InvestMacro

Source: Penny Queen  (1/17/23)

In light of Bion Environmental Technologies signing a letter of intent to develop a 45,000- head sustainable beef project with Olson Farms/TD Angus, Penny Queen reviews the company to tell you whether she believes it is a good buy.

Bion Technologies and Walmart

What really sticks out to me about their latest announcement is how it ties Bion to Walmart. The company has been careful with its words, but you don’t have to look very deep to see the connection.

Bion is now planning a 45k head project with Olson Farms/TD Angus. It is worth noting that Olson Farms/TD Angus is a founding member of Sustainable Beef, LLC, with a rancher-owned, US$325 million packing plant being developed in North Platte, NE.

Walmart Inc. (WMT:NYSE) just announced an equity investment to buy a minority stake in Sustainable Beef, LLC.

Connecting the dots seems pretty easy here. It looks like Walmart is showing that they have sufficient demand for a premium product and want to secure its distribution.

In late September, Bion added Bill Rupp to its Advisory Group; he also happens to be a principle of Sustainable Beef, LLC., a former president at Cargill and JBS, two of the world’s top three meat packers.

Demand

Fun Fact: In 2021, Walmart US did US$4.1 billion in beef sales, and Walmart Mexico did US$321 million in beef sales. That is just under 6 million cattle being sold through Walmart alone.

Before the announcement, Bion already had plans for one 15,000-head sustainable beef project with Ribbonwire Ranch, and the economics of it are impressive!

Most investors are familiar with the meteoric rise (and subsequent fall) of plant-based meat companies over 2021 and 2022.

I believe the lesson to be learned from it is two-fold, there is a great demand for alternatives to current farming practices, and there is still a massive demand for animal proteins. A recent survey by Midan Marketing showed that 62% of American consumers purchase premium beef.

The global demand for beef cattle is 1.1 billion, with 90 million of that being in the U.S.

BION is effectively creating a new premium niche, sustainable beef. Their system turns environmental liabilities into agricultural assets. It greatly reduces environmental damage, provides economic benefits to farmers, and also provides benefits to the end consumer.

The Problem

The problem with traditional feedlot systems is the intensity. They place cows in massive outdoor feedlots for up to 3 months of ‘finishing.’ The waste from these cows is spread untreated onto fields and leads to nitrate contamination in groundwater, toxic algae blooms, and increases phosphorus in the soil. The methane, ammonia, and NOX from the cattle is also released into the air. This is an environmental disaster on its own, but the practice also increases pathogens and antibiotic resistance in cattle.

Bion has the Solution

Bion Environmental Technologies specializes in developing advanced technology for treating livestock waste. In plain English, they take animal poop and turn it into money. They process the waste back into biogas, clean water, and fertilizer. The image below shows what the annual waste from 15,000 cattle becomes with their process.

The BION system can work will all sorts of livestock, but since their current agreements are cattle based, that is what I’ll focus on.

Their system includes large, covered barns that protect the animals from the elements. The system utilizes with solar-powered lighting, manure conditioning and collection, biogas upgrading and recovery, ammonia capture and manufacturing of organic fertilizer products, and clean water recovery.

All operations will be third-party validated, USDA-certified, and blockchain-recorded, resulting in a premium product that is transparent, sustainable, and has significantly lower environmental impacts on air, water, and land.

Project Economics

Before the announcement, Bion already had plans for one 15,000-head sustainable beef project with Ribbonwire Ranch, and the economics of it are impressive! (The Ribbonwire agreement is for one 15k head module, with an option for another three. The following numbers are based on one module.)

Clive Maund suggested that Bion was building up to a major bull market.

The following image is taken from their investor deck. It shows the breakdown for a 15,000-head system, including both organic and sustainable beef. The capital costs are much higher for the BION system, coming in at 42.9 million dollars each, compared to US$8 million for an outdoor feedlot.

It does not take long for a return on the investment due to the multiple income streams and higher margins.

A traditional feedlot is estimated to bring in less than half the revenue. The beef industry is a low-margin world and doubling your revenue is a dream come true for farmers.

Projects and Partnerships

Take that last analysis and triple it! Three of Bion’s 15,000-head modules will make up the Olson Farms/TD project.

Construction is expected to start in the second half of 2023, with a definitive joint venture in early 2023. By the end of 2024, early beef and coproduct earnings are anticipated, and in 2025, production might reach up to 135,000 head annually.

