Daily broker note - BUY13 Jan 2023 13:40
DAILY COMMENT - via broker
First Class Metals plc (FCM.L)* 13 Jan 2023
• Price: 13.9p
• MCp: £9m
• Tck: FCM.L
• Sector: Resources
• Recommendation: Buy
High Grade Nickel Assays on JV Project.
Late morning yesterday, First Class Metals (FCM.L) announced further high-grade drill hole
intercepts on its West Pickle Lake JV earn in with TSX listed Palladium One Inc. Most notable
results included the high-grade return of 10.3% nickel, 2.9% copper over 1.8 metres from hole
TK22-073. The complete announcement and full details of the project’s latest assay results
(including drill core photos) can be found on the linked RNS button below.
FEQ Comment.
We continue to see excellent drill assay results being reported on FCM’s West Pickle Lake JV
project, which considerably improves the potential of an economic deposit being delineated.
It builds upon the drilling result details announced last year, which included 12.76% nickel
equivalent over 2.3 metres from hole TK21-070 for example. Moreover, it raises the
exploration potential of the Group’s own 100% controlled property at North Hemlo, as the
West Pickle deposit remains open in its direction.
Yesterday’s drilling news by London listed FCM was released at 11.30am UK time, which was
timed to coincide with the opening of the TSX market in Canada for JV partner Palladium One.
Such late morning announcements can sometimes be overlooked, which we believe has been
the case for FCM, as the shares are surprisingly now trading at a 3-month low at less than 14p.
Nevertheless, this does create a buying opportunity now, and to this end we continue to
recommend the shares as a ‘Buy’. Investors can gain exposure to West Pickle Lake and the
Group’s other project interests including the addition (since IPO) of its Sunbeam project,
which we will explain and comment on in an updated research note, that will be issued later
this month.
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