No announcement yet.

Ahead of the Herd Newsletter - 2018 Issue Six


Saturday February 17th

This week’s letter outlines 5 reasons why metals and minerals might be entering another supercycle. Nothing, and I mean nothing gives an investor leverage to rising metal prices like owning the shares of a junior resource company.

For the first time in over half a century both developing and developed countries are doing well. Economies across the globe are growing at a significant pace. This is opening up investment ideas in other sectors. 2018 is going to be a very good year.

Also in this week’s letter are interesting and important updates from four of the companies we follow:

  1. Cypress Development Corp TSX.V:CYP
  2. Aben Resources TSX.V:ABN
  3. DMG Blockchain Solutions TSX.V:DMGI
  4. Sernova Corp TSX.V:SVA

Coming soon - Ahead of the Herd on Twitter and Linkedin.

5 reasons why commodities are the place to be in 2018

Richard (Rick) Mills

Ahead of the Herd Newsletter - 2018 Issue Five


Tuesday February 13th

While Vancouver-based DMG Blockchain Technologies (TSX.V:DMGI) started out mining bitcoin in British Columbia, the just listed blockchain startup had greater aspirations. Over the past year DMG has evolved into a full-service blockchain company that offers superb diversification in the form of four revenue streams: bitcoin mining, “mining as a service” (MAAS), forensics & data analysis, and blockchain software management.

“DMG is a fully diversified bitcoin and blockchain company. We have large industrial bitcoin mining, we have numerous platforms being built using blockchain technologies and smart contracts, and we have a forensics division that ensures that consumers can trust our brand, and that clients can trust our brand.” CEO Dan Reitzik

DMG Blockchain Technologies has an ambitious goal: to become domain experts in supply chain verticals across many industries, which could include agriculture, pharmaceuticals, energy, precious metals, transportation - you name it. The way they’re going to do it is through a unique business model whose main value proposition is a diversity of revenue streams anchored by a very experienced management team capable of pulling off a multi-layered approach to blockchain.

I like DMG for its choice of four revenue platforms, and its scalability.

DMG Blockchain Technologies (TSX.V:DMGI) Is Taking Blockchain Mainstream


Ahead of the Herd Newsletter - 2018 Issue Four


Saturday February 10th

This week’s newsletter has two feature articles and a short teaser about a new, soon starting to trade, blockchain/bitcoin company - Blockchain Idea coming!

Our first article in this week’s newsletter is titled Regenerative medicine: Healing the body by healing itself.’

Our second article is ‘US clinical trial puts Sernova one step closer to diabetes cure.’


Ahead of the Herd Newsletter - 2018 Issue Four


Richard (Rick) Mills

Ahead of the Herd Newsletter - 2018 Issue Three


Friday February 9th

Cielo Waste Solutions Received Important Permitting News

The pullback earlier this week in the stock markets did not spare Cielo Waste Solutions (CSE:CMC), but it was brief. Hopefully sharp CMC shareholders took advantage of the opportunity to load up on more shares because the stock jumped on Thursday by 13.7%!

There’s more good news. Cielo just received a letter from the Alberta Government stating that the permit application for its Aldersyde/High River property to produce high-grade renewable diesel is moving forward nicely.

“The Director considers the application to be complete for the purpose of public consultation,” reads the letter from the Department of Environment and Parks. Cielo requires the permit to operate its first continuous flow renewable diesel refinery.

“We are extremely pleased to have received our acknowledgement of completeness as to our EPEA permit application. It is confirmation that this critical step is now almost behind us and the anticipated timing for receiving our permit is on schedule,” said Don Allan, President and CEO. “This will facilitate us being able to commission our refinery and place it on-stream by late spring. We now look forward to continuing our progress and reporting it to our investors and stakeholders.”

This is a major catalyst that pushes Cielo one step closer towards becoming one of the most revolutionary plays the Venture exchange has ever seen given what they’re trying to tackle.

Cielo's renewable or “green” diesel can be made by running any fibrous material through a catalyst, whose ingredients are proprietary. Eligible materials include landfill waste, plastics, organics like table scraps or lawn clippings, cardboard, sawdust and tires.

Cielo Waste Solutions Corp.: Exclusive Renewable Diesel Technology Turns Trash Into Cash

In Canada the Renewable Fuels Regulations, in place since 2010, require fuel producers and importers to have an average renewable fuel content of at least 2% based on the volume of diesel fuel and heating distillate oil that they produce or import into Canada with the goal of reducing Canada's greenhouse gas emissions by 17 percent from 2005 levels by 2020. Many Provinces have also added their own mandated blending ratios.

The demand for biodiesel in Canada is estimated at 600 million litres a year.

For its product Cielo is initially targeting Alberta gasoline and diesel refiners, of which there are currently only about half a dozen.

