Vancouver, British Columbia–(Newsfile Corp. – July 12, 2021) – International Lithium Corp. (TSXV: ILC) (the "Company" or "ILC") announces that the original news release captioned "International Lithium Announces Measured + Indicated Resource of 6.85 Million Tonnes LCE at Mariana Lithium Brine Project" published on July 8, 2020 contained a typographical error in the table illustrating the updated resource estimate.

1. Column one of the table contained the heading "Brine Volume* (Mm³)" which should read "Aquifer Volume (Mm³)"

2. Column two of the table contained the heading "Brine Volume (GL)" which should read "Brine Volume* (GL)"

Below is the corrected news release in its entirety with the relevant updates.

International Lithium Announces Measured + Indicated Resource of 6.85 Million Tonnes LCE at Mariana Lithium Brine Project

Vancouver, B.C. July 8, 2021 International Lithium Corp. (TSXV: ILC) (the "Company" or "ILC") is pleased to announce an update on its Mariana project in Argentina. As at December 31, 2020 the Company owned 11.243% of the joint venture company owning Mariana called Litio Minera Argentina ("LMA"), and this stake has since then diluted to around 10%, a number which is subject to audit. The Company currently enjoys a back in right to increase its stake in LMA by a further 10%. If exercised, this back in right would increase the Company's stake in LMA to around 20%. The remainder of the shares in LMA are owned by Mariana Lithium Co.Ltd. ("MLC"), a wholly owned subsidiary of Ganfeng Lithium. MLC has also since 2017 been the manager of the Mariana project. The Company currently has no representation on the board of LMA and participates on the management committee only to the extent of its percentage ownership in LMA.

The Company has now received a 300 page report (the "Report") from strategic partner Ganfeng Lithium Co. Ltd., ("GFL") that contains an updated mineral resource estimate for the Mariana lithium brine project (the "Project") located in Salta, Argentina. This Report was not prepared for public NI43-101 reporting standards, and therefore the Company is unable to disclose it fully. However, in the interests of investor transparency and to avoid selective disclosure, we are disclosing the following details from the Report which have already been disclosed in a news release issued by Ganfeng Lithium on 06 July 2021, and/or in a news release by the Salta Government in Argentina on 16 June, 2021.

Highlights from the Report which are already in the public domain are as follows:

1. The resource estimate contained in the Report, detailed in the table below, includes:

• 6,854,000 tonnes of lithium carbonate ("Li₂CO₃") equivalent (LCE) in the Measured and Indicated Resource categories, an increase of 55% over the 2019 estimate of 4,410,000 tonnes of Measured and Indicated Resource (Company news release, February 6, 2020)

• an additional 1,267,000 tonnes of Li₂CO₃ in the Inferred Resource category

• these amount are also now stated as 7,863,000 tonnes of lithium chloride equivalent in the Measured and Indicated Resource categories, and an additional 1,454,000 tonnes of lithium chloride equivalent in the Inferred Resource category

1. Ganfeng have reported that an Environmental Impact Report approval has been received from the Salta regional government in Argentina for the construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium chloride.

1. The Salta regional government has disclosed in a news release following its discussions with Ganfeng that the likely project expenditure from now to bring the Mariana Project to full production is around US$600 million.

Report – Mariana Lithium Brine Project, Argentina

Further to previous Company news releases dated March 8, 2017, April 20, 2017, and February 6, 2020, ILC has received the Report for the Mariana lithium brine project containing an update to the resource estimate for the Project. Golder Associates Consulting Ltd. ("Golder") prepared the Report based on an independent lithium brine resource estimate by Geos Mining Minerals Consultants ("Geos") based in Sydney, Australia..

 

* Brine volumes are reported using a conservative aquifer average specific yield (SY) of 15%. Due to the nature of brine deposits, it is not relevant to estimate Mineral Resources to a specific cut-off grade. However, a nominal grade cut-off value of 230 mg/L Li has been applied for reporting purposes only.
^# Based on standard conversion rates, and assumes full extraction and conversion.
LCE = Lithium Carbonate Equivalent; conversion factor 5.324 (Ministry of Energy and Mines, British Columbia, Canada).
LiCl = Lithium Chloride; conversion factor 6.1078
NB. Figures have been rounded. Well efficiency and production efficiency are modifying factors to resources and reserves, respectively.

The Qualified Person who prepared the brine resource estimate in the Report is Llyle Sawyer, MAIG of Geos. The effective date for the estimate is 4 June 2021.

Mineral resources are not mineral reserves as defined by the Canadian Institute of Mining and Metallurgy, and the Company cannot guarantee that the resources reported here will be converted to mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

John Wisbey, Chairman and CEO of International Lithium Corp., commented as follows:

"This Report highlights what we have always known, that Mariana with now over 7.8 million tonnes Measured and Indicated resource of lithium chloride equivalent is a very large deposit indeed. The key question in future years will be how much of this is capable of being processed economically, and that in turn will depend critically on what technologies are adopted. For now, making use of solar evaporation which is Ganfeng's chosen method detailed in the Report, there is an environmental limit to how much can be extracted without affecting the water levels adversely, and this is why 20,000 tonnes p.a. is the level of environmental approval applied for. It can be hoped that membrane technology or other technologies become suitable technology at Mariana in future years, and that this number can be improved on over time.

I mentioned in my Chairman's Report for the last financials that the board was evaluating its strategic options for the Mariana project. I can now disclose that the board believes that it would be in the best interests of its shareholders to sell its stake in the Mariana project before the Project goes to the next stage of requiring appreciable capital investment. We are conducting a process of talking with possible acquirers of our stake in Mariana, including Ganfeng the majority partner. Shareholders are cautioned that, as with any such discussions, no assurance is possible that the stake will be sold at a price that would reflect the board's view of the economic potential of the salar as a major lithium resource with valuable byproducts such as potassium. Should a suitable price not be agreed, the Company would still enjoy the benefit of a 1% Net Smelter Royalty from Ganfeng on all production from Mariana."

Qualified person

Jon Findlay, Ph.D, P.Geo, a consultant to the Company and a "Qualified Person" for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

About International Lithium Corp.

International Lithium Corp. believes that the '20s will be the decade of battery metals, at a time that the world faces a significant turning point in the energy market's dependence on oil and gas and in the governmental and public view of climate change. Our key mission in the new decade is to make money for our shareholders from lithium and battery metals while at the same time helping to create a greener, cleaner planet. This includes optimizing the value of our existing projects in Canada, Argentina and Ireland as well as finding, exploring and developing projects that have the potential to become world class lithium and rare metal deposits. In addition, we have seen the clear and growing wish by the USA and Canada to safeguard their supplies of critical battery metals, and our Canadian properties are strategic in that respect.

A key goal in the new decade is to become a well funded company to turn our aspirations into reality.

International Lithium Corp. has a significant portfolio of projects, strong management, and strong partners. Partners include Ganfeng Lithium Co. Ltd., ("Ganfeng Lithium") a leading China-based lithium product manufacturer quoted on the Shenzhen and Hong Kong stock exchanges (A share code: 002460, H share code: 1772) and Essential Metals Limited, quoted on the Australian Stock exchange.

The Company's primary strategic focus is now on the Raleigh Lake lithium and rubidium project in Canada and on the Company's strategic options on the Mariana project in Argentina.

The Raleigh Lake project consists of 3,027 hectares of adjoining mineral claims in Ontario, and is regarded by ILC management as ILC's most significant project in Canada. The pegmatites explored there contain significant quantities of rubidium and caesium as well as lithium. Raleigh Lake is 100% owned by ILC, is not subject to any encumbrances, and is royalty free.

The Mariana lithium-potash brine project, which is the subject of this news release, is located within the renowned South American "Lithium Belt" that is the host to the vast majority of global lithium resources, reserves and production. The Mariana project strategically encompasses an entire mineral rich evaporite basin, totalling 160 square kilometres, that ranks as one of the more prospective salars or 'salt lakes' in the region.

Complementing the Company's lithium brine project at Mariana and rare metal pegmatite property at Raleigh Lake, are interests in two other rare metal pegmatite properties in Ontario, Canada known as the Mavis Lake and Forgan Lake projects, and the Avalonia project in Ireland, which encompasses an extensive 50-km-long pegmatite belt.

The ownership of the Mavis Lake project is now 51% Essential Metals Limited ("ESS") and 49% ILC. In addition, ILC owns a 1.5% NSR on Mavis Lake. ESS has an option to earn an additional 29% by sole-funding a further CAD $8.5 million expenditures of exploration activities, at which time the ownership will be 80% ESS and 20% ILC.

The Forgan Lake project will, upon Ultra Resources Inc. meeting its contractual requirements pursuant to its agreement with ILC, become 100% owned by Ultra Resources, and ILC will retain a 1.5% NSR on Forgan Lake.

The ownership of the Avalonia project is currently 55% Ganfeng Lithium and 45% ILC. Ganfeng Lithium has an option to earn an additional 24% by either incurring CAD $10 million expenditures on exploration activities or delivering a positive feasibility study on the project, at which time the ownership will be 79% Ganfeng Lithium and 21% ILC.

With the increasing demand for high tech rechargeable batteries used in electric vehicles and electrical storage as well as portable electronics, lithium has been designated "the new oil", and is a key part of a "green tech" sustainable economy. By positioning itself with solid strategic partners and projects with significant resource potential, ILC aims to be one of the lithium and rare metals resource developers of choice for investors and to continue to build value for its shareholders in the '20s, the decade of battery metals.

On behalf of the Company,

John Wisbey
Chairman and CEO

www.internationallithium.com

For further information concerning this news release please contact +1 604-449-6520

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

Except for statements of historical fact, this news release or other releases contain certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information or forward-looking statements in this or other news releases may include: the effect of results of the feasibility study of the Mariana Joint Venture Project, timing of publication of the technical reports, possible sale of the Company's interest in the Project, anticipated production rates, the timing and/or anticipated results of drilling on the Raleigh Lake or Mavis Lake projects, the expectation of resource estimates, preliminary economic assessments, feasibility studies, lithium or rubidium or caesium recoveries, modeling of capital and operating costs, results of studies utilizing various technologies at the company's projects, budgeted expenditures and planned exploration work on the Avalonia Joint Venture, satisfactory completion of the sale of mineral rights at Forgan Lake, increased value of shareholder investments, and continued agreement between the Company and Ganfeng Lithium Co. Ltd. regarding the Company's percentage interest in the Mariana project and assumptions about ethical behaviour by our joint venture partners where we have them. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled "Risks" and "Forward-Looking Statements" in the interim and annual Management's Discussion and Analysis which are available at www.sedar.com. While management believes that the assumptions made are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. Should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Forward-looking information herein, and all subsequent written and oral forward-looking information are based on expectations, estimates and opinions of management on the dates they are made that, while considered reasonable by the Company as of the time of such statements, are subject to significant business, economic, legislative, and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/90053

Highlights:

• The inaugural drill hole GD21-001 (138 meters in length, 140°/-70°) at the Surebet Zone intersected 57.5 meters* of quartz-sulphide veins bound by two distinct and significant multi-meter-scale quartz-sulphide stockwork breccia (link to images).

