By David Forest November 28, 2018
"Don't do it," he said. "Come and see me first."
I regarded the man for a moment. His business card was written in Sino script, but it turned out he was an American who had set up shop in Hong Kong several years ago� And is now riding a tidal wave of money.
We sat opposite each other, and for a moment neither of us spoke, each watching the other to see if they were serious.
I'd come to Hong Kong's central business district for meetings on my new Brazil gold project. This was my fourth sit-down of the morning, and the ultra-high grades from my mine had caught this mysterious man's eye.
I knew my numbers were real. But I wasn't sure about his.
"Tell me what you do again," I asked. He leaned in, giving an air of conspiracy and said, "I buy mines. Then sell them to our colleagues in Mainland China."
So he was a middleman. He was asking to buy my project for tens of millions of dollars so that he could resell it for a presumably much larger sum to bigger Chinese investors.
"We are in the process of going public," I said, still unsure whether to believe what he was telling me.
"Don't do it," he repeated, standing up and tapping his card to reinforce the point. "We'll buy it now."
Then he was gone. A buyout offer like his is unthinkable in North America for a development project � albeit a good one � like mine, in its early days of launch.
It sounded too good to believe� But the next day, it happened again. Halfway through my project presentation, a local fund manager said, "Would you sell the whole thing? Now?"
This fellow wasn't as forthcoming on his business model. But later I discussed his offer with the investment bankers who set up the meetings � and they confirmed that his group would likely buy the project and sell it on to a larger Chinese firm, at a higher price.
The bankers told me there are dozens of groups operating the same way right now� Equating to hundreds of millions of dollars � perhaps even billions � searching for mining projects to purchase.
They mentioned this tidal wave of cash has already started to break, pointing to a Canadian-listed lithium company recently bought out by a Hong Kong-based firm for $275 million. They noted the project had then been listed in China at an even higher valuation.
As I'll show you in this month's issue of International Speculator, there's a storm coming. One that's going to sweep away some of the biggest resource projects on the planet � and make some investors, like those in the China-bound lithium project my bankers mentioned, incredibly rich.
And we're ready to take full advantage.
In a moment, we'll show you the one particular company that our research shows is becoming a prime target for the global mining mergers and acquisitions (M&A) boom.
But first, let's look at why these deals are ramping up� and what it means�
A Big Year for M&A Closes � And a Bigger One Looms?
Mining investors in particular have been jittery over the trade war over the past few months. Since June 15 � when the Trump administration announced 25% tariffs on nearly $50 billion worth of Chinese imports � copper prices fell as much as 20%, from $3.30/lb in early June to as low as $2.60/lb in August.
You see, my team and I had already been keeping a close eye on mining buyouts � like the ones my Hong Kong acquaintances were proposing. Our research shows that M&A � aside from being very profitable � is a leading indicator for resource bull markets.
In the August issue of International Speculator, we published the chart below � showing how "money inflows" into the mining sector (blue bars) rose in 2001 and 2002, foretelling a spectacular rise in commodities prices that kicked off in 2003. You can see this by the orange line, which represents the CRB Commodity Index, a benchmark for measuring commodity price movement.
The rise in money flows into mining stocks during 2001 and 2002 came right before a major bull market.
My measure of money flows includes M&A buyout deals, along with equity financings for mining firms globally. And that data has shown a small but notable rise during 2016 and 2017.
Back when we first published this chart in August, money flows for 2018 were looking a little sluggish � sitting at $71.4 billion for the year.
But fast-forward three months, and the chart looks like this today:
In the three months since August, a full $85.7 billion in M&A cash and financings has flowed into the worldwide mining sector. That's more than double the amount that flowed into mining during the first seven months of 2018, combined.
With one month still to go in 2018, it strongly appears this year will register an uptick in money flows � the kind that's historically signaled the beginning of big commodities booms.
In fact, in recent weeks the pace of resource M&A has accelerated. In late September, for instance, major gold miners Barrick and Randgold announced the largest mining M&A deal since the 2013 downturn in gold prices � agreeing to a $6.5 billion merger.
As the list below shows, seven of the 10 largest mining M&A gold deals since 2013 have come in 2017 and 2018 � a sign that industry insiders are gearing up for a sector resurgence.
Top 10 M&A Deals Since 2013
- Barrick and Randgold, $6.5B, September 2018.
- Alamos Gold and AuRico Gold, $765M, April 2015.
- Brio Gold and Leagold, $362M, January 2018.