The company forecasts it will be able to charge around 25 percent more for its renewable diesel than traditional biodiesel, due to it being higher grade, usable year round, and has a longer shelf life due to its zero water content.

Up to last summer Cielo had been running a demonstration plant in Red Deer, AB. That demonstration plant has been disassembled and relocated to High River, AB. It’s being retrofitted into a 350 liter an hour continuous flow refinery that will be the Company’s first commercially viable plant, with another to follow. The second plant will be designed to produce renewable diesel at a rate of 1,800 liters per hour, a 500% increase from the Company’s proof of concept retrofitted demonstration plant..

According to a short note I received from Michael Yeung, VP Business Development & Capital Markets:

We are not sitting still and our main focus is to generate long term returns for our shareholders.

We are currently focusing on the things we can control such as:

  • We are continuing to focus on getting into production on schedule. Our fabrication is working around the clock.
  • Our engineers are continuously "dotting the "I"s and crossing the "t"s to ensure a smooth on-stream
  • Our compliance and permitting team is working diligently with the government to move our approvals forward and pushing as hard as they can.  We believe we should hear comments back from the government over the next 4 to 6 weeks. This isn’t too far away. Permits are on schedule and keeps us on track for a late spring on-stream date.
  • Our capital markets team are working to get in front of existing and new investors to spread the story. We were just recently in Vancouver. We will be in Toronto February 22nd and February 23rd. So if you are in downtown Toronto on either dates let me know if you would like to sit down and hear our story or get an update.
  • We believe we are materially undervalued and only months away from running our first continuous refinery - a technology that could be worth billions.”

Despite decades of educating North Americans on the benefits of recycling, plus cutting-edge technologies that sort and recycle everything from tires to table scraps, billions of tonnes of garbage continue to be landfilled every year.

According to Natural Resources Canada, in a lifetime the average North American will throw away 600 times his or her weight in garbage, meaning a 150-pound adult will heave 90,000 pounds of trash into the dumpster from birth to death.

It's estimated that globally, solid-waste generation will triple to 11 million tons a day by the end of this century – in spite of the fact that we are running out of landfill space, especially in land-constrained places like Japan and Europe.

The World’s Garbage is a huge problem, made worse by China’s recent decision to ban imports of recyclables. But Cielo has a solution, and it could be BIG.

I expect a lot more news and activity in the market as they move closer towards launching their next phase of development so make sure you stay tuned.

I’ve got Ceilo Waste Systems (CSE:CMC) on my radar screen. Do you?

If not, maybe you should.

Richard (Rick) Mills

Ahead of the Herd Newsletter - 2018 Issue Two


Monday, February 5th

Advantagewon With Bread and Butter

The rule of contrarian investing is key, and should never be forgotten by serious resource investors. When a sector looks to be down and out, that is the time to consider taking positions. Ahead of the Herd recently identified a very interesting oil company that has developed an intriguing business model that flies in the face of what traditional oil and gas development companies do. Moreover, it is at odds, in a good way, with the big shale oil producers that have received so much attention in the press about how shale is going to pave the way to US energy independence and overtake Russia as the globe’s dominant oil producer. While that is still up for debate, what is beyond dispute is the simplicity of the company’s business model, and the investor upside that could easily accrue if its strategy and production plan stay on track in 2018.

Rick Mills

Ahead of the Herd

Ahead of the Herd Newsletter - 2018 Issue One


Ahead of the Herd Newsletter - 2018 Issue One

Saturday February 3rd

This week’s newsletter has two feature articles.

The first article is titled ‘The World’s Garbage.’ The first link in the article is a must read, they are all good reads, but this one is special.

In August 2017 China told the World Trade Organization (WTO) that by the end of the year it will no longer accept 24 categories of solid waste as part of a government campaign against “foreign garbage.” This is an extremely big deal because the ban is creating a huge problem for countries that produce an excess of recycled waste they need to get rid of.

I think can point them in the direction of a solution.

Our second article is ‘1 2 3, Aben Is a Three Trick Pony Ride.’

It’s common for a junior gold company to have just one strong property worthy of raising funds for an exploration program, we call these ‘a one trick pony.’ Unfortunately miss on the one project and the junior goes to sleep while investors flee. Having three properties that can all be considered stand-alone projects of which any two could have easily been spun out into separate companies is rare.

Aben’s Chico Gold Project in northern Saskatchewan is a February drill ready gold play. Many discoveries, all deserving follow up work have been made on ABN’s British Columbia’s Golden Triangle Forest Kerr Project. The company’s Justin Project, a classic intrusion-related gold system, despite not being ABN’s primary or even secondary focus of exploration effort already has two exciting discoveries with the potential for more.

Aben is a true three trick pony for us investors to ride.

Rick Mills

Ahead of the Herd