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The Market Online
3 days ago
- Business
- The Market Online
Three commodity stocks to strengthen inflation protection
As the economy braces for the full effect of US tariffs, the threat of inflation is looming large once again, potentially putting your stocks at risk as higher costs are absorbed across the supply chain. While nothing will combat inflation as effectively as increasing your income, investors looking for an added edge still have serviceable options at their disposal. Broadly speaking, they are: Aligning their portfolios with undervalued stocks positioned to deliver significant upside, driven by attractive operations and pessimistic share prices. Increasing their allocations to stocks that stand to benefit from inflation, including commodity stocks, whose target materials will increase in price in line with inflation, placing a higher floor on overall returns. In an ideal world, investors keen on more commodity exposure would seek out companies that fit both categories, supercharging their potential to outperform inflation and more efficiently meet their long-term financial goals. They would also maintain an allocation to commodities of at least 10 per cent, in line with the global market capitalization, as calculated by Visual Capitalist, with energy and materials each representing about a 5 per cent share, to ensure a proportional contribution to overall returns. Additionally, they would diversify, well aware that commodities operate on different cycles, subject to idiosyncratic demand drivers, even though inflation is a net benefit to spot prices across the board. With this framework in mind, in the latest edition of Stockhouse's Weekly Market Movers, I'll profile three stocks, active in the oil, gold and cannabis industries, respectively, that appear to be underpricing their underlying assets, operations and inflation-protecting potential. We kick off our crusade against inflation with Fiddlehead Resources, an Alberta-based oil and gas producer with pro-forma production of 3,850 barrels of oil equivalent per day (boe/d) and proved developed producing reserves valued at C$80.2 million, more than 13x the company's C$6.05 million market capitalization. Fiddlehead, listing only in September 2024, generated C$3.96 million in oil and natural gas sales in Q1 2025, but did not do so profitably, locking in a net loss of C$2.49 million, explaining why the stock has given back 28.47 per cent since inception. While worth monitoring, this trend should begin to shift as the company's recent acquisition of 2,238 boe/d near Cynthia, Alberta, shows up on the income statement, adding an expected C$10.1 million in net operating income for the year ending July 1, 2026, as well as contributing to increasing reserves through 9 well recompletion candidates and 7 identified unbooked drilling locations. With oil demand expected to continue its ascent into 2029, according to the International Energy Agency, and the need for new production likely to persist for decades after that, as per an OPEC report, Fiddlehead is well-positioned to scale into better pricing power and stronger financials to justify a higher stock price. Brent Osmond, Fiddlehead Resources' chief executive officer (CEO), sat down with Stockhouse's Lyndsay Malchuk last week to discuss the Cynthia acquisition and the company's Q1 2025 results. Watch the interview here. Fiddlehead Resources stock (TSXV:FHR) last traded at C$0.10. Vista Gold Next in our trio of inflation-fighting commodity stocks, we have Vista Gold, market capitalization C$177.69 million, whose permitted Mt. Todd project in Northern Territory, Australia, stands as one of the country's largest development-stage gold deposits with measured and indicated resources of 9.1 million ounces. Mt. Todd yielded a 2025 feasibility study detailing an after-tax net present value of US$2.2 billion, a 1.7-year payback and capital costs of only US$425 million at US$3,300 per ounce of gold. Pending ongoing development and successful construction, this means that investors today can buy a stake in after-tax project cash flows expected to reach almost US$5 billion over a 30-year mine life at the low price of C$170.18 million. This is as enticing proposition with exponential upside, so long as the gold price holds at current levels, and over the near-term, J.P. Morgan, Fidelity and Goldman Sachs think it will, predicting a US$4,000 ounce by as soon as year end. With Mt. Todd's growth runway still largely untrodden, as highlighted by four targets on the 24 kilometre Batman Driffield Trend with the potential to add 1.8-3.5 million ounces to the resource, and management focused on improvements to enhance market appeal backed by US$15 million in cash as of Q1 2025 – including fine-grinding optimization, geotech grilling and pit slope refinement, and desktop studies of expansion alternatives – expect the project to continue delineating more value for the market, supporting Vista's operational leverage beyond its target commodity. Investors have been hopping