Focused on feeding the EV boom with battery metals, Global Energy Metals understands the value of their Nevada location

Without doubt one of the biggest disruptions this decade will be the rapid move to electric vehicles (EV). As reported here, UBS recently forecasted US$100kWh batteries by 2022, EV/ICE (Internal Combustion Engine) parity by 2024 and that “there are not many reasons left to buy an ICE car after 2025”. Three of the key metals in demand to feed the EV boom will be cobalt, nickel, and copper. Today I discuss a company that has all three as well as some gold potential. The Company still has a very low market cap and has 3 combined projects in safe countries. These include a recently purchased project (Lovelock Mine & Treasure Box) in Nevada only 150 kilometers from Tesla’s gigafactory.

That company is Global Energy Metals Corp. (TSXV: GEMC | OTCQB: GBLEF) (‘GEMC’). Their focus is to build a portfolio of battery metal assets across key locations such as the USA, Canada, and Australia.

GEMC’s 3 projects are:

  • Lovelock Mine & Treasure Box Projects – Nevada, USA (85%)
  • Werner Lake Cobalt Project – Ontario, Canada (70%)
  • Millennium Cobalt Project (flagship) and Mount Isa Cobalt-Copper-Gold Projects – Queensland, Australia (100%)

GEMC’s 3 combined battery metal projects – USA (Lovelock Mine & Treasure Box), Canada (Werner Lake), and Australia (Millennium & Mount Isa)

Source

The Lovelock Mine & Treasure Box Projects in Nevada USA (85%)

In a very exciting and strategic move recently announced, GEMC has issued shares and made a cash payment as consideration for its acquisition of an 85% interest in the Lovelock Mine and Treasure Box Projects. The properties will be held in GEMC’s newly established U.S. Battery Metals Corp., a new U.S. listed vehicle and wholly owned subsidiary of GEMC.

The Lovelock Mine and property consists of approximately 1,400 acres (567 hectares) in the Stillwater Range of Nevada, USA. It was discovered by George Lovelock and Charles Bell in about 1880 and saw limited production of nickel, copper and cobalt beginning in 1883. GEMC reported that “the general average of the 200 tons shipped in 1886 averaged 14% cobalt and 12% nickel“, which is extremely high grades. After intermittent production no further production from the Lovelock Mine is known for well over a century. Several of the rock samples collected in 2017 showed strong enrichment in cobalt, nickel and copper.

The Treasure Box Project hosts mine workings from limited copper production, which occurred until early into the 20th century. A reverse circulation hole drilled on the Treasure Box in 1976 returned 1.55% copper over 12.2 metres from a depth of 25.9 to 38.1 metres.

Both projects are at the very early stage but appear to have good exploration potential based on their history. A bonus is their location in mining friendly Nevada, USA, and just 150 kilometers from the Tesla Gigafactory.

The Lovelock Mine & Treasure Box Projects are located effectively on the doorstep of Tesla’s Gigafactory in Nevada just 150kms away

Source

Werner Lake Cobalt Project in Ontario, Canada (70%)

The Werner Lake Cobalt Project has an Updated NI 43-101 (2018) Indicated Mineral Resource of 79,400 tonnes at 0.43% Co not including the 2018 drill program. This is an excellent grade for a western located project. There is also exploration potential for copper and gold.

Millennium Cobalt Project and Mount Isa Cobalt-Copper-Gold Projects – Queensland, Australia (100%)

The Millennium Project is a significant cobalt-copper deposit which remains open for further expansion. There is a historical JORC (2012) Inferred Resource estimate which showed grades of 0.14% Co, 0.35% Cu and 0.12g/t Au (using CuEq cutoff of 1.0%). This historical resource estimate is not yet NI43-101 compliant. GEMC intends to upgrade this resource to a current NI43-101 complaint resource.

The Mount Isa Projects include Mount Dorothy and Cobalt Ridge. Early stage drilling results included 7m @ 0.14% Co, 2.55% Cu, and 2m @ 0.12% Co, 0.13% Cu at Mount Dorothy, and exploration rock chip sampling results of 0.31% Co, 3.63% Cu, 1.25g/t Au at Cobalt Ridge.

Closing remarks

GEMC has a current market cap of just C$2.8m. Perhaps the reason the market cap is so low is that the company has had to endure the past 2.5 year cobalt bear market, and has only recently made the USA acquisition.

