Analysts' Ideas of the Week
Denarius Turns Producer | Encouraging News from Gold & Uranium Juniors
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 lithium junior, whose shares rose 25% last week. We also highlight key updates from a brand-new gold-silver producer, an established junior gold producer, and drill results from a uranium junior.
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
PR Title: Commences mining activities at the Zancudo gold-silver project in Colombia
Analyst Opinion: Positive – This announcement marks the company’s official transition to production status. First ore deliveries to Trafigura, a leading global commodity supplier, are expected by the end of this month. A 1,000 tpd processing plant is scheduled to be operational by Q4-2025, at which point the company will begin producing concentrates. This project has the potential to produce approximately 50–60 Koz of gold annually for at least 10 years, at an estimated cash cost of US$1,100–$1,300/oz. A 2023 Preliminary Economic Assessment on the Zancudo project retuned an AT-NPV5% of US$206M, and a very high AT-IRR of 287%, using US$1,800/oz gold vs a spot price of US$2,975/oz. DMET’s MCAP of US$42M, and enterprise value of US$71M, indicates that the market is not only undervaluing Zancudo, but also assigning zero value to its other advanced stage assets. The company plans to commence production at its Aguablanca project in Spain next year.
PR Title: Enters into an agreement to process third-party ore at its Burnakura mill in Australia
Analyst Opinion: Positive – The Burnakura mill is part of MMY’s Murchison project, which hosts resources totaling 381 Koz Au across five deposits. MMY has announced a collaboration with Great Boulder Resources (ASX: GBR | MCAP: $47M) to potentially process ore from GBR’s Side Well gold project at MMY’s Burnakura mill, located 48 km away. Both companies are currently conducting economic studies on their respective projects. We anticipate record revenue and production this year from the company’s flagship Selinsing gold mine in Malaysia.
PR Title: Partner Terra Clean Energy (TSXV: TCEC) announces encouraging drill results at its South Falcon East uranium project, Athabasca basin, Saskatchewan
Analyst Opinion: Positive – Six out of seven holes of a recently completed drill program intersected uranium mineralization. TCEC is planning a summer drill program. The South Falcon East project hosts historic inferred resources totaling 7 Mlbs at 0.03% U3O8.