• The 3.4 meters* upper vein contains visually estimated 10% centimeter-scale banded, clustered and disseminated sulphides, including pyrrhotite, sphalerite, galena and chalcopyrite; underlain by 8.9 meters* of strong stockwork breccia formed by 40-50% veining of similar composition to the upper vein (link to image).

• A Portable XRF Silver count of 20+g/t was outlined in a section of the lower vein at 85 meter downhole depth along thin fractures containing a dendritic metallic mineral (link to image).

• The 11.4 meters* lower vein shows similar brecciation and sulphide assemblages as the upper vein (link to image).

• GD21-001 undercut an area approximately 30 meters below surface of the southernmost Cliff Showing of the Surebet Zone, which in 2019 yielded an angular fresh float grab sample assaying 967.99 g/t Gold Equivalent or AuEq (29.72 oz/t Gold, 97.19 oz/t Silver) that remains open in all directions (link to image).

• GD21-001 is located 90 meters along strike to the south of the Lower Waterfall Showing of 13.05 g/t AuEq over 15.1 meters (true width).

• A second hole, GD21-002, currently being drilled to the northeast from the same pad, has intercepted the same quartz-sulphide mineralization structure at 33 meters approximately 30 meters north of GD21-001 and currently still in mineralization (link to image).

• Additional fan drilling is also planned for the adjacent Lower Waterfall, Waterfall, Main, Central and North Rubble Showings of the Surebet Zone.

• Up to 5000 meters of drilling are planned and will target the extensive high grade gold-silver discovery from the exposed quartz-sulphide and sulphide occurrences along strike and to depth.

* The stated lengths in meters are downhole core lengths and not true widths. True widths will be calculated once more drilling can confirm the exact geometry of the quartz-sulphides system.

TORONTO, July 12, 2021 (GLOBE NEWSWIRE) — Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IF) (the “Company” or “Goliath”) is very pleased to report initial observations from its 2021 maiden diamond drill campaign at its 100% controlled Golddigger Property (the “Property”). The campaign is designed to trace the high-grade gold-silver zone exposed at surface along 1,000 meters (1km) of strike and to a down dip depth over 500 meters at the Surebet Zone (“Surebet”). Currently the Surebet zone averages 9.84 meters wide grading 10.68 g/t AuEq (with 7.59 g/t Au). Surebet also has 500 meters of vertical relief and 1,000 meters of inferred down dip extent. The project is located in a mining friendly jurisdiction in a world class geological setting near Stewart, BC in the Golden Triangle of British Columbia. Both the Homestake Ridge Deposit (Fury Resources Inc.) and Dolly Varden Silver Mine (Dolly Varden Silver Corp.) are in close proximity.

Dr. Quinton Hennigh, technical advisor to Goliath commented: “Immediate visual confirmation of mineralization in the first hole drilled into a target is one of the most rewarding experiences in exploration. Although assays are required to confirm grade, this first drill hole provides Goliath with its first detailed picture of the geology of the Surebet zone, and it is a very exciting one. The zone appears comprised of two sub-parallel quartz-sulphide vein breccia to intense stockwork zones with an intervening interval of sulphide stockwork mineralization between. Overall width of observed mineralization is a remarkable 57.5 meters. Given the large scale of the Surebet zone and should assays from drilling confirm those encountered during last year’s channel sampling, this could prove to be a significant new discovery in the Golden Triangle.”

“This first drill hole of our 2021 maiden drill campaign has exceeded our expectations,” stated Roger Rosmus, Founder & CEO. “These new sulphide intercepts could potentially have all the makings of the next big high grade gold-silver discovery in the Golden Triangle. This is the first of many holes to be drilled along our 1,000 meters of the surface exposed mineralization on Surebet that remains open. We look forward to reporting the assay results once received and interpreted.”

The inaugural drill hole GD21-001 (138 meters in length, 140°/-70°) cut 57.5 meters* of quartz-sulphide veins along, bound by two distinct and significant multi-meter quartz-sulphides stockwork breccias (link to image). The 3.4 meters* upper vein contains visually identified 10% centimeter-scale banded, clustered and disseminated sulphides, inluding (in decreasing order) iron sulphides as pyrrhotite, zinc sulphides as sphalerite, lead sulphides as galena and copper sulphides as chalcopyrite; followed by 8.9 meters* of strong 40-50% vein stockwork of similar composition as the upper vein. The 11.4 meters* lower vein shows similar brecciation and sulphide assemblages as the upper vein. The host sediments contain 1 to 2% disseminated and stringer pyrrhotite with local enrichments of up to 5%.

GD21-001 undercut an area approximately 35 meters below surface of the southernmost Cliff Showing of the Surebet Zone, which yielded a fresh angular float sample assaying 967.99 g/t AuEq (29.72 oz/t Gold, 97.19 oz/t Silver), and is located 90 meters along strike to the south of the Lower Waterfall Showing of 13.05 g/t AuEq over 15.1 meters (true width).

A second hole, GD21-002, is currently being drilled at the Cliff Showing with a northeast orientation and has intersected, approximately 30 meters north of GD21-001, similar quartz-sulphide veining starting at 30 meters downhole depth. Additional fan drilling is also planned for the adjacent Lower Waterfall, Waterfall, Main, Central and North Rubble Showings of the Surebet Zone.

Goliath has planned for up to 5,000 meters of drilling from multiple drill pads to target the extensive gold-silver discovery exposed at surface at Surebet both along strike and to depth. It has 1,000 meters of strike length, 500 meters of vertical relief and 1,000 meters of inferred down dip extent. The drilling will focus on examining the continuation at depth of the high-grade gold-silver mineralization zone exposed at surface over 1,000 meters of strike averaging 9.84 meters wide at 10.68 g/t AuEq (with 7.59 g/t gold) which remains open (see Company news release dated November 25, 2020).

* The stated lengths in meters are downhole core lengths and not true widths. True widths will be calculated once more drilling can confirm the exact geometry of the quartz-sulphides system.

Golddigger Property

The Property has an area of 23,859 hectares (59,646 acres or 239 square-kilometers) and is located in the world class geological setting of the Golden Triangle area on tide water 30 kilometers southeast of Stewart, BC.

Surebet is located some 8 kilometres southwest of the Homestake Ridge project which is a high-grade gold-silver deposit that contains 982,700 oz of gold @ 4.99 g/t Au and 19,600,000 oz of silver @ 97.7 g/t Ag, with drill intercepts of up to 73 meters of 21 grams per tonne gold and 12 grams per tonne silver (source – Fury Resources Inc. PEA & Website) (Link to Map).

At Surebet, multiple high-grade polymetallic gold-silver targets have been identified along 1 kilometer (1,000 meters) of strike at surface and a half a kilometer (500 meters) of vertical relief with an average true width of 9.84 meters assaying 10.68 g/t AuEq (with 7.59 g/t gold) with 1 kilometer (1,000 meters) of inferred down dip extent (3D Model & Proposed Drill Locations Video Link).

Surebet targets are contained within a shear zone and will be tested for the first time in the 2021 drill campaign. Higher grade polymetallic gold-silver mineralization is contained within a broad alteration halo of strongly silicified Hazelton Group sediments up to 43.5 meters wide containing mineralization assaying up to 0.5 g/t AuEq (Link to news November 25, 2020).

Surebet is characterized by a series of NW-SE trending structures that occur within a package of Hazelton group sediments underlain by Hazelton volcanics and are within 2km of the Red Line. Lidar imagery, drone imagery, and field observations have identified several additional paralleling structures within a 4 square-kilometers area. Geochemical analyses have confirmed high-grade gold-silver polymetallic mineralization within these structures (Lidar Video Link).

Qualified Person

Rein Turna, P. Geo, is the qualified person as defined by National Instrument 43-101, for Goliath Resources Ltd projects, and supervised the preparation of, and has reviewed and approved, the technical information in this release.

About Goliath Resources Limited

Goliath Resources Limited is an explorer of precious metals projects in the prolific Golden Triangle of northwestern British Columbia and the Abitibi Greenstone Belt of Quebec. All of its projects are in world class geological settings and geopolitical safe jurisdictions amenable to mining in Canada.

For more information please contact:
Goliath Resources Limited
Mr. Roger Rosmus
Founder and CEO
Tel: +1-416-488-2887 x222
roger@goliathresources.com
www.goliathresourcesltd.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the OTCQB Venture Market accepts responsibility for the adequacy or accuracy of this release.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Goliath’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to, among other things, the ability of Company to complete the financings and its ability to build value for its shareholders as it develops its mining properties. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to Goliath. Although such statements are based on management's reasonable assumptions, there can be no assurance that the proposed transactions will occur, or that if the proposed transactions do occur, will be completed on the terms described above.

The forward-looking information contained in this release is made as of the date hereof and Goliath is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This announcement does not constitute an offer, invitation, or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal.

The securities referred to herein have not been and will not be will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, BC, July 12, 2021 /CNW/ – Finlay Minerals Ltd. (TSXV: FYL) ("Finlay" or the "Company") is pleased to announce that, further to the Company's news releases dated June 17 and June 25, 2021, the Company has closed, subject to receipt of final approval from the TSX Venture Exchange ("TSX-V"), its private placement financing for total proceeds of $2,643,777 (the "Private Placement"). As part of the Private Placement, Crescat Capital LLC ("Crescat"), for certain funds of Crescat, has made a strategic investment in the Company representing a 9.1% ownership interest and 13% on a fully diluted basis. Crescat will have the right and option to participate in future financings to maintain its equity interest in the Company until such date that Crescat's ownership in the Company falls below 5% of the then-outstanding common shares on a fully-diluted basis.

