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Tawana Bain and ACRG’s Drive for a Sustainable American Supply Chain through Net-Zero Mineral Production

In a recent Investor.Coffee interview conducted by Jack Lifton, Tawana Bain, the CEO of American Clean Resources Group, Inc. (OTC: ACRG), shared insights into the company’s innovative approach to contributing to the American supply chain through the production of net-zero minerals and metals. Bain highlighted the company’s focus on utilizing tailings, which significantly reduces energy consumption by 90% compared to traditional mining processes. The venture is set to power its operations entirely off-grid, leveraging renewable energy platforms developed on their property located in Tonopah, NV, a community nicknamed the Queen of the Silver Camps for its mining-rich history.

Bain discussed the strategic position of their property near the developing lithium industry hub, emphasizing the potential for neighboring facilities to benefit from the excess power generated by American Clean Resources Group. Addressing potential roadblocks such as permitting and tribal disputes, Bain expressed confidence in overcoming these challenges through the support of a robust advisory group and strategic alliances with relevant agencies.

Reflecting on her background, Bain shared her extensive experience in environmental consulting, strategy, and community outreach, marking her public debut in a leadership role with this project. Lifton praised Bain for identifying a critical need in energy production and for her efforts to educate the investing public on the benefits of the company’s model, beyond political considerations. To access the complete interview, click here

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About American Clean Resources Group, Inc.

American Clean Resources Group, Inc. (ACRG) is poised to be a trailblazer in renewable and environmental development within the United States. Committed to strengthening the American Supply Chain and advancing Climate Change Reduction through comprehensive Resource Management, ACRG aims to spearhead the largest renewable energy project in the U.S. located in Nevada’s Big Smokey Valley of Esmeralda County, near Tonopah. Our strategic advantage lies in controlling the largest renewable energy site in the country, holding water rights, and possessing vital infrastructure. Over the past 15 years, we’ve retained ownership despite lucrative offers, aligning with our strategic vision to construct the United States’ largest renewable energy park focused on processing Gold and Silver.

Our strategy involves leveraging existing assets and pursuing strategic acquisitions across air, water, and land domains, aligning both vertically and horizontally. Additionally, we aim to lead in reprocessing mineral waste and providing toll, specialty, and custom milling services for precious and rare earth metals.

To learn more about American Clean Resources Group, Inc., click here

Disclaimer: American Clean Resources Group, Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.




Biden-Harris Administration’s $3.5 Billion Investment in U.S. Battery Manufacturing and Clean Energy Transition

On November 15, 2023, the Biden-Harris Administration announced a significant investment of $3.5 billion to enhance domestic battery manufacturing in the United States. This funding is a part of President Biden’s Investing in America agenda and is allocated from the Bipartisan Infrastructure Law. The U.S. Department of Energy (DOE) will oversee this investment, aimed at increasing the production of advanced batteries and related materials across the nation. The initiative is a key element in supporting the clean energy industries of the future, including renewable energy and electric vehicles.

The investment focuses on creating and retrofitting facilities for various components of battery production, such as battery-grade processed critical minerals, precursor materials, battery components, and cell and pack manufacturing. A significant aspect of this funding is its emphasis on job creation, specifically good-paying union jobs, and its contribution to the goal of achieving a net-zero emissions economy by 2050. Additionally, the investment aims to ensure that half of all new light-duty vehicle sales are electric vehicles by 2030 and to establish a robust domestic supply chain.

U.S. Secretary of Energy Jennifer M. Granholm highlighted the importance of this initiative in boosting global competitiveness, creating jobs, and strengthening the clean energy economy. The investment is seen as pivotal in positioning the United States as a leader in the advanced battery market, which is crucial for a range of applications including grid storage, home and business resilience, and transportation electrification. With the expected significant growth in the lithium battery market driven by the demand for electric vehicles (EVs) and stationary storage, the U.S. aims to accelerate the development of a resilient battery supply chain, including the exploration of non-lithium battery technologies.

This $3.5 billion funding is the second phase of a total $6 billion provided by the Bipartisan Infrastructure Law. The first phase saw the DOE awarding projects that catalyzed over $5.8 billion in combined public and private investment. The second phase continues this momentum by expanding domestic battery manufacturing and supply chains. Key objectives include enhancing the U.S. competitive stance in battery materials processing, advancing battery manufacturing capabilities, reducing dependency on foreign critical minerals and technologies, and supporting underserved communities through the Justice40 Initiative.

The funding opportunity is also set to prioritize next-generation technologies and battery chemistries beyond lithium-based technologies. It includes an emphasis on projects that increase the production of critical materials, expand production facilities for cathode and anode materials, and enhance battery component manufacturing. The DOE plans to update the focus areas of this program every six months to keep pace with market and technology developments, with concept papers due by January 9, 2024, and full applications by March 19, 2024.

Tracy Weslosky, Executive Director of the Critical Minerals Institute, often referred to as the CMI, stated that substantial funding is essential to develop competitive North American critical mineral operations that can match China’s pricing. However, she emphasized that finding professionals with the necessary skills, knowledge, and practical experience is even more crucial than the minerals themselves for establishing sustainable supply chains in North America. Weslosky also expressed eagerness for future updates on leadership and support strategies in this endeavor.

The Executive Director for Critical Metals PLC (LSE: CRTM) Russell Fryer adds: “The current dynamics of cobalt supply for battery production raise significant questions. Notably, sources such as Idaho and Canada are not major contributors in this realm. This situation underscores the need for a comprehensive understanding of global supply chains and their implications for sustainable and ethical resource procurement.”

