Seeking Alpha

The Energy Report's  Instablog

The Energy Report
Send Message
The Energy Report features leading investment coverage of fossil, nuclear, renewable and alternative energies. A Streetwise Reports publication. www.TheEnergyReport.com
My company:
The Energy Report
My blog:
The Energy Report
My book:
The Energy Report Newsletter
View The Energy Report's Instablogs on:
  • Nuclear Power Has A Bright Future: Amir Adnani

    Nuclear Power Has a Bright Future: Amir Adnani

    Source: Brian Sylvester of The Energy Report (6/5/12)

    http://www.theenergyreport.com/pub/na/13537

    If you asked Amir Adnani, chief executive of Uranium Energy Corp., why he was so bullish about uranium in 2007, his answer would be the same as it is today: There is not enough supply to meet demand. Investors might wonder if Fukushima has drawn the curtain on this industry, but Adnani says in this exclusive interview with The Energy Report that this is just the first act for nuclear power. Adnani is taking advantage of what he sees as a once-in-a-lifetime opportunity to grow his Texas-based company, snapping up properties that are now "on sale."

    The Energy Report: More than a year after a tsunami left the Fukushima nuclear reactor in Japan without the ability to sufficiently cool itself, Japan shut down the Tomari 3 nuclear reactor, leaving all 44,200 megawatts (NYSE:MW) of the country's nuclear capacity idle with no set date for restart. When investors hear news like that, they might get the impression that nuclear power is a sunset industry. What's your take?

    Amir Adnani: There is no doubt that the nuclear disaster in Japan has been one of the more challenging events facing the industry. Although just a couple weeks after those reactors were taken off-line, a town with two reactors in the western prefecture of Fukui voted in favor of restoring operations. Prime Minister Yoshihiko Noda and the federal government now have to make the final decision and several media outlets are reporting that the government may order the restart of two reactors next week. Many industry observers and analysts are expecting about 20-30 of the reactors to come back on-line over the course of the next year.

    Japan is very much dependent on nuclear power. About one-third of Japanese electricity was generated through nuclear power prior to Fukushima. As recently as this February, major industries, like Japan's steelmakers, have been urging the early restart of nuclear power plants. They fear potential power cuts and the rising costs associated with electricity from fossil fuels could affect their viability. Japan is a major export economy and has very energy-intensive industries to maintain and run competitively. Nuclear power will ultimately, in my opinion, be part of the energy mix in Japan. With time, we'll see plants come back on-line.

    TER: Is that enough to assuage investor concerns? What about what's happened in Germany, Switzerland and some other European nations that have curtailed energy produced by nuclear reactors?

    AA: Certainly investors have sold off uranium holdings based on the situation in Japan and I believe there was both an emotional and political knee-jerk reaction toward the industry. However, if we take a closer look at this through a sober vantage point, the effects of Germany phasing its reactors offline by 2022 is not nearly as material as the flip side of it: There remains significant nuclear growth in developing markets. Led by China and India, countries like Russia, South Korea and even oil-rich nations like Saudi Arabia and the United Arab Emirates are planning to build reactors that would nearly double the world's installed nuclear capacity by 2030. These countries continue to see nuclear power's unique ability to generate baseload power in a carbon dioxide-free and low-cost way as a very big advantage in their energy mix.

    TER: Where is the growth for nuclear in a post-Fukushima world going to come from?

    AA: The growth in the nuclear industry is going to come from exactly where it was going to come from pre-Fukushima. The countries and the economies that are expanding most rapidly are the ones that really need more power. The growth isn't going to come from the West. In fact, only 3% of the reactors that are under construction right now-there are about 65 reactors under construction-are in G7 countries. The top four markets are China, Russia, India and South Korea. Saudi Arabia plans to build 16 nuclear reactors, which is a $400 billion program. Chinese officials have reiterated the country's plans to grow its nuclear capacity to about 70 gigawatts (GW) by 2020. India plans to get to about 60-63 GW of installed nuclear capacity by 2030 and it further aims to supply 25% of electricity from nuclear power by 2050.

    The plans to develop nuclear power in China and other countries are very much driven by a set of realities that is very different and very acute. People are dying every year in China, literally choking to death, because of all of the nasty toxins that are being put into the environment by burning coal. It takes a lot of infrastructure to get coal into various places in China where some of that infrastructure doesn't exist yet. No other form of power can match nuclear power's ability to generate electricity in a low-cost, emission-free manner on a baseload scale.

    Having said that, there is incremental growth in the developed world, too. The U.S. Nuclear Regulatory Commission approved four licenses earlier this year for operating nuclear reactors to come on-line in Georgia and South Carolina. They are the first licenses of this type to be issued in the U.S. in almost 30 years. Even in the United Kingdom there have been announcements to build seven or eight new nuclear reactors. It is very positive to see those developments post-Fukushima.

    TER: Nuclear power has long-term potential, as you alluded to, but many investors want to make money now. What's the path to profits in the near term?

    AA: There might be different investment timelines out there, but any investor can appreciate a good bargain. Uranium is a very unique investment proposition right now. It's the only sector that had a black swan event occur in it-Fukushima-that wiped a lot of market value off the table for publicly traded companies. The whole resource sector is also under selling pressure and uranium is also under that pressure.

    Almost every possible punch you can imagine has been applied to the uranium industry. However, the fundamentals and catalysts of the uranium sector are very compelling. Other resource stocks-silver, nickel, copper-are down anywhere between 12-15% over the last three months because the underlying commodity is down as well. Uranium equities are down, but the underlying commodity is unchanged. In fact, the silver lining in this whole thing is that since Fukushima, the price of uranium has found a very stable base at $50-52/pound (lb) and term price is at $61.50/pound.

    TER: It was about $70/lb on February 28, 2011, just before the Fukushima disaster.

