Basic Materials

Mirage Energy MRGE Stock News

Mirage Energy took back a good part of its losses from Wednesday, posting a gain of 13.04% and closing at $1.30 on Thursday. CNA Finance initiated research coverage of MRGE based on the position and opportunity for MRGE to become a key player in the growth of Mexico’s drive toward energy independence and energy price stability.

While the stock has been whipped around during this trading week, MRGE has held on tightly to its market cap that has traded well north of $400 million since the beginning of the year. What remains intriguing about MRGE is that while they are a small company when it comes to its balance sheet, investors are willing to value the company at an extremely respectable valuation. To many investors, the valuation exemplifies confidence in the belief that MRGE may, in fact, be positioned better than most any competitor looking to provide energy and storage services into Mexico.





Staying Focused On MRGE

CNA Finance Chief Research Analyst believes that MRGE is set to capitalize on several key initiatives, with the primary focus being given to the construction of the 786 BCF natural gas storage facility that may deliver shareholder value during the incremental build-out. Other potential opportunities present themselves by having several key permits either already in hand or in the pending stage, which places them in an enviable position from a competitive standpoint.




While Soulstring believes that MRGE is a long term play, he see’s the near term catalysts in place to drive the share price closer to previous 2017 highs in the $2.00 range. Although the company will need funding to complete its ambitious project, investors have shown the willingness to stand along side of veteran oilman Michael Ward, CEO of Mirage Energy. Strategic opportunities, as well as capital raises, may signal near-term dilution, but in the long run, the expense can be quickly absorbed from the customer interest in storing natural gas in the completed storage facility.

Although MRGE took back just 13% of its losses on the week, historical prices have valued the stock much higher. And, with trading patterns being relatively volatile during the past few trading sessions, Soulstring believes that once the selling subsides MRGE may quickly regain price levels of more than $1.70 per share. Returning to its long-term and historical 2017 average, Soulstring sees’s potential gains of more than 30% from Thursday’s closing price in the near-term.

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Mirage Energy MRGE Stock News

With the revival of the oil and gas exploration industry, it’s no secret that many emerging companies are finding innovative and economical ways to extract the precious minerals from the ground. What was once a game for the oligopolist giants in the industry has become a far more level playing field, allowing small and emerging companies to utilize innovative and inexpensive synergies that offer great opportunity to capitalize on either production or storage initiatives.

What hasn’t changed, though, is that the oil and gas exploration business is still a boom or bust prospect. But, even so, the rewards for success can be a thousand times greater than the loss, and opportunity is ripe for the taking on a global scale. And, speaking of the global opportunity, a particular company is putting the pieces in place to undertake one of the most ambitious multi-billion dollar mid stream projects ever to be constructed in Mexico, and you’re entitled to an introduction. Meet Mirage Energy Corporation.

Now, what MRGE is working to put in place is no run of the mill project. In fact, the uber-ambitious plan being spearheaded by longtime oilman, Michael R. Ward,won’t require his company even to purchase a pump, or use 3D seismic technology, or utilize any of the new innovative instruments that some companies are using to hedge their bets and stay away from dry holes. No, MRGE wants to do something far less risky…they simply want to store natural gas product for their customers. And, since natural gas is continuing to be brought to the surface for sale to an increasing marketplace, MRGE’s business strategy is likely to be met with strong demand. What should make the project more enticing to investors is that MRGE is attempting to do what no other company has ever done before in Mexico, and once implemented, has the potential to return to the company a billion dollar payday. Even better, the project can be duplicated by MRGE throughout the country of Mexico.

The project is expensive, but with creative financing options, MRGE expects to place the first underground natural gas storage facility inside the Mexican borders within the next eighteen months. To accomplish this aggressive pace of construction, MRGE needs permits, and it’s assuring to note that MRGE has nearly all of the permits ready to file. And, with these allowances lining up for project commencement in late 2017, MRGE’s historic project may reap enormous benefit from its almost three-quarters of a billion BCF gas storage unit that producers have shown tremendous interest in using. So much so, that MRGE has told the markets that the completed storage unit is expected to be fully leased based on current interest.

The project isn’t simple, but the company is well on their way to fulfilling their objective by taking advantage of strong relationships within the Mexican regulatory agencies and from expertise provided by a host of reliable and well-respected industry contractors. If all plays out according to plan, MRGE is expected to have the project completed by late 2018 – and, here’s how the project should flow.

What’s in the Pipeline?

Before we get into the details, allow me to provide a summary of what the company plans to do, and why it has the potential to return a huge profit for investors. As stated earlier, MRGE intends to construct a massive natural gas storage facility in Mexico, allowing the company to provide a much-needed service to producers and suppliers of natural gas. The project is scheduled to construct an initial underground storage field, with capacity set to house 52 BCF of natural gas in the first phase of the project. Upon completion, storage capacity is expected to house roughly 786 BCF, making it one of the largest natural gas storage facilities of its kind. The scope of the project provides for an integrated pipeline that can transfer and store natural gas for any entity willing to pay the storage fee, making it both accessible and available to any production or supply company. The transmission pipelines, which deliver the gas, are being designed to add 800 mmcf per day into Mexico. This increase is necessary because currently less than 70% of Mexico’s consumption of natural gas is produced in the country, making the market unstable and potentially prone to disruption for its infrastructure requirements. What MRGE is looking to do, besides creating significant shareholder value, is to provide a means for Mexico to secure itself with energy security and stability by allowing for reserve replacement and price effective marketing.

