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Month: June 2020

Vox Royalty Corp. (TSXV: VOX) – Another Royalty Added – This Time from an Auto Parts Maker

Vox Royalty announced that it has entered into an agreement to acquire a royalty on certain tenements within Black Cat Syndicate Ltd.’s (ASX:BC8, Not Covered) pre-feasibility stage Bulong Gold project in Australia for A$750,000. This announcement marks the fourth acquisition agreement out of the four that the company had previously indicated it was close to completing when it came public. We are encouraged by Vox’s pace and disciplined growth strategy. These acquisitions from non-traditional vendors highlight what makes Vox a unique new entrant in the royalty space.

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Canada Nickel Company Inc. (TSXV: CNC) – Much Higher Grades Intersected at Crawford Main Zone

Canada Nickel announced the first infill hole from the Main Zone at its 100%-owned Crawford Ni-Co-PGM sulphide project near Timmins, Ontario that demonstrates the considerable potential of the higher-grade core of the deposit. Given the size potential, excellent infrastructure, and an underpinning resource of 3.3B lb. contained Ni (MI & I), in our view, Canada Nickel is favorably positioned as a potential takeout candidate when the global Ni market heats up.

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Mako Mining Corp. (TSXV:MKO) – COVID May Impact First Production BUT Not Drill Results

Mako Mining released more positive drill results from two holes from the Las Conchitas area and announced that as a result of COVID-19 related delays, it expects its first gold pour to be in Q1 2021 (was Q4/20). The exploration results continue to highlight the scale and higher grade of Las Conchitas. We note that while the delay modestly impacts our NAVPS estimate and estimated future financing requirements for Mako, it does not change our view. We continue to believe that Mako’s stock is poised to re-rate with both ongoing exploration success and as first production approaches.

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Uranium Update – Cigar Lake Appears to Have Started Another Bull Market

Have we been “squeezed” into a new uranium bull market? A series of market related, and now COVID-19 shutdowns appear to have finally “squeezed” the spot market dry. With the spot price up 32% YTD and exceeding the long-term price, we believe the fundamentals are now in place for a new bull market in uranium. Fortunately, for investors it is still early days and uranium stock valuations remain attractive, even after the rally from March lows.

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Platinum Group Metals Ltd. (TSX: PTM) – Impala Steps Aside – Someone Else Should Step-In

Recently, Platinum Group Metals completed a small financing. More impactful, the company also announced that Impala Platinum Holdings Ltd, will not exercise its option to purchase and earn into a 50.01% interest in the Waterberg project. Previously, our thesis had been that Impala would exercise its option, build the mine as the operator, and likely acquire Platinum Group. The decision not to exercise by Impala, returns control of the project to Platinum Group increasing its PGM exposure and opens the door for other development partners/acquirers, but this new direction comes with more risk. We are resuming coverage with a BUY rating (was Restricted) and a target of C$7.25/sh (was Restricted) to account for a 25% probability of a Platinum Group lead development scenario and 75% probability that a new partner or acquirer emerges for Waterberg.

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Vista Gold Corp. (TSX: VGZ) – Accelerating Cash Flow from Non-Core Assets

Vista Gold announced that it has entered into an amendment to the option for Guadalupe de los Reyes, an open pit gold/silver project in Sinaloa, Mexico. The amendment accelerates the due date for the final option payment and monetizes Vista Gold’s royalty and back-in rights on the project. This is another example of Vista Gold’s management doing smart deals, using non-core assets to fund development work at Mt Todd in a non-dilutive way. Vista Gold is a leveraged gold developer which should outperform in a rising gold price environment as it advances a “new” Mt Todd towards production.

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