onto our thesis as of late, more than doubling Vista Gold stock (TSX:VGZ) year-over-year to C$1.42, though shares remain down by about 16 per cent since 2020, despite's gold's approximately 70 per cent return over the period. Frederick H. Earnest, Vista Gold's president and CEO, joined Coreena Robertson to set investor expectations about the company's near-term development plans. Watch the interview here. Herbal Dispatch Our third and final commodity stock to counteract inflation is Herbal Dispatch, market capitalization C$3.68 million, an owner and operator of cannabis e-commerce platforms specializing in small-batch craft flower and a diversity of other product formats, with relationships in legal markets across the world including Australia, Portugal and Brazil. Herbal Dispatch has posted significant revenue growth over the past few years, delivering a 110 per cent increase from C$4.74 million in 2023 to C$9.92 million in 2024, followed by a more than 100 per cent YoY increase to C$2.7 million in Q1 2025 thanks to strong contributions from the recreational, export and services segments. Net losses have been improving in tandem, decreasing from C$4.61 million in 2022 to C$2.77 million in 2024, with a net loss of only C$290,000 ending Q1 2025, setting operations up for further progress on the cannabis retailer's path to profitability. This kind of tangible financial progress is especially impressive, given the widespread bankruptcies and consolidations that have beset the global cannabis market because of oversupply, unsupported growth and margin compression, making Herbal Dispatch's growing user base an increasingly essential asset for smaller players, as well as a potential acquisition target for major brands keen on conserving their leadership positions. Management will spend the rest of 2025 focused on efficient scaling and new strategic revenue streams in Canada and abroad. The company is currently fielding numerous expressions of interest to export its products, opening the door for improved financials and a stock re-rating in the second half of the fiscal year. According to Herbal Dispatch's investor deck, it's estimating that it will generate at least C$18.6 million in revenue in 2025, followed by C$26.3 million in 2026, supported by robust EBITDA growth of almost 300 per cent to at least C$1.7 million, continuing to prove out a business capable of creating value from a deflated commodity. Look for Herbal Dispatch stock (CSE:HERB) to start to retrace its 55 per cent loss since 2023, contingent on the global cannabis market finding its way back to the mammoth growth expected through 2030, and the company continuing to deliver on what since inception has been an unwavering commitment to profit as a conduit to shareholder value. Shares last traded at C$0.045. Philip Campbell, Herbal Dispatch's CEO, joined Lyndsay Malchuk to contextualize the company's ongoing C$1 million private placement. Watch the interview here. Thanks for reading! I'll see you next week for a new edition of Weekly Market Movers, where I delve into companies that sat down with Stockhouse for an interview over the past week. Here's the most recent article, in case you missed it. Join the discussion: Find out what investors are saying about these inflation-protecting commodity stocks on the Fiddlehead Resources Corp., Vista Gold Corp. and Herbal Dispatch Inc. Bullboards and check out the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
The Market Online
04-08-2025
- Business
- The Market Online
Three micro-cap stocks tracking cutting-edge technology
The potential for cutting-edge technology stocks to deliver exponential returns often leads investors astray, tempting them with the glamour of ownership to such a degree that any sense of valuation goes out the window. This content has been prepared as part of a partnership with Cheelcare Inc., Corp. and Fineqia International Inc., and is intended for informational purposes only. This instinctual phenomenon, known in behavioral finance as herd mentality, can lead to unsustainable run-ups in valuation, where a company far outshoots its given technology's tailwind, well beyond what its income statements can substantiate, opening investors up to steep losses once the company fails to keep up with expectations. To avoid this outcome and populate their watchlists with an optimized candidate mix, it stands to reason that investors should keep blind belief at bay through a focus on fundamentals, grounding their exposure to cutting-edge technology in business health and long-term, high-conviction growth runways. To get your watchlist started, in the newest edition of Stockhouse's Weekly Market Movers, I'll analyze three future-facing technology companies through a fundamental lens, revealing how each makes a data-driven case for a positive investment outcome. Cheelcare Our first technology stock to consider is Cheelcare, market capitalization C$20.02 million, an Ontario-based mobility technology developer catering to people with physical disabilities. The company's award-winning product