Interview with Pascal Hamelin, President & CEO of Abcourt Mines (TSX-V: ABI)

Our previous interview: https://youtu.be/zQCyEhDoZZ0

Recording date: 15th June 2023

Abcourt Mines (ABI) is a Canadian gold development company located in Northwest Quebec. They are primarily focused on the Sleeping Giant project, which is situated directly beneath the company's 100% owned Mill, called the Sleeping Giant Mill. Abcourt Mines recently released a Preliminary Economic Assessment (PA) for the project, outlining the potential for low-cost start-up options.

The Sleeping Giant project stands out due to its unique geological characteristics. Unlike other gold deposits in the region, which typically feature quartz veins with visible gold, Sleeping Giant is characterized by a sulfide mineralization, including chalcopyrite and pyrite, with gold associated within the sulfide ores. The deposit is composed of numerous branches that extend like a folding sheet, plunging to the east. Extensive geology and engineering work have been carried out to map the over 800 structures present in the deposit.

With a well-maintained and dry shaft extending 1,300 meters deep and drifts every 60 meters, the Sleeping Giant mine has a significant amount of existing development. Abcourt Mines plans to focus on the near-surface branches initially, as they are within reach of the existing drifts. They are still searching for the primary mineralized "trunk" of the deposit. The company intends to continue drilling and advancing the geology to further understand the deposit and move towards a pre-feasibility study.

Interview with Stephen Swatton, CEO of CopperCorp Resources Inc. (TSX: CPER)

CopperCorp Resources (CPER) is a Canadian company listed on the TSX Venture exchange, specializing in copper exploration and mining. They have significant copper assets in Tasmania, covering approximately 1500 square kilometers across three different projects. While their main focus is on iron oxide copper gold (IOCG) deposits, they also have projects involving multi-commodity and rare earth elements.

The company has recently reported promising drilling results, showcasing high-grade copper grades. In their last drill campaign, they encountered distinct zones with copper concentrations of up to 1 percent. They are now considering drilling deeper holes, potentially reaching depths of up to 1000 meters, to assess the underground tonnage and expand their understanding of the deposits.

CopperCorp Resources emphasizes the importance of copper as the fundamental basis for their projects, aiming to attract interest from mid-sized to large mining companies. They prioritize safe jurisdictions and favorable conditions such as positive government regulations and access to renewable energy sources in Tasmania. The company also acknowledges the presence of other valuable elements like rare earths and cobalt in their projects but focuses on copper as the primary target.

Interview with Denis Wood, Executive Chairman of KGL Resources (ASX: KGL)

Our previous interview: https://youtu.be/giqjjQS2Pvo

Recording date: 14th June 2023

KGL Resources Limited is an Australian mineral explorer and developer focused on the delineation and development of the high grade Resource at the Jervois Copper Project in the Northern Territory, Australia and establishing a high grade, sustainable copper mine.

Using modern, cost effective exploration methods, the Company has successfully defined a current JORC Resource of 23.80 Million tonnes at 2.02% Copper, 0.25g/t Gold  and 25.3g/t Silver.

The Company is currently focused on completing Project studies that will determine the optimal development scenario at Jervois, with environmental approval recommended in October 2019, and the Jervois Mining Management Plan approved by the NT Government in January 2021.

Interview with Sam Lee, President & CEO of NorthIsle Copper and Gold (TSX-V:NCX)

Our previous interview: https://youtu.be/7C5eZke9kyI

Recording date: 13th June 2023

NorthIsle Copper & Gold (NCX) is a promising mining company headquartered in British Columbia. Led by President and CEO Sam Lee, the company is engaged in the exploration of copper and gold deposits. With a market value of $40 million, NorthIsle has successfully raised over $20 million in capital since October 2020.

Their flagship project boasts substantial mineral resources, with approximately 600 million tons indicated and 350 million tons inferred. These resources have an estimated post-tax NPV (Net Present Value) of $1.1 billion, with an after-tax IRR (Internal Rate of Return) of 19%. The project demonstrates significant potential for growth, given its current size and value.

