Uranium Heating Up / Platinum at Costco / Microsoft’s AI Healthcare Push
Published: 10/15/2024
Author: FRC Analysts

Key Highlight
- Shares of a copper junior under coverage were up 50% last week.
- A junior under coverage commences graphite production in Brazil.
- Top picks and standout performers from the past week
- Notable developments and trends in the mining, tech & AI, and crypto sectors
Commentary on Resource Companies Under Coverage
South Star Battery Metals Corp. (STSBF, STS.V)
PR Title: Starts commercial production at the Santa Cruz graphite mine (Brazil) Completes a PEA and a resource update on the BamaStar graphite project (Alabama)
Analyst Opinion: Positive – As we had anticipated and according to schedule, STS has commenced commercial production at its Santa Cruz graphite mine in Brazil. This open-pit mine has the potential to produce anode materials for lithium-ion batteries. A maiden PEA on BamaStar yielded an AT-NPV8% of US$1.6B, and an AT-IRR of 27%, based on US$1k/t graphite, in line with the current spot price. The study outlines a 19-year open-pit mine life, with an average annual production of 47 kt, and an initial CAPEX of US$366M. This positive PEA was a prerequisite for obtaining the previously announced US$3.2M funding from the U.S. Department of Defense, scheduled for completion in 18 months. Management plans to initiate production at BamaStar in 2027.
Western Exploration Inc. (WEX.V, WEXPF)
PR Title: Initial results of an ongoing drill program at Gravel Creek (Nevada)
Analyst Opinion: Positive – The first hole drilled near the Gravel Creek resource area returned exceptional grades of 75.3 g/t Au, and 3,080 g/t Ag, extending high-grade mineralization for at least 80 m along strike. Gravel Creek, featuring an underground/high-grade gold resource, is part of WEX’s Aura gold-silver project. Aura hosts three deposits (Gravel Creek, Doby George, and Wood Gulch).
Fortune Minerals Limited (FT.TO, FTMDF)
PR Title: Announces plan to complete an updated Feasibility Study (FS) for the NICO cobalt-gold-bismuth-copper project (NWT)
Analyst Opinion: Positive – FT has engaged an engineering/environmental services company to complete an updated FS. NICO hosts North America’s largest primary cobalt deposit, and the world’s largest bismuth deposit. A 2014 FS returned an AT-NPV7% of $254M, using US$16/lb cobalt vs the current spot price of US$11/lb, and the three-year average price of US$18/lb. The company has secured grants totaling C$16.2M from the U.S. Department of Defense, and the Government of Canada.
Updates on Financials, Technology, Energy, and Special Situations Companies Under Coverage
PR Title: Pursuing a $4M equity financing
Analyst Opinion: Positive - HEM has retained a contractor to manufacture its flagship product (ACP-01), targeting patients in critical need on a compassionate basis. The initiative aims to provide investigational products for life-threatening conditions where alternative treatment options are unavaiable. HEM's initial target markets are patients with critical limb ischemia (CLI), and ischemic heart disease.
FRC Top Picks
The following table shows last week’s top five performers among our Top Picks. The top performer, World Copper, was up 50%. WCU is advancing two copper projects in the Americas.
Top Five Weekly Performers | WoW Returns |
World Copper Ltd. (WCU.V) | 50.0% |
Lake Resources NL (LKE.AX) | 23.1% |
Kidoz Inc. (KIDZ.V) | 20.0% |
Enterprise Group, Inc. (E.TO) | 18.2% |
Noram Lithium Corp. (NRM.V) | 10.7% |
* Past performance is not indicative of future performance (as of October 11, 2024) |
Source: FRC
Our top picks have outperformed the benchmark (TSXV) in six out of seven time periods listed below.
