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Peter Epstein

 
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  • Graphite One, Leading U.S. Graphite Play With Massive High-Grade Deposit [View article]
    Feature article written by me, on Graphite One...Please take a look. Thanks!

    http://seekingalpha.co...
    May 8 11:23 AM | Likes Like |Link to Comment
  • Pershing Gold: Strong Drill Results, Insider Buying And New Research Coverage [View article]
    Press release this morning, May 1st

    LAKEWOOD, Colo., May [1], 2014 (GLOBE NEWSWIRE)—Pershing Gold Corporation (OTCQB:PGLC) (“Pershing Gold” or the “Company”) is pleased to announce the start-up of its 2014 drilling program at the Relief Canyon Mine property in Pershing County, NV. This program will be focused on finding mineable ounces to add to Pershing Gold’s recently expanded 43-101 resource estimate.

    The program is designed to step out from known resource blocks as defined by the recent work of Mine Development Associates described in our March 31, 2014 press release. The program will test previously undrilled zones that overlie the current resource blocks, with the objective of expanding those blocks towards the surface to add near-surface ounces north of the existing pit. Additionally, the program will include in-fill drilling that is designed to expand the resource estimate to include additional high-grade zones of gold mineralization.

    The drilling program will focus on two areas. The first drilling area will be along the high-wall of the current pit with the goal of expanding the resource to the east. This high-wall drilling will utilize a specialized rig designed to drill holes at very shallow dip angles, allowing Pershing Gold the ability to test areas beneath and east of the high-wall without constructing new roads.

    The second area of drilling will include step-out holes testing for high-grade mineralization within and to the north of the existing pit. This drilling will utilize a standard surface diamond core drill rig. The program will also include in-fill drill holes to expand high-grade zones within the Lower and Jasperoid zones.

    The Company expects to spend approximately $1.5 million on the 2014 drilling program, targeting 20,000-30,000 feet of core drilling with up to 40 holes. Pershing Gold has selected West-Core Drilling, LLC of Elko Nevada for the surface diamond core drilling and expects to award a contract for the specialized drilling in the near future.

    "The 2014 drilling program is a key step for Pershing Gold as we execute our 2014 mine development and resource expansion programs,” stated Stephen Alfers. “It is one prong of our two-prong approach to continue to expand the Relief Canyon deposit while simultaneously completing the mine planning, metallurgy, engineering, geotechnical, environmental and permitting work necessary to advance our plans to reopen the Relief Canyon Mine in the second half of 2015.”

    About Pershing Gold Corporation
    Pershing Gold is an emerging Nevada gold producer on a fast-track to re-open the Relief Canyon Mine, which includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap leach processing facility. Pershing Gold's landholdings cover over 25,000 acres that include the Relief Canyon Mine asset and lands surrounding the mine in all directions. This land package provides Pershing Gold with the opportunity to expand the Relief Canyon Mine deposit and to explore and make new discoveries on nearby lands.
    May 1 09:01 AM | Likes Like |Link to Comment
  • Uranium Energy Corp. Sell-Off Provides Opportunity [View article]
    UEC fell more than URZ, URG, URRE, UUUU and PWE.TO, but all of the uranium stocks are all down. Perhaps it's just a case of not fighting the tape? Look, the uranium spot price is at $31.5/lb! Yes, UEC is more at risk from spot prices because they have no production hedged in the $50's/$60's like UUUU, URG and URZ.

    Stiil, UEC still has ongoing support from Dundee Securities and Cantor Fitzgerald, with recently reiterated price targets of $2.40 and $2.10 per share. UEC stock below $1.1 per share is comfortably a double, but the timing is uncertain. I think it hits $2/share within 12 months. That might be disappointing to recent shareholders with a cost basis of $1.6-$1.7 or higher, but the spot price is down $4/lb in the past few months, it's brutal, with no near-term spikes likely.

