Stockhouse Podcasts
Stockhouse’s investor podcast, where we sit down with the people behind some of North America’s most interesting investment opportunities.
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Episodes
Tuesday Mar 12, 2024
Thursday Mar 07, 2024
Thursday Mar 07, 2024
The Market Online sits down with business writer and market analyst Jeff Nielson to discuss his deep dive on his most recent Thematic Investor Insights report: Why gold is a best-buy early in 2024.
Wednesday Mar 06, 2024
Thursday Feb 29, 2024
Thursday Jun 22, 2023
Thursday Jun 22, 2023
An interview with SKRR Exploration CEO Sherman Dahl and F3 Uranium CEO Dev Randhawa
Wednesday Mar 30, 2022
Wednesday Mar 30, 2022
It’s hard to ignore the fact that electric vehicles are becoming a dominant force in not only the vehicle market but the green energy sector as well. Electric vehicles — or EVs for short — are environmentally friendly and use rechargeable batteries that are powered by nickel, lithium and copper.
Companies like Surge Battery Metals Inc. (TSXV:NILI, OTC Pink: NILIF, Forum) are well-positioned to be a major driving force in the sector thanks to its high-value deposits of clean energy battery metals in key mining jurisdictions such as British Columbia and Nevada.
Stockhouse Editorial recently caught up with Surge Battery Metals’ CEO Greg Reimer to discuss what the company’s been up to and what investors should be watching for going forward.
TRANSCRIPT BELOW
SH: So, Greg, can you give us an overview of your company?
GR: Surge Battery metals is an early-stage mining and exploration company. We focus on the exploration of clean energy battery metals, including nickel, lithium, and copper. And as you know, these items are widely used in batteries for electric vehicles.
SH: What exploration targets is Surge pursuing and where are they located?
GR: Surge is exploring lithium nickel and copper targets in world-class mining-friendly jurisdictions of British Columbia, Canada, and Nevada in the USA. British Columbia, Canada is an extremely attractive jurisdiction for metal mining. We’ve got skilled labor and equipment throughout British Columbia and in 2020 Nevada was ranked the number one mining jurisdiction in the world for investment attractiveness by the Fraser Institute. The Fraser Institute's a think tank here in British Columbia. In the same survey, BC Canada was ranked number 17 out of 77 jurisdictions, and in addition, Nevada is currently America's only lithium-producing state. So we think that we're off operating in some pretty friendly jurisdictions with very good resources.
SH: Can you tell us about your background and a little bit about your board members and advisory board?
GR: I'm a former executive vice president of BC Hydro’s transmission and distribution business group. And I held that position from June of 2010 to about July 2017. BC Hydro is Canada's third-largest electric utility with over $5 billion in annual revenues and has about 32 hydroelectric facilities. I've got a lot of background in the clean energy business, as well as clean energy policy.
On our board of directors, we've got a variety of people, but one fellow in particular who recently joined our board is Bill McDonald. Bill's a securities and corporate finance lawyer and he has been and continues to be a director and officer of a number of publicly-traded companies listed on Canadian stock exchanges, including ours.
On our advisory board, again we've got a number of quality people there, but one individual I'd like to highlight is Chip Richardson. Chip is a strategic advisor with us and an executive with Wedbush Securities. We've also got a number of professional geological advisors on every one of our projects that give us great professional advice.
SH: Can you tell us a little bit about the green energy movement and how search fits into this space?
GR: It's pretty clear that there's a growing demand for green energy metals, whether it be from government policy changes or from commitments by auto manufacturers to develop more electric vehicles, but these decisions all stem from the demand that individuals such as you and I are making for electric vehicles. To complement that in the US, they've committed to building an electric vehicle charging station throughout the US at a cost of $5 billion. And you can see in North America, Europe and China, the electric car market has soared in terms of sales EV sales have doubled globally between 2020 and 2021 and Bloomberg estimates that by 2040, they'll dominate and that's not difficult to see. Lithium, nickel and copper are all important components of EV batteries and Surge has multi exploration targets for each of these metals. And so we feel that we're positioned well to contribute to this growing demand.