suite includes cutting-edge robotic power wheelchairs, power add-ons for manual wheelchairs, as well as advanced wheelchair accessories such as a rearview camera, each designed to meaningfully enhance how users interact with the world. Cheelcare is overseen by a management team specialized in software, medical devices, transportation, occupational therapy and capital raising, an ideal mix to keep operations aligned with client care and shareholder value in equal measure. While the company listed on the TSXV only on July 16, and has yet to release its first public quarterly results, the stock seems to have normalized around the C$1 mark, following an initial pop, making it one to watch should the company translate the meeting of unmet needs among the wheelchair bound into evidence of a path to profitability. To this end, players in the global wheelchair market stand to benefit from a hefty 7.2 per cent compound annual growth rate through this decade, reaching US$8.4 billion in value by 2030. Founder and chief executive officer (CEO), Eugene Cherny, spoke with Stockhouse's Lyndsay Malchuk about the reasoning behind going public. Watch the interview here. Cheelcare stock (TSXV:CHER) last traded at C$1.02 and has added 3.03 per cent since inception on July 16. Our next cutting-edge technology stock with tangible potential, market capitalization C$13.67 million, specializes in AI-powered 3D modeling and spatial computing, helping a growing roster of enterprise and e-commerce clients – including Amazon and Shopify – drive engagement through scalable modeling, immersive product visualization and customizable digital spatial experiences. The company recently released its financial results for the 15 months ended March 2025, showing robust evidence of being on a path to profitability, achieving: A 55 per cent increase in gross profits to C$2.24 million. Gross margin growth from 29 to 64 per cent thanks to improving unit economics and a shift towards more scalable SaaS and bundled models. A 58 per cent reduction in operating cash burn to C$5.56 million. A 56 per cent reduction in adjusted operating loss to C$6.07 million. A 55 per cent reduction in sales and marketing expense to C$2.03 million. A 41 per cent decrease in general and administrative expenses to C$4.5 million. According to Wednesday's news release, management expects this efficiency to continue gaining traction over the near term thanks to a 'cost structure aligned to support recurring revenue growth with reduced dependence on variable production models.' This cost structure, in turn, positions the company to 'drive margin-accretive growth, capture recurring revenue opportunities and create long-term value for shareholders in fiscal 2025 and beyond.' When we look farther back into Nextech's income statements, we find evidence of this plan in motion, with reductions in SG&A expenses as well as long-term debt extending back to 2021, and net income loss improving every year from C$32.65 million in 2021 to C$5.18 million in the fiscal year ended December 2024. The broader market vehemently disagrees, with stock (CSE:NTAR) having given back 15 per cent year-over-year and 98.62 per cent since 2020, last trading at C$0.085, which should be making bells and whistles go off in the heads of readers that identify as contrarian investors. Readers interested in learning more can check out Evan Gappelberg, CEO, in conversation with Lyndsay Malchuk about the company's progress at the intersection of AI, 3D modeling and e-commerce. Watch the interview here. Fineqia Our final boundary-pushing technology stock is Fineqia, market capitalization C$8.25 million, which is building a portfolio of investments and European-listed exchanged-traded products focused on blockchain and cryptocurrency, both key drivers towards a more equitable global financial system that strips power from institutions and reorients it towards the individual. Here's a breakdown: The Fineqia FTSE Cardano Enhanced Yield exchange-traded note (ETN) provides exposure to the ADA token, the cryptocurrency powering the Cardano blockchain network, one of the largest and most well-respected in the industry, which is known for peer-reviewing projects before onboarding them. The ETN has garnered €23.7 million in assets under management and targets a 7 per cent annual yield by providing liquidity to the Cardano ecosystem. The Fineqia Bitcoin Yield exchange-traded product (ETP) allows investors to earn yield denominated in Bitcoin, the largest and most popular cryptocurrency, while building a coin balance that compounds over time. The ETP has accumulated €11.6 million in assets and aims for a 6 per cent annual yield. The company also provides exposure to private and early-stage deal flow through more than a dozen direct and indirect investments active in gaming, non-fungible tokens, enterprise cloud, money exchange and high-precision positioning, each of them making novel use of blockchain technology to add value beyond legacy competitors. Fineqia differentiates itself from most pure-play crypto companies because