This memo is a get-up-to-speed primer on EDM Resources (TSXV: EDM, OTCQB: EDMFF), prompted by the 7/31 group discussion where VC laid out the bull case. It cross-references every major claim against public filings, press releases and market data. Short version: the factual skeleton of the pitch checks out almost entirely; the valuation upside beyond the published 2021 study rests on three documented-but-unquantified options (current zinc prices, gold, mill improvements).
EDM Resources owns 100% of the Scotia Mine, a past-producing zinc-lead-gypsum open pit an hour from Halifax, idle since 2009 with pit, mill and infrastructure intact. A 2021 pre-feasibility study put the restart at C$30.6M capex against C$128M after-tax NPV8 (1.3-year payback) using US$1.22/lb life-of-mine zinc; spot zinc is ~US$1.64/lb today. The final construction permit (provincial Industrial Approval) was granted July 20, 2026; the last remaining approval, a federal Fisheries Act Authorization, is in First Nations consultation with a decision guided for summer/fall 2026. Financing precedent exists (US$24M IXM credit agreement plus 100% zinc/lead offtake, 2022) and a US$58M gypsum offtake was signed June 2025. The wildcard: September 2025 assays of concentrates left behind in 2009 showed up to 142 g/t gold, suggesting the old operators were processing significant gold without knowing it; a resource update and revised study are in progress. Stock is up ~400% YTD to C$0.60 (~C$48M / US$45M market cap) on ~80M shares. Production target: 2027.
| Item | Value |
|---|---|
| Company | EDM Resources Inc. (renamed from ScoZinc Mining, Jan 2022) |
| Tickers | TSXV: EDM · OTCQB: EDMFF (old OTC listing SWNLF is dead; FMP still maps the name there, marked not actively trading) |
| Asset | Scotia Mine, ~60 km NE of Halifax, Nova Scotia. 100% owned. Past-producing open-pit zinc-lead(-gypsum) mine, on care and maintenance since 2009. Brownfield restart: pit, mill and infrastructure already built. |
| Price / mcap | C$0.60 (Yahoo, 2026-07-31) · ~80M shares out · roughly C$48M mcap. Company's own Q2 update cited mcap growth from $5.9M to $47.2M YTD. |
| YTD move | Up ~360-400% (C$0.13 early Jan to C$0.60; 52-week range C$0.08-0.72) |
| CEO | Mark Haywood (per FMP profile: Mark Stephen Richard Haywood). Chat says ex-Newmont engineering/ops, ~15 years mine construction and ops. Newmont history not independently verified here. |
| Date | Event |
|---|---|
| 2009 | Scotia Mine placed on care and maintenance by prior operators. Concentrate stockpiles left on site; per later assays, prior operations were processing meaningful gold unknowingly. CAD$10M in spare parts left in original packaging (per management, via 7/31 thread). |
| Nov 16, 2021 | 2021 PFS (as ScoZinc): pre-tax NPV8 C$174M / after-tax C$128M, after-tax IRR 65%, capex C$30.6M, payback 1.3 yrs, 14.3-yr mine life, avg annual EBITDA C$18M, AISC US$0.52/lb ZnEq. Price deck: US$1.22/lb Zn LOM ($1.40 Yr 1), US$1.04/lb Pb, US$8.60/t gypsum, 0.80 CAD:USD. |
| Jan 2022 | ScoZinc Mining renamed EDM Resources Inc. |
| Jun 29, 2022 | US$24M definitive credit agreement with IXM S.A. plus 10-year offtake for 100% of zinc and lead concentrates (~317kt Zn con, ~135kt Pb con projected). Production subsequently delayed; financing package did not close in that window. |
| Jun 3-9, 2025 | US$58M gypsum offtake signed with a vertically-integrated wallboard manufacturer: US$250K advance for 5-year exclusivity; covers only about half the gypsum reserve over a 10-year projection. |
| Sep 2025 | Gold assays from legacy concentrates: up to 142 g/t Au in lead concentrate composites, 2.93 g/t Au in zinc concentrate composites. |
| Feb 2026 | Two-phase gold exploration program launched; updated NI 43-101 mineral resource estimate initiated (guided Q2 2026, to feed an updated PFS). |
| H1 2026 | US listing upgraded from SWNLF to OTCQB as EDMFF. Warrant/option exercises raised $1.55M; ~80M shares out (+ warrants worth ~$3.2M potential proceeds). Market cap grew $5.9M → $47.2M YTD per company's Q2 update. |
| Jul 20, 2026 | Amended Industrial Approval granted by NS Environment: updated mine plan, processing facility, waste/tailings design approved. ~150 direct jobs expected in operation. |
