MoneyTalks: Aliwa Funds’ undervalued golden trio to hatch in next commodity cycle

MoneyTalks is Stockhead’s drill down into what stocks investors are looking at right now. We’ll tap our list of experts to hear what’s hot, their top picks and what they’re looking out for.

Today we hear from Aliwa Funds portfolio manager David McNamee.

Central bank buying and a fundamental regime change in monetary policy since the GFC has created a sustained bull market for hard assets, with commodities finally catching up, according to Aliwa Funds’ Dave McNamee.

“We’ve had this extended period now where hard assets have done very well, and what has lagged, particularly from an investment sector perspective has been commodities,” he told Stockhead.

This disconnect has created compelling opportunities in overlooked jurisdictions, with Nordic Resources (ASX:NNL) exemplifying the type of severely undervalued asset McNamee is interested in.

The company’s Kopsa project has an enterprise value of $35 per resource ounce, which is well below the average of $120/oz that’s typical of projects in Western Australia, highlighting potential multiple times returns, according to the fund manager.

Only major deposit in the district

Nordic’s 1.2Moz AuEq Finnish projects also benefit from Finland’s ranking as the world’s best mining jurisdiction by the Fraser Institute, while the main Kopsa deposit (814,800oz AuEq) sits adjacent to two existing mills including one owned by global mining giant First Quantum.

“The key upside and catalyst for Nordic is that they might be able to do a deal with either or both of these production assets to allow the company to effectively toll treat the ore and get into production,” McNamee says.

What really strengthens the case is the looming closure of one of the nearby mills within a year – with one in three local men employed there, the government and community are pushing hard to keep it alive.

The beauty of Nordic’s position is they’re sitting on the only deposit of any real size in the area.

McNamee said the company was well-positioned to negotiate a toll treatment arrangement, which would be a game-changer, allowing Nordic to start generating cash flow without massive upfront costs.

He also credits the quality of Nordic’s management team, including CEO Rob Wrixon and newly appointed chairman Malcolm Norris, whose track record includes successful discoveries at Sunstone Metals (ASX:STM), SolGold and extensive Scandinavian experience.

“Malcolm joining the team really gave us a lot of comfort,” McNamee said.

Felix Gold’s 572% run capped by new Alaska discovery

One of McNamee’s other picks is Felix Gold (ASX:FXG).

The stock has already had a strong run, up ~572% year-to-date as it seeks to supply antimony to a US market desperate to shore up domestic supply of the critical metal.

It recently made a new discovery at its Treasure Creek project in Alaska, which could accelerate its path to production.

They’ve uncovered a 25m-long stibnite vein right at surface, along the same structure that previously returned a trench result of 3m grading 50.26% antimony and 5.29g/t gold.

“We see real consolidation potential around their gold assets at NW Array and the Grant Mine in Alaska’s Fairbanks region,” McNamee said.

“The management team is top-notch, which gives us even more confidence.

“With the grades they’re seeing, the history of production, and the proximity to key US facilities, it really feels like a no-brainer.”

Chrysos rides gold boom with Newmont deal and global rollout

McNamee’s third pick is Chrysos Corporation (ASX:C79) for a bit of a broader way to play the gold thematic.

Headquartered in Adelaide, the company combines science and software to create technology solutions for the mining industry.

The company’s flagship product, PhotonAssay, delivers fast, accurate and environmentally friendly analysis of gold, silver, copper and other elements.

In May, Chrysos signed a Master Services Agreement with Newmont Corporation (ASX:NEM) to bring its PhotonAssay tech into Newmont’s gold operations. On top of that, they locked in a contract to roll it out at the Ahafo mine in Ghana, with deployment slated for the first half of FY26.

McNamee said Chrysos was one of the fund’s key positions.

“With gold prices spiking, assay delays have become a major pain point around the world,” he said.

That’s where Chrysos comes in, they’re positioned to step in as the industry transitions from traditional fire assays to their faster, more efficient technology.

“We’ve followed the company since its listing, and they’ve done an exceptional job of commercialising a CSIRO-developed technology on a global scale,” he said.

“Revenues have grown from almost nothing to around $80 million.

“Some impatient investors wanted quicker results, but the company has a high-quality management team, a strong balance sheet, and ongoing support from CBA, which has increased their working capital multiple times.”

At Stockhead, we tell it like it is. While Nordic Resources is a Stockhead advertiser, it did not sponsor this article.