"Finlay's Silver Hope project is an underexplored, target-rich, polymetallic system associated with a composite intrusive center," commented Quinton Hennigh, technical advisor to Crescat. "The Company has aggressive plans to further define some of the most robust targets and drill them. We are pleased to lead their recent capital raise to ensure this program is funded. We look forward to seeing what discoveries result from this focused exploration program."

Robert Brown, Finlay's President & CEO stated:

"I would like to thank the dedication and diligent work of the Finlay, Crescat, and Ascenta teams in completing this financing process. We, at Finlay, now look forward to starting an IP geophysics program in August, and core drilling in September on the Silver Hope project."

The Private Placement consisted of the issuance of: (i) a total of 17,653,081 non-flow through units (the "NFT Units") for gross proceeds of $1,588,777, at price of $0.09 per NFT Unit, with each NFT Unit comprising one common share of the Company and one common share purchase warrant (each, a "Unit Warrant"); and (ii) a total of 8,791,667 flow through units (each, a "FT Unit"), at a price of $0.12 per FT Unit for gross proceeds of $1,055,000, with each FT Unit comprising one common share of the Company which qualifies as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one Unit Warrant.

Each Unit Warrant entitles the holder of NFT Units or FT Units, as applicable, to acquire one additional common share of the Company (each, a "Warrant Share") at an exercise price of $0.135 per Warrant Share for a period of twenty-four months from the closing of the Private Placement.

In connection with the closing of the Private Placement, the Company: (i) paid cash finder's fees of $161,295 in aggregate to Ascenta Finance Corp. ("Ascenta"), and PI Financial Ltd.; (ii) issued an aggregate of 1,511,323 finder's compensation options (the "Compensation Options") to Ascenta; and (iii) issued 232,000 finder's units (the "Finder's Units") in aggregate to CIBC Wood Gundy and Raymond James Ltd. Each Compensation Option entitles the holder to purchase one Unit at a price of $0.09 or $0.12, as applicable, for a period of twenty-four months expiring on July 9, 2023. All of the Units issuable on exercise of each Compensation Option and the Finder's Units have the same terms as the Units issued to the subscribers of the Private Placement.

All securities issued under the Private Placement are subject to a four-month hold period expiring on November 10, 2021.

The Company expects to use the proceeds raised from the Private Placement to fund general and operating working capital, including Induced Polarization geophysical surveys of the Equity East Zone, expansion of the soil sampling grid, geological mapping and rock sampling, and further core drilling of priority Equity Silver and porphyry copper-type targets on the Silver Hope Property.

The securities being offered will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold within the United States absent registration or an exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

About Crescat Capital LLC

Crescat is a global macro asset management firm headquartered in Denver, Colorado. Crescat's mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro models. Crescat's investment process involves a mix of asset classes and strategies to assist with each client's unique needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metals funds.

Crescat is advised by its technical consultant, Dr. Quinton Hennigh, on investments in gold and silver resource companies. Dr. Hennigh became an economic geologist after obtaining his Ph.D. in Geology/Geochemistry from the Colorado School of Mines. He has more than 30 years of exploration experience with major gold mining firms that include Homestake Mining, Newcrest Mining and Newmont Mining. Recently, Dr. Hennigh founded Novo Resources Corp and serves as its Chairman. Among his notable project involvements are First Mining Gold's Springpole gold deposit in Ontario, Kirkland Lake Gold's acquisition of the Fosterville gold mine in Australia, the Rattlesnake Hills gold deposit in Wyoming, and Lion One's Tuvatu gold project on Fiji.

About Finlay Minerals Ltd.

Finlay is a TSX Venture Exchange company focused on exploration for base and precious metal deposits in northern British Columbia. The Company's properties are:

• the Silver Hope Property, which surrounds the former Equity Silver Mine, includes the 2020 newly discovered Equity East target, porphyry copper-molybdenum mineralization discovered in 2010, along with three silver-copper mineralized zones, in a contiguous trend with the mined-out deposits of the former Equity Silver Mine (71 million oz. silver, 185 million lbs. copper and 508,000 oz. gold; Reference: http://minfile.gov.bc.ca/Summary.aspx?minfilno=093L++001).

• the ATTY Property which is contiguous to the north side of the Kemess East deposit and adjacent to the Kemess Underground deposit of Centerra Gold Inc.; and

• the PIL Property, which is adjacent to TDG Gold's Baker Mine and contiguous with AMARC Resource's Joy property on which Freeport-McMoran has signed an option agreement with Amarc Resources.

Finlay Minerals Ltd. trades under the symbol "FYL" on the TSX Venture Exchange. For further information and details, please visit the Company's website at www.finlayminerals.com.

On behalf of the Board of Directors,

Richard T. Dauphinee,
CFO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information: This news release includes certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements in this news release include statements regarding, among others, the receipt of final approval from the TSX Venture Exchange, the expected use of proceeds from the Private Placement and the exploration plans for the Company's properties. Although Finlay believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration successes, and continued availability of capital and financing and general economic, market or business conditions. These forward-looking statements are based on a number of assumptions including, among other things, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals, the ability of Finlay and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Finlay's proposed transactions and programs on reasonable terms, and the ability of third party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Finlay does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future or otherwise, except as required by applicable law.

SOURCE Finlay Minerals Ltd.

View original content: http://www.newswire.ca/en/releases/archive/July2021/12/c1381.html

In the latest trading session, Freeport-McMoRan (FCX) closed at $36.53, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.35% gain on the day.

Coming into today, shares of the mining company had lost 10.65% in the past month. In that same time, the Basic Materials sector lost 1%, while the S&P 500 gained 3.64%.

FCX will be looking to display strength as it nears its next earnings release. In that report, analysts expect FCX to post earnings of $0.73 per share. This would mark year-over-year growth of 2333.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.83 billion, up 90.81% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $23.43 billion, which would represent changes of +479.63% and +65.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FCX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. FCX is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that FCX has a Forward P/E ratio of 11.66 right now. For comparison, its industry has an average Forward P/E of 15.72, which means FCX is trading at a discount to the group.

We can also see that FCX currently has a PEG ratio of 0.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining – Non Ferrous industry currently had an average PEG ratio of 0.61 as of yesterday's close.

The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Being a successful investor this coming earnings season may be as easy as paying attention to companies with the best potential to expand profit margins amidst the current bout of inflation across spectrums such as raw materials and labor, Goldman Sachs reasons. 

The smartest investors in the game appear to already be placing that bet.

"Investors have started to reward companies with attractive margin profiles. Our valuation model shows that profit margins are the second most important driver of company valuations today, behind only equity duration," said David Kostin, Goldman Sachs chief U.S. equity strategist, in a new research note to clients. 

Kostin outlined 32 companies spanning the health care, industrial, materials, staples and information technologies sectors that have above average net profit margins and are likely to expand them further in 2021 (see below). The median return on these stocks year-to-date has tallied 14%. 

Some of the top-performing stocks include Old Dominion Freight Line, NortonLifeLock, Applied Materials, Seagate Technologies and Freeport-McMoran. All of these names are seen increasing their earnings in excess of 30% this year, compared to 19% for the S&P 500 (excluding financials and utilities). 

And all of them have outperformed the S&P 500's year-to-date gain of 16%. Other stocks such as Netflix and Newmont Corporation have lagged the S&P 500's year-to-date performance, but could be poised to return to favor among investors amid the prospect for each company's profit margins this year (see above chart).  

"S&P 500 margins notched a record high of 11.9% in 1Q 2021, though investors remain focused on the forward margin outlook given rising input costs," Kostin explains. 

Strategists are banking on more than the 32 companies outlined by Goldman to expand profit margins this year. The only question is will companies sustain those gains into 2022 given uncertainties around inflation and taxes.

The S&P 500 is seen rising 11.2% over the next 12 months, according to analysis from FactSet. At the sector level, energy and materials are expected to show the largest gains in valuation (17.1% and 15.9%, respectively). 

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Today we will run through one way of estimating the intrinsic value of Intrepid Potash, Inc. (NYSE:IPI) by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.

We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.

View our latest analysis for Intrepid Potash

The model

We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:

10-year free cash flow (FCF) estimate

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$154m

The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = US$19m× (1 + 2.0%) ÷ (6.8%– 2.0%) = US$410m

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$410m÷ ( 1 + 6.8%)¹⁰= US$212m

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$366m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$31.5, the company appears around fair value at the time of writing. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

Important assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Intrepid Potash as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 1.026. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Moving On:

Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Intrepid Potash, we've put together three fundamental items you should look at:

1. Risks: We feel that you should assess the 1 warning sign for Intrepid Potash we've flagged before making an investment in the company.

2. Future Earnings: How does IPI's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

In this article we are going to estimate the intrinsic value of Sociedad Química y Minera de Chile S.A. (NYSE:SQM) by taking the forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward.

We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.

See our latest analysis for Sociedad Química y Minera de Chile

The method

We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:

10-year free cash flow (FCF) forecast

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$3.6b

We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = US$666m× (1 + 2.0%) ÷ (7.6%– 2.0%) = US$12b

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$12b÷ ( 1 + 7.6%)¹⁰= US$5.9b

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$9.5b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$47.9, the company appears potentially overvalued at the time of writing. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.

The assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Sociedad Química y Minera de Chile as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 1.030. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Moving On:

Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a premium to intrinsic value? For Sociedad Química y Minera de Chile, there are three relevant aspects you should consider:

1. Risks: For example, we've discovered 1 warning sign for Sociedad Química y Minera de Chile that you should be aware of before investing here.

2. Future Earnings: How does SQM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Hecla Mining Company (NYSE:HL) shareholders might be concerned after seeing the share price drop 21% in the last month. But that doesn't change the fact that the returns over the last three years have been very strong. Indeed, the share price is up a very strong 106% in that time. It's not uncommon to see a share price retrace a bit, after a big gain. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.

Check out our latest analysis for Hecla Mining

We don't think that Hecla Mining's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 3 years Hecla Mining saw its revenue grow at 9.8% per year. That's pretty nice growth. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 27% per year over three years. It's hard to value pre-profit businesses, but it seems like the market has become a lot more optimistic about this one! Some investors like to buy in just after a company becomes profitable, since that can be a powerful inflexion point.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that Hecla Mining has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Hecla Mining in this interactive graph of future profit estimates.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Hecla Mining, it has a TSR of 109% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's good to see that Hecla Mining has rewarded shareholders with a total shareholder return of 78% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Hecla Mining better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Hecla Mining you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

(Bloomberg) — Petra Diamonds Ltd. sold a 39.3-carat blue gem for more than $40 million, making it one of the most expensive rough diamonds ever.

