Analysts' Ideas of the Week
Top Picks Snapshot: Tech & Mining Movers
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
*Disseminated on behalf of North Peak Resources, Giga Metals Corp., Cupani Metals Corp., NurExone Biologic Inc., Zepp Health Corporation, Kidoz Inc., South Star Battery Metals, Lake Resources, Panoro Minerals, and Atrium Mortgage Investment Corporation. See the bottom of this report for other important disclosures.
We review the performance of our Top Picks, including a leading smartwatch maker whose shares rose 36% last week, and 431% in the past month. We also provide material updates on other companies under coverage, including a biotech, and juniors targeting gold, copper, and nickel.
Updates on Resource Companies Under Coverage
North Peak Resources Ltd.
PR Title: Fully acquires the Prospect Mountain Mine Complex (MMC) in Nevada
Analyst Opinion: Positive – Following its acquisition of an 80% interest in the Prospect Mountain project in 2023, NPR has now exercised its right to acquire the remaining 20% interest. MMC is a past-producing gold-silver-lead project in Nevada’s Eureka district, adjacent to i-80 Gold’s Ruby Hill (TSX: IAU; MCAP: $673M), and just north of McEwen Mining’s Eureka Property (NYSE: MUX; MCAP: $809M). This acquisition reflects management’s strong conviction in the project’s potential, particularly in light of a promising 2024 drill program. NPR plans to continue drilling aggressively, test all key targets, and work toward outlining a maiden resource that could attract strategic interest. The company is well-capitalized following a recent $5.40M equity raise. We will publish a detailed update report shortly.
Giga Metals Corporation
PR Title: Announces a $0.85M private placement (QP: Lyle Trytten, P.Eng., Manager of Development, GIGA)
Analyst Opinion: Positive – Proceeds will fund exploration at the company’s Turnagain project in northern B.C., which hosts one of the largest undeveloped nickel-cobalt deposits in the world. A 2023 Preliminary Economic Assessment (PEA) returned an after-tax NPV7% of US$574M, and an IRR of 11%, based on US$9.80/lb nickel vs the current spot price of US$7.02/lb. The project’s break-even nickel price is US$8.20/lb. Giga has identified several promising high-grade targets; if incorporated into the resource, they could significantly improve the project’s NPV and IRR. We note that most large undeveloped nickel projects are not economically viable if nickel prices remain below US$8.00/lb.
Cupani Metals Corp.
PR Title: Expands Blue Lake land package through acquisition of Nemo project claims
Analyst Opinion: Positive – The Nemo Property is contiguous with Cupani’s Blue Lake copper-nickel-platinum-palladium project in Quebec. Although Nemo remains untested and has never been drilled, it adds strategic value to the Blue Lake land package. Blue Lake hosts massive sulfide mineralization across five major zones, covering over 500 km². While still in the early stages of exploration, we see discovery potential. Based on our review of available data and speculative assumptions, we estimate the project could host over 3 billion pounds (Blbs) of copper equivalent (CuEq). The company is well-capitalized, supported by a recent $3.80M equity financing.