The MRGE project should pique the interest of those with an understanding of Mexico’s current economic climate, as the country’s government is working to improve self-stability and growth in the wake of rising US import costs. Fearing a dependence on US natural gas imports, Enrique Peña Nieto, the president of Mexico, has passed eleven national reforms to strengthen the country’s self-sufficient capabilities. Mexico plans to invest over 170 billion pesos (roughly $9.6 billion USD) into over 10,000 kilometers of new pipelines during the next few years, a plan designed to accommodate the country’s continuously increasing supply of natural gasses. Projections site that natural gas needs are expected to rise to 10,400 million cubic feet (mcf) in 2025 from the current 5,700 mcf. With all this in mind, investors should be able to see that projects focused on natural gas opportunities in Mexico are ripe for the taking, and MRGE has entered the sector at a fitting time.

Now, MRGE may have taken on an ambitious strategy to build this facility, but the company management does have the skill to back up their plans. The company’s President and CEO, Michael R. Ward, has over 45 years of experience in the oil field and has laid down a solid foundation for the upcoming years at Mirage Energy Corporation. Well in the process, MRGE is close to securing all necessary permits through Mexico’s regulatory agencies for natural gas storage and expects to receive final approval to begin construction by the last quarter of 2017. Already, MRGE has been steadily acquiring the required documents to file by working through the administrative procedures with CNH, CENAGAS, SENER, and CRE, the governing oversight which all play a crucial role in granting permission for the project to commence.

The company has also already started work on structural procurement and plans to continue doing so for the next few months. Of course, the process of building a natural gas storage facility requires a substantial sum of cash, and CEO Michael R.Ward has already set numerous plans in motion to help MRGE secure an adequate supply of funding to realize the company’s goal without any unexpected setbacks. For example, the company is likely to see funds coming in through new partnerships or working interests that may become likely later in the construction schedule; Ward has even spoken about laying off some of his ownership of the company as collateral should it prove necessary.

Start-Up Plans In September of 2017

Construction, estimated to commence in September of 2017, is the next step in MRGE’s playbook. The company has selected six preferred contractors and is in the process of negotiating the most beneficial contract to maximize profit. Each contractor that MRGE has engaged is experienced and well-respected in the business, specializing in pipeline and industrial plant construction. Exterran, one of the company’s top choices, is well known as a premier contractor in the industry. Headquartered in Houston, Texas, Exterran offers solutions to nearly all of MRGE’s construction needs, from the pipeline to the facility. Arendal, another preferred contractor to MRGE, is a respected contractor headquartered in Monterrey, Nuevo León. Having participated in over 63% of pipelines built in the last ten years, Arendal is committed to developing Mexico’s energy infrastructure through their construction of pipelines, industrial plants, and other civil works. Along with these two companies, MRGE also has a slew of subcontractors, and other vendors to choose from should additional services prove necessary. However, regardless of who MRGE continues to work with, the options in place provide confidence in allowing the company to complete their project plans in line with their aggressive schedule.

Clearly, Mirage Energy is a small company with massive plans, which is a combination that may raise the eyebrows of many investors. But, as shown by their detailed timeline and already considerable progress, MRGE knows what they are doing, and are dedicated to action. And, if everything continues to fall into place for MRGE, profit for the company and investors could be substantial.

Ambition Plus Demand Equals Enormous Potential

Taking the sum of the parts, the project by MRGE may seem mighty ambitious for a small company. But, in actuality, MRGE may have found the right niche, the right country to pitch the plan, and a customer base that is eager to use the facility. Investors who failed to recognize oil field ingenuity have lost many historic paydays, and not taking MRGE seriously may again lead to missed investment windfalls. No, this deal is not a sure thing, but, investors who have been around for awhile have learned to not judge an investment from its name only, but to look beneath the surface of a deal to see hidden opportunity that can return gains along the way.

Perhaps that is what is intriguing about this deal. With MRGE already well into the licensing process in Mexico, the company opens itself up to partnership opportunity from much larger players that join the vision and understand the potential of the completed project. Keeping in mind that this is only the first storage facility planned, the revenue opportunity can grow exponentially when accounting for potential future development. With company management having the ability to make deals and incorporate creative ways to finance the project, chances lay in favor of MRGE completing the storage project. Once done, it becomes a cash cow, and managing a facility has far less risk than owning a rig, pump, or a fracking drill. All in all, investors who believe that MRGE can raise the capital, either through partnership, leverage, or capital raises, should find an investment into MRGE a potentially lucrative opportunity. For those who usually watch from the sidelines, the view may get somewhat frustrating, especially when pieces of this project begin to come together in a meaningful manner.

Avoiding ambitious projects remains a mainstay to investors with a conservative investment style. However, for those who keep a portion of their investment dollars set aside for high-risk, high-reward opportunities, MRGE may be the ideal candidate to deliver exponential gains. But, as with all investments, only risk what you can afford to do without, and always stay apprised of news and company developments. With the MRGE project set to undertake multiple phases before completion, investors can expect to be kept informed on project milestones, allowing for accretive gains in shareholder value along the way.

Disclaimer- CNA Finance is NOT an Investment Advisor. Our goal is to bring both news and under discovered stocks to the attention of investors to assist in making smart decisions in the market. CNA Finance is a for profit company. That profit is generated through three (3) different types of relationships. First and foremost, we work with pay per click and CPM advertisers on banners. We also have affiliate relationships with various companies where we earn a portion of the sales we refer. Finally, we may have relationships with some of the companies or IR firms that represent companies mentioned within our works in which we are compensated in cash and or stock for consulting, investor relations, and Press Release services. World Wide Holdings paid CNA Finance $3,000 to hire Perceptive Analytics for research and writing services as well as other investor relations services provided to Mirage Energy by CNA Finance. All information researched and provided through any article associated with Mirage Energy and published on CNA Finance is public information that is documented and available upon request. CNA Finance encourages all investors to seek professional advice before making any investment decision.

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Freeport-McMoRan Inc FCX Stock News

Freeport-McMoRan Inc (NYSE: FCX) is off to an incredibly strong start to the trading session today, and for good reason. The company reported earnings, and while EPS came in slightly lower than expected, strong revenue is proving to be a source of excitement among investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:36), FCX is trading at $14.57 per share after a gain of $1.61 per share or 12.42% thus far today.





