Thursday, August 17, 2017

Good News, Bad News and Encouraging News

Source: Adrian Day for Streetwise Reports   08/16/2017

Money manager Adrian Day presents updates on three precious metal companies in his portfolio.

Nevsun Resources Ltd. (NSU, NY, 2.12) fell sharply after it announced a decision to operate a smaller, short-life open-pit at the troubled Bisha mine in Eritrea, cutting the mine-life by 50% to four years. In addition, a Prefeasibility Study (PFS) on Timok in Serbia was pushed back from September to "first quarter." Though it appeared that there was no good news—one analyst called it a "kitchen sink" strategic update—each decision had a sound basis, leaving Nevsun, in time, a better company.

Eritrean operations scaled back, but still good cash flow
The metal recoveries at Bisha, which have caused the company and the stock difficulties since the start-up of the third phase last fall, are now apparently improving and the company called its new plan at "highly executable and arguably somewhat conservative." Although it continues to look at ways of extending the mine life, the small mine size is unlikely to change; the "point of no return" on reversing the decision is the end of this year. Bisha is expected to continue to generate free cash flow for the rest of its mine life, after an investment this year of $24 million.

Timok is a priority
On Timok, acquired when it bought Reservoir Minerals, there are several milestones ahead, including the updated Preliminary Economic Assessment in October; commencement of the decline construction by the end of the year; and a PFS in the first quarter of 2018. The PEA is at a high level, the company said, so completing the feasibility should come quickly after that with production on track for 2021. This is for the upper zone. Underground work with Freeport, the company conceded, is progressing more slowly than hoped.

Although the company with its objective of building a strong multi-mine company is on the lookout for opportunistic acquisitions, and it is undertaking brown- and green-fields exploration in both Serbia and Eritrea, the priority is on preserving its cash—currently $171 million with no debt—for the construction of the mine in Serbia. "Timok is absolutely our top priority," said new CEO Peter Kukielski.

Nevsun is a buy here if you do not own it (or perhaps add to your position, and sell some after 31 days to capture a loss on your other holdings.)

Give with one hand, take away with the other
Yamana Gold Inc. (AUY, NY, 2.69) had a strong second-quarter with production up and cash costs staying under $700/ounce. However, as we have come to expect with this company, every piece of good news is offset by bad. This time, the company announced it would paying $75 million to settle a dispute with the Brazilian tax authorities. Though the decision to settle is probably a good one, it will likely have to tap it credit line to make the payment, given its anticipated high capital program. It is also accelerating its sale of non-core assets to raise cash for this program.

We are frustrated with Yamana, which can never seem to fulfill its potential, and seems to have a cupboard full of cockroaches to continually set back any progress. This, plus the rally in the last two months from a low of $2.23, makes us reluctant to buy. But the valuation—20% discount to its peers on a price-to-NAV basis—with Yamana the cheapest of the large miners make us reluctant to sell. We are holding.

Another strong quarter for Franco
Franco-Nevada Corp. (FNV, NY, 77.65) had a strong quarter. Though "gold equivalent ounces" were slightly down on the quarter, they were up 9% from the corresponding quarter a year ago, and the quarter set new records on many financial metrics, including revenue and net income. Precious metals continue to dominate, at 92% of revenues, with 71% from gold.

Following exercise of expiring warrants, the company has $600 million cash, is debt free, and has about $100 million in securities plus over $1 billion available on its line of credit, putting it in an unrivalled position for new acquisitions. $200 million of the cash will go towards development of Cobre Panama, as agreed, for a start-up in 2018/2019. Franco said it is on the lookout equally for minerals, including gold, and oil & gas.

Growth bump ahead, followed by decade of no decline
With the start-up of Cobre Panama, Franco should see a strong boost in revenue growth. Once that mine is fully operational, around 2021, Franco would see 10 years ahead of stable business without any new assets, putting it in a very strong position

Franco management noted that the company would be subject to the same offshore tax issue that Wheaton Precious Metals is fighting, with about 44% of its EBITDA generated offshore. Most of its offshore streams are recent, however, so any back taxes would be relatively low; the larger impact would be on its future business.

Franco is more expensive than its peers on a valuation basis, but given the diversified portfolio, the decade-long stability, and the balance sheet, this is justified. Franco is a core holding for us, and we buy again on any pullback.

Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is "Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks."

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Disclosure:
1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Franco-Nevada and Nevsun Resources. 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. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Nevsun Resources, Franco-Nevada and Yamana Gold. 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: Wheaton Precious Metals Corp. 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 interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Franco-Nevada Corp. and Nevsun Resources, companies mentioned in this article.

( Companies Mentioned: FNV:TSX; FNV:NYSE, NSU:TSX; NSU:NYSE.MKT, YRI:TSX; AUY:NYSE; YAU:LSE, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17634

A Critical Q&A with Nemaska Lithium CEO Guy Bourassa

Source: The Critical Investor for Streetwise Reports   08/16/2017

The Critical Investor sits down with Nemaska Lithium CEO Guy Bourassa to discuss the company's latest financing, plant construction and mine development.

It has been relatively quiet around Nemaska Lithium the last six months or so, after it started construction on the Phase I plant and completed several early stage parts of the Whabouchi Mine, besides looking for capex financing packages along the way. Although lithium product prices held up very well at relatively high levels and are even slowly rising again:

Historical Lithium PricesSource: Galaxy Resources/CJ Securities

the Canadian stock market sentiment turned a bit soft/neutral, so an advanced and permitted lithium development story looking for major funding often doesn't get the most love from investors in this kind of climate, as can be seen in this chart:

Nemaska Share PriceShare price 2 year period

However, Nemaska Lithium isn't sitting on its hands as far as funding goes, and recently managed to raise another C$50M @ C$1.05 again through a short form prospectus, supported by many institutionals. Proceedings will be used for further development of the project, and is in effect another equity part of capex. Together with the first raise, Nemaska now has raised $100M in equity for capex, which is the majority of the equity part of capex. This counts as a material development in my book, so I felt it was time to do an update, and what is a better means for this than a Q&A with CEO Guy Bourassa, to discuss this and various other things of interest.

TCI: Thank you Guy for taking the time to participate in this interview. It looks like the stock is suffering from the waiting game for capex funding here, but I believe this could be a blessing in disguise for new investors at this stage. What is your opinion on this, and could you elaborate why?

GB: I believe that the stock will begin to reflect the value that we have created in the company over the coming months. Over the past twelve months we have produced more than 1100t of concentrate at 6.2% Li2O, and built and commissioned the Phase 1 Plant so that we can produce battery grade lithium hydroxide samples for customers globally starting in September. In addition, we have also delivered 8.7t of lithium hydroxide to our first customer, Johnson Matthey. At the same time, we have raised $100M in project financing, which has allowed us to make tremendous progress on construction at the mine site and advance the detailed engineering of the commercial Hydromet, so Nemaska Lithium today is a much different company than it was just one year ago. We have made great advancements in executing on our plan to become the next lithium salts producer.

Concentrator buildlingWhabouchi project: concentrator building

TCI: You just closed the $50M financing, which was great, no discount, no warrants. However, I am not a big fan of short form as it could create immediate pressure. Why did the institutional who bought this stock insist on short form?

GB: We opted to do a bought deal using a short form prospectus offering as it allowed us to offer the deal to a wide variety of investors including important institutional investors as well as retail investors. The bought deal structure usually allows for better terms and doesn't put pressure on the stock. Nemaska Lithium has a large shareholder base and this type of offering enables the largest audience to participate. Also, I don’t see this as having an immediate pressure on the stock as this offering was not a unit offering and so there was no warrant to give an investor an incentive to sell the stock and hold the warrant to limit the risk. Anyone who took a position did so to take a position in the stock and had a long term view.

TCI: Could you disclose any of the names of the institutionals who participated?

GB: We do not disclose our investor shareholder base, unfortunately; you could consult Bloomberg for a public list of investors. I will say though that we have been able to attract extremely large and credible institutional investors globally.

TCI: What are you planning to do with this cash; could you break it down for the audience?

GB: We are continuing ongoing construction at the mine site, procurement of major equipment, as well as detailed engineering of the Hydromet plant and identification of long lead items and critical supplier negotiations and delivery schedules. In the prospectus of the last offering you can find a table describing expenditures with proceedings.