The small miner sold the exceptional Type IIb blue diamond to a joint venture between top producer De Beers and Diacore, a trading company owned by the billionaire Steinmetz family, it said Monday. The stone fetched just over $1 million per carat and is the most expensive gem Petra has ever sold.

Petra found the diamond at the Cullinan mine in South Africa in April. The mine, once owned by De Beers, is famous for both large and blue stones and was where world’s biggest diamond was found in 1905. Blue stones are among the most rare and valuable.

The sale is good news for Petra, which was forced to restructure its debt last year, when the Covid-19 crisis brought the industry to a standstill at a time when the company was already facing a mountain of debt and falling diamond prices. The shares, which were once worth more than $1.5 billion, closed up 1.1% on Monday.

More stories like this are available on bloomberg.com

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©2021 Bloomberg L.P.

Metals X Limited (ASX:MLX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Metals X Limited engages in the production of tin in Australia. The AU$200m market-cap company’s loss lessened since it announced a AU$80m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$58m, as it approaches breakeven. The most pressing concern for investors is Metals X's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Metals X

Metals X is bordering on breakeven, according to some Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$63m in 2022. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Metals X's upcoming projects, though, keep in mind that generally a metal and mining business has lumpy cash flows which are contingent on the natural resource mined and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one issue worth mentioning. Metals X currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Metals X's case is 43%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Metals X which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Metals X, take a look at Metals X's company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. Valuation: What is Metals X worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Metals X is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Metals X’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

In this article, we discuss the 10 best oil stocks to buy amid post-COVID demand boom and price volatility. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility.

Oil companies, perhaps one of the biggest losers of the coronavirus lockdowns and the dramatic decrease in domestic and international travel last year, are on the rebound trail as the post-COVID economy takes off, resulting in increased demand for oil in the wake of cars returning to roads and airports around the world reopening for business. According to a study published by the World Bank, crude oil prices are expected to average $56/bbl in 2021 and $60/bbl in 2022, driven by production constraints put in place by oil producing nations.

Some of the companies that can expect to take advantage of the increase in oil prices over the next few months include Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), among others. Oil giants like Exxon Mobil Corporation (NYSE: XOM) are in the process of transitioning away from fossil fuels, the firm has adopted economic, social, and governance (ESG) policies in house to signal intent in this regard, but still depend in large part on oil and other fossil fuels for revenue generation.

However, some have warned of drastic consequences if energy firms are forced to transition away from oil in a hasty manner. In early June, Igor Sechin, the chief of Russian oil firm Rosneft, warned of a severe oil shortage if consumption continued and investments into the industry were discouraged. He made the comments while speaking to an energy panel at the International Economic Forum. As oil prices reach their highest levels in six years, largely as a result of delays in production increases by oil producing nations, investors should take note.

The Organization of the Petroleum Exporting Countries (OPEC), which includes some of the top oil producing nations in the world, and OPEC+, which has an additional ten members, including Russia and Kazakhstan, have recently postponed talks regarding a disagreement over production curbs. However, analysts expect a major policy decision in this regard soon. Stephen Schork, an advisor at The Schork Group, an energy analysis firm, told news platform CNBC earlier this week that it was highly likely that the production issue was going to resolve itself.

It remains to be seen how OPEC nations resolve their differences and bring much-needed stability to the prices of oil. As new oil projects face the wrath of environmentalists, it might not be too long before OPEC countries are forced to cooperate for their own survival. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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With this context in mind, here is our list of the 10 best oil stocks to buy amid post-COVID demand boom and price volatility. These were ranked keeping in mind hedge fund sentiment, business fundamentals, and the analyst ratings for each firm.

Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility

10. Dorian LPG Ltd. (NYSE: LPG)

Number of Hedge Fund Holders: 18

Dorian LPG Ltd. (NYSE: LPG) is a petroleum and gas transportation firm. It is ranked tenth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have returned 75% to investors over the course of the past twelve months.

On May 19, Dorian LPG Ltd. (NYSE: LPG) posted earnings for the fourth fiscal quarter, reporting earnings per share of $0.86, beating market estimates by $0.01. The revenue over the period was close to $100 million, up close to 5% year-on-year.

At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $99 million in Dorian LPG Ltd. (NYSE: LPG), up from 14 the preceding quarter worth $128 million.

Just like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), Dorian LPG Ltd. (NYSE: LPG) is one of the stocks to buy amid post-COVID demand boom and price volatility.

9. Pioneer Natural Resources Company (NYSE: PXD)

Number of Hedge Fund Holders: 37

Pioneer Natural Resources Company (NYSE: PXD) is an energy firm exploring and producing oil and gas. It is placed ninth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The stock has returned 71% to investors over the course of the past year.

On June 21, investment advisory Bernstein upgraded Pioneer Natural Resources Company (NYSE: PXD) stock to Outperform from Market Perform with a price target of $202, up from the previous target of $156.

Out of the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Pioneer Natural Resources Company (NYSE: PXD) with 1.2 million shares worth more than $192 million.

Just like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), Pioneer Natural Resources Company (NYSE: PXD) is one of the stocks to buy amid post-COVID demand boom and price volatility.

8. Devon Energy Corporation (NYSE: DVN)

Number of Hedge Fund Holders: 52

Devon Energy Corporation (NYSE: DVN) is an energy company with interests in oil, gas, and natural gas liquids. It is ranked eighth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have returned 182% to investors in the past year.

On June 21, Devon Energy Corporation (NYSE: DVN) announced a new plan to achieve Scope 1 and 2 net zero greenhouse gas emissions by 2050. The share price of the energy firm jumped more than 3.5% after the announcement.

Out of the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE: DVN) with 11.3 million shares worth more than $247 million.

Just like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), Devon Energy Corporation (NYSE: DVN) is one of the stocks to buy amid post-COVID demand boom and price volatility.

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE: DVN) was one of them. Here is what the fund said:

7. CNX Resources Corporation (NYSE: CNX)

Number of Hedge Fund Holders: 23

CNX Resources Corporation (NYSE: CNX) is an oil and gas company based in Pennsylvania. It is placed seventh on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The stock has returned 58% to investors in the past twelve months.

On April 29, CNX Resources Corporation (NYSE: CNX) posted earnings results for the first quarter of 2021, reporting earnings per share of $0.43, beating market estimates by $0.17. The revenue over the period was more than $473 million, beating market estimates by $60 million.

At the end of the first quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $607 million in CNX Resources Corporation (NYSE: CNX), down from 25 in the previous quarter worth $551 million.

Just like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), CNX Resources Corporation (NYSE: CNX) is one of the stocks to buy amid post-COVID demand boom and price volatility.

In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and CNX Resources Corporation (NYSE: CNX) was one of them. Here is what the fund said:

6. ConocoPhillips (NYSE: COP)

Number of Hedge Fund Holders: 51

ConocoPhillips (NYSE: COP) is an energy company based in Texas. It is ranked sixth on our list of 10 best oil stocks to buy amid post-COVID demand boom and price volatility. The company’s shares have returned 53% to investors in the past year.

On July 1, investment advisory Wells Fargo maintained a Buy rating on ConocoPhillips (NYSE: COP) stock with a price target of $73. The advisory noted the efforts the firm was making to improve return on capital in the ratings update.

At the end of the first quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in ConocoPhillips (NYSE: COP), up from 49 in the previous quarter worth $687 million.

Just like Exxon Mobil Corporation (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Energy Transfer LP (NYSE: ET-PD), ConocoPhillips (NYSE: COP) is one of the stocks to buy amid post-COVID demand boom and price volatility.

In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and ConocoPhillips (NYSE: COP) was one of them. Here is what the fund said:

Click to continue reading and see 5 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility.

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• 10 Top Hedge Funds Focusing on ESG and Impact Investing

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• 10 Best Cheap Oil Stocks to Buy in 2021

Disclose. None. 10 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility is originally published on Insider Monkey.

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the EnerSys (NYSE:ENS) share price is 55% higher than it was a year ago, much better than the market return of around 39% (not including dividends) in the same period. That's a solid performance by our standards! Having said that, the longer term returns aren't so impressive, with stock gaining just 26% in three years.

See our latest analysis for EnerSys

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year EnerSys grew its earnings per share (EPS) by 4.2%. The share price gain of 55% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

This free interactive report on EnerSys' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that EnerSys shareholders have received a total shareholder return of 56% over the last year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 10% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for EnerSys that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Today we will run through one way of estimating the intrinsic value of Compass Minerals International, Inc. (NYSE:CMP) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!

We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.

View our latest analysis for Compass Minerals International

What's the estimated valuation?

We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:

10-year free cash flow (FCF) estimate

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$1.2b

After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 8.4%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = US$214m× (1 + 2.0%) ÷ (8.4%– 2.0%) = US$3.4b

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= US$3.4b÷ ( 1 + 8.4%)¹⁰= US$1.5b

The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$2.7b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$60.8, the company appears a touch undervalued at a 23% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.

The assumptions

The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Compass Minerals International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.353. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Next Steps:

Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Compass Minerals International, we've compiled three important items you should explore:

1. Risks: You should be aware of the 3 warning signs for Compass Minerals International (1 makes us a bit uncomfortable!) we've uncovered before considering an investment in the company.

2. Future Earnings: How does CMP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

We think all investors should try to buy and hold high quality multi-year winners. And we've seen some truly amazing gains over the years. For example, the Fortescue Metals Group Limited (ASX:FMG) share price is up a whopping 464% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. It's also good to see the share price up 14% over the last quarter.

Check out our latest analysis for Fortescue Metals Group

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Fortescue Metals Group managed to grow its earnings per share at 84% a year. This EPS growth is higher than the 41% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. The reasonably low P/E ratio of 8.58 also suggests market apprehension.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Fortescue Metals Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Fortescue Metals Group's TSR for the last 5 years was 825%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Fortescue Metals Group shareholders have received a total shareholder return of 81% over the last year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 56%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Fortescue Metals Group you should be aware of, and 1 of them doesn't sit too well with us.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Northampton, MA –News Direct– Freeport-McMoRan

With the number of COVID-19 cases surging in southern Peru near where Cerro Verde operates, the mine is providing oxygen cylinders and oxygen concentrators and their accessories to health centers in the Arequipa Region.

