Middlefield Capital Ltd.
Latest Top Picks
They're in northeast BC where Tourmaline is consolidating land and assets, near LXE. So, LXE will become topical. LXE has reached an inflection point after acquiring a lot of land and pushed the Montney play to the northeast. Now, they need a lot of capital to move to full development. They're talking to potential buyers, like Tourmaline who have bought land from LXE before. A spin-out of lands further north may happen. Take some profits.
They're in northeast BC where Tourmaline is consolidating land and assets, near LXE. So, LXE will become topical. LXE has reached an inflection point after acquiring a lot of land and pushed the Montney play to the northeast. Now, they need a lot of capital to move to full development. They're talking to potential buyers, like Tourmaline who have bought land from LXE before. A spin-out of lands further north may happen. Take some profits.
How will their spin-out be a catalyst? They created the spinout, but haven't IPOd yet (https://www.newswire.ca/news-releases/tourmaline-announces-formation-of-topaz-energy-unlocking-value-in-tourmaline-s-significant-asset-base-867903254.html) They took the bull by the horns in a poor sentiment environment of low natural gas prices, worse then oil. So, they created Topaz, a royalty infrastructure company. These companies trade at a big premium which attracts better investor sentiment. Topaz just bought land from Painted Pony and bought a private as well as public company. They consolidated land and infrastructure in northeast BC. They can use Topaz to sell some of that infrastructure to reduce the cost. It's a great way to reduce their cost of capital. They can download assets to Topaz. He sees a lot of upside for TOU to do acquisitions.
How will their spin-out be a catalyst? They created the spinout, but haven't IPOd yet (https://www.newswire.ca/news-releases/tourmaline-announces-formation-of-topaz-energy-unlocking-value-in-tourmaline-s-significant-asset-base-867903254.html) They took the bull by the horns in a poor sentiment environment of low natural gas prices, worse then oil. So, they created Topaz, a royalty infrastructure company. These companies trade at a big premium which attracts better investor sentiment. Topaz just bought land from Painted Pony and bought a private as well as public company. They consolidated land and infrastructure in northeast BC. They can use Topaz to sell some of that infrastructure to reduce the cost. It's a great way to reduce their cost of capital. They can download assets to Topaz. He sees a lot of upside for TOU to do acquisitions.
He bought this in December and it's been on a tear, because Rio Tinto exercised three options on their property (https://thestarphoenix.com/business/mining/star-diamond-corp-to-start-trenching-operations-at-fort-a-la-corne-sites). DIAM has been grinding through this project for 20 years; it's low-grade, but a very large diamond deposit. There's been a dispute with Rio Tinto (https://thestarphoenix.com/news/local-news/star-diamond-says-rio-tinto-hasnt-complied-with-agreement-on-project-near-prince-albert). The details aren't public, but it's probably over spending commitments. Rio exercised that option at least a year ahead of expectations. He believes Fort a la Corne will be a real project and the Star Diamond project makes sense.
He bought this in December and it's been on a tear, because Rio Tinto exercised three options on their property (https://thestarphoenix.com/business/mining/star-diamond-corp-to-start-trenching-operations-at-fort-a-la-corne-sites). DIAM has been grinding through this project for 20 years; it's low-grade, but a very large diamond deposit. There's been a dispute with Rio Tinto (https://thestarphoenix.com/news/local-news/star-diamond-says-rio-tinto-hasnt-complied-with-agreement-on-project-near-prince-albert). The details aren't public, but it's probably over spending commitments. Rio exercised that option at least a year ahead of expectations. He believes Fort a la Corne will be a real project and the Star Diamond project makes sense.
They bought a project from Balmoral in 2016 and really kicked that into high gear, drilling 75,000 metres last year. They had two discoveries last year, really moving the needle. He expects at least a million ounces all told, high quality with KL as a shareholder. Speculation that will KL buy them. (Analysts’ price target is $1.02)
They bought a project from Balmoral in 2016 and really kicked that into high gear, drilling 75,000 metres last year. They had two discoveries last year, really moving the needle. He expects at least a million ounces all told, high quality with KL as a shareholder. Speculation that will KL buy them. (Analysts’ price target is $1.02)
