Saturday, March 7, 2015

InvestorsGuru.com 10 Filtered Mid-Day Market Movers Recap

Mid-Day Market Movers focus on above average volume, price action, breakout chart trends and news - posted throughout the day live at the top of InvestorsGuru.com and on our Hot Sheet. Below recaps last week's movers, all prices when posted, week high price Wk-H:, with a brief company description and recent news headlines. Submit any ticker symbol to our Detailed Quote Portal (top-left of all pages) for quotes, java charts, research and news, or to comment/share.

NYSE
(NYSE: GTI) GrafTech International Ltd. $4.53 Wk-H: $4.77
- innovative graphite solutions: steel, energy apps., electronics to 70+ countries in 4 continents, Q4/YE-14 report; credit facility ups liquidity

NYSE MKT AMEX
(AMEX: PZG)(TSX: PZG) Paramount Gold and Silver Corp. $2.17 $1.03 $1.20 Wk-H: $1.28
- Mexico/Nevada adv. multi-million oz. projects, Expands Bulk Tonnage San Francisco Deposit; (NYSE: CDE) Coeur offers share buyout in Q2
(AMEX: CVM) CEL-SCI Corp. $0.28 $1.81 $1.06 Wk-H: $1.23
- 2nd Month of Record Patient Enrollment for Phase 3 Head and Neck Cancer Trial; Clinical Studies & Research Substantiate Co.'s Claims
(AMEX: JOB) General Employment Enterprises Inc. $0.28 $1.05 Wk-H: $1.25
- provider of specialty staffing services, Mar. 10 to Present at ROTH Growth Stock Conference; Q1 FY-2015 Results; Business Exec. Joins Board

NASDAQ
(NASDAQ: SIRI) Sirius XM Radio Inc. (24 posts since $0.73 in 2010) $3.94 Wk-H: $4.04
- world's largest radio broadcaster by revenue with 27.3M subs., Prices $1B 5.375% 2025 Notes; Presents at Tech., Media & Telecom Conf.
(NASDAQ: OMER) Omeros Corp. $8.11 $13.23 $17.19 $16.43 $24.89 Wk-H: $27.64
- focused on small-molecule and protein therapeutics, Feb. 19 Phase 2 OMS721 Trial Resulting in Extended Access for Compassionate Use
(NASDAQ: ONCY)(TSX: ONC) Oncolytics Biotech Inc. $0.98 Wk-H: $1.40
- focused on oncolytic viruses as potential cancer therapeutics, Receives Orphan Drug Designation from U.S. FDA for Fallopian Tube Cancer

TSX (quote T. and ticker symbol)
(TSX: PDL)(AMEX: PAL) North American Palladium Ltd. $0.36 Wk-H: $0.375
- one of two primary palladium producers worldwide with its flagship Lac des Iles Ontario mine, Positive Preliminary Economic Assessment

TSX Venture (quote V. and ticker symbol)
(TSXV: PYD) Poydras Gaming Finance Corp. $0.225 $0.095 Wk-H: $0.12
- owns and finances slot machines across four casinos in Oklahoma, Launches 600 Machine Installation
(TSXV: PTG) Pivot Technology Solutions Inc. $0.31 Wk-H: $0.365
- starts Quarterly Dividend and Normal Course Issuer Bid, also Converting Series A Preferred Shares into Common Shares

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our AnyTicker.com Bulletin Boards. Free!

Wednesday, February 18, 2015

Energy Fuels And Uranerz Energy Uranium Merger: More Than A Sum Of The Parts - Small-Cap Stock Observer

This Deal Now Makes A Lot Of Sense

Last month I mentioned: "I didn't expect to see a merger between a conventional underground miner and an ISR producer. I'm looking into the synergies of this merger, from mining process to geographical cost savings, to write about later." After a month of breaking down why these two emerging uranium producers want to merge, why now, and how this deal works for investors of both companies, I think I now get it. This seemingly odd couple at first has big plans together.

(AMEX: URZ)(TSX: URZ) Uranerz Energy owns and operates America's newest uranium mine, called the Nichols Ranch project. This In-Situ-Recovery (ISR) mine is located in the heart of Wyoming's Powder River Basin (PRB), a mining district that produces about half of all uranium produced in the U.S. Uranerz has explored only 6 of its 30 PRB projects so far, covering an area of ~73K acres surrounded by major producers (NYSE: CCJ)(TSX: CCO) Cameco and Uranium One.