Cerro Verde also continues to participate in meetings with community health officials and is participating in vaccination campaigns in Yarambaba, Tiabaya and La Joya, as well as providing personal protective equipment to those communities. In addition, Cerro Verde is purchasing equipment for the cold transport and storage of vaccines for health centers in the region. They also are providing outdoor seating, hats, masks and water bottles to those waiting in vaccination lines.

Since the start of the outbreak, Cerro Verde has donated funds to purchase CPAP ventilators, built oxygen generating plants, helped acquire more than half a million test kits for the government and contributed tens of thousands of PPE items to regional health centers. Cerro Verde also provided bus transportation for health-care workers and donated food baskets to families impacted by COVID-19.

To learn more about how Freeport-McMoRan works in partnership with local stakeholders to support sustainable futures, please visit www.fcx.com/sustainability.

See the 2020 Annual Report on Sustainability for more information on their social, economic and environmental efforts.

View additional multimedia and more ESG storytelling from Freeport-McMoRan on 3blmedia.com

View source version on newsdirect.com: https://newsdirect.com/news/cerro-verde-a-freeport-mcmoran-company-continues-oxygen-donations-and-other-pandemic-relief-to-arequipa-hospitals-399727200

LONDON MARKETS Stocks in London moved higher on Friday, as investors took in stride news of a growth pullback in the country. Deal news sent FTSE 250-listed Vectura climbing. The FTSE 100 index (UK:UKX) rose 0.

Investors looking for stocks in the Chemical – Diversified sector might want to consider either Huntsman (HUN) or FMC (FMC). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Huntsman and FMC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HUN has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HUN currently has a forward P/E ratio of 9.31, while FMC has a forward P/E of 14.73. We also note that HUN has a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FMC currently has a PEG ratio of 1.34.

Another notable valuation metric for HUN is its P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FMC has a P/B of 4.48.

These are just a few of the metrics contributing to HUN's Value grade of A and FMC's Value grade of C.

HUN sticks out from FMC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HUN is the better option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Huntsman Corporation (HUN) : Free Stock Analysis Report
 
FMC Corporation (FMC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

• Mr. Smith has used incomplete, faulty and misleading disclosure in his activist circular, and needs to correct this information immediately in a new circular.

• KPMG continues its forensic investigation of Mr. Smith’s prior misuse of corporate funds and corporate assets.

• Shareholders are encouraged to continue voting on the GOLD proxy. Shareholders with questions on voting should contact Kingsdale Advisors at 1-800-749-9890 or contactus@kingsdaleadvisors.com.

VANCOUVER, British Columbia, July 09, 2021–(BUSINESS WIRE)–Fancamp Exploration Ltd. ("Fancamp" or the "Corporation") (TSX Venture Exchange: FNC) would like to thank shareholders for their overwhelming support on the GOLD proxy as it continues to investigate Mr. Peter H. Smith’s conduct during his 30-year tenure at the Corporation. Mr. Smith spent 30 years using Fancamp as his personal bank account and it appears that he is planning to keep doing so in the future. Even worse, Mr. Smith has deliberately avoided disclosing how much he intends to take from the Corporation if he wins the proxy fight, all while asking shareholders to support him.

Shareholders need to know the truth about Mr. Smith. As the formal forensic investigation, with the assistance of KPMG International Ltd. ("KPMG") is advancing, Fancamp requires that Mr. Smith update and mail a revised circular that properly discloses his true intention for the use of corporate funds.

Mr. Smith’s Misleading Circular Disclosure Requires Remailing

While Mr. Smith claims he is on shareholders’ side, both his past and current actions tell a different story. Mr. Smith has tried to trick shareholders into obtaining their votes by omitting:

• How much he plans to take from the Corporation to fund his self-serving proxy fight, and

• The number of shares (common or special) he owns in Fancamp’s subsidiary, The Magpie Mines Inc. ("Magpie"), a valuable corporate asset which he personally controls.

The Corporation believes Mr. Smith has withheld this and other information intentionally to ensure it does not negatively impact what should be the balanced view of shareholders.

Mr. Smith started this proxy fight to regain control of the Corporation and has indicated he will use Fancamp’s money to personally repay himself for certain expenses; however, he has been purposely vague on the actual amount. Mr. Smith acknowledges in his circular that he will seek to be reimbursed $170,000 for proxy solicitation, but does not specify the extensive fees of his legal counsel and other advisors, nor the $527,000 his is seeking through the courts in retaliation for the for-cause termination of his consulting agreement with the Corporation. Taken together, the Corporation believes Mr. Smith will seek over $1 million to repay himself for the proxy contest he started.

Even if Mr. Smith and his legal counsel do not agree on the clear need for this transparency, they should take the advice of Mr. Smith’s proxy solicitor, who had previously and correctly argued for the importance of such disclosure. To paraphrase Gryphon Advisors in Australis Capital Inc.’s proxy fight (October 22, 2020) against Terry Booth:

"…this means that [Mr. Smith] and his Dissidents, if able to gain control of your Board and Company, will then seek to cover their fees with shareholders’ cash. Historically, the shareholder value destruction associated with [Mr. Smith] and his Dissident Nominees has taken some time. At [Fancamp], it would be immediate, material and come directly out of your pocket."¹

Fancamp agrees with the statement above.

Mr. Smith also failed to disclose his interest in Magpie, a valuable corporate asset that he paralyzed for his own personal benefit. Mr. Smith is required to disclose "the number of securities of each class of the venture issuer and any of its subsidiaries beneficially owned, or controlled or directed, directly or indirectly." However, Mr. Smith’s circular makes no reference to his Magpie common or special shares.

Additionally, Mr. Smith was required to pay for his Magpie special shares. However, early findings from KPMG’s forensic investigation found that Mr. Smith did not pay cash for his Magpie special shares, and despite his recent claims that he provided services for Magpie in exchange for the shares, there was no evidence of any such services being provided.

Unlike Mr. Smith, Fancamp believes it is critically important for shareholders to have a complete and transparent view of their investment and Corporation. While Mr. Smith has noted he "will seek reimbursement from Fancamp," he has failed to properly disclose how much he plans to take from Fancamp. Specifically, the circular indicates that Mr. Smith will ask Fancamp to pay for his legal fees but does not disclose the quantum of these fees. Fancamp believes that Mr. Smith should disclose this information, so that shareholders are fully informed when they vote.

Independent Forensic Investigation Continuing Despite Mr. Smith’s Non-Cooperation

The Corporation is pleased to share that the formal forensic investigation, with the assistance of KPMG, is advancing. However, given the extensive nature of the investigation, Mr. Smith’s failure to provide related documentation, and generally poor history of corporate record keeping in his time as CEO, more time is required to complete the investigation. The Corporation looks forward to providing full updates to shareholders as soon as possible.

Advisors

Lavery, de Billy, L.L.P. and Goodmans LLP are serving as legal advisor to Fancamp. Harris & Company LLP is serving as litigation counsel to Fancamp. Kingsdale Advisors is acting as strategic shareholder and communications advisor to Fancamp. Koffman Kalef LLP is serving as legal advisor to the Special Committee.

About Fancamp Exploration Ltd. (TSX-V: FNC)

Fancamp is a growing Canadian mineral exploration corporation dedicated to its value-added strategy of advancing mineral properties through exploration and development. The Corporation owns numerous mineral resource properties in Quebec, Ontario and New Brunswick, including gold, rare earth metals, strategic and base metals, zinc, chromium, titanium and more. Fancamp is also building on the industrial possibilities inherent in dealing with some of these materials, notable being the development of its Titanium technology strategy. It has recently announced the acquisition of ScoZinc, a Canadian exploration and mining corporation that has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia, as well as several prospective exploration licenses in surrounding regions. The Corporation is managed by a new and focused leadership team with decades of mining, exploration and complementary technology experience.

Forward-looking Statements

This news release includes certain statements which are not comprised of historical facts and that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include estimates and statements that describe Fancamp’s future plans, objectives or goals, including words to the effect that Fancamp or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", "foresees" or "plan". Since forward-looking statements are based on multiple factors, assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Fancamp, Fancamp provides no assurance that actual results will meet the management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially or simply fail to materialize from those expressed or implied by such forward-looking information. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Fancamp’s expectations include, among others, uncertainties relating to the development of the relevant mining properties and risks relating to the terms and duration of any government orders suspending or limiting operations that are applicable to Fancamp or the relevant mining properties; the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such responses, political, economic, environmental and permitting risks, mining operational and development risks, litigation risks, regulatory restrictions, environmental and permitting restrictions and liabilities, the inability of Fancamp to raise capital or secure necessary financing in the future, as well as factors discussed in the section entitled "Risks and Uncertainties" in Fancamp’s management’s discussion and analysis of Fancamp’s financial statements for the period ended January 31, 2021. Although Fancamp has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. Fancamp considers its assumptions to be reasonable based on information currently available, but there can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

¹ https://www.prnewswire.com/news-releases/australis-capital-issues-letter-to-shareholders-301158371.html

View source version on businesswire.com: https://www.businesswire.com/news/home/20210709005458/en/

Contacts

For Further Information
Rajesh Sharma, Chief Executive Officer
+1 (604) 434 8829
info@fancamp.ca

Debra Chapman, Chief Financial Officer
+1 (604) 434 8829
info@fancamp.ca

Media Contact
Hyunjoo Kim
Director, Communication, Marketing & Digital Strategy
Kingsdale Advisors
Phone: 416-867-2357
Cell: 416-899-6463
Email: hkim@kingsdaleadvisors.com

Does the July share price for IMPACT Silver Corp. (CVE:IPT) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There's really not all that much to it, even though it might appear quite complex.

Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.

See our latest analysis for IMPACT Silver

Crunching the numbers

We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:

10-year free cash flow (FCF) forecast

("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = CA$20m

After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.5%. We discount the terminal cash flows to today's value at a cost of equity of 6.4%.

Terminal Value (TV)= FCF₂₀₃₁ × (1 + g) ÷ (r – g) = CA$4.7m× (1 + 1.5%) ÷ (6.4%– 1.5%) = CA$99m

Present Value of Terminal Value (PVTV)= TV / (1 + r)¹⁰= CA$99m÷ ( 1 + 6.4%)¹⁰= CA$53m

The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$73m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of CA$0.6, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.

Important assumptions

We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at IMPACT Silver as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.4%, which is based on a levered beta of 1.035. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.

Looking Ahead:

Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For IMPACT Silver, we've compiled three important aspects you should further examine:

1. Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with IMPACT Silver , and understanding these should be part of your investment process.

2. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!

