Sometimes Luck is Best - Ramp Metals RAMP
and Zefiro ZEFI
Welcome to all the new, smart, savvy and contrarian investors that have joined this substack. I put this out to my paid list on Tuesday AM before market and looks like it still has momentum.
This is a brand new junior that was just born in March when CPC, Anacott Acquisition acquired Ramp Metals as it's qualifying transaction. They raised almost $1.2 million as part of the acquisition and the stock started trading late March at under $0.20.
Ramp Metals - - - TSXV:RAMP - - - - Recent Price - $0.47
Shares outstanding 32.4 million
About 21 million shares are in escrow as part of the qualifying transaction, so the float is small.
Interesting is the company was started with a focus on battery type metals in Saskatchewan. However as luck would have it, they make a very high grade gold discovery on their 1st drill hole.
The management team is quite young with most having around 10 + years experience, but they do have some experienced advisors. Call it beginners luck, but I will say that high grade grass root gold discoveries are very rare on the first drill hole. Don't argue, just go with that luck.
June 17th Ramp Metals announced they found a new high-grade gold discovery in Saskatchewan. The Company has received partial results from its winter 2024 drill program at the Rottenstone SW property. Drill hole Ranger-01 intercepted multiple zones of gold mineralization, including 73.55 g/t Au and 19.50 g/t Ag over 7.5 meters from 227 to 234.5m.
It is important to note that Ramp Metals has only received assay results from 153.5-171.5 m & 174.5-314m for Ranger-01 and is currently awaiting results from the top of the hole to 153.5m & the 171.5-174.5m interval.
It is strange that one short interval (171.5 to 174.5m) is not reported yet. My guess is that assays were done again because it was over limit. Well let's hope so!
Ramp has two properties in Saskatchewan, the Rottenstone SW and PLD properties. They have a 100% interest in both, subject to a 2% NSR. The Rottenstone SW property had a past producing nickle, copper platinum/gold mine, so this type of mineralization is what one would expect, not a high grade gold discovery. The Rottenstone Mine produced 40,000 tons of high-grade nickel-copper-platinum group elements as well as gold (Ni-Cu-PGE +Au) ore grading 3.28% Ni, 1.83% Cu and 9.63 g/t (Pt-Pd-Au).
The Rottenstone property is 17,285 hectares and is also adjacent to Fathom Nickel CSE:FNI that raised $11.15M backed by Echelon and Sprott Capital.
A total of 1,180 metres were drilled in four diamond drill holes at Rottenstone SW. Three of four holes intersected mafic-ultramafic lithologies and Pyrrhotite mineralization. Mineralization styles ranged from disseminated to semi-massive. Only one hole was drilled on the Ranger target and the other 3 holes were on the Rogue target as shown in the graphic below. I would not expect as good results at the Rogue target, but that said, it is grass roots exploration, so maybe luck strikes twice.
Management
CEO Jordan Black is a Geotechnical Engineer, with 12 years of consulting engineering experience. Jordan has been a geotechnical engineer for various infrastructure, renewable energy and mining projects and has provided leadership, design solutions, and project management. Jordan was previously Vice President of Business Development at GoldSpot Discoveries Inc. and a Senior Geotechnical Engineer at WSP Canada. GoldSpot is a technology company that leverages artificial intelligence to reduce capital risk while working on increasing success rates in resource exploration.
VP Operations & Senior Geologist Brett Williams is a professional geologist with experience as a mine geologist in both open pit and underground mining and also as an exploration geologist in diamond, base metal, gold, and uranium for Rio Tinto and SSR Mining. He holds a B.Sc. in Geology and Diploma of Business Administration from the University of Regina. Registered as a member of the Professional Engineers and Geoscientists of Saskatchewan.
Garrett Smith VP Exploration holds a B.Sc. in Geology from the University of Regina. He has spent his career working on projects across western Canada in a variety of commodities. His broad experience ranges from greenfields mapping and exploration, to on-site drill management. With a passion for true exploration, he has spent the last few years building a portfolio of base metal projects throughout northern Saskatchewan
Prit Singh Director is a capital markets professional and currently the CEO of Thesis Capital, an advisory firm providing high growth companies with assistance on fundraising, go public transactions on the Canadian markets and investor relations support. Throughout his career Prit has worked with over 50 issuers and has advised/raised in excess of $100M in capital for companies in a number of different emerging sectors. Prior to founding Thesis, Prit has spent time working in investment banking & wealth management where he developed long lasting relationships with both the buy side and sell side communities in Canada. Prit holds a BBA from Brock University where is specialized in finance.
Conclusion
There are more results to come from the Ranger 1 drill hole that could drive the stock higher. This is a very high grade discovery so really no telling how much higher the stock goes near term.
Last financials show $583,694 cash as of March 31, 2024 so the company will have to do another financing and the discovery and stock movement is the perfect timing. It is hard to say what price this financing will be and how the stock reacts to such an announcement. From their $0.20 financing there are 2.987 million $0.35 warrants. These could get exercised to raise financing for more drilling. If they all got exercised that's a potential of just over $1 million in funds. Drilling must be done with air support (helicopter) so this adds to drilling costs.
At $0.47 the market cap is just around $15 million so this has potential to go a lot higher as this discovery progresses. The fact they made this discovery on the first drill program while there is a low number of shares out, means there can be way less share dilution adding potential for much higher share prices. Most shares are in escrow, but 5% or about 1 million became free trading when the transaction was completed in March. This means there is only about 12 million free trading shares and any that come out from the almost 3 million 2 year warrants, if exercised.
I believe it would be wise to do a financing here, because this discovery is going to require a lot of drilling to prove out.
The chart offers little insight because of the short trading history. In situations like this, I find the best strategy is to buy half your intending position now and buy the other half if the stock pulls back, maybe on a finace announcement. If the stock keeps running higher, you have a position and if it pulls back, you can average down your buy price.
ZEFIRO METHANE - - - Cboe: ZEFI, Frankfurt: Y6B - - - Recent Price - $1.75
Entry Price - $1.60 - - - - - - Opinion - buy
ZEFI released its first Letter from the CEO as a public company, following the release of its inaugural quarterly earnings report, reflecting ZEFI’s record quarter revenue of USD $8.5 million and a gross profit of USD $2.7 million (approx. 31% gross profit margin). The Letter from the CEO was sent out to Zefiro’s newsletter subscribers by email, and is also available for viewing on the Zefiro website at the following link: zefiromethane.com/ceo-letter-june-2024-english.
I suggest reading this letter, it's excellent background and will help you better understand the company, below is just a portion of the shareholder letter.
Penned by Zefiro Founder and CEO Talal Debs PhD, the Letter from the CEO outlines the beginning of the Company’s journey, dating back to the year 2008 when the carbon trading desk at J.P. Morgan was being established by team members to include Dr. Debs, as well as Zefiro Chief Commercial Officer Tina Reine, and Zefiro Board of Directors member Catherine Flax. Dr. Debs then explained the way in which the carbon markets and the environmental services industry evolved in the years to come, ideally situating the market for Zefiro’s business model. This led to the founding of Zefiro with several key business accomplishments even before the Company had its Initial Public Offering (“IPO”) in April 2024. Debs also highlights in the letter how he along with other founding team members have invested personal capital into Zefiro during each and every financing round, in addition to purchases of ZEFI shares on the open market, as well as a recent exercise of over 637,000 warrants done by Debs himself.
All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.