shifts. BAND-AID ON A BULLET WOUND
It’s not business as usual in the nation’s capital. With no end in sight for the partial government shutdown, key economic data including Q4 2018 GDP may not be released on schedule. Of course, the estimates for how the shutdown is already affecting the economy in Q1 2019 are nothing short of worrisome.
Market corrections can present opportunities, but prolonged uncertainty does little for economic growth. The domino effect of uncertainty on business investment amid murmurs of an end to the Federal Reserve’s tightening cycle will weigh on sentiment.
Should progress be swift on tariffs and a resolution reached on the partial shutdown, opportunity for growth remains a possibility. The risks to growth in the two largest economies can be characterized as self-inflicted ones. With government efforts to stimulate growth being dismantled by risks to stability, the recovery trajectory is fragile. Read in browser »
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.
The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.
Those memorable words penned by Charles Dickens in 1859 begin the story of the times leading up to the French Revolution and ending in the Jacobin Reign of Terror. The Tale of Two Cities may be back for an encore. So might the Reign of Terror.
The earth’s very first worldwide revolution began in Paris on November 17th 2018. The immediate cause was an increase in taxes on diesel and gasoline. The French government levied higher taxes on diesel of 7.6 cents per liter in 2018 with a planned increase of an additional 6.5 cents effective on January 1st 2019. Gasoline taxes rose by 3.9 cents in 2018 and were due to go up 2.9 cents more with the turn of the New Year.
Globalization has caused a mass migration all over the world from rural areas and small towns to the large cities. As the migration took place, the balance of political power shifted and the rural areas had less and less of an impact on the decision making process.
French law requires all vehicles be equipped with neon yellow vests for safety if the automobile is disabled or the driver needs to change a tire. Yellow vests or Gilets Jaunes are in every car in case of emergency. Any emergency will do, even a protest.
The protests began simply with a demand that the increases in fuel taxes be rescinded. From Paris other groups of the Gilets Jaunes sprang up spontaneously all over France in village squares and in the ubitiquous traffic circles controlling the flow of traffic rather than red lights found in most countries. People in the streets protesting actions of the government are the ultimate form of direct democracy.
There were no leaders. As times some labor unions and politicians have attempted to coopt the movement without success. The Yellow Vests reject centralized power no matter where it comes from. All of the protests came directly from local residents angry at their lack of voice.
By and large it was peaceful from the beginning with pretty much the exception of the actions of the police. Most people in most cities simply walked around talking to other Yellow Vests. As time went by the list of demands grew to include the resignation of French President Emmanuel Macron as well as other changes in forms of taxation and benefit modifications.
Naturally the elite in government smiled as the requests for change grew out of control. They knew that as the demands expanded the chance of them being enacted declined. Under pressure Macron agreed to postpone or cancel the fuel tax increase and went along with some minor modifications to minimum wage and retirement benefits. But he soon tired of the sops to the masses and began to harden his position.
The Yellow Vest movement is simple. The people want more say in how the government affects their lives. Over the past week the stakes may have risen as the French Prime Minister Edouard Philippe announced support for a new law banning unapproved protests. The idea was not complicated. It’s ok to riot but you need to fill out forms in triplicate and get government approval first. I have a suggestion for the Gilets Jaunes, “Don’t hold your breath.”
The Yellow Vest masses seemed to have touched a nerve with angry people all over the world. There have been similar protests in Taiwan, Israel,Brussels, Canada, Spain and no doubt many other locations. It is a worldwide revolution and it will only grow. As long as there have been groups gathered together for protection the elite have ruled. It didn’t matter if it was the head of a clan, a Pope, a king or eventually presidents and prime ministers. The elite ruled and the peasants could stuff themselves with cake if they didn’t like the lack of bread. But the elites have always been out of touch with what the people, the mob, the masses want.
When the peasants went hungry for long enough because of mismanagement of government, they manned the barricades and sharpened their pikes. In the end after every revolution all they managed to accomplish was change one group of elites with a different group of clueless elites. Look at the elections in the US and the UK. One party rules, then the other party rules, then it goes back again. Nothing ever changes.
Who do the Yellow Vests think will take over if they boot Macron? I can tell you right now it will be another brain dead idiot determined to line his own pockets until he gets the boot.
This process of rule by elites has led to the bizarre situation in the US where a tiny group of determined Neocons managed to subvert the entire political and military establishment of the country on behalf of a meaningless little shit for brains country in the Middle East. No more than thirty total they still took total control of the establishment involving the nation in one meaningless and expensive war after another. It has gotten so stupid and out of control that the very first law considered by the US Congress and US Senate in 2019 was a bill to make boycotts of Israel illegal.
