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It's undervalued for sure.
The Yield sign will come off. Then OTCQB uplisting is underway. Likely by Q1 2023 that will be completed if not sooner.
Revs up over 200%. won't stay cheap for long.
Very good PR about the licensing agreement. Believe that more will come in time.
The company is in many different sectors which makes it unloved. From Luxury Marble Trading to Real Estate, Fashion, and a Hong Kong based super-app. Very hard to make sense of. BUT they are on the right track. They are turn-around specialists that buy distressed assets and improve upon them. Private takeover value is well in excess of their current valuation.
Lots of angles in this play. Very undervalued.
Lots of catalysts i see pushing this baby up. Very undervalued for their potential.
-OTCQB Uplisting
-Retail Partnerships
-App deals with Merchants
-Payment Provider Expansion
Uplisting WILL help liquidity. Higher tiers face less restrictions. It's hardly a negative
Marching toward our goals. Be patient with the stock. good things take time. Big money down the road.
OTCQB will bring added liquidity and price appreciation. More brokers will allow access and higher levels will help that stock.
The registration filing means we ARE UPLISTING to the OTCQB!!!!!!!
"We intend to apply to have our common stock quoted on the OTCQB-tier of OTC Markets following the effectiveness of this Registration Statement."
FoodTV would be a good spin out venture. they own 50% and already sunk cost in getting distribution deals lined up. Any single Smart TV pretty much has Access. Roku stick, AppleTV, AmazonFire etc. Easy to announce a takeover and get a ready made platform.
No idea when earnings but I am very optimistic on the revenue top line growth, craft beer and craft spirits are in full swing and bars are back to being filled.
100% these things take time to work on. Permits and Development approvals. He's lined up the right people to get this done.
Acquisiition is going through man. Just the typical swings of the market. We need just to wait.
Don't forget FoodyTV. User growth is gonna be insane.
Netflix costs me $22 CAD a month\
Disney $6-7
HBOMax: 12ish
FoodyTV: FREE
Compliments
Agree with most of the points from the article. Summer Re-opening helps them sell more of their brands. Natures fury is in almost 3,000 stores. and more Brands coming down the pipeline. Assuming stores sell on average. I Have no idea what normal beverage sales are but i do know the added distribution deals will help them.
The Technology was purchased/acquired in 2021. I'd say give it time.
Production is in November I read.
Happy Memorial Day!
\good upwards movement today
Hey man, probably the closest index that represents PHBI's peers in the CSE and companies are getting slaughtered left right and centre. Alongside Fed rate hike fears and Ukraine.
The company is in High margin spaces and revs are near term. 43k a day from Rosin + Seedling Sales + Live Tissue Biotech play which can be monetized.
Their Subsidiary did 5M in Revenues in 2020. So betting on a bounceback as a Covid Reopening Play. Even if it does the same for 2022, means we are valued at only 1x Revs which is extremely low on a comparative basis.
Adding to the fact that that they got wider distribution in 2022 than they did in 2020/2021.
Closer we get to commercialization the more the price will rise. Stupidly undervalued at this point.
Good bounce today. Uplisting is a real possibility which would improve the liquidity for the company. They got real products and real revenues.
Nice bounce today.
Price is too low given the current valuation and growth prospects ahead.
Good things take awhile but acquisition is near term, revenues near term. Uplisting after those are achieved and more business verticals.
https://www.reddit.com/r/OTCpennystocks/comments/uj0a66/pharmagreen_biotech_inc_otcqb_phbi_overview_dd/
read this write-up online about them. Thoughts?
Undervalued by far. Airbeam alone is worth 2x the company market cap.
8M contracts secure and likely to get 80-100M soon. That's after the 4rd and 4th clusters are in the sky though
Right now you have a good entry price. But if you like you could always scale into the investment. Put 50% down now and then 50% on pullback if that happens.
Bias is towards the upside with catalysts on the way and sector interest from retail crowd.
Big things coming to Kleos, very undervalued right now. Especially compared to SapcX, Virgin Galactic and Blue Origin.
Why I like First Energy Metals Corp(and why you should to) (FE.CSE) (FEMFF.OTC)
Why I like First Energy Metals Corp(and why you should to)
FEMFF(OTC)
FE(CSE)
Summary
Diversified Across a few properties- Core holding is Lithium but diversified with Gold as well
Quebec is very close to the North American EV supply chain and White House has declared Lithium to be a strategic resource.
