NexGen and Canadian Premium Sand Give Us Good News
I’m fresh off a trip up to the mountains for a break. There’s nothing like a couple-hour tube ride down a mountain stream to regain some perspective.
We visited the area where Georgia, Tennessee, and North Carolina all come together. It ranges from rolling hills to low mountains. Our rental house was down a long gravel road that switched back up a ravine lined with giant evergreens.
We felt remote, and it supplied a well-needed recharge.
Even better, when I got home, I found that we had some good news from two of our recommendations.
NexGen Energy (NYSE: NXE) Moves Forward
On July 12, the Canadian Nuclear Safety Commission (CNSC) accepted a draft environmental impact statement (EIS) for NexGen’s Rook 1 project. That’s a big hurdle.
The EIS is a collection of reports that document NexGen’s environmental assessments for the future uranium mine. The local Saskatchewan Ministry of Environment will use the EIS to evaluate the environmental, social, and human health effects of the project.
Now, the CNSC will coordinate a technical and public review of the draft EIS. Here’s how NexGen CEO Leigh Curyer put it:
“The CNSC’s acceptance of the Rook 1 Project’s draft EIS is a significant step…
“NexGen’s approach to all aspects of the EIS compilation and completion with respect to inclusive Indigenous and community engagement, incorporating elite environmental mine designs and its transparent engagement with regulators and governments is a credit to the team and community stakeholders.“
You can see a copy of NexGen’s EIS here. If you haven’t read our report on NexGen, you can find it here.
Canadian Premium Sand (TSXV: CPS) Gets a High-Profile Preliminary Deal
On July 21, Canadian Premium Sand signed a memorandum of understanding (MOU) with Hanwha Solutions. The MOU says that Hanwha will come to CPS for patterned solar glass in the future.
This is a great signal for CPS as a newcomer in the solar industry. Hanwha is the largest solar-panel manufacturer in North America. Through its Qcells subsidiary, Hanwha plans to build a comprehensive, fully domestic, low-carbon supply chain.
On May 11, Qcells announced plans to nearly double the total production capacity at its Dalton, Georgia factory. That expansion will give Qcells about 35% of the current North American solar-module production.
CPS President Glenn Leroux said:
“Following a tour of our planned facilities in Manitoba and meetings in Calgary with members of Hanwha’s management team in June of 2022, we are delighted to enter into an MOU with Hanwha regarding long-term supply of our low-carbon, patterned solar glass. Hanwha’s North American solar glass demand requirements of over 3 gigawatts of module manufacturing represents over 80% of our planned Phase 1 production capacity.”
Hanwha issued a statement as well:
“We are excited to continue our discussion with CPS to form a future partnership with respect to long-term stable supply of patterned solar glass for our current and planned production capacity. As Qcells expands its manufacturing footprint in North America, we see tremendous value in securing supply from a trusted partner that is proximal to our operations. Additionally, the integrated nature of CPS’ operation with its wholly-owned sand resource and the use of renewable hydro-electricity in its manufacturing process offers excellent alignment with our low-carbon objectives.”
The truth of the matter is that I doubt CPS will exist as a public company for much longer. It has the right sand, it’s building the manufacturing plant, and its stock is incredibly cheap. A company like Hanwha could simply bolt CPS onto its existing company with minimal difficulty. That would be good news for our recommendation in the short term – the stock of acquired companies tends to rise .
If you haven’t read our report on CPS, you can find it here.
For the good,
Matt Badiali