FCX Gains On Strong Earnings

As mentioned above, Freeport-McMoRan is having an incredibly strong day in the market today after releasing its results for the second quarter. While earnings slightly missed their mark, investors seem to have a keen focus on revenue, which proved to be positive. Here’s what we saw from the report…




  • Earnings Per Share – When it comes to earnings per share, FCX didn’t have the best quarter in the world. During Q2, analysts expected that the company would generate $0.20 per share in earnings. However, the company missed the mark by $0.03, reporting earnings per share in the amount of $0.17.
  • Revenue – Although revenue didn’t quite hit the mark for the second quarter, FCX did incredibly well when it came to top-line revenue. During the quarter, analysts expected that the mining company would generate revenue in the amount of $3.66 billion. However, the company actually generated revenue in the amount of $3.71 billion, topping expectations.

Another big factor here is copper prices. While the company did reduce its guidance with regard to the total amount of copper it plans on producing throughout the year, that is likely to largely be offset by an increase in prices. This increase is being caused by a mix between a weak USD and growing copper demand in China.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on FCX. In particular, we’re interested in following copper prices, as gains there seem to be the primary driver of gains in the stock to come. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Gevo, Inc. GEVO Stock News

Gevo, Inc. (NASDAQ: GEVO) is having a great day in the market thus far today, and for good reason. The company announced that its isobutanol is now ready for licensing. Of course, this led to excitement among investors, prompting gains in the stock and leading to an alert from our partners at Trade Ideas. At the moment (10:03), GEVO is trading at $0.79 per share after a gain of $0.07 per share (9.03%) thus far today.





GEVO Announces Isobutanol Licensing Availability

As mentioned above, Gevo is having an incredibly strong day in the market today after a key announcement that was made at the BIO World Congress on Industrial Biotechnology in Montreal, Canada. Praj and Gevo jointly announced that isobutanol technology will now be available for licensing to processors of sugar cane juice and molasses.




In the Gevo’s technology using sugar cane and molasses feedstocks. This led to the development and process design package that is now available for commercialization of cane juice and molasses-based ethanol plants. It is expected that this licensing will be focused on Praj plants that are located in India, South America, and Southeast Asia. The initial capacity under the agreement is targeted to come online between 2019 and 2020. In a statement, Dr. Patrick Gruber, CEO at GEVO, had the following to offer:

We are pleased with the work that Praj has done in adapting our technology using cane juice and molasses as feedstocks. Praj is a great partner who shares our vision of low carbon fuels made from sugars in high yields. Praj has a massive footprint across the world. We look forward to working with Praj to license the technology out, leveraging their access and capabilities…”

The above statement was followed up by Pramod Choudhari, Executive Chairman at Praj. Here’s what he had to say:

We are excited to offer this technology to our global customers who stand to benefit from an additional revenue stream from isobutanol. Praj has worked on 750 projects for ethanol plants across 75 countries. This isobutanol platform can be offered as ‘bolt-on’ to an existing ethanol plant or as a greenfield plant. This isobutanol technology is the latest addition to Praj’s diverse product portfolio and reinforces our organization’s leadership in the bioenergy space.”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on GEVO. In particular, we’re interested in watching to see how the agreement with Praj turns into revenue and profits as the isobutanol technology is licensed out. We’ll continue to follow the story closely and bring the news to you as it breaks!

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AK Steel Holding Corporation AKS Stock News

AK Steel Holding Corporation (NYSE: AKS) is having an overwhelmingly strong day in the market today, and for good reason. The company announced earnings, proving to have a much better quarter than expected. This led to excitement among investors, causing gains and prompting our partners at Trade Ideas to alert us to the movement. At the moment (9:49), AKS is trading at $6.62 per share after a gain of $0.59 per share or 9.87% thus far today.





AKS Reports Strong Earnings

As mentioned above, AK Steel is having an overwhelmingly strong start to the trading session this morning after reporting earnings for the second quarter. Here’s what we saw from the report…




  • Revenue – In terms of revenue, AKS did incredibly well. During the quarter, analysts expected that the company would generate revenue in the amount of $1.46 billion. However, the company actually generated revenue in the amount of $1.56 billion. Not only did that beat estimates by $10 million, but it also proved to be a 4.7% year over year gain.
  • Earnings – Earnings was another area where AKS definitely did not disappoint. During the quarter, analysts expected that the company would generate earnings in the amount of $0.12 per share. However, the company actually reported earnings in the amount of $0.19 per share.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on AKS. In particular, we’re interested in watching to see if the growth will continue. While shipments were down, the company was able to leverage pricing and bring the growth. We’re excited to see if this will continue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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U.S. Gold Corp. USAU Stock News

At the end of last week (at session close on July 13, 2017), U.S. Gold Corp. (NASDAQ:USAU) management hosted a live webinar. Hosted by the company’s President and CEO, Edward Karr, the webinar was set up to outline a number of key recent developments and to discuss how these developments play into US Gold Corp’s strategy going forward.

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Since the webinar took place, the company’s share price is up close to 20%. This suggests market interpretation of US Gold Corp’s recent activity, coupled with management’s plans to leverage recent notable operational advances, is positive and indicative of further upside strength as the company matures along its strategic development pathway.

With this in mind, here’s a look at the highlights of the webinar and why the company is gaining strength on the back of its release.


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A quick introduction to the company

For those new to this company, US Gold Corp (NASDAQ:USAU) is a Nevada based mining and exploration company. It’s got two primary projects in its roster as things stand, Keystone and Copper King, both of which we will get to in a little more detail shortly. Management consists of the above-noted Karr, an investment banker who sits on the Board of Directors at numerous natural resource companies in the US and internationally; Head of Exploration Dave Mathewson, who most recently discovered and developed a number of producing resources at Gold Standard Ventures Corp (GSV) and who previously headed up the development of some of Nevada’s biggest deposits in his role at Newmont Mining Corporation (NEM); and Operations Manager Neil Whitmer, who also worked with Mathewson at Gold Standard Ventures and has a background in law and land acquisition.