    AA: Correct. The volatility in other commodities and concerns about growth in China or Europe that have weighed on other resources haven't weighed on the price of uranium. I think this speaks volumes to the fact that there is a real supply imbalance in the uranium business. Even discounting for additional new reactors that are going to be coming on-line, we have a situation today where we simply don't mine enough uranium to meet current reactor requirements.

    There aren't too many metals that have a gap of about 40 million pounds (Mlb)/year (demand weighs in at 180 Mlb/year versus 140 Mlb of annual mine production). That gap is only going to widen next year due to the expiration of the Megatons to Megawatts program, a secondary source of supply, in which uranium is derived from dismantled Russian nuclear warheads. That's about 15% of the global uranium market. Of course, demand is going to grow because 65 reactors are going to be coming on-line in the near future and another 100-150 reactors are at various stages of planning and permitting. The supply-demand fundamentals in uranium are very compelling.

    The fact that supply is tight is the reason that the price of uranium has been supported at $50/lb. However, the reality is that there won't be any mine construction at $50/lb uranium. A study by JPMorgan in January showed that $80/lb uranium is needed to cover the capital expenditures (capex) to build conventional mines. Clearly, at $50/lb we're not there. Supply needs to come on-line. There needs to be a higher uranium price to stimulate interest in mine construction.

    TER: If operations aren't going to get built unless there is a higher uranium price, uranium is going to be more highly valued. If it gets to $80/lb, margins go up. You have extensive experience funding resource companies. What's the current appetite for nuclear equities among institutional investors?

    AA: It's very difficult to find anyone who doesn't see the compelling case being built in uranium. The valuations are very attractive. Valuations today are at the same levels as in 2009. But in 2009, the price of uranium was $40/lb, the expiration of Megatons to Megawatts was still four years away and there weren't as many reactors under construction. Institutional investors see that, but the key event that people are really watching is developments in Japan.

    TER: You've led Uranium Energy Corp. (UEC:NYSE.A), the first U.S.-based uranium producer to come along in the last six years, into production. But why in Texas?

    AA: Uranium mining tends to be a very license-intensive business. It takes a long time to permit projects, but there are varying attitudes from state to state. We really felt that Texas would be the path of least resistance to start production because the permitting happens at the state level with the Texas Commission on Environmental Quality, with some oversight from the Environmental Protection Agency (EPA).

    In other states, you have the state and the EPA, but you also have to deal with the U.S. Nuclear Regulatory Commission.

    South Texas also has a 30-year history with uranium mining. The uranium belt in South Texas, which extends about 400 miles from south of San Antonio down to the border with Mexico, tends to have primarily sandstone-hosted uranium geology, which is the perfect environment for in situ recovery (NYSEMKT:ISR) mining of uranium. This is by far the lowest-cost method of mining uranium.

    However, we don't view ourselves as being just a Texas company. We have projects in six different U.S. states. We have also acquired projects in South America.

    TER: Your Palangana operation involves recovering uranium via in situ recovery (ISR). How does that work and what are its impacts on the environment?

    AA: ISR is a dramatically different form of mining uranium compared to open-pit or underground mining. It's a process where gaseous oxygen is added to the groundwater that is immediately above a uranium deposit and pumped into the ore body. It causes the uranium contained in the ore to dissolve into solution. The solution with the dissolved uranium is then pumped to the surface where it is separated, further processed and dried into yellowcake that is then shipped to conversion facilities for sale to nuclear plants.

    The whole mining process is really far safer, far less unsettling to the environment and far less expensive in terms of both capex and cash costs per pound than open-pit or underground mining.

    TER: Is the solution that is pumped into the ground a threat to the water table?

    AA: It's oxygen and water-like soda water. Carbon dioxide is sometimes added sparingly. It's very benign. It's not like fracking. It doesn't use the ingredients that fracking uses or go to the depths that fracking does. We're going 400-700 feet from surface. Fracking targets are thousands of feet down.

    TER: What's UEC's path to growth from here?

    AA: The initial focus is on growing production and cash flow from our Texas operations, but we've done a meaningful job growing our in-ground resources through acquisitions we've made post-Fukushima, in Paraguay and in Arizona. We've put our money where our mouth is and made six acquisitions since Fukushima.

    We believe that the beaten-down valuations in the uranium sector represent a very unique and once-in-a-lifetime opportunity to grow. If we can grow at a time like this, when valuations are very attractive compared to their historic levels, then we've done a good job creating shareholder value.

    TER: What is your planned production in terms of pounds?

    We have a hub-and-spoke production strategy in South Texas and are working toward an initial production rate of 1 Mlbs per annum. The company is also growing our Texas resources by starting a drilling campaign at our Burke Hollow project last month and we're starting drilling this month at our Channen project.

    Outside of Texas, we're trying to grow the company in Paraguay, which has similar geology to South Texas. We have a large land package with about 1 million acres and established resources. In Arizona, we recently established one of the largest single uranium resources at our Anderson project of about 29Mlb U3O8.

    TER: Are you looking to acquire other small uranium companies, or could you be an acquired at this point?

    AA: We think this is a time to grow and take advantage of the bargains out there. If you think there's an attractive uranium project out there that you liked before Fukushima, the geology and Mother Nature haven't changed, but the price tag has gone dramatically lower. This is the best time for us to make those acquisitions and we have been making them. What we'd like to focus on is making sure that our operations in Texas successfully grow to the levels we expect. This is not an environment to be thinking about getting acquired. This is an environment to be thinking about acquiring and taking advantage of low valuations.

    Post-Fukushima, there has been quite a bit of merger and acquisition (M&A) activity with the bidding war between Rio Tinto (RIO:NYSE; RIO:ASX) and Cameco Corp. (CCO:TSX; CCJ:NYSE) and a number of acquisitions by ARMZ Uranium Holding Co. and Chinese-related companies. It goes to show that the big players think this is a good time for M&A.

    TER: Do you have any parting thoughts for us?

