Analysts' Ideas of the Week
Delivra Beats, Sprott Ups Stake in New Age, and a Rare Helium 3 Discovery
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 Noram Lithium, Kidoz Inc., Giga Metals, South Star Battery Metals, Millennial Potash, Delivra Health Brands, Doubleview Gold, Aton Resources, First Phosphate Corp., Pulsar Helium Inc., and New Age Metals. See the bottom of this report for other important disclosures.
We review the performance of our Top Picks, led by Noram Lithium (TSXV: NRM), which gained 26% WoW. Over the past three months, our Top Picks have delivered an average return of 81%, significantly outperforming the benchmark’s 31% gain. Visit our website to view the full list of Top Picks by sector https://www.researchfrc.com/top-picks. We also share key updates from our coverage universe, including a health and wellness company that beat our FY2025 revenue and EPS estimates, along with major developments from juniors focused on lithium, gold, helium, and phosphate. *Past performance is not indicative of future performance.
Updates on Resource Companies Under Coverage
Doubleview Gold Corp.
PR Title: Additional drill results from the Hat project in B.C. (QP: Erik Ostensoe, P.Geo., Consulting Geologist of Doubleview Gold Corp.)
Analyst Opinion: Positive – An ongoing drill program continues to return high-grade copper and gold intercepts over long intervals, including 9 m of 9.88% CuEq, 133 m of 1.03% CuEq, and 71 m of 1.01% CuEq, further expanding the mineralized footprint of the Hat project. We expect this to positively impact an upcoming resource update and PEA. The Hat project hosts an open-pittable, polymetallic porphyry deposit with resources totaling 5 Blbs CuEq, uniquely enriched with scandium and cobalt.
Aton Resources Inc.
PR Title: Final results of a diamond drill program at the Abu Marawat project in Egypt (QP: Javier Orduña BSc, MSc, MCSM, DIC, MAIG, SEG(M), Chief Geologist of Aton Resources)
Analyst Opinion: Positive – The final 19 holes returned several high grade polymetallic intercepts, including 3.9 m of 41.35 g/t AuEq, and 17.7 m of 10.59 g/t AuEq, continuing the trend of strong results from earlier drilling. Aton is advancing multiple gold projects in Egypt, with NI 43-101 compliant resources totaling 0.83 Moz AuEq across two projects (Hamama and Abu Marawat). Drilling continues at both Abu Marawat and Hamama West, while the company aims to complete a maiden resource estimate for the Semna project, and include it in an upcoming Preliminary Feasibility Study (PFS).
Pulsar Helium Inc.
PR Title: Announces significant helium-3 discovery at its Topaz helium project in Minnesota (QP: Thomas Abraham-James, CPG, President, CEO and Director of Pulsar Helium)
Analyst Opinion: Positive – Gas samples from the Topaz project returned helium 3 concentrations ranging from 1.3 to 14.5 ppb, among the highest naturally occurring levels reported globally. This is of high significance, as helium 3 is a very rare isotope of helium. All previous discoveries by PLSR involved conventional helium 4. Helium 3 is used mainly for scientific research, including cryogenics and fusion energy studies, because of its unique low temperature and nuclear properties. It is not produced commercially and exists only in small amounts as a byproduct of certain nuclear processes. Due to its scarcity, helium 3 is among the most expensive gases in the world. Further drilling and testing are needed to assess the project’s helium 3 potential. No commercial technology currently exists to separate helium 3 from helium 4 at scale, and management plans to attract collaboration partners to develop such capabilities. Overall, we believe this discovery adds a new dimension for PLSR. While preparing a Preliminary Economic Assessment/PEA for conventional helium, helium 3 is now likely to be included.
N/A
PR Title: Announces a $15M private placement (QP: Gilles Laverdière, P.Geo. VP Exploration for PHOS)
Analyst Opinion: Positive – This financing follows an $11.5M equity raise completed last month. Proceeds from these financings will be used primarily for the feasibility study and permitting of the Bégin Lamarche phosphate project in Quebec, as well as downstream infrastructure development. PHOS is developing a vertically integrated supply chain for Lithium Iron Phosphate (LFP) batteries, covering the entire process from extracting high purity igneous phosphate to producing LFP cathode active material (CAM). A 2024 PEA reported an after tax NPV8% of $1.60B, and a robust after tax IRR of 33%, based on US$350/t igneous phosphate concentrate vs the current spot price of US$315/t. PHOS is trading at just 4% of its NPV.
