This Little-Known Metal Just Exploded 200%: Here are 2 Ways to Play It

Antimony, a silvery-white metalloid, may not be a household name, but its importance in today’s technological landscape is undeniable. This obscure metal is a crucial component in military technology, batteries, and semiconductors. Amid a growing global antimony crisis, demand is rapidly outpacing supply, setting the stage for significant market changes.

The Geopolitical Landscape of Antimony

Strategically speaking, the implications of antimony’s scarcity are considerable. The most alarming aspect is that China dominates the global supply of this essential resource. In light of these developments, Western nations are exploring ways to mitigate their reliance on Chinese imports, making antimony an increasingly vital strategic resource.

1. Military Metals (CSE: MILI, OTCQB: MILIF)

One company making waves in the antimony space is Military Metals, a Canadian junior miner. The company has acted swiftly to amplify its antimony holdings across two continents—Europe and North America—seeking to counterbalance the Chinese monopoly.

Recently, Military Metals announced its acquisition of one of Europe’s largest antimony deposits in Slovakia, known as the Trojarova property. This site, recognized as a Soviet-era resource, was initially discovered in the 1950s but saw exploration stall in the ‘80s and ‘90s before it could reach its richest zones. According to CEO Scott Eldridge, previous Slovak exploration yielded significant indicators of potential wealth that remain untapped.

The company has also set its sights on North America, purchasing the West Gore Antimony Project in Nova Scotia, one of Canada’s largest antimony mines, historically vital during World War I. With promising drilling results showcasing over 7 meters of 10.6 grams per ton gold and 3.4% antimony, Military Metals is strategically positioned to capture significant share in the burgeoning antimony market. Just a month after acquiring West Gore, the firm signed a Letter of Intent (LOI) to acquire additional claims in a tactical move to consolidate its position.

Militarily and economically, the urgency is clear. Eldridge predicts that the supply crunch will worsen, with antimony prices already having doubled this year and expected to rise further in 2024. Military Metals is playing a central role as a leading developer of this pivotal metal crucial for military and technological applications.

2. Perpetua Resources (NASDAQ: PPTA)

Another player making headlines is Perpetua Resources, known for its flagship Stibnite Gold Project in Idaho. This endeavor is not just a significant gold mine; it is poised to be the sole domestic supplier of antimony in the United States, thus playing an important role in national security.

Historically, Stibnite was instrumental for the Allied Forces in World War II and is projected to supply approximately 35% of U.S. antimony demand within the first six years of operation. Federal endorsement has been notable; the Department of Defense recently awarded Perpetua Resources $34.6 million in additional funding through existing agreements under the Defense Production Act. Furthermore, the company received a letter of interest for a $1.8 billion loan from the U.S. Export-Import Bank (EXIM) to support mine development, marking it as one of the most substantial investments a U.S. government has made in a mining project.

Apart from these financial commitments, the Pentagon has allocated nearly $60 million to advance Stibnite’s permitting process, underscoring its significance in building a domestic supply chain for antimony. With expectations to receive the final permit for the mine this December, institutional interest continues to swell. Analysts are optimistic; just last month, Roth MKM raised the stock’s target price to $15, forecasting a notable 45% return for investors.

Alongside this economic potential, Perpetua Resources is also aligning its objectives with environmental initiatives, including projects aimed at restoring fish spawning habitats, thereby enhancing its long-term value and meeting broader U.S. strategic objectives.

Conclusion

The surging interest in antimony, particularly with prices skyrocketing and geopolitical dynamics shifting, presents unique opportunities for investors. Companies like Military Metals and Perpetua Resources are at the forefront, aiming to liberate the West from its dependency on Chinese antimony supplies. As demand continues to grow, these firms could prove to be instrumental in shaping a secure and sustainable supply chain for this critical resource.