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In 2011 Peter Epstein, CFA, MBA left a $3 billion hedge fund where he was a senior analyst to help increase awareness of a number of small cap companies in which he's invested in. Please see: EpsteinResearch.com On TWITTER: @peterepstein2 Mr. Epstein formed MockingJay, Inc., a consultancy for... More
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  • Dajin Resources, The Right Place And Time In Nevada's Lithium Hub

    Dajin Resources, the Right Place and Time in Nevada's Lithium Hub

    Peter Epstein, CFA, MBA EpsteinResearch.com

    Last week, Tesla Motors announced that it had agreed in principle to an off-take agreement with Bacanora Minerals Ltd. (located in Sonora Mexico) and to a lesser extent, its joint venture partner, on a portion of their properties, Rare Earth Min. Since then, Bacanora's stock is up approximately 40%. At first, I was surprised Bacanora's stock didn't soar even higher. It turns out that the off-take agreement has a number of contingencies and no financial commitment from Tesla. In fact, Tesla's Elon Musk was quoted as saying, "this lithium deal is not exclusive (NYSEARCA:AND) has many contingencies. The press on this matter is unwarranted."

    Screenshot (1)

    The point of the opening paragraph is not to marginalize the good fortune of Mexico's Bacanora, they have certainly staked a coveted spot! Instead, I believe it has significant and important ramifications for lithium juniors in Nevada. There's Dajin Resources [(DJI.V) & (OTCPK:DJIFF)] Pure Energy Minerals [(PE.V) & (OTCQB:HMGLF)] the proposed [Western Lithium / Lithium Americas] merger and of course the currently producing Rockwood Lithium brine operation.

    Clearly, more than one of the above will get the green light. In fact, I'm laying out a thesis that, over time, all existing Nevada lithium companies will be keenly sought after. I find it noteworthy that Tesla's first move to secure lithium supply was choosing a company that remains years from production. To be fair, Bacanora is more advanced than Western Lithium, Dajin Resources and Pure Energy. However, the fact that Tesla is looking so far in advance and might soon announce deals in Nevada, is telling of Musk's longer-term strategy. Remember, Musk believes, "the need for lower-cost batteries for autos and power storage means there will need to be hundreds of, "giga-factories…"

    Can Long-Term End Users Avoid Tapping Every Viable Lithium Source?

    If Tesla is largely confined to North America for his its raw materials, as is reported to be the case, Nevada is surely a great place to be. The State offers security of supply not just for Tesla, but for giga-factories sure to follow. There are not that many lithium juniors, except a dozen or two with little more than a potential deposit, in places like Serbia, with no cash or the ability to raise capital. Hope is not a strategy.

    Please Continue Reading

    Sep 04 7:27 AM | Link | Comment!
  • Interview Of Long-Term Uranium Analyst Rob Chang Of Cantor Fitzgerald

     

    Interview of Long-Term Uranium Analyst Rob Chang of Cantor Fitzgerald
    This interview of Rob Chang of Cantor Fitzgerald is based entirely on his own Uranium Sector views. Disclosure here a piece of cake - I have no prior or existing relationship with Mr. Chang, Cantor Fitzgerald or any company listed herein. Rob Chang has been a proponent of the uranium sector for years. Like many of his peers, including Rick Rule, my friend Alex Molyneux of Azarga Uranium, Chris Berry who said in 2014, something that very well come true, that the uranium sector rebound is a 2016 event. Nice call! Mickey Fulp, the Mercenary Geologist is also in the uranium camp as is Jeb Handwerger of goldstocktrades.com There are of course others. Issues that are discussed below help explain what has happened and what is likely to happen (exact timing unknown.) Enjoy the interview.

    Peter Epstein, CFA, MBA @peterepstein2 epstein.peter4@gmail.com Please sign up for free updates of my work at EpsteinResearch.com

    Some consider you to be one of the more bullish analysts in the uranium sector. Do you agree? Can you share your uranium price deck for the annual period from 2016-2019?

    I guess I have been one of the more bullish on the space but that is because the fundamentals of uranium is extremely compelling. I have no doubt there will be a violent price movement higher when utilities start scrambling for a limited supply of uranium in the future. We were likely seeing the beginning of this rise for the six month period just before Fukushima occurred. I firmly believe this is a case of being right too soon. I simply can not see a scenario where uranium prices do not skyrocket sometime in the future. The question is when. As far as my firm's uranium forecasts, we currently report $50/lb in 2016, $60/lb in 2017, $70/lb in 2018 and $80/lb in 2019.

