BlockQuarry Corp. (OTC: BLQC) has seen an astonishing surge, with its shares soaring by almost 950% within just a month, rising from November’s lows of $0.016 per share to a high of $0.166 on December 1st, 2023. This exceptional growth has garnered attention within the retail community due to its substantial returns. Amidst this upward trend, the company issued three press releases, complemented by several OTCM filings detailing the company’s quarterly and annual financial reports. Today, an analysis of these releases, filings, and broader market trends will shed light on BLQC’s recent remarkable valuation increase.

Background:

The primary source for comprehensive information about BLQC lies within their website, offering more specific insights compared to their press release ‘about’ sections. Their focus primarily revolves around providing all-in-one eco-friendly crypto mining solutions. This entails offering hosting, mining, energy, expertise, and infrastructure necessary for complete turn-key cryptocurrency mining operations.

BLQC employs a dual cryptocurrency revenue strategy, capitalizing on both mining and hosting income streams. While revenue from internal mining activities fluctuates with specific cryptocurrency prices, their hosting services generate income independently of crypto pricing. This balanced approach ensures steady cash flow growth from operations, regardless of Bitcoin or other cryptocurrency prices.

Although BTC stands as their primary mining target, BLQC appears open to exploring new opportunities in Crypto assets and Blockchain technology. Their Crypto mining operations currently rely on leased renewable energy power generation facilities located in Gaffney, SC, Rutherford, NC, and Mooreshead, NC.

Until March of 2022, the Company also offered management services include managing day-to-day billing and vendor activity for a health care business. Those operations are now classified as discontinued operations.

Market Dynamic:

Bitcoin (BTC) recently soared to a 2023 high, hitting $41,522 due to favorable regulatory shifts and an optimistic market atmosphere. Both the Momentum (10) at 3735.76 and the MACD Level at 1283.69 signal a ‘Buy’ for BTC, indicating potential positive trends ahead. Analysts are hopeful about BTC’s future, buoyed by retail investors’ optimism and the possible approval of a Bitcoin Exchange-Traded Fund.

As for crypto miner BLQC, these currency price surges significantly impact their mining profitability. Given BTC’s 150% surge, BLQC anticipates higher margins in their mining operations. The fluctuation of other currencies like ETH, SOL, and XRP,  have also seen substantial gains recently. Suggesting bullish trends and contributing to an overall positive outlook for Cryptocurrency.

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OTCM Filings:

At the core of OTC companies lie their filings. These essential documents demand careful attention and thorough examination to gain a comprehensive understanding of their current status. Often, these OTC companies lack significant press releases or comprehensive websites, compelling investors to delve into their filings. These filings offer in-depth and accurate insights into their performance and fundamental well-being, serving as a crucial resource for investors seeking a clearer picture.

As for BLQC, they have OTCM filings which are less extensive than SEC filings, but are designed to provide investors with some basic financial information. Some OTC companies voluntarily register with the SEC to provide additional transparency and credibility to investors – BLQC does not appear to have done so.

2022 Annual Report:

Upon a preliminary review, the audited annual report for 2022 indicates potential weaknesses in its fundamental health. However, this does not preclude the possibility of the stock gaining momentum. Nevertheless, here are basic key numerical highlights from their Annual Report from 2022:

• Total Assets USD $5,436,686 vs. USD $10,796,530 December 31, 2021
• Total Liabilities USD $15,273,941 vs. USD $16,066,782 December 31, 2021
• Total Revenue USD $5,330,133 vs. USD $959,677 December 31, 2021
• Net Income Loss USD $(15,426,817) vs. Net Income of USD $3,546,376 December 31, 2021

2023 Financials:

Our initial evaluation, which includes unaudited quarterly results along with highlights from the 9 months ending on September 30th, 2023, indicates potential weaknesses in the company’s fundamental health. However their bottom line at least saw improvement. Here’s a concise overview of the figures:

• Total Assets: USD $2,944,195 compared to USD $5,436,686 as of December 31, 2022
• Total Liabilities: USD $10,343,408 compared to USD $15,273,941 as of December 31, 2022
• Total Revenue for the 9 months ending September 30th, 2023 USD $922,192 compared to USD $3,676,160 for the same period in 2022
• Net Income Loss for the 9 months ending September 30th, 2023 (USD $4,110,673) compared to (USD $8,398,772) for the same period in 2022

BLQC is currently experiencing a high growth phase, it’s not surprising to witness its fundamental financial health in a challenging situation, especially given the significant changes BLQC has been through since 2022.