ISR economic advantages over conventional mining may include faster permitting, lower mine construction costs, lower operating costs, to even lower reclamation costs when the mine eventually closes. In addition to being a cost effective mining method, sandstone hosted ISR uranium deposits typically found in the PRB are also simpler, safer and more environmentally friendly to mine.

Uranerz' management team specializes in ISR mining, with an enviable track record of finding ISR amenable resources, and in permitting, funding, constructing and operating successful ISR mines. Late in 2010 I started writing about URZ as I saw this growth template about to repeat, after it established uranium resources and with the company awaiting permits to build its first mine.

Uranium stocks were trending higher back then and URZ was one of the best performers, doubling to ~$6 a share over the next two months. Just prior to Japan's March 11, 2011 9.0 earthquake and tsunami, Uranerz raised ~$32M in equity to fund the majority of its mine construction costs. Good management tends to have good timing, which saved URZ investors from lots of extra share dilution—uranium stocks still trade at only a fraction of their value prior to the Fukushima Daiichi nuclear accident.

Uranerz' Nichols Ranch mine started operating last April and has produced ~200K pounds of U3O8 in H2-2014. The mine is licensed for up to 2Mlbs. per year and is still ramping up production. The company has long-term contracts to supply two major U.S. power utilities, signed when uranium prices were around $60/lb. and providing a substantial premium margin over today's $38 spot price.

Wyoming's Department of Environmental Quality (WDEQ) recently deemed Uranerz' Jane Dough "Permit to Mine" application complete, leaving only U.S. Nuclear Regulatory Commission (NRC) approval before production at this new area can start. Wellfields at Jane Dough and the company's other nearby satellite mining units can be built quickly and inexpensively to deliver mining solutions containing uranium via pipelines to feed the Nichols Ranch processing plant. See map below:


The question is what will Uranerz do with any extra uranium, beyond that needed to supply its premium sales contracts? They can sell into the spot market at lower prices currently, or build an inventory and speculate on higher prices—which many do expect, me included. In any event growing mining companies need timely capital when building new mines, either from profitable sales or other forms of capital. This is the "why" and "why now" a merger makes sense.

(AMEX: UUUU)(TSX: EFR) Energy Fuels produces uranium and vanadium, and owns the White Mesa mill—the only operational conventional uranium mill in the U.S. The company has a producing mine and a number of production-ready mines on standby, plus a diverse portfolio of development and exploration projects located in Wyoming, Arizona, Utah, New Mexico and Colorado. See below:


Like Uranerz, Energy Fuels also has long-term premium sales contracts with U.S. power utilities. For 2015 they have to supply ~800Klbs. of U3O8 as production declines at its only operating mine—called Pinenut, located in northern Arizona. After perhaps some ~100K-200K more pounds over the next quarter, uranium production at this high-grade breccia pipe deposit mine is scheduled to shut down by mid year.

Fortunately Energy Fuels does have other high-grade, low-cost, production-ready mines and materials nearby to transition to; read yesterday's news release: "Energy Fuels Acquires 50% Interest in the High-Grade Wate Uranium Project in Arizona", and on February 6th, "Energy Fuels Prepares to Resume Development at High-Grade Canyon Uranium Mine; Update on Pinenut and Alternate Feed Materials".

Energy Fuels' website details huge measured and indicated resources of ~127Mlbs. of U3O8, providing lots of production to rely on as prices move higher. However, building more or expanded underground uranium mines takes time and is currently not that profitable. Some suggest that UUUU simply buy uranium in the spot market to sell into its sales contracts at a profit. My understanding is that only a portion of these sales can come from anything other than the company's own mining activities.

Uranerz Energy wants to ramp up uranium production beyond the levels of its own sales contacts. Energy Fuels has more contracted sales than its current production can meet. Instead of both companies waiting for higher uranium prices, a merger helps Uranerz expand its lower-cost ISR mining operations faster, which also helps Energy Fuels meet its supply commitments.

