Analysts' Ideas of the Week
High-Grade Gold Intercepts & Helium and Potash Financing
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 cobalt-bismuth-gold junior, whose shares rose 30% last week. We also cover important updates from other resource companies, including drill results, and notable financings.
Highlights:
- 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
Updates on Resource Companies Under Coverage
Loncor Gold Inc.
PR Title: Significant gold intersections at Adumbi in the DRC
Analyst Opinion: Positive – An ongoing resource expansion drill program at its flagship Adumbi gold deposit continues to return high-grade intercepts, including 13.9 m of 6.01 g/t, and 7.9 m of 9.54 g/t. Adumbi, which hosts 3.7 Moz of gold, is located 220 km from Barrick’s (TSX: ABX) Kibali mine, one of Africa’s largest gold mines.
Pulsar Helium Inc.
PR Title: Attracts a US$4M financing
Analyst Opinion: Positive - Funds will be used towards PLSR’s flagship Topaz project in Minnesota, which hosts a high-grade helium resource. The company is planning to complete a resource update, and a PEA, in the coming months. With a significant supply deficit expected later this decade, we anticipate growing investor interest in the helium sector.
Millennial Potash Corp.
PR Title: Announces a $3.5M equity financing
Analyst Opinion: Positive – Proceeds will be used to fund exploration and development activities of its Banio potash project in Gabon, West Africa. A 2024 Preliminary Economic Assessment returned an AT-NPV10% of US$1.1B, and a high AT-IRR of 33%, using a 25-year average price of US$387/t of granular Muriate of Potash (gMOP) vs the current spot price of US$319/t. MLP is trading at just 3% of the AT-NPV10%.
