(Image via Ivanhoe Mines Ltd.)
The past few weeks have been a wild ride of highs and lows on Bay Street and Wall Street, with the metals and mining sector leading a lot of those gains, but also losses. Still, some of the heavy hitters came out of the week looking to be in an even more solid position.
The
Kamoa-Kakula mine under Canadian mining company
Ivanhoe Mines Ltd. (TSX: IVN, Forum) has begun exporting copper concentrate as production ramps up.
After five days of customs approvals, the copper concentrate will exit the DRC and proceed to the port of Durban, South Africa. This milestone is part of the ongoing ramp-up of Kamoa-Kakula's phase 1, 3.8 million tonnes-per-annum (Mtpa) concentrator plant. The first truckloads of Kamoa's blister copper ingots will be exported from nearby Lualaba Copper Smelter later this week.
Going forward, all Kamoa's phase 1 operating costs and the majority of phase 2 capital expenditures are expected to be funded from copper sales and facilities in place. The mine is on track to produce between 80,000 and 95,000 tonnes of copper concentrate in 2021.
Marna Cloete, Ivanhoe's President and Chief Financial Officer, commented that as Kamoa-Kakula's phase 1 concentrator plant ramps up toward steady-state production, the mine now is producing more concentrate than the nearby Lualaba Copper Smelter can process.
“As such, Kamoa-Kakula has begun exporting its ultra-high-grade copper concentrates to international smelters, converting the rich copper resources hidden beneath the Kalahari sands into long-lasting and meaningful benefits for all Congolese people.”
Sokoman Minerals Corp. (TSX-V: SIC, Forum) reported that close to 20,000 metres have been completed with two drill rigs; third drill rig expected in 2-3 weeks for the barge-based program at its
Moosehead Gold Project located along the Trans-Canada Highway in north central Newfoundland.
SIC advised investors that at the district-scale Fleur de Lys project in northwestern Newfoundland, the till sampling program is ongoing with multiple samples submitted for gold grain and heavy mineral analysis with initial results expected in 2-3 weeks. The property-scale till sampling program is approximately 40% complete with 357 samples submitted for gold grain and heavy mineral analysis at Overburden Drilling Management in Ottawa.
The discovery-oriented company also gave a comprehensive update on its Joint Venture Projects with
Benton Resources (TSX-V: BEX, Forum):
- Grey River JV: sampling in the vicinity of the historical 225 g/t Au sample site resulted in the identification of visible gold in a portion of the mineralized zone; samples submitted for assays; high-resolution airborne geophysical survey to begin shortly
- Golden Hope JV: initial reconnaissance mission completed; rock samples, stream sediment and C-horizon till samples submitted for assays; in the process of completing high-resolution airborne geophysical survey
- Kepenkeck JV: completed a high-resolution airborne geophysical survey; a prospecting program has begun; a detailed soil sampling program to commence shortly; first assay results from sampling deemed very encouraging
Taking a look at some inside action,
Reconnaissance Energy Africa Ltd. (TSX-V: RECO, Forum), announced that the
proposed acquisition of all of the outstanding securities of
Renaissance Oil Corp. (TSX-V: ROE, Forum) by Reconnaissance by way of plan of arrangement was approved at Renaissance’s annual general and special meeting of securityholders held last week.
HEXO Corp. (TSX: HEXO, Forum) shared additional financial information on its filing of
Redecan’s fiscal year 2020 and Q1 2021 financial statements this week, in connection with its acquisition of that company.
Redecan’s financial highlights:
- Revenue of C$73.6 million for 2020 and $24.7 million in Q1 2021, representing an increase of 146% over Q1 2020
- Unadjusted EBITDA of $28.9 million for 2020 and $12.4 million for Q1 2021
- Income from operations of $8.3 million and net earnings of $6.9 million in Q1 2021
- Income from operations of $16.7 million and net earnings of $11.6 million in 2020
- Gross margins of 51% in 2020 and 58% in Q1 2021
- PPE was $84.1 million as of December 31, 2020, the lowest among Canada's top six licensed producers
- HEXO expects the Redecan acquisition to close in Q3 2021
Chief Executive Officer of HEXO, Sebastien St. Louis explained that Redecan has the top consumer loyalty in Canada, along with an impressive market share and leading products in key categories.