There are undoubtedly several other factors that could potentially contribute to the company’s positive momentum. Let’s proceed with the evaluation of another OTCM filing.

OTCQB Certification:

BLQC put out an OTCQB certification filing. This filing essentially applies for and fulfills the necessary requirements to be listed on the OTCQB market tier.

Being listed on the OTCQB can offer benefits such as increased visibility, more stringent reporting standards, better access to investors, and potentially improved liquidity. It’s seen as a more regulated and credible marketplace compared to the Pink tier, which often provides investors with increased confidence in the company’s operations and financial reporting.

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Press Releases:

Considering the substantial recent gain, let’s examine the last three press releases, disseminated within’ the last month to evaluate their potential connection to the recent surge.

Regains Possession of Gaffney Mining Assets:

BLQC recently reached a settlement agreement for the case of Blockquarry Corp v. Litchain Corp, marking a significant victory for the company. Reclaiming essential mining assets in South Carolina allows BLQC to regain control over crucial equipment necessary for their operations. President and Chair Alozno Pierce has a positive outlook, outlining plans for debt consolidation and asset management to further enhance the company’s financial stability and operational efficiency. They’ll be relocating assets to a new site in Missouri and have plans to reduce dilutive debt with the proceeds from their settlement. This will once again, position BLQC for operational expansion and stronger financial footing.

New Management:

BLQC is looking to propel operational growth and appointed Lawrence Davis as Chief Operating Officer (COO) and Sam Escobar as Director of Ground Operations. Davis, a military veteran and entrepreneur, brings substantial experience in executive consulting, security, and digital assets. More recently Davis’ entrepreneurial journey led to the founding and establishment of a digital assets fund, Wandering King Studios, which specializes in Web 3 product offerings and digital assets.

Escobar, also a decorated veteran, excels in executive consulting and blockchain technology, showcasing expertise in operational scaling. Pierce expresses confidence in Escobar’s alignment with BlockQuarry’s vision for growth. Notably, Escobar’s contributions have been instrumental in establishing and scaling multiple companies, showcasing his operational prowess in growing profitable entities. His expertise extends to blockchain technology and digital asset management, being the founder of a software protocol currently used in gaming and augmented reality training. On top of this, he’s also an active board member of a well-established digital assets CPO fund.

With their leadership, BlockQuarry aims for innovative and successful operations in the public markets.

Revenue Growth:

BLQC updates on the success of its new Missouri site under COO Lawrence Davis and Chairman Alonzo Pierce. Since becoming COO, Davis has focused on innovation and growth, overseeing the launch of BlockQuarry’s self-mining site in Macon, Missouri.

Pierce commended the swift site transition post-Gaffney court ruling, highlighting confidence in Davis’s leadership. The Macon site’s current operations feature two pods, projecting an annual revenue of approximately $1.4 million – $1.7 million. BlockQuarry plans to scale up to four pods by year-end, with the site designed for immediate scalability, targeting 9 MW of operational power and an annual revenue of $3 million – $3.4 million.

Davis noted the site’s importance in accelerating BlockQuarry’s growth and showcasing expertise to prospective clients and public markets. The Company pledges continuous updates on its Missouri operations, revenue projections, and additional projects, reinforcing its commitment to enhancing operations and value for shareholders.

Conclusion:

BLQC has taken substantial strides forward by closing the chapter with Litchain Corp. This strategic closure has opened new avenues for BLQC, paving the way for enhanced operations. Moreover, the recent addition of seasoned operational executives, known for their track record in scaling profitable entities, positions BLQC favourably for growth.

Despite recent financials not depicting optimal health, other releases suggest positive progress. The surge in BTC has provided a positive environment for crypto miners, including BLQC, ultimately leading to improved financial performance with higher margins. While it might still be early, the latest investor optimism, potential OTC tier upgrade, bolstered management team, and advancements at the Missouri Site indicate a promising trajectory for BLQC. Keep an eye on them by adding them to your watch list.