Close to a shitload of other Lithium Projects : Mine Quebec Lithium, which was formerly owned by RB Energy, Authier Lithium owned by Sayona Mining of Australia, Valor Lithium, Duval Lithium, Lacorne Lithium, International Lithium, Vallee Lithium, and Moly Hill Mine.
EV Demand is increasing which is the main driver for Lithium along with battery storage.
Strong Momentum - Price is up 300% this year and not much price ceiling if lithium prices surge again.
Lithium Mine supply are predicted to be in a massive deficit which will cause majors to look at acquisitions further down the line.
Management Team is experienced in capital markets and geology with many large discoveries in the past. Latest financings are all oversubscribed showing easy ability to raise cash.
Future Catalysts
Continued positive Drill Results
Consolidation in the Lithium Juniors Space
Lithium Offtake Agreements with suppliers
N43-101 coming
PEA
Nearby Discoveries
Nearby Acquisitions
They are cashed up and ready to go. Financing was done at a VERY favourable price. Just look at the pricing, it's above market price.
Already up over 50% on this one. Wait till drilling starts up.
Deep Deep Deep undervalued likely to spin off gold assets and go every into lithium already up 300% this year guys. Do your DD
This one WILL go up very soon. Already up 300% this year. |More to come, Way undervalued compared to peers.
Snowy Owl Gold Corp’s(SNOW.CSE) New Frankfurt Listing and Upcoming OTC Listing creates a Big Opportunity in this tight Float stock(DD)
CSE:SNOW
FrankFurt: 84L.F
r/10xPennyStocks - Snowy Owl Gold Corp’s(SNOW.CSE) New Frankfurt Listing and Upcoming OTC Listing creates a Big Opportunity in this tight Float stock(DD)
|Frankfurt Stock Exchange
News Release Breakdown & Why it’s Bullish
New Listing = More Exposure
Dual-Listings usually follow up the listing with Awareness Campaigns
Increased Investor Liquidity
New Listing increases Investor Exposure - Many investors are restricted by what they can buy in relation to what their Brokerage has access to. This is a problem as many would-be investors who want to buy your stock can’t. Europe is a Massive place with a lot of people with a hunger for Canadian Resource Companies, Frankfurt listings of companies are proof of that.
For Companies trading on the Canadian Securities Exchange, the VAST majority of European brokerages CAN’T trade their shares with the exception of Barclays & ING Direct(Holland).
So listing on Frankfurt, which most brokerages in Europe and Asia have access to means the total addressable investor audience has 10x what it used to. This is a catalyst that has resulted in BIG gains for Resource Companies dual-listing on Frankfurt just like Dual-Listing has benefited Cannabis and Psychedelic companies when they went on the NYSE/NASDAQ.
Canada Population: 36M
European Population: 746M
Future Possible OTC Listing as a Catalyst
Just like the Frankfurt Listing dramatically increases the total addressable investor audience for CSE stocks, the OTC markets also give access to an additional 49M+ investors that SNOW.CSE didn’t have before.
Similar to Frankfurt, new listings are followed by new campaigns to bring awareness and new investors into the stock. For stock with tight share structure, this has an exaggerated bullish impact on both liquidity and price action.
r/10xPennyStocks - Snowy Owl Gold Corp’s(SNOW.CSE) New Frankfurt Listing and Upcoming OTC Listing creates a Big Opportunity in this tight Float stock(DD)
Source: https://ca.finance.yahoo.com/news/snowy-owl-gold-corp-panache-211200125.html
Snowy Owl is pleased to announce that its common shares are now listed on the Frankfurt Stock Exchange ("FRA") and are under the trading symbol 84L.F.
The Frankfurt Stock Exchange, operated by Deutsche Börse AG, is one of the world's largest trading centers for securities and the largest of the eight stock exchanges in Germany. Snowy's Frankfurt listing is expected to facilitate the process of trading in its shares by investors in Europe and internationally. The Company's shares continue to be listed on the Canadian Securities Exchange under the symbol SNOW.
Elyssia Patterson, CFO commented: "Our Frankfurt listing is an important step in the Company's growth, enabling European investors and capital managers to participate in our story. This opportunity to broaden our shareholder base comes at an excellent time as we develop our gold projects in North America. This is an important step towards furthering the objectives of improving our visibility with the investment community and increasing investor awareness globally."