3. Other Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook!

PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the TSXV every day. If you want to find the calculation for other stocks just search here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

(Adds prosecutor quote, company comment)

By Marta Nogueira

RIO DE JANEIRO, July 9 (Reuters) – Federal prosecutors in Brazil are seeking a definitive settlement with miner Samarco and it's shareholders, BHP Group and Vale, for damages caused by the rupture of a tailings dam in 2015, the lead prosecutor told Reuters.

Carlos Bruno Ferreira da Silva, who is leading the task force responsible for the case, said in an interview this week that prosecutors felt a previous agreement – in which the companies agreed to pay around 20 billion reais ($3.80 billion)- had not been effective enough.

He declined to put a figure on how much companies might have to pay, but cited a previous lawsuit seeking 155 billion reais as a potential benchmark.

He also said the settlement would look to learn from the agreement signed with Vale for a separate dam disaster in 2019 at Brumadinho, in which the company agreed to pay 37.69 billion reais ($7.17 billion).

The dam collapse at the Samarco iron ore mine near the town of Mariana in the Brazilian state of Minas Gerais is widely regarded as the country's largest ever environmental disaster. It released enough thick red sludge to fill about 12,000 Olympic swimming pools, flattened an entire village, killed 19 people and left hundreds homeless.

The waste flooded the Rio Doce river, choking fish and spitting them lifeless to the surface.

In 2016, the companies agreed an initial settlement with prosecutors which created a foundation through which to repair damages and a complicated chronology for payments. But the deal left open space for a final definitive agreement.

Silva said there were nearly 85,000 still-unresolved lawsuits relating to the disaster and added that authorities, the mining companies and the impacted population were all unhappy with the earlier agreement.

"Everyone thinks the situation could be better," he said.

In response to requests for comment, Samarco, Vale, BHP and the Renova Foundation – responsible for implementing reparations – said they remain committed to repairing the damage done.

The negotiations with prosecutors, they added, will not interfere with projects and compensations currently in progress. ($1 = 5.2579 reais) (Reporting by Marta Nogueira, writing by Stephen Eisenhammer, Editing by Chris Reese and Diane Craft)

TORONTO, July 9, 2021 /CNW/ – Adventus Mining Corporation ("Adventus" or the "Company") (TSXV: ADZN) (OTCQX: ADVZF) is pleased to announce that it has entered into an agreement with 2176423 Ontario Ltd., a private company controlled by Eric Sprott, to sell 17,336,339 common shares (the "Shares") of Canstar Resources Inc. ("Canstar") (TSXV: ROX) (OTCQB: CSRNF) at a price of $0.375 per Share for gross proceeds to Adventus in the amount of $6,501,127.12 (collectively, the "Sale Transaction").

Christian Kargl-Simard, President and CEO of Adventus commented, "We are excited at the ongoing momentum and success Canstar is having in Newfoundland, Canada, but must continue to focus on advancing and de-risking our core copper-gold business in Ecuador. We are pleased to have found an investor as renowned as Eric Sprott to purchase our Canstar stake with a longer-term vision for the business. As this ownership stake was non-core, the funds will go towards incremental exploration and development expenditures in Ecuador as well as general working capital and corporate purposes."

The Sale Transaction is scheduled to close in two tranches: the first tranche of 10,401,802 Shares is anticipated to close on or about July 15, 2021 for proceeds of $‎3,900,675.75 ‎and the second tranche of 6,934,537 Shares is anticipated to close on or about August 17, 2021 for proceeds of $‎‎2,600,451.37 ‎following release from escrow, subject to customary closing conditions. All currencies referenced in this news release are in Canadian dollars.

Early Warning Disclosure

Upon closing of the Sale Transaction, Adventus will no longer hold any common shares in Canstar.

Adventus will file an early warning report under National Instrument 62-103 in connection with the closing of the Sale Transaction. As Adventus will have decreased its security holdings in Canstar below 10%, following the foregoing early warning report filing, it will no longer be required to report under the early warning requirements of National Instrument 62-104 – Take-Over Bids and Issuer Bids with respect to Canstar, unless its security holdings in Canstar increases to 10% or more in the future.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This press release contains "forward -looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking information herein includes, but is not limited to, statements that address activities, events, or developments that Adventus expect or anticipate will or may occur in the future. Although Adventus have attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Adventus undertake to update any forward-looking information except in accordance with applicable securities laws. Forward looking information in this news release includes the future closing of the Sales Transaction and the anticipated timing thereof; and the Company's future ownership of common shares of Canstar.

SOURCE Adventus Mining Corporation

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2021/09/c0457.html

BRISBANE, Australia, July 09, 2021 (GLOBE NEWSWIRE) — Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) advises that production for the June 2021 quarter was 3,300 tonnes of lithium carbonate. Approximately 66% of production was battery grade lithium carbonate which is a significant increase on the June 2020 quarter that was 21% battery grade lithium carbonate.

Sales of Olaroz lithium carbonate during the June 2021 quarter were 2,549 tonnes at US$8,476/tonne FOB¹, with pricing up 45% on the March 2021 quarter. Lithium prices received by Olaroz are now up more than 170% in the last nine months.

Inventory has increased during the June quarter due to COVID-19 related transport delays and the requirement to hold additional safety stock in Japan to guarantee delivery into the Prime Planet Energy and Solutions (PPES) contract.

Full details of June quarter performance will be released in the production report on 22 July 2021 with a management briefing at 10.30am AEST (Sydney, Melbourne, Brisbane) via a webcast available at www.orocobre.com. Written questions may be submitted via the webcast.

An archive copy of the briefing and Q&A session will subsequently be made available on the Company website.

Authorised by:

Richard S. Anthon
Joint Company Secretary

For more information please contact:

Andrew Barber
Chief Investor Relations Officer
Orocobre Limited
T: +61 7 3871 3985
M: +61 418 783 701
E: abarber@orocobre.com
W: www.orocobre.com

Twitter: https://twitter.com/OrocobreLimited
LinkedIn: https://www.linkedin.com/company/orocobre-limited
Facebook: https://www.facebook.com/OrocobreLimited/
Instagram: https://www.instagram.com/orocobre/
YouTube: https://www.youtube.com/OrocobreLimited

Click here to subscribe to the Orocobre e-Newsletter

About Orocobre Limited

Orocobre Limited (Orocobre) is a dynamic global lithium carbonate producer and an established producer of boron. Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: ORE), (TSX: ORL). Orocobre’s interests include its Olaroz Lithium Facility in Northern Argentina, a material JORC Resource in the adjacent Cauchari Basin and Borax Argentina, an established boron minerals and refined chemicals producer. The Company has commenced an expansion at Olaroz and construction of the Naraha Lithium Hydroxide Plant in Japan. For further information, please visit www.orocobre.com.

_________________

¹ Orocobre report price as “FOB” (Free On Board) which excludes insurance and freight charges included in “CIF” (Cost, Insurance, Freight) pricing. Therefore, the Company’s reported prices are net of freight (shipping), insurance and sales commission. FOB prices are reported by the Company to provide clarity on the sales revenue that is recognized by SDJ, the joint venture company in Argentina.

TORONTO, July 09, 2021 (GLOBE NEWSWIRE) — First Quantum Minerals Ltd. (“FQM” or the “Company”) (TSX: FM) will release second quarter 2021 financial and operating results on Tuesday, July 27, 2021 after the close of the Toronto Stock Exchange. The Company will host a conference call and webcast to discuss the results on Wednesday, July 28, 2021 at 9:00 am (ET).

Conference call and webcast details:

Conference call replay:

The conference call replay will be available from July 28, 2021 until 11:59pm ET on August 11, 2021.

For further information, visit our website at www.first-quantum.com or contact:

Ryan MacWilliam, Director, Business Development and Investor Relations
(416) 361-3400 Toll-free: 1 (888) 688-6577
E-Mail: info@fqml.com

EVE Investments Limited (ASX:EVE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EVE Investments Limited is a venture capital firm specializing in seed and startup investments. With the latest financial year loss of AU$2.4m and a trailing-twelve-month loss of AU$2.1m, the AU$19m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which EVE Investments will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for EVE Investments

Expectations from some of the Australian Food analysts is that EVE Investments is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$212k in 2022. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 120% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for EVE Investments given that this is a high-level summary, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 4.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of EVE Investments to cover in one brief article, but the key fundamentals for the company can all be found in one place – EVE Investments' company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Historical Track Record: What has EVE Investments' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EVE Investments' board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about… and every practical investor I know worries about.' So it seems the smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess how risky a company is. As with many other companies Aurcana Silver Corporation (CVE:AUN) makes use of debt. But is this debt a concern to shareholders?

Why Does Debt Bring Risk?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.

Check out our latest analysis for Aurcana Silver

What Is Aurcana Silver's Net Debt?

As you can see below, at the end of March 2021, Aurcana Silver had US$20.7m of debt, up from none a year ago. Click the image for more detail. But on the other hand it also has US$39.1m in cash, leading to a US$18.5m net cash position.

How Strong Is Aurcana Silver's Balance Sheet?

Zooming in on the latest balance sheet data, we can see that Aurcana Silver had liabilities of US$1.54m due within 12 months and liabilities of US$29.0m due beyond that. Offsetting this, it had US$39.1m in cash and US$46.4k in receivables that were due within 12 months. So it actually has US$8.66m more liquid assets than total liabilities.

This surplus suggests that Aurcana Silver has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Succinctly put, Aurcana Silver boasts net cash, so it's fair to say it does not have a heavy debt load! There's no doubt that we learn most about debt from the balance sheet. But it is Aurcana Silver's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.

Given its lack of meaningful operating revenue, investors are probably hoping that Aurcana Silver finds some valuable resources, before it runs out of money.

So How Risky Is Aurcana Silver?

Statistically speaking companies that lose money are riskier than those that make money. And the fact is that over the last twelve months Aurcana Silver lost money at the earnings before interest and tax (EBIT) line. Indeed, in that time it burnt through US$36m of cash and made a loss of US$15m. Given it only has net cash of US$18.5m, the company may need to raise more capital if it doesn't reach break-even soon. Overall, its balance sheet doesn't seem overly risky, at the moment, but we're always cautious until we see the positive free cash flow. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet – far from it. We've identified 2 warning signs with Aurcana Silver (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Growing social media attention on uranium is surely playing a role in the latest surge in its equity valuations. According to the study “Uranium Outlook” by RBC Elements, the 230% increase in monthly mentions since December 2020 concurs with the recent valuation run-up.