SH: So on that note, what would you say makes Surge a good investment right now?
GR: The reason why I think that Surge is a good investment is that it's clear there's a demand for the metals that we have targeted for the transition that's going on from fossil fuels for environmental reasons. So we have focused on nickel, lithium and copper because of the components in batteries used to power these electric vehicles. And we focused our targets in mining-friendly jurisdictions such as British Columbia and Nevada. We've got a number of targets on three different kinds of metal bases, which kind of limits the risk, so to speak, in terms of our exploration futures.
SH: So can you tell us what the company's main priority projects are?
GR: Our focus for the near term is going to be our lithium exploration targets in Nevada state. We have three main targets there with a number of holdings, and we're going to focus on our Northern Nevada properties as we find that we've got some good results coming out of those exploration targets, and we want to focus more of our investment on that particular project.
SH: So can you tell us a little bit about each one of these projects?
GR: In Nevada, our company holds a fairly large swath of land in really, America's only producing lithium jurisdiction with two projects. One in the San Emidio Desert, and one in the Northern Nevada area, the one that we're going to focus on a little bit more. But speaking a bit about the San Emidio Desert project, the project in that area shows a presence of lithium in both active and geothermal fluids and surface salts. So this matches the characteristics of lithium brine and clay deposits in Clayton Valley, Nevada, and in South America. We think that we're well-positioned there and hopeful with this project.
Our Northern Nevada project as I mentioned, is a key project for us going forwards. It's a lithium clay deposit of the type contained in Lithium America's Thacker Pass deposits. And this is one of America's largest known lithium deposits. As well, we think that we're similar to Nevada's Clayton Valley deposit, which is home of America's only current lithium production. Based on the results that we're getting out of our Northern Nevada area, we think that we're fairly comparable to some proven deposits in production in Nevada.
SH: What sets Surge apart from other junior metal exploration companies?
GR: Well, it's kind of a continued theme of what I'm talking about. Surge has six metal exploration targets in two different countries, both world-class mining-friendly jurisdictions. And this kind of greatly reduces the risk for folks that are investing in Surge. Mining and exploration, as you know, can be challenging and cost-intensive with unpredictable results. And so we think that we've kind of mitigated investment risk with the holdings that we have in various metals and in mining-friendly jurisdictions.
SH: So is there anything else about Surge that you would like our investor audience to know about?
GR: What we're trying to make clear to our investors and the broader investment community is that green energy really is the future. And with the increase of electric vehicles on the road, combined with a steadily increasing price for green metals, including lithium, nickel and copper, the ones that support Surge are positioned to be at the forefront of this clean energy movement. As well, Surge’s diverse portfolio extends past the EV market and taps really into the demand for the broader green metals market while at the same time mitigating investor risk. There is an exponential potential demand for battery metals coming, and we see this global shift to green energy and expect to see Surge grow along with the movement.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
Wednesday Jan 19, 2022
Wednesday Jan 19, 2022
Founded in 2016 and headquartered in Vancouver, First Helium (TSXV:HELI,Forum) is a company involved in helium production to meet the growing demand in the high-tech global market. Notably, First Helium is in a strong position to become a leading North American producer of helium as it continues the development of its Worsley Helium Project.
The company has already had a strong start to this still very young year as it continues making progress at its Worsley Helium Project.
Stockhouse Editorial’s Jocelyn Aspa recently had the chance to speak First Helium CEO Ed Bereznicki to catch up on all of the new company developments that investors will be eager to hear about.
TRANSCRIPT BELOW:
SH: Can we first start off with you providing a little bit of an overview of yourself and the company?