The presentation – an introduction and a takeaway

It kicked off with a top down look at the two primary assets, the above-noted Keystone and Copper King. Included in the Keystone section was a second property called Gold Bar North (GBN), which is – again – something that we’ll zoom in on in a little more detail later on in this discussion.

For now, it’s enough to say that Keystone is a gold mining project located along the Cortez trend in Nevada, which is a trend that has repeatedly proven its worth as a viable production region for some of the biggest names in the sector – Barrick, Newmont and more – all of which are currently mining deposits that are producing in excess of a million ounces of gold annually.

The Copper King project is located in Wyoming (very close to the Nevada border, but Wyoming nonetheless) and is a far more advanced property in terms of development than its Keystone counterpart. It’s a copper mine, which isn’t surprising given its name, and it’s already got a completed Preliminary Economic Assessment (PEA) in place.

The key takeaway from these early introductions to the projects is that the company is diversified across two stages of development – one being an early stage blue sky type project that is likely going to account for the vast majority of forward valuation and the other a more run of the mill project, but one that is far more advanced along its development pathway and has the potential to provide bread and butter type revenues for the company as it pushed for the blockbuster return on its Keystone project.

In other words, one project to provide long term high-level returns, a second to provide lower, but steady revenues to help fund the former.

The projects in detail – Keystone

Moving on, the presentation then looked at these two projects in a little more detail and injected some numbers into the equation.

First up, Keystone.

The company noted that the project resides well within what is generally regarded as the Nevada Elephant County, within a large mining and processing infrastructure that includes numerous >20-million-ounce gold deposits. This, of course, far from guarantees Keystone this degree of a resource count but it does serve to strengthen the chances of the company uncovering rich mineralization based on the geographical proximity (and, in turn, the geological similarities) between Keystone and its surrounding deposits. So of the more notable of these are Cortez Hills, Battle Creek, Railroad, Pinion and Gold Bar (note: not the Gold Bar North referenced above).

Keystone – geology

Looking at the geology, the project is what’s called a tertiary, intrusive centered dome formation, with a permissive carbonate lower-plate window. As noted, this geology has strong similarities to some of the surrounding deposits and a key near term strategy for Keystone and its exploration team is demonstrating that this similarity can translate to mineable mineralization.

Keystone – exploration

There has never been systematic modern-day, model-driven exploration undertaken at the location and US Gold Corp is currently making strides towards fixing this shortfall. The company has just completed a district-wide, 2800 station, detailed gravity survey and the interpretation of this study is going to inform the exploratory program as it moves forward.

So the exploration programs at the site have been limited to date, but what can these limited programs reveal about Keystone’s potential?

Keystone – the data

A look at the limited historical data reveals that High grade and thick intercepts of gold have been encountered in what has generally amounted to very shallow historical drilling. The image below is a snapshot from the presentation, detailing some of the locations and grades within the project:

source

And here’s a quote from Mathewson (the above mentioned Head of Exploration who spearheaded Elephant-sized discoveries in this very trend while at Newmont):

“(Keystone is) … The best exploration project I have seen in my career… reminds me of the Railroad project on steroids”

For reference, Railroad is one of the now producing deposits he worked to explore and develop through to production while at Gold Standard Ventures.

As far as exploration progress is concerned, the company has completed five scout drill holes and intends to drill a couple more before the end of this year. There’s also plans to drill three exploratory holes within a close proximity to one of the scout holes (a hole called KEY16-03c) during 2017.

Gold Bar North

Touching briefly on the Gold Bar North deposit, then, this is an extension of the Keystone district to the South that was recently acquired and adds 49 lode claims to the total district-wide claim count. It’s geologically similar to the Gold Bar deposit that McEwen Mining Inc. (MUX) is about to start mining (which, in turn, lies just south of Gold Bar North) and looks like a promising addition to the company’s claims in the region. It seems to be a shallower opportunity than the primary deposits at Keystone, meaning it may be a more economical program from cost perspective longer term.

Just as is the case with Keystone, the company plans to conduct some exploratory drill target identification at the project throughout 2017 and then move onto a drilling program designed to establish resource estimate.

The projects in detail – Copper King

So that’s Keystone. Let’s move on to Copper King.

This one, as alluded to earlier, is a development stage gold and copper and gold project located in southeast Wyoming, 20 miles west of Cheyenne. It has shown considerable promise on the back of a range of historic programs and, since 1938, at least nine historic drilling campaigns by seven companies plus the U.S. Bureau of Mines have been conducted, with drilling by five different operators since 1970 confirming said mineralization. It’s also located entirely on state land making the process of picking up permitting for future production far cheaper and easier than it otherwise might be.

Copper King – PEA

From the PEA that’s already been conducted, we’ve got a far more detailed idea of what this deposit holds in terms of copper and gold resources than we do for gold at the Keystone project. The base case for the resource suggests a 17 year projected mine life, with around 34,000 ounces’ gold per year and 8.8 million lbs. copper per year. Based on a $104 million CAPEX requirement and a $273 million net cash flow (and assuming gold prices at $1,100 and copper at $3.00), pointing to a net present value of $159.5 million (at a 5% discount rate).

The forward plan for this one is rooted in the bringing of the PEA up to date and then, once the updated estimates are in place, the on-boarding of a team that can carry the project forward while Mathewson and his team focus on Keystone and GBN.

That just about sums up the operational side of the presentation and brings readers up to date with the company, its projects, and its forward strategy as far as the advancing of these projects towards production is concerned.

