Buzz on the Bullboards: Top Names in Mining, Cannabis, & Industrial Stocks

Stockhouse Editorial

5 Comments| June 10, 2021

Having received UL 2723 ECOLOGO Certification for Mineral Exploration Companies last week, Critical Elements Lithium Corporation (TSX-V: CRE, Forum) announced this week that it had retained the services of Metso Outotec and WSP in Canada (WSP) to prepare a Phase II engineering study for a chemical plant to produce high quality lithium hydroxide monohydrate for the electric vehicle and energy storage system battery industries. An earlier pilot plant conversion process demonstrated strong results with extraction rates of 93%. This extraction rate surpasses the worldwide average of between 70 to 75% in what is accepted as an industry standard.

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Canadian mining company Ivanhoe Mines Ltd. (TSX: IVN, Forum) published its fourth annual sustainability report, highlighting the company’s ESG initiatives in 2020.

IVN recently passed the first milestone on its journey to produce the world's "greenest copper," achieving first concentrate production at the Kamoa-Kakula Project in the Democratic Republic of Congo in May 2021.

In her introduction to the report, president, and CFO Marna Cloete commended the Ivanhoe family for maintaining unity and strength during a challenging year.

“Despite the strain, grief and challenges presented during the reporting year,” she remarked, “our teams have rallied together, providing their unwavering commitment and support and thereby enabling Ivanhoe […] to foster innovative partnerships and solutions to some of our problems which will have lasting, positive effects for our operations and host communities.”

"Long before the Environmental, Social, and Corporate Governance (ESG) movement went mainstream, Ivanhoe committed to being a modern leader in sustainability, environmental stewardship, community partnerships and responsible mineral production," said executive co-chairman Robert Friedland.

It was a busy week for Sokoman Minerals Corp. (TSX-V: SIC, Forum). First, the Newfoundland mining company entered into an option agreement with Trans Canada Gold Corp. (TSX-V: TTG), where Trans Canada can earn a 100% interest in the 121 claim (3,025 ha or 7,475 acres) Crippleback Lake Gold property, by issuing a total of 1,250,000 shares of the company to Sokoman as well as cash and work commitments totaling $600,000 over a 4-year period.

The Property is near the Trans-Canada Highway in north-central Newfoundland, is easily accessible by a network of secondary logging roads and is only a short drive away from assaying and diamond drilling services in Springdale.

Sokoman followed this news up by announcing that it had closed its private placement and issued 3,770,592 units of the Company to Eric Sprott for gross proceeds of $980,354. The proceeds of the Financing allow Sokoman to increase the current Phase 6 drill program at the flagship Moosehead Gold Project from 20,000 m to 50,000 m total with four drill rigs.

PyroGenesis Canada Inc. (TSX-V.PYR, Forum) has received a Letter of Intent (LOI) from an existing client, to purchase three 10-ton DROSRITE systems.

The contract, if finalized, is expected to be in the range of $10-15 Million.

As a result of the client’s decision to expand its aluminum processing facilities, three 10-ton DROSRITE systems are projected to be needed, but this may change to a combination of 5-ton and 10-ton DROSRITE systems.

“This is indeed a very interesting development, and one which we did not expect,” said P. Peter Pascali, CEO and Chair of PyroGenesis.

“Today’s announcement is confirmation of the rapid adoption of our environmental technologies within the aluminum industry. Our Drosrite offering enables smelters to operate in a more economical and environmentally friendly fashion.”

“Aside from the three systems disclosed today, PyroGenesis now has eleven commercial Drosrite systems either in full operation, delivered or in the process of being delivered,” added Mr. Pascali.

“Once all eleven systems are in operation, the company expects to benefit from a recurring revenue stream, from spare sparts alone, in excess of $4 Million per year.”

PyroGenesis’ DROSRITE system is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. PyroGenesis’ process avoids costly loss of metal while reducing a smelter’s carbon footprint and energy consumption.

Xebec Adsorption Inc. (TSX-V: XBC, Forum), a company that designs, engineers, and manufactures products used for purification, separation, dehydration, and filtration equipment for gases and compressed air, has signed a 10-year hydrogen recycling Gas-as-a-Service contract through its wholly-owned subsidiary HyGear.

The pay-per-use contract with one of the world's largest glass manufacturers is valued at approximately $1.6 million in total revenues over the 10-year agreement. The agreement was signed after successfully validating the quality of gas over several tests at two flat-glass manufacturing facilities in Germany.