Performance by Sector
Total Return | 1 Week | 1 mo | 3 mo | 6 mo | 1 yr | 3 yr | Since launch |
Mining | 3.5% | 14.3% | 1.4% | 0.8% | 13.8% | -27.6% | -1.9% |
Cannabis | N/A | N/A | N/A | N/A | N/A | -36.5% | -23.6% |
Tech | 20.0% | 15.4% | -6.2% | -46.4% | -30.2% | -35.2% | -4.6% |
Special Situations (MIC) | 1.5% | 6.0% | 26.5% | 30.2% | 67.4% | -24.6% | 14.9% |
Private Companies | N/A | N/A | N/A | N/A | 6.7% | 20.5% | 30.5% |
Portfolio (Total) | 3.2% | 12.2% | 6.4% | 3.1% | 19.5% | -15.0% | 9.3% |
Benchmark (Total) | 1.4% | 4.0% | 1.9% | 5.0% | 13.5% | -35.5% | -31.7% |
Portfolio (Annualized) | - | - | - | - | 19.5% | -5.3% | 0.8% |
Benchmark (Annualized) | - | - | - | - | 13.5% | -13.6% | -3.5% |
1. Since the earliest initiating date of companies in the list of Top Picks (as of October 11, 2024) | |||||||
2. Green (blue) indicates FRC's picks outperformed (underperformed) the benchmark. | |||||||
3. Past performance is not indicative of future performance. |
Our complete list of top picks (updated weekly) can be viewed here.
Metals and Mining
AngloGold Acquires Centamin
AngloGold has solidified its presence in the African gold mining market by acquiring Centamin, a significant gold producer in Egypt. The Egyptian government's approval of this deal marks a significant consolidation in the mining sector, driven by companies seeking to scale operations and reduce costs. Investors should expect more mergers and acquisitions (M&A) activity as miners continue to pursue growth through acquisitions, particularly in resource-rich regions like Africa. Aton Resources is a gold junior under coverage with projects in Egypt.
Platinum Gains Retail Traction
Platinum has seen a surge in retail demand as it becomes available at Costco, indicating growing interest in precious metals. This trend is likely to continue as more consumers seek to diversify their investments and hedge against inflation.
Uranium Market Heats Up
Kazatomprom's substantial deal to supply uranium to China underscores the rising demand for this critical resource. As nuclear energy gains traction as a clean energy solution, particularly in countries like China, uranium stocks are poised for growth. The increasing demand for AI and data centers, which require significant energy, could further drive demand for uranium.
Newmont Prioritizes Ethical Sourcing
Newmont, the world's largest gold producer, has partnered with MKS PAMP to introduce a traceable gold bar, marking a significant step towards ensuring ethical sourcing in the precious metals industry. This initiative aligns with the growing demand for transparency and sustainability in supply chains, which is becoming increasingly important to both investors and consumers.
Tech and AI
Microsoft's Healthcare Push
Microsoft's integration of AI into healthcare is a strategic move that aligns with global trends towards technological solutions for improving health outcomes. By focusing on predictive medicine, diagnostics, and personalized treatment, Microsoft is not only opening new revenue streams but also reinforcing its cloud offerings.
Nvidia Faces Geopolitical Headwinds
Nvidia's dominance in AI hardware faces geopolitical risks due to potential U.S. export restrictions to China. While this could dampen short-term sales, Nvidia's leadership in AI, gaming, and data center technologies positions it well for long-term growth.
AMD Enters AI Chip Market
AMD's new Instinct MI325X chip aims to compete with industry giants like Nvidia and Intel in the rapidly growing AI and machine learning markets. This move highlights the ongoing innovation race in AI and the potential for significant growth for companies that can effectively monetize AI.
Cryptocurrencies
DeFi Continues to Drive Innovation
The cryptocurrency market remains driven by innovation in decentralized finance (DeFi), with new platforms and community-driven tokens gaining traction. Despite regulatory uncertainties, the focus on building real-world use cases within the crypto ecosystem is growing.
Ethereum Faces Resistance
Ethereum has encountered resistance around the $2,660 level, but its long-term prospects remain strong due to its central role in decentralized applications (dApps) and DeFi. Network improvements, such as the transition to Ethereum 2.0, could enhance scalability and investor confidence.