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Buzz on the Bullboards: Big Movers in Mining, Industrials, & Cannabis

Stockhouse Editorial
39 Comments| February 4, 2021

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(Image via Ivanhoe Mines Ltd.)

Is cannabis on the verge of a breakout? Which industrial plays are advancing in the market? What is the next resource mining investors are tracking? Does a spike in a market’s collective share price signify an opportunity, does a dip signify a warning? Can we look to historical performance for answers?

Navigating the waters of a sea of global economic uncertainty and confusion, last week was full of tough questions for investors on the Stockhouse Bullboards. We saw some of the most popular companies among our communities stuffer setbacks, while other smallcaps gained attention as investors looked for new potential plays.

Major swings and emerging opportunities alike often interest Stockhouse’s Bullboard users, so tapping into this community can show us what’s captivating value-seeking investors. This week, we highlight three plays in three sectors that drew a lot of attention.

Starting with metals and mining, Ivanhoe Mines Ltd. (TSX: IVN, Forum) noted this week that underground development at its Kamoa-Kakula Copper Project in the Democratic Republic of Congo (DRC) had mined and stockpiled 300,000 tonnes of ore grading 5.45% copper in January 2021 from the Kakula and Kansoko mines. The tonnage was 11.5% higher than the previous month, while the copper grade was 1.6% higher.

The owners of North America’s only permitted cobalt refinery, First Cobalt Corp. (TSX-V: FCC, Forum) just began pre-construction activities, including advancing engineering and tendering associated with long lead order procurement. This includes Pilot plant test work is ongoing to assess further improvements to the refinery flowsheet. Cobalt solvent extraction is scheduled to commence at the beginning of February and is expected to be completed by February 20th, 2021.

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Cypress Development Corp. (TSX-V: CYP, Forum) made further strides in its scoping-level study of chloride-based leaching to recover lithium from claystone. The work is taking place at the CYP’s Clayton Valley Lithium Project in Nevada.

Shifting to industrials, Canadian transport manufacturer Bombardier Inc. (TSX: BBD , Forum) continues to make waves, after it closed the sale of its transportation business to French multinational, Alstom. BBD’s net proceeds of the sale are USD $3.6 billion, including approximately $600 million in Alstom shares. Its plans include using the proceeds to strengthen liquidity and would allow the company to begin paying down debt.

(Bombardier Inc. stock chart, August 2020 to February 2021. Click to enlarge.)

The COVID-19 pandemic has forced a transformation of airline industries around the world, very true for Canada’s biggest airline, Air Canada Inc. (TSX: AC, Forum), who has just temporarily suspended flights to Mexican and Caribbean destinations for 90 days in response to ongoing COVID-19 concerns. With Spring Break around the corner, this decision was designed to achieve an orderly reduction in service and minimize customer impact, in collaboration with the Government of Canada following consultations.

AC’s President and Chief Executive Officer, Calin Rovinescu stated that there is a shared belief between his company and the Government of Canada, involving all air carriers is the best means to respond to the COVID-19 pandemic, especially given concerns around the variants of COVID- 19 and travel during the Spring Break period.

“Through consultation we have established an approach that will allow us to achieve an orderly reduction in service to these destinations that minimizes the impact on our customers and will support important public health goals to manage COVID-19. System-wide the incremental impact on Air Canada's cash burn is not material given the already reduced levels of passenger traffic resulting from COVID-19 and travel restrictions.”

What the "Buzz"

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Gatekeeper Systems Inc. (TSX-V: GSI, Forum), a video and data solutions provider for public transportation and smart cities, just secured exclusive rights to sell and distribute COVID-19 saliva kit manufactured by WIZCHEM Co., Ltd.. in Canada, as well as in Saudi Arabia, along with non-exclusive rights for the United States of America, United Kingdom, and European Unions. DM will sell the COVICHEK Saliva DNA/RNA Collection Kit and COVICHEK Viral Transport Medium. This is beneficial, since saliva collection is easier to perform and less discomfort than taking a sample with a swab deep into the nasal cavity or throat.

The Canadian tech Company’s Chief Executive Officer, Marshall Gunter called this another incredible opportunity to secure an additional medical testing device supplier from South Korea with WIZCHEM.

“With the second wave of COVID-19 in the United States and throughout the world, we at Datametrex believes an increase in testing capacity is critical to test, track and protect populations.”

The COVID-19 pandemic certainly rocked the markets last year, but what about this year? Taking a look at our recent Investor Pulse Poll, it seems a solid number of you feel that the markets will close out 2021 higher than they began, despite the volatile rollercoaster we’ve seen over the first month of this year.

Now we want your thoughts on the cannabis sector. With cannabis products appearing on shelves more and more these days, the market is expected to grow up to $50 billion (USD) in just three years’ time, according to a report released earlier this week. Senate Democrats say cannabis reform will be high priority, do you think the market is going to see a breakout in 2021? Let us know your thoughts by clicking the poll below.

(Click image to vote.)

Speaking of cannabis movers, shares of Leamington ON-based Aphria Inc. (TSX: APHA, Forum) were up 87% in January and continues to gain ground on news that the LP has added topical products to its adult-use brand Solei.

APHA’s Chief Executive Officer Irwin Simon commented that adding topicals to its Solei brand product line up is a natural expansion, and offers an exciting format offering for Aphria.

“Topicals are one, if not the most, accessible cannabis format available today, making it appealing to a large segment of consumers. We are listening to the needs of our consumers. The team worked hard to create a cream with a range of premium scents, providing a compelling and relevant product for consumers.”

Toronto-based Aleafia Health Inc. (TSX-V: ALEF, Forum) appointed two new independent directors, Lu Galasso and Carlo Sistilli, to its Board. Galasso will be appointed to the strategic planning committee and Sistilli will be appointed to the audit committee.

Acting chair Lea Ray said - “Their collective professional experience will bring unique skills to the board that will serve Aleafia Health well in its continued growth.”

The federally licensed Canadian cannabis company followed this up with more news, that it had fully repaid its 8% unsecured convertible debt in cash, which matured this week.

(Aleafia Inc. stock chart, August 2020 to February 2021. Click to enlarge.)

Next week, Canopy GrowthCorp. (TSX: WEED, Forum) will release its financial results for its fiscal Q3 2021 (for the period ending December 31st, 2020) before the markets open on February 9th, 2021.

February has already given us a wild market ride and some small-cap stocks that the Stockhouse Bullboards have gotten excited about. Next week will likely bring us more of the same, and the weekly Buzz on the Bullboards review will be here to bring you some intriguing stock highlights. For previous editions of Buzz on the Bullboards: click here.

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FULL DISCLOSURE: Gatekeeper Systems Inc. is a client of Stockhouse Publishing.

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