Some company metrics

US Gold Corp (NASDAQ:USAU) completed an $11.92 million equity offering back in October last year and – subsequent to this offering – had cash on hand of a little over $7.58 million at January 31, 2017. This cash means the company is fully funded from an exploration perspective throughout 2017, removing any near term dilution risk.

At last count, US Gold Corp traded for a market capitalization was $29.2 million based on a share price of $2.65.

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U.S. Cobalt USCO Stock News

US Cobalt Inc (CVE: USCO)

More often than not, investors remain oblivious to many of the most promising investment opportunities of the times. Unfortunately, even the most obvious of opportunities can get overshadowed by hot news stories or over-hyped achievements, leaving the most opportune investments unnoticed or ignored, even when the markets associated with that trade are ripping higher. (OTC: SCTFF) (USCO.V)

For some investors, too much time is spent focusing and investing on the media hype, placing stakes in the covered companies that often are involved in some six-degree financial association with the network or its affiliates. While those investors rely on the self-professed wisdom of the talking heads, the astute investors look elsewhere and work hard to find the emerging companies that are primed to deliver substantial gains. For the fast buck investor, following the smart investors take more time and diligence, so for the most, taking the natural approach and listening to paid commentary is their quickest means to compile investment ideas. But, while following the herd can lead to returns if the timing is right, it’s the investors that find and take advantage of emerging companies and markets that usually realize the greatest gains. And, that’s the style that my team follows.

The world we live in is evolving rapidly, and understanding where the direction is leading plays just as important of a role as knowing where we are standing today. In that respect, while returns get made from investments that focus on traditional commodities like gold, silver, and oil, they leave out the obvious that will undoubtedly play an integral role in the future of the worldwide economy. And, this multi-billion dollar opportunity is summarized in a single word: Cobalt.

Cobalt is a tradeable metals commodity as are the precious metals. However, unlike gold and silver, which have both industrial and aesthetic value, cobalt has quietly positioned itself to become one of the hottest and most sought after industrial use products of our generation. While understanding the significance of cobalt itself is important, investors also need to focus attention to where the opportunities to profit from cobalt-related investments exist. Finding potential in unknown or emerging companies, and then taking appropriate action to capitalize on that potential is vital to investment success. And, as it stands, investors have a unique and almost ground floor opportunity to seize an opportunity in the cobalt related trade that can potentially deliver superior investment results. That’s why when the time came to find a company that is well-positioned to take advantage of the spiking, global cobalt market, smart investors were led right into the corner of U.S. Cobalt Inc (USCO.V) (OTC: SCTFF).

Acting On Cobalt Opportunity Now

It’s no secret that I spend a good amount of my investment research time trying to find and introduce emerging companies that have positioned themselves to generate substantial growth in the near term. When the idea of investing in cobalt attracted my attention, I began to dig into the matter and found U.S. Cobalt, an emerging, and stable company that trades under ticker symbol USCO. From what the company has told the markets, many investors believe that USCO is not only undervalued but is simultaneously positioned to capitalize on and command a significant portion of the rising demand in the cobalt market.

Now, many may still be wondering: what is the primary use of Cobalt? Although most people may now know that the sought-after metal is a critical component in the making of rechargeable batteries utilized by the likes of Tesla, Apple, and Samsung, they may not be aware that cobalt demand is also growing in several additional high-profile industrial markets. The diversified cobalt demand story becomes more compelling because even though most investors are well aware of the growth in the EV market, few are paying enough attention to the enormous need of cobalt to serve the rechargeable battery market that serves a tremendous number of products in the technology and services sector. These industries will need tons of the metal just to keep pace with the current demand of new devices and products.

U.S. Cobalt Inc. has risen to the top of the focus list at many investment desks, not only because of its growing asset base, but because of the leadership team that is heading the charge toward capitalizing on this billion dollar market opportunity. Led by Wayne Tisdale, an incredibly successful investor who has delivered over $2.5 billion to investors through his recognition of undervalued opportunities, USCO is one of the few North American companies positioned to become a significant contributor and supplier of cobalt to the market. At USCO, recognizing the opportunity is only the first step; acting on that opportunity is the critical component. The progress that is gaining momentum at USCO originates from the fact that the leadership team is acutely aware of industry trends, the need to acquire and develop the right assets, and the necessity to surround themselves with a team of professionals to guide the company forward in an aggressive but orderly fashion.

Following alongside Wayne Tisdale may not be a bad idea, especially when investors account for his track record of success. In 2015, for instance, he helped start a company named Pure Energy to take advantage of the spiking lithium market that was then pricing the metal at roughly $5,000 per ton. Getting in early paid off, as lithium prices skyrocketed to over $23,000 per ton within the next two years, providing Pure Energy with substantial gains in share price. The spike in prices did more than just allow Pure Energy and its investors to reap the benefits – the price increases triggered a modern day rush to create new lithium companies, which drove prices well upwards of 1000% higher in some markets. The price of lithium went up for a couple of reasons. First, the mad dash to get into the market caused investors to speculate on increased price traction for the product. Second, and more applicable to the case of USCO, prices skyrocketed because investors understood the importance of the metal in the EV market. Now, USCO believes that a similar bull case, which follows the lithium dynamic, can be made for cobalt.

The good news for investors may be that the demand of industrial-grade cobalt may still be an under-the-radar proposition to many traders, keeping the metal’s prices relatively tame with increases of only 20%-30% during the past 6 months. While those gains are respectable, they remain in sharp contrast to what lithium did, and the USCO management team believes that significant profit potential is for the taking, which is why they are by taking swift advantage of a cobalt market that is expected to grow significantly during the next few decades. Not all investors are naive to the massive demand increases that the cobalt market is experiencing. Several investment funds, including Pala Investments and China’s Shanghai Chaos, have been active in the market, purchasing and storing the metal as both a speculative and market driven strategy, amassing an estimated 6,000 tons of cobalt during the previous five years that now has an estimated market value more than $300 million. Thus, while the cobalt market has been relatively tame regarding price increases, it is only a short matter of time before those that control the major stockpiles make it a media buzzword and start the bidding wars.