We will update you on BLQC when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Star Alliance International (OTC: STAL) has experienced a remarkable surge, soaring by over 340% in the past two weeks. Initially at a low of $0.0009 on November 1st, 2023 the stock has now peaked at $0.004 today on November 14th, 2023. This eye-catching performance has placed STAL among the select few OTCPNK stocks grabbing the spotlight and enticing attention from online investors. In today’s article, we’ll be digging into potential factors driving this surge in valuation and evaluating what’s next based on current and future prospects.

Trading History:

Taking a candid look at STAL’s trading history reveals a stark reality: an investment made in November of 2022 would have seen a staggering 99.5% decline. That’s certainly a hard truth to overlook.

The present situation showcases STAL hitting 52-week lows. This prompts a thesis that diving in at such rock-bottom levels might hold promise. OTC stocks of this nature of course showcase extreme volatility—either soaring by 1000% or plummeting into obscurity.

A gamble with high stakes, undoubtedly. Let’s assess their assets and explore potential growth prospects around their new technology to decipher whether this valuation aligns with any logic.

Background:

Previously, STAL’s primary focus rested on their mining production expertise, specializing in extracting gold, silver, lithium, and various other rare earth minerals. However, the company has recently shifted gears, steering toward a more innovative approach and technology.

The current trajectory indicates a strong emphasis on scaling up a groundbreaking precious metal extraction process. This new method doesn’t just prioritize environmental friendliness; it also holds the potential to significantly impact the distinction between economically viable and unviable mines. This shift underscores the company’s commitment to pioneering advancements that not only benefit the environment but also revolutionize the economic landscape within the mining industry.

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Troy Mining Asset:

On August 13, 2019, Star Alliance International Corp completed the acquisition of assets from Troy Mining Corp, a Nevada corporation. These assets encompass 78 gold mining claims situated in Mariposa County, California, east/southeast of El Portal. The acquisition was secured through a comprehensive agreement involving a combination of stock and cash, granting Star Alliance International Corp full ownership of the assets, including a production processing mill, associated structures, mining equipment, geological and assay reports, and core drilling samples.

According to the company, a man by the name of Daniel Geiger purchased the project around 20 years ago and raised funds to further develop the asset but decided to secretly divert those funds into another project. Unfortunately for Mr. Geiger that meant Federal authorities filing charges and the result?… Prison.

The federal government then decided to hire Mr. Robert B. Garcia to estimate the project’s value, an experienced figure in mining and precious metals with a chemistry degree from Arizona State University. Garcia previously worked as a metallurgist and consultant in mining. Back in 2004, he served as an expert witness in court, leading to estimated gold reserve of ~2,000,000 troy ounces – valuing the project at ~USD $3,870,000,000.

Fast forward to today, the premise of this asset is a revival of a pre-existing mine that has yet to undergo modern extraction methods for ore removal. The potential for unearthing substantial amounts of gold hidden beneath the ground remains high, given the lack of advanced extraction techniques applied thus far.

With basic systems in place for them to economically remove gold in the past 150 years, it’s likely there’s large amounts that have been missed. Processes like geological surveys, geochemical sampling, geophysical surveys, geological remodelling, additional exploration drilling programs could certainly expand the resource.

However STAL’s Troy Mining asset will require updates to get back into production. The good news is it won’t demand the colossal capital investment typical of  junior explorers, which commonly cost hundreds of millions.

Here’s what we’re aware of that would be costs associated to update critical infrastructure on the property:

• ~USD $10 million for road and trail maintenance,
• ~USD $1.8 million for ore processing equipment
• ~USD $12,000 for two on-site generators connected to electrical panels.

Addressing these infrastructure needs will be a crucial part of STAL’s forward journey, but should be fairly straight forward in comparison to standard junior mining exploration – will cost substantially less too.

This leads us to our next topic involving a new recovery system management acquired called “Genesis Gold Extraction System”

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Genesis Recovery System:

The Genesis Oxide System introduces a revolutionary approach to gold extraction by accelerating the dissolution rate of gold, reducing extraction time from 40-120 days to a mere 12-48 hours. This significant reduction in time translates into remarkable cost savings for production. The system’s scalability and modular design enable easy transportation between locations, offering versatility and practical solutions to challenges posed by fine materials, eliminating the need for agglomeration.

At its core, the Genesis system comprises a reactor module, enhancing adaptability in installation, construction, and repositioning. This innovative system outperforms traditional extraction methods and meets the industry’s demands for effectiveness, feasibility, and reliability. Operating a complete module requires a compact area of only 2,500 square meters. This would significantly reduce the space required to run a recovery system when compared to other systems like heap leaching.

