02-27-2021, 11:39 AM
I believe KWG Resources Inc (CNSX:KWG) and Noront Resources Inc (CVE:NOT) are a grea
<!-- SC_OFF --><div class="md"><p>Normally I would be very skeptical investing in penny stocks but I have stumbled upon these two companies trading at pennies and can’t figure out why this isn’t the investment opportunity of a lifetime. </p> <p>“Noront holds eight mineral deposits of chromite, nickel, copper, zinc, platinum, palladium, along with 100 documented mineral occurrences with showings of gold, titanium, vanadium, diamonds and cobalt.” I bought a little bit of NOT in 2014 at 62 cents after news broke out that Cliffs Natural Resources announced they would abandon its $550-million investment in the Ring of Fire and sell it to Noront Resources at an eventual 95% discount. Noront had a 90% claim to the Ring of Fire with a “plan to mine just under one million tonnes of chromite annually, producing enough semi-finished ferrochrome to supply half of the U.S. stainless steel industry.” At the time of my investment it seemed like relationships with First Nation people was hindering any progress of the mine. “The reason nothing was happening in the Ring of Fire has nothing to do with the value of the deposits. It is entirely due to the inability of governments on all levels, including First Nations, provincial, and federal, to reach consensus on land tenure and development plans.” Fast forward to 2021 and I’ve lost over half of my money as Noront is now trading at 30 cents. </p> <p>Since I bought NOT, the Canadian government has promised to fund the roads needed to start the project. “The planning and construction is being overseen by a combination of Martin Falls and Webequie First Nations and the Ontario government. Progress on getting the roads built has been slower than Noront would like, but the company anticipates all the environmental assessments wrapping up by 2023, followed by permitting and two years of road construction leading toward a 2025 completion. Also, holding a 10 percent stake in the Ring of Fire, KWG Resources, is now forging ahead with a $2 billion railway that would run 330 kilometres, expanding the rail infrastructure in the region for the first time in decades. I did not buy any shares of (CNSX:KWG) and at the time of writing this KWG is trading at 3 cents. How is this possible when there seems to be so much in the pipeline for these two companies? </p> <p>“Copper, aluminium, chromium, manganese, molybdenum, and nickel are required for a range of low-carbon technologies, making them crucial elements for realizing a low-carbon future,” according to the World Bank Report: Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition. Three of these minerals, chromium, nickel and copper can be found in the Ring of Fire. Both Noront and KWG would seem to benefit from a move towards low carbon technologies and could reap the benefits with an increased need for these minerals. </p> <p>One of these technologies can be seen in the emergence of electric vehicles. Bloomberg New Energy Finance sees improved batteries, more readily available charging infrastructure, new markets, and price parity with internal combustion engine (ICE) vehicles as major drivers. The study finds that EV’s hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040. “A quarter of the cost of an EV is the lithium-ion battery, while four-fifths of the cost of the battery itself is the minerals, metals and chemicals going in it.” Canada Nickel chief executive, Mark Selby, said “it’s become very clear that there’s large portions of the periodic table for which the United States has no local source of supply.” There seems to be a heightened U.S. government interest in securing supplies of critical minerals used in everything from EV’s to advanced weaponry. If the U.S. would like to limit their reliance on China for these commodities it would be beneficial to work with Canada to export these materials. With such a close proximity to the automobile factories in the United States there would also be huge savings in transportation costs. Even Elon Musk is asking for it by tweeting, ”I’d just like to re-emphasize, any mining companies out there, please mine more nickel.” And in another tweet, ”Wherever you are in the world, please mine more nickel and go for efficiency, obviously environmentally-friendly nickel mining at high volume. Tesla will give you a giant contract for a long period of time, if you