it doesn't have to rely exclusively on raising capital, taking on debt or selling assets to bankroll future growth plans. Rather, its funds generate management fees, providing it with a source of cash flow to take advantage of strategic opportunities and built revenue supported by crypto's evolving but improving long-term growth prospects. The company's management team also brings clearly value-accretive experience to the table, with chairman Martin Graham serving as director of markets and head of AIM at the London Stock Exchange from 2003 to 2009, overseeing 1 in 4 of all global initial public offerings during his tenure, while CEO Bundeep Singh Rangar has long been active in the venture capital space with a focus on insurance and digital assets, attracting funding from the likes of Rakuten, Tim Draper, Madison Dearborn, Morgan Stanley, as well as the Thomson family of Thomson Reuters. Despite a growing portfolio, revenue generation and executives deeply familiar with separating solid value propositions from story and hype, Fineqia stock (CSE:FNQ) is down by 50 per cent since 2020, last trading at C$0.005, presenting investors with a data-driven chance to transform broader market reluctance into the harvesting of substantial upside, contingent on blockchain and cryptocurrency settling into stable, long-term use cases. Rangar joined Lyndsay Malchuk for episode 13 of Stockhouse's Contributors Corner, where they cover the ins and outs of the ongoing shift towards corporate Bitcoin treasuries. Watch the interview here. Thanks for reading! I'll see you next week for a new edition of Weekly Market Movers, where I delve into companies that sat down with Stockhouse for an interview over the past week. Here's the most recent article, in case you missed it. Join the discussion: Find out what investors are saying about these cutting-edge technology stocks on the Cheelcare Inc., Corp. and Fineqia International Inc. Bullboards and check out the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
The Market Online
25-07-2025
- Business
- The Market Online
Two gold stocks trending higher thanks to disciplined development
The price of gold has been on a heater as of late, adding about 40 per cent or US$1,000 per ounce year-over-year, increasing the prospectivity of gold exploration, development and production stocks by affording them a more richly priced commodity. The rising tide has by no means lifted all boats, especially among junior miners and developers, where financing difficulties are often more pronounced, but a generalized upswing is taking place and investors are beginning to take notice. To take advantage of this upswing prudently, it's essential to match a stock's stellar performance with the assets and achievements of its underlying company, analyzing whether or not they correspond and offer any insights into future operations. In the newest edition of Stockhouse's Weekly Market Movers, I'll introduce you to a pair of gold stocks that have earned their strong year-over-year returns through value-accretive development. This content has been prepared as part of a partnership with Canagold Resources Ltd. aand Finex Metals Ltd., and is intended for informational purposes only. Canagold Resources First in our gold stock duo is Canagold Resources, market capitalization C$84.67 million, a mine developer focused on bringing its flagship New Polaris project in British Columbia into production. According to its July 2025 feasibility study, New Polaris holds an estimated after-tax net present value of US$793 million at a base case of US$3,300 per ounce of gold, with initial capital costs of only US$181 million, and is expected to average 100,000 ounces in annual production from years 2-8. The project's 2025 mineral estimate details 904,400 ounces in probable reserves, 1,107,000 ounces indicated and 266,000 ounces inferred, representing more than US$7.6 billion in gold in the ground. This is in addition to nearly 7,000 tons of antimony, which is trading at more than US$20,000 per ton, representing more than US$140 million in potential revenue. When we look over press releases from the past 12 months, it's easy to see why Canagold stock (TSX:CCM) has delivered a 64.29 per cent return year-over-year. The positive news flow began with initial high-grade expansion drilling results in July and August 2024, continued on with environmental permitting progress in October, and was followed by the identification of economical antimony on the property in January and February 2025. A C$3.22 million financing followed in March to support New Polaris' path to production, leading us to the aforementioned feasibility study. With a robust project under its control, a soaring gold price, advanced permitting and numerous financing discussions underway expected to reach final decisions in 2026, Canagold's leadership team, awash in related gold mining experience, is set up to carry on with business as usual, nudging the share price higher with New Polaris' next milestones. Catalin Kilofliski, Canagold's chief executive officer (CEO), joined Stockhouse's Lyndsay Malchuk to offer insights on New Polaris' new feasibility study. Watch the interview here. Our second upward-trending gold stock worth highlighting is Finex Metals, market capitalization C$18.53 million, a gold explorer operating a royalty free, 100-per-cent-owned portfolio in Finland's Central Lapland Greenstone Belt. Finex's flagship Ruoppa project is adjacent to Agnico Eagle's Kittilä mine, the largest gold mine in Europe, and resides near the land that hosts Rupert Resources' recent US$1.7 billion Ikkari discovery, backing up its own prospectivity with trench samples as high as 95.1 grams per ton (g/t) of gold, as well as 2,700 metres of anomalous gold featuring multiple high-grade targets. About 70 per cent of Ruoppa remains unexplored. The rest of Finex's portfolio – including the Luova, Kero, Tulppio and Ukko projects – boasts historical sampling or drilling meriting follow-up exploration, granting Finex's leadership team, de-risked by robust gold Finland-based experience and 39 per cent insider ownership, plenty of fuel to drive positive news flow. A summer field program at Ruoppa is now underway, following a C$4.3 million financing in April and a recently completed ~140 km² drone magnetic survey to aid in targeting and geological interpretation. Remaining tasks on the docket include: Surface sampling (~500 samples). Top-of-bedrock drilling (~500 samples). Trenching (~1,200 metres). Diamond core drilling (2,500 metres) beginning in early August to test zones of high-grade quartz veining discovered in 2024. The program follows a 2024 exploration campaign that yielded 1,986 top-of-bedrock drilling samples revealing numerous priority targets, with assays coming in as high as 4.2 g/t gold (including widespread pathfinder elements), as well as 52 of 263 grab samples from trenches over known anomalies that returned more than 1 g/t gold, including the 95.1 g/t sample cited earlier. With multiple avenues to increase Ruoppa's attractiveness to the market and the ability to deliver results over the near term, Finex is in a strategic position to capitalize on high gold prices through exploration upside. The market has recognized this position by rewarding investors in Finex stock (TSX:FINX) with a 34.78 per cent return to date, even though the company only listed on June 18, setting an optimistic tone for the summer. Tero Kosonen, Finex Metals' chairman and CEO, sat down with Lyndsay Malchuk to speak about ongoing exploration at the Ruoppa gold project. Watch the interview here. Thanks for reading! I'll see you next week for a new edition of Weekly Market Movers, where I delve into companies that sat down with Stockhouse for an interview over the past week. Here's the most recent article, in case you missed it. Join the discussion: Find out what investors are saying about these gold stocks on the Canagold Resources Ltd. and Finex Metals Ltd. Bullboards and check out the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
The Market Online
27-06-2025
- Business
- The Market Online
Top-performing small-cap stocks through mid-2025
This article is written on behalf of Orestone Mining Corp., Goldquest Mining Corp., Voyageur Pharmaceuticals Ltd., Santacruz Silver Mining Ltd. and Almonty Industries Inc., and is for informational purposes only. Please see full disclaimer here. Among the 47 stocks that have graced the stage in Stockhouse's Weekly Market Movers in 2025, as of June 26, a choice few stand out for their differentiated returns year-to-date (YTD), shrugging off an environment of extreme economic uncertainty driven by Trump's tariffs, lingering inflation and ongoing wars in Europe and the Middle East. Here are the top-five stocks on the list, in all their outperforming glory, having bested the TSX Index's 7.17 per cent return YTD by between 20.9 times and 38.6 times: Orestone Mining (TSXV:ORS), C$5.92 million market capitalization, 150 per cent return YTD. Goldquest Mining (TSXV:GQC), C$266.79 million market capitalization, 185.71 per cent return YTD. Voyageur Pharmaceuticals (TSXV:VM), C$44.74 million market capitalization, 188.89 per cent return YTD. Santacruz Silver Mining (TSXV:SCZ), C$348.74 million market capitalization, 228.33 per cent return YTD. Almonty Industries (TSX:AII), C$1.12 billion market capitalization, 277.72 per cent return YTD. Data as of June 26, 2025. Let's take a closer look at these small-cap stocks to clarify why they've performed so well as of late and how investors should begin to size up a potential allocation. 