Showcase

Both the Ribbonwire Ranch and Olson Farms projects will serve as a sort of showroom for other cattle farmers. I expect to see significantly increased demand for their systems after a successful launch of either project.

Blockchain

Another element that I think is worth reviewing is the blockchain tracking system. I will admit to not being a fan of cryptocurrency, but if there is one good thing to come out of crypto, it is the blockchain.

I see BION being a steady grower over the next few years.

The ability to store information immutably on the blockchain provides a number of food safety protections and allows consumers to know that if they are buying organic or sustainable products, they are really getting what they paid for.

In the event of a food recall, there will be no doubt as to what products are potentially bad. This is a huge cost savings for retailers. Often there is a recall, and they just offer refunds for anything bought between certain dates. With blockchain, they could simply say, “products ending in 4232 need to be returned,” or something of the like.

Analyst Targets

Back in July, Clive Maund suggested that Bion was building up to a major bull market. It was trading at US$1.05 when he said that, and today’s price of US$1.45 seems to point to the same thing. This technology is gaining traction. The stock price is gaining traction.

A few months ago, I was able to find a report by Jeff Campbell, former analyst with Alliance Global, who gave a price target of US$3 back in August. This price target was only included the Ribbonwire deal and did not include the recent deals.

I have not given enough time or words to the environmental benefits or potential tax credits that could be involved. I see BION being a steady grower over the next few years. These projects take time to develop, but it is hard to deny that they are gaining momentum. I am hoping to see additional deals in the coming months.

Source: Streetwise Reports  (1/13/23)

In conjunction with the release of its third-quarter report, Largo Inc. reported record high-purity vanadium production. Read more to hear what analysts are saying about this stock and the multiple catalysts the company has set for the future.

Largo Inc. is a dual-listed vanadium producer and supplier that produces 7% of the world’s vanadium supply.

The company does everything to further its mission to provide the world with low-carbon solutions and create value through its unique vertical integration. This is done through the company’s two-pillar strategy based on 1.) vanadium production from one of the highest grade and lowest cost vanadium production facilities in Brazil and 2.) its energy storage business in the U.S. with one of the world’s most advanced VRFB technologies.

 H.C. Wainwright analyst Heiko F. Ihle gave the company a Buy rating and a CA$19 target price and said, “In our view, some of this value is likely to surface in the near-term since market interest for clean energy investments remains quite high.”

Vanadium is a rare metal discovered in Mexico in 1801. It is a key transition metal suitable for use in energy storage and high-quality alloy applications. Approximately 90% of vanadium is currently used as a steel additive. It is used in the hardening of space vehicles, nuclear reactors, and airplanes.

However, more excitingly, it is also used in producing vanadium electrolyte, which is used in Vanadium redox batteries. These batteries store significant amounts of renewable energy from solar and wind power. According to an article in the Journal of Vacuum Science & Technology B, Vanadium redox batteries are “the most successful Redox flow batteries (RFB) for large-scale applications,” which may explain their recent increase in demand, particularly in China.

On December 13, Pangang Group Vanadium & Titanium Resources Co., Ltd. announced that the company’s wholly-owned subsidiary, Pangang Group Chengdu Vanadium & Titanium Resources Development Co., Ltd. and Dalian Rongke Power Group Co., Ltd. recently signed the “2023 Annual Framework Agreement on Vanadium Battery Energy Storage Material Cooperation” in Chengdu, Sichuan.

According to the agreement, both parties shall adopt the cooperative mode of purchasing and selling ammonium polyvanadate raw materials, with an estimated total quantity (converting to vanadium pentoxide) of 8,000 tons in 2023. If the agreements signed are all successfully executed, the total transaction amount is expected to be about RMB$1 billion (US$144 million) based on the current market prices of vanadium products.

This represents approximately 4% of 2022’s annualized global vanadium supply. Dalian Rongke Power operates the world’s largest vanadium battery with a capacity of 100 MW/400 MWh and plans to further increase its capacity to 200 MW/800 MWh following a second phase of expansion.

Vanadium Demand Rising

Demand for low-carbon technology has been growing worldwide. The World Bank Group report, “The Mineral Intensity of the Clean Energy Transition,” projected that demand for vanadium will rise by 189% by 2050. And it has caught the attention of experts throughout the past year.

In an April post, Shovel Stocks said, ” Investors, therefore, should look for vanadium projects with deposits which are either huge, non-TVM, or both.”

