BATTERY METALS, MARKET MOVERS, AND ADDING TO MONTREAL
Here are some highlights from the past ten days on our platform that I thought you should know about:
1- First Cobalt Corp. Comes Onboard
CEO Trent Mell of First Cobalt Corp. gave us an introduction and update to this compelling story (FCC-V $0.25 Mkt Cap $129 million) on Thursday – which also was the first National Day for Truth and Reconciliation. The company issued this press release to commemorate the day, and included this picture of its cobalt refinery in Ontario.
This story is right in the heart of the energy transition movement in North America as First Cobalt has first mover advantage in its plans to become the leading diversified EV battery materials provider on the continent. The map shown here illustrates the tremendous opportunity with off take partners for this refinery, and this video interview I did with Trent here tells the story clearly.
We’re now starting to book Zoom meetings with Trent – in both French and English – from coast to coast. Let me know if you’d like to have us reach out to you.
Three reasons why you want to take a meeting with Trent:
He’s articulate, smart and tremendously respectful of your time.
He’s patiently put together pieces of an incredibly strong story that spans three continents and will position him as an ESG leader in North America.
He’s a true mining professional, has played key roles in all the major players, is fluently bilingual, polite and straightforward.
You need to hear this story. And you need to meet this guy. There aren’t many like him.
2- Market Movers On Our Platform:
Marwest Apartment REIT (MAR.UN $0.91 Mkt Cap $4.1 million buys) is acquiring 2 residential properties in Winnipeg for $27 million. This is very significant for this small, Winnipeg based REIT, that I think has a long and extremely interesting road ahead of it. The residential apartment rental market is extremely strong, and this first acquisition for Marwest is a precursor in what will very likely be a string of similar transactions in the months and years ahead. I’ve seen this play out before Canadian Net Real Estate Trust (NET.UN), formerly known as Fronsac Reit. Marwest’s game plan is similar to the early days of Fronsac. The company is paying down debt aggressively, which will help with NAV growth and then see distributions kick in once the portfolio is further built out. The long term upside and demand in the apartment rental sector that Marwest is playing in, and the markets they are looking at with their pipeline of growth, all play in this story’s favour. We like the sector and the team.
H20 Innovation (HEO -V $2.32 Mkt Cap $197 million) reported record revenue and profitability for fiscal 2021. I can’t think of a better company to have as a core holding for any retail investor, especially coming into what looks like choppy markets in the months ahead. Strong recurring revenue in the 90% range, healthy balance sheet, strong and growing EBITDA margins, disciplined “tuck-in” acquisitions using cash or debt without large equity dilutions and truly becoming a global player in Canada, the US, Europe and the Middle East. What’s not to like about this? And, not to mention, this is a true ESG story. It's only when, not if, this gets taken out. You know it.
Integra Resources (ITR-V $2.89 Mkt Cap $179 million) – George Topping, one of Bay Streets most respected mining analysts, published an initiating coverage report on Integra with a Buy Recommendation and a $7.00 target. Check out the chart and my. highlights below from the conclusion of his report: “Looking for a strong gold sector M&A candidate when nobody cares about the gold market?
“Bottom Line – Ticks All Our M&A Boxes:
Integra’s resource is already large enough to be of interest to multiple mid-tier-acquirers. Idaho is a low-risk jurisdiction, with excellent infrastructure and nearby labour, water, power, and roads. Permitting is very likely given that DeLamar stands on previously disturbed grounds, the private landowners are supportive, and Idaho, a major phosphate producer, is promining. Management also has a track record of selling assets at a premium. We initiate coverage with a Buy recommendation and a $7.00/share target price.” George Topping, Industrial Alliance Capital Markets Metals & Mining Analyst.
3 - Bonjour! Would you like a Pinot
Noir recommendation along with an
update on our clients?
That’s something you might hear from our newest team member who’s just joined our platform in Montreal, who is a native of France, a successful entrepreneur in Montreal and a very well known and respected wine sommelier with a large following in the Montreal business and restaurant community.
Alexis de la Renaudière has joined us as a Sales Associate in Montreal, and will be working alongside Dan Kozel, our VP who’s done an amazing job of anchoring our very strong Quebec platform. Alexis will be focussing his efforts on expanding and deepening our relationships with francophone IAs in Quebec and elsewhere. He’ll be reaching into Quebec City, Sherbrooke, Val d’Or and anywhere else not only in Quebec but across Canada where he can help introduce our stories to francophone fund managers, IAs and family offices.
If you’d like to reach out to Alexis and find out what his favourite wine is heading into the fall as well as the stories he’s working on, he’d love to hear from you.
He’s at alexis@petersoncapital.ca.
Thanks so much for your continued interest and support.
Rick Peterson
President