Featured Company /
Erin Ventures Inc.
From Capitol Hill to Wall Street, catalysts abound for the commodities sector. The Net Zero movement remains at the forefront of global consciousness and, after a brief turn in the barrel, it looks like electric vehicles are gaining favor again. Toss in the war in Ukraine and some hard supply chain lessons learned from the coronavirus pandemic and there are many reasons to be bullish on different types of the Earth’s resources, including boron, an irreplaceable micronutrient with critical roles in countless industries from healthcare to industrial goods.
As cleverly noted in an article published in the National Institute of Health’s National Library of Medicine, there’s “nothing boring about boron .” While that article details the vital role boron plays in the body, boron’s is a critical ingredient in countless other business sectors, including aerospace, autos, construction, defense, agriculture, semiconductors, consumer goods (bleaches, mobile device glass, etc.), satellites, pharmaceuticals, and much more.
A hard and heat-resistant semi-metal with the atomic number 5, boron is experiencing increasing demand as part of decarbonization agendas. For starters, boron is integral to electric vehicles, where it is used in powertrain magnets and batteries. Elsewhere in the green environment, solar glass and wind turbines aren’t possible without boron.
Boron is also instrumental in reducing carbon dioxide levels in the atmosphere. Able to produce energy without emitting greenhouse gases, it is also used in in coal-burning power plants, off-gas treatment facilities, high-pressure synthesis gas plants, and other industrial processes to slash emissions without sacrificing efficiency or quality. Owing to its incredible stability, boron can be recycled indefinitely, making it an ideal material for any sustainability initiative.
And those are just some examples of what is known today. New technologies are constantly evolving, such as radiation-less hydrogen-boron that could be the future of fusion in energy generation. Let’s not also forget about discussions that make the point that boron could be the future for powering EVs, not lithium as most seem to think.
In some (née, many) ways, boron could be looked at similar to the way people viewed lithium a decade ago: overlooked by most investors with analyst expectations for protracted demand-side pressure and questions about where new mines will come from. To that point, Credit Suisse forecasts demand for borates to surpass supply within the next three years.
The supply issue is arguably more pressing for boron than lithium, though, because boron has more far greater uses in general and deposits are rarer, which should support higher prices for boron going forward. Currently, the market is an oligopoly comprised of Turkey’s state-owned Eti Mine Works, which operates a massive eponymous mine in Turkey, and Rio Tinto (NYSE: RIO) , which has been producing borates from its mine in Southern California since the early 1900’s. Collectively, the two majors control about 80% of the nearly $5 billion global boron market.
There is a necessity for new players to enter the space and savvy investors understand this, which underscored the rise in value of Australia’s 5E Advanced Materials (ASX: 5EA) (NASDAQ: FEAC)
This backdrop highlights the position of Erin Ventures Inc. (TSX-Venture: EV) (OTCPK: ERVFF) Piskanja is one of the top high-grade, world-class boron projects known in the world today. Erin operates the project through its 100% owned subsidiary Balkan Gold, the holder of the Piskanja license. The company recently brought in a partner, which provides the funding necessary to advance the project to important milestones in 2022 and 2023.
Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, etc., 250 kilometers south of Belgrade, Serbia by good paved roads. Lithology at Piskanja is typical of sedimentary basins, (primarily shales, marls and limestone) with two primary gently undulating borate beds. Mineralization is primarily dense, compact colemanite with some ulexite, two of the most desirable forms of boron.
In Q3 2021, an agreement was finalized with Temas Resource Corp. (CSE:TMAS) (OTCQB:TMASF) pursuant to which Temas has the opportunity to earn a 50% equity interest in Balkan Gold by spending 10.5 million euro (US$12.85 million) on development at Piskanja over the course of 36 months. Temas is a perfect partner right now for Erin. Temas adds more than just the money, it brings depth and knowledge to the team with several QPs, metallurgy and mining expertise in-house, plus networks to all other aspects for strategic partners to develop an operating boron mine (metal traders, debt financers, etc.).
Temas will lend its expertise, while Balkan remains as operator on the project.
Key industry reports in the last 8 years shed light on the opportunity at Piskanja. In a National Instrument 43-101 report amended in February 2019 titled, “Mineral Resource Estimate Update On The Piskanja Borate Project, Serbia,” the project hosts an indicated mineral resource of 7.8 million tonnes (averaging 31% B2O3 (boron trioxide)) and an inferred resource of 3.4 million tonnes (averaging 28.6% B2O3). The estimate is calculated in accordance with the Canadian Institute of Mining Definition Standards on Mineral Resources and Reserves.
