Analysts' Ideas of the Week
Major Updates from Our Lithium, Energy, and Tech Coverage
ByFRC Analysts
Disclosure: Articles and research coverage are paid for and commissioned by issuers. See the bottom for other important disclosures, rating, and risk definitions, and specific information.
Highlights
In this edition, we analyze the performance of our top picks, including a gold-copper junior, whose shares rose 31% last month. We also discuss promising developments from other companies under coverage, including a lithium royalty company, a leading global smartwatch maker, and a gas producer that reported significant production growth.
- Gain insights into companies under coverage that experienced significant developments last week, along with our analysts' commentary and actionable takeaways.
- FRC top picks and standout performers from the past week
Disclaimer: This article and research coverage is paid for and commissioned by issuers. See the bottom of this article for other important disclosures, rating, and risk definitions.
TNR Gold Corp.
PR Title: commences production at its Mariana lithium project (Argentina)
Analyst Opinion: Positive – Ganfeng anticipates producing 20,000 tpa of lithium chloride from this project. TNR owns a 1.35% NSR, of which, Ganfeng has an option to purchase 0.90% for $0.9M. We believe Ganfeng will exercise its option, thereby reducing TNR’s interest to 0.45%. At current spot lithium prices, we estimate TNR’s annual royalty revenue at $1.2M, with payments potentially starting as early as next month. With a MCAP of just $12M, this milestone is pivotal for TNR, and we anticipate increased investor focus as the company starts reporting revenue.
Grid Metals Corp.
PR Title: Announces a cesium supply agreement with Tantalum Mining Corporation for its Donner lithium-cesium project in Manitoba
Analyst Opinion: Positive – Tantalum Mining owns the Tanco cesium-lithium mine, located 35 km from GRDM’s Donner lithium project. Tantalum Mining has offered a $1.2M prepayment to fund cesium exploration at Donner. In return, Tanco will have the right to purchase 10 Kt of cesium-bearing materials at a predetermined price if the project reaches production. While this development offers near-term cash flow potential for GRDM, it is still in the early stages. Although GRDM has outlined a high-grade lithium resource, the property has only undergone limited cesium testing. Cesium, designated as a critical mineral by both the U.S. and Canada, is essential for high-temperature drilling fluids, and is used in various high-tech and industrial applications.
StrategX Elements Corp.
PR Title: East Arm project exploration update (NWT)
Analyst Opinion: Positive – Recent sampling returned high copper grades of 1% to 10% Cu along a 2-km mineralized zone. This pre-resource property is prospective for copper and silver. STGX has staked an additional 6,425 hectares, and is compiling exploration data before generating drill targets.
Condor Energies Inc.
PR Title: A new gas well flows at 1,300 boepd; announces preliminary guidance for Q4 production and revenue
Analyst Opinion: Positive – As part of its ongoing workover programs on gas fields in Uzbekistan, CDR has added 1,300 boepd in new production from a previously unproductive well. The company has identified at least five additional wells with a similar profile that can be brought into production. CDR’s current production is 11,455 boepd, and with our 2025 full-year forecast of 11,667 boepd, we are pleased to see such a rapid production ramp-up within the first two months of the year, with significant potential for growth in the upcoming quarters. Q4-2024 production averaged 10,510 boepd, up 5% QoQ, matching our estimate. With Q4 revenue of $20.9M, total 2024 revenue came in at $66.5M, falling just 0.3% short of our forecasted $66.7M. The audited 2024 financial statements will be available next month, after which we will issue a detailed update report.
Zepp Health Corporation
PR Title: Expands athlete roster
Analyst Opinion: Positive - In the past two weeks, Zepp has signed five-time Olympic medalist and American sprinter Gabby Thomas, as well as World No. 4 women's tennis player, Italian Jasmine Paolini, as its latest ambassadors. As both are young stars who remain highly active and relevant in their fields, we believe they are excellent additions. Zepp is a leading smartwatch maker, and larger players like Apple (NASDAQ: AAPL) are losing market share to more affordable competitors such as Zepp. The audited 2024 financial statements are due next month, after which we will provide a detailed update report. We anticipate EBITDA turning positive in H2-2025, while management expects this to happen in early 2025.