    AA: In 2007, there was what you could call a uranium bubble-there was a lot of market enthusiasm and excitement for uranium, and the price of uranium was north of $100/lb. Had you asked me then what the three reasons to be bullish on uranium were, I would have said globally, we consume significantly more uranium than we mine, the growth coming out of China, India, Russia and other emerging economies, which will nearly double the world's nuclear capacity by 2030, and that the Megatons to Megawatts accord expires in 2013, and that will decrease supply by about 15%. Those would have been the three reasons in 2007 to consider investing, and everyone was. The price of uranium was almost three times what it is right now.

    Today, if you ask me what the three reasons are to be bullish on uranium, they are the exact same reasons that they were in 2007-only that we have more reactors under construction in the world today than we did in 2007. Megatons to Megawatts expires next year. The valuations in this sector are far lower than in 2007, yet the fundamentals are becoming more compelling.

    The nuclear industry is going to be a safer industry moving forward because of what happened in Japan. That's an important takeaway. It will continue to grow and be an important part of our energy mix in the 21st century because of its unique ability to generate large amounts of base-load power, at low cost and with no emissions. The valuations in the sector are near all-time lows and that makes it timely to be looking at the sector right now.

    TER: It sounds like the pause button was hit in 2011 on the uranium story and once that pause button is pressed again we can look forward to growth.

    Amir Adnani is a founder of Uranium Energy Corp. and has served as the president, CEO and a director since 2005. Under his leadership, Uranium Energy has become North America's newest uranium-producing company and the first uranium producer in the U.S. in more than seven years. The company has achieved its prime status, including the broad support of major securities analysts and institutional investors, due in large part to Adnani's early and continuing focus on bringing many of the uranium industry's most experienced technical personnel into management.

    Want to read more exclusive The Energy Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators and learn more about critical metals companies, visit our Energy Report page.

    DISCLOSURE:

    1) Brian Sylvester of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.

    2) The following companies mentioned in the interview are sponsors of The Critical Metals Report: Uranium Energy Corp. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.

    3) Amir Adnani: I personally and/or my family own shares of the following companies mentioned in this interview: Uranium Energy Corp. I personally and/or my family is paid by the following companies mentioned in this interview: Uranium Energy Corp. I was not paid by Streetwise Reports for participating in this story.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    Jun 07 5:14 PM | Link | Comment!
  • Biggest Value For Agricultural Investors Revealed: Steve Hansen

    Biggest Value for Agricultural Investors Revealed: Steve Hansen

    Source: Peter Byrne of The Energy Report (5/31/12)

    http://www.theenergyreport.com/pub/na/13502

    Steve Hansen of Raymond James sees the potash market as a barbell, with a handful of large incumbent producers on one end and dozens of junior miners clustered at the other. In this exclusive interview with The Energy Report, Hansen discusses which juniors may migrate to the mid-cap arena and why current share price weakness does not dampen Raymond James' bullish sentiment on the sector, from Canada to Ethiopia.

    The Energy Report: Potash prices and production collapsed in 2008. Why is Raymond James still bullish on potash?

    Steve Hansen: It is a relatively simple supply-demand thesis. On the demand front, global food consumption is growing steadily alongside population growth, urbanization, rising disposable income and shifting dietary patterns-particularly in emerging markets. According to the FAO, global food production needs to increase by 70% by 2050 just to keep the world adequately fed. That's an enormous uplift compared to current levels. We view higher rates of fertilizer application, especially potash, as one of the key factors in achieving these necessary production gains.

    On the supply side, global potash reserves and production capacity are concentrated in the hands of just a few key players. The world's top-five producers account for two-thirds of global potash capacity. The immense capital requirements needed to develop new mines present significant barriers to entry. This combination of concentration and capital creates an attractive supply-controlled environment; it allows the incumbent producers to extract favorable pricing.

    TER: What countries are the major users and/or exporters of potash products? Which countries produce enough for their own consumption, and which are import dependent?

    SH: The largest exporters are Canada and Russia, where more than 70% of global potash reserves are concentrated and the largest incumbent producers are also based. The largest consuming nations are China, the U.S., Brazil and India, all of which have large, agriculturally influenced economies. The largest consumers are also the largest importers, although, in some instances, importers do have material amounts of domestic production. The obvious cases are the U.S. and China, both of which have fairly sizeable domestic potash industries that help reduce the amount of required imports. On the other end of the spectrum are Brazil and India. Because both have very little domestic production, they must rely almost entirely upon international imports.

    TER: Saskatchewan holds 40% of the world's potash reserves. Who are the major potash players in Saskatchewan? How have those firms been affected by the recessionary economic situation since 2008?

    SH: From our perspective, there are three buckets of potash players in Saskatchewan. First are the incumbent producers, including the large-cap bellwether names, such as Potash Corp. (POT:TSX; POT:NYSE), The Mosaic Co. (MOS:NYSE) and Agrium Inc. (AGU:NYSE; AGU:TSX).

    The second bucket is filled with what we call the "super-major" developers. These companies are relatively new players to the Saskatchewan basin, but they have very deep pockets and plentiful access to capital. These firms include BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK), Rio Tinto (RIO:NYSE; RIO:ASX) and Vale S.A. (VALE:NYSE). European producer K+S Aktiengesellschaft (SDFG:FSE), also entered Saskatchewan recently, as did a large Russian-backed player, ACRON Group (AKRN:LSE; AKRN:RTS).

    The third bucket contains a handful of junior developers. These players are small-cap companies looking to advance their flagship greenfield projects through the traditional development milestones, typically with the goal of selling the asset and/or luring in a strategic partner. These juniors do not have the financial capability to advance a project beyond its initial development stages. A couple of the key players are Western Potash Corp. (WPX:TSX.V) and Encanto Potash Corp. (EPO:TSX.V).

    TER: How did falling potash prices affect the industry during the past recession?