Source: Shutterstock

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

Is this something investors should keep track of if they are interested in dabbling into the radioactive metal’s sector? This certainly is a trillion-dollar question.

Social Media Activity Bolsters Uranium Valuations

RBC Elements has been tracking the activity of uranium equities on social media over the last 10 years, and it has come to some pretty interesting conclusions.

“As uranium market fundamentals have improved only modestly in the past 6 months compared to the sharp rise in equity values, we believe increased social media attention may be contributing to higher valuations,” according to the report

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  7 Undervalued Stocks to Buy for July 2021

RBC analysts agree that continuing social media activity could keep uranium valuations high compared to actual fundamentals. However, since social media trends swerve at high speed, investors should be cautious as “contributors are unregulated and may present biased views that serve their own interests,” states the report.

Isn’t It Just a Coincidence?

To answer the trillion-dollar question, RBC Elements assures that given the social media activity of uranium equity, investors should definitely consider the sector. Although establishing a direct causality is no easy task, analysts have traced the connection between social media activity and uranium equity moves over the past four years.

In fact, since December 2020, some months display higher social media mentions for uranium as an investment which are consistent with higher uranium equity returns. They assert: “We think the improving uranium market trends have been amplified by social media excitement, driving uranium equities ahead of actual fundamentals.”

However, there is a strong chance that the rise in social media mentions on uranium equity stems from the actual growing interest in nuclear energy as an investment. Nuclear energy mentions have also increased since December 2020 after the election of U.S. President Biden and amid a larger global attention to de-carbonization –especially in the past six months.

As reported by Trading Economics, the market for nuclear fuel has been warming up recently as governments, including the U.S. and China, are veering towards including nuclear power in their clean energy plans. “Meanwhile, supply remains limited as uranium mining has been steadily cut back in recent years.”

How do Other Commodities Perform on Social Media?

What about other commodities, also critical to a clean energy transition? RBC analysts argue that the impact of uranium equities on social media is not to be underestimated, especially seen in the light of cobalt and copper.

“On a relative basis, uranium social media activity is 3x higher than cobalt and 15x higher than copper.” Since December last year, not only have uranium mentions relatively increased over the other clean energy commodities, but the actual social media sentiment is also on a high.

As it turned neutral when uranium prices plunged in 2018, mentions have been 20% net positive as of January 2021.

When taken to specific companies, strong equity performance was consistent with increased social media activity. Cameco Corp (NYSE:CCJ) reported an increase in its share price index value as the total mention count on social media jumped by 64% between the second half of 2020 and the first half of 2021.

Seeking Alpha reported two weeks ago that Cameco stock had had “an impressive run in the past year.” However, some potential short-term trends in the global market, could “deflate it in the short term.”

Share price index value also picked up significantly for Denison Mines Corp (NYSEAMERICAN:DNN), whose social media mentions have skyrocketed by 187% during the same period. Global Atomic Corp –the Canadian resource company developing the high-grade Dasa uranium deposit in Niger – saw the sharpest increase in its share price index value with an 86% in mentions surge.

Uranium Futures Are on the Rise

According to Trading Economics, uranium continues to build its momentum with NYMEX futures trading above $32 a pound and reaching their highest peaks since July 2020 in the midst of reduced inventory levels and greater demand.

It was not long ago that, during the onset of Covid-19, the radioactive metal was up 31% in April 2020, making it the world’s highest-performing asset.

The gains were driven by the mine closures that reduced more than a third of annual global production, at a time when demand from power plants remained relatively stable. “This is a double whammy in favor of uranium,” said back then Nick Piquard, ETF portfolio manager at Horizons. “Not only is Covid-19 not likely to have affected nuclear power demand much, but it is certainly impacting supply.”

What Do Predictions Reveal?

RBC Elements study also has its own sector predictions for the 2020 decade. The uranium market might be “in a slight deficit through the mid-2020s, as idled supply comes online to meet steadily growing demand.”

For the late 2020s, the report foresees a loftier deficit as demand continues to escalate with the construction of new reactors in China and the dwindling supply due to potential mine closures.

RBC states: “We have increased our 2021-2030 demand forecast by 5%, due to keeping more current reactors online and higher growth estimates in China, but this is offset by a 6% increase in our supply forecast due to increased production from Kazatomprom and the addition of Langer Heinrich to our outlook.”

The uranium price forecasts for the 2021-2025 period are ~10% higher. This takes into account the increasing financial interest to invest in physical uranium, “which may help spot and term market prices rise to better reflect current production economics.”

“We think recent renewed financial interest to invest in physical uranium should help accelerate the recovery in uranium prices to better reflect production economics by reducing uncommitted supply in the near-term,” RBC analysts conclude.

RBC asserts that there is potential for market backwardation next year, as spot prices could top $40/lb while term prices would only increase to $35/lb, to later settle at $40-45/lb through the mid-2020s.

On the date of publication, the author did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.

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The post RBC Says Social Media Activity Is Boosting Uranium Prices appeared first on InvestorPlace.

By Roberto Samora

SAO PAULO, July 9 (Reuters) – Mosaic Fertilizantes, a unit of Mosaic Co, sees fertilizer demand in Brazil growing by 6% to as much as 10% in 2021 if demand from corn farmers proves strong, an executive told Reuters.

Mosaic Fertilizantes head Corrine Ricard noted the strong negative effects droughts and frosts have had on Brazil's 2021 corn crop. But she said in an interview that recent difficulties could bump up fertilizer use as farmers push to produce as much as possible to compensate.

"The second harvest suffered from the drought and now the frosts, and I think that could lead some producers to double their efforts in the next harvest," Ricard said.

Recent setbacks have supported corn prices in Brazil even as they have fallen nearly 10% in July in the United States.

That will also push some farmers to be aggressive going forward, said Eduardo Monteiro, Mosaic Fertilizante's commercial vice president.

"Even with volatility in Chicago, in Brazil, prices are still strong," he said. "I think that producers will have more appetite to expand in the next harvest."

Mosaic Fertilizantes, which is active in the mining, production, import, sale and distribution of fertilizer products, has space to expand organically in Brazil, Ricard said.

"We have space to grow," she told Reuters. "That's very important, because the market is growing quickly, and we can continue to participate."

(Reporting by Roberto Samora; Writing by Gram Slattery; Editing by Dan Grebler)

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO, July 07, 2021 (GLOBE NEWSWIRE) — Jourdan Resources Inc. (TSX-V: JOR) (“Jourdan” or the “Company”) is pleased to announce that it has closed its non-brokered private placement flow-through financing for gross proceeds of $720,000 (the “Offering”). For more information about the Offering, please see the Company’s press release dated May 27, 2021, which is available under the Company’s profile on SEDAR at www.sedar.com.

Pursuant to the Offering, Jourdan issued 14,400,000 units (each, a “Unit”) at a price of $0.05 per Unit. Each Unit was issued on a “flow-through basis” and consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.07 until July 7, 2023.

All securities issued in connection with the Offering are subject to a statutory hold period expiring on November 8, 2021. Completion of the Offering is subject to receipt of final approval of the TSX Venture Exchange (“TSXV”). Finder’s fees were paid in accordance with the policies of the TSXV to Roche Securities Limited consisting of a cash commission equal to $36,000 and an issuance of 360,000 finder warrants (“Finder Warrants”) and to Marquest Asset Management Inc. consisting of an issuance of 360,000 Finder Warrants. Each Finder Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.07 per share until July 7, 2023. The Company intends to use the net proceeds of the Offering to fund exploration expenditures on its Vallee, Preissac, Lacorne and Baillarge lithium mining properties and for general corporate purposes.

Rene Bharti, chief executive officer of Jourdan, commented, “We are excited to use the proceeds from this offering to accelerate our planned drilling campaign, which is the next step on our path to defining an initial mineral resource estimate. To that end, we have been ramping up exploration activities, most recently with a visit by our executive chairman, Dr. Andreas Rompel, to our Vallee property in Val d’Or to inspect the planned drill sites.”

Insiders of the Company subscribed for Units pursuant to the Offering (the “Insider Participation”). The Insider Participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. The Company did not file a material change report more than 21 days before closing the Offering as the details of the abovementioned Insider Participation were not settled until shortly prior to closing, and the Company wished to close the Offering on an expedited basis.

About Jourdan Resources

Jourdan Resources Inc. is a Canadian junior mining exploration company trading under the symbol “JOR” on the TSXV and “2JR1” on the Stuttgart Stock Exchange. The Company is focused on the acquisition, exploration, production, and development of mining properties. The Company’s properties are in Quebec, Canada, primarily in the spodumene-bearing pegmatites of the La Corne Batholith, around North American Lithium’s producing Quebec Lithium Mine. This mine is part of Contemporary Amperex Technology Co. Limited (CATL), China’s largest automotive battery manufacturer.

For more information:

www.jourdaninc.com

Rene Bharti, Chief Executive Officer and President
Email: info@jourdaninc.com
Phone: (416) 861-5800

Cautionary statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Offering, including the Company’s intended use of net proceeds, and the business, operations and plans of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Jourdan to be materially different from those expressed or implied by such forward-looking information, including but not limited to: receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of minerals; accidents, labour disputes and shortages and other risks of the mining industry. Although Jourdan has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Jourdan does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

LONDON, July 08, 2021–(BUSINESS WIRE)–Rio Tinto and POSCO, the largest steel producer in South Korea and one of the world’s leading steel producers, have signed a Memorandum of Understanding (MoU) to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain.

The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating Rio Tinto’s iron ore processing technology and POSCO’s steelmaking technology.

The MoU with POSCO underlines Rio Tinto’s commitment to working in partnerships with customers on steel decarbonisation pathways and to invest in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 or with potential to deliver carbon neutral steelmaking pathways by 2050. Both Rio Tinto and POSCO share the ambition to reach net zero carbon emissions by 2050.

As one of South Korea’s leading industrial companies, POSCO’s efforts to decarbonise will play an important role in achieving the country’s recently announced ambition to become carbon-neutral by 2050, which has inspired Korean companies to accelerate decarbonisation activities.

Rio Tinto’s Vice President of Iron Ore Sales and Marketing, Simon Farry, said: "This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focusses on developing technologies that support the transition to a low-carbon economy."

