New Silica Investment Thesis

New Silica Investment Thesis By Sodality Analytics

Silica? An overlooked investment opportunity with few quality publicly traded companies in the space. But what is it used for...

Silica is an oxide of silicon (silicon dioxide) which is primarily found in quartzite. [1] High Purity Quartzite (HPQ) is ideal for industrial processing. Quartz deposits are widely dispersed in nature, but the presence of ore bodies capable of yielding high-purity quartz is exceedingly rare. [2] Silicon, derived from high-quality quartz, is the most common material for semiconductors due to its high stability as an atom and its ability to withstand high temperatures without breaking down. [3]

What you need to know:

• The EU declared silicon a critical raw material as a wide range of modern technologies depend on it to make various industrial and consumer products. [4]
• Silicon was added to the U.S. Department of Energy (DOE) List of Critical Materials for Energy in 2022. [5]
• Silicon metal was added to the Canadian critical minerals list in 2024. [6]
• The global silica market size was valued at USD 49.12 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 9.9% from 2023 to 2030. [7]

Silicon metal is an essential building block in the transition to a low-carbon, green economy. It is central to the production of aluminum and other alloys, silicones, electronics (including computer chips), and solar cells, with emerging applications in the development of next-generation electric vehicle (EV) batteries and energy storage. [8] Demand for the key material inputs to emerging technologies is expected to rise dramatically. More than half of North America's current demand for silicon metal is met from imports. [9] These products include solar cells; semiconductor components; aluminum used in lightweight aerospace and automotive parts; and next-generation batteries and battery anodes.

We recently reviewed three existing silicon-focused public issuers with a fourth that is a brand new deal and just announced their first acquisition in the space. The three that we reviewed are:

1. Homerun Resources (TSXV: HMR | OTC: HMRFF)
2. HPQ Silicon (TSXV: HPQ | OTC: HPQFF)
3. Quebec Innovative Materials Corp. (CSE: QIMC)

The new entrant to the space we reviewed is:

4. Silicon Metals Corp. (CSE: SI)

All three of these companies have been around for a while and are doing well. We feel there is much more growth opportunity in the sector, and a new entrant with the right projects will garner much investor attention. Now that Silicon Metals Corp. (CSE: SI) has just launched with three quality silica projects and an already completed successful work program on one of them, there is a new player in the space where investors can still get in at a low valuation before the wider market finds out about the company.

To Dive Deeper into Silicon Metals click below

This is sponsored content for educational purposes only and not meant to be construed as financial advice. Omni8 Communications Inc. (DBA Omni8 Global) has been paid by Silicon Metals to provide marketing services pursuant to a consulting services agreement commencing on October 10 2024 for a period of seven months. In consideration for the services provided, Silicon Metals will pay Omni8 a cash fee of $7,500 CAD per month. Additionally, in connection with this report, Silicon Metals has paid Omni8 a cash fee of $47,700 CAD. This compensation should be viewed as a major conflict with Omni8’s ability to be unbiased. Omni8 and the Silicon Metals deal at arm’s length. Please review the full disclaimer