Sunday, December 10, 2017

Zinc Explorer Finally Hits; How Big Can the Resource Get?

A New Breed of Regenerative Therapy Companies Taking Hold

Source: Hunter Diamond, CFA for Streetwise Reports   12/07/2017

A regenerative therapy company with expertise in both cell therapy development and manufacturing, and a potential treatment for diabetes, differentiates this company, says Hunter Diamond, CFA, CEO of Diamond Equity Research.

Orgenesis Inc. (ORGS:OTCQB) is one of a new breed of regenerative therapy companies with expertise and unique experience in cell therapy development and manufacturing. The company has two primary subsidiaries, its Contract Development and Manufacturing Organization (CDMO) and Cellular Therapy Business (CTB). MaSthercell SA, a subsidiary of Orgenesis Company, is at the heart of Orgenesis Global CDMO operational network and focuses on cell and gene therapy development for advanced medicinal products. The CTB segment is developed in Europe, Asia and Middle-East under the lead of Orgenesis Ltd. and is developing a unique trans-differentiation technology platform (cell reprograming) with a main lead indication in insulin-dependent diabetes.

Orgenesis provides investors with a way to invest in the growing cell-therapy market, without the concentration risk of investing a single cellular therapy company. MaSThercell is currently working with numerous leading immuno-oncology corporations looking to develop the next cell treatment therapies. Orgenesis Inc. reported strong top-line growth in Q2'17, with its revenue growth over 24%. The CDMO business will continue to generate immediate and robust cash flow, which can offset clinical costs and research and development expenses. What makes Orgenesis unique for biotechnology investors, is it has both growing recurring revenue through its manufacturing activities and massive upside if their diabetes solution is commercialized.

Industry Insights

Cell Therapy is the administration of living whole cells to the patient for the treatment of a disease, including regenerative medicine and immunotherapy. Cell therapies can be divided into two general classes: allogeneic and autologous. In an Allogeneic procedure, cells collected from the donor are placed into and utilized to develop at treatment for another patient (the recipient). Situations, where the donor and recipient are the same people, are called autologous. Orgenesis CTB focuses on autologous cells, which have a low chance of rejection by the patient. MaStherCell has built a strong expertise in both autologous and allogeneic segments.

CDMO: Strong investment activity and deal-making have occurred over the past few years within regenerative medicine, with the regenerative medicine market projected to reach $53.7 billion by 2021. As a CDMO, Orgenesis develops and delivers advanced medicinal products to cell therapy companies and benefits from industry strong positive trend. Orgenesis's wholly-owned subsidiary MaSTherCell provides a global one-stop-shop service, a unique competitive advantage, which lets therapies go to market faster and reduces the cost of goods sold.

CTB: Insulin-dependent diabetes is one of the most challenging health problems in the world, with 29 million people in the U.S. and 400 million worldwide living with diabetes. Orgenesis is currently developing a cellular approach called Autologous Insulin-Producing ("AIP") cell transplantation. AIP helps transform the patient's liver cell into a fully functional and physiologically glucose-responsive insulin-producing cell and provide the patient with long-term insulin independence. 'The timeline for the process from biopsy to transplantation takes approximately 5-6 weeks. We note this AIP procedure is currently pre-clinical but if successful offers investors massive upside optionality.

Competition

MaSThercell faces competition from companies such as Progenitor Cell Therapy (PCT) LLC, Pharmacell BV, WuxiApp Tec, Lonza Group Ltd and Cognate Bioservices Inc. MaSThercell looks to differentiate itself from these companies with its expertise and quality in the Cell therapy market, strong experience in process development (optimization) for its clients as well as through its high international distribution capabilities in the CDMO field; an essential ability clients look for.

Within the CTB business, Orgenesis will compete against Novo Nordisk, Eli Lilly, Sanofi-Aventis, Takeda Pharmaceutical Company Limited, Pfizer, Merck KgaA, and Bayer AG, along with other insulin, insulin analog, and other diabetic drug providers.