- Polymetal International and Otkritie Investments Cyprus Limited, $232M, September 2015.
- Exeter and Goldcorp, $153M, March 2017.
- Beadell Resources and Great Panther Silver, $183M, September 2018.
- Mangazeya Mining and Unique Goals International, $91M, March 2013.
- Northern Empire Resources and Coeur Mining, $81M, August 2018.
- Marlin Gold Mining and Golden Reign Resources, $80M, May 2018.
- Pershing Gold and Americas Silver, $64M, September 2018.
These are full-corporate acquisitions. If we add in project level investments, there's even more recent activity to show how things are ramping up. In April 2017, for example, China major miner Shandong Gold agreed to buy 50% of Barrick's Veladero Mine in Argentina for $960 million.
That deal was followed by more investments between these two firms in September of this year � when Barrick and Shandong Gold announced each would buy $300 million worth of the other's stock.
That's a lot of M&A. And this investment wave isn't just rocking the mining world. When I returned from my recent trip, I was greeted by news of not one, but three major M&A deals in the oil and gas space.
On October 28, U.S.-enhanced oil producer Denbury Resources announced a $1.7 billion takeover of Eagle Ford shale player Penn Virginia. Then � boom � on October 30, shale major Chesapeake Energy unveiled a $4 billion buyout of WildHorse Resource Development.
Then, the takeover bids got even bigger. On November 1, Canada's Encana announced a $5.5 billion bid for Bakken shale rival Newfield Exploration.
That's over $11 billion of deals in five days. And those closest to the U.S. shale patch say there's much more coming. After the $5.5 billion Encana deal, old-guard industry analysts Tudor, Pickering, Holt & Co. said the recent flurry of acquisitions "only represents the tip of the M&A iceberg that will emerge in 2019."
As these insiders summed it up: "Buckle up as the upstream merger train has left the station and next year will likely be a wild ride."
Why M&A Is Suddenly Back in a Big Way
Gold has become a particular focus for M&A activity recently � evidenced by the Randgold-Barrick megamerger, as well the China deals I highlighted above in Latin America.
During my trip to Hong Kong, it became clear that precious metals projects are also particularly in demand for buyers here.
That kind of rise in M&A is a classic sign of a bottom in commodities markets. Because buyouts tend to increase when corporate valuations are low � meaning that companies believe they can acquire new resources cheaper by buying them than by discovering and developing them.
That's certainly the case in the gold sector today. Just look at the chart below, which shows average valuations for gold companies that hold in-ground gold reserves and resources.
It's clear from this chart that valuations (measured as total corporate valuation divided by number of ounces owned, to give us a per-ounce valuation) have come down a lot the last several years. Across all categories of ounces (inferred, measured and indicated, and global resources � along with proven and probable reserves), valuations have dropped significantly.
In 2012, gold companies enjoyed an average valuation of $86 per ounce of global resource (yellow line). Today, the average valuation is down to $48 per ounce � making it 44% cheaper to acquire ounces through buying out the companies that own these deposits.
Here's the really interesting part� You can see that valuations for gold resources have recovered a fair bit since their 2015 low � over the last three years, the average per-ounce value for global resources has risen 127% to $48 per ounce.
But gold reserves � meaning ounces in the ground that carry a much higher level of technical information and economic certainty � have not seen nearly as strong a rebound. You can see the average price for proven and probable reserves has only risen 50% since the 2015 low, to a current $64 per ounce.
The result is that today, gold companies can buy high-certainty reserves for just $16 more per ounce than for lower-quality resources (the kind a company could expect to generate itself through exploration and development spending).
That's very cheap for reserves, on a historical basis � the chart below shows how the premium for reserves (orange bars) as compared to resources hit a 10-year low in 2017, and continues to trade at a very depressed level today.
Industry insiders realize it's cheap to buy reserves right now � so they're doing it. And that means billions in deals coming for the right projects around the globe.
Here's Where to Look for the Next Big Buyout Profits
There's a strong incentive right now for mining executives to "go shopping" for ounces in the ground through corporate acquisitions.
And that's a great thing for investors.
Takeover deals are one of the quickest ways to turn a double- or even triple-digit profit on a junior mining company.
Just look at some of the recent takeover deals I outlined above: Northern Empire Resources got a 40% premium as part of a takeover offer from Coeur Mining in August, Brio Gold enjoyed a 57% premium on a January buyout announcement, and Exeter Resource Corp received a 67% premium last year when Goldcorp made a move on the company.
