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The Tide is Turning

The time, we have been waiting for, has arrived. Both fundamentally and technically, a major change of trend is poised to start now, also thanks to today´s announcement: To date, MGX Minerals Inc. and its engineering partner, PurLucid Treatment Solutions Inc., have completed commercial-scale trials with multiple oilfield operators and are now preparing to deploy systems in Alberta, the heartland of Canada´s oil and gas industry. 

While the market expects the deployment start of 2 systems in June, the emerging producer today springs a surprise on the market by disclosing that contracts for the deployment of 4 systems are already nearing completion. 

The first system is a so-called "petrolithium" plant for the extraction of lithium after a wastewater treatment phase, individually designed and built for an undisclosed "major oil and gas operator in Alberta", MGX today noted, adding: "Sufficient data has been collected to allow for engineering designs specific to the deployment site and PurLucid has already completed fabrication of the combined system." Therefore, the delivery of this system is imminent, remaining "on track and is scheduled for commissioning on site shortly". 

The other 3 systems scheduled for deployment are different kind of wastewater/water/brine treatment systems, which all run under a contract between a consortium including government, oil and gas operator, MGX and PurLucid to receive and treat evaporator blowdown wastewater (“EBD”). As per today´s news: 

"The first system is an EBD treatment system (10 m3/hour) which will take highly concentrated evaporator brine and treat it to a level suitable for reinjection on site.

The second system is a high temperature system that will be installed to treat produced water following oil-water separation. The technology provides superior treatment outcomes when compared to conventional technology and can do so without cooling water first. This will result in significantly less energy use for water treatment and also eliminate the single major operational challenge of a steam assisted gravity drainage (“SAGD”) facility, which is heat exchanger fouling. By eliminating the need for cooling, heat exchangers are also eliminated. The high temperature system will also be used to test the patent-pending combined power generation design. This design will fill the void in electrical capacity as coal is phased out while generating enough steam for a combined heavy oil recovery project. With the high-pressure water treatment and co-gen design facilitated by this treatment approach, heavy oil production will have a lower GHG footprint than conventional oil.

The third system is a larger-scale version (35 m3/hour) of the first system and is intended for deployment to treat one-through steam generator (“OTSG”) boiler blowdown. This blowdown represents the largest water loss at any SAGD facility.

The goal is to create treated water suitable for reuse, saving the majority of water loss in most SAGD projects. The system will also greatly reduce both the complexity and cost for new and expansion SAGD projects while at the same time demonstrating large-scale treatment capabilities suitable for other thermal and industrial wastewaters. The Projects represent significant cost savings for oilfield operators in water handling and revenue for MGX and Purlucid in wastewater treatment with additional opportunity for lithium and mineral recovery."


Furtner information and pictures about PurLucid can be seen in a documentary here.

Bottom Line

Shortly after the commercial deployment of the first system, MGX will be in a position to be allowed to publish further details (e.g. numbers), which in turn will show quite plainly what the market is asking for: Tangible results, immediately followed by the generation of cashflows and the projection of annual revenues. Not later than that, things may move at a very fast pace, globally.

At tomorrow´s event in London, MGX-PurLucid´s technology has been chosen as a finalist for the 2018 S&P Global Platts Metal Breakthrough Solution of the Year Award, so in the next days we may see global media and press coverage showing MGX´s CEO Jared Lazerson celebrating with a black tie and a glamorous award in his hand. In case the award comes just a bit too early for MGX and its upcoming official deployment in Alberta, the chances would be even better for next year´s award, this time backed by a full year of testified financials. See more details here.

At last, there is another great reason to be a shareholder of MGX. All those holding MGX shares in 45 days, on June 29, will be rewarded generously with the payment of a first dividend: Shares of ZincNyx Energy Solutions Inc., which company (wholly owned by MGX) has been proposed to become a standalone public entity to be listed on an exchange. To receive this dividend, all you have to do is hold shares of MGX on the record date. See more details here. The closer this record date (June 29) comes, the more appreciation potential exists for MGX, among others due to the following reason: 

According to Investopedia, any short seller on the record date will have to pay back the dividend out of his own pocket (which is impossible because MGX will still wholly own this private company for some time after the record date): 

"Since that original investor who lent you the stock is no longer an actual shareholder, as the short seller, you are required to make up for any benefits the investor would have received had they actually still owned the stock. In other words, if a company pays a dividend to shareholders, the second investor who bought the shares from the short seller would get the dividend check from the company. But because the original investor is no longer a shareholder of record (since the second investor owns those shares now), then the short seller must pay the dividend out of his or her own pocket."

So instead of getting in trouble, short sellers are inclined to close out their short position by buying shares on the open market. In other words: The clock is ticking and all short sellers are on the hook now, especially when considering the precarious technical share price situation at the very moment.