    UEC under $1.1/share looks to me like a great price to double down. I'm long UUUU, PWE.TO, and UEC. Holders should remember who's behind UEC, Rick Rule / Sprott Inc., CEF Ltd, Casey Research, Mickey Fulp, Dundee Securities, Cantor Fitzgerald, to name a few. And, Amir Adnani has important friends and family in this. Amir still has a lot of pull. I think that Amir with the help of his network of stakeholders will be able to avoid a lot of the equity dilution feared by many.
    Apr 28 12:34 PM | 2 Likes Like |Link to Comment
  • American Sands Energy, First Mover In U.S. Oil Sands Extraction [View article]
    Skardem, very simple. I like BOTH AMSE and USO.V. So far, I know the AMSE story better than the US Oil Sands story. Both have similar challenges in getting over the oil sands stigma. Both will be successful in my opinion.

    I am doing ongoing research on both companies.
    Apr 23 07:17 PM | 1 Like Like |Link to Comment
  • Cannabis Stocks: What The Growlife Halt Means For The Industry [View article]
    Alan, thanks for pointing out the topic of exports. I haven't considered exports in my analysis. Does anyone have any info or opinion on when exports might start from Canada for FITX, Tweed or any other licensed provider?

    Thanks!
    Apr 22 10:52 AM | Likes Like |Link to Comment
  • Cannabis Stocks: What The Growlife Halt Means For The Industry [View article]
    In what year, (plus or minus a year) might Tweed approach 15 million grams, (= to about 33,069 pounds) of sales? In what year, (plus or minus a year) might FITX approach 1 million pounds per year?

    Thanks.
    Apr 21 11:22 PM | 1 Like Like |Link to Comment
  • Cannabis Stocks: What The Growlife Halt Means For The Industry [View article]
    Why buy FITX with a market cap of more than twice that of Tweed?
    Apr 21 06:59 PM | Likes Like |Link to Comment
  • Graphite One, Leading U.S. Graphite Play With Massive High-Grade Deposit [View article]
    I like Flinders, I've owned that stock in the past, but how big is the opportunity? How many metric tonnes can that past producing property deliver annually? I think the project has a stated Net Present Value, "NPV" in the US$ 20's millions?

    Graphite one, (best case) is 3 years from production. I believe it will have a NPV in the hundreds of millions when they release a PEA (expected within 9-12 months). Therefore, I think GPHOF / GPH.v has the possibility of a 5 Bagger return over the next few years. Flinders' stock looks like it has far less upside, albeit with less near-term risk.
    Apr 19 08:47 AM | Likes Like |Link to Comment
  • American Sands Energy, First Mover In U.S. Oil Sands Extraction [View article]
    I would continue to assume about a $50 million market cap, not $28 million. The company issued Series A preferred shares that are way in the money for conversion into common shares. I use 52 million pro forma shares x $0.90 share price = about $47 million, that's why I say $50 million.

    The company's opportunities outside of Utah are huge. They can earn royalties from projects outside of Utah, including internationally. The royalties would be split with the owner of the solvent extraction technology. Even a 5% royalty stream on gross revenues of a third-party project could be very substantial. These are 30 year projects. Each project could be a meaningful annuity to AMSE. For example, a third-party operating at 5,000 bopd and paying a 5% royalty on gross revenues to AMSE would be paying about $9 million annually. The Net Present Value of 30 years of $9 million a year close to $100 million. And that $100 million would come with no associated costs.

    Therefore, a single third-party project using AMSE's licensed technology would more than cover the market valuation of the entire company. And remember, 5,000 bopd is a small project, Canada is running at nearly 2,000,000 bopd. So, there's tremendous blue-sky upside, albeit not without significant funding and permiting risks.
    Apr 17 11:21 AM | 1 Like Like |Link to Comment
  • American Sands Energy, First Mover In U.S. Oil Sands Extraction [View article]
    Let's stick to AMSE please....

    Frost and Honig continue to be extremely supportive of PGLC and are long-term believers. It might take a higher gold price for investors to recognize the upside of PGLC stock. I for one believe that the gold price will be $1,400-$1,800/oz next year.

    Please direct further PGLC comments/questions to the PGLC article comment sections. Thanks!
    Apr 17 10:43 AM | 1 Like Like |Link to Comment
  • American Sands Energy, First Mover In U.S. Oil Sands Extraction [View article]
    Funny that Lisa mentions Red Leaf Resources....I know A LOT about that private company with 2 projects in Utah. Red Leaf is pursuing oil shale, not oil sands, and hopes to be in semi-commercial scale production by the end of next year. By oil shale, I mean actual shale rock that has kerogen in it. By heating the rock, hydrocarbons are liberated. For further info, go to the Red Leaf Resources website.