    SH: The effects have varied. The large incumbents were not impacted much. Their financial performance clearly suffered temporarily, as demand and pricing both fell precipitously during the downturn, but both have recovered handsomely since then, and these producers are now doing very well. There was also some industry consolidation in the east. Developers also fared reasonably well, buoyed by a few large takeouts in the space. Most have also made solid strides in advancing their flagship projects.

    TER: Given that demand for potash is subject to large demand volume and market price fluctuations, what are the opportunities for potash juniors in Canada? What about juniors in other regions of the globe?

    SH: Prior to 2007, the concept of a junior potash developer was pretty much nonexistent. Prices had dwindled below $200 per ton for the better part of three decades, and the major incumbent producers around the world had multiple decades of low-cost reserves. So there really was no economic incentive for junior developers to seek out new potash projects.

    But as potash prices began to surge, post-2007, junior developers sprouted up all over the world, all racing to develop the next wave of greenfield potash mines, the likes of which had not been built since the 1970s.

    Several early movers in the space have already played a major role in shaping the industry's future. BHP acquired Anglo Potash Ltd. in May 2008, as well as Athabasca Potash Inc. in January 2010. K+S later acquired Potash One Inc. in November 2010. Most of these projects are now being advanced by their respective new owners with first production being discussed in the latter half of the decade.

    TER: Can this trend continue?

    SH: Looking forward, we believe it's going to be more challenging. The new "super-majors," which are the most likely players to construct new mines-BHP, Rio Tinto, Vale, ACRON, K+S-all appear to have made their beds at this point, each with substantial land positions and/or mega-scale projects already secured, thereby limiting the number of natural acquirers.

    To be fair, we still believe there are reasonable prospects for large downstream players, the big consumers of potash, to step in and provide critical financing and/or offtake arrangements for junior developers. But there is an increasing risk that many small firms working on good projects could be "left at the altar," with no partner to consummate the marriage. And as in most cycles of the commodities trade, this is likely to trigger a wave of junior consolidation over time.

    TER: What is the potential for offtake contracts for junior potash players?

    SH: That is the million-dollar question for the developers. The capital requirements are enormous for greenfield potash projects. A smaller niche project can require $750 million ($750M) in capital expenditures and a larger one can require $3-4 billion. Juniors just don't have the financial resources to capitalize these large-scale projects.

    There are, however, anecdotal stories of downstream Chinese and Indian parties preparing to step up. They're doing a lot of due diligence. We know that. We just haven't seen anything significant materialize yet.

    The one exception is the recent offtake arrangement that IC Potash (ICP:TSX.V; ICPTF:OTCQX) struck with Yara International (YARIY:OTCPK). Yara is one of the world's largest suppliers of fertilizers, and this specific deal entailed Yara taking roughly a 20% stake in IC Potash for $40M at a very nice 41% premium. Yara also entered into a 15-year offtake arrangement for 30% of all production out of IC Potash's flagship Ochoa project.

    There are opportunities for more offtakes, and I suspect we shall see more of them. But I do not expect a wave of them in the near-term future.

    TER: Ethiopia has been a source of potash since the 14th century. In late 1960s, floods shut down potash production, and then war and internal strife kept the mines closed. How has this situation changed? Is the Ethiopian government friendly to foreign mining investment? Is it stable?

    SH: Ethiopia is blessed with a high-grade, relatively shallow, world-class potash deposit in the Danakil basin, which is located in the northeast near the Eritrean border. It's very well positioned geographically to service some of the world's highest-growth markets for potash, with relatively short shipping distances from Africa's eastern coast. However, from our perspective, the principal challenge for the basin pertains to the country's relatively undeveloped infrastructure. It's still lacking in a lot of key roadways, rail, and power infrastructure. There are also key technical issues around water availability that still need to be addressed. The Ethiopian government has made significant progress on road development, however, having paved a large roadway into the southern side of the Danakil basin. The government has also contracted a Chinese state-owned railway group to build out the rail infrastructure. The early stages of this rail infrastructure are not headed into the Danakil, but there is the potential to extend rail there, which would be a huge win for the basin. Other large parties-Yara being a key example-are also making additional investments in the basin.

    So the short answer is that Ethiopia still has clear challenges to overcome. But the quality and size of the resource is not to be ignored. Over time, the Danakil will certainly be developed, but a few more things need to fall into place before large-scale development can take off.

    The one counterintuitive advantage Ethiopia has going for it is that developers in the country likely have access to capital from nontraditional sources, such as the International Finance Corporation and World Bank. Developers with projects in advanced countries, such as Canada, cannot access this type of capital. There are good examples of infrastructure-related projects-wind in particular-where the IFC and World Bank are already providing attractive financing terms to advance the economic development of Ethiopia. And we expect that potash developers in the Danakil basin likely have access to similar sources of capital. For example, Allana Potash Corp. (AAA:TSX; ALLRF:OTCQX) has already struck very good financing arrangements on both the commercial and international banking fronts.

    TER: Who has Allana partnered with?

    SH: On the equity side, Allana has received equity financing from Liberty Metals & Mining Holdings LLC. (a subsidiary of Liberty Mutual Insurance). Liberty is a large, sophisticated group with a great deal of mining interests around the world. The World Bank-affiliated International Finance Corp. has also taken an equity stake in Allana. This was a critical accomplishment for the company's credibility. Thanks to a recent equity raise, it is now fully funded through its definitive feasibility study (NYSE:DFS). The one key piece of the financing puzzle still to be completed is on the debt side, but this likely won't occur until the project's DFS is completed later this year. At that point, presuming everything goes to plan, the company will need to raise one last tranche of equity to finance construction. The big question for Allana is what percentage will go into debt versus equity? Typically, it's a 60/40 or 70/30 split. But Allana may be able to raise the ratio even higher, perhaps even 80% debt, given its access to development agency financing. It just needs to address key technical issues that are still outstanding.

