First Tellurium Corp. (FTEL:CSE), hoping to take advantage of new funding programs for critical minerals projects in the United States and Canada, has registered as a federal lobbyist to further its critical metals project in British Columbia.
The U.S. military is providing US$250 million for such projects in both countries, and Canada's federal 2023 budget announced in March earmarked CA$1.5 billion for a critical minerals infrastructure fund.
"We're probably the only junior mining company registered as a federal lobbyist," said First Tellurium President and Chief Executive Officer Tyrone Docherty. "We have been communicating with Natural Resources Canada about advancing our Deer Horn project, and we're very pleased with the prompt and enthusiastic response so far."
Tellurium's (Te) use as a semiconductor in solar photovoltaic (solar PV) panels has increased, the company said.
Recent International Energy Agency (IEA) forecasts show that solar PV technology will generate more power by 2027 than any other source. Te and silver (Ag), also in demand for solar PV, are abundant at First Tellurium's flagship project, Deer Horn.
The market for Te is expected to grow by about 60 metric tons from 2020 to 2024, according to research by Technavio.
"Factors such as increasing urban population, rise in disposable income, strong supply chain, and high internet penetration are driving the growth of the global consumer electronics market," the research firm said in a release. "The increase in demand for consumer electronics will, in turn, drive the demand for tellurium over the forecast period."
The market for Te is expected to grow by about 60 metric tons from 2020 to 2024, according to research by Technavio.
Docherty said First Tellurium also has high-grade gold and silver projects, and a partnership with Fenix Advanced Materials enables the company "to integrate vertically to supply ultrapure tellurium."
"Our Deer Horn project also contains significant showings of silver and copper, both essential green metals, along with the critical metals bismuth and tungsten," he said.
The Catalyst: Reducing Dependance on China
Te is one of the least common elements on the planet, according to the U.S. Geological Survey. Most rocks contain an average of about 3 parts per billion Te, making it eight times less abundant than gold. In addition to solar panels and thermoelectric applications, it's also used in lithium batteries and is to vulcanize rubber, tint glass, and manufacture rewritable CDs and DVDs.
The market has seen an increased push from both American and Canadian governments to apply more funding to Te mining. Docherty noted that U.S. President Joe Biden has banned solar panels coming from a Chinese company that uses forced labor. Both countries are trying to reduce their dependence on China for such critical metals.
"There's a very decent chance tellurium will breakout this year because First Solar is using 60 to 70% of worldwide production to make a solar panel," said asset manager Chen Lin
Deer Horn was noted as a key tellurium project in a U.S. geological report on critical minerals in the country, the company said.
"The Deer Horn intermediate-sulfidation epithermal deposit in west-central British Columbia, Canada, contains high gold and silver grades with abundant base metal sulfides and telluride minerals," the report stated.
Deer Horn is known to have the only positive preliminary economic assessment (PEA) for a Te project in North America. It was named by First Solar Inc. (FSLR:NYSE) as one of only four world-class Te projects.
"There's a very decent chance tellurium will breakout this year because First Solar is using 60 to 70% of worldwide production to make a solar panel," said asset manager Chen Lin, author of the What's Chen Buying? What's Chen Selling? newsletter. "Their production has grown rapidly."
First Solar plans to double its solar panel manufacturing capacity and spend US$1.36 billion to lessen China's dominance of the market, according to S&P Global.
'A Looming, Massive Shortage'
Company Chairman Tony Fogarassy attended OECD's 2023 Forum on Responsible Mineral Supply Chains in Paris as part of First Tellurium's outreach on critical minerals.
"We know there's a looming, massive shortage of critical minerals needed for batteries, electric vehicles, solar power — any technology related to climate change and carbon reduction," Fogarassy said. "I'm here to better understand how tellurium and our company will fit into these issues and understand the emerging government policies and strategies to resolve these shortages. Canada is seen as a prime future supplier of critical minerals due to its stable political and economic structure, and also its world-leading knowledge about exploration and mining."
In March, technical analyst Clive Maund rated First Tellurium as an immediate Buy.
The company plans to continue exploration at Deer Horn this year. The project's Preliminary Economic Assessment (PEA) was calculated on 450 meters of a 2.4-kilometer gold-silver-tellurium vein system. Sampling in 2022 identified a possible 1.1-kilometer extension of the system, the company has said.
First Tellurium is drilling this year to confirm and enlarge the zone extension and to conduct infill drilling to expand the current resource.
Streetwise Ownership Overview*The company will also test new targets and do mapping and aerial surveys of the 5,133-hectare property. First Tellurium is also looking to get a permit for a 10,000-tonne bulk sample at Deer Horn, which is targeted for 2025.
In March, technical analyst Clive Maund rated First Tellurium as an immediate Buy.
In addition, the company's Klondike Tellurium Project in Colorado is considered one of America's top Te exploration projects and was previously owned by First Solar as a potential source of raw Te for its solar panels.
Ownership and Share Structure
According to the company, 11% of First Tellurium is owned by management and insiders.
Docherty owns 10.6% or 7.7 million shares, Director Josef Anthony Steve Fogarassy has 1.38% or 1 million shares, and Director Lyle Allen Schwabe has 0.73% or 0.53 million shares. There are no institutional investors, and the rest is retail.
The company has a market cap of CA$11.63 million, with about 73 million shares outstanding and 63.4 million free-floating. It trades in a 52-week range of CA$0.255 and CA$0.085.
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