Fathom Nickel Inc (CSE:FNI, OTCQB:FNICF) has earned an initial ‘Buy’ rating from analysts at Couloir Capital who are impressed with the company’s progress in exploring for nickel at its Saskatchewan projects.
In a note to clients, the analysts highlighted that Fathom Nickel’s projects, the Albert Lake and Gochanger Lake projects, are located within an underexplored portion of the Trans-Hudson Corridor that hosts nickel-producing mines like Thompson and Raglan.
They see a jurisdictional advantage to the projects being located in Saskatchewan, which they noted is one of the most mining-friendly jurisdictions in the world.
“Supply chain-related ESG and geopolitical considerations add to Canada’s attraction as a nickel producer,” they wrote in a note to clients.
The analysts believe positive results from Fathom Nickel’s current drill program, which is testing a high-priority target at Albert Lake, could boost the company’s share price and help it refine its exploration model.
“After drilling the Albert Lake project, Fathom Nickel will proceed to drill on the Gochanger Lake property, testing for a presence of a metal-rich feeder zone,” they wrote. “With all the drilling and other planned exploration surveys, we can expect regular news flow from the company throughout the year.”
The analysts also pointed to Fathom Nickel’s management team as another asset.
“The company has successfully funded and executed its exploration strategy on the two properties and continues to deliver promising results,” they wrote. “The team prudently utilizes funds for targeted exploration activities to increase the value of the projects and generate shareholder value.”
The analysts did not award the stock a price target. Shares of Fathom Nickel traded hands at C$0.10 on Friday morning.