The metal is also desirable from an ESG standpoint as it includes non-degrading, fully recyclable electrolyte and carbon-reducing steel alloying applications. Yet, there is a deficit between current supply and demand.

Vanadium price spiked in 2018 to US$30 per pound, caused by a deficit of 8-10 tonnes. Last year, Roskill said it expects “structural deficit and elevated prices to remain for some time, which should incentive a handful of new projects into production over the next decade. ” This isn’t just because of unexpected demand, but projects can take up to five years to start production.

This strain is exacerbated by the war in Ukraine, as 70% of the world’s vanadium supply is currently with Russia and China.

As Simon Hilton of AG Chemi Group pointed out, “unless the war ends soon, manufacturers, raw material suppliers, and consumers everywhere will have to restrict production, manage a shortfall in supply, or simply do without.”

This is where Largo Inc. steps in as a producer outside the typical China-Russia sphere.

Largo is the Largest, Highest-Grade Primary Producer

While Largo only produces 7% of the world’s vanadium, it is the largest, highest-grade primary producer globally and is one of only two producers that supply HP to the aerospace industry.

According to the company, it generates a healthy operating margin with cash operating costs of US$4.30 per pound (US$4.30/lb) in 2022 guidance and rising vanadium prices. In late December, the price of vanadium was US$8.95/lb. This has now risen almost 10%, with the price at US$9.83/lb.

High-purity sales can also add US$1-2 more per pound for Largo’s HP vanadium.

The company runs on two strategic pillars.

• Vanadium pillar: future vanadium operation expansions, ilmenite plant, titanium plant
• Clean energy pillar: delivery of inaugural VRFB for Enel, exploring government subsidies, non-binding MOU to potentially form a JV with Ansaldo Energia

CIBC Equity Research noted that they “view successful execution of Largo’scapital construction projects, as well as [the] advancement of the clean energy business through further customer updates to be potential catalysts in the year ahead.”

Largo also plans to produce ilmenite and titanium pigment from the same mining stream it does vanadium, which is expected to aid in lowering the vanadium cash costs as a co-product.

The company has also signed a non-binding MOU to negotiate the formation of a joint venture with Ansaldo Green Tech to manufacture and deploy VRFBs in the European, African, and Middle East power generation markets.

In a November 11, 2022 note, H.C. Wainwright analyst Heiko F. Ihle gave the company a Buy rating and a CA$19 target price and said, “In our view, some of this value is likely to surface in the near-term since market interest for clean energy investments remains quite high.”

Gordon Lawson et al. at Paradigm Capital also echoed this with its own Buy rating on Largo and a CA$20 target.

Q3/22 Highlights 

While important for its unique placement as one of the world’s largest primary vanadium producers, Largo has been making moves these past few months. In September of last year, Largo’s new venture Largo Physical Vanadium began trading on the TSX Venture Exchange under the ticker “VAND.” This venture provides investors with the opportunity to own physical vanadium themselves, which could increase demand within the vanadium market and aid in Largo’s clean energy strategy. You can learn more about how vanadium will aid in a greener future here.

At the time of the listing, Largo President and CEO Paulo Misk said, “With this enhanced visibility on the TSXV, LPV will do its part to raise the profile of vanadium — a key green transition metal central to clean energy storage and greener steel.”

Then in October, the company released reports for its third quarter of 2022. Highlights of the third quarter included:

• V₂O₅ production of 2,906 tonnes (6.4 million lbs) versus 3,260 tonnes produced in Q3 2021; Lower quarterly production due to a planned kiln and cooler refractory refurbishment and a change of mining contractor, but was in line with the company’s revised production guidance.
• Record high purity V₂O₅ equivalent production of 962 tonnes, representing 33% of the company’s Q3 2022 production.
• V₂O₅ equivalent sales of 2,796 tonnes (inclusive of 351 tonnes of purchased material) versus 2,685 tonnes sold in Q3 2021; Largo completed the first high-purity V₂O₃ sale in Europe in Q3 2022.
• Average benchmark price per pound of V₂O₅ in Europe of US$8.23, a 12% decrease from the average of US$9.40 in Q3 2021; High purity vanadium demand has increased following ongoing recovery from 2020 COVID-19 impacts, which was partially offset by a softening of steel demand in Q3 2022.
• The company advanced construction of its ilmenite concentration plant, including receiving all required metallic flotation structures and building of desliming, flotation, filtration, warehouse, and pipe rack structures; It expects commissioning to be completed in Q2 2023.
• Largo Clean Energy (“LCE”) progressed with the delivery of its Enel Green Power España (“EGPE”) VCHARGE vanadium redox flow battery (“VRFB”), including the manufacturing of all high-power battery stacks required for the system; The company has begun shipping battery stacks and electrolyte to the deployment site in Mallorca, Spain.
• Largo Physical Vanadium Corp. (“LPV”) commenced trading on the TSX Venture Exchange on September 27, 2022, under the symbol “VAND” and launched a new website www.lpvanadium.com.
• Published inaugural Climate Report aligned with the Taskforce on Climate-Related Financial Disclosures (TCFD), providing additional transparency on the company’s approach to climate change.

