(Ore stockpiles at the Kakula North decline containing 2.04 million tonnes grading 5.13% copper as of December 31, 2021. Image via Ivanhoe Mines Ltd.)
2022 started off with a bang for investors as many sectors were rocked by the spread of the Omicron Coronavirus variant, but a few weeks later we are starting to see a clearer picture of where many companies are headed this year.
This has allowed the Stockhouse Bullboards to pinpoint some solid small-cap opportunities that are on the rise.
That’s been the resource and energy tech sectors so far, and in this week’s edition we will take a look at some of the companies that people are talking about across several sectors. In some cases, the opportunity for investors is obvious, while in others, a lack of information can make for interesting deep-dive discussions into what is known.
One resource company that has been making regular engaging updates is Canadian mining company
Ivanhoe Mines Ltd. (TSX: IVN, Forum), who announced its 2022 annual production guidance for the
Kamoa-Kakula Copper Project a joint venture with
Zijin Mining Group,
Crystal River Global Ltd., and the Government of Southern Africa’s Democratic Republic of Congo.
Kamoa Copper produced 105,884 tonnes of copper in concentrate in 2021, exceeding the upper end of the guidance range as operation ramped up at the Phase 1 concentrator plant.
In December alone, Kamoa Copper milled a record 372,000 tonnes of ore at an average feed grade of 5.98% copper, exceeding the monthly design run rate by more than 17%. With the Phase 2 expansion nearly complete, Kamoa Copper has set its production guidance for 2022 to between 290,000 and 340,000 tonnes of copper in concentrate. The guidance range for cash costs (C1) per pound of payable copper in 2022 is between $1.20 and $1.40 per pound of payable copper.
Kamoa Copper expects to begin operations at the Phase 2 concentrator plant in Q2 2022. The Phase 2 concentrator plant is identical to the Phase 1 concentrator, with a nameplate milling capacity of 3.8 million tonnes per annum (Mtpa). The Phase 3 expansion also is advancing, and an updated pre-feasibility study (PFS), including the Phase 3 expansion, is expected in Q3 2022.
Robert Friedland, executive co-chair of Ivanhoe Mines, commented on the upcoming year’s production guidance.
“The Phase 2 expansion remains significantly ahead of schedule,” he said, “and we are well on the way to doubling our annualized copper production to more than 400,000 tonnes starting early in Q2 2022, vaulting Kamoa Copper into the ranks of the world’s ten largest copper mines.”
Big news from
Datametrex AI Ltd. (TSX-V: DM, Forum), whose team reported that the company currently has approximately
$20 million (CAD) in cash and marketable securities on its balance sheet.
The cash balance is twenty times what it was valued in the same period of 2019. It is equivalent to approximately $0.056 per share with the company’s current market cap of approximately $85 million.
A technology-focused company with exposure to Artificial Intelligence and Machine Learning, Datametrex believes it will continue to see growth in revenue and profitability from its operations, generating stronger positive cash flow in 2022, further strengthening its cash position.
“We are pleased with the great start to the year as we continue to make every effort to improve revenue and find efficiencies from the efforts made over the years. We look forward to delivering on greater cash flow in 2022,” said Marshall Gunter, CEO of Datametrex.
Chairman Andrew Ryu added,
“As we continue to grow the revenue and look to expand the company, we will also focus on operating as efficiently as possible, as it will allow us to meet the company’s objectives and produce value for our investors.”
One recently announced contributor to its strong balance sheet, is a new multi-phase R&D program contract. The total value of the fully realized contract is approximately
$40 million (CAD).
Datametrex has been tasked to collaborate with its partner using Datametrex’s Social Media Automated Reporting Technologies (SMART) to improve the investigation of social media influencer activities.
“This is a major milestone we accomplished for Datametrex. This will be a pivot for us to attract other high-profile customers to our AI business. Our selection on the next phase of the program is strong evidence in our superior AI solutions,” commented Chairman Ryu.
“This proves that our technology will help maintain a technological advantage in the state of social media cyber security. We are excited to commence this next phase of this large contract,” CEO Gunter noted.
SMART reduces the time needed to interpret and integrate large sets of data by offering powerful automated analyses. SMART allows an analyst to deal with hundreds of thousands of social media documents in minutes rather than hours or days.
This builds upon earlier news from the company, who plans to graduate to the
TSX in the first half of 2022. The board of directors has approved the change and has already initiated the process.
CEO Gunter commented on the uplisting,
“Datametrex anticipates that listing on the TSX main board will generate increased institutional awareness and attract a broader range of investors globally who are looking for companies with strong emerging technologies and expertise.”
A provider of intelligent video solutions for public transport and smart cities,
Gatekeeper Systems Inc. (TSX-V: GSI, Forum) announced this week that it had been awarded a contract for roughly
$195,000 (CAD) to equip a fleet of school buses under the company’s Platform-as-a-Service (PaaS) business model from a Thomas Built Buses original equipment manufacturer (OEM) school bus dealer in Southeast US The PaaS solution will be installed in Highpoint, North Carolina where Thomas Built Buses are manufactured.
A week ago, GSI signed a contract for approximately
$140,000 (CAD) to equip a fleet of school buses under the PaaS business model from a Blue Bird OEM school bus dealer, also in Southeast US.
At the beginning of the month, the company was awarded a contract for around
$230,000 (CAD) to equip a fleet of school buses under the company's PaaS business model. This new customer selected Gatekeeper for overall performance reliability, as well as the expansion capabilities of the PaaS solution design which allows them to add its Student Protector when future budget permits.
Gatekeeper’s PaaS solution is centred around mobile data collectors that record and analyze video, audio, GPS location and data on the school bus, and becomes the on-board intelligence platform for future applications such as passenger counting, contact tracing and more. Interior cameras and exterior 360 degree viewing systems enable a safer transportation environment both inside and outside the school bus.
Looking at our Investor Pulse Poll from last week, half of investors who responded took a realist approach about the perceived “Santa Claus Rally”, do you agree with how things played out this holiday season? Let us know your thoughts in the comments below.
This week, we want to know what you think will affect stocks most in 2022. Trading has been volatile already, though the Dow and S&P are both still just 3% below their all-time highs. Click on the image below to cast your vote.
(Click image to vote.)
Next week we’ll shift focus to other sectors with a better understanding of how governments on both sides of the border will help people and the economy, along with what challenges still await.
Stockhouse keeps you in the loop on the hottest small-cap stocks, keeping you ready for the shift to a recovery, and with it, a buyer’s market. For previous editions of Buzz on the Bullboards:
click here.
FULL DISCLOSURE: Datametrex AI Ltd. is a client of Stockhouse Publishing.