11:00 am Pacific
(Exclusive to BMR Subscribers – Not for Distribution or Posting on any Board!)
Morning Highlights
- Uranium stocks are pushing strongly higher today including BMR recommendations NexGen (NXE, TSX), Fission (FCU, TSX), Dennison (DML, TSX), IsoEnergy (ISO, TSX-V), Baseload (FIND, TSX-V), CanAlaska (CVV, TSX-V), Purepoint (PTU, TSX-V) and Skyharbour (SYH, TSX-V);
- WTI prices soared to their highest since October 2014 this morning, hitting $83.73 before pulling back on profit-taking. As of 11:00 am Pacific, WTI is off 29 cents at $81.99. “Easing restrictions around the world are likely to help the recovery in fuel consumption,” analysts from ANZ Bank said in a note this morning, adding that Gas-to-Oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the 4th quarter;
- Bitcoin is up 2.1% at 61,834 as of 11:00 am Pacific – see further below for fresh Bitcoin charts (short-term and long-term) and an update on 1 of our favorite Bitcoin plays, Fortress Technologies (FORT, TSX-V)
“One Of The Best Cores I’ve Seen”
Our first BMR interview with Rowland Howe, President of Atlas Salt (SALT, TSX-V), has convinced us even more that SALT is 1 of the best finds we’ve ever made in the junior resource sector – a stock destined to push much higher given that “this is the one (the Salt deposit in eastern North America),” Howe says, “that has all the pieces including deep water access.”
Rowland Howe is “Mr. Salt”. He is deeply respected and trusted in the North American Salt industry, so shareholders can take comfort in knowing that he is taking this project across the goal line – quickly, it appears, to a buyout.
What investors have to understand – and what some institutional players are now beginning to realize – is that Great Atlantic is the deposit that will determine the reliability of road Salt supply in North America for the next 50 years and beyond. That’s how important this resource is, and that fact is going to force Compass Minerals (CMP, NYSE), Mark Demetree (Stone Canyon/Kissner) or even another group to pay a premium price for this asset. Probably a bidding war on the horizon.
Indeed, SALT’s Great Atlantic is the best opportunity to help lift eastern North America out of a domestic road Salt production shortfall that has turned into a major security of supply problem. Up to 10 million tonnes of road Salt each year are being imported from North Africa and Egypt where skyrocketing overseas shipping costs are threatening that much-needed supply required to fully satisfy annual North American demand of 25 to 30 million tonnes. No new underground Salt mines have been built in North America in the last 20 years, partly due to the fact that so few suitable locations exist.
Trading Alert: SALT has been a retail-dominated stock up until this time. However, there is evidence in the market since Friday’s news that some institutional players are beginning to step in and take a keen interest in this deal. They love situations like this that are advanced and very de-risked. It doesn’t take a rocket scientist to figure out what institutional accumulation in the open market could do to the SALT share price!
SALT is up 4 cents at $1.10 as of 11:00 am Pacific. Technically, SALT is poised to accelerate dramatically as soon as it conquers some relatively minor resistance around $1.20. The all-time high is $1.42 from early summer and that could be toppled very quickly.
Interview Highlights – Part 1
- The existing northernmost drill hole at Great Atlantic, from which Atlas is stepping out 500 m to the north in the direction of the Turf Point Port, represents “one of the best cores I’ve seen” in more than 30 years in the Salt industry, Howe emphasizes (335 m grading 96.8% Salt with the top 125 m of that intercept grading 98%);
- This northernmost hole was collared 3.5 km from port. Howe reiterates his belief that this big step-out will deliver similar spectacular results and that the deposit extends even closer to the port, heightening the prospects of an efficient low-cost operation accessing the resource through an inclined ramp;
- Great Atlantic includes a mysterious but extremely pure Salt core with a dark appearance that’s even higher in grade than the traditional lighter-coloured core that’s also prevalent in this massive homogeneous deposit;
- Visuals from drilling – investors won’t need to wait for months for assay results like with traditional exploration in the metals’ space. Once you’re into high-grade Salt, you know it. As soon as a hole is completed, investors will know the intersection and approximate grade.
Click on the arrow to listen to Part 1 of Jon’s conversation with Rowland Howe. If you like Part 1, you’ll love Part 2 coming soon!
Rowland Howe, President of Atlas Salt
Bitcoin Short-Term Chart
Bitcoin is on the cusp of new highs and is showing no signs of slowing down given this very bullish 10-month daily chart.