Recently, companies with USA EV metal assets have done very well as we saw with Piedmont Lithium, Lithium Americas, Westwater Resources, and many others. For investors that are positive on the outlook for EVs and the key EV metals (cobalt, copper, nickel) then GEMC should definitely be on your radar. Plus there is always the chance of GEMC finding gold.




dynaCERT’s Jim Payne on how “HydraLytica™ is like a freight management system on steroids”

InvestorIntel’s Tracy Weslosky speaks with Jim Payne, President, CEO and Director of dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF), about dynaCERT’s expansion into the FreightTech industry with its HydraLytica™ Technology. “FreightTech is a perfect fit with what we do,” Jim said. “HydraLytica™ is like a freight management system on steroids. We have taken that to a whole new level.”

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Jim went on to say, “with our technology we can not only track the truck and track fuel efficiencies and reduction in emissions but we can also track everything from maintenance of a vehicle, driving habits and where they can improve driving habits, we can also show improved truck routes to save time and fuel and also accidents report.”

Jim quoted from a study that stated that nitrous oxide is more harmful to the climate than CO2, and explains to the listener how dynaCERT reduces nitrogen oxide from a diesel engine. Adding, “We are a Canadian company with a global solution to reduce pollution.”  It is important to note that they have  recently received the highest rating from United Nations Sustainable Smart Cities.

To watch the full interview, click here

To learn more about dynaCERT Inc., click here

Disclaimer: dynaCERT Inc. is an advertorial member of InvestorIntel Corp.




Exro Technologies on making EV motors smarter, through next generation power electronics

It’s a revolution!

If you believe the pundits, the internal combustion engine will be replaced in short order by electric vehicles (EV)…that’s if you believe the pundits. BUT we can safely assume that the trend towards EVs is unstoppable.

Exro Technologies Inc. (TSXV: EXRO | OTCQB: EXROF) is working to make sure that happens. But it turns out, it’s not as easy as you thought. Just like the evolution of the internal combustion engine, electric motors also need to evolvethank goodness for technology.

Remember when cars used to have a carburetor? Darned things too…carburetor jets, bowl floats, one or two barrels etc. And how did you get better performance? You put on a bigger carburetor! Or two. Or more, all leading to way better performance but other complications (ask me how I know…). Then technology saved us and the same engine from the 1980s that received digital computer control (fuel injection etc.) now gets 30% or better fuel economy more horsepower and all sorts of adaptive gewgaws to make driving even more fun, or economical or whatever you need it for.

Surprisingly, the electric motor for transportation also needs a similar technology evolution. The basic design (still valid) of 100+ years ago can be improved and Exro is doing it. The company has been granted 17 patents with another 18 patents pending, so this team clearly knows what they are doing.

What is it? Exro makes electric motors smarter, through next generation power electronics. The company has developed a new controller that they call the “Coil Driver”. It dynamically enables a single electric motor to have multiple power settings using patented hardware and software. In real-time, measuring torque demand, one motor is now two different motors in the same case. The Coil Driver can automatically select the appropriate configuration so that torque demand and efficiency are optimized. A single motor can repeatedly change configurations on-the-fly and under demand to optimize performance at low speed or high speed. This is instead of having two motors for low or high-speed applications, gearboxes or other expensive technologies.

Wherever electric motors are used, this technology is applicable. It can be as small as scooters/e-bikes to electric busses and long-haul trucking (large) and everything in-between. The company has entered into eight commercial partnerships with leading companies in all of these segments. Imagine, a high-performance electric motorcycle, or an electric snowmobile. These are just two examples of end users of the technology, as the company continues to move forward with proof of concept across all segments. A widely anticipated application will be for use in EVs – the Coil Driver for an electric vehicle in Mexico City is expected soon.

Exro became public through a reverse takeover in 2017 and recently moved to the TSX Venture Exchange (TSXV). The company also raised new equity in July 2020, so the Company is funded for future development costs and ongoing R&D. While the immediate focus is transportation related, Exro is also making significant strides in battery management technology and generator technology. Generators are just like electric motors and can be similarly optimized to gain efficiency and performance, particularly in wind turbines. Thirdly, the company can use its intelligent energy management to improve battery technology to manage the charge and discharge levels of every cell in a battery pack. Using continuous adjustments, this will provide for a more efficient and longer life span, particularly given the concern for battery life and replacement (and recycling) in EVs.