Furthermore, the Genesis Refractory System handles complex ores, boasting an impressive 98% transformation rate from double refractory locked gold into free oxide gold.

If you have no idea what double refractory locked gold means, here’s further explanation:

• Gold ore containing two types of refractory minerals, commonly sulfides and carbonaceous material.
• “Locked” gold signifies that the gold is enclosed within these refractory minerals, making extraction challenging.
• Requires specialized methods: Extraction process demands specific techniques to separate gold from these minerals due to their interlocking nature.

The Genesis Refractory System is environmentally safe, emission-free, and economically advantageous. Notably, these systems not only efficiently extract minerals from tailing piles, surpassing previous methods, but also contribute to environmental cleanup by leaving behind usable rock residue suitable for various applications like road construction.

It’s even very effective on coal tailings. The system can unlock valuable rare earth elements and other noble metals, underscoring its importance in resource recovery across multiple verticals with  environmental rehabilitation in mind.

The Troy Mining asset anticipates leveraging this technology to enhance economic viability and extraction efficiency in low-grade areas. Furthermore, employing this technology as an asset to support other mines grappling with uneconomical low-grade ore holds substantial potential benefits. Genesis stands as a pivotal catalyst that could drive substantial growth for STAL if the implementation continues as envisioned.

Conclusion:

STAL’s market valuation of around $650K appears to be quite low when compared to the estimated resource at their Troy Mining project, valued at ~$4B. Shareholders could gain substantial value if management successfully reactivates the Troy Mining Asset. Given their new technology and minimal capital expenditure needed to revive the mine, it seems like a relatively straightforward task.

Given the lengthiness of the article already, we didn’t include information about their Honduras Gold Mine, which is also quite impressive and adds substantial value to STAL. You can conveniently find all the essential details on that project in their corporate presentation, accessible here.

Most importantly, STAL can leverage their innovative Genesis technology to not only enhance the economics in both their mining assets, but also benefit neighbouring mines within the region’s highly concentrated mineral-rich vein belts.

As per usual with stocks of this nature, details can change very quickly. Be sure to add STAL to your watchlist to keep a close eye on developments.

We will update you on STAL when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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3DX Industries (OTCPNK: DDDX) recently experienced a significant upswing, with a notable 58% surge in its stock price last week following the company’s announcement of JCP compliance. While this marks a significant milestone for the company, the broader question revolves around whether its future prospects justify the potential for further gains beyond the recent surge. To gain a deeper understanding, let’s delve into the company background, recent developments, and insights from retail investors. 

Background:

3DX is a distinguished manufacturer, renowned for its proficiency in both additive and subtractive manufacturing. Their primary goal is to pioneer inventive solutions that revolutionize and propel manufacturing processes forward. As outlined on their website, they plan to achieve this through strategic collaborations, continuous research and development, and an unwavering commitment to customer contentment. 

Here’s more on Additive and Subtractive Manufacturing for those that aren’t familiar:

1. Additive Manufacturing (AM): Also known as 3D printing, additive manufacturing involves creating objects by adding material layer by layer. This is in contrast to traditional manufacturing, where material is often cut away or subtracted. In AM, a digital design is used to guide the precise deposition of material, which can be plastics, metals, ceramics, or even composites, to build a 3D object. AM is known for its ability to create complex, customized, and intricate designs, making it valuable in various industries, including aerospace, healthcare, automotive, and more.
2. Subtractive Manufacturing (SM): Subtractive manufacturing, on the other hand, is the traditional process of shaping objects by removing material from a solid block. Common methods of subtractive manufacturing include milling, turning, drilling, and grinding. These techniques are particularly useful for creating parts that require high precision and consistency.

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Significant Release: 

DDDX’s recent announcement represents a significant milestone that could potentially generate substantial cash flow if they begin winning contracts. The company has achieved JCP compliance and is now qualified as an Additive Manufacturer under the United States Department of Defense – Joint Certification Program (JCP).

This is a pretty big deal for two reasons. 

1. Government contracts often come in substantial sizes, offering the possibility of significant future cash flows upon securing such contracts. Once you successfully secure government contracts and demonstrate your capabilities and products, it also paves the way for expanded business opportunities. 
2. The JCP qualification serves as a validation of their unwavering dedication to meeting the industry’s most stringent quality standards. When engaged in government contracts, excellence is imperative, as these contracts demand nothing but the finest solutions to align with their exacting standards.

