Latest Updates
As we move deeper into the fourth quarter of what has been a most tumultuous year, we thought it would be a good idea to highlight how the Momentum Letter’s top-profiled companies are faring in this difficult business climate and provide any updates on noteworthy news. All three of our top companies—Trillium Gold Mines Inc. (TSX.V: TGM; OTC: TGLDF), Greenlane Renewables Inc. (TSX-V:GRN), and VSBLTY Groupe Technologies (CNX: VSBY; OTC: VSBGF)—continue to execute their business plans more or less in line with how we characterized them in earlier articles.
GRN [+28%] and VSBY [-20%] continue to build their businesses and increase revenues on a pace similar to many traditional microcap plays that should ultimately generate great returns. TGM [+96%], which has been actively drilling and conducting other exploration operations with a goal of quickly proving the projected extent of their gold reserves, remains a more near-term microcap play, with the share price poised to pop with the release of more positive drilling assays and/or other economic and political catalysts. Perhaps needless to say, but The Momentum Letter remains bullish on all three companies, but keeps the tightest attention on Trillium Gold, as its share price could soar at any time.
Trillium Gold Confirms High-Grade Gold in Under-Explored Area
In the wake of a news-filled summer, Trillium Gold this week announced confirmation of high-grade gold mineralization in an historically under-explored section of its flagship Newman Todd property. In an October 6th announcement, the company reported that assay results from the first four holes of its renewed drill program at Newman Todd confirmed high-grade mineralization over significant widths. This includes one hole that produced 15.41 grams per ton over 7 metres, as well as 8.63 grams per ton over 6.5 metres in another hole. The early success of these findings prior to the receipt of assays from the remaining five holes, provided enough evidence to restart drilling, which is expected to commence soon.
The positive assay results provide the first support for the company’s theory that parallel veins of undiscovered gold exist along veins that were historically productive. TGM CEO Russell Starr said, “These initial drill intersections at the Newman Todd Zone are highly encouraging. The potential for Newman Todd to host additional high-grade mineralization is very exciting given we are surrounded by several producing and past-producing mines in one of the most prolific gold camps located in Red Lake (and the world). By drilling perpendicular to, and in the opposite direction from the majority of historical drilling, we have intersected meaningful high-grade mineralization over substantial widths, a major success for Trillium shareholders.”
Company managers, as well as we here at the Momentum Letter, look forward to release of assay results from the other five holes as well as any drilling results from recently commenced drilling at the adjacent Rivard property, as well as any initial findings from its recently acquired Gold Centre property.
VSBLTY Signs Five New Deals, Reports Healthy Second Quarter
We reported in June that VSBLTY Groupe Tech is a microcap company with a software as a service (SaaS) business that will likely put a smile on investors’ faces. Well, investors have more to smile about now, as the company reported a healthy second quarter and signed five new deals since that article. The company reported a 22.8 percent quarter over quarter rise in revenues in early July, and followed that up with an announced three-year, $1.36 million deal with digital strategy and content creation agency Syntect to add VSBLYT’s DataCaptor systems to 2,200 airport digital signs. The company then followed up with the signing of a strategic alliance with over-the-top service provider company Teralight to jointly provide advanced video surveillance applications with advanced analytics to cities in Eastern Europe, the Middle East, Africa, and Southeast Asia.
In August, VSBLTY and its Mexican partner, Retailigent Media, signed a contract to provide advanced audience analytics and customer engagement technology to a Mexican pet store chain. Initial installations will be conducted in 10 locations, but VSBLTY management expects this to expand to 85. The company and its South African partner, Onyx-Cognivas, signed a five-year agreement with a chain of South African fuel/convenience stores to install VisionCaptor and DataCaptor software in 300 retail locations. And, last, but perhaps not least, the company this week signed a partnership agreement with KIOSK Information Systems to develop a thermal screening solution for KIOSK’s entry series screeners that are used around the world to provide employee check-in and guest and visitor monitoring.
All of these deals and partnerships are slowly but surely boosting revenues, yet the wider investment world hasn’t yet taken notice, given that it’s trading at a price to earnings ratio of just 1.31. Third quarter earnings should be interesting, and with another significant jump in revenues perhaps more investors will take notice.
Greenlane Renewables Signs $7.7 million Contract, Reports Stellar Earnings
Greenlane Renewables has also been busy executing on their business strategy since we last wrote about the company in July. Unlike VSBY, though, investors seemed to have noticed, as the share price has climbed about 50% over the past two months.
Shortly after we published our GRN profile, the company announced the final signing of a joint venture agreement with the SWEN Impact Fund for Transition to provide biogas upgrading as a service (UasS) to developers and owners of renewable natural gas projects throughout Europe. As we noted in July, this agreement should produce significant future growth. Closer to home, the company most recently signed a $7.7 million contract to upgrade a multi-site dairy farm project in Florida to Greenlane’s pressure swing adsorption biogas systems.
GRN’’s business execution success was also highlighted by the release of its second quarter earnings, which included $4.2 million in revenues, which represented a 45 percent increase over the first quarter revenues. Perhaps more impressive, though, the company also reported a sales order backlog of $41.9 million, a 159 percent increase over the $16.2 million backlog reported at year’s end 2019. That backlog money will enter the revenue stream soon and could easily keep growing given the company’s sales pipeline (project bids) value of $694 million.
Momentum Letter Pleased by Company’s Success, Adding More Soon
We are heartened by the successes these companies have achieved in such a short time and remain confident that this marks the beginning of expanding business execution success (and increasing revenues) for all three. We look forward to continued monitoring of their success and in soon adding to our list of top-profiled companies.