A now historic 2014 Preliminary Economic Assessment (PEA) evaluating Piskanja provided additional insight on some favorable economics for a future mine, including a post-tax NPV (10%) of (all figures in USD) $428 million with an internal rate of return (IRR) of 64%. Forecasted annual revenue was shown at $97 million and project payback based on capex of $84.6 million within 15 months from mine start-up. At 21 years mine life, the gross revenue for the project is $2.04 billion with a net operating margin of 68.7%.
All-in cost per tonne of product sold (post-tax) is projected at $165.75. According to analysts at Statista , boric acid prices will continue rising annually to reach $762 per tonne in 2023. Even at that level, Erin can post strong margins based upon all-in cost projections in the historic PEA.
Now it is time to remove the “historic” adjective from the assessments and move Piskanja one step closer to becoming a producing mine. Erin (read as “Balkan and its partner, Temas”) are working on two important documents: a new PEA and an Elaborate.
The two documents are necessary to keep shareholders properly informed on the mine license process and property development. Understand that an Elaborate is similar to a National Instrument 43-101 PEA report that shows there is a deposit and the company can make money from the deposit. But, because an Elaborate is a Serbian compliant technical report, it can’t be shared as a valid North American document per Canadian security regulations. In order to provide transparency to investors, Erin has to complete the PEA too, which it expects early in the second quarter.
The Elaborate will take a bit longer, roughly 60 days, according to Erin management at their recent Annual General Meeting (audio available here ). When exactly the Elaborate is submitted to the Serbian government is remaining somewhat fluid due to the upcoming national elections. Without going into great detail, Serbia’s mining industry has experienced a sort of upheaval recently over complaints surrounding Rio’s lithium project in the northern part of the country. Expectations are that activist activity will be short lived and the new administration and members will soothe the situation upon their installation in fall.
The PEA is going to provide a much clearer picture to the mineralization at Piskanja. When SRK completed the historic PEA in 2014, it assumed a homogonous body of colemanite for the deposit. There are hundreds of different types of borate minerals in the Earth’s crust, but 90%+ commercially extracted are either tincal, kernite, colemanite, or ulexite. Used in heat resistant glass and other industrial, medical, and cosmetic applications, colemanite is a prize in the boron market, with the Eti Mine the world’s only supplier of colemanite. A real perk of Piskanja is that the colemanite is reported to have much lower arsenic content than colemanite at Eti, which will make it highly attractive to buyers.
In the new report, the deposit is being better defined to create a realistic model to construct a mine by understanding the layers and beds of boron and exactly where the colemanite and tincal are located. By doing so, mining strategies can be implemented to extract the appropriate boron based on market demand.
Understanding the borates in the ground also allows for more informed decisions at the surface, such as mining equipment and processing plant. While no investor likes a delay, Erin taking their time (not to mention coping with a global virus pandemic that halted field work and shuttered labs) and publishing a comprehensive PEA that aligns with the Elaborate was the smart decision that investors will appreciate. Moreover, it seems logical that the calculations in the new PEA will not be any less than the historical report, which should provide some current metrics for fairly valuing Erin, which currently has a paltry market cap of just CDN$10 million.
Next on the “to do” list for Erin will be completion of a Feasibility Study/Environmental Impact Study for Piskanja. This is a major milestone for any junior as it is the part of the process that leads to the actual mining license being issued. Erin has until September 2023, but with some of the work already ongoing, management anticipates it will be completed “substantially before then.” The company is aiming for about six months after the Elaborate, which extrapolates to the first half of 2023 for this key report.
Elsewhere, Erin is entertaining discussion with buyers of borate products with the goal of one day signing some offtake agreements where users pay in advance to secure their future supply chain. This brings with it credibility and confidence, along with capital for mine development.
Erin is a case of right time, right place, right material. Some things may seem counterintuitive, given the covid recovery and war in Ukraine, but these can have a durable positive effect on a company like Erin and the boron market. As people look for alternatives to Russian fossil fuels, the push from green energy could become stronger. Belarus, a major supplier of potash, is being cinched off from international affairs for aiding and abetting Russia in its invasion of Ukraine. Boron is big in the fertilizer market as a critical micronutrient, so it could be good there too. While no one wants to think about war being good for business, the fact is that it happens.
All-in-all boron is a market that investors would be wise to get to know better. Within that market, Erin Ventures is on track to hit some key milestones in the coming weeks, months, and years any one of which will add to an evolving powerful story in the boron market.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro cap investors on the internet.
Corporate Snapshot:
Erin Ventures Inc.