- Measured Fib. resistance is $80,062 (CDN) – Bitcoin could react/pause at that level briefly, but ultimately we’re expecting a major breakout well beyond $80,000 (CDN)
- Bullish “W” in the RSI(14), now at 71% which demonstrates very strong momentum
Bitcoin Long-Term Chart
- Bitcoin’s rising 200-day SMA acted as great support during the correction from April through late July along with the Fib. 61.8% level
- %K continues to rise – still well below extreme levels
- Bullish trend (ADX indicator) still has plenty of room to strength
- It’s hard to image that Bitcoin won’t reach #2 measured Fib. at $143,430 (CDN) over the coming months given its technical posture and current adoption rates
Fortress Technologies (FORT, TSX-V)
Fortress Technologies (FORT, TSX-V) announced this morning that it has purchased 180 new Whatsminer M30S Bitcoin mining machines. These machines will operate alongside Fortress’s existing machines at the company’s Washington state site and are expected to be installed within the next 30 days.
Once fully deployed, the new machines are expected to increase Fortress’s total hash rate at the Washington site to 33 petahashes per second. The purchase also increases Fortress’s total contracted hash rate to 191 PH/s.
BMR subscribers need to continue to hold for further gains. Expect a near-term test of measured Fib. at 89 cents.
Note: John, Jon and Daniel hold share positions in SALT. Jon also holds share positions in CVV, DML, FORT, ISO and PTU.
Any idea when they drill the 500 meter step out?
Comment by Dan1 — October 18, 2021 @ 12:42 pm
Great interview Jon, yup just a matter of time before this thing takes off, good volume for a Monday, if volume continues like today it’s sure to get attention. Maybe the start of a green streak.
Comment by Laddy — October 18, 2021 @ 2:52 pm
Just added more SALT at $1.16, Laddy, looking strong this morning…
Comment by Jon - BMR — October 19, 2021 @ 7:36 am
Yes as well just a tiny, there sure have been big lots on the ask side tho, sheesh!
Comment by Laddy — October 19, 2021 @ 8:36 am
From TD and those blocks got snapped up right away, Laddy…we’re hearing reports of rapidly growing institutional interest after Friday’s news, which could be huge…you get some Bay St guys coming in, and even some U.S. players, because this is such an advanced play headed toward becoming a mine, and the stock could go bananas…retail needs to grab whatever immediate supply is available…this is looking very strong in every respect…
Comment by Jon - BMR — October 19, 2021 @ 9:32 am
Sounds good Jon, steady as she goes, grab some popcorn(with salt) and enjoy the show.
Comment by Laddy — October 19, 2021 @ 9:59 am
SALT. Volume is impressive the last few trading sessions, and again today.
Comment by Bryan — October 19, 2021 @ 10:00 am
Re: Salt. Yes seeing a number of names swooping in and eating up big blocks: echelon, cormark, PI, Leeke, Mackie …. great volume and very nice to see. It’s like a switch was turned on after the last news release.
Comment by Foz1971 — October 19, 2021 @ 10:14 am
I expect to see a continuing stronger share price in Vulcan Minerals based on SALT’s success…
Comment by Stockman — October 19, 2021 @ 12:53 pm
Venture is hot “ do not touch “.
Comment by Laddy — October 19, 2021 @ 1:47 pm
Indeed, big breakout above 930’s, Laddy.
Comment by Jon - BMR — October 19, 2021 @ 2:01 pm
SALT – should we be concerned about the RSI2?
Comment by Ciara — October 19, 2021 @ 3:19 pm
You have to be careful with RSI(2), Ciara, and take this into consideration with other indicators…and also look at it in the context of current conditions and developments. It’s showing big momentum in the stock right now, and that tells me SALT has much further to run…there’s also now a breakout above the uptrend channel.
Good example – RSI(2) with HIVE hit an extreme level in early-mid February, backed off quickly to 50% on only a slight drop in the share price, then HIVE immediately doubled in price with RSI(2) becoming even more extreme. If you sold at the first RSI(2) extreme, you would have missed out on a quick double…we’re seeing huge momentum coming into SALT right now, and as I said before, the 20 and 30-cent price jumps in a single day are going to come…you also have to take fundamentals into account…SALT is headed toward a buyout, in the estimation of a growing number of investors, and at a level that’s far higher than what the stock is trading at today…you can throw RSI(2) stuff out the window in situations like this…the end game is clear…the smart money is playing the end game, not the short-term flips…institutions are also just starting to jump in…wait to see what happens when they begin to PILE in because that will happen IMHO…I bought more today in the $1.15 – $1.20 gift range…
Comment by Jon - BMR — October 19, 2021 @ 3:33 pm
Thanks so much for taking the time to give such a detailed explanation! Sure appreciate all your help!
Comment by Ciara — October 19, 2021 @ 6:46 pm
Thanks Jon for taking the time to give such a detailed explanation regarding RSI2! Sure appreciate all your help!
Comment by Ciara — October 19, 2021 @ 6:49 pm
Jon
So what is a realistic value in your opinion that SALT could be bought out for? Promise not to hold you too it…
Comment by GREGH — October 19, 2021 @ 7:10 pm
Upcoming post (in the am) should help answer that, Gregh…sleep well!