    TER: Are there other players operating in the Danakil basin?

    Yara has a partnership in the basin. South Boulder Mines Ltd. (STB:ASX) is on the Eritrean side of the border. And Ethiopian Potash Corp. (FED:TSX.V; FED.WT:TSX.V) has a deposit. BHP also has a large concession in the basin, although it hasn't been too active there of late.

    The Danakil footprint is well mapped out. It is a world-class deposit, with attractive attributes. Multiple parties are expressing interest in it. The big question remains: Is it the easiest deposit to develop in the current context, versus other opportunities?

    TER: What other regions are you looking at for potash?

    SH: On the incumbent producers' side, we favor Canada. But in terms of the developing opportunities, we really like Brazil for junior developers. There are some very large potash deposits in the Amazon basin, but they're not easy to get at. There are complexities around climate, humidity, access and infrastructure. A benefit is that Brazilian firms do have access to some of the same nontraditional funding I mentioned earlier, including the International Finance Corporation. Furthermore, the Brazilian Development Bank has already expressed definitive support toward other fertilizer projects, including one controlled by MBAC Fertilizer Corp. (MBC:TSX).

    Brazil has become an agricultural powerhouse in recent decades. But the challenge is that it needs to import up to 90% of its potash. The government views this as a strategic issue, and it is working toward self-sufficiency in potash by 2020. That timeframe may be a bit ambitious, but at least it has outlined a goal.

    TER: What are investors looking for in a potash company?

    SH: Overall, from a financial constraints perspective, potash investors looking at junior developer opportunities seem to prefer smaller, bite-size capital projects, given the significant challenges around raising capital. Investors also prefer that production come online sooner rather than later, which is one of the reasons we suspect many projects are steering toward solution mining, versus traditional underground mining techniques.

    TER: How do you determine a target price for your stock picks?

    SH: For the large incumbents, we apply a target multiple to the company's forward projected earnings. Flexibility in this target multiple, at least compared to its historical range, allows us to capture a wide array of potential factors that may also influence the share price and outlook. For the developers, our target prices are generally derived using a risk-adjusted, net asset-value (NYSE:NAV) approach. Most of the junior potash developers do not have cash flows today. So, in simplistic terms, we forecast a company's future cash flows based upon its development project attributes, and then discount it back to present day to derive a NAV. Finally, once we've got the aggregate NAV figure, we risk-adjust it for various factors, such as stage of development and geopolitical and technical risk. Handicapping is more of an art than a science, particularly for the earlier-stage developers when the cash flows are years away.

    TER: Do you prefer any particular potash players?

    SH: Our two favorite names are Potash Corp., which we rate as an Outperform with a $60/share target price, and MBAC, which is Outperform with a $4.50 target price. In the current environment, we generally prefer the larger companies with current cash flow. Potash Corp is the bellwether in this space. It is the world's largest fertilizer enterprise with the number-one ranking in potash capacity. It is number three in phosphate and nitrogen. Potash Corp is in the final stages of a decade-long capacity expansion program, whereas many of its large competitors are just getting started with expansion programs. And at the same time, as its capital expenditure winds down, its free cash flow is set to balloon. That should facilitate stock buybacks, dividend increases and further strategic investments. Given its share price retreat in recent months, it's now trading at ultra-low levels.

    MBAC is a unique story. It is phosphate focused and it is Brazilian. Its flagship Itafós Arraias SSP project is fully funded and poised to go into production later this year. The potash industry today is a barbell. On one end are the big, incumbent producers and clustered at the other end are the small developers. MBAC is a junior developer that is going to migrate into the big production bell. We see that as a rerating opportunity for the company. We also see it as an opportunity for MBAC to develop as a large fertilizer enterprise, because it has a number of very attractive assets in its pipeline. MBAC is our second favorite name. The other developer that we are positive on is Western Potash. It has a very attractive property in the Milestone project in southeast Saskatchewan.

    TER: Thanks for talking to us today, Steve.

    SH: It was a pleasure.

    Steve Hansen joined the Raymond James investment firm in October 2005 as an associate equity analyst covering the industrial sector. He was promoted to equity analyst in April 2007. Prior to joining the firm, Hansen worked as a stock analyst with Morningstar, covering the forest products sector. Hansen holds a Master of Business Administration from the Ivey School of Business at the University of Western Ontario and a Bachelor of Science in forestry from the University of British Columbia. Steve also holds a CMA designation and is a CFA Charter holder.

    Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

    DISCLOSURE:

    1) Peter Byrne of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.

    2) The following companies mentioned in the interview are sponsors of The Energy Report: Allana Potash Corp. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.

    3) Steve Hansen: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this story.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    Jun 04 6:54 PM | Link | Comment!
  • Canadian Oil Explorers Pump Profits Abroad: Frederick Kozak

    Canadian Oil Explorers Pump Profits Abroad: Frederick Kozak

    Source: Zig Lambo of The Energy Report (5/29/12)

    http://www.theenergyreport.com/pub/na/13476

    Smaller Canadian-based companies are exploring and producing in countries all over the globe, in areas that may present even greater returns in the coming years. Frederick Kozak, oil and gas research analyst at Canaccord Genuity, draws on nearly 30 years of experience in the field to focus on investment opportunities in locations ranging from New Zealand to Colombia and Egypt. In this exclusive interview with The Energy Report, he discusses hospitable jurisdictions (it's not what you think) and which companies are flourishing in them.

    The Energy Report: It seems the oil market has defied the expectations of all of those who were predicting $5/gallon ($5/gal) gasoline this summer. What happened to the $130/barrel ($130/bbl) oil that people were talking about?