Let’s take a look at another publicly traded manufacturer to see how government contracts affected their business:

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Case Study Example: 

One publicly traded company with a notable example of government contracts significantly impacting its trajectory is Lockheed Martin Corporation (NYSE: LMT). Lockheed Martin is not a small company by any means, but it serves as a prominent illustration of the transformative effect government contracts can have. 

Lockheed Martin’s history is replete with major government contracts that have greatly influenced its trajectory. One standout example is its role in the F-35 Lightning II program. Lockheed Martin is the prime contractor for the F-35, a cutting-edge fifth-generation multi-role fighter aircraft. The U.S. government, alongside several international partners, has invested heavily in this program.

Impact: Lockheed Martin’s involvement in the F-35 program has not only secured substantial revenue but has also played a pivotal role in shaping the company’s future. This program represents a significant portion of Lockheed Martin’s revenue and has propelled the company to the forefront of the defense and aerospace industry. It has also led to the creation of thousands of jobs and the development of advanced technologies, further solidifying Lockheed Martin’s position as a major player in the defense sector. The success of government contracts, like the F-35 program, has been instrumental in shaping Lockheed Martin’s long-term trajectory and influence within the industry.

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Thoughts from Retail Investors: 

The company sustains a vibrant online presence with retail traders particularly on Twitter, who voice their optimistic views on DDDX’s promising future prospects.

One Twitter user, @SuperRobotOTC, stands out as a dedicated follower and an active shareholder of the company. It’s worth noting that the user scheduled to conduct an interview with the CEO that happened yesterday on November 1st, 2023. The interview has a wealth of information and “Important Nuggets” to look forward to, here’s the link.  

To put things into perspective succinctly, many investors like the company for the following reasons: 

• The company hasn’t had any dilution/Issuances in over 2 years. 
• People are fond of the share structure and low float, which means significant announcements can move the share price easily. 
• $800k in convertibles, convertible at $0.50-.60 over 10x from current price. 
• JCP Compliance (Allows access to unclassified military critical technical data). 
• Government Contracts. 
• Highly active in the Aerospace Industry (Completed orders for StandardAero, who did $3b in revenues in 2022. Also submitted a bid for Boeing $BA in July 2023).
• Hard working management with tons of experience and great backgrounds.

For those of you that might not understand the more detailed highlight of “$800k in convertibles convertible at $0.50-.60 over 10x from current price”, allow us to explain.

$800,000 in convertibles, convertible at $0.50-$0.60 refers to a financial arrangement involving convertible securities, such as convertible bonds or preferred stock. These securities can be converted into common shares of the company at a predetermined price range of $0.50 to $0.60 per share. Here’s what this means for the company:

• Financial Flexibility: The existence of convertible securities provides the company with a source of potential financing. Convertible securities offer the flexibility of being used as debt or potentially converted into equity based on the investor’s choice.
• Potential Dilution: If the convertible securities are converted into common shares, it can lead to an increase in the total number of outstanding shares. This would mean dilution, but in the grand scheme of things DDDX’s scenario is a fairly small percentage of the existing shares so it wouldn’t have a large impact. 
• Use of Proceeds: The $800,000 represents the potential capital that the company could raise through conversion. This capital can be used for various purposes, such as research and development, marketing, debt reduction, or general working capital.

Conclusion:

In the world of OTC-traded companies, a common challenge is company’s failing to live up to the enticing promises made to investors. This is especially true for those trading on OTCPNK, where reporting requirements are less stringent, making it more crucial to exercise caution when considering an investment. 

Many investors seek genuine companies that are truly driving innovation in their respective industries, have non-dilutive practices, well-structured share capital, or, better yet, a management team that consistently delivers on its commitments. 

It’s certainly reassuring to see that a substantial number of online users believe DDDX precisely fits these criteria. 

We highly encourage monitoring this company closely as we anticipate updates regarding the Boeing contract and potentially pivotal contracts with the DoD. DDDX has already showcased its capabilities by successfully fulfilling orders for a $3B revenue company in the past. We continue to hope for the best, and eagerly await more pivotal contracts, akin to $LMT’s (Lockheed Martin) success.

We will update you on DDDX when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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