The USCO Difference

For those that do some research on the uses for cobalt, it’s apparent that the market is growing rapidly. But, it’s up to investors to discover which companies are best positioned to deliver substantial returns on investment. With an estimated 60% of the global cobalt supply coming from the Democratic Republic of Congo (DRC), investors need to understand that an undercurrent to that DRC supply chain finds itself mired in what numerous reports cite as “unethical” production. Child labor issues are only one aspect of the DRC product. Complaints of worker death and almost slave-like conditions are reported and documented by Sky News and The Washington Post. Similar to “blood diamonds’, the industry is beginning to take sharp notice of the inhumane treatment at these mines, and companies like USCO are attracting increased interest for the need of a viable alternative to purchasing DRC product. Despite higher prices, companies like Tesla, Panasonic, Renault, and other significant users of cobalt have no choice but to take notice of the market and focus their trade to companiesoutside the DRCwhich provide premium grade cobalt while at the same time using ethical mining practices. Perhaps with so much attention now being directed toward the labor practices in the DRC, companies may have little choice but to accept the fact that inexpensive cobalt produced at the detriment of human life is becoming less of an option. With activist groups scrutinizing the markets and business practices of both publicly traded and private companies, supply choices may become a public issue and a potential liability to companies that support unethical mining.

The USCO difference is far more robust than just ensuring fair labor practices. The company is buildingan asset baseto help address a market which is expected to be substantially larger than both solar and wind power alternatives. Noting that solar and wind have production and storage limitations depending on the climate conditions,lithium0ion batteriesare relatively immune from such disruptions. With cobalt being an essential component that allows batteries to store energy, its use in batteries is diversified with applications in the home, automobiles, electronics, and recreational markets. See, it’s not just EV manufacturers, it’s a vast market that has an almost limitless use. As the debate about the use of fossil fuel continues to take center stage on a global scale, the interest in rechargeable batteries continues to grow and gain market acceptance as a reliable and efficient alternative to hard burning fuels.

As an exploration company, USCO is intent on securing assets thatwill allow them to contribute production-grade cobalt to the market. Although the rechargeable battery market has now grabbed almost 50% of the market share for available cobalt, the metal is also essential in supporting the production of magnets, pigments, super-alloys, and use in pneumatic systems. The industrial attraction to cobalt is enhanced by the metal’s high melting point of over 1495°C, which makes it ideal for industrial applications due to its ability to retain strength at extreme temperatures. Hence, the demand and market for cobalt are expected to experience exponential growth due to the relatively limited supply of cobalt available. Certainly, the supply/demand issues bode well for USCO.

Although not provided much attention, demand for cobalt has already exploded, withover 100,000 tons mined and sold in 2015 to a current market that is approaching 200,000 tons of demand. Estimates point to continued demand growth, with anticipated demand to eclipse 500,000 tons within the next fifteen years. As investors know, demand spurs price, and when supply is limited, it often causes a market frenzy. Additionally, with no sign of a workaround when it comes to using cobalt in producing rechargeable batteries, USCO may be positioned to benefit for decades from their current production projects.

In fact, as the demand continues to rise, production is not keeping pace. Historically, cobalt forms alongside copper, and due to depressed copper markets, the mining operations have been slowed or even stopped entirely as production cost outweighs the market price. In turn, an estimated 10% of worldwide cobalt production is currently offline, making USCO’s positioneven more valuable.

USCO and Iron Creek

The need for cobalt is attracting worldwide attention, and production in the United States currently only accounts for less than 1% of global supply. Other than the DRC, which claims over 50% of the 2016 total production of 124,000 tons, the combined production from China, Canada, Russia, Australia, and the United States account for less than 24% of last year’s total output. Thus, noting the issues facing the DRC product, USCO’s opportunity is strengthened, and they are taking advantage of the opportunity in the Cobalt Belt, located in the United States.

Recognizing inherent production value, investors are looking to USCO’s Iron Creek Cobalt Project. . Located in Central Idaho, the USCO property spans more than 1600 acres of both patented and unpatented claims. Although historical claim assessments on the property should not be relied upon as currently accurate, Historical, non 43-101 compliant reports show the project has the potential to yield over 1.3 million tons of .59% cobalt. The USCO claims, located in the Idaho Cobalt Belt, were first discovered in 1940 and served as both an iron and copper producing mine. Explored and mined vigorously, the exploration area encompasses over 30,000 feet of deep diamond drilling and an additional 1,500 feet of completed underground drilling done previously.

USCO’s initial drill program is targeting high-grade underground cobalt which previous non 43-101 compliant reports indicatemore than one million tons of potential reserves grading .59%. The second region istargeting 229,000 tons ofsimilar grading material. Increasing the value, the historical grade of the projectis higher in quality compared to many other cobalt mining projects in North America.

The focus toward EV production is taking center stage. With companies like Tesla, Ford, and General Motors being forced to look for alternative sources of cobalt due to the controversies of DRC production, many are needing to make proactive decisions as to how to best secure cobalt with minimal production disruption. Tesla’s first Gigafactory, for instance, will require between 5,000 – 10,000 tons of cobalt annually once it begins to operate at full capacity. But, this cobalt requirement is only Tesla’s need, so USCO investors should embrace the fact that a significant number of additional manufacturers will be scrambling to ensure substantial cobalt supply. Because of the potential run for the metal, the cobalt market should see its deserved rise, especially if these same companies increase production or begin new projects that require the use of rechargeable battery powered vehicles or products. The lack of potential supply then begs the question, where will the supply originate?That is what USCO is banking upon.