And with takeover deals starting to pop like a string of caps in the current low-price environment, I expect many more such overnight wins.
So where should we be looking for potential takeover candidates?
To figure out which companies are prime buyout targets, we need to look at who is doing the acquiring. As I mentioned above, China is one of the hottest spots on Earth for takeover appetite right now.
Chinese companies have both a desire for resources and a drive to reduce large dollar stockpiles (especially in light of recent antagonism from President Trump). Just look at a few recent China-backed deals:
- December 2017: Takeover of TSX-listed Lithium X by NextView New Energy for $275 million
- December 2017 to March 2018: $38 million investment into TSX-listed Millennial Lithium by Golden Concord Group
- June 2018: Purchase of Sepon copper-gold mine in Laos by Chifeng Jilong Gold Mining for $275 million cash
Chinese buyouts are quite geography-specific. My meetings in Hong Kong confirmed, for example, that Chinese firms will not touch U.S. projects right now, given the political animosity between the two countries.
Projects in Asia are of course firmly on the Chinese radar � although there are few projects held by North American-listed juniors in this part of the world.
Historically, Canada and Australia have been favored by Chinese mining acquirers. The chart below shows how those two localities account for the lion's share of Chinese-backed takeover deals since 2003.
But I believe there's a new target region emerging for China.
South America.
In Hong Kong, I met with the second-largest Chinese gold mining company, and it told me that Latin America is a focus as it looks to expand. That fits with recent activity � such as the $1 billion investment by Shandong Gold in Barrick's Argentine mines.
Chinese companies Minmetals and Chinalco are also significant operators for copper mining in Peru.
And just this month, the world's top copper-producing nation, Chile, officially committed to joining China's "One Belt, One Road" global trade initiative. You can bet mining is going to be a big focus for China there.
Brazil is another spot to watch. In September, I met with Chinese private equity giant CITIC in Brazil's mining capital, Belo Horizonte. There, CITIC has set up a mining equipment supply conglomerate in order to grab a foothold in this giant minerals nation.
My meetings indicated that Chinese buyers tend to favor acquisition targets that:
- Are at an advanced project stage, with at least feasibility-level studies;
- Come with an experienced in-country operating team;
- Are in the highest-quartile in terms of grade.
Projects that fit this bill in Latin America, Canada, and Australia are at the top of the list for potential takeover candidates.
China's current M&A drive also goes beyond gold, copper, and even lithium. For example, China National Nuclear Corporation (CNNC) said on October 31 that it is seeking acquisitions of overseas uranium projects to feed China's growing nuclear fleet. (CNNC is said to be in talks to buy the R�ssing uranium mine in Namibia from Rio Tinto.)
As a final note, it's important to recognize that it's not just China's mining firms that are looking for takeovers. As I learned in Hong Kong, Chinese investment firms are also looking to buy out projects � with the aim of selling them on to larger groups.
Such investment buyers may favor smaller-scale acquisitions � in the range of tens to low hundreds of millions of dollars.
Companies and projects of that size typically haven't been on the radar for larger mining players � so this opens a whole new group of stocks to potential takeover profits.
Here's an Unexpected Driver for Takeover Activity
Beyond Asia, my research suggests there's another group of buyers about to get very active in takeovers of North American junior mining stocks.
Australians.
Generally, Australian mining companies are regarded more as potential takeover targets. The Australian Stock Exchange is one of the world's top spots to raise junior mining capital (along with Canada's TSX and CSE exchanges), and so Australia has a rich crop of junior and senior miners.
Traditionally, Australian- and Canadian-listed mining stocks have traded more or less in line with each other.
But recently, there's been a divergence.
Part of the reason is the boom in blockchain and marijuana stocks that's hit the Canadian exchanges in recent years. A good chunk of venture capital traditionally targeted to mining investments has been sucked up by those new sectors � pinching off cash flows into the mining sector.
My investment banking sources tell me Canadian mining stocks have also suffered from a move to passive investment management. Canadian money managers increasingly get their exposure to metals and mining through ETFs and index funds � rather than specific mining stocks.
Australian brokers and fund managers, on the other hand, have a lot more control over fund allocation � and still invest in individual mining stocks they see as having the potential to outperform the wider sector.
You can see this shift clearly in the chart below, showing the 10-year performance of the respective mining indexes for the TSX (orange line) versus the ASX (blue line). At the far right, you'll see that ASX mining stocks are outperforming TSX mining stocks in 2018 � for the first time ever during the past decade.