    Do you believe that the latest news from Japan is truly a sentiment builder, or perhaps not so much since it's taking so long?

    I think the Fukushima restarts would have been a sentiment builder if it were not for China devaluing its currency the following day. Any positive momentum from the restart headline was lost. It appears that uranium is snake bit somehow. The sector always finds a way to not go up. Fukushima derailed what was looking to be an impressive really for uranium a few years ago. Now we have China's devaluation and current equity market weakness.

    Pundits say that the long-term uranium price needs to recover to US$65/lb for new or early-stage projects to move forward. Any thoughts?

    Please continue reading...

     

    Sep 01 8:47 AM | Link | Comment!
  • Interview Of Shawn Wallace, President & CEO Of Auryn Resources Inc.
    Interview of Shawn Wallace, President & CEO of Auryn Resources Inc.by Peter Epstein

    [Note: over the past month the S&P500 is down 5.23%, the DJIA down 6.31% and Gold (KITCO Charts) UP 5.23%] (stock futures are down 4% Monday morning)

    The following interview of Shawn Wallace, President and CEO of Auryn Resources Inc. was conducted by Peter Epstein, CFA, MBA in the week ending August 21st. From the Company's website, quote, "Auryn Resources is a junior mining exploration company focused on delivering shareholder value through project acquisition and development. The Company's management team is highly experienced with an impressive track record of success in the exploration, discovery, development and financing of mining assets." This is true. However, upon reading this interview, readers should learn that there's a lot going on at Auryn.

    Following the recent sale of Cayden Resources, several key members moved to the next big thing, Nunavut Territory in Canada. There's a lot of activity in Nunavut, [please refer to page 8] of the Company's corporate presentation. The next paragraph recaps page 8, but there's a map on that page delineating additional exploration, development and production in Nunavut.

    Agnico's Meadowbank 2015, an estimated 400,000 ounces of gold at $656/oz cash cost. Agnico's Amaruq $20 million in 2015 exploration work with 50,000 m of drilling and an inferred resource of 1.5 million ounces @ 7 g/t Au. Agnico's Meliadine P & P resource of 3.3 million ounces @ 7.44 g/t Au, plus a measured & indicated resource of 3.3 million ounces @ 5 g/t Au and an inferred resource of 3.5 million ounces @ 7.6 g/t Au. TMAC Resources' Hope Bay completed a $135 million IPO for a total of $182 million raised since 2013, TMAC has a measured & indicated resource of 4.4 million ounces @ 9.6 g/t Au. Sabina Gold & Silver's Black River has a measured & indicated resource of 5.2 million ounces @ 5.81 g/t Au and a recently released a positive feasibility study.

    Mr. Wallace, thank you again for taking the time to answer my questions. Please describe Auryn Resources and its key project.

    Auryn Resources Inc. (TSX-V:AUG) (OTCQX: GGTCF) is a well-financed and technically driven gold exploration company boasting an experienced management, Board and technical team with a proven track record of success. Auryn is currently advancing the Committee Bay Gold Project "CBGP." The mineral project, located in Nunavut Territory, Canada, includes 66,160 hectares (163,485 acres) situated along the Committee Bay Greenstone Belt, "CBGB."

    What attracted us most to CBGP are its high-grade gold endowment, existing exploration infrastructure, mining friendly jurisdiction, major mine developments in the region and district scale discovery opportunities. Our property extends more than 300 kms northeast to the shores of Committee Bay, and is roughly 180 kms NE of Agnico Eagle's "Agnico" Meadowbank mine. Importantly, we are in the process of acquiring North Country Gold Corp. (TSX-V:NCG), holder of a 49% stake in the CBGP project. This acquisition would consolidate 100% of the property for Auryn.

    The project benefits from existing infrastructure including, "Bulk storage fuel facilities, 5 high efficiency drill rigs, a heated drill water system, heavy equipment on site, a 100 person camp at our main Three Bluffs deposit area and two satellite camps SW of the belt."See corporate presentation. The CBGB comprises one of a number of attributes that are thought to be equivalent to that of other significant gold bearing deposits such as Agnico's Meadowbank and Meliadine mines. High-grade gold occurrences are found throughout the 300 kms strike length, including the Three Bluffs deposit that contains a NI 43-101 compliant Indicated & Inferred resource of 1.2 million ounces of gold. The Three Bluffs deposit remains open for expansion both along strike and at depth, giving us tremendous exploration upside.

    Please Continue Reading...

    Video Interview of Wallace by Jay Taylor

    Aug 24 9:20 AM | Link | Comment!
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