Stock Symbol:
CA
Stock Exchange:
TSX-Venture
Sector:
Natural Resources
52 Week High:
$0.1950
52 Week Low:
$0.0500
Current Stock Quote / Chart / News: Click here
Information as of
April 14, 2022
From Capitol Hill to Wall Street, catalysts abound for the commodities sector. The Net Zero movement remains at the forefront of global consciousness and, after a brief turn in the barrel, it looks like electric vehicles are gaining favor again. Toss in the war in Ukraine and some hard supply chain lessons learned from the coronavirus pandemic and there are many reasons to be bullish on different types of the Earth’s resources, including boron, an irreplaceable micronutrient with critical roles in countless industries from healthcare to industrial goods.
As cleverly noted in an article published in the National Institute of Health’s National Library of Medicine, there’s “nothing boring about boron .” While that article details the vital role boron plays in the body, boron’s is a critical ingredient in countless other business sectors, including aerospace, autos, construction, defense, agriculture, semiconductors, consumer goods (bleaches, mobile device glass, etc.), satellites, pharmaceuticals, and much more.
A hard and heat-resistant semi-metal with the atomic number 5, boron is experiencing increasing demand as part of decarbonization agendas. For starters, boron is integral to electric vehicles, where it is used in powertrain magnets and batteries. Elsewhere in the green environment, solar glass and wind turbines aren’t possible without boron.
Boron is also instrumental in reducing carbon dioxide levels in the atmosphere. Able to produce energy without emitting greenhouse gases, it is also used in in coal-burning power plants, off-gas treatment facilities, high-pressure synthesis gas plants, and other industrial processes to slash emissions without sacrificing efficiency or quality. Owing to its incredible stability, boron can be recycled indefinitely, making it an ideal material for any sustainability initiative.
And those are just some examples of what is known today. New technologies are constantly evolving, such as radiation-less hydrogen-boron that could be the future of fusion in energy generation. Let’s not also forget about discussions that make the point that boron could be the future for powering EVs, not lithium as most seem to think.
In some (née, many) ways, boron could be looked at similar to the way people viewed lithium a decade ago: overlooked by most investors with analyst expectations for protracted demand-side pressure and questions about where new mines will come from. To that point, Credit Suisse forecasts demand for borates to surpass supply within the next three years.
The supply issue is arguably more pressing for boron than lithium, though, because boron has more far greater uses in general and deposits are rarer, which should support higher prices for boron going forward. Currently, the market is an oligopoly comprised of Turkey’s state-owned Eti Mine Works, which operates a massive eponymous mine in Turkey, and Rio Tinto (NYSE: RIO) , which has been producing borates from its mine in Southern California since the early 1900’s. Collectively, the two majors control about 80% of the nearly $5 billion global boron market.
There is a necessity for new players to enter the space and savvy investors understand this, which underscored the rise in value of Australia’s 5E Advanced Materials (ASX: 5EA) (NASDAQ: FEAC)
This backdrop highlights the position of Erin Ventures Inc. (TSX-Venture: EV) (OTCPK: ERVFF) Piskanja is one of the top high-grade, world-class boron projects known in the world today. Erin operates the project through its 100% owned subsidiary Balkan Gold, the holder of the Piskanja license. The company recently brought in a partner, which provides the funding necessary to advance the project to important milestones in 2022 and 2023.
Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, etc., 250 kilometers south of Belgrade, Serbia by good paved roads. Lithology at Piskanja is typical of sedimentary basins, (primarily shales, marls and limestone) with two primary gently undulating borate beds. Mineralization is primarily dense, compact colemanite with some ulexite, two of the most desirable forms of boron.
In Q3 2021, an agreement was finalized with Temas Resource Corp. (CSE:TMAS) (OTCQB:TMASF) pursuant to which Temas has the opportunity to earn a 50% equity interest in Balkan Gold by spending 10.5 million euro (US$12.85 million) on development at Piskanja over the course of 36 months. Temas is a perfect partner right now for Erin. Temas adds more than just the money, it brings depth and knowledge to the team with several QPs, metallurgy and mining expertise in-house, plus networks to all other aspects for strategic partners to develop an operating boron mine (metal traders, debt financers, etc.).
Temas will lend its expertise, while Balkan remains as operator on the project.
Key industry reports in the last 8 years shed light on the opportunity at Piskanja. In a National Instrument 43-101 report amended in February 2019 titled, “Mineral Resource Estimate Update On The Piskanja Borate Project, Serbia,” the project hosts an indicated mineral resource of 7.8 million tonnes (averaging 31% B2O3 (boron trioxide)) and an inferred resource of 3.4 million tonnes (averaging 28.6% B2O3). The estimate is calculated in accordance with the Canadian Institute of Mining Definition Standards on Mineral Resources and Reserves.