The company currently expects to be EBITDA positive in the second half of 2023. It currently has a market capitalization approaching C$300 million, although this has seen a near-double as the company has had some positive news in the past two months. While it is too early to say that this is the company to own in your portfolio, management strives to be best-in-class through disruptive technology, perpetual innovation and a focused mission for intelligent electrification. They have clearly figured out electricity and multiple commercial partnerships with global corporations in everything from e-bikes to buses and long-haul trucks makes them the one by which all others will be measured.




Avalon Advanced Materials Separation Rapids Lithium Project progresses, EV investors look north for critical materials

It is not very often that an investor can buy a company with exposure to both lithium and key magnetic rare earths. One company that offers exposure to both is Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF) (‘Avalon’). Avalon has five critical materials projects across Canada, providing investors with exposure to lithium, rare earths (neodymium, dysprosium), cesium, tantalum, feldspars, tin and indium.

With the electric vehicle (EV) boom set to take off, companies such as Tesla are planning to grow EV production by 50%pa reaching 20 million new EVs pa by 2030. At Tesla Battery Day Tesla suggested an aggressive industry wide target of 10TWh of Li-ion batteries pa by 2030 to meet EV demand (assumes a switch to 100% EVs).

Tesla says that’s a 100 fold increase on 2019 levels. This suggests demand for EV metals (such as lithium and the magnetic rare earths) looks likely to surge this decade and create a super-cycle for the EV metal miners.

100% electric transportation requires 100x growth in EV battery production this decade

Source: Tesla Battery Day video

Avalon’s focus projects for lithium (Separation Rapids, Lilypad) and rare earths (Nechalacho)

Source

Avalon’s Separation Rapids Lithium Project is located 70 km by road north of Kenora, Ontario, Canada. It holds one of the largest “complex-type” lithium-cesium-tantalum pegmatite deposits in the world. A PEA was completed in 2018 resulting in a pre-tax NPV8% of $156m, post tax IRR of 22.7%, CapEx C$77.7m with a 20 year mine life. In a recent news Avalon has been doing metallurgical test work with the overall objectives of reducing costs, improving recoveries and optimizing lithium product quality. Avalon has previously developed a proprietary process flowsheet to produce a high purity lithium hydroxide product from petalite. The process limits waste by recycling of the sulphuric acid solvent. Avalon and partners are now optimizing the final stages of the process, which involves the use of electrolysis to produce lithium hydroxide. The results will enable finalizing equipment selection and design. A further 2,500 tonne bulk sample extraction program is set to commence next. With Ontario Premier Doug Ford recently announcing Ontario’s interest in establishing new battery materials supply chains in the province, Avalon is investigating collaborative opportunities to establish a lithium processing facility in Northwestern Ontario.

Avalon’s Lilypad Cesium Property, located 150 km northeast of Pickle Lake, Ontario, is an exploration stage project with cesium-lithium-tantalum mineralization. It has the potential to be a secondary lithium supply source for Avalon. Avalon has recently re-activated the Project due to increasing demand for cesium. Planned follow-up work will initially involve mineralogical and analytical testwork, which will be followed by metallurgical process testwork to identify the most efficient methods for concentrating the pollucite ore and recovering by-product tantalum and lithium.

Avalon’s flagship Nechalacho Rare Earth Elements Property is located at Thor Lake, Northwest Territories, Canada. Avalon’s main focus is the deeper HREE Basal Zone at the property. The Basal Zone retained by Avalon contains a rich polymetallic rare metals resource, with potential for economic recovery of several rare earth elements. A Feasibility Study was completed in 2013 on the Basal Zone resulting in a pre-tax NPV10% of $1.35 billion (post-tax NPV10% of $900m). The post-tax IRR was 19.6%. CapEx was $1.575b. Sales of the five critical REO (neodymium, europium, terbium, dysprosium and yttrium) account for over 82% of the separated REO revenues. Avalon has also retained a 3% NSR on the near surface T-Zone and Tardiff Zone at the Nechalacho Rare Earth Elements Property, bought by Cheetah Resources back in 2019. Avalon could also potentially collaborate with the newly planned SRC Rare Earths Processing Facility to be established in Saskatchewan with plans to be operational by late 2022.

EVs are coming in all shapes and sizes and they will require huge amounts of EV metals such as lithium and rare earths

Avalon Advanced Materials Inc. stock is up 87.5% over the past year and trades on a market cap of C$26m.




