FOM is a mining company that is still in the exploration and development phase. The company has claims over 140,000 hectares in the deposit-rich Flin Flon Greenstone Belt, where it is developing its key project – the McIlvenna Bay Project located in Saskatchewan. The company’s asset is believed to be rich in copper, zinc, gold, and silver. This project is still under construction and is expected to start production in 2026. The company is poised to do well in this environment given its exposure to gold and silver; in addition, copper and zinc could be set to rise as the world embraces electrification and adopts sustainable energy.
With that said, FOM is still a speculative name and has not generated any revenue in recent years. The company will likely need to issue at least shares to fund near-term operations. FOM is an interesting name in this market, but investors need to size it appropriately and temper expectations. We like the sector, but FOM has lagged the high returns in the sector this year. Insiders own 3% but have been buyers. AEM owns 13.5%. FFH owns 18%.