You may still boycott the Mormons and Buddhists. It’s legal and OK to boycott the Pope or Donald Trump should you wish. And advocating boycotts of Hillary will still be allowed. You can boycott whoever and whatever you wish. Except for Israel. Twenty-six states have already incorporated rules requiring loyalty oaths to Israel. In Europe you may not question the Holocaust. If you even debate what happened, you may go to jail.
Now that’s power.
In an ominous move on the part of the French government just took action that might morph a peaceful protest against petty taxes into a violent reign of terror and a resurrection of the guillotine. And a lot of heads of the former elite swinging from long pikes. As reported on the 13th of January, some units of the riot police have been issued fully automatic G36 rifles. If and when some fool policeman starts shooting at the protestors, a bloody war will have started. Eventually more and more of the police will realize they are shooting their own citizens. At that point they will start shooting politicians.
There is a simple and bloodless solution that the elite will hate and the
Gilets Jaunes of all countries will love. But to understand it, you must also understand why these protests have expanded so quickly.
Until the Internet came along twenty years or so ago, the elite ruled because they controlled the narrative. Americans believed that Kennedy was killed by a lone assassin, Vietnam was fought to save the Vietnamese from godless Communism, nineteen hijackers led by a guy with terminal kidney disease living in a cave in Afghanistan managed to win the most effective battle in history.
Then the Internet gave everyone a voice. Every damned fool given a new keyboard for Christmas by momma could go out on chatboards and say whatever idiotic things they wanted and remain anonymous so they didn’t have to account for their stupidity to anyone. If they wished, they could and did watch porn from the confines of their government office if that is what they did for a living. Communication was instant and total.
A few people posting on the Internet actually made sense. The Internet is not a Mecca of accurate information. But some of the voices made sense and if you ignored the clutter and listened to the bells that peeled with the ring of truth eventually a false flag operation that would have passed with flying colors fifty years ago would be exposed in minutes today.
More and more of the middle class realized the actions of governments and central banks were destroying their financial security. There was nothing new to that; governments have always waged war first on their own people. Throughout history people have resented their standard of living being destroyed by the elite.
But they couldn’t do a damned thing about it. They might be angry but they had no voice.
Eventually they could take a marvelous weapon right at hand such as the Yellow Vests and make them a symbol of protest. But they still didn’t have a solution that was both reasonable and possible until a genius named Etienne Chouard came up with a magic bullet.
Monsieur Chouard teaches college in Marseilles France on the southern coast. For years he has advocated adoption of something he calls theCitizens Initiative Referendum or CIR. The CIR only asks that citizens be allowed to choose the rules and regulations by which they are governed and the best way to achieve such direct democracy is by way of the referendum.
The concept is brilliant. A certain number of signatories on a petition would allow for a referendum to be published and voted on.
The Swiss did it in 2016 with the idea of a guaranteed basic income for all. It was suggested that all Swiss citizens be granted an automatic 2,500 SF monthly. Naturally the Swiss being the Swiss, they also understood that someone had to pay for that largess and it would be by themselves. Governments don’t have any money; all they do is take it from one group and hand it to another. 77% of Swiss voting soundly rejected the idea.
A worldwide revolution has been started. It’s pretty much led by the middle class who feel government policies are destroying them financially. If and when the police start shooting at protestors, protestors will start shooting back. It has all the potential for being the greatest war in history. The governments will eventually lose as the police and military change sides.
A well thought out CIR would solve the issue. It is both practical and workable. The elites will hate it because they will lose their franchise on power and money. The people will love it because it makes them responsible for their own decisions. They should be allowed direct democracy because they are the ones paying for it.
In the end the world will owe a giant debt for the ideas of Etienne Chouard. It may not be a perfect solution but it is a solution. The alternatives are far worse. ### Bob Moriarty President: 321gold Archives 321gold Ltd
Joel Dumaresq has been the CEO of Molori Energy Inc. (CVE:MOL) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Joel Dumaresq’s Compensation Compare With Similar Sized Companies?
Our data indicates that Molori Energy Inc. is worth CA$2.3m, and total annual CEO compensation is CA$292k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$240k. We looked at a group of companies with market capitalizations under CA$268m, and the median CEO compensation was CA$158k.
As you can see, Joel Dumaresq is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Molori Energy Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Molori Energy, below.
TSXV:MOL CEO Compensation January 18th 19
Is Molori Energy Inc. Growing?
Molori Energy Inc. has increased its earnings per share (EPS) by an average of 80% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -33%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Molori Energy Inc. Been A Good Investment?
Most shareholders would probably be pleased with Molori Energy Inc. for providing a total return of 67% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount Molori Energy Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Molori Energy shares (free trial).