EB: Absolutely. So thanks to everyone for joining us today. As Jocelyn mentioned, my name is Ed Bereznicki. I'm the CEO and president of First Helium. So I got involved with First Helium over two years ago. I was introduced to the company through a mutual friend. The founder of the company, as Jocelyn mentioned, had put the company together in 2016, assembled the properties that we currently have and begun raising capital to get First Helium off the ground, so to speak. So myself, my background is engineering. I started off in oil and gas, oil and gas pipelines and midstream and coupled that together with an MBA in finance and accounting. I spent roughly 15 years in investment banking where I raised capital for junior oil and gas and energy growth stories as well as service companies. I also advised on numerous M&A transactions in the space as well. First Helium started out as a private company. We recently went public in July of last year on the back of capital raise of about 12 million in the first half of 2021.
SH: The company’s having a strong start to the year — and the last few months in general — what’s been happening with the company that our audience might want to know about?
EB: Yeah, I think Jocelyn the key thing with First Helium is that it was a private company that had been operating for quite some time and so prospective helium opportunities had been evaluated already, land had been bought. There was a certain amount of seismic purchased, the company acquired a well with helium in it is our 15 of 25 discovery well, so there were a lot of good things that had happened well prior to the company becoming public in July. So what you're seeing I guess in the first six months of First Helium being public is we're getting to work on our properties, beginning to drill, and starting to share new news. So new developments, if you will that we've been working on for quite some time and so some of this news is just starting to hit the market - and in the helium exploration and development game, there's a tremendous amount of geologic evaluation that goes on reviewing seismic data and all these sorts of things and so with much of that work already done, we're now able to hit the ground running, so to speak drilling these opportunities and beginning to deliver of value to shareholders.
SH: It was recently announced that the company delivered sales from over 1,100 barrels of light crude oil, which amounts to over $90,00 in sales revenue for the company. Can you walk us through this news and what makes it so significant for First Helium?
EB: Sure. So Jocelyn this oil well discovery that we found is our first expiration well or second, I guess, to the 15 of 25, it's called the 1 of 30 well, it was our first exploration drill based on the geologic evaluation we undertook. It's a proof of concept on our geologic model. We found a tremendous oil well and we expect that we'll be producing roughly 400 barrels a day from that well, which amounts to annualized cash flow for us in the order of about $6 million per year. So it really sets the company up nicely for further helium exploration and development work in the area.
SH: How will this set the stage for the company for the rest of the year?
EB: Yeah, I think it's important for us, (for) investors to understand that we are going to continue you to drill for helium in the Worsley property, as well as some of our other areas but there is a bit of cash flow now and we will be able to capture that value for shareholders and it will give us some financial flexibility moving forward as we plan out the balance of the year in terms of our drilling plans and other capital expenditures.
SH: This announcement led to a nice bump in the company’s share price and was actually the company’s best trading day in some time - why do you think that is?
EB: I think for many investors, it was recognition that there was not only a drilling success but there was immediate value to be captured from the oil well in that cash flow would be generated immediately and that the company could put that to work going forward here. The company's currently in the process of constructing what we call an oil battery to help us produce the one of 30 well, which should be complete by early February and we should be cash flowing producing and cash flowing from that well in February this year. I think for investors, it was recognition that, that value wasn't fully reflected in today's stock price.
SH: What makes First Helium a good investment right now?
EB: Just building on my last point, when we take a look at our 15 of 25 helium discovery well, independent third-party evaluators have taken a look at that well and given the company a contingent resource estimate on that well, and provided a value on that well alone of approximately $15 million net present value discounted at 10%. That approximates to roughly 23 cents a share in value, with the addition now of the one of 30 oil wells at 400 barrels per day using industry-standard metrics of cash flow at the field level So pre corporate level of roughly three times and 6 million of annualized cash flow, that adds another 18 million of potential market value. So put those two together, you’re over $30 million in market value on 65 million shares outstanding, that's over 50 cents in asset value per share and I haven't even started to talk about our exploration opportunities, which I feel are coming along in the stock price for free today with where we're trading. So the bottom line is we're a really good investment with substantial underlying asset value and a tremendous amount of future helium exploration upside potential.
SH: Can you talk about the company’s business model and how it’s able to generate money?