TCI: This table is shown here, plus notes, in order to get a better picture, and can be found on page 9-11 in the prospectus (on SEDAR):

Summary of Investments

TCI: We discussed earlier the promise of state-owned Quebec Ressources committing to $75M in debt as a backstop after private parties funded the rest of capex first. Do you have a public document of this promise, and how does this work, will this debt be first or second lien, any idea of interest rates?

GB: We are in active negotiation with private lenders. We don't have a public document on this, and Quebec is involved in these discussions and will have the same terms as the private lenders.

TCI: Do the banks involved in capex funding need any milestones, more off-take agreements?

GB: Lenders have indicated that they would like to see initial production of lithium hydroxide from Whabouchi concentrate being sent to customers from the Phase 1 Plant that we are on target to deliver in September. We currently have offtake agreements for approximately 50% of our commercial product and lenders have indicate that these offtake agreements are enough to satisfy their due diligence requirements. We remain very bullish on the price of lithium and would prefer to continue offtake negotiations once we have finalized our project financing, putting us in a stronger negotiating position with a clear production timeline.

Bulk sample locationWhabouchi project; bulk sample location

TCI: Are you willing to disclose a timeline for capex funding?

GB: The capex funding is our current top priority and we are working to close it as quickly as possible. The mine has construction and commissioning timeline of 9 to 12 months and the Hydromet plant is 18 months construction and commissioning once financed.

TCI: Let's have a look at the discovery and integration of the Doris Zone. This was found during pit outline drilling at Whabouchi, what are your plans with this? Surely you are not going to change the FS economics anymore as the current resources are more than large enough, and you are in the middle of capex funding talks.

GB: Correct, we are focused on the project financing. There is no pressing need to update the feasibility given our life of mine is currently 26 years. Investors should view Doris as a bonus.

TCI: We briefly discussed the flow sheet. A 6.2% concentrate is already being produced through the Phase I Plant involving the DMS process, which is roughly about 2/3 of production. Besides this, a flotation part is also necessary to recover the other 1/3 of production, and this is being done at Lakefield, one of the most recognized third party processing and testing firms in North American mining. The plant building in Shawinigan is partly filled at the moment with parts of the flow sheet process. Can you explain what will happen when the mine and plant is at full commercial production capacity?

GB: We plan to produce 28,000t of LCE. Our line is fully flexible to produce both lithium hydroxide and carbonate. We will also consider selling concentrate if the price of concentrate continues to be strong and our margins looks healthy.

Plant

TCI: What parts of the flow sheet need a bigger scale, and which ones need multiple elements, more of the same?

GB: The electrolysis section is at scale and each module is autonomous and will only require additional electrolysis modules to be added to reach full capacity. The balance of the plant such as the kiln, dryer, crystalizer, etc. will be larger than the current Phase 1 Plant 1. This is off the shelf equipment and will be purchased at the appropriate size for the commercial facility. The impurity removals section is largely a series of tanks that are easily scaled and will require modifications to the chemistry to remove impurities at a larger scale.

TCI: I see you have hired quite a bit of new staff. Do you believe the company is ready now to take this to production, or do you need more people?

GB: We have optimized our structure and filled key positions already with extremely experienced people who are well qualified for their roles. Nemaska Lithium has adopted a participative management philosophy, which supports an autonomous decision-making process at all levels. Participative management is at the center of our culture of accountability, creativity and innovation that is demonstrated by all of our employees. I am extremely proud of our teams and their capacity to deliver in such a fast paced and dynamic environment. We actually simplified our structure by taking out the VP Operations position, as this was the result of the first blueprint for our organization made by consultants and was useful for bringing the Phase I plant into production.

TCI: Another interesting thing I hear quite frequently is the possibility of a takeover by, for example, Galaxy Resources. Are you open for a takeover at the usual premiums at all at this stage, or are you and the large shareholders in this for the big exit at production stage? Could you disclose anything on this subject?

GB: I cannot comment on rumors as to a potential takeover or partnership with Galaxy or others. We are open to discussions with others, of course, but I would only consider this after we have executed on our plan to build the mine and Hydromet plant. I believe that the value for our shareholders will have increased significantly by that time.