As the USCO story unfolds, it’s apparent that USCO is well positioned.While the historic resource assessments of the Iron Creek project is reported to be roughly 1.3 million tons, USCO believes that the property may contain upwards of 10 million tons, which would make the market cap of USCO ridiculously low. In fact, even at the historical assessment level of an estimated 1.3 million tons, the current market cap of USCO is arguably significantly undervalued. Taking into account that USCO is fully funded to complete their entire 2017 exploration program, and the valuation becomes even more ridiculous. The mispricing is even more conspicuous when USCO gets compared to a company like eCobalt, who operates a property that is only twenty-fivemiles away from the Iron Creek project but sports a market cap of approximately $170 million, trading in a range of between 46 cents and $1.48 per share. For some reason, the markets have provided eCobalt with a substantial market cap premium that is roughly 385% higher than that of USCO. However, many believe that the valuation disparity will soon correct itself, and USCO will close the gap to the upside for a good reason.

USCO’s market cap of just $35 million appears to not factor inmuch value from the Iron Creek project, nor does the valuation pay attention to the strong current financial position of the company. For these reasons alone, this undervalued stock may soon find refuge in a valuation that recognizes the full potential of USCO to deliver on multiple fronts.

With just over 51 million shares outstanding, and a fully diluted count at approximately 63 million shares, USCO can generate substantial shareholder value once its production grade cobalt begins to reach the market. Insider ownership is high which aligns insider interest with that of the company’s shareholders, and also provides confidence that decisions made by management during production and expansion initiatives will get ratified with all shareholders in mind.

Mining For Value

While the current share price of USCO may reflect a micro-cap valuation, the company is in an entirely different class than most companies with similar market caps. Not only is the company managed by a remarkably successful executive team, but USCO has also capitalized on the perfect storm of opportunity. If the market provides a value similar to eCobalt, gains of more than 400% may be realized on that measure alone. Factor in historical reserve value and that multiple can be significantly higher. And, if the market wants to truly get into “valuation sync” with USCO, then it should apply value to some of the blue sky potentials which could ideally deliver a reserve of 10 million tons.

What is reassuring about USCO is that the demand for cobalt is not slowing down, and even if the company were to experience production delays, the value of their reserves would likely rise as supply remains tight. Investors should also keep an eye on the issues out of the DRC, as the inhumane work conditions continue to push companies toward suppliers with more ethical means of production. Just as the diamond industry underwent a significant shift in its supply chain due to unethical mining practices, investors tracking cobalt may experience the same change, which would be hugely beneficial to the market value at USCO based on the loss of DRC supply to the market. While those in the industry do not expect that the DRC will be completely shut out of the market, many expect that their market share will continue to shrink as more attention gets placed on the practices employed at many of their mining operations. Also important to note, if investors believe that North American competition is likely to emerge against USCO, think again. The likelihood for any company to get through the permit cycle within the next few years is extremely unlikely, which bolsters the market position of USCO even further.

Currently, USCO is small, but they may grow into a powerful player within the next twelve months. With drilling permits secure, and with cobalt demand set to skyrocket, this emerging company may provide investors with an opportunity that is hedged by consumer demand and technological reliance. Well managed and funded, USCO may very well become the North American star of cobalt production.

Disclaimer- CNA Finance is NOT an Investment Advisor. Our goal is to bring both news and under discovered stocks to the attention of investors to assist in making smart decisions in the market. CNA Finance is a for profit company. That profit is generated through three (3) different types of relationships. First and foremost, we work with pay per click and CPM advertisers on banners. We also have affiliate relationships with various companies where we earn a portion of the sales we refer. Finally, we may have relationships with some of the companies or IR firms that represent companies mentioned within our works in which we are compensated in cash and or stock for consulting, investor relations, and Press Release services. World Wide Holdings paid CNA Finance $3,000 to hire Perceptive Analytics for research and writing services as well as other investor relations services provided to U.S. Cobalt by CNA Finance. All information researched and provided through any article associated with U.S. Cobalt and published on CNA Finance is public information that is documented and available upon request. CNA Finance encourages all investors to seek professional advice before making any investment decision.

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Camber Energy Inc CEI Stock News

Camber Energy Inc (NYSEMKT: CEI) is having an incredible day in the market today. However, if you look at company specific news, well, there isn’t any. So, why is CEI finding its way toward the top? Before we get into that, we’d like to thank our partners at Trade Ideas for being the first to alert us to the gains. At the moment (11:18), CEI is trading at $0.37 per share after a gain of $0.06 per share or 18.64% thus far today.





CEI Gains As Natural Gas Prices Head Up

The reason for the gains we’re seeing on CEI at the moment is a relatively simple one. First and foremost, it starts with the company’s flagship product, natural gas. You see, natural gas was on a losing streak in the market for a while. However, that seems to be changing, and in a big way. Last week, the price of the commodity started to find its way upward.




Of course, because Camber Energy focuses largely on natural gas liquids, it only makes sense that when the price of natural gas finds its way up, so too does the stock. After all, with the price of the commodity higher, the profits that CEI generates from the commodity climb.

From there, it was only a matter of traders. Essentially, traders realized that there were profits to be made surrounding the stock. With the idea of profits in the minds of traders, the gains ultimately became a self-fulfilling prophecy. As the profits continue to grow, traders continued pushing the value of the stock higher, leading to the overwhelmingly strong day the stock is enjoying thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on CEI and the natural gas sector as a whole. As we near winter time, demand for the commodity is only going to climb, which will likely translate into gains for the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Amyris Inc AMRS Stock News

Amyris Inc (NASDAQ: AMRS) is off to an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a product development and production agreement. Of course, this is leading to excitement among investors, causing gains and prompting our friends at Trade Ideas to alert us to the movement. At the moment (10:15), AMRS is trading at $3.64 per share after a gain of $0.25 per share (7.37%) thus far today.