EB: So Jocelyn as I mentioned, and you pointed out earlier, we are a helium exploration development and production company. Currently, we are producing oil, as I pointed out - our helium production,w expect to put online early next year when we build a helium processing facility. So the model really is to take our cash flow from our oil well, plus our cash reserves to continue to drill for helium, bring that into production to generate cash flow, and in the meantime we're able to augment that cash flow with our oil well discovery.
SH: Moving forward, how does First Helium fit into the helium market and what makes it stand out from its competitors?
EB: Yeah, I think the difference for us Jocelyn is where we are located geographically, and exploring - our core Worsely property not only provides great helium exploration opportunity but it does have some hydrocarbon by-products that we're able to produce alongside any of our helium finds. So it provides an added level of cash flow for the company, and we're not exploring for just for helium, or relying just on helium explorations to clarify, we've got an added stream of revenue that de-risks the company's exploration program a little bit. In addition, though, we do have a Southern land block in Southern Alberta that I haven't spoken a lot about. It's a larger exploration play close to many of our public company peers who are exploring in Southern Alberta and Southern Saskatchewan. We've got a tremendous amount of seismic that we acquired as a result of a transaction we did there to get that land. We have evaluated, and we've got a couple of drill locations ready to go for this year. So that's an exciting component of exploration to more de-risked kind of bread and butter development play in our Worsley area.
SH: It’s still early in the year, but are there catalysts over the course of the next 12 months investors should be watching for?
EB: Yes, Jocelyn. So in the first quarter of this year, we'll be drilling up a follow-up well to our one of 30 testing helium horizons as well as potential oil accumulations, again as a follow-up to our one of 30 well. During the balance of the year, we'll be looking at another two to three Wells in the Worsley region and potentially in Southern Alberta as well. The other thing investors should look for is we are finalizing arrangements on a helium processing facility up at our Worsley property and that ties back to my earlier point where I said we'd like to be or we're planning to be producing helium into first quarter of next year from the Worsley area.
SH: Is there anything else you'd like to add before we end our conversation today?
EB: I think all I would say Jocelyn is the helium sector, in the junior helium growth sector in Canada and the US, North America, if you will, is an exciting growth sector right now - there's a tremendous amount of opportunity for junior explorers in North America to continue to supply North American helium demand as we move forward here, and we at First Helium (are) very proud to be a part of that sector, and we think we offer a great value proposition for investors today. So on that note, I'd like to thank you Jocelyn for your questions and time here today and for allowing us to share some information in respect of First Helium.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
Thursday May 27, 2021
Thursday May 27, 2021
When Stockhouse Editorial last caught up with Green River Gold Corp. (CCR) (CSE.CCR, Forum) and its CEO Perry Little last December, the company was, like so many others, adjusting to doing business in a COVID-19 world but at the same time keeping busy with a series of new property acquisitions, partnerships, and M&A’s.
Founded in the summer of 2017, Quesnel, BC-based Green River Gold Corp. is a publicly-traded mineral exploration company that has a controlling interest in a wide variety of projects in this historic gold producing region. In addition to exploring its highly prospective hard rock gold property in the historic Barkerville area of B.C., Green River rents placer claims to placer gold miners for cash rent, in lieu of a royalty. The Company also sells mining supplies and equipment to placer miners from its 6,000 square foot facility also located in Quesnel. The Company is even a limited partner in a partnership that purchases raw placer gold directly from miners.
In this intriguing metals & mining podcast, Stockhouse Media’s Dave Jackson was rejoined by Mr. Little to get investors and company shareholders up-to-date on the latest and greatest hits from CCR.
TRANSCRIPT BELOW:
SH: As I alluded to the intro, it’s been a busy last six months for CCR and things look to be ramping up big time in the Cariboo this summer. Can you give us an update on what’s been happening with Green River Gold?
PL: Hi Dave. It is nice to be back. We have had a very busy stretch, actually going back over a year now, to about the time of the first podcast we did. We have moved the ball forward on every aspect of the business over that time….and we have a lot of aspects.
