The Daily Buzz: Interesting Breakouts Now Underway (SHMP, VNNHF, LMCNF)

admin - August 28, 2019

NaturalShrimp Inc (OTCMKTS:SHMP)is looking more and more like an interesting technical prospect, breaking out to start the week above its rising 200-day simple moving average. The stock is now up over 100% since its lows earlier this month.

Helping to add color to the story, the company just announced that it has negotiated a new equity credit line of $11,000,000.According to the release, the $11,000,000 equity line, being executed with GHS Investments, LLC, allows the Company to access additional equity capital from GHS in $500,000 tranches.

Commenting on the financing, NaturalShrimp CFO, William J. Delgado, noted, “We continue to work and expand on our available capital in anticipation of our expansion in La Coste, TX and elsewhere. This brings our total available capital to approximately $16,000,000. We will use the funds diligently and only where our expected return will outweigh the capital expenditure.”

NaturalShrimp Inc (OTCMKTS:SHMP) bills itself as a global shrimp farming company that is developing a technology to produce fresh, gourmet-grade shrimp reliably and economically in an indoor, re-circulating, saltwater facility.

Its eco-friendly, bio-secure design does not rely on ocean water, but rather recreates the natural ocean environment allowing for high-density production which can be replicated anywhere in the world.

NaturalShrimp Inc (OTCMKTS:SHMP) had no reported sales in its last quarterly financial data. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($818K against $4.8M, respectively).


Belo Sun Mining Corp (OTCMKTS:VNNHF)
is a recent explosion higher on the OTC in the gold mining space in Brazil. Gold has been quite a popular asset as the Fed pivots from tightening to easing and 75% of the world’s sovereign debt moves into negative yield territory.

To add some further color, the company recently announced that a three judge panel decision by the Court of Appeals of the Federal Justice in Brasília has ruled unanimously that SEMAS remains the competent authority for the environmental permitting of the Volta Grande Gold Project.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 53% in that timeframe.

Belo Sun Mining Corp (OTCMKTS:VNNHF) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($33.4M against $4.2M).

According to the release, the ruling confirms that the Construction License granted in 2017 by SEMAS and the Environmental License granted in 2014 by SEMAS for the Volta Grande Gold Project remain valid, subject to the completion of the Indigenous Study prepared following the protocols prescribed by FUNAI, including primary data collection and consultations with the local Indigenous communities.

Belo Sun Mining operates as a gold exploration and development company in Brazil.

Its flagship project is the Volta Grande Gold project consisting of 4 mining concession applications, 56 exploration permits, 17 exploration permits extension submitted, and 8 applications covering a total area of 165,443 hectares located in the northern region of Pará State, Brazil.

The company also holds 100% interest in Patrocinio Gold Project, which is located in the Tapajos gold province in the Pará State of northern Brazil; and in the Rainbow Alexandrite Project, which is located north of the city of Brasilia.

 


Leagold Mining Corp (OTCMKTS:LMCNF)
is another South American gold play that has been red hot. It’s actually headquartered in Canada, but clearly presents access to the Mexican and Brazilian gold mining markets.

The company recently announced Q2 and H1 2019 financial and operating results, with consolidated gold production for the six months ended June 30, 2019 of 197,234 oz at AISC of $951/oz sold, resulting in an AISC margin of $65.9 million. Six-month sales of 201,724 oz generated H1 2019 revenue of $258.3 million, earnings from mine operations of $44.2 million, and EBITDA of $67.3 million

Leagold Mining Corp (OTCMKTS:LMCNF) bills itself as a company that engages in the acquisition of gold mining properties and other development projects in Latin America.

It holds interest in the Los Filos Mine located in Guerrero State, Mexico; and in the RDM, Fazenda, and Pilar mines in Brazil. The company was formerly known as HTI Ventures Corp. and changed its name to Leagold Mining Corporation in August 2016. Leagold Mining Corporation was incorporated in 1981 and is headquartered in Vancouver, Canada.

The stock is breaking out in recent action, moving above its recent longer-term range highs. The move has come on huge volume on a relative basis.

LMCNF pulled in sales of $160.8M in its last reported quarterly financials, representing top line growth of 43.3%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($68.9M against $153.8M, respectively).

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