A now historic 2014 Preliminary Economic Assessment (PEA) evaluating Piskanja provided additional insight on some favorable economics for a future mine, including a post-tax NPV (10%) of (all figures in USD) $428 million with an internal rate of return (IRR) of 64%. Forecasted annual revenue was shown at $97 million and project payback based on capex of $84.6 million within 15 months from mine start-up. At 21 years mine life, the gross revenue for the project is $2.04 billion with a net operating margin of 68.7%.
All-in cost per tonne of product sold (post-tax) is projected at $165.75. According to analysts at Statista , boric acid prices will continue rising annually to reach $762 per tonne in 2023. Even at that level, Erin can post strong margins based upon all-in cost projections in the historic PEA.
Now it is time to remove the “historic” adjective from the assessments and move Piskanja one step closer to becoming a producing mine. Erin (read as “Balkan and its partner, Temas”) are working on two important documents: a new PEA and an Elaborate.
The two documents are necessary to keep shareholders properly informed on the mine license process and property development. Understand that an Elaborate is similar to a National Instrument 43-101 PEA report that shows there is a deposit and the company can make money from the deposit. But, because an Elaborate is a Serbian compliant technical report, it can’t be shared as a valid North American document per Canadian security regulations. In order to provide transparency to investors, Erin has to complete the PEA too, which it expects early in the second quarter.
The Elaborate will take a bit longer, roughly 60 days, according to Erin management at their recent Annual General Meeting (audio available here ). When exactly the Elaborate is submitted to the Serbian government is remaining somewhat fluid due to the upcoming national elections. Without going into great detail, Serbia’s mining industry has experienced a sort of upheaval recently over complaints surrounding Rio’s lithium project in the northern part of the country. Expectations are that activist activity will be short lived and the new administration and members will soothe the situation upon their installation in fall.
The PEA is going to provide a much clearer picture to the mineralization at Piskanja. When SRK completed the historic PEA in 2014, it assumed a homogonous body of colemanite for the deposit. There are hundreds of different types of borate minerals in the Earth’s crust, but 90%+ commercially extracted are either tincal, kernite, colemanite, or ulexite. Used in heat resistant glass and other industrial, medical, and cosmetic applications, colemanite is a prize in the boron market, with the Eti Mine the world’s only supplier of colemanite. A real perk of Piskanja is that the colemanite is reported to have much lower arsenic content than colemanite at Eti, which will make it highly attractive to buyers.
In the new report, the deposit is being better defined to create a realistic model to construct a mine by understanding the layers and beds of boron and exactly where the colemanite and tincal are located. By doing so, mining strategies can be implemented to extract the appropriate boron based on market demand.
Understanding the borates in the ground also allows for more informed decisions at the surface, such as mining equipment and processing plant. While no investor likes a delay, Erin taking their time (not to mention coping with a global virus pandemic that halted field work and shuttered labs) and publishing a comprehensive PEA that aligns with the Elaborate was the smart decision that investors will appreciate. Moreover, it seems logical that the calculations in the new PEA will not be any less than the historical report, which should provide some current metrics for fairly valuing Erin, which currently has a paltry market cap of just CDN$10 million.
Next on the “to do” list for Erin will be completion of a Feasibility Study/Environmental Impact Study for Piskanja. This is a major milestone for any junior as it is the part of the process that leads to the actual mining license being issued. Erin has until September 2023, but with some of the work already ongoing, management anticipates it will be completed “substantially before then.” The company is aiming for about six months after the Elaborate, which extrapolates to the first half of 2023 for this key report.
Elsewhere, Erin is entertaining discussion with buyers of borate products with the goal of one day signing some offtake agreements where users pay in advance to secure their future supply chain. This brings with it credibility and confidence, along with capital for mine development.
Erin is a case of right time, right place, right material. Some things may seem counterintuitive, given the covid recovery and war in Ukraine, but these can have a durable positive effect on a company like Erin and the boron market. As people look for alternatives to Russian fossil fuels, the push from green energy could become stronger. Belarus, a major supplier of potash, is being cinched off from international affairs for aiding and abetting Russia in its invasion of Ukraine. Boron is big in the fertilizer market as a critical micronutrient, so it could be good there too. While no one wants to think about war being good for business, the fact is that it happens.
All-in-all boron is a market that investors would be wise to get to know better. Within that market, Erin Ventures is on track to hit some key milestones in the coming weeks, months, and years any one of which will add to an evolving powerful story in the boron market.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro cap investors on the internet.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Erin Ventures Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Erin Ventures Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Erin Ventures Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.
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