FRG: Anchored in Coal, Leveraged to Discovery
What you need to know:
• Forge Resources owns 80% of the fully permitted La Estrella coal project in Colombia. Extraction will start as early as January 2026 with a 20,000 ton bulk sample and ramp significantly after that.
• The Alotta copper-gold project in Yukon is an early-stage asset 40km from the world-class Casino deposit. FRG looks to take advantage of rising gold and copper prices as it currently explores the property.
• FRG trades at just 2.6x 2027E EBITDA.
Forge Resources Corp. (FRG:CSE, FRGGF:OTC) is a Canadian junior mining company advancing a dual-asset strategy focused on near-term cash flow from coal production and upside from copper-gold exploration. The Company holds an 80% interest in the fully permitted La Estrella Project, a high-quality underground coal operation in Colombia with immediate development potential and strong LOI-based offtake demand. In parallel, Forge is developing the Alotta Project in Yukon’s Dawson Range, located near Western Copper and Gold’s world-class Casino Deposit. We are initiating coverage on Forge Resources with a BUY rating and a target price of $1.00/share.
Investment Thesis Summary
Near-Term Cash Flow. The La Estrella Project is a fully permitted metallurgical and thermal coal project in Santander, Colombia. FRG plans to extract a 20,000 ton bulk sample starting in Q4/25, generating initial revenue ahead of a commercial ramp-up to the permitted 180,000 metric tons per year. While current coal prices are relatively low, the Company has executed LOIs for 100% of initial output, de-risking the early cash flow profile and creating a path to self-funded growth.
Scalable Underground Development. The decline at La Estrella is progressing steadily, offering underground access to six stacked coal seams while avoiding open-pit mining, an approach better aligned with Colombia’s ESG and permitting landscape. The project benefits from a long mine life (42+ years), modular development strategy, and strong surface infrastructure already in place.
Emerging Copper-Gold Discovery. The Alotta Project is a copper-gold asset located 40km from the Casino deposit in Yukon’s Dawson Range. Drill holes in 2023 confirmed broad porphyry-style mineralization, including 0.46 g/t Au and 191 ppm Cu over 211.6m, with follow-up work defining a 4.0km x 1.0km target corridor. The 2025 exploration program is currently underway at the project.
High Insider Ownership. Management and insiders collectively own 17% of FRG, underscoring alignment with shareholders. Oversight is provided by an advisory team experienced in capital markets, mine development, and M&A.
High-Quality, Dual-Market Coal. La Estrella hosts high-volatile metallurgical coal and high-BTU thermal coal (+11,800 BTU), positioning Forge to serve steelmaking and industrial energy markets.
Discounted Valuation. Based on our model, FRG trades at 2.6x 2027E EBITDA, and we expect the multiple to expand as management executes on its extraction plans and begins generating cash flow.