| Now | Fisheries Act Authorization (final approval) in First Nations engagement stage at DFO; company guides decision "summer or fall 2026." Then: financing, construction, restart targeted 2027 (thread expectation: production Q2 2027). |
"They're one (very rarely not granted) permit away from financing and production, and the cash flow projections are just nuts. Nobody cares at all."VC, 1:32 PM · position "cranked up to 42%" (was 15% in earlier tweets)
"At current zinc, lead, and anhydrite prices, it'll earn its market cap annually with two planned mill improvements... There's gold in the deposit... almost no way they'll mine less than 5k oz/year of gold, and it could very realistically be 10x higher. Gold takes it from being a 4-5 bagger to being a 10-20-bagger. Gypsum and anhydrite upside... another multiple or two of the current mcap."VC, 1:42 PM
"Virtually all of the reasons pre-production mines typically trade at steep discounts to NPV don't apply to EDM. Permitting is almost completely wrapped up. Mine infrastructure is already built. First Nations... love them... They're very likely to just get financing from IXM who had already agreed to finance the mine in 2022... But it trades as if they're an exploration company with a handful of tents and drill holes."VC, 1:51 PM (also: CAD$10M of spare parts in original packaging left by prior operators)
"Mark recently gave a tour of the mine to a small group of people and one of them reported that he was able to account for 76% of s/o among them by adding up everyone's positions."DCM, 2:16 PM
Other thread content: MD walked through PFIC tax mechanics for US taxable accounts (Form 8621, punitive excess-distribution treatment, possible purging election; likely not PFIC once producing in 2027; IRA holding largely defuses it). Vanguard blocks EDMFF buy orders; IBKR/Schwab to be checked. SV (has a discord of Canadian mining C-suite) flagged the key operational diligence question: metallurgy and the flowsheet change (bringing in a DMS). VC's answer: CEO is thorough on metallurgy and speaks conservatively. CR asked about the late-August quarterly as a catalyst; the real catalyst per VC is the final permit. Note: the 3:46-3:59 PM "$5.50 pre-earnings / FH AUG basis" exchange is an ALTO ethanol sidebar, not EDM. Late addendum (4:37-4:46 PM): CR raised an antimony angle (gold mines often carry it; China's deposits depleting); VC pushed back that the local geology makes antimony unlikely, and shared the underlying research writeup (Zac Loney's Substack, covered in section 7) - a nice data point that the thread argues against flattering thesis extensions, not just for them.
| Chat claim | Verdict | What the record shows |
|---|---|---|
| "One permit away" | TRUE | Amended Industrial Approval granted by NS Environment on 2026-07-20 (Newsfile). Sole remaining permit: federal Fisheries Act Authorization (FAA), in First Nations engagement stage; company guides to a decision "summer or fall 2026" (Q2'26 update). Matches VC's Aug/Sept framing. |
| IXM financing "already agreed in 2022" | TRUE (dated) | Definitive credit agreement with IXM S.A. for US$24M announced 2022-06-29 (Mining.com, Newsfile), plus 10-year offtake for 100% of zinc and lead concentrates (~317kt zinc con, ~135kt lead con projected). Production then got delayed; terms presumably need re-cutting. A 2022 agreement is precedent, not a current commitment. |
| Offtakes "lined up" | TRUE | IXM zinc/lead offtake (2022) plus a reported ~$58M gypsum offtake agreement (TipRanks coverage of company release). |
| Low capex, strong economics | TRUE per 2021 PFS | 2021 PFS: pre-tax NPV C$174M, after-tax IRR 65%, initial capex C$31M (NPV/capex ~5.6x), 1.3-year payback, 14.3-year mine life, C$357M LOM free cash flow, AISC US$0.52/lb Zn. Caveat: 2021 price deck and cost environment; an updated PFS is planned. |
| Gold in the deposit | PARTLY TRUE | Sept 2025 concentrate composite assays: up to 142 g/t Au in lead concentrate, 2.93 g/t Au in zinc concentrate. Gold exploration program launched Feb 2026; updated NI 43-101 resource estimate was expected Q2 2026 (status to check). But "at least 5k oz/yr, could be 10x" is VC's inference, not a company number. No gold in any published mine plan yet. |
