What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, we will be going over a Canadian penny stock that I have backed for a while now and that I still hold. Yesterday it saw some long awaited news that many investors were waiting for. I will of course be talking about a metal and mining company, Manganese X, leave a like if you enjoy. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
The Canadian penny stock that I will be talking about is Manganese X (ticker symbol MN.V). The stock jumped close to 24% yesterday from 38 cents to 47 cents. This was because the company released a long awaited update about their PEA which stands for preliminary economic assessment for its Battery Hill Manganese mining project. For those not familiar, a PEA is basically a monetary evaluation of its property. This is usually a common process of mining companies that own lots of land, since they want to officially showcase and present to investors the worth their property has. The goal of this is for the company to see a potential spike in volume or price in its stock, and it’s usually done to give investors more confidence. Before diving into the PEA update, for new Canadian investors out there who are not familiar with MN, let’s go over what the company does. Manganese dioxide is a key element in the manufacture of the most promising types of Lithium Ion batteries and these are the types of batteries that are currently and in the future will power the world. They are the most promising because of their superior storage capacity, safety and cost. Manganese demand will rise as it is increasingly picked for use in the rechargeable batteries used to power consumer electronics, electric and hybrid electric vehicles and the battery systems that store electricity harvested from clean energy produced, for example, by solar and wind. Manganese X’s mission is to advance its Battery Hill project into production, with the intent of supplying value-added materials to the lithium-ion battery and other alternative energy industries. The Company is also striving to achieve new environment-friendly more efficient methodologies, while processing manganese at a lower competitive cost. The Company is the only publicly traded manganese company in North America moving rapidly towards a commercial manganese deposit.
Lets go over the most recent news that Manganese X released. So as they mentioned in the news release, they state that a report called “Market Outlook for High-Purity Manganese Products” will be produced in the next few days and will be followed by the official PEA in the near term. In addition to the Report’s focus on the North America market, it will include information on world markets. As a result of the Report, the PEA will be a more accurate reflection of the recent substantial price increase and will take into consideration the increase in demand for high-purity manganese products. A major area of interest for investors has been the use of manganese in electric vehicle (EV) batteries. That said, it is important to note that not all manganese can be used in EV batteries — only high-purity specialty products can be used, like for example EMM which is electrolytic manganese metal. Anyways, the main update that MN released is the expected short term release of that one report I mentioned and the PEA. This is what the CEO of Manganese X, Martin Kepman, had to say : “We are extremely excited to have the highly acclaimed Wood PLC conducting our PEA on the Battery Hill project located near Woodstock, New Brunswick, and we are also working very closely with our metallurgical team at Kemetco Research Inc. We anticipate this technical study will validate our new cost-saving metallurgical processes to economically produce a competitive, safe, sustainable, high grade, EV compliant manganese product. With the demand for the creation of a USA-Canada supply chain lessening the need for foreign imports, along with the continuing of EV and back up energy storage units utilizing manganese, we are very optimistic for the future.” At one time, manganese was known as the “forgotten mineral” but these days, it’s certainly getting a lot of attention. The recent announcement of Stellantis’ $5 billion battery cell plant planned for Windsor, Ontario, is expected to increase interest in manganese. Also, on March 22nd, Tesla’s Elon Musk commented that there was “interesting potential for manganese”. We are all aware that Tesla has been exploring using more manganese in its battery cells.
My thoughts about the company moving forward are good. MN is really in its early stages and probably won’t achieve its full potential until 3 to 5 years, but in the short term, with an upcoming PEA to be released, it is a good penny stock to trade. It is still early morning right now, and market is not open yet for the second day of trading after this news release, but I won’t be surprised if there is a bit of a pull back and some selling to happen, but many investors know that in the long term this stock could potentially jump on some high profile partnership or something along those lines, which I am banking on.
Hope you guys enjoyed this update about Manganese X, a Canadian penny stock with a good amount of potential. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!