    Frederick Kozak: When oil gets into triple digits, $100+, $110, $120/bbl, it really starts impacting the North American economy, particularly the U.S. As gas approaches $5/gal, people start cutting back, which impacts worldwide demand. Combined with issues in Europe, China and other world political and economic events, the markets get nervous. The price of oil has turned around to reflect, perhaps, a less rosy economy for the next 12-18 months. The number of contracts that are traded on a daily basis on the NYMEX certainly outnumber real physical daily oil production by a larger multiple. Any way the wind blows influences the paper trade and it's not blowing in their favor right now.

    TER: What are your oil price expectations for the foreseeable future?

    FK: Our long-term view is for $100/bbl Brent with West Texas Intermediate (NYSE:WTI) at around $92.50/bbl through at least next year. That translates to $100/bbl Brent with a permanent differential reflective of the increasing demand from undeveloped parts of the world. Over the last 10 years, the Chinese have doubled their per capita consumption of crude. There's still a huge amount of consumption growth potential there. So, is $40/bbl oil ever feasible again? Certainly on a spike down, but the latest numbers out of the oil sands show that $65/bbl is the break-even number. That might be the floor. However it trades, it's probably going to be higher than that.

    TER: How do the prospects look for oil exploration and production companies (E&Ps)?

    FK: North America has seen a wonderful resurgence in oil production due to newer technologies. The shales and tight oil sands that were previously uneconomic at $30, $40 or $50/bbl are exceptionally economic now. Canadian oil production has also increased. Roughly 75% of the world's crude oil reserves are in the hands of national oil companies, some of which are not friendly to the Western world. That really limits where people can go. My analysis indicated that one of the best places in the last five years for oil exploration has been in South America, in Colombia.

    TER: You cover a pretty broad range of companies. Most of these are Canadian companies looking in a lot of places outside of Canada. What are your criteria for companies you want to cover?

    FK: I mentioned Colombia, but there are other countries I'm covering, including New Zealand as well as Egypt. I like countries with favorable business climates that are friendly to Western business practices, good fiscal terms and the ability to take money in and out of the country without onerous currency controls.

    TER: Besides Colombia, several countries in South America are getting a lot of attention from oil explorers. What is the big appeal?

    FK: Let's start at the bottom end of the spectrum with Venezuela, which has huge natural resources of heavy oil in the Orinoco belt and a government that is extremely unfavorable to Western interests. As a result, Petróleos de Venezuela S.A. (PDVSA), the national oil company, was once producing in excess of 3 MMb/d. About 10 years ago, Hugo Chavez started firing the competent oil and gas people and started replacing them with ones you might call political appointees. As a result, the country's oil production has gone down. The government also nationalized a number of projects and took away the commercial viability of foreign oil and gas companies to do business there. As long as he and people of his ideology are running that country, as rich as it is in resources, it's not a place you can do business.

    Argentina now appears to be turning in that direction with the nationalization of Repsol-YPF S.A. (REPYY:OTCPK). I cover three small oil and gas companies in Argentina, and I downgraded my outlook for them. As rich as the country is in natural resources, the current government is still influenced by the policies of Peron and is doing some very odd things. Although it's not a stay-away-from country, it's much less attractive and that is reflected in the share prices of other public companies involved there.

    At the other extreme is Colombia, where I first got involved in 2007. My catalyst at that point was the second election of President Uribe. In many South American countries, you get one president who makes a bunch of changes and then he's gone after one term. Being around for a second term basically allowed Uribe to institutionalize the first four years of changes. That's when I thought it was the time to be investing in Colombia.

    For many years, people thought about Colombia in terms of Miami Vice and the Colombian drug cartels and missed the fact that the country had been at civil war for nearly 50 years. It has great oil and gas potential with a number of very significant oil discoveries, including Cano Limon, Cusiana-Cupiagua and others. Most of the country was unexplorable because of the problems with the various guerilla groups.

    Once Uribe started getting that under control, it became attractive from a security perspective. Also, he recognized that the Ecopetrol contracts of the 1990s had become so onerous that nobody was investing there, so he had the Colombian fiscal regime completely revamped for new exploration blocks. As a result, Colombia has gone from 525 Mb/d in mid-2007 to nearly 1 MMb/d today. That's nothing short of remarkable given that the government is also looking at potentially 1.5 MMb/d total production in the next five years.

    That's one of the reasons the oil and gas community has focused on it. Many of the oil and gas companies involved in Colombia are Canadian-listed or with Canadian senior management teams. We're entrepreneurs and we're all over the world, exploring for oil and gas. Surprisingly, you can count the number of public American oil and gas companies operating in Colombia on one hand. There have been and are a lot more private enterprises still operating in Colombia that are U.S. based, but surprisingly few public ones.

    TER: How about Brazil?

    FK: Brazil has huge offshore potential. I'm less of a fan of Brazil, and I put it somewhere in the middle of the list because I'm wondering which direction it's going to head. Brazil dwarfs the rest of the South American economies and is less inclined to have foreign capital come in. There are foreign oil and gas companies operating there, but it has not opened up like Colombia. Because it has so much work to do in the offshore sector, there is some discussion as to whether or not Petrobras (PBR:NYSE; PETR3:BOVESPA) will open onshore production to foreign capital exploitation. I have been watching with great interest what HRT Participacoes em Petroleo SA (HRTPY:OTCBB) has been doing up in the Solimoes Basin. It's a Brazilian company that went public in Brazil with a number of North American private shareholders.

    TER: So what's higher on your list?

    FK: I would rank Peru after Colombia, ahead of Brazil.

    TER: Even though there are potential political problems there?

    FK: I think that perception has yet to be established. The president has well-documented past socialist leanings but he has kept a number of the key pro-business advisers and government ministers, even civil service people in those positions under a previously more business-oriented government. We are seeing examples out of Peru where things are working just fine.

