Hello Traders!
Earlier this month we sent an email emphasizing an important philosophy that has been followed by some of the most successful minds in the markets:
“Do not see what you want to see. Remove emotion. See what is true, see what is there, see what the numbers tell you.”
Today we are bringing you another TSX.V company that has the potential to be a “quick mover” based on what the numbers could be saying at the moment - no emotion, no wishful thinking, just historical performance.
Much of the market rebounded from March lows to set recent highs, yet today’s profiled company is still sitting at its annual low, despite:
- Reported Total Assets of over $5.4 Million
- Market Cap of just $1.2 Million (calculated at Thursday’s close)
Add International Frontier Resources (TSX.V: IFR) to Your Watchlist Right Away
Currently at just 0.005, TSX.V: IFR is a small company, and small companies can be highly-volatile.
And keep this in mind while reading this profile, according to their most recent Interim Financial Statement for the period ended June 30, 2020 they reported total assets of $5,427,495
With the day already under way we’ll jump right to it, we are focusing on a company that has projects in Canada, the United States and Mexico.
At the time of this writing the company is right at its 52-week low of 0.005 with light activity but what the historical numbers show is that when this company has dipped to this level it has quickly bounced back.
In fact, less than a month ago this company was at 0.02- a return to that level could represent a 300% spike from yesterday’s (Thursday’s) close.
Now we’ve pointed to the current 52-week low of 0.005, where the company is currently at, and we’ve mentioned the light activity - this could explain why their recent Operations Update, which we will get into in just a bit, went seemingly unnoticed despite favorable news.
Before we touch on that Update let’s go ahead and introduce you to today’s featured company, International Frontier Resources Corp. (TSX.V: IFR).
Today’s New Fall Profile is on:
International Frontier Resources Corp. (TSX.V: IFR)
Quote:
https://money.tmx.com/en/quote/IFR
Website:
https://www.internationalfrontier.com/s/Home.asp
In their own words: “International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint venture Tonalli Energia, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories and Montana.”
We mentioned IFR’s Operations Update above and it’s important- dealing specifically with their advancements of petroleum and natural gas assets located in Tecolutla within the Mexican state of Veracruz along the Gulf coast.
As stated in the Operation Update:
“At Tecolutla, production was shut-in temporarily at the end of March 2020 in response to declining oil prices resulting from the COVID-19 pandemic.
As oil prices recovered, production was brought back on stream in July 2020.
As a result of continued cost reduction initiatives undertaken during the shut-in period Tonalli has lowered it operating cost structure and is able to achieve a positive operating cashflow at lower oil prices than prior to the shut-in.
We estimate that at targeted production levels of 75 bbls/day, operating costs of approximately USD $10.67/bbl and a WTI price of USD $42.00/bbl, Tonalli is able to achieve an operating netback of approximately USD $9.22/bbl. The majority of current operating costs are fixed so if Tonalli is able to bring on additional production volumes then the per barrel operating costs are expected to be lower.
Several new drilling targets have been identified at Tecolutla. The Company is currently in the process of technical evaluations and procurement planning for a downhole location for a directional Tec-12 well to be drilled from the existing Tec-10 pad.”
Tonalli being IFR’s strategic joint venture.
We’ve covered the numbers and shown that IFR has quickly bounced from this 0.005 level before- once on September 9, 2020 to 0.015 on September 10, 2020 and then three times this month it has bounced from 0.005 to 0.01, most recently on Wednesday.
On Thursday we saw IFR close once more at 0.005
While we are focusing on IFR’s numbers it’s also wise to consider the potential growth of the company when you consider the favorable opportunities that exist within Mexico:
Mexico is the ninth largest producer of oil in the world and the eleventh largest in terms of net exports. Mexico's main upstream attraction is a potentially vast resource base. Pemex estimates that yet to be discovered oil & gas reserves could total as much as 115 billion barrels of oil equivalent, roughly three times as much as current proven, probable and possible reserves (3P). According to some preliminary estimates, investment needs will range between US$35 billion and US$100 billion over the next decade.
As noted on IFR’s website:
“International Frontier Resources ("IFR") was early to identify the oil and gas opportunities offered by Mexico's historic energy reform. IFR, through its joint venture (JV) Tonalli Energia ("Tonalli"), has now achieved its initial goals, in partnership with Mexican petrochemical leader Grupo IDESA S.A. de CV ("IDESA").
Through its JV with Grupo IDESA, IFR became one of the first foreign companies to participate in Mexico's energy reform in the first bid round of the onshore blocks ("Round 1.3"). Moreover, it was one of the first foreign companies to be awarded an onshore oil and gas development block through a license contract.”
To be clear, we are focusing on IFR because of the chart and historical moves - moves that have seen runs up to 150% in a single day.
Today we are seeing multiple green indicators for IFR, in fact check out what StockTA is displaying for IFR right now:
Yesterday we were seeing multiple green indicators, check out what StockTA was displaying for IFR on Thursday (below indicator screenshot was taken on Thursday, October 15 2020 and may have changed):