Technical Perspective: Thrust Imminent


Updated Chart (15 min. delayed): http://schrts.co/vHgP4v

Nanoflotation and Nanofiltration Technology
PurLucid and MGX systems utilize a highly charged Replaceable Skin Layer (RSL™) membrane related to the nanofiltration and High Intensity Froth Flotation (HiFF) system, known as nanoflotation, which collectively have demonstrated performance superiority over other processes typically used to remove contaminants. The technology allows ultra-high temperature water treatment (up to 700°C) at 10-30 times the efficiency of existing ultrafiltration systems and offers numerous environmental benefits, including contaminant removal, mineral recovery, reduced energy demand and smaller footprints. The technology has been chosen as a finalist for the 2018 S&P Global Platts Metal Breakthrough Solution of the Year Award. Winners will be announced at a black-tie celebration on May 17, 2018 at the Marriott Grosvenor Square in London. For more information visit https://gma.platts.com/Finalists/Finalists2018.

About PurLucid
PurLucid’s exclusively licensed and patented nanoflotation technology was designed specifically for oilfield environments. The technology separates impurities from oil and gas wastewater and produces clean water as a final product. This allows for the recycling or controlled release of oilfield wastewater and reduces or eliminates downhole and associated transportation costs. Water handling costs are one of the largest operating costs in the oilfield and oilsands operations today. Learn more at www.purlucid.com. MGX maintains the right to acquire 100% of PurLucid through successive future investments.

Company Details


MGX Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735 
Email: jared@mgxminerals.com
www.mgxminerals.com

Shares Issued & Outstanding: 105,375,277


Chart

Canadian Symbol (CSE): XMG
Current Price: $0.91 CAD (05/15/2018)
Market Capitalization: $96 Million CAD


Chart

German Symbol / WKN (Frankfurt): 1MG / A12E3P
Current Price: €0.619 EUR (05/15/2018)
Market Capitalization: €65 Million EUR 

Previous Coverage

Report #57 “MGX Announces Quadrupling of Power Output of Zinc-Air Fuel Cell Battery“

Report #56 “MGX Sets The Record Date For Its First Dividend“

Report #55 “The First ZincNyx Energy Storage Plant to be Deployed in New York City“

Report #54 “MGX in Final Stages of Commercial Deployment, Second Petrolithium Contract Already in the Making“

Report #53 “MGX-Highbury Accomplish Almost Complete Gasification of Petcoke, Produce High-Grade Vanadium Concentrate“

Report #52 “MGX Set to Alter Lithium Landscape, Partners with Investment Bank Heavyweight Capstone Headwaters“

Report #51 “Congratulations! MGX Nominated in 2 Categories as a Finalist for the S&P Global Platts Metals Awards“

Report #50 “MGX Gets Serious About Magnesium, Engages Hatch for Magnesium Metal Scoping Study“

Report #49 “MGX to Acquire and Commercialize Clean Technology for Extraction of Lithium and Aluminum from Spodumene“

Report #48 “MGX Minerals Issues PEA for a World-Class Magnesium Project in British Columbia“

Report #47 “High-Grade Battery Metals From Dirty Petcoke“

Report #46 “Big Times Ahead For Several Joint Ventures from MGX Minerals“

Report #45 “MGX Partner Broadcasting on US Television“

Report #44 “The Big Rethinking Begins: Multiple Lithium Projects in Chile Test the Rapid Lithium Extraction Technology from MGX“

Report #43 “Global Lithium Dominance? MGX Doubles Performance of Lithium Extraction Filters“

Report #42 “Scores of Tail Winds for MGX becoming a Leader in the New Energy Economy“

Report #41 “MGX Goes Big, Develops Utility-Scale Battery Storage System“

Report #40 “Positioned to Profit from Transition to New Energy Economy“

Report #39 “MGX Assembles Dream Team For California Lithium Strategy“

Report #38 “MGX: The Next GreenTech Energy Giant“

Report #37 “MGX Partners with Highbury Energy to make Petroleum Coke more Clean“

Report #36 “Technological Breakthrough in the Mass Energy Storage Industry“

Report #35 “Eureka! MGX Starts Developing Silica Projects after Acquisition of Mass Storage Battery Technology“

Report #34 “MGX Going Big on Petrolithium: The first large-scale integrated petroleum and lithium project ever developed“

Report #33 “Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources“

Report #32 “Backed by Private and Institutional Heavyweights: MGX cashes up for Lithium Extraction and Exploration“

Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“

Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“

Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“

Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“

Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“

Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“

Report #25 “Hard-Rock Lithium Exposure for MGX“

Report #24 “One of the Largest Initial Oil Estimates in US History“

Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“

Report #22 “Time to bet: Sprott takes a position in MGX“

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“ 

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“ 

Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“ 

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“ 

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and MGX Minerals Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the MGX´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the MGX´s profile on SEDAR at www.sedar.comPlease read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc. Note that neither MGX Minerals Inc. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statememts made herein.

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Rockstone
16.05.2018 11:31:42
Oil field wastewater finds a second life

https://www.expressnews.com/business/eagle-ford-energy/article/Oil-field-wastewater-finds-a-second-life-12893773.php
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COMPANY INFO
Name: MGX Minerals Inc.
Canada Symbol: XMG
Germany Symbol / WKN: 1MG / A12E3P
Shares Issued & Outstanding: 105,375,277
Phone: +1 604 681 7735
Email: jared@mgxminerals.com
Web: www.mgxminerals.com
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