    Gran Tierra Energy Inc. (GTE:NYSE; GTE:TSX) has a working interest in Block 95 in the Marañon basin, which was assigned to it without any timing issues or onerous changes to its oil and gas contract terms. Similarly, Pacific Rubiales Energy Corp. (PRE:TSX; PREC:BVC) is going into Peru now, on a joint venture deal with BPZ Energy Inc. (BPZ:NYSE). While that deal has just been announced and hasn't proceeded through the regulatory process, indications are there shouldn't be any issues related to that.

    Peru has a very robust mining industry and there have been a bunch of changes to that. It does have a very robust natural gas industry, but on the crude oil side, it is very under explored. Peru appears to be a very good business environment for oil and gas companies. Some people have compared it to Colombia 10 years ago.

    Pacific Rubiales remains my top pick and has been for a couple of years. When I first met the management team in Bogota in 2007, they presented the plan for the Rubiales oil field. I've seen many business plans come and go and not work out. That is why I'm usually skeptical. My technical background and experience in oil and gas engineering indicated that Pacific Rubiales' plan could work. Of all of the companies I've ever looked at in my career as an analyst, going back more than a decade, this is the only company with a management team that has delivered exactly what it said it would five years ago, virtually on time and on budget from an oil field that is probably going to exceed production expectations as the year progresses.

    It has a very strategic thinking team that ran Petróleos de Venezuela S.A. back in the good old days. It also has an enviable inventory of exploration lands in Colombia, and it has been very good or very lucky in finding heavy oil, which it continues to do best.

    The joint venture in Peru with BPZ Energy is another very logical example of taking advantage of great technical expertise it gained in Lake Maracaibo in Venezuela, that's similar to the shallow, offshore water off northern Peru where BPZ's assets are. I very much like what Pacific Rubiales is doing and can see how 100 Mboe/d today, in five years could be developed into 170 Mboe/d.

    TER: What else do you like in that area?

    FK: In Colombia, I like Petrominerales Ltd.'s (PMG:TSX) exploration inventory. The company struggled for the last half of 2011 with its exploration program in the Colombian foothills, but over the last couple of months, it seems to be having success. We just need the news on the testing of its more recent wells in the Corcel trend to see if it's back on track. I like its exploration inventory in the Colombian foothills, where it just finished drilling on a potential high-impact well called Bromelia. It will be testing that over the next two to three months to see if it's made an interesting discovery there.

    TER: You also cover New Zealand, which is an area most people don't associate with oil and gas production.

    FK: I have followed New Zealand's oil and gas industry for more than 10 years. It has to import the majority of its crude oil because only one-third of its domestic consumption comes from within in the country.

    I cover a company called New Zealand Energy Corp. (NZ:TSX.V; NZERF:OTCQX), whose president was the president of the very first company I wrote a research report on as an analyst when I first started. Fortunately, for me, he was successful. Otherwise, I might not be here today. So, when I look at oil and gas companies, regardless of where they are, I always look at the people first. As president, he's successfully run a number of public and then private oil and gas companies in the last 10 to 15 years. I know that the company management, with him at the helm plus its technical people on the ground in New Zealand, is quite viable.

    The company has an enviable position in the Taranaki Basin in New Zealand, the only currently producing basin in the country. I like its land base. I rank it up there with the best of the companies that are operating in New Zealand right now. It has been lucky on its first two wells. It's producing around 1,000 boe/d, but those wells are limited until it ties in its gas production. It has great conventional exploration potential, and like its next-door neighbor, Tag Oil Ltd. (TAO:TSX.V), which I do not cover, it has a very large land base on the east coast of New Zealand's North Island, which is potentially oil-shale prone. That could become a very interesting catalyst for both of the companies in the future. Right now, I'm more interested in what New Zealand Energy is doing on its conventional stuff.

    TER: What do you see for upside on its stock?

    FK: My target price is $4.50, but it's a highly risked target price based on its exploration inventory. The company has over 20 exploration locations that it could be drilling in the next 18-24 months. Where could the stock go? I have an official target and another number in my mind that might be a double of that. It's going to depend on its exploration success in the basin in a very underexplored mostly 100% working interest land base. I've looked in detail at all the prospects and I have to say it is extremely impressive. Time will tell.

    TER: Another couple of areas that haven't had much publicity or visibility are Egypt and Yemen. You cover a company that's pretty active in those two countries. What's going on there?

    FK: TransGlobe Energy Corp. (TGL:TSX; TGA:NASDAQ) is one of my favorite names right now. I've followed the company for 12 years, so I am extremely familiar with it and its management. I just came back from Egypt where the company ran an analyst trip field trip to update everybody on its properties and operations. Yemen is where TransGlobe got started. TransGlobe situated itself right beside Nexen Inc.'s (NXY:TSX; NXY:NYSE) producing Masilla field in eastern Yemen. It was directly offsetting that with a small amount of production net to it, and then on the western side of the country, right beside existing infrastructure and existing oil and gas. That production net to them, if it was all onstream, which it's not right now because of pipeline disruptions due to the tribal issues that are ongoing in Yemen, would be about 2,500 bbl/d. The company's total production today is 17 Mbbl/d roughly. So it's become much less material to it. At some point in time, it's going to divest itself of Yemen, but not at this point and, certainly, not when production is shut in. When it's producing, it spins off really good cash flow. So that's valuable for it to finance other activities.

    TransGlobe got into Egypt about four years ago when it acquired a 2,800 bbl/d field that had been undercapitalized for a number of years, doubling that field's production to about 6,000 bbl/d over time. It has also made a very significant discovery in a formation that nobody had paid any attention to, which appears to be pervasive throughout the land. Its current production is all on the Gulf of Suez within 10-20 kilometers (km) of the ocean and a very short distance to get the oil to port for export. This has been the focus of its operations, growing that production to about 17 Mbbl/d today.