The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is tasked with managing this initiative, aligning it with broader efforts to modernize national energy infrastructure and promote a clean and equitable energy transition.




A diversified 6% dividend yield portfolio is still possible in these uncertain times

Those of a certain vintage remember when interest rates were truly high. Today doesn’t hold a torch to the late 1970s through to the start of the 1990s. Double digits were pretty standard and in the early 1980’s if you didn’t have the best credit rating you could easily have a mortgage or a car loan with an interest rate that was over 20%. My first mortgage was a steal of a deal relative to that at a mere 11%. Of course the flip side was that GIC’s and other fixed income rates were also hard to imagine in today’s reality. One of my first investments was a strip coupon bond with a yield of 9%. If only the maturity on that bond was 2026, I’d be an investing hero. But it wasn’t and I’m not, so where am I going with this?

Since the turn of the century, 5% has been considered a pretty good investment return if you could get it. Obviously the safer or lower risk the investment the better, but for two decades now we’ve been beggars not choosers. A 6% annual return is considered pretty good by today’s investing standards and typically you have to reach into some riskier places to try and achieve that kind of return year after year after year. However, the market sell off over most of 2022 and in particular June and September have created the opportunity to put together a diversified 5-10 stock portfolio whereby all the holdings currently yield over 6% dividends, are reasonably blue chip stocks and should see those dividends be somewhat sustainable or potentially even grow over time. And this is a straight forward, buy and hold type of exercise. I’m not talking about enhancing yields with options or any other voodoo magic. Every once in a while the market serves you up an opportunity and you can decide if you are willing to embrace that opportunity. I’m not an investment advisor and this isn’t investment advice; it’s more of a thought exercise. Let’s dive into this idea and you can decide if your definition of blue chip or low risk is similar to mine.

In Canada we hold our big 5 banks in fairly high regard. They survived the Great Financial Crisis (2008) as some of the best performing banks in the world. So it should come as no shock that the first equity I’m looking at is one of those five – Bank of Nova Scotia (TSX: BNS | NYSE: BNS). The Bank of Nova Scotia, is a Canadian multinational banking and financial services company headquartered in Toronto, Ontario. It is the third largest Canadian bank by deposits and market capitalization (C$79 billion). As of Monday’s close of C$65.58, BNS was yielding 6.28% with its quarterly dividend of C$1.03.

Next up we have another industry giant but this time in the energy infrastructure business. Enbridge Inc. (TSX: ENB | NYSE: ENB) owns and operates pipelines throughout Canada and the United States, transporting crude oil, natural gas, and natural gas liquids. Enbridge’s pipeline system is the longest in North America. The market cap of Enbridge at the beginning of the week’s close (C$52.49) was C$106 billion and its yield was 6.55% based on its quarterly dividend of C$0.86. If you prefer natural gas exposure to the more “oily” Enbridge or you simply aren’t a fan of Enbridge, another example in the sector is TC Energy Corp (TSX: TRP | NYSE: TRP) another major North American energy company that develops and operates energy infrastructure in Canada, the United States, and Mexico. This C$57 billion market cap company closed Monday at C$57.84, giving it a yield of 6.22% based on its quarterly dividend of C$0.90.

Switching gears to another borderline monopoly business segment in Canada, the telecom sector, we find the biggest of the 4 titans (possibly soon to be three) with BCE Inc. (TSX: BCE | NYSE: BCE). BCE is a Canadian holding company for Bell Canada, which includes telecommunications providers and various mass media assets under its subsidiary Bell Media Inc. Despite being up 3.7% on the day Monday to C$60.06, this C$55 billion market cap company has a 6.13% yield based on its C$0.92 quarterly dividend.

When it comes to sustainable dividends it seems the utility sector is the poster child. Accordingly, this is the next sector to look at to help diversify holdings in the search for all those juicy dividends. There are a couple of options in this category to review. The first is Algonquin Power & Utilities Corp. (TSX: AQN | NYSE: AQN) a Canadian renewable energy and regulated utility conglomerate with assets across North America. The only shortcoming of the utility names is that they are a little on the small side with Algonquin presently sitting at a C$10.6 billion market cap but also trading at its 2 year low, which may have some appeal to investors. At C$15.59, Algonquin is yielding 6.31% with its C$0.25 quarterly dividend. An alternative name is TransAlta Renewables Inc. (TSX: RNW), another renewable energy company trading near its 2 year low at C$14.95. Even smaller at C$4 billion market cap, this may not be blue chip or low risk enough for some people’s liking but it is yielding 6.29% with its C$0.07833 monthly dividend.