H2O Innovation awarded more contracts on the heels of record FY2020 fourth quarter results

In a news just released last week H2O Innovation Inc.‘s (TSXV: HEO | OTCQX: HEOFF) (‘H2O Innovation’) subsidiary, Utility Partners, was awarded a new 3 year operation and maintenance (‘O&M’) contract in Florida and a 1 year renewal of an existing contract in New York State. Equally as significant is that these contracts, with a total value of C$5.1m, bring the O&M backlog to C$84.9m. That’s a rather impressive sign of demand, especially relative to the size of H2O Innovation, which achieved C$133.6 million in FY 2020 revenue.

Utility Partners is US-based and specializes in the operation of water and wastewater plants operating more than 200 utilities in two Canadian provinces and twelve US states, for all of its municipal customers. H2O Innovation acquired Utility Partners in 2016 for C$22.5m. Over the years H2O Innovation has delivered more than 15 membrane filtration projects to Florida, but this is the very first O&M contract. Utility Partners services include operations, maintenance, and management of public works, water, wastewater, and utility billing systems. On December 1, 2020, Utility Partners will change name to H2O Innovation. Although the name of the operator will change, the organization and staff will remain the same.

VP of Operations Bill Douglass said:

“We are very proud to have been awarded this major contract in Florida. In addition to entering a new territory, we will also be able to take advantage of cross-selling opportunities and synergies with the projects carried out in this State, by H2O Innovation, over the past few years.”

H2O Innovation specializes in all types of water treatment with a focus on North America

Source

And who is H2O Innovation Inc.? H2O Innovation designs and provides state-of-the-art, custom-built and integrated water treatment solutions based on membrane filtration technology. H2O Innovation provides multiple water solutions in the areas of drinking water, wastewater, water reuse and recycling, desalination, and water solutions for the oil & gas industry.

H2O Innovation’s financials and forecast financials

Source

As we all know water, food and air are our three most valuable commodities. Water in particular is in short supply in many countries and regions around the world. This means H2O Innovation has plenty of runway for potential growth ahead.

The world has an ever growing demand for clean water

Source

The company’s just released results for fiscal 2020 (June 30 year-end) showed significant revenue growth, with “top-line revenue of $133.6 million was up more than $15 million from $118 million the previous fiscal year.” H2O Innovation offers cleantech and technology driven investors exposure to the growing water treatment sector.




Can the palladium market continue to defy gravity?

Palladium prices have risen from US$316/oz in January 2016 to US$2,329/oz today, representing an impressive 637% gain in just under 5 years. The big question investors want to know is where will the prices go from here? To get a feel for the answer, today I look at palladium supply and demand and what the industry expects.

Palladium prices have had an impressive rally since January 2016 up 637%

Source

2020 palladium supply vs demand forecast

Palladium supply decreased in 2020 due to COVID-19 related supply disruptions from South Africa, but palladium demand also weakened in 2020 due to a slowdown in conventional car sales due to COVID-19.

According to the world’s largest palladium producer, Norilsk Nickel, 2020 global palladium supply is forecast to fall 14% and demand is forecast to fall 16%. Effectively balancing a market that was previously in deficit. This forecast suggests that palladium prices should remain relatively high in 2020, especially if auto demand continues to pick up in Q4, 2020.

Palladium (Pd) supply estimated to fall 14% and demand to fall an estimated 16% in 2020

Source

Mid term palladium demand continues to look strong as tightening auto-emissions rules are requiring larger volumes of palladium in exhaust systems (75% of palladium demand comes from catalytic converters). By 2030 onward 100% battery electric vehicles (EVs) may be taking significant market share that palladium auto demand begins to decline. At that point the EV and battery metals such as lithium, cobalt, copper, nickel, manganese and graphite should be doing very well as EV sales start to dominate.

In the mid term new palladium supply is expected to continue to be slow to come online as palladium is usually mined as a by-product of nickel or platinum mining. In the long term high palladium prices will most likely lead to more supply and some price reductions for palladium.

Best palladium performers on Sept. 30, 2020 from InvestorIntel’s Palladium Watchlist

Source

A palladium company we have been watching lately is Canadian Palladium Resources Inc. (CSE: BULL | OTCQB: DCNNF | FSE: DCR1). Canadian Palladium is an exploration stage company that has a 100% interest in the East Bull Palladium Property in the Sudbury Mining Division in Ontario, Canada. The company recently found high grade palladium at their East Bull Palladium Property. Canadian Palladium also owns the Tisova Copper/Cobalt Project which gives them exposure to the EV metals market in the longer term. You can click the link below to read more.