TCI: I believe Nemaska is an excellent investment opportunity, since the post-tax NPV8 of Whabouchi is $928M, which is C$1200M, which in turn is 2.65 times the current market cap of C$452M, and most equity is already raised. With more equity raised for capex, say $100M, the total number of shares outstanding comes in at about 500M. This means when Whabouchi would go into production, and we assume a conservative P/NPV ratio of 1, that the hypothetical corresponding share price could be C$2.4. What is your comment on this, and do you have other ambitions in this regard?

GB: I think this is still very conservative. Once in commercial production I think we should be valued on an EBITDA multiple at 10 to 15 times EBITDA as a chemical company. We believe that at our nameplate production we should be close to C$200M EBITDA (assuming a conservative $10,000/t LCE) starting in 2020. When one multiples that by 10 we would be about C$4 a share. Having said that I can make no predictions about the share price of Nemaska only to say that I believe we are undervalued here today.

TCI: This will definitely be the case when project financing can be arranged. Are there any things that could pose a risk, is Shawinigan fully permitted for operation for example? Are other operational permits pending or could anything else be of concern?

GB: Our risk mostly lies with the project financing, which we are currently working on. We are fully permitted and funded for the Phase 1 Plant and the commercial plant permitting is on-going and I don't see anything to hinder this process given our Phase 1 Plant is currently operational, using the same process as the commercial facility. The General Certificate of Authorization at the mine site is the overriding permit needed for construction and operations, and the other permits are filed as needed.

TCI: We are closing in on the end of this interview. Do you have any other interesting information for the audience, which might strengthen the case you are making for Nemaska?

GB: I believe that Nemaska Lithium is on the cusp of finalizing its project financing and the true value of all our work to date is about to be unlocked. Nemaska Lithium is extremely well positioned to take advantage of the current supply shortage for lithium. The lithium ion battery market is rapidly growing and in need of new suppliers. We are one of very few companies that can enter the chain of supply for battery compounds in the next five years. Finally, given the production from our Phase 1 Plant we will already be qualified as a supplier allowing us to be in the market immediately. This is an excellent position to be in.

TCI: Thank you Guy, and I do hope you can achieve your goal of funding capex at the end of Q3/beginning of Q4. The Whabouchi project will be derisked for the most part in that case, and it looks like a very interesting (re-)entry point by then, as a steady rerating seems inevitable towards production. The usual risks remain, of course; I'm assuming construction and ramp up goes well, lithium prices don't go below $10,000/t (now over $15,000/t and rising again), and stock market sentiment on the TSX remains neutral to positive during this period. Good luck with the project financing, and I will keep tracking this story closely.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

The Critical Investor's Disclaimer:
The author is not a registered investment advisor, currently has a long position in this stock, and Nemaska Lithium is a sponsoring company. All facts are to be checked by the reader. For more information go to www.nemaskalithium.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

ShawiniganShawinigan; location of plants

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Streetwise Reports Disclosure:
1) The Critical Investor's disclosures are listed above.
2) The following companies mentioned in the article are billboard 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) 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.

( Companies Mentioned: NMX:TSX; NMKEF:OTCQX, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17633

Wednesday, August 16, 2017

Maxim Raises Target Price of Biotech Company

Source: Streetwise Reports   08/16/2017

A year-over-year increase in sales of its flagship product, and the prospect that its technology could be used to promote the efficacy of cell therapies, helped spur a target price increase on this biotech.

In an Aug. 8 research report, Maxim Group analyst Gabrielle Zhou noted the firm had raised its 12-month price target on CytoSorbents Corp. (CTSO:OTCBB) "to $12 from $10" due to the company "making steady progress on both commercial and clinical developments."

CytoSorbents "continues to drive the sales of CytoSorb in its launched territories and progress toward the initiation of CytoSorb's U.S. pivotal trial," Zhou wrote.

At the end of Q2/17, the company's blood purification therapy, CytoSorb, showed 17% sequential and 64% year-over-year growth, "mainly driven by the increase in direct sales from new customers and repeat orders (direct sales accounts for more than 67% of total product revenue)," Zhou explained. "While the company has not yet given guidance, management expects product sales in H2/17 will exceed the first half of the year."

CytoSorbents exited the quarter with "$16.4M in cash, which included a $5M debt facility with Bridge Bank. At the current burn rate, we estimate sufficient cash runway through 2018," indicated Zhou.

The analyst also provided an update on the company's U.S. REFRESH II study, which aims "to compare CytoSorb versus control in a large study (300–500 patients)." The trial "remains on track to initiate in H2/17," she said.