These next possibilities may be seen as not being much diversification from companies like the Bank of Nova Scotia. The first is Power Corporation of Canada (TSX: POW) which is a management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are insurance, retirement, wealth management and investment management, including a portfolio of alternative investment platforms. This C$19.6 billion market cap company sports a 6.2% yield based on a C$0.49 quarterly dividend and Monday’s C$31.93 closing price. If you want a more pure play on insurance without the investment management there are Power Corp’s subsidiaries Great-West Lifeco, Inc. (TSX: GWO), a Canadian insurance-centered financial holding company that operates in North America, Europe and Asia. At C$30.46 GWO yields 6.43% with its C$0.49 quarterly dividend. The third option just squeaks into this article at exactly a 6% yield based on its close Monday of C$22.00 and C$0.33 quarterly dividend. That company is Manulife Financial Corp (TSX: MFC | NYSE: MFC), a C$41.8 billion market cap multinational insurance and financial services company operating in Canada, Asia and in the United States primarily through its John Hancock Financial division

Then there are all the REITs in Canada, of which at least half a dozen trade with 6+% yields. I’m only going to provide two as examples so we aren’t here all day but there are plenty more to choose from. Chartwell Retirement Residences (TSX: CSH.un) is the largest provider of seniors’ housing in Canada, with over 200 locations offering independent living, independent supportive living, assisted living, memory care, and long-term care facilities. Dream Industrial REIT (TSX: DIR.un) is the owner and operator of a diversified portfolio of high-quality industrial real estate in Canada, the U.S. and Europe. Again, both are smaller cap companies and are trading close to 2 year lows, which may or may not be appealing. The stats are a 6.49% yield for Chartwell (C$2.2 billion market Cap) with its C$0.051 per month dividend closing at C$9.43 Monday, while Dream Industrial sports a 6.39% yield, a C$2.8 billion market cap and monthly dividend of C$0.5833.

And there you have it, a few examples of how a small portfolio of high dividend yield companies is possible with as much or as little risk or diversification as an investor might be comfortable with. No matter how funds might have been allocated to any or all of the names above, it would have fetched a dividend yield of over 6% based on Monday’s close. With that said, with a little looking there are plenty of other investment options available that are yielding north of 6%, plus a bunch more between 5% and 6%, so if yield is an important part of a portfolio, now might be a good time to review what could potentially be upgraded to lower risk names with a higher likelihood of sustaining or even growing those lovely dividends.

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here




Power Australia: A flawed but welcome new law to fight climate change Down Under

Australia has a new environmental law of the land. It may not be perfect but it is consequential. Keep in mind that eight years ago, the previous Government repealed the nation’s environmental law which included a carbon pricing scheme.

Subsequent drastic climate events, including a punishing heat wave, huge fires which made international news and unprecedented strains on the power grid lent a sense of urgency to developing a new national environmental policy. Just as was the case in the United States, political change has turned a nation’s policy from climate denier to climate change combatant. Furthermore, and not coincidentally, the new law, officially called the Climate Change Bill 2022 but known as ‘Power Australia’, has been promulgated by Labor (loosely speaking, read Democrats in the US), with help from the Greens, and isn’t popular with Conservatives (read Republicans). But just as the Inflation Reduction Act miraculously passed both Houses in the US, so too did the Power Australia bill become law.

What does the Australian law do? Well, it aims to achieve a 43% reduction in emissions below 2005 levels by 2030, and net-zero by 2050, partially by mandating that 82% of Australia’s electricity will be provided by a pantheon of renewables. It requires “climate benefits” to be measured annually but does not include stipulations for conducting such measurements. Nonetheless, the key objectives are broadly in line with other global commitments and the law puts Australia firmly back in the climate game.

According to press reports, “The law was broadly welcomed by business groups and the environmental movement.” Climate Change Minister Chris Bowen said “Legislating these targets gives certainty to investors and participants in the energy market and will help stabilize our energy system.”

No law is ever perfect, of course, and therefore this one has its critics. The main complaint about the law is that it doesn’t include a “carbon count” mechanism. What does this mean? It refers to two important aspects not codified in the law, the first of which, as mentioned above, would be a version of a carbon credit scheme encouraging companies to offset their carbon discharge. These are in place in the US and Canadian climate laws, and play an important role in encouraging the energy industry in particular to invest in renewables to avoid gradually increasing “carbon fines” on their operations.

Perhaps more importantly, the law doesn’t deal with the so-called social cost of carbon emissions. This refers to a cost-benefit analysis conducted on proposed projects in which, if a project is deemed to result in increased carbon emissions, the social cost of carbon multiplied by the expected emissions is added to the cost of the project, while conversely, if the project reduces carbon emissions, the calculated carbon savings are deducted from the project cost. Particularly in public-private projects, this savings makes the project more attractive and reinforces carbon reduction market decisions.

In both the US and Canada, federally-funded infrastructure projects are required to perform the social carbon cost calculation, while in the US, 14 States, including California and New York, also use this measure. At the State level in California, the law also requires all privately funded infrastructure projects – including proposed mining activities – to apply the social calculus. The Biden Administration has set the social figure at $76/ton, applicable to all federal projects. A new study conducted by researchers at the University of California Berkeley and the NGO Resources For The Future, published in ‘Nature” this month, sets that cost at $185/ton.

So what makes up the “social cost” of carbon? The short answer, according to Stanford University: the main components are what happens to the climate and how these changes affect economic outcomes, including changes in agricultural productivity, damage caused by sea level rise, and declines in human health and labor productivity.  Although already hard enough to quantify, many economists and social activists argue that this doesn’t go far enough but should also include social justice factors – for instance, the human damage done by building highways through the heart of cities and isolating or destroying entire communities. The $185/ton cited in the ‘Nature’ study attempts to include these factors, as well as (inter alia) risks to insurance companies resulting from sea level rise and persistent flooding.

So, back to Australia, where environmentalists hope that the social cost of carbon will be included in the implementing legislation setting the standards for measuring carbon reduction progress or lack thereof. Reportedly the national Infrastructure and Transportation plan already incorporates social cost considerations and could serve as a template for a national measurement standard.

In any event, this is a strong step for Australia in the fight to save the planet.