5. Orestone Mining Our first top-performing small-cap stock, Orestone Mining, featured in the February 21 edition of Weekly Market Movers, is advancing a property portfolio prospective for gold, silver and copper in Canada and Argentina. Here's a breakdown: The flagship Francisca property in Argentina holds promise for an oxide gold deposit mineable by open pit and heap leach recovery. The Captain gold-copper project in B.C. hosts a large primarily gold porphyry system that is both permitted and drill ready. Finally, the Las Burras property in Argentina adds large-scale copper exposure backed by historical drilling up to 296 metres grading 0.18 per cent copper, 0.042 parts per million (ppm) gold and 0.006 per cent molybdenum. The company ties it all together with a management team whose track record precedes it, having been involved in identifying, acquiring, developing and/or producing a combined 14 gold and silver deposits and mines. Why is Orestone stock in an upswing? Orestone has been enjoying strong momentum in 2025 thanks to acquiring the Francisca property in February, quickly complementing this milestone with encouraging sampling in March. This was followed up with a value-accretive institutional investment from Crescat Capital closed in June, which will help the company to advance Francisca closer to production, capitalize on record gold prices and potentially generate further shareholder value. 4. Goldquest Mining GoldQuest, featured in the May 2 edition of Weekly Market Movers, is a mineral exploration and development company active on projects in the Dominican Republic. Its flagship Romero gold-copper discovery produced a 2016 pre-feasibility study detailing an after-tax net present value of US$203 million based on a gold price of US$1,300 per ounce and US$2.50 per pound of copper, both comfortably below prices of US$3,328 and US$5.04, respectively, as of June 26. The project is estimated to house 840,000 ounces of gold in probable reserves, almost two million ounces in resources, as well as value-added copper, zinc and silver kickers. The broader Tireo project, which includes Romero, consists of a 50-kilometre-long land package with little in the way of historical drilling and an abundance of highly prospective targets supported by mapping, sampling and surveying. With C$15 million in cash as of January 2025, support from major shareholder Agnico Eagle Mines, and a leadership team with major miner experience well-versed in the Dominican mining industry, Goldquest is primed for delivering more market-pleasing grades as it inches its way towards production. Why is Goldquest stock in an upswing? The top-performing stock has been accelerating with positive momentum in 2025 thanks to ongoing exploration, initiated in April, with a wealth of avenues through which to tease out exploration upside. Exploration will be bankrolled by an ongoing C$16.2 million financing (C$10.7 million closed), which will also fund the finalization of a bankable feasibility study at Romero expected by year end. 3. Voyageur Pharmaceuticals Voyageur, featured in the January 10 edition of Weekly Market Movers, develops and commercializes barium and iodine active pharmaceutical ingredients for reliable and low-cost imaging contrast agents. The small-cap stock, earning the middle spot on our list, is rapidly making inroads into an estimated US$6.3 billion market – which is expected to hit US$12.6 billion by 2032 – having passed human trials for its barium contrast products with flying colors, successfully introducing them to the market this past April. Voyageur's first commercial sale followed soon after in June, demonstrating its revenue-generation capabilities and driving the company to ramp up sales and distribution efforts, most recently highlighted by: As per its investor presentation for June 2025, Voyageur intends to become the first vertically integrated company in the radiology contrast media drug market, offering much-needed competition for market leaders China and India. The foundation for this goal, Voyageur's Frances Creek project in B.C., is home to an estimated 120,000-ton barium sulfate resource valued at C$344 million, representing 50 years of production, which the company believes it can produce at 10x lower cost than legacy methods. Why is Voyageur stock in an upswing? Besides the obvious catalysts of positive human trials, initial revenue and partnerships geared towards vertical integration, there has been a confluence additional factors nudging Voyageur stock higher in 2025. These include initial ore processing at Frances Creek, advancements towards potentially game-changing MRI contrast agents, as well as multiple instances of non-dilutive funding from warrant exercises and Alberta Innovates. 2. Santacruz Silver Mining Santacruz Silver, featured in the February 14 edition of Weekly Market Movers, is in the business of acquiring, exploring and developing mineral properties in Latin America. In Bolivia, the company operates the producing Bolivar, Porco and Caballo Blanco mining complexes, as well as the Reserva mine and the Soracaya exploration project, with current resources of more than 290 million ounces of silver equivalent (AgEq) and reserves standing at more than 53 million ounces AgEq. In Mexico, Santacruz operates the producing Zimapán mine, which achieved record annual production of 4.4 million ounces AgEq in 2024. Collectively, these properties produced 1,590,063 ounces of silver, 20,719 tons of zinc, 2,718 tons of lead and 279 tons of copper in Q1 2025, generating net income of US$9.5 million. This marks Santacruz Silver's