Analysts' Ideas of the Week
Surging Juniors: Millennial Potash, Loncor Gold, and South Star Lead Key Updates
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
We review the performance of our Top Picks, including an Adtech company, whose shares rose 29% last week. Additionally, we highlight key updates from a new graphite producer, an African potash junior whose shares are up 259% since our previous report in December 2024, and other juniors under coverage.
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
Millennial Potash Corp.
PR Title: Promising drill results at its Banio potash project in Gabon
Analyst Opinion: Positive – MLP is up 259% since our previous report in December 2024. An ongoing drill program intersected 290 m of potash seams, extending mineralization at depth. We believe this will positively impact an upcoming resource update, and feasibility study. A 2024 PEA 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 granular Muriate of Potash (gMOP) vs the current spot price of US$351/t. MLP is trading at just 6% of the AT-NPV10%.
Loncor Gold Inc.
PR Title: Final drill results at the Adumbi deposit in the DRC
Analyst Opinion: Positive – A resource expansion drill program at the Adumbi gold deposit continues to return broad, high-grade intercepts, such as 22.31 m at 3.05 g/t, 14.50 m at 4.24 g/t, and 28.72 m at 2.55 g/t. Adumbi, which hosts 3.7 Moz gold, is located 220 km from Barrick’s (TSX: ABX) Kibali mine, one of Africa’s largest gold mines. LN is currently pursing an $8M equity financing. We believe Loncor is an attractive M&A target.
South Star Battery Metals Corp.
PR Title: Announces production and shipment of first graphite concentrates from its Santa Cruz graphite mine in Brazil
Analyst Opinion: Positive – This marks not only a major milestone for STS, but also for the graphite sector, as Santa Cruz is the first new commercial graphite mine in the Americas since 1996. The mine is permitted to produce up to 50 Kt of graphite concentrates annually. The company currently has 36 Kt of ore stockpiled, ready for processing. STS anticipates producing 3.5-4.0 Kt of concentrates in 2025, with a target of ramping up to 10 Kt in 2026. We will publish an update shortly with our revenue forecasts.
Fortune Minerals Limited
PR Title: Announces positive bismuth test work results on its NICO cobalt-gold-bismuth-copper project in the NWT and Alberta
Analyst Opinion: Positive – Metallurgical tests suggest potential for significant improvements that could reduce CAPEX and OPEX, while enhancing metal recoveries. FT is working on an updated feasibility study. NICO hosts the world’s largest bismuth deposit, the largest primary cobalt deposit, and 1.1 Moz gold. FT has secured funding commitments totaling ~$17M from the U.S Department of Defense, and the Government of Canada.
Trident Resources Corp.
PR Title: Receives drill permits for its flagship Contact Lake gold project in Saskatchewan
Analyst Opinion: Positive – Trident is a newly formed junior explorer, created through the merger of three TSXV listed companies. Its flagship Contact Lake gold project hosts the past producing Contact Lake mine, with historical resources totaling 1.05 Moz spread across three targets, and several additional untested targets. The company is planning a drill program aimed at confirming, and potentially expanding, the historical resource.