Some quick stats on the combined company:
  • After merger costs of ~$1M, expected to save ~$2M per year in overhead costs
  • Sales contracts go out to the year 2020, with ~$1Mlbs. at ~$57/lb. needed for 2015
  • Q3-2014 working capital of both companies totaled over $57M
  • NI 43-101 resources to be the largest in the U.S. among producers and developers
  • To be the largest publicly-traded uranium company by market capitalization operationally focused and listed in the U.S.

As a larger integrated uranium producer, a merged company will have a diversified portfolio of uranium assets over several western U.S. states that can employ conventional or ISR mining as needed. Economies of scale positions a merged company to better compete with major producers, and attracts more attention from analysts, institutional investors, ETFs and market cap weighted indexes.

Out of only six publicly-traded uranium-focused producers worldwide, a merged Uranerz Energy and Energy Fuels becomes just the third company with the expertise to mine, and the facilities to process, both ISR and conventional resources. A larger merged company can usually raise capital easier, faster and on more favorable terms, as needed to expand exploration or production, or to take advantage of low priced assets. More resources and production means a merged company can negotiate larger sales agreements with additional power utilities, to lock in higher prices. A merged company will have more flexibility to grow while also better protecting its balance sheet, with more low-cost ISR production when prices are low and by levering its larger conventional mines when prices are high.

Lack of UUUU/URZ excitement after the January 5th merger news makes me wonder who else gets the big picture? As for the nine URZ lawsuits announced, try and find any merger these days without lawsuits. Under this all-stock deal URZ shareholders are set to receive a 37% premium equal to 55% of the merged company. Why sue Uranerz? Could this have anything to do with its U.S. based head-office whereas Energy Fuels' head-office is in Canada? What percentage of these template lawsuits go to court, or are settled, and even if they win do shareholders ever get paid or are they just legal fee shakedowns?

Uranerz Energy is obviously confident about this merger happening; read today's news release: "Uranerz Announces Mine Wellfield Expansion Activities at Nichols Ranch". The company recently expanded the wellfield at header house #4 by another 19 injection and recovery wells, which are now in service. Planned Q2 expansion will come from a fifth header house that starts construction next week, with its 90 production well installations already underway. A sixth header house and its production wells are also expected to be installed later this year. This merger seems like a done deal.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

Saturday, February 14, 2015

InvestorsGuru.com 8 Filtered Mid-Day Market Movers Recap

Mid-Day Market Movers focus on above average volume, price action, breakout chart trends and news - posted throughout the day live at the top of InvestorsGuru.com and on our Hot Sheet. Below recaps last week's movers, all prices when posted, week high price Wk-H:, with a brief company description and recent news headlines. Submit any ticker symbol to our Detailed Quote Portal (top-left of all pages) for quotes, java charts, research and news, or to comment/share.

NYSE
(NYSE: CGA) China Green Agriculture Inc. $2.19 Wk-H: $2.35
- produces and distributes humic acid-based fertilizers and other agricultural products, Q2 Revenue Beats and Net Income Meets Guidance
(NYSE: NADL) North Atlantic Drilling Ltd. $2.23 Wk-H: $2.37
- fleet of eight harsh environment offshore drilling units plus one under construction, Q4 2014 earnings on Thurs. Feb. 26
(NYSE: SFY) Swift Energy Co. $2.96 Wk-H: $3.12
- develops, explores, acquires and operates O&G properties in Texas and Louisiana, Q4/Year-End 2014 Earnings and Conf. Call on Feb. 26
(NYSE: BPZ) BPZ Energy $0.41 Wk-H: $0.467
- O&G co. with 1.9M net acres in four blocks in northwest Peru, Reports Year-end 2014 Reserves; New Production from Albacora A-27D Well

NYSE MKT AMEX
(AMEX: NOG) Northern Oil And Gas Inc. $8.71 Wk-H: $8.98
- focused in the Williston Basin Bakken and Three Forks play in North Dakota and Montana, Permits TRT Holdings to up its Equity Stake to 20%

NASDAQ
(NASDAQ: ACHN) Achillion Pharmaceuticals Inc. $12.37 $11.59 Wk-H: $12.85
- small molecule therapeutics, offers 12M shares at $10.25; Achieves 100% SVR12 in Phase 2 Trial 6-Week Combo. Treatment With ACH-3102

TSX Venture (quote V. and ticker symbol)
(TSXV: GRC) Grenville Strategic Royalty Corp. $0.69 $0.80 $0.63 Wk-H: $0.71
- provides royalty-based finance solutions to growing industrial and technology companies, 2014 Results and Declares First Dividend
(TSXV: VIT) Victoria Gold Corp. $0.11 $0.16 $0.22 Wk-H: $0.235
- 100% Dublin Gulch and multi-million ounce Eagle Gold Deposit in central Yukon Canada, Jan. 14 grant's $0.16 employee stock options

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our AnyTicker.com Bulletin Boards. Free!