Visionstate cleaning up with the Internet of Things

The Internet of Things (IoT) is just taking off now. The Global IoT market size is forecast to grow from US$478.36 billion in 2022 to US$2,465.26 billion by 2029, at a CAGR of 26.4%. In some cases, the current global supply chain disruptions and rising costs are highlighting the need to have good IoT processes in place and thereby accelerating the rollout of the IOT.

Visionstate Corp. (TSXV: VIS) (Visionstate) is a growth oriented company that invests in the research and development of promising new technology in the realm of the Internet of Things, big data & analytics, and sustainability.

Visionstate has developed their WANDA™ family of IoT software products which are used in hospitals, seniors/aged care centres, airports, shopping centres and other public facilities across and beyond North America. The products include wandaNEXT™ and wandaMOBILE™.

Some common applications for the WANDA™ family of products include:

  • wandaNEXT™ – Is a system that offers real-time ‘notifications, analytics & reporting’ as well as an understanding of staff performance and facility needs. One example might be cleaning services in a hospital or other facility. wandaNEXT™ preassigned managers and designated cleaning staff are instantly notified when a patron requests service through wandaNEXT™. Cleaning staff then use wandaNEXT™ to record their response. wandaNEXT™ captures the exact time service is requested, the specific type of service required, and how quickly the cleaning staff responds to the request. There is also a dashboard where you can summon reports that give a detailed deep dive into a facility’s data (results).
  • wandaMOBILE™ – Uses quickscan QR codes to track the hard work and supplies of frontline cleaning and maintenance workers. As above, staff is automatically notified when someone uses their mobile device and a WANDA™ Quickscan QR Code to request service. Then, with either WANDA™’s available hand-held devices or their own personal phones and tablets, cleaning and maintenance staff use the WANDA™ Mobile App and the Quickscan QR Code to record their response activities.

Recent news

In some interesting news reported in April 2022, Visionstate announced that their Internet of Things software solution for facilities (WANDA™) has gone global, with adoption accelerating due to COVID-19. The news stated: “WANDA™ has quickly become an important tool in the fight against COVID-19 and other diseases as the sixth wave of the virus continues to create health concerns across Canada and beyond. WANDA™ is a mobile application, incorporating QR code functionality, that tracks cleaning and maintenance activities and measures those activities against new and more stringent protocols. “We are very pleased with the growth of Visionstate IoT Inc.,” said Company CEO John Putters. “WANDA™ is quickly becoming the primary tool for businesses, municipalities, and governments to ensure cleaning protocols are met in order to reduce the impact of COVID-19.”

Visionstate investments

Apart from its WANDA™ products, Visionstate has invested in two organizations, Exceed Solar and Freedom Cannabis.

Exceed Solar specializes in solar applications including backyard garden suites and greenhouses that are powered by renewable energy. They use cutting edge technology and building materials to maximize efficiency. The Company is currently developing a smaller, secure, solar-powered backyard greenhouse that caters to the home growing market for cannabis.

Freedom Cannabis is a private, seed-to-sale cannabis company currently in the application process with Health Canada to become a licensed producer. They are completing the first phase of their growing operations of approximately 73,000 square feet in Acheson, Alberta, Canada.

Closing remarks

The IoT sector looks set for very high growth (one forecast is a CAGR of 26.4%) in the next few years and companies that can succeed in this area stand to do very well. Visionstate’s primary focus is their suite of IoT software products under their WANDA™ brand. A global rollout is still in the early stages but has been helped by increasing demand as a result of COVID-19.

Visionstate’s 2021 revenue was ~C$540K and the Company trades on a market cap of C$3 million.




COP26 focuses investor interest on the critical materials required for a cleantech global vision

COP26 is now completed and the changes will impact the cleantech sector in the years ahead. Some came away disappointed at the lack of commitment from the 197 participating countries at COP26; however, there were many positive steps as outlined below.

The major outcomes from COP26

  • The “Glasgow Climate Pact” was introduced. It aims to limit global warming to 1.5 °C. It calls for a more ambitious climate response on cutting emissions, climate management finance, and pledging to double adaptation finance, and funding for loss and damage already being caused by warming. Countries were asked to “revisit and strengthen” their climate pledges by the end of 2022.
  • New transparency rules to ensure countries report sufficient information to determine whether or not they are meeting their pledges.
  • The first ever COP decision to explicitly target action against fossil fuels, calling for a “phase-down” of unabated coal and “phase-out” of “inefficient” fossil-fuel subsidies.
  • COP26 finalised rules for global carbon trading; however under the rules, the fossil fuel industry will be allowed to “offset” its carbon emissions and carry on polluting.
  • Record-breaking pledges of US$365 million to the Adaptation Fund. This was a tripling of the amount raised last year, with first time contributions from the USA and Canada.

Note: The Adaption Fund is set up to help developing countries build resilience and ‘adapt’ to climate change.

Sectors and companies to benefit from the COP26 changes

The renewable energy sector will continue to be a beneficiary. In particular, solar, wind, hydro, and geothermal energy. So too will nuclear energy benefit. The push for a global warming increase limited to 1.5 °C, and the focus for countries to revisit and strengthen their climate pledges by the end of 2022, should also be a positive catalyst going forward for renewables and nuclear energy.

Carbon capture and storage (“CC&S”) should also continue to benefit. The “phase-down” (not “phase-out”) of coal means CC&S can continue to play a role to reduce carbon emissions.

