Value investing will always be synonymous with beaten-down stocks, with junior mining stocks in particular weighed down by a steep mismatch between shares and assets because of lack of liquidity, risk-off sentiment and the decade-plus commitment required to see a mine from exploration to production.
The seasoned investor will, of course, know that there are bargains to be had despite recent exponential returns, supposing you benefit from the long-term time horizon to see them materialize.
On the newest edition of Stockhouse’s Weekly Market Movers, we’ll learn about three junior mining stocks that have been ripping as of late, whose underlying operations seem to have what it takes to continue generating shareholder value into the future.
American Tungsten
American Tungsten, previously Demesne Resources, is a mining stock focused on acquiring and exploring magnetite properties. Here’s a rundown of its two projects, each of which is under a 100-per-cent option agreement:
- The 4,615.75-hectare Star project in British Columbia backs up its prospectivity with historical drilling to a depth of 150 ft indicating hundreds of thousands of tons of magnetite-bearing rock grading approximately 35 per cent iron, the main component in steel.
- The 1,988.6-hectare IMA mine project in Idaho, a past-producing underground tungsten and molybdenum mine, offers a pathway to near-term production thanks to extensive historical and ongoing exploration work.
Reflecting strong expectations surrounding steel and tungsten demand, American Tungsten stock (CSE:TUNG) has added over 2,500 per cent since optioning IMA in November 2023. Shares last traded at C$1.33 and are poised to climb higher should the company’s drilling efforts and active pursuit of government contracts bear fruit.
Ali Haji, American Tungsten’s chief executive officer (CEO), sat down with Lyndsay Malchuk to discuss his vision for the company. Watch the interview here.
Highland Copper Company
Our next high-flying junior mining stock, Highland Copper Company, is exploring and developing projects in Michigan’s Upper Peninsula. Here’s a breakdown:
- The Copperwood deposit’s 2023 feasibility study delineates a US$168 million after-tax net present value and average annual payable production of 64.6 million pounds of copper and 106,966 ounces of silver over a 10.7-year mine life.
- Highland Copper also owns a 34 per cent stake in the White Pine North project through a joint venture with Kinterra Copper USA, where a 2023 preliminary economic assessment substantiates an after-tax net present value of US$821 million and average annual payable production of 93.5 million pounds of copper and 1.2 million ounces of silver over a 21.8-year mine life.
With key economic studies signaling the value of its projects to the market, and new drilling for metallurgical testing at Copperwood well underway amid strong community support, shareholders seem as excited as ever about value-added developments to come.
Highland Copper stock (TSXV:HI) has added 233.33 per cent since 2020, last trading at C$0.10, adding multi-bagger leverage to the price of copper and its approximately 5 per cent gain over the period.
Formation Metals
Our third junior mining stock shooting for the moon is Formation Metals, a North American explorer with 67 per cent insider ownership dedicated to identifying and developing untapped critical metal properties. Here’s your final breakdown:
- The company’s flagship 4,400-hectare N2 project in Quebec’s Abitibi Greenstone belt (over 200 million ounces of gold produced) houses 877,000 ounces in historical non-compliant resources and six mineralized zones with evidence for expansion.
- Its 2,490-hectare Nicobat project in Ontario is no slouch either, offering exposure to a non-compliant resource of 5.3 million tons grading 0.25 per cent nickel, 0.14 per cent copper and 0.03 per cent cobalt.
Investor sentiment has been consistently building since the company listed in October 2024, catalyzed by the N2 acquisition and gold continuing to make new all-time-highs. As the 2025 field program at N2 gets off the ground, the market is likely in store for more positive news flow sweetening Formation Metals’ value proposition.
Formation Metals stock (CSE:FOMO) has added 192.86 per cent since inception in October 2024. Shares last traded at C$0.41.
Deepak Varshney, Formation Metals’ CEO, joined Lyndsay Malchuk to highlight the company’s new investor awareness campaigns. 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 last week’s article, in case you missed it.
Join the discussion: Find out what everybody’s saying about these high-returning junior mining stocks on the American Tungsten Corp., Highland Copper Company Inc. and Formation Metals Inc. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of American Tungsten Corp., Highland Copper Company Inc. and Formation Metals Inc., please see full disclaimer here.
(Top image, generated by AI: Adobe Stock)