mine nickel efficiently and in an environmentally sensitive way.” </p> <p>As demand for nickel grows the price will continue to rise as the supply gets scarce. In the last year alone nickel prices have gone from 5.01USD/lb to a high of 8.93USD/lb. This increased price for nickel can only bode well for KWG and Noront. </p> <p>Just recently, Noront Resources landed a new strategic partner in Wyloo Metals, the mining division of Tattarang, one of Australia’s largest private investment groups. Wyloo was looking to make some strategic investments outside of Western Australia, particularly in nickel. In looking at investments for a ‘decarbonized’ future, Wyloo is on a global hunt for nickel, lithium and all the metals they think will be important in a low carbon future, particularly in the electric vehicle battery space. This investment reflects the long-term collaborative strategy to support the discovery and development of the next generation of mines required to meet the growing demand of critical materials needed to power the decarbonization of the global economy. Wyloo also has a good reputation in dealing well and honestly with the indigenous populations in Western Australia. They will be a great asset in continued negotiations with First Nations people and help facilitate sustainable mining operations in the Ring of Fire. </p> <p>It’s clear to me there is a lot of value in these companies at such a low share price. With KWG building a railroad and Noront building a road, strategic partnerships can be made between both companies. It may be very likely that KWG could be a takeover target by Noront at some point in the future. But for now it may be beneficial for both companies to develop the required infrastructure they will both need to thrive in the Ring of Fire. </p> <p>To me it seems like investing in these companies is a no brainer and sure to payoff in the future. Am I missing something? Why would someone pay $100,000 for a bitcoin when you can have a share of KWG for 3 cents and Noront for 30 cents? </p> <p>References: </p> <p><a href="https://www.thesudburystar.com/news/local-news/column-stalled-ring-of-fire-worth-more-than-117-billion">https://www.thesudburystar.com/news/local-news/column-stalled-ring-of-fire-worth-more-than-117-billion</a></p> <p><a href="https://www.northernontariobusiness.com/industry-news/mining/a-road-to-the-ring-of-fire-is-everything-railway-not-so-much-3449081">https://www.northernontariobusiness.com/industry-news/mining/a-road-to-the-ring-of-fire-is-everything-railway-not-so-much-3449081</a></p> <p><a href="https://www.thesudburystar.com/news/local-news/kwg-forging-ahead-with-ring-of-fire-railroad">https://www.thesudburystar.com/news/local-news/kwg-forging-ahead-with-ring-of-fire-railroad</a></p> <p><a href="https://www.thestar.com/news/canada/2021/02/23/china-europe-winning-ev-battery-arms-race-house-committee-told.html">https://www.thestar.com/news/canada/2021/02/23/china-europe-winning-ev-battery-arms-race-house-committee-told.html</a></p> <p><a href="https://canada.autonews.com/electric-vehicles/canada-nickel-held-talks-us-government-supplying-metal-ev-batteries">https://canada.autonews.com/electric-vehicles/canada-nickel-held-talks-us-government-supplying-metal-ev-batteries</a></p> <p><a href="http://www.bnnbloomberg.ca/elon-musk-is-going-to-have-a-hard-time-finding-clean-nickel-1.1483442">http://www.bnnbloomberg.ca/elon-musk-is-going-to-have-a-hard-time-finding-clean-nickel-1.1483442</a></p> <p><a href="http://www.mining.com%5C*%5C*%5C%5D(http://www.mining.com/)%5C%5B%5C*%5C*htt...-on-mining">http://www.mining.com\*\*\](http://www.mining.com/)\[\*\*https://sdg.iisd.org/news/world-bank-warns-against-impacts-of-low-carbon-technologies-on-mining</a></p> <p><a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/24/fact-sheet-securing-americas-critical-supply-chains/">https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/24/fact-sheet-securing-americas-critical-supply-chains/</a></p> <p><a href="https://www.bnnbloomberg.ca/why-the-future-is-bright-for-nickel-exploration-1.1562606">https://www.bnnbloomberg.ca/why-the-future-is-bright-for-nickel-exploration-1.1562606</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Mikeylikesit_2020"> /u/Mikeylikesit_2020 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/lsvtm5/i_believe_kwg_resources_inc_cnsxkwg_and_noront/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/lsvtm5/i_believe_kwg_resources_inc_cnsxkwg_and_noront/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Normally