Conclusion:
Combined with a Low Valuation that trades cheaper than a shell company and a tight share structure, I believe this can have Big upside once it gets going.
r/10xPennyStocks - Snowy Owl Gold Corp’s(SNOW.CSE) New Frankfurt Listing and Upcoming OTC Listing creates a Big Opportunity in this tight Float stock(DD)
Source: Investor Presentation
Disclosure: I own shares in Snowy Owl Gold Corp(SNOW.CSE) and will continue to keep buying more shares
First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
Symbols
(CSE:FE) (OTCQB:FEMFF)
Summary of Our Research Findings
This report offers an analysis of First Energy Metals Ltd, a junior miner primarily targeting lithium and gold in Quebec, Ontario, and British Columbia provinces in Canada.
British Columbia, Ontario and Quebec are the friendliest and most productive mining regions in Canada with welldeveloped mining infrastructure. First Energy sales are expected to be driven by burgeoning demand for lithium from the global electric vehicles market.
• Lithium could be the new ‘oil’ as it powers the batteries of electric vehicles. EV adoption is accelerating and is likely to continue to accelerate, with ~320 million EV vehicles projected globally by 2040.
• With historical resource estimate of 4 million tons of 1% lithium oxide (LiO2) at its Augustus Lithium property, First Energy is perfectly positioned to take advantage of these trends
• Besides this, high-grade precious metal (gold/silver) prospects at its other properties (Titan, Scramble Mine, Kokanee Creek) offer additional revenue potential.
• First Energy boasts of proven management team with considerable experience and diverse backgrounds in capital markets, mineral exploration, and geology. A solid balance sheet for an early-stage small cap. In our opinion, this Company is worthy of active consideration and ongoing following for developments.
First Energy Metals Limited (CSE:FE) (OTCQB:FEMFF)
Introduction to First Energy Metals and its Projects First Energy Metals Ltd. is a junior resource company engaged in the exploration and development of mineral properties. As seen in Exhibit One, the emphasis for the Company is on properties in North America, with the current focus being primarily on Canada.
Founded in 1966, First Energy Metals Ltd. is headquartered in Vancouver, British Columbia, Canada.
The Company is fully reporting in Canada, trading on the Canadian Securities Exchange (CSE) with a symbol of FE. The Company’s shares are also listed on the Frankfurt Stock Exchange, trading under the symbol “A2JC89”.
Exhibit One – Canada Projects for First Energy Metals Ltd
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
In addition to Canadian and German listings, the common shares trade in the United States with quotations on the OTC Markets Venture Exchange (the “OTCQB”) under the symbol FEMFF. The listing on the OTCQB requires companies to be current in reporting and maintain common shares minimum bid prices. This highlights that the management takes investor disclosure seriously, with all reports to the Canadian regulator and the OTCQB taking place in a timely manner. The company also undergoes full year audits by a certified auditing firm.
We commend the team at First Energy for the time, effort, and expense incurred relative to maintaining fully reporting and audited status. Further, the Company maintains an up-to-date website with the latest news and financial filings, which acts as an excellent resource for investors to gain information. The website is www.firstenergymetals.com
The First Energy Metals Corporate Strategy
The Company’s strategy is to create shareholder value through its exploration success. Given that First Energy Metals is a junior miner, it is therefore primarily focused on prospecting, and early-stage exploration of mineral prospects. This includes finding and proving resources, and then sourcing a joint venture (JV) partnership to finance further exploration and project development. This JV partner is typically a large mining company that specialize in extracting the resources, refining the product, and selling the commodity into the marketplace.
We think this model makes lot of sense given the significant amount of capex involved in setting up a full-fledged mining operation. Junior miners often have capital constraints, and this is where support from JV or senior miner is needed to fund the project to completion. JV partner also benefits as they do not have to allocate any resources to search for new mineral prospects. They can acquire it from junior mining operators, such as First Energy Metals.
The Company remains committed to acquiring new properties to add to its portfolio. It is focusing on adding mineral prospects in North America in the technology metals, precious metal, and base metal sector. In January 2021, First Energy acquired a lithium exploration property (Augustus Project) in Quebec, Canada. Further to this, the Company acquired more properties near Augustus project in February and March 2021. Last year as well, it acquired several gold exploration properties. This shows that the management in committed and focused on executing its growth strategy which bodes well for investors and shareholders.