fifth-straight quarter with positive results under the metric, following US$29.86 million in Q4 2024, US$4.06 million in Q3 2024, US$1.54 million in Q2 2024 and US$132.66 million in Q1 2024. Armed with about C$47 million in cash on hand and all-in sustaining costs of only US$22.34 per silver equivalent ounce sold as of Q1 2025, Santacruz is in a strong position to meet its goals for the year, including improving recovery rates and reducing costs in Bolivia, as well as enhancing concentrate quality and optimizing processing operations in Mexico. Why is Santacruz Silver stock in an upswing? In the stock market, there's really no better proof of deserving a higher share price than growth and profitability, and Santacruz has delivered on both counts, reaching profitability in Q1 2024, and growing revenue by 8.5x from US$33.1 million in 2020 to US$282.99 million in 2024. The top-performing stock's efficient operations and generational silver resources and reserves point to continued strength, contingent on silver prices holding on to their newfound heights, last trading at more than US$36 per ounce, having gained about 25 per cent year-over-year and about 105 per cent since 2020. 1. Almonty Industries Almonty Industries, featured in the January 31 edition of Weekly Market Movers, is a global tungsten producer disrupting China's dominance of more than 80 per cent of the market for the critical metal, which currently trades at about US$45 per kilogram and offers applications spanning the mining, construction, auto, aerospace, chemical, electronics and military sectors. Here's a portfolio breakdown: Almonty's producing Panasqueira mine in Portugal hosts 22.5 million tons in mineralized resources and reserves and has been in production for more than 136 years. The mine is expected to almost double annual revenue to about US$40 million and production to 124,000 metric ton units (MTU) of tungsten trioxide (WO3) after ongoing upgrades to be finalized in 2027. For reference, one MTU is equal to 10 kilograms. Its Sangdong tungsten mine in Gangwon Province, South Korea, is slated to begin production in 2025 at estimated start-up capex of only US$120 million and cash costs of US$110 per MTU. The property houses one of the largest and highest-grade tungsten deposits in the world, coming in at 36,000 tons of WO3 reserves, 41,000 tons measured and indicated and 218,000 tons inferred. Sangdong also offers value-accretive upside from a molybdenum deposit on the property. Offtake agreements are in place for both metals. The pre-feasibility stage Valtreixal tin/tungsten project in northwestern Spain hosts proven and probable reserves of 9,000 tons, 10,000 tons measured and indicated and 26,000 tons inferred. Initial capex to get the project up and running is estimated at US$42 million, with annual revenue up to US$24 million over five years under the pre-feasibility model. Finally, the Los Santos mine in western Spain, under care and maintenance, adds another 7,000 tons WO3 in resources and reserves to Almonty's growing contribution to the global tungsten supply chain. With production at Sangdong around the corner, U.S. processing ongoing in Buffalo and soon Pennsylvania, as well as effusive support from the U.S. Congress, Almonty is well on its way to fulfilling its goal of controlling 7 per cent of global tungsten supply and 40 per cent of non-Chinese supply by 2027. Why is Almonty Industries stock in an upswing? Looking through Almonty's 2025 news releases, we see the company strategically strengthen its conflict-free tungsten thesis by redomiciling to the United States, securing a partnership with a top firm to build government relations, and signing offtake agreements for tungsten with Tungsten Parts Wyoming and molybdenum with major player SeAH Group. As Almonty ramps up production, current net losses – C$34.6 million in Q1 2025 – will have to show signs of decreasing and eventually turn positive, as operations benefit from greater pricing power, for the top-performing stock to maintain and build upon its recent meteoric rise. On a final note While markets have been somewhat stunned by tariffs through the first half of 2025, and remain cautious moving forward as trade deals progress at a glacial pace, the case is always strong for value creation being stock prices' ultimate arbiter, whether that's on the income statement, through exploration results, or through strategic deals that de-risk the future. I believe the five companies profiled above are a reflection of this fundamental tenet, and it's my intention for the dozens to come in 2025 to be a reflection of it too. Thanks for reading! I'll see you on July 18 for a new edition of Stockhouse's Weekly Market Movers. Here's the most recent article, in case you missed it. Join the discussion: Find out what everybody's saying about these top-performing small-cap stocks on the Orestone Mining Corp., Goldquest Mining Corp., Voyageur Pharmaceuticals Ltd., Santacruz Silver Mining Ltd. and Almonty Industries Inc. Bullboards and check out Stockhouse's stock forums and message boards.