Valuation

Orgenesis appears undervalued when using various valuation methods with reasonable assumptions. By using technology value analysis and comparing the technology of Orgenesis's diabetes pipeline to other public diabetes companies, we found a median estimated value of $106 million, more than 100% above where the stock trades currently and a median enterprise value of $28 million for MaSTherCell and an average Enterprise Value of $30 million based on 2017 projected revenue. We also believe Orgenesis could be a viable takeover candidate as it scales its revenue, as its much more significant clients may look to move their cell manufacturing in the house eventually. Even without an acquisition, we believe the company can continue to scale revenue and that the stock's valuation will subsequently reflect their high topline growth. We believe the manufacturing side of Orgenesis provides a valuation floor, offering investors a way to achieve substantial returns even if the diabetes product is not successfully commercialized.

Recent News

Orgenesis recently completed a reverse stock split of its shares of common stock at a ratio of 1-for-12. This reverse stock split was implemented relating to the company applying to list on NASDAQ, Orgenesis must maintain a minimum of $4.00 per share for a specific number of days according to NASDAQ. We view a successfully implemented NASDAQ listing as a major catalyst for existing shareholders of Orgenesis.

Société Fédérale de Participations et d'Investissement (SFPI), a well-known Belgian Public Investment Fund, invested $5.9 million in MaSTherCell. These funds will be used to expand MaSTherCell's Belgian facilities with a dedicated late-stage clinical and commercial unit, anticipated to be completed by the fourth quarter of 2018. This development will significantly accelerate the delivery of state of the art commercial facilities and the expansion of MaSTherCell within the dynamic and expanding Belgium healthcare cluster. We view this financing as a major positive event for Orgenesis, as expanded distribution capabilities will expand Orgenesis' competitive moat.

Hunter Diamond, CFA, is the CEO of Diamond Equity Research, which is a global small capitalization equity research firm. Diamond Equity Research was created to assist small capitalization issuers with reaching retail and institutional investors and providing these companies the same distribution abilities large capitalization issuers take for granted, thereby helping smaller companies achieve a fair valuation. Diamond brings experience working in investment banking and equity research at Griffin Securities and National Securities, both emerging growth focused brokerages. While an investment banker, Diamond was involved in financings and mergers and acquisitions for emerging growth companies. After working in investment banking, Diamond founded Pathjump, which he scaled to thousands of users across the country. He holds his undergraduate and MBA degrees from Cornell University.

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Disclosure:
1) Hunter Diamond: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Diamond Equity Research LLC is being compensated by Orgenesis Inc. for producing research materials regarding Orgenesis Inc. and its securities. Payment is made in cash and is billed one time and upfront for a six-month subscription, which includes one initiation report and one update report. As of 12/07/2017 the issuer had paid us $10,000 for our services, which commenced 07/07/2017, which is meant to subsidize the costs of independently analyzing the security. Additional fees may have accrued since then. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2017/12/07/a-new-breed-of-regenerative-therapy-companies-taking-hold.html

Friday, December 8, 2017

Shining a Light on an Out-of-Favor Oil Stock

Source: Clive Maund for Streetwise Reports   12/07/2017

Technical analyst Clive Maund charts an oil and gas explorer that he believes is under the radar of most investors.

Torchlight Energy Resources Inc. (TRCH:NASDAQ) has fallen out of favor with investors and is largely off the radar, which is understandable considering that it has done nothing for its investors for two years. However, the company still has potential and it is thought that there is an increasing chance that there will be some positive news soon, with the current lack of interest increasing upside potential.

Its 8-year chart looks much the same as when we last looked at it back in June, so the preparation of this chart was largely a copy and paste job. There is one very noteworthy difference, however, which is that the stock is considerably cheaper. When we looked at it back in the summer it was priced at $1.66, and at that time it was written that it was worth accumulating on any near-term weakness, and that we have certainly seen as it is now priced at $1.12. Observe on the chart how it continues to look like it is basing, within a large bucket like pattern, and the positive volume pattern and volume indicators bode well for an eventual breakout from this pattern, which after all this time could now be drawing closer.

