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Hemisphere Energy Corp.
"Hemisphere Energy Corp. announced that upon annual review, its credit facility has been maintained at $15M, a positive sign in this timid market, and one that reflects the strength of the company's current asset and the potential for increased recoveries through optimization efforts. . .we maintain a Buy recommendation and a $1/share 12-month target price."
Mackie Research Capital
"Input Capital Corp. is a public company in Canada that has taken the streaming model and adapted it to become the first-ever agricultural streaming company, using canola as the underlying crop initially. The business is off to a great start and is proving that farmers are demanding alternative forms of financing such as streaming. In FY/15, which ended in March, Input deployed ~$49M into new streaming deals, up ~100% year over year; generated $19.3M in revenue, up ~280% year over year, and $9M in cash flow (before changes in working capital), up from $1.5M in FY/14. The stock has been a little weak recently on concerns regarding the health of its farmer clients in western Canada; however, Input's exposure is predominantly in the eastern prairies where conditions are much better. This does bring a key issue to light—the benefit of diversification, both by geography and product. The company's recent announcement about exploring the addition of soybean streaming is an example of how Input can add further diversification to the model, by adding a different crop and gaining more exposure to eastern Canada."
The Energy Report Interview with Spencer Churchill
"The Senate Finance Committee markup of tax extenders included positive changes to the biodiesel blenders credit that could support a material uplift to Renewable Energy Group Inc.'s 2016 and late 2015 profitability. . .after the blenders credit is signed into law, the benefit will be recognized in GAAP earnings, instead of accumulating for retroactive recognition, and should materially benefit profits and sentiment."
ROTH Capital Partners
"Following the previously granted approvals from the U.S. Nuclear Regulatory Commission and the Wyoming Department of Environmental Quality, the issuance of the final environmental assessment and the approval of the plan of operations represented the final major regulatory approval required for Energy Fuels Inc.'s Hank Unit. The approvals at the Hank Unit demonstrate the near term scalability of Energy Fuels' assets. We continue to forecast production out of Hank to begin in 2017."
"Input Capital Corp. has an excellent streaming model for its canola business. . .the company provides a farmer with an upfront cash payment in return for a share of the farmer's crop production. . .the farm then delivers Input's share of the crop and is paid a discounted contract price per tonne. If the crop yield has improved, Input can buy additional tonnes at the same contracted price, so both the farmer and the company benefit from an improved crop. Input then sells the crops at the market rate and can invest the proceeds into new streaming contracts. . .the company deployed $49.1M in capital during the 2015 financial year and now has 78 cash-producing streams in place, with 10 more being added in Q1 of the 2016 financial year. The company generated $11M in streaming revenue during 2015, which is a 258% increase over 2014. That's a beautiful business model. In terms of the profit margin, Input Capital's total costs per tonne of canola are around $310. It sells the stuff for around $500/tonne. Not bad for a hard day's work, is it? Input gets canola price upside, production upside, compounding cash returns and diversification without the need for heavy management. . .less than a month ago, the company was trading at around $3/share, now it's at about $2.50/share. These are the buying opportunities that investors should be taking advantage of."
The Energy Report Interview with Tom Wallace
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