POSCO’s Head of Steel Business Unit, Hag-Dong Kim, said: "Tackling climate change is a critical item in achieving sustainable development for a better future. On the journey to achieving carbon neutrality with Rio Tinto, we can play an important role of finding a way to build a low-carbon steel industry"

About Rio Tinto

Rio Tinto produces materials that are essential to human progress. We have publicly acknowledged the reality of climate change for over two decades and have reduced our emissions footprint by over 30 per cent in the decade to 2020.

We have set ambitious emissions targets to reduce our carbon intensity by a further 30% and our absolute emissions by a further 15% by 2030, alongside establishing a $1 billion fund to invest in climate related projects. These targets will bring us a step closer to achieving our long-term goal of becoming net zero emissions by 2050 (which includes emissions from shipping of our products).

In 2021, we also outlined our new scope 3 goals, which include working in partnerships with customers on steel decarbonisation pathways through investing in technologies that could deliver reductions in steelmaking carbon intensity of at least 30% from 2030 and investing in breakthrough technologies with potential to deliver (i) carbon neutral steelmaking pathways by 2050; and/or (ii) zero-carbon aluminium.

As part of our climate strategy, we have entered into partnerships with the world’s largest steel producer, China Baowu Steel Group, one of China’s most prestigious and influential universities, Tsinghua University, and Japan’s largest steel producer, Nippon Steel Corporation, to develop and implement new methods to reduce carbon emissions and improve environmental performance across the steel value chain.

About POSCO

POSCO is the world’s leading steel-making company established in 1968. POSCO has two steelworks in Pohang and Gwangyang, South Korea. Recognised by World Steel Dynamics as the most competitive steelmaker for 10 consecutive years, POSCO is devoted to the company’s management philosophy, 'Corporate Citizenship: Building a Better Future Together'.

POSCO plans to utilise carbon risk as an opportunity, overcoming its inevitable need for CO2 emission. Through innovative technologies, such as CCUS (Carbon Capture, Utilization and Storage), and hydrogen-based steelmaking, POSCO aims to equip itself with ‘low carbon competitiveness’ which enables providing ‘green steel’.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210708005340/en/

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Category: General

Figure 1

Location of Metallurgical Samples

TORONTO, July 08, 2021 (GLOBE NEWSWIRE) — Red Pine Exploration Inc. (TSX-V: RPX) (“Red Pine” or the “Company”) announces it will be filing an updated NI 43-101 Technical Report including updates to the ownership structure, land position, additional drilling and surface exploration results as well as positive results from metallurgical test work. The resource statement in this report remains unchanged due to insufficient additional drill data.

Highlights of the metallurgical study:

• CIL cyanidation and gravity recoverable gold average of 90.3% for representative blends of the gold bearing mineralization forming the bulk of the resource of the Surluga Deposit.

• Flotation and gravity recoverable gold average of 93.3% for the localized domains of arsenopyrite-dominant mineralization in the Surluga Deposit.

• CIL cyanidation and gravity recoverable gold average of 95.4% for Minto mineralization forming the Minto Mine South deposit and locally present in the Surluga Deposit.

• The positive response of Surluga and Minto Mine South mineralization to conventional, industrially proven processes provides flexibility for project definition, design, and potential treatment of respective material types.

“We are pleased to have tested all mineralogy types currently pronounced in the Wawa Project resource and received back positive metallurgical results. The major resource, the Surluga Deposit, responds well to cyanidation, including the blends of pyrite and arsenopyrite bearing material that are representative of the majority of the higher-grade zones of the Surluga deposit. The tests have also proven that the domains with more abundant arsenopyrite (“APY”) are receptive to flotation resulting in 90% or higher recoveries in all cases.

The Minto deposit tests demonstrated recoveries in excess of 94%.

In summary our metallurgical work demonstrated that conventional processing methods provides flexibility and optionality in the selection of future processing options.” – Quentin Yarie, President and CEO.

Metallurgical study

Red Pine commissioned McClelland Laboratories Inc., located in Sparks, Nevada, to determine the amenability of gold mineralization in the Surluga and Minto Mine South deposits to CIL cyanidation and flotation treatment. The metallurgical study was conducted on a total of eleven (11) samples of quartered HQ drill core (Figure 1). Note that additional details of the metallurgical study will be filed and available on SEDAR.

Figure 1 – Location of Metallurgical Samples
https://www.globenewswire.com/NewsRoom/AttachmentNg/5485069a-b13f-4754-98a0-e58047c44e7d

In the Surluga deposit, gold mineralization principally occurs as arrays of quartz veins of different thickness associated with pyrite as the main sulfide (pyrite-dominant mineralization). Accessory to absent pyrrhotite and arsenopyrite, and minor to absent chalcopyrite, occasional native gold, sphalerite and galena complete the main mineral assemblage. Pyrite-dominant mineralization is absent from the Minto Mine South deposit.

In the Minto Mine South deposit, and in certain zones of the Surluga deposit, gold mineralization is associated with quartz-tourmaline veins with variable pyrite, accessory pyrrhotite, minor to trace chalcopyrite and common native gold.

A third style of gold mineralization has arsenopyrite as the main sulfide (arsenopyrite-dominant). It occurs as variably preserved relicts in the resource of the Surluga deposit, absent from the Minto Mine South deposit. Where observed in the Surluga deposit, its formed of zones with extremely deformed arsenopyrite with or without strong quartz veining. Within the Surluga deposit, primary arsenopyrite-dominant mineralization tends to be spatially restricted to discrete zones and is more commonly an accessory to larger volumes formed by pyrite-dominant and Minto mineralization.

For the metallurgical study, three (3) samples from the Minto Mine South deposit were selected to characterize Minto mineralization. Five (5) samples were selected in the Surluga Deposit to represent a blend of pyrite-dominant with accessory to absent arsenopyrite-dominant mineralization to characterize the most likely metallurgical behavior of gold mineralization during production. Three (3) samples were also specifically selected to characterize the metallurgical behavior of primary arsenopyrite mineralization that is locally preserved in discrete zones of the Surluga Deposit.

The individual samples weighed 2 kg to 37 kg and each sample was crushed to a nominal 10-mm. The 10-mm material was then blended and split using a riffle or rotary type splitter to obtain approximately 5 kg for crushing to 100%-1.7 mm. In the case of the two samples that weighed less than 5 kg (RPX-1 and RPX-8), the samples were crushed entirely to -1.7 mm. The -1.7-mm material was blended and split using a rotary type splitter to obtain four (4) replicated samples (typically 1.25 kg each). One of the replicated splits from each sample was further split to obtain duplicate 100-g splits for head analysis. Each of these splits was analyzed for gold and silver content by conventional fire assay fusion procedures. One of the duplicate splits from each sample was also used for an ICP metals scan and for sulphide sulphur analysis.

Agitated CIL cyanidation bottle roll tests

Agitated CIL cyanidation bottle roll tests were conducted on the selected samples. Following the leach cycle, slurries were screened to recover the metallic fraction which was assayed separately from the remaining tails. This was done to capture any residual gravity recoverable gold. Tests were conducted at an 80%-75 µm feed size with a 32-hour leach cycle.

Samples representative of the main zones of mineralization in the Surluga and Minto Mine South deposits generally were readily amenable to CIL cyanidation treatment at the 80%-75 µm feed size. For the three (3) samples representative of Minto mineralization, CIL cyanidation and gravity recoverable gold average of 95.4%. For the five (5) samples representative of the blends of pyrite-dominant with accessory to absent arsenopyrite-dominant mineralization types in the Surluga Deposit, CIL cyanidation and gravity recoverable gold average of 90.3 %. The three (3) samples selected to specifically characterize arsenopyrite-dominant mineralization in the Surluga Deposit yielded a range of CIL cyanidation and gravity recoveries between 48.9% to 78.2% (average of 61.2%).

Bulk Sulphide Flotation Testing

A rougher bulk sulphide flotation test was conducted on each of the 11 Surluga/Minto composite samples to determine the response to flotation treatment. Splits from each sample (typically 1.25 kg) were batch ground in a steel ball mill to produce an 80%-75um feed for leaching. Each ground ore charge was screened prior to flotation to recover a metallics fraction which was assayed separately from the flotation products.

Flotation was conducted using a Denver laboratory scale flotation unit at 1,200 rpm. Slurry solids density of the ground ore was adjusted to 33 weight percent solids. Flotation was conducted in 4 stages with 0.015 kg/mt ore of PAX (potassium amyl xanthate) added at each of stages 1 and 2 and 0.010 kg/mt ore of AERO 3477 promoter (dithiophosphate) added at each of stages 2 through 4.

Samples representative of the main zones of mineralization in the Surluga and Minto Mine South deposits were amenable to gravity recovery and bulk sulphide flotation at the 80%-75 µm feed size. For the three (3) samples representative of Minto mineralization, bulk sulphide flotation and gravity recoverable gold average of 95.6%. For the five (5) samples representative of the blends of pyrite-dominant with accessory to absent arsenopyrite-dominant mineralization in the Surluga Deposit, bulk sulphide flotation and gravity recoverable gold average of 86.6 %. For the three (3) samples selected to specifically characterize arsenopyrite-dominant mineralization in the Surluga Deposit, bulk sulphide flotation and gravity recoverable gold average of 93.3%.

Qualified Person

Quentin Yarie, P.Geo. and Chief Executive Officer of Red Pine and the Qualified Person, as defined by National Instrument 43-101, has reviewed, and approved the news release’s technical information.

COVID-19 Precautions

Red Pine has developed and implemented compliant precautions and procedures according to guidelines for the Province of Ontario. Protocols were put in place to ensure our employees’ and contractors’ safety, thereby reducing the potential for community contact and spreading of the virus

About Red Pine Exploration Inc.

Red Pine Exploration Inc. is a gold exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "RPX".

Red Pine is located in the Michipicoten greenstone belt of Ontario, a region that has seen major investment by several producers in the last five years. Its land package hosts numerous historic gold mines and is over 6,800 hectares in size. The Company is supported by Chairman of the Board Paul Martin, former CEO of Detour Gold and Directors boasting a high pedigree of experience at Alamos, Barrick, Generation Mining, Detour Gold, and the Ontario Energy Board. Led by CEO, Quentin Yarie, with over 25 years of experience in mineral exploration, Red Pine is strengthening its position by further validating its potential as a major resource and player in the Michipicoten region.

For more information about the Company, visit www.redpineexp.com

Or contact:

Quentin Yarie, President and CEO, (416) 364-7024, qyarie@redpineexp.com

Or Tara Asfour, Investor Relations Manager, (514) 833-1957, tasfour@redpineexp.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.