Market Intel Weekly
A New AI Infrastructure Opportunity & Resource Picks
Published: May 25, 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 Fortune Minerals, Giga Metals, Panoro Minerals, Denarius Metals, Trident Resources, Chilean Cobalt, Sonoro Gold, West High Yield Resources, Kingman Minerals, Coniagas Battery Metals, and BluSky AI Inc.
* All figures are in C$ unless otherwise noted, except for commodity prices, which are in US$.
Last week, companies on our list of FRC Top Picks returned -3.2% on average vs +0.7% for the benchmark (TSXV). Our picks have outperformed the benchmark in five of the seven listed time periods.
Last week, companies on our list of FRC Model Picks returned +0.2% on average vs +1.0% for the benchmark (NYSE Equal Sector Weight/EQL). Since inception on February 9, 2026, our picks returned +6.9% on average vs +3.2% for the benchmark.
Equity markets were mixed last week as investors balanced defensive positioning with selective buying in growth sectors amid ongoing uncertainty around interest rates, economic growth, and global trade conditions. Healthcare and Communication Services outperformed, while Energy, Basic Materials, and Industrials lagged due to weaker oil and commodity prices, and concerns around slowing global growth. Looking ahead, investor focus is expected to remain centered on inflation data, central bank commentary, economic indicators, and developments in the Middle East.
In this edition, we discuss key developments from companies under coverage, including a student housing company, and junior resource companies targeting cobalt, gold, and copper. We also introduce BluSky AI, an emerging AI infrastructure company focused on developing modular AI-ready data centers and scalable computing solutions.
*Past performance is not indicative of future performance.
Last Week’s Five Most-Read Reports
Updates on Resource Companies Under Coverage
PR Title: Glencore Increases Stake (figures in US$)
Analyst Opinion: Positive
Analyst Comment: Glencore (one of the world’s largest mining companies) and Madesal (a Chilean private investment group) invested $2.5M in COBA, increasing their stakes to 5.6% and 7.4%, respectively — a strong vote of confidence in the company. The financing strengthens COBA’s balance sheet as it advances exploration at its La Cobaltera, El Cofre cobalt-copper, and NeoRe projects in Chile.
PR Title: Announces a $10M financing
Analyst Opinion: Positive
Analyst Comment: Proceeds will fund development at the Cerro Caliche gold project in Sonora, Mexico. Insiders are participating with $1M of the raise, a strong vote of confidence, while the company remains well funded after closing a $12M financing in April 2026.
In February 2026, SGO completed a robust independent economic assessment (PEA), outlining an after-tax NPV8% of $309M @ $3,500/oz gold (spot: $4,525/oz). SGO trades at just 23% of NPV, implying significant potential undervaluation.
The company also signed agreements to increase the project area from 3,977 to 9,455 hectares, through 29 additional claims adjacent to the existing property, increasing exploration upside and the potential for new gold discoveries.
The project is currently in permitting and could reach production within ~13 months of Environmental Impact Statement (MIA) approval, expected in the coming months.
Denarius Metals Corp. (DMET.NE)
PR Title: Q1 Results Signal Major Production Ramp (All figures in US$)
Analyst Opinion: Positive
Analyst Comment: DMET’s Q1-2026 results already surpassed full-year 2025 performance as production ramps at its Zancudo gold-silver mine in Colombia. The project remains in early production, with a 1,000 tpd processing plant expected online by Q3-2026 to enable full-scale operations.
Q1-2026 revenue reached $3.5M (2025 full-year: $1.7M), with gross profit of $1.5M (2025: $0.55M), while shipments totaled 863 oz gold and 20 Koz silver (2025: 532 oz gold and 15 Koz silver). We have not yet published near-term revenue and EPS forecasts for comparison against actual results, but expect to begin providing forecasts once commercial production is achieved.
The project carries an after-tax NPV5% of $324M based on a recent independent study (PEA). DMET is currently trading at 55% of NPV, suggesting the market is undervaluing the Zancudo mine, and assigning little to no value to the company’s other assets in Spain.
West High Yield (W.H.Y.) Resources Ltd. (WHY.V)
PR Title: Another Key Regulatory Milestone at its Record Ridge Critical Mineral Project (Magnesium) in B.C.
Analyst Opinion: Positive
Analyst Comment: WHY received a draft Environmental Management Act permit (environmental approval), marking a key regulatory milestone, following the mine construction and operating permit received in October 2025, and the preliminary road access approval received earlier this year. The new permit comes despite an ongoing court challenge related to the government’s earlier decision that the project did not require a full environmental assessment.
WHY noted that remaining permits are in final review, while pilot plant testing and construction financing discussions continue to advance. We believe the latest approval slightly eases concerns following the recent injunction, as it indicates regulators continue advancing the project. WHY is pursuing a $1.8M equity financing.
