Market Intel Weekly
See the Picks Behind Our Outperformance… Plus a New Opportunity
Published: Jule 06, 2026
Author: FRC Analysts
Disclosure: Articles and research coverage are paid for and commissioned by issuers, except for those listed under the “FRC Fair Value Model Picks” section. See the bottom for other important disclosures, and issuer-specific information.
*Disseminated on behalf of Zepp Health Corporation, Panoro Minerals, South Star Battery, Sonoro Gold, Millennial Potash, Star Copper, Southern Silver, Denarius Metals, Flagship Minerals, Monument Mining Limited, Olympia Financial, and Atrium Mortgage Investment Corporation.
* All figures are in C$ unless otherwise noted, except for commodity prices, which are in US$.
Equity markets extended their gains last week, supported by a weaker than expected U.S. jobs report, lower oil prices, and economic data pointing to moderating growth, which reinforced expectations that the Fed will keep interest rates unchanged. A weaker US$ boosted equities and metal prices, with basic materials, technology, and consumer cyclical leading the market, while communication services, utilities, and real estate were the worst performers.
Last week, our Top Picks portfolio returned 3.3% vs 2.7% for the benchmark (TSXV). Our picks have outperformed the benchmark across all seven tracked periods.
Last week, our Fair Value Model portfolio returned 1.6% vs 1.0% for the benchmark (NYSE Equal Sector Weight/EQL). Since inception on February 9, 2026, our picks have returned 6.8% on average vs 4.1% for the benchmark.
This edition features high-grade drilling success at Denarius Metals, exploration results supporting resource growth at Southern Silver, a portfolio-expanding acquisition by Star Copper, and the commencement of our due diligence on Flagship Minerals, which we believe offers compelling valuation upside.
*Past performance is not indicative of future performance.
Updates on Resource Companies Under Coverage
Denarius Metals Corp. (DMET.NE)
PR Title: High-Grade Drilling Supports Resource Growth at the Zancudo Gold-Silver project in Colombia
Qualified Person: Scott E. Wilson, CPG, Consultant for Denarius Metals
Analyst Opinion: Positive
Analyst Comment:
DMET is conducting a 15,000 m drill program targeting multiple areas to potentially upgrade inferred resources (lower-confidence category) and expand existing resources, supporting future production growth.
Initial results from four holes (660 m) at the Las Brisas target, an unmined portion of the existing resource, confirmed high-grade mineralization, reinforcing the continuity of known zones and supporting a potential resource upgrade. Notable intercepts include 1.2 m grading 7.43 g/t Au and 15 g/t Ag (including 0.3 m grading 28.7 g/t Au and 38 g/t Ag), and 1.0 m grading 8.36 g/t Au and 1,670 g/t Ag (including 0.3 m grading 27.8 g/t Au and 5,564 g/t Ag). These grades exceed the current resource average of 6.0 g/t Au and 84 g/t Ag, indicating potential for higher-margin production. Results from the program are expected to be incorporated into an updated resource estimate later this year.
The company continues to ramp up operations, producing 1.13 Koz of gold and 13.42 Koz of silver in the first five months of 2026, surpassing its entire 2025 output. DMET remains on track to complete construction of its 1,000 tpd processing plant, and commence full-scale production in the coming months.
Southern Silver Exploration Corp. (SSV.V)
PR Title: High-Grade Results Highlight CLM Expansion Potential (Mexico)
Qualified Person: Robert Macdonald, MSc. P.Geo., VP Exploration of Southern Silver
Analyst Opinion: Positive
Analyst Comment:
Underground sampling from the Puro Corazon mine, adjacent to SSV’s flagship CLM project, returned significant silver-polymetallic mineralization. Highlights include 2.8 m grading 757 g/t AgEq (silver equivalent), and 1.0 m grading 1,097 g/t AgEq, well above the 100–300 g/t AgEq of comparable projects.
While Puro Corazon is not yet included in the CLM resource, we believe these results, together with the promising 2024–2026 drill program that outlined a 400 m × 500 m mineralized footprint, demonstrate strong potential to expand the existing CLM resource. A larger resource could extend the project’s mine life and improve its overall economics.
A 2024 Preliminary Economic Assessment (PEA) reported an after-tax NPV5% of $1.3B based on $32/oz silver (spot: $63/oz). SSV currently trades at only 15% of its NPV, highlighting a significant valuation gap.
PR Title: Expands B.C. Copper-Gold Portfolio
Qualified Person: Jeremy Hanson, P.Geo., Consultant for Star Copper
Analyst Opinion: Positive
Analyst Comment:
STCU is acquiring a 100% interest in the Zymo, and a 95% interest in the Indata copper-gold projects in B.C., from Eastfield Resources for 10M shares valued at ~$10M. The acquisition expands STCU’s portfolio of B.C.-based copper-gold projects, adding over 20,000 m of historical drilling, multiple drill-ready targets, and two advanced-stage exploration assets while complementing its flagship Star project.
While neither project hosts an NI 43-101 independent resource, historical drilling at Zymo returned up to 72 m grading 0.72% Cu and 0.66 g/t Au, at the higher end of comparable projects.
It is too early to assess the projects’ potential or the attractiveness of the acquisition terms, but we believe the projects warrant further exploration given their extensive historical work, encouraging drill results, and the fact that the acquisition requires no cash outlay.
Flagship Minerals Limited (FLG.AX)
PR Title: An Undervalued Gold-Copper Opportunity
Qualified Person: Luis Rodrigo Peralta FAusIMM (CP) Geo., Consultant of Flagship Minerals
Analyst Opinion: Positive
Analyst Comment:
We have commenced due diligence on FLG and expect to initiate coverage in the coming weeks. The company has been on our radar for some time, as it consistently ranks among the most undervalued gold-copper juniors based on EV/resource metrics.
Flagship provides exposure to both gold and copper. Although both metals have pulled back from recent highs, we remain bullish on their outlook.
Source: FRC
The company owns two projects: the Isidora gold project in Chile and the Whipsaw copper project in B.C. Both assets are located in prolific mining jurisdictions alongside major producers and benefit from strong infrastructure.
Source: FRC / Company
We see strong similarities between Flagship’s projects and the two regional success stories below that we identified early, as the first research firm to initiate coverage on both companies. While we are not suggesting Flagship will achieve similar results, we believe the company offers meaningful upside potential based on the drilling and exploration completed to date.
Source: FRC
Share Ownership: CEO Paul Lock is the company’s largest shareholder, owning 22% of the company. Insiders collectively own 41%, demonstrating strong alignment with shareholders.
Valuation: With a MCAP of $59M and an enterprise value of $57M, we note that FLG is trading at $20/oz of contained gold, well below the typical $80–$120/oz valuation range for comparable gold juniors, suggesting significant valuation upside.
Our upcoming initiation report will provide a detailed review of the company’s portfolio, management’s strategy to advance its projects, and our comprehensive valuation, including a fair value estimate.
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