Getting Stuff Done
Here are three key things that came across our desk that we thought You Should Know this week, each one showing one of our clients “getting stuff done”:
1. Taseko Mines (TKO $1.67 Mkt cap $502 million) – I’m off this weekend to Dublin and then to London with Brian Bergot, Taseko’s VP of Investor Relations, on the back of some very promising news that came out Monday.
The company announced it had received approvals for an additional US $100 million financing for its Florence Copper project in Arizona – US $50 million each from the Taurus Royalty Fund and the Societe Generale. Along with previous commitments from Mitsui and Bank America, that gives Taseko a total of US $175 million in financing lined up for this project.
This is another huge catalyst for Taseko. I’m looking forward to hearing from our colleagues in Dublin and London as they see this compelling story for the very first time. Stay tuned. If you’d like a short update from Brian when we get back, let me know.
2. EverGen Infrastructure (EVGN $2.20 Mkt cap $30 million) – announced on Tuesday that it had signed a 10-year offtake agreement with Irving Oil for the supply of RNG from EverGen’s GrowTec RNG facility in southern Alberta, one of six RNG projects the company owns and operates across Canada.
This is a significant milestone for the company, and a nice first transaction as CEO for Mischa Zajtmann, a co-founder of the company who’s recently stepped into the CEO slot. Consensus target price from the four analysts covering this story is around $5.20. Here’s another strong story with solid fundamentals that the markets are ignoring. For now.
Here’s a link to the key facts and corporate presentation on the EverGen company website. If you’d like a short chat with Mischa, let me know.
Mischa Zajtmann, CEO
3. Pine Cliff Energy – (PNE-T $1.52 Market Cap $555 million) - CEO Phil Hodge dropped into our Peterson Capital weekly team Zoom call this morning with an update on last week’s $100 million Certus Oil transaction, and some fascinating facts on the LNG market. It’s Phil’s thesis that the expected increase in Canada’s LNG export capacity by 2025 will put strong and sustainable upwards pressure on natural gas prices.
This chart provided by Phil below speaks directly to that – it would seem that LNG terminals under construction on the West Coast of BC will dramatically shorten shipping time to the key Asian markets. That, combined with Canada’s lower GHG emission profile – as noted on the bottom of this chart – makes a compelling case for much increased demand for Western Canadian natural gas.
If you’d like to connect with Phil for more details, let me know.
Thank you for your continued interest and support.
Rick Peterson (He/him)
Chair