Top Junior Zinc Stocks of 2020 on the TSXV
Which junior zinc stocks listed on the TSXV have seen the biggest share price gains year-to-date? INN lists the top five gainers here.
Click here to read the previous top junior zinc stocks article.
In the final months of 2020, zinc has become one of the year’s best-performing metals. The zinc price has rallied more than 18 percent in the year’s last quarter.
The base metal started January out at US$2,297 per tonne on the London Metal Exchange. After the COVID-19 pandemic caused prices to slide to a low of US$1,773.50 in the spring, zinc metal rebounded by nearly 59 percent to hit a high of US$2,816 in mid-December.
Positive price action in the zinc market has also been good for junior zinc-mining stocks. Here’s a look at the five top junior zinc stocks on the TSXV that have seen share price gains year-to-date.
All data for this article was gathered on December 15, 2020, using TradingView’s stock screener. Only junior zinc stocks with market caps greater than C$10 million at that time were considered.
Current share price: $0.35; year-to-date gain: 337.5 percent
Rokmaster Resources is developing two mineral properties in British Columbia: the polymetallic Revel Ridge gold-zinc project and the Duncan Lake zinc-lead–silver project.
Rokmaster raised C$4.3 million in a private placement in May, and shortly after began preparing for drill work at Revel Ridge as part an update to the property’s historic preliminary economic assessment (PEA). In August, the company picked up additional mineral titles adjoining the property; by September, Rokmaster had begun a Phase 1 drill program at Revel Ridge.
In the last month of the year, Rokmaster delivered a new PEA for Revel Ridge that shows an after-tax net present value of of C$423 million at a 5 percent discount, plus a 29.5 percent internal rate of return and a 2.6 year payback period. A 2,300 tonne per day mill is designed to produce silver and gold doré as well as saleable lead and zinc concentrates. Also in December, the company announced an $8.5 million financing with a strategic investment by Crescat Capital.
After starting the year at C$0.04, Rokmaster saw its stock price rise to a year high of C$0.61 on August 6.
Current share price: $0.19; year-to-date gain: 123.53 percent
Emerita Resources is exploring and developing the Plaza Norte zinc project in the Reocin mining district in Northern Spain along with its 50/50 joint venture partner Grupo Aldesa, a major Spanish construction and infrastructure firm with international operations. Emerita holds additional exploration properties in Spain, including the West Iberian Belt gold-silver-copper-zinc-lead project.
Over the summer, Emerita raised $2.35 million in private placements, followed by just over $5 million in December. In November, it announced an upcoming drill program at the West Iberian Belt project.
Emerita’s share price rebounded nicely from the COVID-19 crush in the spring, rising as much as 1,900 percent to hit a year-high of C$.40 on August 21.
3. Telson Resources (TSXV:TSN)
Current share price: $0.20; year-to-date gain: 66.67 percent
Telson Resources holds two gold-silver-base metals projects in Mexico: Tahuehueto and Campo Morado. The Tahuehueto project is in the last mile of its construction stage and is set to produce gold, silver, lead and zinc concentrates within a 1,000 tonne per day on-site mineral processing facility. In November, the mining company initiated a 3,500 tonne toll milling campaign at Tahuehueto.
At the Campo Morado mine, Telson produces lead and zinc concentrates. Telson placed the operation on care and maintenance in April due to COVID-19, returning to production in June.
Over the course of this year, Telson was able to raise more than $3.5 million in private placements to fund operations at its projects. In June, the company entered into a funding alliance with Accendo Banco for US$12 million to finance construction at Tahuehueto.
Telson’s share price fell to a low of C$0.04 during the spring COVID-19 decline, and later rebounded as much as 725 percent to a year high of C$0.33 on October 5.
Current share price: $0.90; year-to-date gain: 66.67 percent
Fireweed Zinc is advancing its Macmillan Pass zinc-lead-silver project located in Canada’s Yukon in the Selwyn Basin. The Selwyn Basin is known to host large sedimentary exhalative deposits, a deposit type that accounts for more than half of the world’s zinc production.
This year, Fireweed Zinc has raised nearly $8.45 million through a series of private placements.
The company launched a drill campaign targeting the Boundary zone at Macmillan Pass in September, and it resulted in the discovery of significant mineralization at a new target west of the Boundary zone. Days after the new find was announced, shares of Fireweed Zinc rose more than 54 percent to a year high of C$1.31 on September 28.
5. ZincX Resources (TSXV:ZNX)
Current share price: $0.15; year-to-date gain: 50 percent
ZincX Resources is advancing two zinc-lead-silver assets in the Kechika Trough district of British Columbia: the Akie project and the Kechika Regional project. Akie hosts the Cardiac Creek deposit, one of the largest untapped zinc-lead-silver deposits in Canada.
In April, ZincX announced that its largest shareholder, Tongling Non-Ferrous Metals of China, had agreed to participate in the funding of drill work at Akie. An exploration program planned for 2021 will include three holes over approximately 2,000 meters of drilling. The goal is to acquire sample material for advanced metallurgical testing at Tongling’s laboratories in China. The testing will focus on enhancing zinc and lead recoveries for the production of high-grade concentrates.
ZincX’s share price fell to a low of C$0.06 in March, but recovered along with the price of zinc in the final months of the year to reach to a year high of C$.16 on December 3.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Emerita Resources, Fireweed Zinc and Rokmaster Resources are clients of the Investing News Network. This article is not paid-for content.