| "Earns its market cap annually" | UNVERIFIED | 2021 PFS LOM FCF averages ~C$25M/yr against today's ~C$48M mcap, i.e. roughly half the mcap per year on the published study. VC's claim leans on current metal prices plus two unannounced mill improvements. Directionally plausible, not documented. |
| "Nobody cares at all" | STALE | Up ~400% YTD; company itself flags mcap up 8x YTD; a tour group reportedly accounts for 76% of shares. The neglected phase was January. What remains is illiquidity, not obscurity. |
| First Nations / local support | PLAUSIBLE, UNVERIFIED | The FAA is literally in the First Nations engagement stage now, so this is the live risk item, whatever the barbeques say. NS lists zinc as a critical mineral; ~150 jobs framing plays well locally. |
The cleanest under-appreciated fact: the 2021 PFS used US$1.22/lb life-of-mine zinc. Spot zinc is ~US$1.64/lb (LME-tracking quote, 7/23/26; it printed US$1.61 as early as June 1). Simple arithmetic on the PFS's 5-year average production of 35M lbs zinc/yr: an extra US$0.42/lb is ~US$14.7M/yr of incremental revenue (~C$18-19M at 0.80 FX), which by itself is on the order of the entire PFS average annual EBITDA of C$18M, before any lead (PFS deck US$1.04/lb) or gypsum uplift. This is the documented basis behind the thread's "NPV rises ~half the market cap per US$0.10 of zinc" sensitivity claim. Counterweights: 2026 operating and construction costs are also higher than the 2021 deck, treatment charges move, and zinc can retrace before 2027 production. The updated PFS will mark all of this to market.
At C$0.60 and ~80M shares (~C$48M mcap, before warrants/options; warrant exercises have been funding the company, with ~$3.2M potential proceeds remaining), the stock trades at roughly 0.28x the 2021 pre-tax NPV of C$174M (~0.37x the after-tax C$128M). Developer rule-of-thumb is 0.3-0.5x P/NAV moving toward 1.0x as permits, financing and construction de-risk. So the "trades like an explorer" framing was accurate at a C$5.9M mcap in January; at C$48M it prices like a normal developer that still has to deliver the FAA, a financing package, and an updated study. The remaining upside case rests on three things the 2021 PFS does not contain: today's metal prices (section 5), the gold, and the mill improvements. That is a real optionality stack for a C$48M company with a 5.6x NPV/capex ratio, but it is optionality, not the documented base case.
| Name | Ticker | Px / 6-mo | Stage | Relevance to EDM |
|---|---|---|---|---|
| Fireweed Metals | FWZ.V | C$2.99 / -13% | Large zinc developer (Yukon), pre-permit | Tier-1 scale but greenfield, years from production, big capex. Shows the market is NOT broadly bidding zinc developers; EDM's move is idiosyncratic (permits + gold), not sector beta. |
| Tinka Resources | TK.V | C$0.43 / -4% | Zinc developer (Peru) | Long-dated developer stuck at deep P/NAV discount for years: the fate EDM avoids only if it actually reaches production. |
| Titan Mining | TI.TO | C$2.75 / -49% | Producing US zinc miner (Empire State, NY) | Cautionary: producing zinc at modest grades has been a hard business this year even with zinc >$1.60. Execution and costs matter after the ribbon-cutting. |
| Minera Alamos | MAI.V | C$5.37 / +24% | Gold; built and restarted small mines cheaply | The success template: low-capex brownfield/build-small strategy re-rating as production arrived. |
| Cerrado Gold | CERT.V | C$1.86 / +4% | Producing gold + development | The rest of the same past-producing/restart basket discussed publicly in January: results are mixed (CERT roughly flat, MCI.V down sharply over 6 months), a reminder that the restart template is a portfolio game, not a sure thing per name. |
| Minnova | MCI.V | C$0.16 / -60% | Gold mine restart hopeful |
Historical analogue worth knowing: Trevali Mining, the last junior zinc producer story of scale, went from TSX darling to bankruptcy (2022) on operational failures and zinc price swings. Zinc juniors carry real operational torque in both directions.