I would be very skeptical investing in penny stocks but I have stumbled upon these two companies trading at pennies and can’t figure out why this isn’t the investment opportunity of a lifetime. </p> <p>“Noront holds eight mineral deposits of chromite, nickel, copper, zinc, platinum, palladium, along with 100 documented mineral occurrences with showings of gold, titanium, vanadium, diamonds and cobalt.” I bought a little bit of NOT in 2014 at 62 cents after news broke out that Cliffs Natural Resources announced they would abandon its $550-million investment in the Ring of Fire and sell it to Noront Resources at an eventual 95% discount. Noront had a 90% claim to the Ring of Fire with a “plan to mine just under one million tonnes of chromite annually, producing enough semi-finished ferrochrome to supply half of the U.S. stainless steel industry.” At the time of my investment it seemed like relationships with First Nation people was hindering any progress of the mine. “The reason nothing was happening in the Ring of Fire has nothing to do with the value of the deposits. It is entirely due to the inability of governments on all levels, including First Nations, provincial, and federal, to reach consensus on land tenure and development plans.” Fast forward to 2021 and I’ve lost over half of my money as Noront is now trading at 30 cents. </p> <p>Since I bought NOT, the Canadian government has promised to fund the roads needed to start the project. “The planning and construction is being overseen by a combination of Martin Falls and Webequie First Nations and the Ontario government. Progress on getting the roads built has been slower than Noront would like, but the company anticipates all the environmental assessments wrapping up by 2023, followed by permitting and two years of road construction leading toward a 2025 completion. Also, holding a 10 percent stake in the Ring of Fire, KWG Resources, is now forging ahead with a $2 billion railway that would run 330 kilometres, expanding the rail infrastructure in the region for the first time in decades. I did not buy any shares of (CNSX:KWG) and at the time of writing this KWG is trading at 3 cents. How is this possible when there seems to be so much in the pipeline for these two companies? </p> <p>“Copper, aluminium, chromium, manganese, molybdenum, and nickel are required for a range of low-carbon technologies, making them crucial elements for realizing a low-carbon future,” according to the World Bank Report: Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition. Three of these minerals, chromium, nickel and copper can be found in the Ring of Fire. Both Noront and KWG would seem to benefit from a move towards low carbon technologies and could reap the benefits with an increased need for these minerals. </p> <p>One of these technologies can be seen in the emergence of electric vehicles. Bloomberg New Energy Finance sees improved batteries, more readily available charging infrastructure, new markets, and price parity with internal combustion engine (ICE) vehicles as major drivers. The study finds that EV’s hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040. “A quarter of the cost of an EV is the lithium-ion battery, while four-fifths of the cost of the battery itself is the minerals, metals and chemicals going in it.” Canada Nickel chief executive, Mark Selby, said “it’s become very clear that there’s large portions of the periodic table for which the United States has no local source of supply.” There seems to be a heightened U.S. government interest in securing supplies of critical minerals used in everything from EV’s to advanced weaponry. If the U.S. would like to limit their reliance on China for these commodities it would be beneficial to work with Canada to export these materials. With such a close proximity to the automobile factories in the United States there would also be huge savings in transportation costs. Even Elon Musk is asking for it by tweeting, ”I’d just like to re-emphasize, any mining companies out there, please mine more nickel.” And in another tweet, ”Wherever you are in the world, please mine more nickel and go for efficiency, obviously environmentally-friendly nickel mining at high volume. Tesla will give you a giant contract for a long period of time, if you mine nickel efficiently and in an environmentally sensitive