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements. The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Join us at the 2019
Vancouver Resources Investment Conference
Dear shareholders and subscribers,
This weekend, on January 20th to 21st, the team from Millrock, along with dozens of the world’s top investment experts, will be gathering in Vancouver to talk markets, insights, and opportunities in this current resource environment. We invite you to stop by the Millrock booth – Booth 1213.
If you are attending, we look forward to providing you with an update of everything Millrock has accomplished in the last year, as well as a detailed look into what’s ahead. If you’d like to attend, use the promo code “VRIC19GUEST” to receive complimentary tickets, courtesy of Millrock. You can register here.
The exhibit hall will be open on Sunday and Monday between 10AM and 5PM, with the first keynote beginning at 8:30AM in the Speaker Hall. As well, Millrock will be part of Round Up 2019’s Project Generator Hub on Monday, January 28, from 9AM to 4PM. The Project Generators Hub will feature seven companies during each day of Roundup that specialize in generating exploration ideas and turning these ideas into active projects and we would love to see you if you are attending.
If you are unable to attend either but would still like a company update, simply reply to this message, email me at mhenderson@millrockresources.com, or contact me toll-free at 1-877-217-8978.
We look forward to seeing you!
Best regards,
Melanee Henderson, Investor Relations
Millrock Resources Inc.
MRO.V MLRKF.OTCQX
TF: 877-217-8978
Tel: 604-638-3164
mhenderson@millrockresources.com
Vancouver, British Columbia–(Newsfile Corp. – January 17, 2019) – Group Eleven Resources Corp. (TSXV: ZNG) (OTCQB: GRLVF) would like to cordially invite you to visit us at Booth #913 at the Vancouver Resource Investment Conference (VRIC) to be held at the Vancouver Convention Centre West (1055 Canada Place, Vancouver) on Sunday January 20 – Monday January 21, 2019.
The Vancouver Resource Investment Conference has been the bellwether of the junior mining market for the last twenty-five years. It is the number one source of information for investment trends and ideas, covering all aspects of the natural resource industry.
Each year, the VRIC hosts over 60 keynote speakers, 350 exhibiting companies and 9000 investors.
Investment thought leaders and wealth influencers provide our audiences with valuable insights. C-suite company executives covering every corner of the mineral exploration sector as well as metals, oil & gas, renewable energy, media and financial services companies are available to speak one on one. This is a must-attend for investors and stakeholders in the global mining industry.
Vancouver, British Columbia–(Newsfile Corp. – January 17, 2019) – Miramont Resources Corp. (CSE: MONT) (OTCQB: MRRMF) (FSE: 6MR) (“Miramont” or the “Company”) is pleased to announce that it intends to complete a non-brokered private placement of up to 2,857,143 units (“Units“) at a price of $0.35 per Unit for aggregate gross proceeds of up to approximately $1,000,000 (the “Private Placement“). The Company intends to use the proceeds from the Private Placement for its planned drilling activities at Cerro Hermoso, advancing the Lukkacha project and general working capital purposes. Closing of the Private Placement is expected to occur on or before January 31, 2019 (the “Closing Date“).
Each Unit will consist of one (1) common share (each, a “Common Share“) in the capital of the Company and one (1) transferrable common share purchase warrant (each, a “Warrant“). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.50 per Common Share until the date which is two (2) years from the Closing Date. The Company may pay certain finders a fee for introducing eligible participants to the Private Placement.
All securities issued under the Private Placement, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the Closing Date.
The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange.
About Miramont Resources Corp.
Miramont is a Canadian based exploration company with a focus on acquiring and developing mineral prospects within world-class belts of South America. Miramont’s key assets are located in southern Peru. The Cerro Hermoso property hosts a 1.4km diameter breccia pipe targeting gold – polymetallic mineralization, while the Lukkacha property is targeting porphyry copper mineralization.
On behalf of the Board of Directors,
MIRAMONT RESOURCES CORP.
This news release may include forward-looking information that is subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking, including statements with respect to the use of proceeds from the Private Placement. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information is not a guarantee of future performance and actual results or developments may differ materially from those contained in forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include, but are not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
VANCOUVER, British Columbia, Jan. 17, 2019 (GLOBE NEWSWIRE) — Allegiant Gold Ltd. (“ALLEGIANT”) (AUAU:TSX-V) (AUXXF:OTCQX) reports on the progress of its high-impact discovery drilling campaign. A total of 6 projects located principally in the world-class gold mining jurisdiction of Nevada are slated for drilling over a 10-12 month period, to approximately June 2019. Drilling commenced at the Red Hills project in August 2018 and drilling at a third project, North Brown, was completed in December and final assays are expected within one week. Assay results for Hughes Canyon (the second property drilled) have now been received in full.