We are closing our $700,000 financing this week as well. It was originally set at $500,000 but we had a pleasant surprise recently with some sudden interest out of Europe and we were oversubscribed. A German newsletter writer has picked up on the story and is covering us for the German, Swiss and Austrian markets. It is good to be noticed.
SH: Perry, you’ve just announced commencement of the U-A-V-mag airborne drone geophysics survey on its Fontaine Lode Gold Project. These kind of geo surveys don’t come cheap. So what’s the high-end potential of what lies beneath surface here?
PL: Well, as you know, we really took our time, and we were very deliberate with the acquisition and staking of that property. In my days as a stockbroker, I had followed the Barkerville gold story for over 15 years and I had also been following our other neighbour, Omineca mining with their Wingdam project, for a long time. I was quite familiar with the area before we started getting serious looking for property in 2017. It wasn’t until March 2019 that we finally made the acquisition of the core part of the property and staked all of the surrounding ground that we wanted. In total we have about 90 square kilometres of hard rock claims that are contiguous to the Barkerville Gold Mines property.
Our timing was a little lucky. One month after we closed on the acquisition, Osisko took over Barkerville Gold Mines and began to fast track the Barkerville property to production. That brought some serious capital to the neighbourhood and things really heated up. Omineca staked a bunch of additional property shortly after that and both companies have been moving forward quickly with exploration and development. Our property is bookended by Osisko and Omineca.
Osisko’s project has an indicated resource of 3.2 million ounces of gold and an inferred resource of 2.72 million ounces of gold. We are definitely in a good neighbourhood and we got in before the prices went up.
Geologically speaking, the Fontaine property straddles an 18-kilometre length of the Quesnel, Barkerville and Slide Mountain terranes. Between the early 1970’s and early 1990’’s, sporadic work was carried out on the property, consisting of prospecting and sampling bedrock and overlying soil horizons. Several showings with anomalous gold and silver values were identified as a result of this work.
The project has not really seen some of the modern exploration techniques. We should get the results of the UAV-MAG geophysics survey within a few weeks. The survey will cover 67 square kilometres with 1,500-line kilometres with 50 metre spacing. The drones can fly at treetop level to give exceptional detail. We expect that this will help us to identify high priority drill targets for an anticipated drill program. We are very excited to see the survey results in a few short weeks. We will be announcing our 2021 surface and near-surface exploration programs for the property shortly.
SH: In a recent Stockhouse article, you detailed how – with renewed exploration – CCR is now the at the epicentre of the original Cariboo gold rush. How so?
PL: The original Cariboo Gold Rush started in 1860 and was centred around Barkerville which is only a few kilometres from our Fontaine Project. At its peak in the 1860’s and 1870’s, Barkerville was one of the largest communities in Western North America. Historic gold production in the Cariboo since the original gold rush has been about 3.8 million ounces, roughly half of that from placer deposits and half from lode deposits. Placer and hard rock activity are both picking up again. Our business model allows us to benefit from the increased levels of placer activity while searching for the big lode gold score.
There is a lot going on in the area again, for the first time in decades really. Osisko’s appearance on the scene late in 2019 has sparked interest in the Cariboo. Omineca is actively drilling on the other side of us as well. I believe it is the beginning of a new gold rush in the area. Much of the Cariboo has not really been explored using modern exploration techniques. The old-timers got the easy-to-reach placer gold but did not have the technology to go deeper or to explore as effectively for lode gold. There is a lot to be discovered yet. The sources of the placer gold found on many of the numerous creeks and rivers in the Cariboo have yet to be located. The hunt is on.
SH: Perry, the Company looks set for strong growth in 2021. How are you placed to expand operations?
PL: This initial Fontaine exploration is just the start of what we plan to do with that property, but we have several other irons in the fire as well. When we acquired the Fontaine project, we were aware of some interesting nickel showings on a portion of the property. Recent developments have highlighted that potential and we will have more to say about that over the next few weeks. In February we announced the acquisition of the 1,214-hectare Kymar Silver Project near Invermere B.C., and we just announced our initial exploration plans for Kymar for this Summer. It has some interesting historical production, and we are excited to start work on that one as well.