Augustus Lithium Property – Lithium in a Mining Friendly Jurisdiction
The Augustus Lithium Property is located in Quebec, Canada. It covers an area of 927 hectares and has excellent infrastructure support with road network, railway, electricity, water, and trained manpower available locally. See Exhibit two, which outlines the project location.
The Augustus Lithium Project is located in a very active hard rock lithium pegmatite area which houses many other lithium mines. As shown in Exhibit, there are several historical and currently active lithium mines in close proximity to Augustus mine. Total lithium resources for this region are over 50 million tonnes at 1% lithium oxide.
There are two prominent lithium (Augustus and Canadian Lithium) and one silver prospect the property which have been explored intermittently since 1948.
Augustus Lithium Prospect: The Augustus Lithium prospect is estimated to contain high grade lithium resource target of 4 million tonnes at 1% lithium oxide (Li2O). This is based on historical studies which were carried out in 1955.
Canadian Lithium Prospect: Past drilling at this prospect has shown presence of low-grade lithium. The studies indicate that the prospect has a potential for large volume low-grade bulk tonnage pegmatite near the surface.
Exhibit Two– Augustus Lithium Project
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
Relative to the Augustus project, First Energy has the option to acquire 100% rights by making payment of $180,000 in cash, issuing 2,000,000 of its own stock and undertaking $500,000 in exploration expenditure on the property by January 2024. The vendor has the right to retain a 2% royalty. First Energy has already commenced exploration work on this property beginning second week of February 2021. The scope of this work is to confirm the historical drilling results and to develop future exploration targets on the property.
The results from initial sampling have been encouraging with one sample assaying LiO2 value as high as 4.61%, while many samples have LiO2 values of over 1%. The Company is moving ahead with the drilling program which started in the first week of April 2021.
To date, the Company has compiled historical drill hole data on the Property for 74 historical dill holes which were completed on the two lithium prospects on the Property. The historical drill holes indicated intersections over 1% lithium oxide. The current drill program will confirm the historical drill results and also enable to complete a maiden NI 43-101 lithium resource estimates on the Property.
Subsequent to the January 2021 purchase, the Company has acquired additional lithium exploration mining claims near the Augusta Property. The newly acquired property claims are spread in several blocks and some of them are located adjacent to the Augustus Lithium Property.
We are particularly excited about the Company’s opportunities in the region. The significant area already acquired by the company gives a wealth of data to make future exploration plans.
There is also growing support for the mining industry from the Quebec government and extensive support for mining exploration and production companies. Last year in October 2020, Quebec released a plan to advance the critical and strategic minerals sector. The critical and strategic minerals sector now joins several other sectors that the government has recently recognized as growth opportunities.
The basic objective of the government’s plan is to support the exploration of critical and strategic minerals in Quebec as well as their production and recycling. The critical and strategic minerals encompass 22 minerals which are deemed essential for the new economy. This includes vanadium, rare earths, cobalt, titanium, nickel, and lithium.
Titan Gold Property
The Titan Gold Property is located in Quebec in the Detour-Fenlon Greenstone Belt which is host to 20 million ounces of gold. The belt has reported strong high- grade gold intercepts and high-grade (18.49 g/t Au) bulk sample. The property is comprised of 80 mining claims totaling 4,334 hectares. A summary of the Titan Gold Project is provided in Exhibit Three. The Titan Gold Property is located within a structurally active corridor hosting several northwest trending deformation zones, which are key ingredients to the gold mineralization in the area. There has been no historical drilling on the Titan Gold Property. Despite the limited exploration in the area, indications of gold mineralization are widespread.
Exhibit Three – Titan Gold Property
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
Scramble Mine Gold Property
In June of 2020, the Company announced that it had entered into an option agreement to acquire a 100% interest in the highly prospective Scramble Mine Gold Property, located in Jaffrey Township, Kenora Mining District in Northwestern Ontario, Canada. It is comprised of six mining claims covering approximately 140 hectares land. The region has excellent infrastructure support, linked by road and rail lines.
Approximately 5,200 meters of diamond drilling, 250 meters of surface stripping with sampling and 450 meters of underground development have taken place at the Property. Historical resource at the Property is estimated at 150,000 tons at an average grade of 0.24 ounces per ton (or 6.8 grams/ton).