This same pattern is clear in financing activity. In four of the last five years (with the exception of 2017), financing activity for mining companies on the ASX has been more resilient than for TSX companies � either decreasing less on a percentage basis, or, in 2016, increasing by a notably higher percentage.
So what does all this have to do with M&A?
It makes Canadian stocks very attractive for cashed-up Aussie acquirers.
Take a look at the chart below � showing that today, with investor appetite still running strong, ASX gold firms are enjoying a much higher per-ounce valuation than its TSX peers.
On average, Australian miners are valued 57% higher than Canadian firms with similar deposits.
Today, ASX investors award their gold companies an average valuation of $66.61 per gold equivalent ounce in the ground, while TSX companies get valued at just $42.47 per equivalent ounce.
That gives ASX gold firms a strong incentive to buy TSX-controlled deposits or companies. By taking over a million-ounce gold deposit, for example, an ASX-listed miner could unlock over $24 million more in valuation than if the deposit remained in Canadian hands.
That arbitrage makes great business sense. This is a very new situation (the ASX mining index only began to really outperform the TSX this past August), but I'm hearing that ASX companies are now scouring Canadian ranks for favorable acquisitions.
This is good for any companies holding defined in-ground resources. And unlike the Chinese, ASX firms won't be restricted by project geography � anywhere on Earth will be fair game.
I expect that trend is going to start breaking over resource markets over the coming months.
And in the meantime, I'm looking at one particular part of the world � and one particular company � that my research shows is becoming a target right now for the M&A boom.
China's Doubling Down on This Country
In looking at where the next big corporate mining deal will happen, Latin America is an obvious choice.
As I mentioned above, China has been focused on South America in its recent project developments. Chinese companies are among the largest copper producers in Peru and have set up shop in the mining equipment supply industry in Brazil, where major fund CITIC owns part of the world's largest niobium mine.
China's focus on Latin America is only going to accelerate with Chile joining the New Silk Road trade initiative this month. But one other news item makes me believe China's focus may set even more squarely on Chile's neighbor to the east: Argentina.
Again, Argentina's mining sector has already been the site of one recent Chinese mega-deal: Shandong Gold's $1 billion stake in Barrick Gold's Veladero mine.
And in typical fashion, China isn't just buying individual projects in Argentina.
It's investing in the whole country.
In September, Argentina's central bank announced a major "currency swap" deal with the Chinese government. This is an arrangement in which a country with a dubious currency (like the Argentine peso) agrees to trade a significant amount to a country with better paper � in order to shore up its national financing.
This is basically a form of aid � where the country with a solid currency (China in this case) provides a cash injection. By helping prop up Argentina's economy, Chinese officials are (to some degree) betting that the pesos they're receiving in return will stabilize in value � and perhaps even rise.
But the biggest motivation of the currency swap is cementing relations between the two countries.
In September, China injected about $9 billion of currency into the Argentine banking system � increasing Argentina's currency reserves by nearly 20%. A big commitment like that almost certainly comes with strings attached � such as allowing Chinese companies expanded investment access to Argentina's industries.
And China is not stopping there. This month, Argentina's central bank said it is doubling the size of its currency swaps with China. The expanded deal will see China inject another $9 billion of currency.
More money, more influence. China doubling down on Argentina like this suggests the country is going to be a major focus for incoming investment.
Argentina just happens to have one of the most well-developed mining industries in the world (albeit one that suffered from dwindling foreign investment prior to new president Mauricio Macri taking over in 2015).
Given all of this, I wouldn't be surprised to see China-based firms and investment dollars flowing into Argentine mining projects.
My team and I have therefore been digging down on potential Argentina mining investments. And we've found one company that's an ideal M&A target: junior mineral exploration company Blue Sky Uranium (BSK.V).
This Company Perfectly Fits the Bill as an M&A Target
Blue Sky Uranium
Resources: Uranium, Vanadium
BSK.V, BKUCF, www.blueskyuranium.com
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Prices
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Share: C$0.15
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MCap: C$16.5M
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On: 11/26/2018
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Shares
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SO: 109.8M
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FD: 158.2M
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As of: 8/2018
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Options
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4.8M
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C$0.25-C$0.30
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1/2023
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Warrants
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43.6M
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C$0.30-C$0.50
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12/2018 � 6/2020
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Debt
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�
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�
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�
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Let's take a look at why Blue Sky Uranium could be the next company to grab a chunk of quick M&A profits.
