When it comes to micro-cap value stocks, investors with the sturdiest stomachs tend to prevail, as even the most thorough due diligence may still require you to hold low-performing stocks for multiple years in anticipation of a re-rating.
That said, those who build high-conviction cases for their stock picks will also rest the easiest, confident in their research’s ability to usher them through short-term macroeconomic headwinds towards a satisfactory outcome.
For this week’s Weekly Market Movers, we offer you three micro-cap value stocks weighed down by pessimistic market sentiment, despite their attractive fundamentals.
Q Precious & Battery Metals
Q Precious & Battery Metals is a diversified Canadian mineral exploration company active in the Abitibi greenstone belt region of Val d’Or, Quebec. The company’s 100-per-cent owned portfolio includes 7 Canadian precious and critical elements projects prospective for gold, copper, nickel, cobalt, zinc, uranium, molybdenum and platinum group elements. Here are three highlights:
- The McKenzie East gold property, located within two kilometres of Monarch Gold’s McKenzie Break project, which boasts a pit-constrained indicated resource of 939,860 tons grading 1.59 grams per ton (g/t) gold and an underground indicated resource of 281,739 tons averaging 5.90 g/t gold.
- The La Corne project, located 10 kilometres northwest of The North American Lithium Mine, which lists proven and probable reserves of 29.2 million tons grading 0.96 per cent Li2O, representing contained Li2O of 280,300 tons.
- The Hector strategic metals property, where historic trenching, bedrock sampling and diamond drilling uncovered four uranium zones over 4.7 kilometres. In 2008, Resources Appalaches completed 22 diamond drill holes on the southern portion of the property, with 11 returning elevated uranium up to 630 parts per million.
Despite a portfolio rich with catalysts for exploration upside, and target commodities in high demand for investment and the energy transition, Q Precious & Battery Metals stock (CSE:QMET) is down by almost 90 per cent since changing its name in February 2023.
Richard Penn, Q Precious & Battery Metals’ chairman and chief executive officer (CEO), spoke with Stockhouse’s Lyndsay Malchuk about the attractiveness of the company’s Lorrain hydrogen project. Watch the interview here.
Innocan Pharma
Our next micro-cap value stock is Innocan Pharma, a wellness and pharmaceutical operation offering exposure to a CBD-loaded liposome drug delivery platform and an extensive portfolio of self-care and beauty products.
Innocan has grown revenue by over 2,400 times from US$0.01 million in 2020 to US$24.03 million in 2024 through Q3, while growing gross profitability from negligible to US$21.78 million, respectively. The company even dipped into net income profitability in Q2 and Q3 2024, substantiating management’s ability to scale the business in line with shareholder value.
Investors in Innocan Pharma stock (CSE:INNO) have yet to be adequately rewarded for their patience, collecting only a 15 per cent return since 2019, drastically undercutting the company’s efficient growth story.
Iris Bincovich, Innocan Pharma’s CEO, recently spoke with Lyndsay Malchuk about the company’s Q3 2024 results. Watch the interview here.
Western Metallica Resources
Our last micro-cap value stock to consider as you ease into the weekend is Western Metallica Resources, a mineral resource explorer and developer with an option to acquire the flagship Caña Brava copper and molybdenum project in Peru. The company is also advancing its 100-per-cent owned Nueva Celti copper property in Andalusia, Spain, as well as the Penedela, Valledor and Sierra Alta gold projects in Asturias, Spain. Here’s the portfolio breakdown:
- The Caña Brava project features two porphyry targets combining for a potential 500-1,000 million tons of above-average-grade mineralized rock near Hudbay Minerals’ (TSX:HBM) Llaguen project, which is estimated to contain 271 million tons of indicated resources at 0.42 per cent copper equivalent and 83 million tons of inferred resources at 0.30 per cent copper equivalent.
- The past-producing Nueva Celti project yielded phase-one drilling of 4.55 metres at 2.6 per cent copper and 26.05 metres at 1.5 per cent copper, backing up extensive regional and historic data detailing 1,250 hectares of copper mineralization. This adds prospectivity to the project’s comparable geology to the El Valle-Boinas Carles mine and Salave project, both of which are significant gold deposits.
- The junior miner’s remaining trio of Spanish gold properties are nothing to scoff at, as they boast mineralization ranging from 750 m to up to 9 km in length.
Even though there is clearly enough early-stage evidence to expect positive news flow for years to come, Western Metallica stock (TSXV:WMS) has given back approximately 90 per cent since inception in 2022, offering you a bargain-bin entry point to capitalize on copper‘s long-term tailwind and gold‘s long history as a hedge against inflation and geopolitical risk.
Greg Duras, Western Metallica’s CEO, sat down with Lyndsay Malchuk to shed light on ongoing drilling at Caña Brava’s Luz Maria copper porphyry prospect. Watch the interview here.
Join the discussion: Find out what everybody’s saying about these micro-cap value stocks on the Q Precious & Battery Metals Corp., Innocan Pharma Corp. and Western Metallica Resources Corp. Bullboards and check out Stockhouse’s stock forums and message boards.
This is sponsored content issued on behalf of Q Precious & Battery Metals Corp., Innocan Pharma Corp. and Western Metallica Resources Corp., please see full disclaimer here.
(Top photo of the Luz Maria copper prospect on Western Metallica Resources’ Caña Brava project in Peru: Western Metallica Resources)