The Company is moving systematically forward on exploration plan for the Scramble Mine property. It has already completed the initial exploration work, collected bulk sample as well as completed the airborne geophysical survey of the Property. The Company has contracted Bureau Veritas Minerals (BVM) in Vancouver to conduct the metallurgical testwork on the sample. It is also planning to start small scale trial production from the dump material and easily accessible mineralized quartz vein material. However, the permitting process is delayed due to COVID pandemic.
Of importance to investors is the announcements made by the Company outlining impressive results from its initial exploration program. The average value of gold in all samples is 29.34 g/t, with some samples touching as high as 82.3 g/t.
Kokanee Creek Gold Property
Kokanee Creek Gold Property consists of three mineral claims covering ~1,590 hectares located in southeastern British Columbia. The Property is part of a very active mining area with several historical and current gold, silver and base metals deposits located in the region. Also, it is supported by excellent infrastructure linked by rail and road lines.
The past producing mines in the vicinity including the Molly Gibson and the Alpine deposits. Historical production reported for the Molly Gibson mine (between 1909-1940) was at an average grade of 36.1 g/t gold and 15.3 g/t silver with recent exploration returning samples running up to 270 g/t gold. The 2018 study on Alpine deposits estimated inferred resource of 142,000 oz at 16.52 g/t gold.
The Company reported impressive results from its initial exploration work completed in 2020. It returned encouraging values of silver, lead, and zinc mineralization. This includes Silver (Ag) values are in the range of 0.19 grams per tonne (g/t) to 43.69 g/t; Gold (Au) values at 0.006 g/t to 0.211 g/t and Zinc is from 29.3 parts per million (ppm) to over 10,000 ppm (>1% Zn). The Company has filed a drill permit application and is awaiting approval for the same.
Shaw Gold Property
On September 22, 2020, First Energy entered into an option agreement to acquire 100% right in Shaw Gold Property which consists of multiple mineral claims covering ~693 hectares located near Timmins Gold Camp area in Ontario. The Timmins Gold Camp has produced over 70 million ounces of gold from 50 gold mines over the last 100 years. It is encouraging to note that the previous historical explorations had identified significant gold deposits in the area, but First Energy has not completed sufficient work to verify these claims.
Red Lake Gold Mining Camp
On September 14, 2020, First Energy entered into an option agreement to acquire a gold property located in the Red Lake Mining District in Ontario. The property consists of 94 mineral claims covering ~1,880 hectares land. Red Lake gold mining camp is one of the largest gold camps in North America famous for its high-grade gold deposits. The region has produced more than 30 million ounces of gold.
According to 2020 Ontario Geological Survey (OGS) Red Lake Resident Geologists report, there are 5 major exploration projects ongoing in the Red Lake District. Besides this, over 40 active exploration permits have been issued for this area. This shows that the region generates a lot of interest among miners and the Company’s gold property could also see high-grade deposits.
Bald Eagle Silver Property
On August 10, 2020, First Energy entered into an option agreement with Geomap Exploration Inc. to acquire a 100% interest in Bald Eagle Silver Property, which consists of three mineral claims covering ~1,013.5 hectares land in British Columbia. Red Lake gold mining camp is one of the largest gold camps in North America famous for its high-grade gold deposits. The region has produced more than 30 million ounces of gold.
The acquisition will be caried out via an all-stock deal. First Energy will issue 550,000 of its common stock to acquire 100% interest in the Property. Geomap Exploration Inc. will retain a 2% royalty of which First Energy may purchase 1% of the royalty.
Bald Eagle boasts of excellent connectivity and is located just 57 Km by road from a major Port. This allows the Property to easily ship minerals by ocean freight to any destination in the world. Historically, four mineral occurrences on this property have been documented which have assayed gold and silver deposits. First Energy is likely to conduct its own exploration studies to verify the historical claims and establish occurrence of new deposits.
Quebec’s $6.7 Billion Plan for Green Economy – Big Boost for Lithium Metal Miners
In December 2020, Quebec’s government announced a $6.7 billion plan for a Green Economy by 2030. As part of this plan, the government intends to undertake major electrification of vehicles and is targeting to ban sale of new gasoline-powered cars from 2035. Light trains, city and school buses, taxis, cars, and trucks will all be electrified. The target is to have 1.5 million electric vehicles on Quebec roads by 2030.
Quebec is not alone in this. Ontario is trying to carve out its niche in the electric vehicle market as well. The 2021 budget highlighted $4.3 billion in investment from automakers to build electric vehicles in the province, and also announced a strategy for extracting battery minerals.
