The positive trends for commodities are likely to continue in 2025. With escalating conflicts and instability in several regions, we explore a list of prospective junior commodity companies focusing on safe jurisdictions.

Volt Lithium

Volt Lithium (OTCQB:VLTLF) is a Canadian junior resource company focused on advancing technology for lithium extraction from oilfield brine. The company aims to be the first commercial producer of brine-based lithium, as its proprietary direct lithium extraction technology allows it to achieve all-in production costs of less than $2,900 per ton. Lithium prices have been hovering around $10,000 per ton, even after collapsing from 2022 highs of over $80,000.

Under the leadership of seasoned entrepreneur Alex Wylie, the firm established a test facility in the Permian Basin in Texas. The next milestone is scheduled over the next few weeks, when the firm plans to commission the next-generation field unit, capable of processing 10,000 barrels of oilfield brine per day. The stock is up 38.64% year-to-date.

Northern Superior

Northern Superior (OTCQB:NSUPF) is a junior gold firm focused on projects in Quebec and Ontario. The firm focuses on developing the Chibougamau mining district, where it owns four sites with over 3 million gold ounces. Due to their physical proximity, these resources could support a single operational design and feed a single mill.

CEO Simon Marcotte commented for Benzinga, saying that "the Chibougamau Gold Camp is drawing increasing attention, including recognition from National Bank, Quebec's largest bank and IAMGOLD's lead underwriter, which has identified the camp as the next stage of growth for IAMGOLD." Marcotte expects that the positive M&A trend in the sector will continue in 2025, with a focus on top-tier jurisdictions like Quebec.

The firm also spun off its Ontario assets as ONGold Resources (OTCQB:ONGRF), where it holds 62% stake, with Agnico Eagle Mines (NYSE:AEM), the third largest global gold producer, owing 15%. Northern Superior stock has risen around 2.1% year-to-date.

Sierra Madre Gold And Silver

Sierra Madre Gold and Silver (OTC:SMDRF) is a mineral exploration company focused on projects in Canada and Mexico. Its flagship project is Guitarra silver-gold mine near Toluca, Mexico. As an underground operation, this project is safe from a potential ban on open-pit mining, which has been debated in the country.

The project's total resource estimate is 200,000 ounces of gold and over 33 million ounces of silver. The testing activities have already generated over $2.5 million in revenues, and a full commercial mining announcement is expected immediately. The stock has returned 27% year-to-date.

Friedman Industries

Friedman Industries (AMEX:FRD) is an established domestic steel manufacturer. Over the last five decades, the company has become a notable operator in the North and South Central US. As Donald Trump's second mandate starts on January 20, the domestic steel sector will be the focus of his "America First "policies, which, in the first mandate, included a 25% tariff on steel imports. Trump's stance against the Nippon Steel takeover of US Steel was a rare instance where his opinion aligned with President Joe Biden and Vice President Kamala Harris.

Friedman Industries has an unusual ownership structure with high hedge fund ownership at 11.7%. Insider ownership is also notable (4.8%), and insiders have been exclusively buying in 2024. The stock has been flat year-to-date, rising 0.7%.

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Monday, December 30, 2024

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