Zero-emission vehicles such as electric vehicles (“EVs”) indirectly got a boost with the COP26 decision to phase down “inefficient” fossil-fuel subsidies. If implemented fossil fuels would become relatively more expensive making EVs relatively more attractive.

Those companies working in the cleantech sector will benefit from the renewed COP26 push to reduce emissions.

Many InvestorIntel member companies set to benefit

When you look over the list of InvestorIntel member companies the standout feature is that many are involved, either directly or indirectly, in the cleantech and green related sectors. For example, Carbon Streaming Corporation (NEO: NETZ) invests into carbon credits, Cielo Waste Solutions Corp. (TSXV: CMC | OTCQB: CWSFF) turns polluting waste into renewable fuel, dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) reduces emissions from vehicles, H2O Innovation Inc. (TSXV: HEO | OTCQX: HEOFF) uses technologies to create clean water and treat wastewater, Ideanomics, Inc. (NASDAQ: IDEX) is investing in and supporting the EV industry, Nano One Materials Corp. (TSX: NANO) works to develop and commercialize better and cheaper cathodes for lithium ion batteries, and NEO Battery Materials Ltd. (TSXV: NBM) is developing silicon anodes for lithium ion batteries..

The mining companies that produce or are working to produce the raw materials that go into solar and wind energy, as well as electric vehicles, batteries, and other energy storage products, stand to benefit. This includes the rare earths (Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF), Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF), USA Rare Earth, LLC, Vital Metals Limited (ASX: VML); lithium (Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF), Critical Elements Lithium Corporation (TSXV: CRE), Neo Lithium Corp. (TSXV: NLC); cobalt (CBLT Inc. (TSXV: CBLT), Global Energy Metals Corporation (TSXV: GEMC); graphite; nickel (Nickel 28 Capital Corp. (TSXV: NKL); manganese; copper (Kodiak Copper Corp. (TSXV: KDK), Murchison Minerals Ltd. (TSXV: MUR); vanadium and scandium (Imperial Mining Group Ltd. (TSXV: IPG), Scandium International Mining Corp. (TSX: SCY). Another is the rare earths’ magnet materials maker Neo Performance Materials Inc. (TSX: NEO).

Finally, a phase-down of coal is a positive for the smart nuclear sector and hence the uranium miners and explorers such as Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), Ur-Energy Inc. (NYSE American: URG | TSX: URE), Western Uranium & Vanadium Corp. (CSE: WUC | OTCQX: WSTRF), Fission 3.0 Corp. (TSXV: FUU | OTCQB: FISOF), Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF), and Azincourt Energy Corp. (TSXV: AAZ).

Closing remarks

COP26 was perhaps more successful than what some are reporting. The phase-down of coal is a good achievement, with India joining this for the first time. The new transparency rules are underappreciated, given currently that there are no penalties for not following the climate change targets (only naming and shaming). New rules for global carbon credits trading are also a positive step forward. Also, the tripling of pledges to the Adaptation Fund to help developing companies is welcome.

Investors could look through the list of InvestorIntel members and select the companies that they think best align with the COP26 changes and the massive trend towards reducing emissions and producing green energy and technology this decade.

See you next time for COP27 in November 2022, this time in Egypt.




The compelling long-term case for copper, with an eye on Kodiak

Copper has had a pretty wild ride, so far, in 2021. Starting the year at just over US$3.50/lb, it quickly gained momentum with optimism over the “opening up” of trade based on the perception (at the time) that perhaps we had nipped Covid in the bud, and that the global economy would soon get back to some semblance of normal. This rallied the price of copper up to a high of US$4.37/lb in late February before the price consolidated in the US$4.00-US$4.20/lb range. The next rally was driven by the excitement around the green revolution or the electrification of everything. Every pundit and talking head on the business channels was talking about the growth rate of EVs, renewable energy, battery storage, etc., all of which would soon require a lot more copper than is being produced today. This charge upwards drove copper up to an intraday high of US$4.89/lb in early May, or roughly a 40% gain in just over 4 months. However, as the saying goes, often the cure for high prices is high prices, and that seems to have been the case for copper as the commodity appears to be in a bit of a downtrend at present.

The positive is that there appears to be solid support at roughly the US$4.00/lb threshold, and there hasn’t been a decisive break below the 200 day moving average. I also believe the long term case for copper is compelling. Whatever path we ultimately take to reduce our carbon footprint over the next years and decades is going to require a lot of copper. Will there be up and downs in the interim? For sure. The fallout from the Evergrande, property speculation, debacle in China could put a crimp in their economy, particularly in the building sector, but I don’t feel there will be a global contagion arising from that. In the long run there is a global political will to create a cleaner, greener future for the world, and that is going to make copper a “go to” commodity for a long time.

That’s my long-winded way of saying we should look at a copper stock today. Having grown up in the interior of B.C., one junior explorer I’ve been keeping an eye on is Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF). The Company’s most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in southern British Columbia, where in 2020 the Company made a high-grade discovery at the Gate Zone. Plans for 2021 include a fully funded 30,000 metre drill program including several target areas, as well as further geophysical and geochemical surveying, prospecting, and geotechnical studies. By early July, Kodiak had completed over 15 drill holes with results suggesting that the 1.2 kilometre long copper-in soil target in this area is underlain by a significant copper-gold-silver porphyry system. Highlights from the first 6 holes included an increase in the strike length of the Gate Zone from 125 metres to 800 metres, and a 242 metre intersect of 0.52% CuEq.