ALLEGIANT completed 2,139 meters of drilling in 12 rotary holes at Hughes Canyon. Hydrothermal alteration was encountered in 10 of the 12 holes in several different stratigraphic units in a faulted and folded Mesozoic sedimentary package. Gold and silver values above 0.10 g/t gold encountered in the drilling are available at the following link:
Overall the drilling results at Hughes Canyon are encouraging and suggest more drilling is necessary, however in the context of prioritizing expenditures on ALLEGIANT’S large portfolio of prospective exploration properties, Hughes Canyon will be abandoned.
ALLEGIANT expects to resume the “discovery drilling campaign” at the 4thproject, Monitor Hills, in about one week.
Qualified Person
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is a Qualified Person as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Wallace has reviewed and approved the technical content of this press release.
ABOUT ALLEGIANT
ALLEGIANT owns 100% of 14 highly-prospective drill-ready gold projects in the United States, 11 of which are located in the mining-friendly jurisdiction of Nevada. ALLEGIANT’s flagship Eastside project hosts a large and expanding gold resource, is district scale, and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements in this and other press releases include but are not limited to statements and information regarding ALLEGIANT’s drilling and exploration plans and results for its properties, including anticipated timing thereof; and the Eastside project’s resource expansion. Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled “Risk Factors” in ALLEGIANT’s Listing Application, dated January 24, 2018, as filed with the TSX Venture Exchange and available on SEDAR under ALLEGIANT’s profile at www.sedar.com. Actual results and future events could differ materially from those anticipated in such statements. ALLEGIANT undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Is there an untapped market opportunity around premium mineral exploration ground in the USA covered by patented claims? I understand the fact that good land can be staked or optioned for cheap, but I wonder if some premium land is worth the premium?
For example, Northern Vertex (TSXV:NEE) launched Phase 1 operations at the Moss Mine on a package of patented claims in Arizona approximately 100 hectares in size. They are planning to produce for approximately 5 years at approximately +35Koz Au per year on that ground, with an open pit and heap leach all fit snugly onto that 100 hectare footprint.
What is that package of patented group where NEE launched Phase 1 worth?
I suggest that patented claims in mining-friendly states like Arizona are a particular class of mineral exploration assets that deserve a premium. The devil’s in the details for exploration properties, but the Silver Nickel Mining Company have assembled such a portfolio and it’s worth a close look.
The Silver Nickel Company is not a prospect generator for the Howe Street public markets, but they have assembled a portfolio of patented claims in Arizona, USA. This is a great place for mining, as with the example of the Moss Mine.
What’s more, Silver Nickel has some interesting ideas about acquiring land that could be resold residential development. That raises some questions about the ability to build a mine there in the future, but it’s an interesting idea that makes me think bold real estate investment companies could take an interest here. However, I am thinking primarily about people who understand and invest in mine exploration and development when I talk to the Silver Nickel guys, as in our interview here, https://ceo.ca/@newton/newtoninterviews-silver-nickel-co-patented-claim-holders-in-arizona
I’ve introduced Silver Nickel to several public companies and the answer is consistently the same: the claims are too small and expensive. I understand the person who said, “The million $ price tag for exploration ground is probably something we would not take on.” but I wonder why? Surely there’s exploration ground in Arizona that’s worth millions of dollars? Maybe people are scared off by the large amount of data-verification that would be required to get these projects ready for prime-time? Maybe I haven’t found the right buyer yet.
There must be investors out there who can imagine the potential of what Silver Nickel Company has and are willing to bring expertise necessary to determine if that potential is something worth exploring? It’s a long and winding road, but some people are keen to strike out on it.
If you dig even deeper into the Silver Nickel story, then you will find that they have developed a sleuthing process to pick good patented claims off the garbage pile. They know how to navigate tax offices and the foreclosure process in a way that takes years of time and effort, but allows them to secure ownership of things like the Moss Mine for very little cost. The intellectual property in that and their geological understanding of Arizona alone could be very valuable to the right group who seeks to understand and help the John Rothermel and Neal Hawkins.
Watch our interview above for more.
John and Neal said in the interview that they’ve run the Silver Nickel Company as if it was their own money, because it was. I think they’ve built something special here and see great potential to use what they’ve done to seed public companies with great exploration projects. Easier said than done!
Please contact me on CEO.CA if you would like to discuss all this further and watch for some field footage from an intrepid young geologist I met who may make the trek to run around a few of the prospects with John in Arizona this summer.
Proven Probable