The Market Online
21-06-2025
- Business
- The Market Online
Two rebounding stocks for the long run
While many investors are fond of bowing down to market fluctuations as gospel, the mostly unspoken truth is that rebounding stocks, as well as those in precipitous downfalls, require supporting facts for these fluctuations to qualify as rational. In other words, a stock's spike up or down speaks to its underlying company's valuation only if there's evidence for it. In its absence, the market's bipolar tendencies might be offering you a discount to build a position, or overvaluation to make a profitable exit. In its presence, you're the beneficiary of a data-driven investment thesis and can begin to hash out expectations in terms of time horizon and expected return. In the newest edition of Stockhouse's Weekly Market Movers, I'll analyze a pair of rebounding mining stocks supported by operations that seem to have what it takes to ramp up momentum moving forward. Atlas Salt Our first rebounding stock, Atlas Salt, market capitalization C$47.67 million, is developing the Great Atlantic salt project in Newfoundland, which is positioned to be Canada's next salt mine. The feasibility-stage project holds an estimated post-tax net present value of C$553 million, offering the potential for a 34-year operating life extracting about 84.5 million tons of salt in probable reserves, in addition to resources of 368 million tons indicated and 827 million tons inferred. According to Atlas Salt's investor presentation for June 2025, the price of U.S. rock salt imports has more than doubled since 2000 to over US$65 per ton, with North America importing about a quarter of its salt annually, granting the company plenty of room to capitalize on the ongoing trend of onshoring critical material supply chains. At total capital costs of C$1.1 billion, with a payback period of only 5 years, Great Atlantic is rapidly advancing towards production through permitting and an updated feasibility study to further validate project economics for investors and offtake partners. An initial non-binding memorandum of understanding with Scotwood Industries targets distribution of 1.25 to 1.50 million tons of salt products per year. Atlas Salt stock (TSXV:SALT), in turn, has bounced back by 36.11 per cent from its year-to-date low, largely driven by the upcoming feasibility study and the hiring of a new CEO and CFO that bring ample experience with major miners and financial institutions. I think a handful of priorities in 2025 are likely to keep pushing the stock up and to the right, including advancing regulatory compliance, geotechnical and hydrological site evaluation, potential production expansion, as well as the conversion of a pipeline of strategic partnerships into initial revenue. Nolan Peterson, Atlas Salt's CEO, spoke with Stockhouse's Lyndsay Malchuk about the new feasibility study, which is expected in Q3 2025. Watch the interview here. Kootenay Silver Our second rebounding stock, Kootenay Silver, market capitalization C$74.89 million, is a mineral explorer that controls one of the largest junior silver portfolios in Mexico, which Visual Capitalist ranks as the world's top silver-producing country. The company's portfolio is highlighted by: Its flagship Columba project, housing a maiden resource estimated at 54.1 million ounces in silver resources inferred. The Promontorio-La Negra and La Cigarra properties, representing a collective 214.2 million ounces of silver equivalent measured and indicated and 54.9 million ounces of silver equivalent inferred. At prices as of June 20, these properties are sitting on more than US$11.6 billion in silver in the ground combined, a sum on a completely different plane of existence versus the company's micro market capitalization. And with Kootenay stock up by only 2.56 per cent year-over-year, heavily trailing silver's 20 per cent gain, you wouldn't exactly intuit the company's multi-billion-dollar potential, or the fact that its operations are well-equipped to close this valuation-resource gap in a significant way. Key drivers behind this thesis include: A leadership team with success developing early-stage mining projects into acquisition-worthy targets. A C$17.4 million bought-deal offering with Research Capital expected to close on June 25 to further advance Columba, with funds going towards an ongoing 50,000-metre drilling program that has yielded numerous intercepts in the thousands of grams of silver per ton (g/t) with numerous high-grade targets still to be explored. An abundance of targets on its secondary properties waiting in the wings to add fuel to a bid for a stock price re-rating. An approximately 5 per cent investment from Canadian Mining Hall of Fame member Eric Sprott doesn't hurt either, in terms of differentiating the company from competitors when it comes to future capital raises. Over the past month-and-a-half, the market has been showing early signs of recognizing the value proposition we're laying out, with Kootenay stock (TSXV:KTN) adding more than 30 per cent over the period propelled by Columba's maiden resource, as well as a highlight intercept of 7,360 g/t silver and 30.57 per cent lead-zinc announced in early May. With exploration capital nearly in hand, look for positive news flow over the summer to continue fostering this upward trend and building awareness of Kootenay's major status among junior silver miners. James McDonald, Kootenay Silver's president and CEO, joined Coreena Robertson to comment on Columba's maiden resource estimate. Watch the interview here. Thanks for reading! I'll see you next week for a new edition of Stockhouse's Weekly Market Movers. Here's the most recent article, in case you missed it. Join the discussion: Find out what everybody's saying about these rebounding stocks on the Atlas Salt Inc. and Kootenay Silver Inc. Bullboards and check out Stockhouse's stock forums and message boards. This is sponsored content issued on behalf of Atlas Salt Inc. and Kootenay Silver Inc., please see full disclaimer here.