Unfortunately, the Company had to pause their drilling efforts in August due to wildfire risks, but ramped up activity at the end of August with two drill rigs. As of September 1st, 25 holes totaling 13,600 metres have been completed and the Gate Zone had been expanded further to 950 metres in length, 350 metres in width (east-west) and to a depth of 800 metres, being open in all directions. This is all pretty exciting, but the best part is that there’s lots more to come. Including drilling the high priority Dillard target which exhibits similar copper-in-soil anomalies, geophysical responses, and has shown encouraging historic drilling like the Gate Zone. Dillard will be drill-tested in Q4 as part of the 2021 program. And let’s not forget we’ve only seen results from the first 6 drill holes, leaving at least 19 still to come, the results from which should be available any day now.

It appears there should be fairly steady news flow out of Kodiak Copper for the rest of 2021. With 48.7 million shares outstanding the Company has a market cap of roughly $61 million based on yesterday’s close of $1.26. They have a fairly tight share structure so any positive news could give this stock a pretty good shot in the arm. Hopefully, exciting news is on its way.




Quebec’s $6.7 billion Plan for a Green Economy is a huge boost for energy storage and EVs

While Quebec Canada is known for its French influence and pro-mining sector, it is starting to become well known for its support for pro-green policies. Just recently the Quebec Government announced their $6.7 billion Plan for a Green Economy (2030 PGE).

As a part of the 2030 PGE, two of the most interesting announcements were Hydro-Quebec’s move towards energy storage and Quebec’s decision to ban the sale of new gasoline-powered cars from 2035. All of these recent Quebec pro-green policies are very positive for the energy storage, EV and battery markets; and also for the battery metal (and EV metal) miners; especially those with projects in Quebec.

A summary of the Quebec Government’s $6.7 billion Plan for a Green Economy (2030 PGE)

Source

Hydro-Québec’s move towards energy storage using LFP batteries

On December 9, 2020, it was reported that Hydro-Québec announced the launching of a new subsidiary that specializes in energy storage systems in a bid to help speed up development of renewable power and commercialize technology it has developed over four decades.

A Reuters report quotes: “Hydro-Québec, Canada’s largest electricity producer, on Wednesday entered the fast-growing market for storing renewable energy, where it could face competition from the likes of Tesla……Hydro-Québec aims to capture 10% of a niche market expected to reach $3 billion in the next 10 years.”

Hydro-Quebec’s new EVLO subsidiary will design, sell and operate storage systems aimed at other utilities, commercial and industrial markets for medium-and-large-scale storage. They intend to initially focus on North America and Europe.

Hydro-Québec is using lithium iron phosphate batteries (LFP). LFP battery is a type of lithium-ion battery using LiFePO₄ as the cathode material, and a graphite based anode. It means there is no use of nickel or cobalt, but still uses lithium and graphite.

Quebec to ban the sale of new gasoline-powered cars from 2035

The Quebec banning of ‘new’ gasoline cars from 2035 should mean that starting from 2035, 100% of new car buyers will buy electric vehicles (EVs). Of course EVs will be wildly popular well before then, especially post 2023 when they should hit purchase price parity with gasoline or diesel cars.

The Quebec Government stated: “….the 2030 Plan for a Green Economy (2030 PGE) along with its first implementation plan covering 2021-2026, backed by a budget of $6.7 billion over five years. The magnitude of the amounts earmarked for this electrification and climate change framework policy is indicative of the government’s intent to make Québec a leader in the green economy by building on its major strength: its clean electricity.”

Again this is another huge boost to the EV & battery manufacturers as well as the EV and battery metal miners. In the case of EVs, NMC (nickel, manganese, and cobalt) and NCA (nickel, cobalt, and aluminum) cathode batteries are currently the most popular in western markets as they offer the best energy densities. Lithium electrolyte and graphite based anodes are the usual other battery metals. Added to this would be the producers of rare earths neodymium-praseodymium (NdPr) used in EV motors. We should also add in copper as copper is integrally involved with clean energy and EVs. Finally, any companies that work in renewable energy and in particular emissions reductions.

Some potential winners from Quebec’s support for energy storage and EVs

  • Hydro-Quebec as an energy storage designer, seller and operator. Also their suppliers of LFP batteries.
  • Potentially any Quebec based cathode, anode or battery manufacturers and/or EV manufacturers.
  • Quebec based battery metal miners – Lithium, cobalt, nickel, manganese, graphite, and aluminum.
  • Energy storage and EV suppliers and miners, ideally in Canada and perhaps USA.
  • Companies working in the pro-green economy sector.

Some companies that we follow at InvestorIntel that focus on the above areas include: Appia Energy Corp. (CSE: API | OTCQB: APAAF), Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF), Canada Silver Cobalt Works Inc. (TSXV: CCW | OTCQB: CCWOF), CBLT Inc. (TSXV: CBLT), Critical Elements Lithium Corporation (TSXV: CRE | OTCQX: CRECF), dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF), Exro Technologies Inc. (TSXV: EXRO | OTCQB: EXROF), Global Energy Metals Corporation (TSXV: GEMC | OTCQB: GBLEF), Ideanomics Inc. (NASDAQ: IDEX), Imperial Mining Group Ltd. (TSXV: IPG), Kodiak Copper Corp. (TSXV: KDK), Nano One Materials Corp. (TSXV: NNO), Neo Lithium Corp. (TSXV: NLC | OTCQX: NTTHF), Neo Performance Materials Inc. (TSX: NEO), Nouveau Monde Graphite Inc. (TSXV: NOU | OTCQX: NMGRF), Search Minerals Inc. (TSXV: SMY), Vital Metals Limited (ASX: VML), and ZEN Graphene Solutions Ltd. (TSXV: ZEN).