Turning now to the 6-month chart we see that the intermediate downtrend from early November has brought it down to an attractive price, especially as it has arrived back at a support level. While there is some chance that it could drop back further to the C0.95 area, which is another support level, that is made less likely by the quite high volume on the "inverted hammer" candlestick a few days back.

Our last 3-month chart is a relative chart that shows how Torchlight has been underperforming oil since late October, and thus looks due for a cyclical change of fortune, which may have started in recent days— perhaps management realize that now would be a good time to "throw investors a bone."

Conclusion: Torchlight looks out of favor here and it is suspected to be at a cyclical low. Therefore rated a buy as any news out could drive it sharply higher—even if it doesn't break out of its large base pattern and only makes it back up to its highs earlier this year, it would result in good percentage gains from the current low price. Point for a stop is $1.04.

Torchlight Energy website

Torchlight Energy Resources, TRCH on NASDAQ CM, closed at $1.12 on 6th December 2017.

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Torchlight Energy Resources Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Torchlight Energy Resources Inc., a company mentioned in this article.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stockmarket analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

( Companies Mentioned: TRCH:NASDAQ, )



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Thursday, December 7, 2017

Biotech Delivers 'Great' Phase 2 Data in NASH

Source: John McCamant for Streetwise Reports   12/07/2017

John McCamant of the Medical Technology Stock Letter raised his target price on this company given the earning potential of a once-a-day oral treatment for liver disease in what could be a $35 billion market.

On Dec. 6, Madrigal Pharmaceuticals Inc. (MDGL:NASDAQ) delivered positive topline results from a Phase 2 trial in patients with biopsy-proven non-alcoholic steatohepatitis (NASH). In this trial, MGL-3196, a first-in-class, oral, once-daily, liver-directed, thyroid hormone receptor (THR) β-selective agonist, demonstrated statistically significant results for the primary endpoint, the percent change in hepatic fat versus placebo as measured by MRI-PDFF, a noninvasive imaging test.

Recent published data have shown a high correlation of the reduction of liver fat of 30% or more as measured by MRI-PDFF to improvement in NASH on liver biopsy. Importantly, MGL-3196 is reducing liver fat by much more than 30%, adding to our confidence that MGL-3196 has potential to be a safe once-a-day pill for NASH, a potential $35 billion market opportunity.

nashchart12-7

**Prespecified group of patients (44/78) with relatively higher MGL-3196 drug levels

Statistically significant reductions in ALT and AST were observed in MGL-3196 treated patients; greater reductions in ALT and AST, statistically significant relative to placebo, were observed in the prespecified group of 44/78 patients with relatively higher MGL-3196 drug levels. In drug-treated relative to placebo patients, statistically significant improvements were also seen in multiple secondary endpoints considered to be clinically relevant in patients with NASH, including LDL-C, triglycerides, apolipoprotein B (ApoB), and Lp(a). This is also important for MGL-3196, as it demonstrates that the drug candidate is a broad-acting lipid-lowering agent that is having a positive affect early in the NASH disease cascade. To date, MGL-3196 is the first NASH drug candidate to have both a statistically significant effect on liver fat and a broad lipid-lowering effect.

MGL-3196 has been well-tolerated with mostly mild adverse effects (AEs), and a few moderate AEs, the numbers of which are balanced between placebo and drug-treatment groups. There are no adverse effects of MGL-3196 on safety laboratory or vital sign parameters. There have been three serious adverse effects in the study, all considered unrelated to MGL-3196.

Next Steps for MGL-3196
The ongoing Phase 2 remains blinded, and safety, efficacy of NASH resolution by biopsy, and repeat MRI-PDFF will be assessed at 36 weeks, which is expected in late April 2018. Multiple inflammatory and fibrosis serum biomarkers at 12 and 36 weeks are also being and will be assessed.