“It was a great opportunity to partner with an established glass manufacturer to develop this system and demonstrate that our hydrogen recycling technology can contribute to the circular economy. This long-term contract demonstrates their confidence in our ability to create value in monetary terms and reduce the environmental impact, which is key to environmentally responsible companies,” said Marinus van Driel, President of Xebec Europe.

On February 2, 2021, HyGear signed a similar agreement valued at approximately $1.2 million in total revenues with Obeikan Glass Company, the largest float, coated, and laminated glass manufacturer in the Middle East. Delivery of this unit is expected to occur later this year.

HyGear expects to accelerate the uptake of its generation and recovery products within the glass industry. The company has identified over 400 glass manufacturing facilities worldwide that could benefit from on-site or local hydrogen generation and now, hydrogen recycling systems to further reduce costs and emissions.

Hydrogen and nitrogen gas mixtures are used in float glass production to create a protective atmosphere to prevent oxidation. These gases are injected into a tin bath where liquid glass is floated on molten tin. The most common practice of these production facilities is to vent the used mixed gases into the atmosphere.

HyGear’s gas recovery system was developed to recover used gases, clean them to a production-grade standard and feed them back into the manufacturing process. This approach reduces costs and improves the product quality due to the increased atmosphere refreshment rate.

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Aviation heavyweight Bombardier Inc. (TSX: BBD, Forum) confirmed this week that it signed an agreement between its Learjet Inc. subsidiary and the US Air Force for as many as six Global 6000 aircraft.

The Indefinite Delivery Indefinite Quantity (IDIQ) contract in support of the Battlefield Airborne Communications Node (BACN) program includes an immediate firm order for one Global 6000 aircraft, with as many as five additional aircraft.
The contract, which includes engineering and modification work, represents a potential total value of close to US$465 million.
Bombardier has already delivered four aircraft to the US Air Force since 2007 for the BACN program, an airborne relay that extends communication ranges, bridges between radio frequencies and “translates” among incompatible communications systems.

BACN aircraft are known in the US Air Force as the E-11A.

“Bombardier is proud to be chosen once again by the US Air Force to provide our high-performing Global aircraft and our unique expertise in support of the BACN program,” said Michel Ouellette, Executive Vice President, Specialized Aircraft, Programs and Engineering, Bombardier.

“Our US-based employees are honored to be lending their skills in support of this elite project.”

Bombardier teams in the US, who continue to provide in-service support and upgrades to the current BACN fleet, are poised to begin work on the next BACN aircraft in the coming days. Engineers and technicians at Bombardier Specialized Aircraft’s Center of Excellence in Wichita, Kansas, will modify the Global platform to support the communications equipment required for the mission, while teams in Tucson will provide the aircraft’s interior and eventually perform the exterior painting work.

Senator Jerry Moran (R-Kansas) had the following statement- “I am pleased to see that the Air Force is following through on its purchase of another E-11A aircraft to support battlefield communications for forward-deployed forces. These planes are engineered and outfitted for the Air Force right here in Wichita, and this purchase is the latest example of Kansans supporting our national security operations back at home.”

“Supporting the US Air Force's BACN program while increasing work for Kansas aviation manufacturers is a win for the Air Capital of the World and for our country,” said US Representative Ron Estes (R-Kansas). “These Bombardier Global 6000 aircraft modified and tested in Wichita give our airmen a competitive advantage in flight and communication."

“I’m proud to support the Air Force’s acquisition of additional E-11A BACN aircraft from Bombardier,” said US Representative Ann Kirkpatrick (D-Arizona).

“The BACN aircraft fleet connects our warfighters and allies during critical missions and supports highly skilled jobs right here in Tucson at Bombardier’s service center. I look forward to continuing to support the Air Force’s BACN program as a member of the Appropriations Committee.”

Bombardier Specialized Aircraft delivers a range of capabilities to operators around the world for a wide variety of missions including surveillance and reconnaissance, medical evacuations and VIP transport. Solutions range from turnkey packages comprising the complete design, building, testing and certification activity, to specialist engineering support and technical oversight of customer-specific projects.

After winning a dismissal of the securities class action pending in the Commercial Division of the Supreme Court of the State of New York, HEXO Corp. (TSX: HEXO, Forum) announced its commitment to offsetting the company’s operational carbon emissions and the personal emissions of all 1,200 employees.