Also in the report, Zhou mentioned the use of CytoSorb in potentially increasing effectiveness of chimeric antigen receptor T-cell (CAR-T) therapy. "While treatment with Tocilizumab (anti-IL6) and corticosteroids can help, a more attractive approach may be to filter out the cytokines with CytoSorb," she suggested. "If patients experiencing severe cytokine release syndrome can have cytokines filtered out of the blood and 'walked' down to a safer level that still promotes CAR-T efficacy, CytoSorb could be widely used by the CAR-T space, which is about to go commercial in 2018."

Maxim Group has a Buy rating and newly increased 12-month price target of $12 per share (up from $10 per share) on CytoSorbents Corp. Currently, the stock is trading at about $4.75 per share.

Want to read more Life Sciences Report articles like this? Sign up at www.streetwisereports.com/get-news for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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 company mentioned in this article is a billboard sponsor 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) 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: CTSO:OTCBB, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17632

'Keep a Close Eye On' This Regenerative Medicine Firm

Source: Streetwise Reports   08/16/2017

In an update on this company's clinical cell therapy programs targeting blood cancers and osteoarthritis in the knee, Gabrielle Zhou of Maxim Group describes progress that sets the stage for "value inflection."

Zhou summed up Cellular Biomedicine Group Inc.'s (CBMG:NASDAQ) recent activities in an Aug. 9 research report. "CBMG's cell therapy programs continue to make progress," she wrote. "We expect to see data from both the CARD-1 and CALL-1 chimeric antigen receptor T-cell (CAR-T) studies by 2017E, setting the stage for a value inflection as CBMG becomes a Phase 2 CAR-T player."

The analyst also noted the company has enough cash to get to that stage. "CBMG ended the period with $27M in cash," Zhou noted. "At the current burn rate, we estimate CBMG has sufficient capital to fund through topline data releases (by 2017E) from its CARD-1 and CALL-1 studies, which should represent catalysts for the stock."

She reiterated what the company's two China-based Phase 1 studies consist of:

1. Initiated in Q1/17, CALL-1 is a "dose-escalation study (n=9) that uses the optimized proprietary C-CAR011 construct of CD19 CAR-T therapy in patients with relapsed or refractory CD19+ B-cell acute lymphoblastic leukemia. . .Good data should translate into a larger Phase 2 trial," Zhou wrote.

2. CARD-1 is a "nine-patient, dose escalation study evaluating safety efficacy and C-CAR011 cell persistence in patients with relapsed or refractory diffuse large B-cell lymphoma. . .Patient enrollment (n=9) is currently underway," said Zhou.

In other news, Cellular Biomedicine "received a $2.3M award from California Institute for Regenerative Medicine to support the company's allogeneic human adipose-derived mesenchymal stem cells AlloJoin for the treatment of knee osteoarthritis in the U.S.," indicated Zhou.

Looking forward, by the end of 2017, the biomedicine firm "expects to have a combined 70,000 square feet of GMP manufacturing space between Shanghai, an expanded Wuxi-based facility and the facility in Beijing," said Zhou. "These three facilities could simultaneously support clinical development of five CAR-T and stem cell therapy products, or up to 10,000 patient CAR-T treatments and 10,000 stem cell therapies per year."

These developments are the result of Cellular Biomedicine's previously announced collaboration with GE Healthcare Life Sciences China, Zhou added, "to co-develop industrial control processes in CAR-T and stem cell manufacturing."

Maxim Group has a Buy rating and 12-month target price of $18 per share on the company. Its stock currently trades at roughly $8.50 per share.

Want to read more Life Sciences Report articles like this? Sign up at www.streetwisereports.com/get-news for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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 company mentioned in this article is a billboard sponsor 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) 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: CBMG:NASDAQ, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17631

Immunotherapy Company's Q2 Revenue 'Handily Beats' H.C. Wainwright's Projection

Source: Streetwise Reports   08/16/2017

Analyst Ram Selvaraju with H.C. Wainwright & Co. provided an update on this biotech company's REVEAL clinical programs, as well as Q2/17 earnings that exceeded expectations.