PR Title: Receives Permit for 16 More Holes at Mohave Gold Project, Arizona
Qualified Person: Bradley C. Peek, MSc., CPG, Director of Kingman Minerals
Analyst Opinion: Positive
Analyst Comment: Kingman received approval for an additional 16-hole drill program, following a recent eight-hole campaign that intersected the thickest mineralized intervals recorded to date, with results pending. The new drilling will target extensions of known gold zones, and deeper targets that may point to a larger gold system.
We believe the expanded program and pending results could serve as near-term catalysts, with a future NI 43-101 compliant independent resource estimate expected to validate the project’s gold and silver potential. Based on historical estimates that have not yet been independently verified, the project may host 568 Koz (inferred/low-confidence category) at 17 g/t, well above typical gold project grades of 1–5 g/t.
Coniagas Battery Metals Inc. (COS.V)
PR Title: AI-Driven Targeting
Analyst Opinion: Positive
Analyst Comment: Through AI modeling, COS and Windfall Geotek (an AI-driven exploration analysis company) identified 18 nickel, 19 copper, and 14 cobalt targets at COS’ flagship Graal project in Quebec. The project is prospective for Class 1 nickel, a key material for EV lithium-ion batteries. While still early stage with no resource estimate yet, the AI-confirmed targets, planned drilling, and potential maiden resource estimate could become key catalysts if results confirm mineralization.
Global Education Communities Corp. (GEC.TO)
PR Title: Oakridge Park Opening Marks Major Catalyst for GEC Properties
Analyst Opinion: Positive
Analyst Comment: Oakridge Park Mall, described as the largest urban redevelopment project in Vancouver’s history, is scheduled to open this week. The $6.5B, 5 million sq.ft community will include luxury retail, ~3,000 residential units, office space, and major civic amenities.
The project is highly significant for GEC, as two of its development projects, GEC Oakridge and GEC Langara, are located within 100m–200m of the site, and are expected to benefit from increased neighborhood desirability and property values.
GEC operates B.C.’s largest off-campus student housing platform, comprising 14 buildings, with eight currently operating, and six under development.
PR Title: Scalable AI Infrastructure (All figures in US$)
Analyst Opinion: Positive
Analyst Comment:
We recently commenced our due diligence on BluSky AI, and expect to initiate coverage in the coming weeks.
The rapid growth of AI is driving significant demand for data centers and computing power needed to support AI applications. This has created a growing need for faster and more flexible infrastructure solutions. According to Fortune Business Insights, the global AI infrastructure market is projected to grow from $75B in 2026, to $498B by 2034, a 27% CAGR.
BluSky AI is focused on building AI-ready data centers designed to meet the growing demand for AI computing. Unlike traditional data center companies that can take years to develop large facilities, BluSky AI uses smaller, pre-built modular “SkyMod” facilities designed for faster deployment and scalable growth.
Source: FRC
Its solutions are designed for small to medium-sized businesses, research institutions, universities, and government organizations. Customers can rent access to the company’s AI computing systems, similar to a SaaS-style model, instead of buying and managing the hardware themselves. The following chart outlines how the company plans to deliver computing services across multiple industries.
Source: FRC
The company plans to develop a network of AI-focused data center sites across the U.S., with 10+ planned locations targeting future compute capacity exceeding 200 MW.
The company is currently pursuing a $75M financing at $5/share. Our upcoming initiation coverage report will include a detailed overview of the company, industry landscape, growth strategy, and our fair value estimate.
FRC Top Picks
Last week, companies on our list returned -3.2% on average vs +0.7% for the benchmark (TSXV). Our picks have outperformed the benchmark in five of the seven listed time periods. Visit our website to view our full list of Top Picks by sector.
To view the complete report, click on the button above.
*Disclaimers – Annual fees ranging from $15,000 to $35,000 have been paid to FRC by Fortune Minerals, Giga Metals, Panoro Minerals, Denarius Metals, Trident Resources, Chilean Cobalt, Sonoro Gold, West High Yield Resources, Kingman Minerals, Coniagas Battery Metals, and BluSky AI for research coverage and distribution of reports. FRC or companies with related management, and Analysts, do not hold shares/securities in the companies mentioned in this report.
**We have selected these companies based SOLELY on our screening tool and fair value feature. We have not looked into company or industry specific factors that could affect the stocks. This portfolio and updates are for information, educational, and entertainment purposes only. We want to see how a hypothetical portfolio picked largely using our fair value algorithm would fair against a passive index. Before investing in anything, you should do your own due diligence and speak to a professional advisor. FRC and/or its analysts may hold positions in one or more of the holdings.
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