People
The people factor is at the top of my list to look for in a potential buyout candidate. As I mentioned above, Chinese companies in particular are seeking seasoned local management teams to show them the ropes in new investment destinations, like Argentina.
Blue Sky Uranium is a perfect fit in that regard. The company is part of the Grosso Group � a firm founded by native Argentine Joe Grosso in 1993, when the Argentine government allowed Foreign Direct Investment.
The Grosso Group specializes in Argentine mineral projects. The group also controls gold and silver developer Golden Arrow Resources and Argentina Lithium & Energy.
The group has discovered three world-class precious metals deposits, including the Chinchillas silver deposit that is heading to production. Furthermore, it has formed partnerships with industry majors such as Barrick, Teck Resources, Rio Tinto, and others.
In fact, Joe Grosso was named Mining Man of Argentina in 2005. He serves as the chairman of Blue Sky.
Mr. Nikolaos Cacos, CEO and director, is a 25-year mining man and has been part of the Grosso Group since its inception in 1993. He is an expert in strategic planning and administration.
This is exactly the kind of team an incoming overseas investor would want to have on the ground.
Property
Property is the other big factor that plays into M&A targeting. As I discussed, Chinese companies tend to look for two factors when it comes to property: an advanced stage of technical studies, and the highest-quartile grade to mineralization.
Blue Sky fits the first part of this bill. The company holds four projects in Argentina, three of which are uranium (another is gold with some silver). Importantly, the company also has potential for vanadium � which is very much on investors' radars in Asia and around the world.
Most of Blue Sky's current focus is on the 100%-owned Amarillo Grande project. This is an advanced uranium deposit, which hosts 19.1 million pounds of U3O8 (triuranium octoxide, a compound of uranium) and 10.2 million pounds of vanadium in inferred resources (released in Q1 2018).
The project is located in largely uninhabited lands. That should help with permitting going forward. It's also not far to infrastructure: airports, power, rail access, and a deep-sea port.
Early metallurgical testwork has been completed, with recoveries running over 95% for U3O8 and 60% for V2O5 (vanadium oxide) using a simple, and environmentally benign, alkaline leach. These are good numbers for uranium and decent for vanadium � the latter being a by-product.
Blue Sky is completing a Preliminary Economic Assessment (PEA) on Amarillo Grande that should be released by the end of the year. This is a very important step in attracting M&A interest � most firms I spoke to on my recent visit to Hong Kong are looking for projects with at least a basic level of engineering studies.
On the exploration side there is room for Amarillo Grande to grow � Blue Sky recently got results from 61 RC (reverse circulation) drill holes. These tested the margins of the Ivana deposit, one of three prospective areas on the project � Anit and Santa Barbara are the other two.
The recent drilling confirmed similar mineralization located over 1,000 meters south of the known resources, strongly suggesting room for the deposit to grow. And all of the known resources are currently estimated only at the Ivana zone � Anit and Santa Barbara have strong potential for a discovery and might well become a part of the mining complex.
The downside on Amarillo Grande is the grade, which is relatively low by global standards: 0.036% for U3O8 and 0.019% for vanadium.
Despite these lower grades, Amarillo Grande has a number of factors that can make a mine here work.
The project topography is flat, mostly covered by unconsolidated sand and gravel. The mineralization occurs from 0 to 25 meters depth, so Blue Sky has mineralized material sitting literally at the surface.
That means mining will be done by simply scraping the soft material, starting at the top. With this mining method, there will be no need to drill and blast. And the strip ratio should be really low, which will greatly reduce costs.
Also, uranium and vanadium here are both found in oxide ore, which is low-cost to process (it's the reason low-grade gold deposits in places like Nevada still make a lot of money).
With economical mining and processing, we are looking at an overall low cost for the project.
The rest of Blue Sky's assets are at earlier stages and not active right now. But they're good projects and still have a chance to add value to the story � with BSK easily able to shift focus to them once needed. The slate of projects also demonstrates this is a management team that knows Argentina inside and out, and can assemble land packages across the country.
Politics
Argentina � in addition to being an emerging ally of China � is friendly to miners and foreign investors. Since his election in 2015, President Mauricio Macri has enacted pro-mining reforms.
The country is heavily reliant on metals production, both precious and industrial. Gold accounts for over 60% of revenue, with silver following at 12%, 11% for lithium, and 10% for copper. This is a well-endowed mineral nation.