Even the US government is looking to Canada for lithium and other minerals to boost EV production. US plans to deepen financial and logistical partnerships with the Canada’s mining sector over time. The U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau have committed to building an EV supply chain between the two countries. We think Canada will become an important part of North American EV supply chain.
This is a very positive news for miners of metals such as lithium and others. First Energy is also likely to benefit given its claim over large lithium blocks at its Augustus Property
Lithium Gaining Prominence
Lithium is gaining more ground in a world which is looking for alternative sources of energy. It will play a key role in the rush to replace vehicles with internal combustion engines with electric vehicles (EVs). Lithium is one the key ingredients for batteries that power electric vehicles. Lithium can generate more energy per cell than the traditional lead-acid or zinc-carbon batteries. Macquarie Research predicts that demand for electric vehicles could trigger material shortages of the metal from 2025. Goldman Sachs claims that lithium along with copper could become the new oil.
Exhibit Four – Share of EVs to Rise
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
Policy support from governments globally is one the major factors driving the uptick in EVs. Developing nations’ governments, particularly in Europe, have set targets to reduce carbon emissions by 2030 by phasing out vehicles running on petrol and diesel. Electric vehicle (EV) sales are expected to reach 45 million units per year by 2040, with a total global EV stock of 323 million, according to Wood Mackenzie.
China stated that it wants new energy fuel vehicles to account for 20% of its total car sales by 2025. The China Association of Automobile Manufacturers predicts China's EV sales will hit 1.8 million units in 2021, up 40% from a year earlier. France expects to phase out gasoline powered vehicle sales completely by 2040, while Norway is targeting to achieve the same goal by 2025. The changes could be significant because a growing number of countries are stepping up their policy initiatives to support EV adoption.
The rising demand for electronic vehicles and the stringent government regulations to reduce emissions are expected to drive demand for lithium.
Lithium Prices – On the Rise
Lithium is one of the key constituents of the Lithium-ion battery which has been witnessing high demand primarily from the electric vehicles market. China is currently the major producer and consumer of lithium chemicals with a focus on lithium-ion battery applications. The batter-grade lithium carbonate prices have risen 103.4% since the start of 2021. The lithium hydroxide price is up 44.3% so far this year, to $11,475/t. The strong action in prices is underpinned by significant expansion in New Energy Vehicles (NEV) uptake.
S&P Global expects domestic lithium carbonate prices would reach Yuan 80,000/mt ($12,371/mt) in 2021, an increase of more than 20% from early January 2021. China's battery-grade lithium carbonate and hydroxide prices averaged Yuan 43,845/mt and Yuan 50,346/mt, respectively, in 2020.
The bullish outlook for EV sales means that the lithium demand is likely to be outpacing supply side growth. Macquarie echoed this sentiment as it expects the lithium market to be in deficit from 2022, with material shortages emerging from 2025. This should support prices for lithium.
Gold Prices at Near 30-Year Highs
The gold prices are at near 30-year highs as shown in the below Exhibit Six. While the prices are unlikely to see major jump from current levels in the near-term, the good news is that majority of analysts do not predict a major fall in price either.
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
The current price is around $1,770/oz and according to Citibank, it is likely to remain in the range of $1700-$1900/oz over the next 12 to 18 months. Numerous other analysts also see prices in the similar range.
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
Recently, gold has faced strong headwinds amid rising real yields, which has seen investors trim their gold exposure. Higher Treasury yields are bearish for precious metals as investors can earn guaranteed returns from the yield unlike holding metals, which fluctuate in price and do not pay interest or dividends.
For the long-term, the trend seems to be bullish. According to estimates from The Economy Forecast Agency, the metal prices are likely to be $1,972 at the end of 2022 and $2,402 per ounce at the end of 2025. Many other long-range forecasts also point to gold prices above $2000 per ounce by 2025.
We think this is extremely positive for First Energy Metals which has a number of gold properties in its portfolio. Initial exploration studies on these properties have indicated the presence of high-grade gold resources. Further, the long-range forecasts also point to gold prices above $2000 per ounce by 2025.