The research underpinning the gold case is Zac Loney's Substack (@LoneyZachariah on X): "EDM Resources" (Jan 22, 2026, public) and "EDM Resources: Evaporites" (Jun 22, 2026, paywalled). The January piece is the one shared in the thread. Its argument:
The whole gold resource inference chains off roughly 85 tonnes of leftover concentrate from the 2009 upper benches. If those benches were unrepresentative, the number shrinks fast - Loney himself runs the sensitivity where the samples are 15x outliers. The updated NI 43-101 resource estimate (in progress, was guided Q2 2026) is the document that converts this from inference to (or from) reality. Also from the writeup's comment section: a reader raised whether a mill idle for 15 years needs $50-100M of recapitalization rather than the PFS's C$31M - the updated study's capex line is the check on that.
Profile: "Concentrated value investor. Musings on high-conviction ideas." 399 posts, 768 followers, joined July 2023. The EDM arc:
| Date | Post | Position |
|---|---|---|
| Feb 10, 2026 | "$EDM.V is one of the most unbelievable setups I've ever seen. Wish someone had told me about this in the $0.10's." Credits @LoneyZachariah's writeup as the source of the idea. | 8% (built in a week) |
| Jun 1 | Reposts @Silver__Santa breakdown noting zinc had hit US$1.6069/lb (well above the 2021 PFS price deck era). | - |
| Jul 2 | The salmon joke about the FAA delay. Key claims: fully diluted mcap US$46M prices in 0% of gold; per LoneyZachariah's work, leftover concentrates imply the mine was unwittingly processing >50k oz/yr Au in 2009; "even half this amount would be worth US$100m/year on top of the zinc, gypsum, and silver revenue." | 15%, "haven't sold any shares" |
| Jul 28 | The valuation exercise: ignore the base op entirely; at a 25% discount rate ~4k oz/yr Au alone justifies the US$45M mcap. Claims 2009 processing ran at a 60k oz/yr Au rate; says spot NPV8 of the zinc op is US$200M+; NPV8 rises by ~50% of current mcap per US$0.10/lb zinc increase; CEO says prior operators mined through the gypsum (and gold) without realizing. | - |
| Jul 31 (pinned, 3h before the DM thread) | "Going long $PBI was the most obvious trade going into 2026 (53% return incl. dividends through May 19 when I sold). Going long $EDM.V is the most obvious trade going into 2H 2026 and 2027." | 42% per DM thread same day |
Track record visible on the timeline: PBI +53% incl. dividends (Dec 2025 call, exited May 19, 2026, with activist cost-basis reconstructions going back to 2023). Fully exited ALTO on Jun 11, 2026, "locked in the 5-bagger." Jan 2026 restart basket: MCI.V, CERT.V, MAI.V - results mixed so far (see comps table). New large position Jul 15: DBG.V. The repeatable template is past-producing mine restarts bought below developer P/NAV; EDM is the highest-conviction expression of it, with the position size (42% as of the 7/31 thread) disclosed openly along the way.
Claims still needing independent verification: the 50-60k oz/yr "accidental gold processing" inference (traces to @LoneyZachariah's concentrate math, not company guidance), the US$200M+ spot NPV8, and the zinc-price sensitivity. The updated NI 43-101 resource estimate is the document that either validates or deflates the gold story.
The thread survives fact-checking unusually well: permit status, IXM history, offtakes, PFS economics, gold assays and even the share-register anecdote all trace to public documents or company statements. The one framing that has aged out is "nobody cares" - the move from a C$6M to C$48M market cap already happened this year. From here this is a binary-plus-optionality setup: FAA grant plus tolerable financing terms likely re-rates it toward the middle of the developer P/NAV band (and the updated study could raise the NAV itself via zinc marks and gold); a permit delay or dilutive raise hits an illiquid, tightly-held register. Sized-for-zero speculation with defined checkpoints, not a compounder. The three documents that decide it: the FAA decision, the updated NI 43-101 resource estimate (gold or no gold), and the financing terms.