According to H.C. Wainwright's Aug. 9, 2017 research report, Inovio Pharmaceuticals Inc. (INO:NASDAQ) exited Q2/17 with $92 million in cash. It has closed a public offering that yielded $70.5 million, which "would be used for general corporate purposes, including clinical trial expenses," according to Selvaraju. "We estimate that the company's pro forma cash position after the offering should be sufficient to fund at least 18 months of operations."

Inovio reported top-line quarterly revenues of $20.4 million, "handily beating our original projection of only $6.7M," wrote the analyst. "This was primarily driven by the recognition of $13.8M in revenue from MedImmune," Selvaraju explained. "This revenue recognition occurred upon MedImmune's definitive selection of a new cancer product candidate to be tested in clinical trials against an undisclosed cancer target from the two companies' ongoing research collaboration."

Selvaraju reminded investors of revenue expected from another corporate partnership, this one with ApolloBio, for development in China of Inovio's DNA-based, nonsurgical immunotherapy, VGX-3100. This deal "involves an upfront payment of $15M and an equity investment of $35M in Inovio common stock," he said.

The report also indicated patients are being recruited for REVEAL 1, a primary study, and REVEAL 2, a confirmatory study, of Inovio's VGX-3100 in the treatment of "HPV-16/18-related high-grade cervical dysplasia, or high-grade squamous intraepithelial lesions," Selvaraju wrote. "Each study is slated to enroll 198 patients in over 100 centers globally."

Selvaraju outlined the market timing and potential for commercialization of VGX-3100. "We currently project that the REVEAL program would take two years to complete and VGX-3100 could enter the market in late 2020, with peak global sales of approximately $1.2B in 2030," he said.

H.C. Wainwright reiterated its Buy rating and 12-month price target of $13 per share on Inovio. The stock is currently trading at around $5.43 per share.

Want to read more Life Sciences Report articles like this? Sign up at www.streetwisereports.com/get-news for our free e-newsletter, and you'll learn when new articles have been published. To see recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

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 company mentioned in this article is a billboard sponsor of Streetwise Reports: Inovio Pharmaceuticals 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.
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: INO:NASDAQ, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17630

Cryptocurrencies Exploding: This Is Nuts

Source: Tom Beck for Streetwise Reports   08/15/2017

Cryptocurrencies are a megatrend, says Tom Beck, founder of Portfolio Wealth Global, and discusses their meteoric rise.

You can get to seven figures right now—it's possible, because I already have met 23 people who have done that, the youngest of whom is now 23, but was 17 when he bought Bitcoins initially.

You've got to be on high alert when you hear that even the harshest Bitcoin skeptics, like long-time Bitcoin slammer Josh Brown, of New York-based Ritholtz Wealth Management, are now blogging about buying some "in case I'm wrong," as he says.

Bitcoin not only survived the fork and brushed it off like dust, but it is absolutely surging.

I initially bought coins in early 2013 at $7 and liquidated the entire position at $119—a 17-fold return. Since then, I've been in and out of cryptocurrencies, always maintaining a core position with Bitcoin.

In March, just 150 days ago, Portfolio Wealth Global profiled Steemit, and it's gone up 28-fold—that's 2,900% in five months, top to bottom.

Monero, which we detailed in the same alert, has doubled.

Bitcoin Market Cap

Nothing would make me more satisfied than to see you ride this mega-trend into the seven-figure territory—that's what it's all about.

This is now past the point of hiding in the shadows—my friend's broker over at Goldman Sachs had even approached him to get some cash into the mix.

I remember publishing our Ethereum Special Report and giving it a price target of $25. When it surpassed $100, a subscriber emailed me a picture of himself, his wife, and his three kids in a beachfront villa in Thailand with a caption: "Tom, you were wrong on Ethereum. I didn't double my money—I made 676% and cashed out. Lol. Took fam on a 10-day vacation to paradise."

Here's my thinking, though: Many of my friends have never bought a single coin. They're in their 30s, like me, and their reasoning is that it's too technical and requires knowledge. I must assume, therefore, that this phenomenon is intensified for people who have even less appetite for tech-related processes.

I've been emailing top experts in the cryptocurrency sector, jumping on conference calls, and even took a flight to meet a six-year veteran of Bitcoin in the southern part of the U.S., where I'm currently at, with the purpose of finding the easiest way for people to get immediate exposure to this bull market with one click, as close to a "crypto ETF" as possible.