way.” </p> <p>As demand for nickel grows the price will continue to rise as the supply gets scarce. In the last year alone nickel prices have gone from 5.01USD/lb to a high of 8.93USD/lb. This increased price for nickel can only bode well for KWG and Noront. </p> <p>Just recently, Noront Resources landed a new strategic partner in Wyloo Metals, the mining division of Tattarang, one of Australia’s largest private investment groups. Wyloo was looking to make some strategic investments outside of Western Australia, particularly in nickel. In looking at investments for a ‘decarbonized’ future, Wyloo is on a global hunt for nickel, lithium and all the metals they think will be important in a low carbon future, particularly in the electric vehicle battery space. This investment reflects the long-term collaborative strategy to support the discovery and development of the next generation of mines required to meet the growing demand of critical materials needed to power the decarbonization of the global economy. Wyloo also has a good reputation in dealing well and honestly with the indigenous populations in Western Australia. They will be a great asset in continued negotiations with First Nations people and help facilitate sustainable mining operations in the Ring of Fire. </p> <p>It’s clear to me there is a lot of value in these companies at such a low share price. With KWG building a railroad and Noront building a road, strategic partnerships can be made between both companies. It may be very likely that KWG could be a takeover target by Noront at some point in the future. But for now it may be beneficial for both companies to develop the required infrastructure they will both need to thrive in the Ring of Fire. </p> <p>To me it seems like investing in these companies is a no brainer and sure to payoff in the future. Am I missing something? Why would someone pay $100,000 for a bitcoin when you can have a share of KWG for 3 cents and Noront for 30 cents? </p> <p>References: </p> <p><a href="https://www.thesudburystar.com/news/local-news/column-stalled-ring-of-fire-worth-more-than-117-billion">https://www.thesudburystar.com/news/local-news/column-stalled-ring-of-fire-worth-more-than-117-billion</a></p> <p><a href="https://www.northernontariobusiness.com/industry-news/mining/a-road-to-the-ring-of-fire-is-everything-railway-not-so-much-3449081">https://www.northernontariobusiness.com/industry-news/mining/a-road-to-the-ring-of-fire-is-everything-railway-not-so-much-3449081</a></p> <p><a href="https://www.thesudburystar.com/news/local-news/kwg-forging-ahead-with-ring-of-fire-railroad">https://www.thesudburystar.com/news/local-news/kwg-forging-ahead-with-ring-of-fire-railroad</a></p> <p><a href="https://www.thestar.com/news/canada/2021/02/23/china-europe-winning-ev-battery-arms-race-house-committee-told.html">https://www.thestar.com/news/canada/2021/02/23/china-europe-winning-ev-battery-arms-race-house-committee-told.html</a></p> <p><a href="https://canada.autonews.com/electric-vehicles/canada-nickel-held-talks-us-government-supplying-metal-ev-batteries">https://canada.autonews.com/electric-vehicles/canada-nickel-held-talks-us-government-supplying-metal-ev-batteries</a></p> <p><a href="http://www.bnnbloomberg.ca/elon-musk-is-going-to-have-a-hard-time-finding-clean-nickel-1.1483442">http://www.bnnbloomberg.ca/elon-musk-is-going-to-have-a-hard-time-finding-clean-nickel-1.1483442</a></p> <p><a href="http://www.mining.com%5C*%5C*%5C%5D(http://www.mining.com/)%5C%5B%5C*%5C*htt...-on-mining">http://www.mining.com\*\*\](http://www.mining.com/)\[\*\*https://sdg.iisd.org/news/world-bank-warns-against-impacts-of-low-carbon-technologies-on-mining</a></p> <p><a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/24/fact-sheet-securing-americas-critical-supply-chains/">https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/24/fact-sheet-securing-americas-critical-supply-chains/</a></p> <p><a href="https://www.bnnbloomberg.ca/why-the-future-is-bright-for-nickel-exploration-1.1562606">https://www.bnnbloomberg.ca/why-the-future-is-bright-for-nickel-exploration-1.1562606</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Mikeylikesit_2020"> /u/Mikeylikesit_2020 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/lsvtm5/i_believe_kwg_resources_inc_cnsxkwg_and_noront/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/lsvtm5/i_believe_kwg_resources_inc_cnsxkwg_and_noront/">[comments]</a></span>Kind Regards R