The palladium market continues to perform very well in 2020 despite COVID-19 related supply and demand issues. In the short term palladium demand should continue to recover as global auto sales recover. In the mid term palladium demand is expected to remain strong due to tightening emission standards globally. Norilsk Nickel forecasts the medium term outlook for palladium as neutral and the long term outlook as positive. Longer term, by 2030, palladium demand should begin to fall as we move faster to EVs and conventional internal combustion Engine (ICE) car sales decline rapidly.




dynaCERT expands into the FreightTech industry with new software offering

Decision to enter the FreightTech industry seen as an “evolution of services that fit very naturally with dynaCERT

dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF | FRA: DMJ) is best known for their Carbon Emission Reduction Technology (CERT) for use with diesel engines. Their flagship product is HydraGEN™, an electrolysis unit that produces H2 and O2 gases to optimize the diesel fuel burn, resulting in a 6-19% increase in fuel economy and a 50%+ reduction in emissions.

With most fleet and logistics companies now using software to monitor their fleet’s activities and performance, dynaCERT has added a new service option called HydraLytica™ to its proprietary suite of FreightTech software applications. The company sees this as a supplementary evolution of services that fit very naturally with dynaCERT ’s fuel-saving and emission-saving know-how. HydraLytica™ not only monitors the standard variables but offers much more, especially in relation to fuel economy, driver performance, and greenhouse gas emissions monitoring. The new FreightTech solution reports the data in a simple and understandable mobile application, and provides recommendations for important fleet optimization such as fleet management, route planning, driver safety, and load management.

HydraLytica™ Telematics system is a win-win for both fleet operators and dynaCERT

dynaCERT’s HydraLytica™ measures fuel savings in real time. While it is designed to work with dynaCERT’s HydraGEN™, it will be available to all potential customers and not restricted to just HydraGEN™ users. In an announcement this week dynaCERT explains how, in combination with dynaCERT’s software developer Corsario Ltd. and its marketing arm GP LogiX Inc., it plans to greatly expand the scope of applications to respond to the growing industry needs of logistics companies, and the broader trucking management software ecosystem.

The new addition of HydraLytica™ is a big plus for fleet operators. It means they can better monitor more variables, especially those in relation to fuel efficiency and emissions.  It is also a big win for dynaCERT, as HydraLytica™ users can see for themselves the value proposition of dynaCERT’s products such as HydraGEN™. It also means a subscription service revenue stream for dynaCERT.

Source

Usually the biggest expense for fleet operators is fuel and labor. dynaCERT’s HydraLytica™ allows operators to better monitor both fleet fuel efficiency and driver performance. Monitoring can be done live with real time data on either a PC or smartphone.

“The delivery of our solution is through a managed service, where, not only is the raw data available to the user, but the software monitors industry-based Key Performance Indicators comparing real time data streams to industry averages and reporting areas of deficiency”, says dynaCERT. “Our FreightTech solution reports the data in an easy to use and easy to understand mobile application as well as providing recommendations on numerous matters such as fleet management, route planning, driver safety, and load management.”

Marketing of HydraLytica™ by GP LogiX Inc. is already gaining traction with a number of companies already utilizing the software platform. These include Day & Ross, Ottaway Motor Carriers, Drisco Carriers (based in the USA) and Stevens Brothers Trucking (based in the USA).

Several new deals for HydraGEN™

In the past two months dynaCERT has continued to successfully commercialize their HydraGEN™ technology. This includes:

  • September 8, 2020 – A deal to equip diesel powered vehicles of the City of Woodstock (Ontario) with Carbon Emission Reduction Technology.
  • August 31, 2020 – A JV with Alltrucks GmbH & Co. KG. Alltrucks intends to introduce and promote marketing, installation and servicing of dynaCERT’s HydraGEN™ product line to the established network of Alltrucks. Alltrucks offers a Pan-European workshop concept for maintaining and repairing commercial vehicles of all types and brands. Alltrucks has one of the largest workshop networks in Europe with 700 workshops in 12 countries.
  • August 20, 2020 – dynaCERT receives purchase order to complement COVID-19 safety package for trucking industry.

dynaCERT also continues to commercialize their products with 25+ dealers globally, and is currently improving and expanding their manufacturing facility to triple capacity.

dynaCERT’s global business model

Source

With about one billion diesel engines on the road, dynaCERT continues to evolve and grow new products that are both effective and in demand for the diesel trucking industry as it moves forward into a greener and more energy efficient future.