    Egypt just had a bid round, which closed at the end of March. The successful bidders should be announced sometime this summer. The company has bid on all the lands around its current production, which if successful, will really set it up for a lot of future exploration and production potential. Its management team has been very conservative in running the business and it presented its roadmap to 40 Mbbl/d to the analyst and investor community in the trip to Egypt. The company's current assets are probably good enough to get it to 30 Mbbl/d. With success in the upcoming bid rounds, it's not a far cry to get to 40 Mbbl/d.

    The bid round was mostly focused in the Gulf of Suez region, but the company also acquired a number of blocks in the western desert of Egypt, which is where the big companies are operating-Apache Corp. (APA:NYSE) et al. TransGlobe has two discoveries that are going to be brought onstream-one in the middle of this year and one at the end of the year. And it's about to spud a very material exploration well in a block that it's just acquiring that is a 200 MMbbl prospect size. If that's successful, it changes the game for it all over again. I like TransGlobe because of the management, the prospect inventory and the production potential. I can't say enough good things about the company and its potential. The stock had been an absolute champ this year since mid-December, until it put out a really good first quarter and the market decided that it didn't like the company anymore and sold the stock off. I think it's a very attractive company at this valuation.

    TER: Are there any other attractive opportunities that you'd like to talk about?

    FK: One company that is an interesting one from an exploration perspective is also operating in South America, but it's offshore. That's CGX Energy Inc. (OYL:TSX.V), which I cover and have a $1.85 target price on. It just drilled a dry hole offshore Guyana that cost it $71M. It drilled that 100%. It also partners with Tullow Oil Plc (TLW:LSE) and Repsol in an adjacent block on a well that's costing $160M, of which it has 25%. It could be one well away from either being a hero or not. CGX has been around for a long time, but it's drilling in a basin where very few wells have been drilled. Tullow and Repsol are known explorationists, particularly Tullow, which has had great success around the world, offshore in this very same play type. Tullow just drilled a successful well off French Guiana. Now, it's moved into offshore Guyana in a similar basin with the same play type. Everybody has their fingers crossed, and if this well doesn't work for CGX, the share price is probably going to be reflective of very expensive wallpaper.

    TER: That's a pretty expensive bet, isn't it? Even 25% of a $160M well is a lot of money.

    FK: Yes, it is.

    TER: But on the other hand, the upside is that if it hits, the payback can be pretty quick.

    FK: Exactly right.

    TER: Based upon what you're expecting for the oil markets in the coming months and years, what investment strategies would you suggest for playing this market?

    FK: It's been a challenging market, no question. Investors should be looking at oil companies as opposed to natural gas companies, in friendly jurisdictions. I have what I call the five Ps, and I alluded to three of them: first and foremost, people; secondly, exploration prospects; thirdly, production; a very important one is profitability; and lastly, the politics, and how well they're politically connected.

    You can trade Argentinean stocks, but I'm not a fan of actually owning them for a long term. Colombia, I would own long term. It has proven itself to be a very good environment for investment.

    Similarly, Egypt is going through real political change. A lot of the things you see on the evening news and the headlines are just that, headline risk. Through the entire Arab Spring last year, TransGlobe did not lose a single day of production. It is being paid on time by the Egyptian government. Egypt relies on three things for its income. Two of those are tourism and oil and gas. So I wouldn't hesitate, despite the headline risk and the fear, to invest in quality companies in Egypt, particularly TransGlobe.

    TER: Thanks for joining us today and for some very interesting ideas.

    Frederick Kozak joined Canaccord in early 2007 and has nearly 30 years of oil and gas industry experience in his role as an oil and gas research analyst at Canaccord Genuity. Kozak previously worked as a research analyst at a Canadian boutique investment firm, where he was ranked the #3 Stock Picker for Oil and Gas in Canada for 2005 in the annual StarMine Analyst Awards. Since being at Canaccord, he has added to that award with the #3 Earnings Estimator award for 2009 and the #2 Stock Picker for 2010 for Oil and Gas in Canada, as recognized by StarMine, as well as being recognized by Zack's Investment Research as being #1 Stock Picker, North America E&P companies. Kozak started his career as a petroleum engineer and has also worked in the oil and gas industry in financial analysis and corporate planning. Kozak holds a Bachelor of Applied Science in geological engineering from the University of British Columbia and a Master of Business Administration from the Ivey School of Business at the University of Western Ontario. He is a registered professional engineer in the province of Alberta.

    Want to read more exclusive Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.

    DISCLOSURE:

    1) Zig Lambo of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.

    2) The following companies mentioned in the interview are sponsors of The Energy Report: New Zealand Energy Corp. and TransGlobe Energy Corp. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.

    3) Frederick Kozak: I personally and/or my family own shares of the following companies I mentioned in this interview: Pacific Rubiales Energy Corp., Petrominerales Ltd. and TransGlobe Energy Corp. I personally and/or my family am paid by the following companies I mentioned in this interview: None.

    4) Canaccord Genuity has in the past done business with or seeks to do business with the following companies mentioned in this report: BPZ Energy Inc., CGX Energy Inc., Gran Tierra Energy Inc., Pacific Rubiales Energy Corp., Petrominerales Ltd., New Zealand Energy Corp. and TransGlobe Energy Corp.

    Streetwise - The Energy Report is Copyright © 2012 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    The Energy Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report.

    From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110

    Petaluma, CA 94952

    Tel.: (707) 981-8204

    Fax: (707) 981-8998

    Email: jluther@streetwisereports.com

    May 31 5:35 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

  • " $FCUUF's drill results continue to define Triple R's lateral mineralization"-Haywood Securities. http://ow.ly/LVGtF
    5 days ago
  • " $RDS.A is becoming an LNG behemoth with the addition of BG's 7 Mt/year"-Pavel Molchanov. Read More: http://ow.ly/LIhVI
    Apr 16, 2015
  • " $GALXF sold its Jiangsu lithium carbonate plant for an EV of $173.2M"-RB Milestone Group. Read More: http://ow.ly/LIhlp
    Apr 16, 2015
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.