In addition, the HoFh trial for MGL-3196 in patients with very high LDL will deliver Phase 2 data in late January. Given the statistically significant reduction already seen in LDL, in addition to the reductions seen in TGs, ApoB and Lp(a), our confidence has increased that the trial will be positive.

Madrigal is poised for two significant catalysts with the Phase 2 HoFh data due in late January and the Phase 2 liver biopsy data in late April. After the release of what we expect to be positive Phase 2 data in April, the company would have an end-of-Phase 2 meeting with the FDA and start the pivotal Phase 3 trial for MGL-3196 in NASH in the last third of 2018.

In our view, MGL-3196 is the most attractive drug candidate for the treatment of NASH, a $35 billion market opportunity, and has the potential to be a best-in-class molecule. This data significantly derisks Madrigal and MGL-3196 in the upcoming Phase 2 trials. As a reflection of the additional value created, we are raising our Madrigal Buy limit to $85 (from $45) and our target price to $110. Madrigal is now a Buy under $85 with a target of $110.

John McCamant is the editor of the Medical Technology Stock Letter, a leading investment newsletter. McCamant has spent more than 25 years on the front lines of biotechnology investing. He has established an extensive network that includes contacts throughout the investment banking and venture capital communities. His expertise in biotechnology investments is a subject of media interest. He is frequently consulted and quoted by The Washington Post, Reuters, Bloomberg, CBS and Marketwatch.

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Disclosure:
1) John McCamant: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Madrigal Pharmaceuticals. I personally am or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: MDGL:NASDAQ, )



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A Gold Explorer's Productive November Has Analysts Saying 'Buy'

Source: Streetwise Reports   12/07/2017

Multiple projects are showing positive and possible expansions for this gold miner.

On Nov. 20, Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) announced initial results from its Hatter Graben zone and recovery of Hollister ore at Midas Mill. The company highlighted a couple of key points:

  • Assays were received for the first five surface core holes at Hatter Graben. These are the first assays from an 11-hole drill program that was designed to infill drilling completed during 2008. The intent of this drill program is to develop an initial inferred resource at Hatter Graben.
  • Mineralization at Hatter Graben remains open in all directions. Drilling continues and is scheduled to be completed in early December. After which the company expects to receive final assays from the remaining six core holes by year-end.

Brian Morris, Klondex's senior vice president, exploration, said, "I am extremely encouraged by the initial results from our first five holes at Hatter Graben. The most optimal drill sites are now fully permitted and drilling is ongoing from these locations. We are infilling and stepping to the east in the most desirable elevations where we fully expect robust results."

Analyst Philip Ker with PI Financial stated in a Nov. 21 report that the "Hatter Graben target presents significant opportunity for Klondex to expand the Hollister mine and resource base in the future." He explained that "management also reaffirmed the Hatter Graben displays less clay content than the main mineralized zone at Hollister resulting in more competent rock. The increased competency, steep dip of veins and increased vertical extent suggest that Hatter Graben is suitable to less dilutive mining techniques such as long-hole stoping."

Ker concluded, "Our TOP PICK and BUY rating remains unchanged. We continue to derive our CA$4.85 target price with a 1.0x NAVPS multiple.

In a Nov. 15 announcement Klondex Mines updated its Fire Creek Mine exploration project. A few of the key points are:

  • Three surface drill holes totaling 4,171 ft (1,271 m) have been completed to-date on the Zeus target.
  • Drilling to-date has delineated a mineralized area within the structure approximately 650 ft (198 m) in length and 400 ft (122 m) vertically, within 400 ft (122 m) of surface and is open in all directions. Additional follow up holes are in progress to continue to expand and infill this significant high grade mineralization.
  • The up-dip underground drilling above the veins currently in production has returned significant assay results along a strike of 275 ft (84 m) and up-dip by 100 ft (31 m). The down-dip underground drilling below the Karen vein has returned significant assay results along a strike of 150 ft (46 m) and down-dip by 75 ft (23 m).

