Analysts' Ideas of the Week
FRC Top Picks Deliver 95% YoY Return vs. 50% for Benchmark
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 Pulsar Helium, Millennial Potash, South Star Battery Metals, Zepp Health Corporation, Monument Mining, Builders Capital Mortgage, and Denarius Metals. See the bottom of this report for other important disclosures.
We review the performance of our Top Picks, with Zepp Health Corporation (NYSE: ZEPP) once again standing out, up 18% WoW, and an exceptional 1,443% YoY. Overall, our Top Picks have returned an average of 95% over the past year, nearly doubling the benchmark’s 50% gain. Visit our website to view the full list of Top Picks by sector. We also share key updates on covered companies, including juniors in gold, helium, graphite, and potash. *Past performance is not indicative of future performance.
Updates on Resource Companies Under Coverage
Pulsar Helium Inc.
PR Title: Additional flow test results from the Topaz helium project in Minnesota
Analyst Opinion: Positive – Flow and pressure testing returned dry gas with no water, confirming a clean helium-bearing gas stream. Last week, we had mentioned that the company was working on a $7M equity financing in the U.K.; this has since been completed. Proceeds will be directed toward a 10-well drill program at the company’s flagship Topaz helium project in Minnesota. The Topaz project hosts a high-grade helium resource. We expect an updated resource estimate, and a Preliminary Economic Assessment (PEA), later this year.
Millennial Potash Corp.
PR Title: Proposal to add potash to U.S Critical Minerals List
Analyst Opinion: Positive – The U.S. Department of the Interior has proposed classifying potash as a critical mineral, highlighting its importance to national security. This development coincides with MLP securing a US$3M funding commitment from the U.S. International Development Finance Corporation (DFC) for its Banio project. We believe these actions reinforce the Banio project's alignment with U.S. priorities, and bolsters its prospects for financing and rapid development A 2024 PEA reported robust economics, with an AT-NPV10% of US$1.1B, and a high AT-IRR of 33%, using a long-term average price of US$387/t granular Muriate of Potash (gMOP) vs the current spot price of US$363/t.
South Star Battery Metals Corp.
PR Title: Secures US$4M debt financing from Sprott to advance its Santa Cruz graphite mine in Brazil
Analyst Opinion: Positive – Sprott has extended a US$4M loan facility with a three-year term. Proceeds will support the development of the Santa Cruz graphite mine, the first new graphite project in the Americas since 1996. Phase one is in the ramp-up stage, with an initial shipment completed in May 2025. STS aims to build a vertically integrated battery-graphite plant in the U.S., targeting feedstock of 100,000 tpy of flake graphite from its projects in Brazil and Alabama.