    Red Leaf is teamed with Total, the giant French Oil company. Red Leaf has spent the past 7 years, along with U.S. Oil Sands Inc. and of course American Sands Energy, paving the way for unconventional oil production in the state of Utah.

    Oil sands is conventional, I only call it unconventional in that it hasn't been done yet anywhere in the U.S.
    Apr 17 09:37 AM | 1 Like Like |Link to Comment
  • American Sands Energy, First Mover In U.S. Oil Sands Extraction [View article]
    The stock is very thinly traded, so good news can drive it up quickly. Pro forma for the assumed conversion of all Series A preferred stock into common stock, there are about 52 million shares outstanding. That's about a $US 50 million market cap with zero debt. The company expects to be in commercial scale production of oil by the summer of 2016, with the first full year of 5,000 bopd in 2017. At 5,000 bopd, and a conservative $80 WTI oil price assumption, the company estimates it could generate $39 million of EBITDA....See page 11 of corporate presentation....

    In terms of valuation, one is paying about a 1.3x multiple of Enterprise Value to EBITDA. Enterprise Value = market cap + debt - cash. Even after assuming a further $75 million capital raise in 1h 2015, the EV to EBITDA multiple would be just 3.2x, still cheap for a company that plans to ultimately grow to 50,000 bopd by 2020-2021.

    This is a high-risk situation, but I really like the fact that even at a $80 WTI crude oil price the company could be looking at $39 million of EBITDA. Today's spot price on WTI crude is $104/barrel.

    A factor that was not addressed in the interview is the highly attractive production curve of all oil sands operations. We've all read about the unconventional oil shale and gas plays that have steep decline curves. So steep, that in many cases initial production is halved within a year or two. With oil sands extraction there is no decline curve!! because it's really a mining operation, not an oil drilling play.

    Zero decline curve, with limited (if any) meaningful cost escalation-- that's the Holy Grail of oil production. The ONLY reason why oil sands production in Canada is not the Holy Grail is because of the heavy use and pollution of valuable water resources.
    American Sands Energy's licensed technology/process does not use water and therefore does not require the design, permitting, funding, building, monitoring and reclamation of tailings ponds. A HUGE difference and HUGELY compelling part of the AMSE story.

    If not for the politically and environmentally difficult to swallow tailings ponds in Canada, which stretch over thousands of acres, the oil sands industry there would be 10x as big. As it stands, the industry is 40+ years old and is producing upwards of 2 million bopd.

    Cleaner, more profitable oil sands extraction is coming to the U.S. It's a question of when, not if. Utah is the furthest along in allowing this to happen. I feel comfortable that AMSE has a more profitable business model than Canadian peers for one simple reason. The Canadian oil sands extraction methods use steam to separate bitumen from sand. The cost of building a steam generation facility alone (a mini power plant)typically runs into the hundreds of millions of dollars. AMSE completely avoids that expenditure.
    Apr 17 09:23 AM | 2 Likes Like |Link to Comment
  • Capitalizing On Cannabis: Key Addition To GrowLife Management Team Solidifies Story [View article]
    I hear guesses that TWD will trade at $2-$4 per share tomorrow.

    How many shares outstanding? Thanks!
    Apr 3 11:36 AM | Likes Like |Link to Comment
  • Capitalizing On Cannabis: Key Addition To GrowLife Management Team Solidifies Story [View article]
    Thanks fidelissemper

    Anyone know what the market valuation is of Tweed? I think it's a private company going public soon in Canada? Thanks again.
    Apr 3 10:45 AM | Likes Like |Link to Comment
  • Capitalizing On Cannabis: Key Addition To GrowLife Management Team Solidifies Story [View article]
    Great article as always Alan.

    While providing the picks & shovels is always a great way to play an industry, what about the actual cultivators of medical marijuana? Does anyone know of any pure-play cultivators? Shouldn't cultivators have higher margins than picks & shovels providers? Albeit, clearly cultivators would have higher risk as well.

    Is it still all mom and pops cultivating? Thanks Alan and anyone who can help me learn more about this sector.
    Apr 3 10:35 AM | Likes Like |Link to Comment
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