AMRS Enters Product Development And Production Agreement

As mentioned above, Amyris is having a strong day in the market today after announcing that it has entered into its first product development and production agreement with Koninklijke DSM N.V. The company is a global science-based company active in the health, nutrition, and materials sector. The goal of the partnership is to develop a food and nutrition molecule for which DSM is a major market provider.




This comes shortly following a previously announced equity investment that DSM is making into AMRS. Part of this investment is that the companies have agreed to work together on several short- to medium-term product development and production opportunities and the vitamins and other nutritional ingredients industries. As such, the development and production agreement that was announced today is expected to be the first of several agreements to come.

Under this particular agreement, DSM has agreed to fund the development of the technology AMRS needs in order to produce the specific molecule. The molecule will be supplied long term through AMRS in order to provide improved performance. In a statement, John Melo, President and CEO at AMRS, had the following to offer:

We are very excited to partner with DSM on our first product development and production agreement… This is the first of what are expected to be several highly disruptive products addressing major markets where, together, we can leverage Amyris’s technology platform to reduce cost for products DSM then takes to market in a cost-advantaged position.”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on AMRS. In particular, we’ll be watching the productivity surrounding the agreement that was announced today and we’re excited to learn of the new agreements that will be coming down the line relatively soon. We’ll continue to follow the story closely and bring the news to you as it breaks!

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Northern Dynasty Minerals Ltd NAK Stock News

Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is off to an incredibly strong day in the market today after a message to shareholders on short selling was sent. Before we get into this, I’d like to say that those who short a great stock like NAK should be beaten senseless. However, current laws will not allow us to feed these idiots their teeth. Nonetheless, there is a way that those who truly believe in Northern Dynasty Minerals can exact revenge. We’ll talk about that in a second. Before we do, a quick thanks goes out to our partners at Trade Ideas for being the first to alert us to the gains. At the moment (12:01), NAK is trading at $1.46 per share after a gain of $0.11 per share (7.78%).





A Note From NAK President And CEO Ron Thiessen

First and foremost, let’s start with the note that was sent to shareholders by Northern Dynasty Minerals President and CEO Ron Thiessen. The note from NAK management reads as follows:




Dear fellow shareholder,

Based on recent inquiries and feedback received, we are taking this opportunity to provide information that we hope assists in providing transparency on the mechanics of short selling.

Public companies cannot prevent short selling because it is legal. However, to legally short sell a stock the short seller must first borrow the shares.

Who does the short seller in effect borrow the shares from? ….. A company’s existing shareholders’ accounts.

The only people who can do something about short sellers are a company’s shareholders. If you don’t want your shares to be loaned out to short sellers, then you need to talk to your broker to understand how to stop that.

We provide the enclosed publicly available materials for background information. Advice about this issue and any investment related matter should be sought directly from your investment advisor.

Separately, if you are not already “subscribed” to our email distribution list, we encourage you to do so by clicking on the website homepage at http://www.northerndynastyminerals.com/ndm/Home.asp and following the instructions to subscribe.

With thanks for your interest and support of Northern Dynasty,

Ron Thiessen

President & CEO and Director

Breaking Down Reality

Here’s the deal my friends. NAK has been consistently battered by short sellers. Those who think their figurative SH*T simply doesn’t stink. What they are doing is borrowing YOUR shares in order to sell them short. In doing so, they are driving the price of the stock down in order to take money out of YOUR pocket and put it into theirs. Once again, they should be beaten, but since we can’t beat them, let’s find something else to do about it!

There Are Two Things These Idiots Need To Steal From NAK Investors, Albeit Legally!

Ultimately, a short seller is a thief in many ways. As mentioned above, they are borrowing YOUR shares without YOUR knowledge, and using them to drive prices down, taking the money out of YOUR pocket and flowing it into theirs. Sure, it’s legal, but how do they sleep at night? Nonetheless, there are two things that short sellers need in order for their plans to continuously drag NAK down. Here they are and how you can stop it:

Shares To Borrow – The first thing these thieves need is your shares. After all, if they don’t have shares to borrow, they simply can’t sell these shares short. Stopping this is a relatively simple process. As the CEO of NAK said, simply call your broker. Tell your broker that you truly believe that NAK is doing great things and you do not want your shares being loaned to idiots who are working to take money out of your pocket. Your broker will inform you of the steps you need to take in order to stop the bleeding.

Declines In Value – The second thing these idiots need in order to take your hard earned money is a decline in the value of the stock. At the end of the day, the Northern Dynasty Minerals shares that are sold short are borrowed and sold. The goal is to buy those shares back at a lower price later, making a profit off of the spread. However, if the price of NAK doesn’t fall, well the good guys get to feed the bad guys the losses. To stop this, you’ll need to get with your friends and ease their minds when the stock starts to fall, and work to push it back up by buying more!!!

Why Is This All Worth It?

At the end of the day, NAK has something great going for them. That’s the Pebble Project. When complete, the Pebble Project will be one of the worlds largest and most fruitful mines. While there has been some speculation with regard to whether or not the company will be able to get their hands on the permits they need, that speculation is gone. A settlement with the EPA gives Northern Dynasty Minerals a pathway to get exactly what they want – permission to move forward with this incredible project.

Nonetheless, short sellers have kept the price of the stock incredibly low. In fact, undervalued isn’t even an adequate word to describe the discount currently being offered by NAK shares. At the end of the day, for those that have a strong stomach and a bit of time to wait, NAK could prove to be the goose that lays the golden eggs. Is it worth waiting for your egg? Of course it is!

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on NAK. In particular, we’re interested in seeing how the bulls fight back. Regardless, this is one that we really believe in on a long-run level. We’ll continue to follow the story closely and bring the news to you as it breaks!

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Thought Leader Discussions

Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...