The Balance Sheet
The most recently released balance sheet for First Energy was dated December 31, 2020. The balance sheet showed cash of C$257,119 as against total liabilities of C$285,544. The total assets were again minimal at C$1,111,727 representing the small size of the firm and the current stage of its projects. Cash used in operations for the nine months ending on December 31, 2020, was approximately C$0.8 million and approximately $0.25 million was inbound during the same period in the form of loan proceeds. The December balance sheet is included below as Exhibit Eight.
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
During the nine months ended December 31, 2020, the Company issued ~3.4 million common shares for total proceeds of C$465,000. As of March 31, 2021, the Company had 49.1 million common shares issued and outstanding. With the shares recently closing at around US$0.27 (or C$0.34), the total market value of the Company is about US$13.7 million. Additionally, approximately 13.5 million options and warrants are outstanding, which yields an all-in share count of ~63 million on a fully diluted basis.
Based on the current market price of C$0.35 of the stock, only the options are dilutive in nature. This includes 2.64 million stock options at an exercise price of C$0.21 and 1.3 million stock options at an exercise price of C$0.35. All the warrants are anti-dilutive in nature. This includes 9.6 million warrants at an exercise price of C$0.40.
The last fund raise of significance was on March 5, 2021 - a non-brokered private placement financing for gross proceeds of C$1.55 million. It consisted of the sale of $960,000 flow-through units (FT Units) by way of issuing 4 million shares at $0.24 per FT Unit and the sale of $590,000 hard dollar units (HD Units) by way of issuing 2.95 million shares at $0.20 per HD unit. Each unit consistedof one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at C$ 0.40 per share for two years from the date of issue.
During the December quarter, the Company registered net loss of C$0.8 million, compared to a loss of C$0.2 million the prior year period. With more exploration programs being conducted during the March quarter, we expect another quarter of net loss (more likely higher than the previous quarter).
Exhibit Nine – Summary Quarterly Financial Information
r/10xPennyStocks - First Energy Metals Limited(FE.CSE) is De-Risked and Worth Investing In(DD Research Report)
We see strong sales growth possibilities for the Company in the 100% owned Augustus Lithium Property and the recently acquired mining blocks in its vicinity. With initial exploration results suggesting the presence of high-grade lithium and historical estimates pointing to ~4 million tons of Lithium Oxide at Augustus, we see massive traction in sales and earnings in the medium to long term.
We will be closely monitoring the liquidity of the company given its plans to conduct number of exploration operations over the next twelve months. Management estimates that the current cash balance funds will not be sufficient to carry out currently planned exploration and operations through the next twelve months. Therefore, the Company will need to seek additional sources of financing to meet all exploration expenditures as well as its ongoing operations.
The Outlook and Conclusions
There is a lot to like about the First Energy Metals story. In summary we feel investors should consider the following.
The company is present in three of the major four mining districts of Canada. These districts account for over three-quarters of Canada’s total value of mineral production. This suggests that the likelihood of mineralization is high in these regions.
• The company’s exposure to lithium via Augustus Lithium Property is a big positive. There are several historical and currently active lithium mines in close proximity to Augustus mine. Total lithium resources for this region are over 50 million tonnes at 1% lithium oxide (LiO2).
• The results from initial sampling have been encouraging with one sample assaying LiO2 value as high as 4.61%, while many samples have LiO2 values of over 1%. The Company is moving ahead with the drilling program which started in the first week of April 2021.
• Aggressive green economy plans by Quebec and Ontario governments should boost demand for metals such as lithium. Quebec is targeting 1.5 million electric vehicles on roads by 2030. This is a very positive news for miners of metals such as lithium and others. First Energy is also likely to benefit given its claim over large lithium blocks at its Augustus Property.
• Lithium could be the ‘oil’ as it powers the batteries of electric vehicles. EV adoption is accelerating and is likely to continue to accelerate, with ~320 million EV vehicles projected globally by 2040. With historical resource estimate of 4 million tons of 1% lithium oxide (LiO2) at its Augustus Lithium property, First Energy is perfectly positioned to take advantage of these trends
• Gold prices are strong and the long-term trend for the prices is bullish. We think this is extremely positive for First Energy Metals which has a number of gold properties in its portfolio.
• The recent capital raise in March 2021 is a sign that the company is able to successfully raise funding from capital markets. This will allow the company to carry out its exploration activities as well ongoing operations.
There is lot to like about the company and the portfolio of mining projects that it has accumulated. The balance sheet has ample flexibility to raise additional funding and the management team has demonstrated its ability to successfully tap capital markets with recent fund raises this year.