As you know, we are more than just an exploration company. We got started on a number of different gold-related business ventures over the past couple of years and they are all expanding this year.
SH: That brings me back to what I had mentioned earlier that the company really has developed a one-of-kind business model in the metals & mining space. Can you tell our investor audience some of the inherent benefits in it?
PL: Sure Dave. I followed and invested in a lot of junior mining companies over a couple of decades as a stockbroker. One of the issues that most junior miners face is the constant need to raise financing to pay for exploration, and the dilution that comes with it. From the beginning, I looked to find businesses related to gold mining that could generate cash flow to offset some or hopefully all of that reliance on the often-fickle capital markets. So far, we have started several businesses that service the hundreds of placer miners that are active in the Cariboo. We retail placer mining supplies, and we also sell larger placer mining equipment, much of which is manufactured by a related private company right in our shared building. Our building is located in Quesnel, in the heart of the Cariboo district and an easy commute from most of our mining properties. We are a Limited Partner in a partnership which purchases raw placer gold from the local miners and sells it to refiners and other end users. We also provide consulting and permitting services to the local placer mining community.
Those businesses allow us to maintain a talented local workforce and give us year-round access to our Cariboo properties from just down the road. Our exploration costs are reduced by having local geological expertise and a local labour force.
Ultimately, the idea is to generate enough cash flow from our other businesses to fund much of our exploration costs internally.
SH: Part of your business model is really unique in the mining space – acquire and develop placer mining claims and then leasing them out. Can you explain this in detail to our audience?
PL: In simple terms, we are a placer mining company that will never do any placer mining. Think of it as a modified royalty model applied to placer gold mining. Most placer mines are small, mom and pop operations that are chronically underfunded. We have 24 square kilometres of placer mining claims and we have a number of claims that are permitted and ready to mine. Learning from our own experience of placer mining through a private company, we came up with a model that works to allows placer miners to get mining with less start-up cost. It also gives Green River access to safe cash flows. We rent out the placer claims for a monthly cash rent based on expected gold recoveries and the placer miners take the exploration risk and develop the claims. We put up the reclamation bond. The miner saves the up-front cost of purchasing a claim and putting up the bond. We maintain ownership and get the benefit of the development work done by the renters and any exploration success that they have.
It is similar in many ways to land development, except that in our case, we acquire the land, permit it, and somebody else pays us to do the development. The amount of rent we receive is by far the lesser part of the benefit we receive. The increase in the value of the mining property as it gets turned into an operating mine, from a piece of raw forest, is the main benefit. If the miner is successful in discovering economic quantities of placer gold, the value of the claim will go up even more. We tend to own blocks of claims in the same vicinity so any mining success will push up the value of the proximate claims as well. Any money spent by the miner exploring or producing on our claims also extends the expiration date on the claims without us having to spend any money on assessment work. It works for the renter and it works for us.
SH: It would be remiss of me not to mention your stock has had been on a bit of a roller coaster ride over the last 12 months. What can you tell our investor audience regarding the current valuation of your stock and why you think it’s a good buy right now?
PL: With a little over 54 million shares outstanding, we currently have a market capitalization of less than $4 million. For that price, investors are getting our highly prospective 90 square kilometre Fontaine lode gold project, which is right next to a gold mine that is expected to be in production in 2023. They also get 24 square kilometres of placer gold claims, a retail business, a stake in a gold trading enterprise, our Quesnel Nickel Project, and our Kymar Silver Project. We also have a 6,000 square foot combined office, retail, and manufacturing building that serves as home-base for all our businesses. We have local employees and consultants who live within an easy daily commute of all our Cariboo properties.
All that for less than $4 million, and we are just getting started. We have a lot of other ideas in the works.
For more information on the company and investment opportunities in Green River Gold Corp., visit their website at www.greenrivergold.ca.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.