"The surface drill results are extremely exciting," Klondex's Morris stated. "These results demonstrate that the potential for high grade mineralization, similar to what is currently being mined at Fire Creek, exists within the Zeus structure about 4,000 feet northwest from our current underground development. Geophysics suggest this is a major 6,500 ft structure. We will continue step-out and infill drilling in this area to fully delineate this high grade structure with the intent to bring it into an inferred resource category in our year-end resource update to be released in Q1 2018."

ROTH Capital analyst Jake Sekelsky stated in a Nov. 16 report that Klondex "is achieving exploration success from surface and underground, which we believe should have a positive impact on Fire Creek's mine life." He highlighted the Zeus target's, "hole FCC-0092, which returned 1.27 opt over 14.0 feet including 8.25 opt over 1.7 feet. In our view, holes such as this serve as evidence that the program has uncovered significant additional high-grade mineralization outside of the existing areas being mined at Fire Creek."

Sekelsky pointed out that although "recent drill results are not included in the existing resource, we believe recent underground drilling has the potential to significantly expand the near-mine resource base. We view this development as a strong positive as new resources outlined in this program could have near-term impacts to Klondex's production profile at Fire Creek."

The ROTH analyst concluded that "Following the success exhibited at the Zeus target, we believe additional discoveries are probable and look forward to further exploration updates at Fire Creek." ROTH Capital rates Klondex as a Buy with a target rating of US$2.58.In a Nov. 16 report, PI Financial analyst Philip Ker, noted, "The success of up and down dip extensions of key veins, such as the Karen, Joyce and Honeyrunner veins, continue to demonstrate the potential for mine life and resource expansion at Fire Creek."

"Considering our more favorable long-term view on Klondex, we continue to remain firm on the management and operations team to meet the lower end of its 2017 guidance. As Hollister expands and its production profile begins to integrate further with the Nevada operations and Midas team, we continue to expect operating cost declines, increased long-hole stoping and exploration upside—particularly from the Hatter Graben zone," Ker concluded.

Klondex is currently trading at CA$2.86.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Klondex Mines Ltd. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: KDX:TSX; KLDX:NYSE.MKT, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2017/12/07/a-gold-explorers-productive-november-has-analysts-saying-buy.html

Two 100%-Owned Projects Have Analysts Talking About a Possible 'JV Partnership Offer'

Source: Streetwise Reports   12/07/2017

With an advanced project being looked at by potential partners and a newer project producing precious metal results, several analysts rate this precious metals explorer a "Buy."

In a Nov. 21 announcement,Seabridge Gold Inc. (SEA:TSX; SA:NYSE.MKT) confirmed the completion of its first exploration program on the Quartz Rise target in its 100%-owned Iskut Project in northwestern British Columbia. Seabridge Gold explained that "this year's drilling found evidence of a gold-bearing intermediate sulfidation epithermal system beneath the Quartz Rise lithocap as anticipated. Intercepts included 1.5 meters grading 8.26 g/T gold in QR-17-01 and 1.5 meters grading 74.1 g/T gold in QR-17-07. Sampling of a cliff face north of Quartz Rise returned very high grades ranging from 1.49 to 125.3 g/T gold."

Rudi Fronk, Seabridge's chairman and CEO, commented, "In our first program at Quartz Rise, our exploration team has successfully found the right environment for a high-grade epithermal gold deposit. The system at Quartz Rise has all the earmarks we were looking for and we think we have enhanced the potential for a significant discovery. . .Iskut's similarities with KSM are persuasive and this knowledge should help us zero in on the potential at Quartz Rise."