Quebec Canada is supporting energy storage and electric vehicles etc with a $6.7 billion plan for a green economy

If you are a Quebec or Canadian company focused on the green energy sector then InvestorIntel would be happy to hear from you to see if we can get your company some greater exposure. Together we can make a better world.




What stocks and sectors to win in the US Presidential election

With the US Presidential election on November 3 many investors are looking at the implications of a Trump win versus a Biden win. Based on the current polls Biden is ahead which means some of the Biden related stocks have already partially priced in a Biden victory.

Sectors and stocks to do well if Trump wins

If we see a President Trump victory this week then investors can expect more of the same from the past 3 years in office. Trump is likely to continue with the China trade war and his tariff policy, which has so far had mixed results. Agriculture (soybeans etc.) has suffered some severe ups and downs as China retaliated then appeased Trump. Chinese student education and tourism to the US is significantly down.

Sectors that have generally been favored under Trump include oil/gas/coal/nuclear, military, possibly financials, possibly technology, and some industrials. Trump’s policy to reduce corporate Americas tax rate from 35% to 21% was a huge win for corporate America and it helped boost stock markets at the time. The recent September 30 White House Executive Order (‘EO’) on critical minerals is aimed to give a huge boost to the critical minerals mining sector and supply chain, especially for US based projects.

Some stocks and funds likely to do well in a Trump victory include oil/gas/coal/nuclear such as SPDR S&P Oil & Gas Exploration & Production ETF (XOP) (assumes COVID-19 eases and oil prices increase), Exxon Mobil (XOM), Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), Ur‐Energy Inc. (NYSE American: URG | TSX: URE); defense stocks such as Northrop Grumman Corp. (NOC), Lockheed Martin Corp. (LMT), Raytheon Co. (RTN), and General Dynamics Corp. (GD); financials such as Bank of America (BOA), JP Morgan Chase (JPM); and the tech giants (Facebook FB), Amazon (AMZN), Alphabet (GOOGL) etc); US based critical minerals miners MP Materials Corp. (MP)(FVAC), Neo Performance Materials Inc. (TSX: NEO), and the other US critical mineral miners.

China related shares and funds would likely not do well if Trump wins and the recent renewable energy and EV stocks rally might reverse.

Donald Trump continues with ‘make America great again’

Source

Sectors and stocks to do well if Biden wins

Biden’s policy proposals are aimed at restoring equality and boosting the middle class as well as US manufacturing. Biden plans to work with other nations to solve global conflicts and less conflict with China. His other key policy pillar is green energy (‘green new deal’). Biden’s green plan is for the U.S. to have a carbon pollution-free power sector by 2035. This would be a massive boost to the renewable energy sectors such as solar and wind energy as well as more support to the electric vehicle (EV) industry. Biden also plans to boost spending on rural areas, agriculture, healthcare, child care and caregivers, as well as helping to reduce student debt and raising the US minimum wage to $15/hour. He plans to boost R&D spending by $300 billion on electric vehicles (EVs), lightweight materials, 5G and artificial intelligence. To do all this he plans to raise corporate tax rate from 21% to 28%, and to raise taxes on individuals with incomes above $400,000, including raising individual income, capital gains, and payroll taxes. Also some capital gains tax increases for those on incomes above $1,000,000 pa.

Some stocks and funds likely to do well in a Biden victory include solar energy stocks and solar ETFs (TAN), SolarEdge Technologies Inc. (SEDG), First Solar (FSLR), Brookfield Renewable Partners LP (BEP), NextEra Energy (NEE); wind energy and wind stocks (FAN); US electric vehicle stocks such as Tesla (TSLA), Fisker (FSR); EV charging companies Blink (BLNK); and the miners that provide the raw materials for the clean energy sector. This would include miners in rare earths, lithium, cobalt, graphite, nickel, manganese, aluminum, and scandium etc. Also emissions reducing stocks such as dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) stand to benefit. US healthcare stocks such as United Health Group (UNH) and those focused on COVID-19 treatment and prevention should do well as Biden increases COVID-19 testing and therapies and drops medicare eligibility from 65 yo to 60 yo.

Joe Biden plans to help fix inequality and boost the middle class

Source

Sectors and stocks to do well no mater who wins

The technology sector has done well under Trump boosted by the corporate tax cut; however it is also likely to continue to do ok under Biden, despite a short term pull back due to higher corporate taxes. There is the Democrats (Biden) threat of more regulation and possible breakups of big tech; but under Trump there is also greater pressure on big tech such as the recent Alphabet Google anti-trust lawsuit. Expanding rural broadband internet access under Biden is a small positive for tech.

The infrastructure sector should do well. If Trump wins the infrastructure to do well will be more based around older infrastructure such as highways, pipelines, and traditional energy (oil, gas). If Biden wins the benefits will go towards newer infrastructure such as his $2 trillion green infrastructure and jobs plan over his first term in office.

US critical materials related stocks look set to do well both under Trump and Biden.

Gold and precious metals will likely do well no mater who wins assuming continued US stimulus and money printing.

Closing remarks

InvestorIntel has no political bias, but rather seeks to help investors make informed decisions.

As a general rule if Trump wins the US election investors can expect the same stocks and sectors that did well the past 3 years to continue to do well. The best performing sector has been US technology. The lower corporate tax rate is a plus for US corporates in general.

