Golden Share Resources, “GSH” on TSX Venture, .16 cents .17 cents, Five year range of low of .06 cents, high of .45 cents.. is a small cap scientific development company as well as a mining exploration company with a major focus on the scientific developments in the storage of energy in the vanadium based battery. Golden Shares’ management realizes that the future of the energy market will be heavily influenced by clean efficient renewable energy such as solar and wind that can be efficiently stored. Golden Shares’ focus today is on the “energy storage” due to the size and potential of that market.
Explaining Golden Share Resources
The company was solely a Canadian mineral exploration company. By 2015, the company was running short of cash. Golden Shares’ new president Nick Zeng arrived and in our opinion rescued the company. At that time, the financial situation was ominous. Mr. Zeng purchased a large amount of Golden Share Resources’ stock and obtained the necessary capital to keep the company in operation.
Energy storage efficiency is a necessary ingredient in achieving the unique benefits of clean and renewable energy. Our analysis suggests that the vanadium battery offers exceptional commercial potential for the storage of energy. We view the “energy storage’’ theme as compelling.
Key Point: The vital ingredient for the renewable energy sector are batteries that can store energy for long periods which has been done; the next step is to be able increase the amount energy that can be stored.
Energy Storage and Points for Thought
1–Few people are aware that the total amount of electric power produced by a power plant whether daily, weekly or monthly is always more than is necessary to insure that a surplus supply of that energy is readily available when it could be needed. At any utility in North America, an additional “back up” electric power supply must always be available for any periods of higher than normal electricity demand which can occur due to unforeseen weather conditions, problems with the “electrical grid” or other unexpected events.
2-Extra “back up electricity” must be produced and that same “back up electricity” has never been able to be efficiently stored on a large scale. That has changed due to recent developments in battery technology storage that now permit energy be stored for very long periods.
3-So after coal energy, gas or oil energy, nuclear energy or whichever fuel source has been used to produce electricity, whatever electricity is produced and not used has never been able to be efficiently stored for later use. However, that has changed. The development of a Vanadium battery with long life storage has been successfully done but still faces the challenges of higher costs….for now!
4-Presently Golden Share’s’ management is focusing on an advanced vanadium battery technology. We cannot determine when any results will be disclosed. Note well that Golden Shares’ focus is on “energy storage” and not the production of energy itself.
5-The Vanadium Battery division of the company will be “spun out” and incorporated as an American company and will be traded in the Unites States. Thus, current shareholders of Golden Share Resources will have two separate companies. Therefore Golden Share is today one corporation that soon will be split into two corporations. One will be an energy storage company trading in the United States; the other will be a mining company still trading on a Canadian Exchange. Canadian and American investors will be able to trade either company’s shares easily with no problems.
6– Focus? Golden Share is continually advancing its’ vanadium redox flow(liquid) batteries suitable for utility-scale stationary power while researching and potentially developing a new vanadium based battery for more advanced uses at lower costs. We find that to be the major point for consideration.
7– Vanadium batteries last far longer than the alternatives such as lead or lithium. Vanadium batteries last 20 years and longer. More developments are coming in our opinion. We will be following all of the results and updating regularly any developments in the Vanadium battery science. We expect many.
THE GOLDEN SHARE STOCK, WHO OWNS IT?
This is VERY IMPORTANT as investors examine and monitor this closely. Exceptionally heavy buying by their officers indicate in our opinion that the emphasis is not their own salaries but as large shareholders the success of their companies and the performance of their common stocks.
At Golden Share, the President and CEO Nick Zeng has been a consistent buyer of “GSH” shares as verified on SEDI. He now owns approximately 2,200,000 shares (about 5.5%) which he bought mainly at various prices in the open market. His average cost by my calculations is in the range of approximately .27 cents a share to as high as .35 cents a share. His investment is among the highest by an insider that we find on the TSXV. I would estimate that between 40% to 50% of the shares are tightly held. International institutional investors own slightly over 19% of Golden Share Resources.
Conclusion
Golden Share Resources management has taken difficult steps to position itself as a participant in the energy storage sector. With time and further results we think that there is a strong possibility that the company will be a commercial presence in the clean energy storage field.
While no one can predict the future, the company should be viewed as a “dark horse” with the strong possibility of capital gains with moderate risk.