“Redecan’s historical financial statements demonstrate exactly what we already knew: Redecan is one of the fastest growth LPs in Canada with positive income from operations, impressive margins, lean operational efficiency and strong revenue. Once closed, the acquisition will further strengthen our position as a leader in the Canadian cannabis industry, bolster the company as we look towards becoming a top-three global cannabis products company and put us firmly on the path towards positive EPS.”
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Integrated healthcare company
Empower Clinics Inc. (CSE: CBDT, Forum) just reported record Q1 2021 results with revenues over
$2.5 million (CAD), representing 258% year over year growth.
CBDT followed this news up by announcing a partnership with
Tabula Rasa HealthCare Inc. (NASDAQ: TRHC, Forum) this week to provide call center services for Kai Care’s
COVID-19 and Influenza A/B At-Home Salvia Test Kit. TRHC is a leading healthcare technology company advancing the safe use of medications.
(Empower Clinics Inc. stock chart – July 2020 to July 2021 – Click to enlarge.)
Kelowna-BC-based cannabis products manufacturer
The Valens Company Inc. (TSX.VLNS) recently announced its own
Q2 2021 financial results.
Valens financial highlights:
- Entered the US market with the acquisition of Green Roads, securing a global leadership position in the health and wellness market.
- Country-wide SKU listings increased 76% to 132 as of the end of Q2 2021, compared to 75% in Q1 2021
- Nine additional SKU listings were achieved since the end of Q2 2021, and another 40 SKU listings have been accepted by provincial distributors with first shipments expected in Q3 or Q4 2021 bringing total to 181
- Estimated share of the growing extract-based market remained stable at around 5% in Alberta, British Columbia, and Ontario in Q2 2021, based on Hifyre data and not including B2B LP manufacturing
- Entered into four new product categories, including flower, pre-rolls, topicals, and edibles, significantly increasing Valens' total addressable market in Canada and beyond
Speaking of stocks that rely heavily on their products for revenue, we asked Stockhouse members to give us their thoughts on which element of business they care more about in the stocks the invest – the company’s performance, or the products and services they provide … the results are in, and as you can see, we are less about “what can you do for me” and more about “what have you done for me lately?”
This week, we want to know if you believe the Delta COVID variant could impact the market as heavily as the last outbreak? Let us know your thoughts by clicking the poll image below.
(Click image to cast your vote.)
P. Peter Pascali, Chief Executive Officer behind
PyroGenesis Canada Inc. (TSX-V: PYR, Forum) issued an early warning report this week with respect to his shareholdings in PyroGenesis in connection with his proposed disposition through the facilities of the Toronto Stock Exchange of up to 765,000 common shares of PyroGenesis held by Fiducie de Crédit Mellon Trust under an automatic securities disposition plan and a notice of intention to distribute securities.
To find out more about this report, click
here.
Vancouver-based technology company
Fobi AI Inc. (TSX-V: FOBI, Forum) has developed a proprietary platform that harnesses the power of AI to deliver retail insights to brands and brick and mortar businesses.
FOBI has released a corporate update highlighting several of its recent initiatives, including a $7.42 million (CAD) private placement.
The company recently completed several large-scale pilot projects for its Internet of Things (IoT) device, which allows companies to use real-time data analytics to create personalized customer engagement, leading to increased profits. With the success of the pilot testing, several of Fobi’s partners are expanding the pilot scope by adding digital receipting, wallet pass applications, digital activations, and promotions.
Fobi CEO Rob Anson said that despite the challenges presented by the pandemic in getting these pilot tests adequately evaluated by major international retailers’ multiple pilots have successfully made it over the finish line. He added that 2021 is on track to be the year Fobi becomes a major global player in the world of real-time data analytics. The company has also added over $10.42 (CAD) million in working capital this year, including a $7.42 million private placement and warrant exercises.
Passcreator, a Fobi subsidiary, generated over $160,000 of revenue in Q1 2021, one of the most successful quarters in its history.
(Fobi AI Inc. stock chart – July 2020 to July 2021 – click to enlarge.)
Finally, investors in
BlackBerry Limited (TSX: BB, Forum) will likely be following the company closely today as the tech business holds its
virtual fireside chat where it is expected to reveal details on its BlackBerry QNX, BlackBerry IVY, BlackBerry Certicom, BlackBerry Radar, and other IoT applications.
The fun starts at 11am (EST), but a replay will also be available after the show.
For previous editions of Buzz on the Bullboards:
click here.
FULL DISCLOSURE: PyroGenesis Canada Inc. is a client of Stockhouse Publishing.