If Biden were to win the winning sectors and stocks relate mostly around stocks that benefit from a supported lower and middle class, renewable energy including EVs, and government support (health care, child care, aged care).

Finally, how the US deals with the China trade war, COVID-19, and geo-political events going forward will also play a significant role in the US stock market over the next 4 years. Good luck to all.




Tesla set to lead this decade’s renewable energy and electric vehicle boom

Renewable energy and electric vehicles (EVs) are set to be massive macro trends this decade. A raft of Government support, combined with massive cost reductions, will propel both sectors higher. In most locations globally solar is now the cheapest form of electricity production (followed by wind), and from about 2023 electric vehicles will be cheaper to buy than conventional cars. Hundreds of millions of people globally will make the move to solar and wind power, combined with EVs simply because it will be the cheapest way to create energy and to commute.

EV, solar, and wind stocks are already surging in anticipation of this at least decade long boom as shown in the chart below. Just take a look at these sizzling returns so far in 2020. This is just the beginning of what lies ahead.

  • Tesla (NASDAQ: TSLA) – Up 258%
  • BYD Co. (HK: 1211) – Up 89%
  • SolarEdge Technologies Inc. (NASDAQ: SEDG) – Up 86%
  • Enphase Energy Inc. (NASDAQ: ENPH) – Up 133%
  • Vestas Wind Systems (GR: VWS) – Up 32%

2020 YTD returns for some leading EV, solar, and wind stocks

Source: Yahoo Finance

Government support for renewable energy and EVs announced in July 2020

  • July 21, 2020 – The EU announced the biggest green stimulus in history with a 500 billion Euros (US$572 billion) climate change plan as part of a 1.8 trillion Euros stimulus plan over 7 years.
  • July 14, 2020 – In the USA, Joe Biden unveiled a US$2 trillion green infrastructure and jobs plan over 4 years, if elected. The plan aims for the U.S. to have a carbon pollution-free power sector by 2035. The plan includes US investments in new infrastructure, public transit, clean electricity, the electric vehicle industry (EV and battery production), buildings and housing, and agriculture. Also to boost fuel economy standards which encourages car makers to switch to EVs.
  • July 7, 2020 – The UK announced a GBP 3 billion ‘green’ plan to focus on energy efficiency and re-skilling for ‘green jobs’, which includes a housing retrofit scheme. The UK Gov. already supports EVs.

Whilst the Government initiatives will help, the private sector is also rapidly moving towards supporting renewable energy. Global investment in new renewables capacity rose 5% in H1 2020, despite the chaos of COVID-19. Offshore wind was the star performer with $35 billion of new financing in H1 2020, up 319% YoY. This bodes well for the leading wind turbine manufacturers.

Regarding electric vehicles, sales have been picking up rapidly and outperforming regular vehicles in terms of gaining market share, especially in Europe and China. For example, for Europe in June 2020, conventional car market sales fell 24% YoY, whereas electric car sales rose 95%. Electric car sales in Europe are surging and in June made up 8.2% market share. Germany has led the way where conventional car sales fell 32% but electric car sales rose a staggering 274%, growing to reach 8.6% market share in June 2020.

EV sales forecast to really take off after 2022 as affordability kicks in

Source

BloombergNEF 2020 forecast for annual electric vehicle sales are:

  • 10% share by 2025 (~9 million pa)
  • 28% share by 2030 (~24 million pa)
  • 58% share by 2040 (~54 million pa)

Investors would be wise to review some of the leading companies for each of the three boom areas:

Solar – Tesla, SolarEdge Technologies Inc., Enphase Energy Inc., First Solar, Inc. (NASDAQ: FSLR).

Wind – Vestas Wind Systems, Siemans, GE Wind/General Electric (GE), Siemans AG (GR:SIE | OTC: SIEGY), Xinjiang Goldwind Science & Technology Co. (HK:2208).

Electric Vehicles – Tesla, BMW, Volkswagen, BYD Co.

Investors could also look at some niche players that lead in their area. Here are some examples.

  • dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) – Emissions reductions, and greater fuel efficiency.
  • Exro Technologies Inc. (CSE: XRO | OTCQB: EXROF) – Making electric engines more efficient (like gears in a car).

You can read more at InvestorIntel’s Cleantech coverage here.

Finally the other area to benefit will be the suppliers of critical materials, especially the EV metal miners, the rare earth miners, and the lightweight materials companies. Some names we follow include Nano One Materials Corp. (TSXV: NNO), Neo Performance Materials Inc. (TSX: NEO), Appia Energy Corp. (CSE: API | OTCQB: APAAF), Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF), Scandium International Mining Corp. (TSX: SCY), Imperial Mining Group Ltd. (TSXV: IPG), and ZEN Graphene Solutions Ltd. (TSXV: ZEN). You can review InvestorIntel’s coverage on this sector here.

Closing remarks

The renewable energy and EV booms have already begun but are still in the very early stages of what will be at least a decade long boom. The opportunity for investors is enormous as we have already started to see with Tesla as well as several other EV, solar and wind stocks so far in 2020.

Picking the winners of any disruption is never easy, but a good start is to go with the existing winners, and to diversify across a few sectors and stocks. The 2020s decade will see several disruptions combining as we see with solar, wind, EVs, and energy storage. Later this decade we will likely see a boom in Transport as a Service (TaaS), autonomous vehicles, and even affordable point-to-point space travel.

Further reading