I just chose PTX Metals (TSX-v: PTX) / (OTCQB: PANXF) as one of three top picks in the annual ceo.ca stock picking contest. This is a Company down -29% from its 52-week high of C$0.17, yet the key metals it’s leveraged to are up an average of +81% in the past year!
While 100s of junior miners are up 100+ percent, some over 1,000%, from 52-week lows, PTX Metals is +41%. This gives me comfort that fundamental downside from today’s C$0.12 is much lower (a few pennies?) than the potential upside.
PTX’s management team & Board has been one of the most supportive believers as evidenced by open market purchases of PTX stock.
In the past six months, CEO Greg Ferron increased his share count to 3.5M, Director Moore to 4.9M, Dir. Marques to 3.6M, and Chairman Veerecke to nearly 1.0M.
Why such strong conviction among these insiders? PTX has an enterprise value of about C$16M, but in my opinion its assets are worth far more.
PTX owns 100% of the 22,700 hectare W2 project, a Cu/Ni/Pt/Pd/Au/Co asset on the SW edge of northern Ontario’s Ring of Fire.
As mentioned, those six metals are up an average of +81%, but some investors might be overly focused on nickel’s relative underperformance. Ni is an important part of W2’s valuation. By far the largest producer of Ni is Indonesia.
Yet, Indonesian supply is substantially owned/controlled by China! For the same reasons Western governments are backing REE/critical material supply chains outside of China, they may need to enact more explicit measures to support Ni.
Nickel has been weak compared to most other metals, up just +14% in the past year (+24.5% from 2025 bottom). International pressure on the Indonesian gov’t has resulted in announced production quota cuts. The low in the Ni price could be in.
PTX’s W2 deposit was already significant BEFORE the in-situ value of its estimated 2.3B Cu equiv. pounds (resource target, not a resource estimate) soared. The in-situ target value is ~C$19B.
That should make W2 very attractive to companies like; Anglo American/Teck, Rio, BHP, Agnico, Freeport, Glencore (Canada), Evolution Mining, Kinross, Vale (Canada), IAMGOLD, Sumitomo, Mitsubishi, Mitsui, Alamos, Gold Fields, Fresnillo, South32, Orla Mining, Hudbay, KoBold Metals, Wyloo, and Juno.
NOTE: Although there’s substantial drill data & exploration activity dating back decades in support of the 2.3B pound Cu Eq. resource target, that figure is historical, not NI 43-101 compliant, and should not be relied upon. A compliant resource is expected this year.
W2 alone is valued at ~C$0.007 (under a penny) per pound. Compare that to S. American Cu giants with a median valuation of ~C$0.04/lb., albeit with more advanced projects. S. America has challenges like ultra-high elevations, water scarcity, and local opposition to mining.
Management is looking to expand the sizable deposit at W2 and evaluate its open pit potential via step-out & confirmation drilling targeting massive sulphide zones plus growth at depth, where assays up to 14% Cu, 11 g/t Au, 2% Ni & 4 g/t (Pd + Pt) have been booked.
Using a cut-off of 0.5% Cu Eq., the existing resource target has an overall grade of 0.78% (assuming 100% recoveries). Any open pit scenario above 0.40% Cu Eq. would be highly attractive at spot pricing, leaving ample room for dilution after recoveries.
In early December management announced the start of a 5,000-meter diamond drill program at W2 to expand known mineralized zones and test high-grade targets.
The Company is simultaneously advancing metallurgical studies — plus 3D geophysical modeling — to refine its geological understanding, supported by recent landmark agreements between the Ontario government and the Webequie First Nation.
In addition to the impressive estimated size of the endowment, the composition of the metals is extremely important.
Arguably, all six are critical to Canada, the U.S., & Europe, making W2 a prime candidate to be fast-tracked into production and for gov’t grants and/or other financial assistance.
To be fair, the Ring of Fire region is remote, so fast-tracked for PTX doesn’t mean production this decade.
Still, key infrastructure, most notably roads, and potential rail spurs & power lines, are being developed more rapidly since the Trump Administration came to power. I asked ChatGPT about recent developments on infrastructure…
Trump’s hostile rhetoric, threats, and tariffs have (understandably) forced Canada to turn to the EU and countries like India, Japan, the UK, S. Korea, for enhanced trade & economic ties.
Therefore, a perfect storm of soaring commodity prices, (with no end in sight, and Ni hopefully beginning to recover), and geopolitical necessities, is positioning W2 for a strong 2026.
Notably, politicians have promised local communities better infrastructure across northern Ontario for decades. Recent announcements COULD turn out to be all talk, but in my view, this time is different.
Management recently raised C$6.5M to advance not just W2, but other valuable Au assets, all located in Ontario. I strongly believe the Company gets little-to-no credit for the value of ANY property or project except W2.
PTX completed a structurally-oriented geological review & high-resolution drone magnetics survey of the northern & central portion of its Shining Tree Au property that yielded surface samples up to 69 g/t Au.
Shining Tree is a large 232 sq. km land package in the Ontario side of the Abitibi Greenstone Belt, in the same structural trend hosting IAMGOLD’s world-class Côté Gold Mine (less than 50 km away).
Unlike more remote projects, Shining Tree is situated between Timmins & Sudbury with direct highway access, significantly lowering exploration/development costs, and logistical complexity.
With historical production at the Rhonda Mine, Shining Tree is a prime candidate for a corporate spin-off to possibly unlock meaningful shareholder value.
The Heenan-Mallard Au project is also promising, but valued by the market at roughly zero. It shares a border with another early-stage Au project controlled by Australia’s giant Evolution Mining.
Drilling has expanded a newly discovered Au system with near-surface intercepts such as 75.75 m at 0.50 g/t Au, incl. 5 meters at 3.9 g/t. So far, decent continuity along strike and at depth has been noted.
Wide zones of disseminated Au from the surface indicate real potential for bulk-tonnage mineralization, but a lot more work is needed.
Green Canada Corp, (“GCC“) a 54%-owned subsidiary of PTX, is a uranium/critical material exploration play focused on the Athabasca, Thelon, and Otish basins.
PTX’s new corporate presentation states a prospective value of ~C$3M for GCC prior to an upcoming IPO.
PTX has 7 NSR royalties on properties in Ontario. No one cared about these assets when Au was under $2,000/oz. Not all will pan out, (perhaps none will) but a few successful NSRs, with Au over $4,450, could be meaningful on a C$16M company-wide valuation.
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