This is where my mind is at right now, and Portfolio Wealth Global is looking at all the angles. I'll have a complete assessment for you very soon.

My first question to this veteran is the same one you are probably asking yourself: "Are we late to the party?"

Here are the bulletin points of his reply to me:

1. Coinbase Secret Investors: This is one of the leading exchanges in the world, and in early 2015, Intercontinental Exchanges, the parent company of the New York Stock Exchange, bought into it.

The largest traditional clearinghouse in the world owns a strategic position with a Bitcoin exchange!

2. Bloomberg Articles: This is smart. I have to take my hat off to this guy for doing this. He hired an assistant to probe all mainstream outlets daily and summarize article titles, comments by readers, and information, and let him know the sentiment.

As I'm writing this, most large financial mainstream outlets are running "What Exactly is Bitcoin"-type articles.

3. Government Guidance: Now, here's where this will plant the flag in your mind that governments are about to become an integral part of cryptographic currencies.

For months, my good friend Doug Casey has been telling me about what he terms as "FedCoins," which are basically government-issued cryptos that he believes are coming, but the fact that the government is now actively investigating tax evasion and undeclared gains shows you that they realize what I've been saying for a while: these gains that people are making cannot be converted into fiat currencies without getting taxed because governments are losing a fortune.

The bottom line is that just like with the cannabis legalization movement, it's unstoppable at this point.

We're going to beat the crowd by miles, and I'll be funneling every resource Portfolio Wealth Global has to finding the perfect play for us.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Statements and opinions expressed are the opinions of Tom Beck and not of Streetwise Reports or its officers. Tom Beck is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Tom Beck was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) 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.
3) 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.

Chart provided by Portfolio Wealth Global



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17629

Tuesday, August 15, 2017

Silver Producer Moves Newly Acquired Argentinean Projects Forward

Source: Streetwise Reports   08/15/2017

Andrew Kaip, an analyst with BMO Capital Markets, reviewed this senior mining company's Q2/17 financial highlights and project milestones.

According to an Aug. 9 research report, Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) achieved an earnings per share beat in the second quarter. "Adjusted EPS of $0.18 was substantially higher than our forecast of $0.07 and consensus of $0.10 on the back of higher revenue and lower costs," Kaip wrote.

The silver company's Q2/17 operating cash flow of $43M was in line with BMO's estimate of the same amount "as a result of negative working capital adjustments and deferred taxes," reported Kaip. Free cash flow of $1M, however, missed BMO's expectation of $3M. Pan American had $161M in cash as of June 30, 2017.

During the quarter, Pan American produced 6.3 Moz silver and 38 Koz gold, both in line with estimates, Kaip said. "Revenue beat our estimates on higher-than-expected silver and copper sales," he added.

Pan American reiterated production guidance and lowered its cash cost guidance to $5.50–6.50/oz from $6.45–7.45/oz "as a result of solid cash performance in H1," wrote Kaip.

As for capital expenditures, the report indicated the silver producer plans to spend $12.5M on development of Joaquin and COSE, its newly acquired projects in Argentina, and $5M on finishing the Dolores expansion. "Presently, the company is advancing two major expansions at Dolores and La Colorada, expected to grow its production profile in 2017," the analyst said.

With respect to those efforts, Kaip's research also revealed the advancements Pan American made during Q2/17:

1. At Dolores, it finished "construction of the pulp agglomeration plant and commenced commissioning. Initial underground stope mining is expected to begin before year-end," Kaip noted.

2. At La Colorada, it reached production of 1,800 tpd in June, said Kaip, and "development of the underground mine is advancing ahead of plan."

About BMO's investment thesis for Pan American, Kaip said, "PAAS remains a higher-quality name amongst silver miners, but we believe recent share performance incorporates the execution of its Mexican expansions and the steady three-year production outlook. Beyond these milestones, the company offers limited catalysts, as longer-dated projects require firmer timelines and deliverables to establish a meaningful pipeline."

BMO Capital has a Market Perform rating and $17.50 price target on Pan American Silver. The company today is trading at around $15.96.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, securities of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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) 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: PAAS:TSX; PAAS:NASDAQ, )



from Streetwise Reports - Exclusive Articles https://www.streetwisereports.com/pub/na/17627