Four Hundred Percent Up And Higher For NRG METALS INC (OTCMKTS:NRGMF)

The last two months have seen the share price of NRG Metals Inc (OTCMKTS:NRGMF) soar from lows of $0.1 to their current price of $0.427, a near 4.5 times jump.This figure is higher than that obtained during our last analysis of the company.This report can be obtained here.The trend described above is further elaborated in the graphs below: NRGMF Daily ChartThis trend has sparked the market’s curiosity on the company’s operations therefore necessitating our look into the company. As such, over the course of this piece, we will be analyzing their past performance, strategy as well as developments that have occurred since our last review of the company.NRGMF: A BriefBefore going deeper into our analysis, let’s have a brief overview on NRGMF.NRG Metals Inc was incorporated in 1995 and is headquartered in Vancouver, Canada as Codrington Resource Corporation before 2015 when they had a name change.They are an exploration stage junior mining company that engages in the identification, acquisition, and exploration of mineral properties in Guyana and Quebec. They explore for gold and copper, as well as graphite and lithium.Currently the company has three subsidiaries: NRG Metals Argentina S.A., Gold Port (Guyana) Incorporated, Gold Port Resources Limited and Gold Port Limited as well as a market capitalization of over $33 million. Moreover, it trades on the TSX Venture Exchange under symbol NGZ, on the OTCQB Market under symbol NRGMF, and on the Frankfurt Stock Exchange under symbol OGPN.Recent DevelopmentsIn our last review, the company had just entered a strategic alliance with a high-tech enterprise, Chemphys Chemical Industry Co as well as obtained an initial contract for drilling with AGV Falcon Drilling SRL.These, back then, were the main reasons behind the growth of NRGMF’s surge in share price. Our review of the company was tied to this and our outlook was in tandem with that of the market: the company’s share price was to go further upwards.With recent developments, this outlook could only get better.Currently, they have made headway with two projects they had began in our previous analysis.First, they have received a go-ahead on their intended acquisition of the Hombre Muerto North Project, Argentina from the TSX Venture Exchange. This transactional approval is an achieved milestone for them as the company has been working tirelessly to ensure they have a place at the lithium triangle in Argentina.Just days before this announcement, the company had released a report detailing that the facility was lucrative in their view as they found the technical analysis, from analysts working at the site, quite positive. This presented them with proof that there was indeed reason to acquire the site and conduct further exploration activities thence.This far, given the market’s reaction to the acquisition, a lot can be made out of this.This puts them on a similar pedestal with much larger lithium mining and exploration companies within America and goes a long way in signaling shareholders that management is working tirelessly at ensuring value creation becomes a reality for them.This, however, has not been all for them.The company went further to complete a significant number of clauses that were crucial to their strategic alliance with Chemphys Chemical Industry Co.This alliance which was a key driver of their share price surge during our last analysis of NRGMF seems to be at its finalization stage as the two companies have now come to an agreement on the terms of the alliance.The deal which has seen the transfer of over CAD $1.2 million in share transfers as well as seen other ancillary clauses will see NRGMF benefit from the expertise that Chemphys Chemical Industry Co brings to the table and ensure that future mining projects are done more efficiently and effectively.In line with the above, the management of NRGMF through their CEO, Adrian Hobkirk had the following to say:

"We are very pleased with the investment in NRG by Chemphys and establishing a relationship with a high purity lithium manufacturer in China that supplies its products to the battery and energy markets. With the completion of this private placement, and the financial support of warrant and option holders, the Company is now fully funded to carry out its planned work program on the HMN Project."

Source:All the above, though few, only go to show that NRGMF is working towards growing through acquisitions as well as boosting efficiency. These factors will go a long at ensuring that the company succeeds both in the short and long run.Financial OutlookCourtesy of making no revenues in the past, the company has been working at ensuring that they reduce costs in a bid to mitigate going further into the red.During the quarter ended June 2017, 2Q2017, they reduced their net loss position from over $1.4 million in 1Q2017 to $397,00. This was mainly driven by the reduction in their sales, general and administrative expenses during that period and went to show the strides the company is taking to ensure their books remain clean.Furthermore, their working capital base of $307,000 goes further to elaborate the above.However, the company is still cash flow negative with a negative balance of $308,000. As such, a lot needs to be done to ensure that the company is generating revenues and income in future so as to ensure their financial health is strong as well as ease their access to funds from the market going forward.ConclusionNRGMF is a story of strategic moves made to ensure their continued stay in the mining space. A lot still needs to be done, however, a lot has been done and the much done is bound to get them further up in both performance and share price.We will be updating our subscribers as soon as we know more. For the latest updates on NRGMF, sign up below!Disclosure: We have no position in NRGMF and have not been compensated for this article.