In a Nov. 21 report, Canaccord Genuity analyst Tony Lesiak stated that "while the 2017 initial 10 hole drill program on the Quartz Rise target at Iskut did not fully live up to our, perhaps, overly optimistic expectations, the results did achieve their primary goal; to provide evidence of a gold bearing epithermal system." He continued by pointing out that Canaccord "could hardly be faulted for the initial and continued enthusiasm given Iskut's proximity to KSM (+100Moz resource) and the associated high-grade (VOK at +17g/t) Brucejack deposit (~14Mozs), the location of previous high- grade gold operations at nearby Johnny Mountain and Snip and the existing 2.2Mozs Bronson Slope deposit, and the interpretation that the mineralizing system at Quartz Rise was fully intact, unlike KSM."

Lesiak noted that "the drilling, surface sampling and a subsequent IP survey have defined a potentially more favourable secondary structural orientation that may preferentially localize high grade gold; an orientation that will be followed up with the 2018 program."

Canaccord maintains a Speculative Buy rating on Seabridge with a target price of CA$29.00.

Analyst Mike Kozak with Cantor Fitzgerald also followed Seabridge Gold's announcement, highlighting both Iksut and KSM in a Nov. 21 report. Kozak stated that "while we regard the results from this initial [Iskut] program as sub-economic at present, it is important to note that this project is still very early days, and results are encouraging, suggestive of a potentially gold-rich epithermal system."

Kozak also discussed the much more advanced KSM project. "We believe a number of top-tier base metal and gold miners are lining up to offer JV terms to Seabridge on KSM. Based on management commentary, we are pushing this event to April/May next year, from our previous estimate of exit 2017," Kozak stated.

He pointed out that "Seabridge is an excellent asymmetric risk-reward trade. There are currently 10.2 MM shares short representing +20% of the market float." He highlighted that "a large-cap partner, or more likely a consortium of partners, are lining up to take a stake in KSM and provide the capital Seabridge needs to further advance the project."

Canaccord has with a Buy rating and target price of CA$24.00 on Seabridge.

Seabridge is currently trading at CA$13.08.

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Disclosure:
1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Seabridge Gold Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

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( Companies Mentioned: SEA:TSX; SA:NYSE.MKT, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2017/12/07/two-100-owned-projects-have-analysts-talking-about-a-possible-jv-partnership-offer.html

'Prospective Explorer' Working Toward Maiden Resource

Source: Streetwise Reports   12/07/2017

Cormark Securities provided an update on this company's gold project in central Wyoming.

In a Nov. 15 research note, Tyron Breytenbach, an analyst with Cormark Securities Inc., reported that GFG Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) has identified, via drilling, new areas of mineralization at its Rattlesnake Hills project.

GFG expanded the North Stock target "by 100 meters (100m) to the west, drilling 0.95 grams per ton gold over 22.9m outside of the previous mineralization footprint," indicated Breytenbach.

Drilling of the Middle Ground target, the brownfields area between North Stock and Antelope Basin, "continues to return economic mineralization," he added. By connecting those two targets, if possible, GFG could extend the overall mineralized strike length to 1.1 kilometers.

As for the overall size of the resource at Rattlesnake Hills, Cormark estimated it to be an open-pittable 2 million ounces based on results from the 80,000m of historical drilling and from this year's 43-hole, 15,000m drill program.

As for near-term upcoming catalysts, GFG will announce the remaining outstanding drill results. "We expect a steady flow of news into the final months of 2017," Breytenbach wrote. Subsequently, the mining firm is expected to release a maiden resource estimate for Rattlesnake Hills in H1/18, "which will set a baseline valuation for this early-stage but prospective explorer," added the analyst.

Because "valuations across the sector are down," Breytenbach explained, Cormark lowered its enterprise value per ounce estimate on Rattlesnake Hills to $35/ounce from $40/ounce and, consequently, its target price on GFG to CA$1.70/share from CA$2.10/share.

GFG Resources' shares are currently trading at around $0.50. Cormark has a Buy recommendation on the corporation.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: GFG Resources. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources, a company mentioned in this article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: GFG:TSX.V; GFGSF:OTCQB, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/article/2017/12/07/prospective-explorer-working-toward-maiden-resource.html