Here’s a clue…the St. George sedimentary basin is 100 km long and 20 km wide…deep water port, power running right though, no First Nations issues (not even land claims, unique in Canada), entrepreneurial communities who support resource development – no wonder multi-billion dollar companies are eyeing this area…
Comment by Jon - BMR — October 19, 2021 @ 7:28 pm
Well, that didn’t take too long!…Daniel predicted it…ball is now in Wyloo’s court…we may go through this, too, with Atlas…
Mr. Alan Coutts reports
BHP INCREASES ALL-CASH OFFER FOR NORONT TO C$0.75 PER SHARE
BHP Lonsdale Investments Pty. Ltd., a wholly owned subsidiary of BHP, and Noront Resources Ltd. noted today that BHP has agreed to increase its all-cash offer for Noront shares to 75 cents per share.
BHP increases its all-cash offer to Noront shareholders to 75 cents per share, representing a 36-per-cent premium to its previous offer, a 7-per-cent premium to the Wyloo offer and a 213-per-cent premium to Noront’s unaffected price.
Noront supports BHP’s improved offer and recommends shareholders tender now to receive the cash consideration offered.
The BHP offer will be open until 11:59 p.m. ET on Nov. 9, 2021. Shareholders have 22 days to decide to accept the full and immediate value offered by BHP.
BHP’s offer does not require Wyloo’s support to be successful.
BHP’s all-cash offer provides certainty of value and liquidity.
Offer expires 11:59 p.m. ET on Nov. 9, 2021; for more information visit the Noront tender website.
The Noront board, considering the superior 75-cent-per-share cash purchase price in the amended offer, has determined that the proposal from Wyloo Metals Pty. Ltd., at a price of 70 cents per share, has ceased to be a superior proposal, and recommends the Noront shareholders tender their shares to the BHP offer.
Shareholders have until 11:59 p.m. ET on Nov. 9, 2021, to accept the increased offer and tender their shares.
Improved premium and highest all-cash offer available to shareholders
BHP’s increased offer of 75 cents per Noront share is superior to other offers available to Noront and its shareholders. BHP had the option to match Wyloo and elected to exceed Wyloo’s proposal by five cents. BHP’s increased offer delivers compelling value to Noront shareholders:
– 213-per-cent premium over Noront’s unaffected price of 24.1 cents;
– 36-per-cent premium over BHP’s previous offer of 55 cents per share;
– 7-per-cent premium over Wyloo’s latest offer of 70 cents per share.
BHP chief development officer Johan van Jaarsveld said: “Our increased offer of 75 cents per share provides a compelling premium for Noront shareholders and is available to shareholders now. Our offer provides shareholders with the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project, delivering shareholders who accept our offer certainty of value and immediate liquidity.”
(1) On May 21, 2021, the last trading day prior to Wyloo’s first publicly announced intention to make an offer for Noront at 31.5 cents per share.
Certainty of value today; protection from execution and dilution risk
The offer provides 100-per-cent cash consideration for Noront shares, providing Noront shareholders with certainty of value now while removing financing, market, regulatory and execution risks to Noront shareholders.
BHP recognizes that delivering Noront’s portfolio of projects in the Ring of Fire is expected to take many years, require significant capital investment, development of remote infrastructure and management of numerous stakeholders. There is no certainty that shareholders remaining invested in Noront will ever realize the value for their shares offered by BHP in cash today.
Noront and BHP believe that the offer provides Noront shareholders with the value inherent in Noront’s portfolio of projects without the long-term risks associated with the development and execution of those projects. Noront chief executive officer Alan Coutts said: “This transaction provides a premium to Wyloo’s offer, and delivers certainty of value to Noront shareholders via an all-cash offer. Noront’s board of directors determined that BHP’s improved offer is in the best interests of the company and its shareholders and recommends Noront shareholders tender their shares to the BHP offer.”
Noront’s board of directors, with input from its financial and legal advisers and the special committee, determined the improved offer is fair, from a financial point of view, to Noront shareholders (other than BHP Lonsdale and its affiliates).
The BHP offer does not require Wyloo’s support
Wyloo’s support of the transaction is not required in order for the offer to be successful. In order for Noront shareholders to receive the 75-cent all-cash offer price for their shares, at least 50 per cent of shares not owned by BHP must be tendered. Only those who tender their shares will receive the cash consideration of 75 cents per share. If shareholders other than Wyloo support the offer and tender their shares, the offer will succeed.
BHP chief development officer Johan van Jaarsveld said, “Now is the time for shareholders to decide if they want to tender to our improved offer and crystallize the compelling and full value it represents.”
About Noront Resources Ltd.
Noront Resources is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit, and the world-class chromite deposits including Blackbird, Black Thor and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire.
We seek Safe Harbor.
Comment by Jon - BMR — October 19, 2021 @ 7:34 pm