Multiple Catalysts

Experts expect vanadium to have a bullish market in 2023, and Largo plans to take full advantage of this as the company is highly leveraged to increase vanadium prices. It also has an ilmenite plant that is expected to come online in Q3 2023, and the company expects this new revenue stream to arrive in 2024.

In a November 10, 2022, report, CIBC Equity Research noted that they “view successful execution of Largo’s capital construction projects, as well as [the] advancement of the clean energy business through further customer updates to be potential catalysts in the year ahead.”

The company also plans to iron out its titanium production strategy in three phases over the next six years. The official commencement of this plan is expected in 2025. Largo believes this will give them a US$2.0 billion After-Tax NPV_7% and US$4.2 billion After-Tax Life of Mine Cash Flow (using US$8/lb vanadium price).

Last but not least, Largo’s inaugural VRFB installation for Enel Green Power in Spain is anticipated for quarter two of 2023.

Ownership and Share Structure

According to Reuters, around 70% of the shares are tightly held. 25.21% of the shares are held with institutions. VC/PE Firms hold the most, with 43.81%. Arias Resources Capital Management LP has the most shares at 43.81%, with 28 million shares. West Family Investments is at 8.71%, with a little over 5 million shares, and Grantham Mayo Van Otterloo & Co. LLC is at 7.66%, with 4.9 million. BNY Asset Management has 1.84%, with a little over a million shares, and Baker Steel Capital Managers LLP has 1.27%, with 800,000 shares.

Other notable institutions and firms include Dolefin SA, Legal & General Investment Management Ltd., Konwave AG, Go ETF Solutions LLP, Rezco Investment Council, Blackrock Inc. ETFS Management, Russell Investment Management LLC, Mid-Continent Capital LLC, and BTG Pactual Asset Management SA.

0.67% of stocks are with management and insiders, and 30.31% are in retail. Of Management, President, CEO, and Director, Paulo Misk has the most shares at 0.19%, with 122,510.

As of September 30, 2022, the company has US$62.7 million in the bank.

Largo has a market cap of CA$478.75 million with 64 million shares outstanding. It trades in the 52-week range between CA$6.34 and CA$18.20.

Disclosures:
1) Katherine DeGilio wrote this article for Streetwise Reports LLC. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Largo Inc. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously publishLargo Inc, a company mentioned in this article.

Source: Streetwise Reports  (1/17/23)

Walmart and Sustainable Beef LLC will work collaboratively to increase visibility in the beef supply chain and help ranchers grow their business

Walmart’s investment will help Sustainable Beef LLC open its beef processing facility in North Platte, Neb. The facility is expected to break ground next month and open by late 2024, creating more than 800 new jobs. Walmart’s work with Sustainable Beef LLC will create more capacity for the beef industry.

“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products,” said Tyler Lehr, senior vice president of merchandising for deli services, meat, and seafood, Walmart U.S. “We know Sustainable Beef LLC has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers. This investment provides greater visibility into the beef supply chain and complements Walmart’s regeneration commitment to improve grazing management.”

Sustainable Beef LLC will work with cattle feeders and ranchers to understand critical elements of the supply chain cycle, such as grain sourcing and grazing management. Animal care will follow the Five Freedoms, and there will be a consistent approach to antibiotic use and reporting across herds in line with Walmart’s Position on Antibiotics in Animals, which asks suppliers to adopt and implement American Veterinary Medical Association Judicious Use Principles of Antimicrobials. All of these components will help Sustainable Beef LLC to improve and refine the beef supply chain to provide quality beef for our customers.

