New Silica Investment Thesis

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. 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. Silicon, derived from high-quality quartz, is the most common material for semiconductors due to its high stability as an atom and that it doesn’t break easily under high temperatures. 

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.
• Silicon was added to US Department of Energy (DOE) List of Critical Materials for Energy list in 2023.
• Silicon metal was added to the Canadian critical minerals list in 2024.
• 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.

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. 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. These products include: solar cells; semi-conductor components; aluminum used in lightweight aerospace and automotive parts; and next generation batteries and battery anodes.

We are currently conducting a comprehensive analysis of the silicon sector, focusing on four promising public issuers. Three of these companies are already under our review, while the fourth is an upcoming entrant that could potentially become our top silica pick when it launches in the coming weeks. The issuers we have evaluated thus far are:

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

Our fourth pick, which is yet to be announced, is generating significant anticipation with the Sodality Analytics team. Upon its debut, we expect this new entrant to make waves in the silicon market.

This curated list represents a diverse range of companies operating in the silicon space, each with unique value propositions and potential for growth. Our ongoing analysis aims to provide investors with insights into these opportunities within the rapidly evolving silicon industry.