Argentina is also seeing a recent recovery in exploration activity. Since Macri took office in 2015, exploration funding in the country almost doubled. Majors put 55% more cash into the ground, and juniors increased funding by 157% � you can see the notable rise in the chart below. That indicates an attractive investment climate and the potential for building new mines.
Both uranium and vanadium are new commodities for Argentina � Blue Sky is one of the few companies in the country targeting them. That's a very interesting part of this story, in light of the recent announcement from China National Nuclear Corp (CNNC) that it is actively seeking overseas uranium acquisitions. CNNC's management said they are very open to "taking a whole company."
A final note on Argentina: the country plays into my recent currency-driven investment thesis for resource stocks. The recent dip in value of the Argentine peso against the U.S. dollar could make costs in the country cheaper for miners, assuming that rampant inflation doesn't take hold. That said, the new round of currency swaps with China will likely help stabilize the peso to some degree.
Promotion
The Grosso Group promotes its companies well, and Blue Sky is well-known in the mining world. The company traded 190,000 shares a day on average during the last 90 days, which is a very decent amount for a micro-cap company like this.
Paper
Based on outstanding shares, the paper structure looks good. With 109.8 million shares outstanding, Blue Sky is in line with many TSXV trading peers coming out of the recent market downturn.
There are 43.6 million warrants on top of that, which could be a red flag in some cases. The good thing however, is all of these warrants are currently out-of-the-money, with exercise prices of 30 to 50 cents, more than double the company's current share price.
That means the stock will have to at least double before any warrants likely get exercised. If that happens, we'll be happy shareholders with a 100% gain � and the warrants will then bring in additional funds to advance Blue Sky's projects.
Phinancing
Blue Sky had $2.8 million in its treasury at the end of Q2 2018. This is enough to fund the current Preliminary Economic Assessment (PEA) due to go live by the end of this year.
The release of that study could well be the next catalyst for the company, hopefully propelling subsequent rounds of financing to higher prices.
Pitfalls
- The coming economics of the project are still uncertain. There are not many projects in the world similar to Amarillo Grande, so it's somewhat difficult to estimate the numbers. If the PEA returns less than a 15% IRR, Mr. Market will likely ignore it. That said, BSK's management knows what they're doing and probably wouldn't initiate the work without already having an understanding of the economic potential.
- Uranium is still a relatively depressed commodity. And even with limited population around the project, there is potential for local opposition to digging nuclear fuel from the ground.
Push
- The main catalyst for the story is the coming PEA. Projected low-cost mining and processing could well return robust economics for the project, and the report is due within the next several weeks.
- With a growing number of M&A deals and rising interest in both uranium and vanadium stories, BSK has a good chance of becoming a takeover candidate, or attracting a larger funding partner.
- If vanadium stays at its current $25+ level, it should add significant by-product credits to Amarillo Grande's economics.
Price
Blue Sky's share price hasn't responded yet to the recent spike in vanadium prices or the upward momentum in uranium spot prices � as you can see in the chart below. We're buying ahead of the crowd here.
The lull is not unexpected � it's common for juniors to trade low while working through technical studies (aka, the "boring engineering phase"). As discussed, soon-coming PEA results could change that.
Conclusion
Blue Sky Uranium provides an interesting mix of uranium and vanadium in a single asset.
Both commodities are rising, with spot U3O8 heading towards $30 per pound, from close to $20 earlier this year. Vanadium has enjoyed an even more dramatic move, from $9.25 per pound to $27.50 per pound.
This stellar spike in vanadium prices might well blow off the way fellow battery metal cobalt has. But the uranium rally has much stronger fundamentals (my Casey Cost Curve analysis right now pegs uranium as the highest-potential metal after platinum).
On top of that, Blue Sky is working in a mining-friendly country that welcomes foreign investors who could benefit from a cheap local currency.
Those factors, and Argentina's quickly growing relationship with China, could make Blue Sky the next takeover target. And even if a buyout doesn't materialize, the stock should do well on its own merits as it delivers project economics by the end of the year.
BUY shares of Blue Sky Uranium (BSK.V) up to C$0.18.
Important Note on Risk Management
Please be patient with this stock. It may run after my recommendation. Risk management is critical here since this is a small stock. Do not bet more money than you can afford to lose. This is a very volatile stock and you only need a small position size.
If the stock is trading above its buy-up-to price by the time you read this, be patient and do not chase higher.
Regards,
David Forest
Editor, International Speculator
most interested in, and focus on them.
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