“We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner, said David Briggs, CEO of Sustainable Beef LLC. “During this journey, we found that Sustainable Beef and Walmart aligned on continuing to improve how we care for our animals and crops and provide consumers the positive experience of enjoying quality beef.”

Walmart’s investment in Sustainable Beef LLC is the latest step in the retailer’s commitment to increasing access to high-quality beef at an affordable price for its customers while boosting capacity for the beef industry and ensuring long-term economic viability for cattle ranchers.

Disclosures:

1) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

2) Statements and opinions expressed are the opinions of the author (Walmart) and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, approximately 230 million customers and members visit more than 10,500 stores and numerous eCommerce websites under 46 banners in 24 countries. With fiscal year 2022 revenue of $573 billion, Walmart employs approximately 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.

Source: Daniel Laing   (1/11/23)

The defense manufacturer “got off to a flying start in the new year” with this new contract and an increase in its target price, noted a Bell Potter report.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) received a new order for US$11 million ($11M) worth of its counterdrone defense solutions, and consequently, Bell Potter raised its target price on the Australian firm to US$0.34 per share from US$0.32, reported analyst Daniel Laing in a Jan. 9 research note.

“Positively, this contract is from a completely different customer to the Dec. 22 order,  demonstrating significant demand for the company’s products from a variety of sources,” Laing wrote. The previous order also was for US$11M.

With these two contracts, Laing pointed out, DroneShield has about US$16.5M in contracted revenue for 2023. This amount equates to 62% of Bell Potter’s US$26.5M revenue estimate for the defense manufacturer in 2023.

Whereas Bell Potter did not change any of its 2023 estimates for DroneShield after this order, it did update each valuation used in calculating its price target. This resulted in the US$0.02, or 6.25%, bump up. This new target is US$0.34 per share; the current share price is about US$0.01225.

Bell Potter also maintained its Buy recommendation on DroneShield.

The investment and financial advisory firm made these adjustments, Laing explained, “to reflect improved confidence in the sales pipeline and significant derisking of our forecasts considering the contracted revenue for the calendar year 2023.”

Bell Potter also maintained its Buy recommendation on DroneShield.

In other recent news, which Laing relayed, DroneShield successfully deployed its DroneGun Tactical at the recent Brazilian presidential inauguration. It also finished the artificial intelligence-focused Defence Innovation Hub Project.

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: DroneShield Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd., a company mentioned in this article.

Disclosures For Bell Potter, DroneShield Ltd., January 9, 2023

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Source: Clive Maund  (1/11/23)

Technical analyst Clive Maund reviews the 13-year, 3-year, and 1-year chart for Beam Global to tell you why he believes you should add this company on your radar.

In fact, when you look at the company’s website, you might be inclined to think it was started by some members of the World Economic Forum.

On the long-term 13-year chart, which includes the entire history of the stock, we can see that, after a deceptive false start early in 2018 when it looked like it had broken out but then slumped back deep into the Pan base pattern, it really did break out in 2020 and spiked dramatically, but soon reversed into a vicious 2-year long bear market that saw it lose all of the earlier gains.

Zooming in via the 3-year plus chart, we can see that it effectively hit bottom a year ago last January even though it made a marginal new low in October, and what has happened is that the October low made a Double Bottom with the January low.

The duration of this base pattern has allowed time for downside momentum to drop out completely and for the moving averages to drop down close to the price and swing into bullish alignment, and for the first time since early 2020, the 50-day has just risen up through the 200-day, a so-called Golden Cross that very often marks the start of a new bull market.

Zooming in again using a 1-year chart, we can see the Double Bottom base pattern in detail and how the price broke strongly above its moving averages in November, a move that looks like a preliminary breakout, preliminary because it hasn’t yet sustained a breakout above the resistance marking the upper boundary of the base pattern, which is at about US$19 – US$20, but with the averages crossing it looks like the next upleg will succeed in accomplishing this.

The December reaction back to the vicinity of its moving averages is therefore viewed as presenting a good opportunity to buy it ahead of the next upleg and here we should take note that, because of what it is doing, it has a certain amount of insulation from the vagaries of the broad stock market.

A big positive is that there are only 10 million shares outstanding, and of these, only 3 million approx. are in the float.

Beam Global’s website.

Beam Global closed for trading at US$16.86 at 3.03 pm EST on 5th January 5, 2023.

Note that the color green has been used for the charts in recognition of the company’s “green credentials.”

CliveMaund.com Disclosures:
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Disclosures:

1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.

2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author.