The licensed producer of innovative products for the global cannabis market will become 100% carbon neutral from September 2021 onwards.

The company will also offset the plastic used in their pouch packaging through Plastic Bank® in partnership with Dymapak, HEXO’s primary packaging supplier.

These actions highlight HEXO's goal to become an Environmental, Social, and (Corporate) Governance (ESG) leader in the cannabis industry.

“We have always taken our responsibility for sustainability seriously. Now, as we are on the verge of becoming the top Canadian LP by recreational market share and continuing down the path towards top three globally, it’s more important than ever to take meaningful action to protect our planet – and this is just the start,” said HEXO CEO and co-founder Sebastien St-Louis.

“We are challenging ourselves and the rest of the industry to do better, so in addition to becoming carbon neutral by offsetting our operational emissions, we feel it is our obligation to offset our employees' emissions as well.”

Through a partnership with Offsetters, in support of the Great Bear Forest Project, HEXO will be measuring and offsetting its carbon emissions starting with its 2020 calendar year.

The Great Bear Forest Carbon Project reduces carbon emissions by protecting forests previously designated, sanctioned or approved for commercial logging.

Carbon finance supports the local First Nations communities by generating stewardship jobs protecting the Great Bear Rainforest - the largest intact coastal temperate rainforest remaining in the world - and offsets the equivalent of one million tonnes of carbon dioxide each year.

“On top of their own commitment to carbon neutrality, HEXO has raised the bar by committing to purchase offsets to mitigate their employee’s personal emissions,” said Dawn Hancock, Director of Client Engagement at Offsetters.
“This is the first time we’ve seen a company of this size make this kind of commitment and we hope that it helps to spur stronger commitments from other companies.”

In conjunction with HEXO’s primary packaging supplier Dymapak and its partnership with Plastic Bank, the company has offset 63,000 kilograms of plastic in 2021 - the equivalent of over 3.15 million plastic bottles. HEXO will continue to counteract the use of all plastic in its packaging.

Plastic Bank builds ethical recycling ecosystems in coastal communities and reprocesses the materials for reintroduction into the global manufacturing supply chain. Collectors receive a premium for the materials they collect to help them provide basic family necessities such as groceries, school tuition and health insurance.

“Ocean plastic is a critical issue with increasing challenges,” said Ross Kirsh, CEO at Dymapak.

Offsetting HEXO’s carbon emissions, the emissions of their employees, and counteracting the use of plastic packaging are among the latest steps in the company’s company-wide mission to build a business that balances profit, people, and the planet. HEXO will monitor and publicly report on its greenhouse gas emissions, carbon neutrality, and its continued efforts to improve sustainability. This includes minimizing waste at facilities, moving towards a more virtual workforce, reducing carbon emissions at production facilities, as well as exploring new sustainable packaging materials that are more easily recyclable or biodegradable.

HEXO plans to release its financial results for the fiscal Q3 2021, before market hours on June 14, 2021, as well as host a webcast for investors beginning at 8:30 am EST.

Nanaimo, BC-based licensed producer Tilray Inc. (TSX: TLRY, Forum) launched Symbios, a complement to the Company’s existing medical brand portfolio in Canada. This new brand was developed to provide a broader spectrum of formats and unique cannabinoid ratios at a better price point while offering medical patients a full comprehensive assortment of products, including flower, oils, and pre-rolls for their health and wellness regiment.

This announcement comes on the heels of a report from Data Bridge Market Research that found that the market could be worth up to $28.05 billion by 2027. “Increasing CBD oil usage in several medical applications such as treatment of anxiety and depression, stress relief, diabetes prevention, mitigation of pain, alleviation of cancer symptoms, and acne reduction will likely accelerate the growth of the CBD vape juice market in the forecast period of 2020-2027.

Finally, integrated healthcare company Empower Clinics Inc. (CSE: CBDT, Forum) announced this week that it had signed of six Letters of Intent (LOI's) to open medical healthcare centers with Rexall / Pharma Plus Pharmacies Ltd., the second largest pharmacy group in Canada.

It is proposed that Empower will act as a subtenant for these initial six locations to build and operate health care centers as a key driver of Empower's national clinic expansion strategy. Services include full primary care led by medical doctors plus paramedical services with practitioners providing services including chiropractic care, physiotherapy and more. Beneficiaries of these services include the pharmacies large existing customer base in addition to patients in the wider communities each location will serve.

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