Saturday, January 24, 2015

InvestorsGuru.com 12 Filtered Mid-Day Market Movers Recap

Mid-Day Market Movers focus on above average volume, price action, breakout chart trends and news - posted throughout the day live at the top of InvestorsGuru.com and on our Hot Sheet. Below recaps last week's movers, all prices when posted, week high price Wk-H:, with a brief company description and recent news headlines. Submit any ticker symbol to our Detailed Quote Portal (top-left of all pages) for quotes, java charts, research and news, or to comment/share.

NYSE MKT AMEX
(AMEX: NNVC) NanoViricides Inc. (pre 3.5:1 R-Split: $0.84 $1.01 $1.32 $1.45) $6.82 $3.72 $2.89 Wk-H: $3.15
- developing nanomedicine anti-viral drugs, Has Shipped anti-Ebola Drug Candidates For Testing to a BSL-4 Hi-Security Biocontainment Lab
(AMEX: GSS)(TSX: GSC) Golden Star Resources Ltd. $0.50 $0.606 $0.44 $0.53 $0.68 $0.80 $0.34 Wk-H: $0.365
- Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, achieves 2014 Production Guidance, Provides 2015 Guidance
(AMEX: MEA) Metalico Inc. $1.74 $0.55 Wk-H: $0.71
- recycles scrap metal and fabricates lead-based products, Dec. 10 names new director; Dec. 2 Sells Lead Division for $31.3 million cash
(AMEX: ASM)(TSX: ASM) Avino Silver & Gold Mines Ltd. $1.87 Wk-H: $1.97
- focused on the historic Avino Property near Durango Mexico, Provides 2014 Year End Summary and Outlook

NASDAQ
(NASDAQ: CNET) ChinaNet Online Holdings Inc. $1.09 $3.34 $1.85 Wk-H: $2.27
- provides B2B Internet advertising via its portal websites, Subsidiary Selected for Hubei Province's Top "500 Projects" Program
(NASDAQ: NERV) Minerva Neurosciences Inc. $5.03 Wk-H: $5.30
- Positive Phase 1 Data With MIN-202, Selective Orexin-2 Antagonist for Treatment of Sleep Disorders Incl. Primary and Comorbid Insomnia
(NASDAQ: CRIS) Curis Inc. $1.69 Wk-H: $1.72
- biotech focused on novel cancer drugs, to collaborate with Aurigene on Small Molecule Antagonists for Immuno/Precision Oncology Targets

TSX (quote T. and ticker symbol)
(TSX: LAC) Lithium Americas Corp. $0.30 Wk-H: $0.32
- developing one of the world's largest & lowest Cost Lithium oper.'s, 1st Prod. Ready for Export from Cauchari Salar in Jujuy Prov. Argentina

TSX Venture (quote V. and ticker symbol)
(TSXV: PHM) Patient Home Monitoring Corp. (10 posts since $0.175 in 2013) $1.00 Wk-H: $1.05
- acquisition-oriented, fast-growing and profitable home monitoring company, staffing/BOD changes; 2015 plan; $2.25M acquisition LOI
(TSXV: VGD) Visible Gold Mines Inc. $0.145 $0.20 Wk-H: $0.21
- focused on gold deposits in Quebec, identifies over 40 high-priority diamond drill targets along its 167 Project in the James Bay region
(TSXV: BLT) Brilliant Resources Inc. $0.155 Wk-H: $0.20
- focused on metals and O&G in West-Central Africa and Canada, Announces Agreement with the Government of Equatorial Guinea
(TSXV: BAJ) Baja Mining Corp. $0.05 Wk-H: $0.055
- owns 10% of the Boleo copper-cobalt-zinc-manganese project in Baja California Sur Mexico, First Copper Production and Additional Funding

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.