Source: Streetwise Reports  (1/6/23)

‘We don’t mine anything,’ says tech company that uses bioleaching to recover precious metals from recovered mine waste.

BacTech Environmental Corp. (BAC:CSE;BCCEF:OTCQB;OBT1:FRA) is hoping to start construction soon on its bioleaching plant in Tenguel, Ecuador.

It has received its construction permit and approval from the government for its environmental impact study on the site but is working through the community consultation phase before the government issues the final environmental permit for the mine.

The problem is, it’s not a mine. Using naturally occurring bacteria, bioleaching makes it possible to get precious metals from already recovered lower-grade ore.

President and Chief Executive Officer Ross Orr said BacTech had asked the government to drop the mine designation, which could let construction start even earlier than expected.

“We don’t mine anything,” Orr said. “In fact, we fill in holes as opposed to digging them.”

Longtime investor in the company Chris Temple, editor of The National Investor, said BacTech “should be on your radar.”

Longtime investor in the company Chris Temple, editor of The National Investor, said BacTech “should be on your radar.”

“2023 appears to be a breakout year potentially for BacTech,” Temple wrote in December. “Discussions/negotiations are ongoing with several potential project financing partners. If something comes to fruition sooner rather than later, we could see construction commence within not many months’ time. And then it should be off to the races.”

The Catalyst: Green Mining Sector Growing

BacTech is building the plant to take advantage of the growing green mining space, a sector research company Markets and Markets said is expected to grow from an estimated US$9 billion in 2019 to US$12.9 billion by 2024.

Pressures from government and environmental groups are forcing companies to raise their capital and operating expenditures.

“As the countries tighten the environmental regulations and the public concern about the mining industry grows, this increases the pressure on these mining companies to minimize their environmental impacts and pay a higher amount to the occurring local issues,” Markets and Markets wrote.

As part of the community consultation phase, BacTech is taking part in presentations and town halls and replying to questions from locals.

Temple and Orr both said they believe the project will be popular with residents and the government.

“An Ecuadorian government wanting (a) solid, long-term business that both employs its citizens (and at some of the highest wages in the country in this case) . . .  and cleans up the environment sees this as a no-brainer,” Temple wrote.

Rock-Eating Bugs

Bacteria drive the process by chewing and oxidizing the sulfides in the rock like mortar in a brick wall. Once that mortar is gone, the wall crashes down. “Our bugs eat rocks,” as BacTech’s website says.

Bioleaching was attempted commercially in South Africa in 1986. There have been more than 20 plants built globally since then.

The site’s construction permit was approved in March, and BacTech signed an Investment Protection Agreement (IPA) with the government in May, giving it a 12-year income tax holiday and international arbitration for disputes.

As of the end of October, about 62% of the equipment for the plant had been procured, the company said.

The plant will have a small footprint, as much of the 100 acres of land bought for it will continue to be used by local farmers. BacTech has agreed to let them keep harvesting 80% of the farm’s thousands of cocoa trees.

For the feed going into the plant, there are 90 small mines in the area that produce significant amounts of arsenic with gold in the area. The plant would process about 30,900 ounces gold (Au) per year. There is potential for expansion; the total availability of materials in the area is an estimated 250 tonnes per day.

The plant would have pre-tax earnings of about US$10.9 million and a two-year payback period, according to data from EPCM Consultores.

Ownership and Share Structure

BacTech recently started trading on the OTCQB Venture Market in the United States under the ticker symbol BCCEF. It continues to be traded on the Canadian Stock Exchange under BAC.

Nearly half of the company, 49%, is held by insiders, management, and strategic shareholders, the biggest of which is Option Three Advisory Services Ltd., which owns 8.98%, or 15.57 million shares, according to Reuters. That also includes CEO Orr, who owns 3.78% or 6.54 million shares, and Board Director Timothy Lewin, who owns 0.57% or 0.98 million shares.

Currently, BacTech is covered by newsletter writers Clive Maund of clivemaund.com, Bob Moriarty of 321gold.com, and Chris Temple of The National Investor. Click “See More Live Data” in the data box below to see what they are saying.

The company has 173.4 million shares outstanding, including 149 million free floating. Its market cap is CA$11.32 million, and it trades in a 52-week range of CA$0.16 and CA$0.055.

Disclosures:

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: BacTech Environmental Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with BacTech Environmental Corp. Please click here for more information.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BacTech Environmental Corp., a company mentioned in this article.