NorthIsle Copper & Gold strategically focuses on capital allocation to maximize returns for shareholders. They have emphasized efficient drilling and exploration activities, aiming to expand the project's size, grade, and overall value. The company has identified three key areas for exploration, including the Northwest Expo, which has already shown promising results with higher NSR (Net Smelter Return) values and grades compared to existing resources.

Nickel continues trading either side $21,000 as LME inventories continue to creep lower towards 37,000 tonnes despite talk of large surpluses.  China saw inflow of Russian cathode – 7,000-8,000 tonnes – will be see how this flows through Chinese market or ends up overhanging Chinese market.

Debt deal helped put bounce back in copper and floor under nickel prices.  Given global slowdown, still think test of $20,000 possible before we trend higher by year-end. 

Battery restocking – lithium prices up 13% week-over-week as seeing restock well underway.  As I’ve said before, collapse in lithium caused destocking and drop in battery demand through first half and that we’ll see an aggressive restocking which looks like is now well underway.

“Great convergence” continues – discounts narrowed again with nickel prices lower and sulphate prices higher – sulphate discounts now less than half of what they were 6 weeks ago.  NPI discounts also narrowed slightly.

Indonesia – part of conference and series of site visits

Key takeaways:

Nickel price index – government not going to put export tax on NPI, but establish Indonesia reference price – think this is the way government will extract additional value for Indonesia. Important as no floor price for limonite (HPAL) unlike saprolite (NPI) – part of reason building MHP capacity. There will be ONEC – way for Indonesia capture

Focus on growing battery supply chain volumes starting with HPAL/MHP, matte.  No further talk of more stainlesss capacity – good for US/European stainless producers who have healthy price premiums. Taking advantage of limonite being mined to get to saprolite

Lots of capacity coming – 4 million tonnes approved through 2030 (we’ll need all of it as no western supply growth coming yet).  But will need 500 million tonnes – presenter from Indonesia government bureau doubtful that can supply that much. 

Ore grades definitely the risk – some of plants we went already using 1.5%, most using 1.6-1.65%.  Was 1.8% 2 years ago – don’t think people factoring in derating of plant.  33 MW furnace used to 8ktpa, at 1.6% is 7ktpa

Lots of open property – don’t seem to be rushing to reclaim – not good for runoff

Brimob – Indonesia special forces at each facility

Interview with Sean Samson, President & CEO of EV Nickel (TSX-V: EVNI)

Our previous interview: https://youtu.be/Linu4FkagKE

Recording date: 12th June 2023

EV Nickel (EVNI) is a Canadian company based in Toronto that specializes in nickel mining. With valuable assets located in Northern Ontario near Timmins, the company is strategically positioned to capitalize on the growing demand for nickel in the context of the global energy transition, particularly in the electric vehicle (EV) industry.

The CEO of EV Nickel emphasizes the long-term potential of the nickel business, citing strong forecasts for nickel demand. The company aims to contribute to the energy transition by increasing nickel production and meeting the requirements of the EV market.

The CEO acknowledges the challenges associated with nickel mining, including the difficulty of finding significant nickel deposits and the increasing importance of carbon considerations. Geopolitical factors further complicate the search for reliable and sustainable sources of nickel.

Despite these challenges, EV Nickel has achieved notable milestones, including expanding its land package and successfully advancing its exploration efforts. However, the company's valuation remains relatively low compared to other projects in the industry, presenting an investment opportunity for those who recognize its potential.

Overall, EV Nickel is focused on advancing its projects carefully and seeks to play a significant role in the nickel market's growth, particularly in the context of the rising demand for EV batteries.

Interview with Simon Clarke, CEO of American Lithium Corp (TSX-V:LI) 

Our previous interview: https://youtu.be/-ExWqzuH2m4

Recording date: 12th June 2023

American Lithium (LI) is a company involved in the lithium and uranium mining sectors. Recently, the company made significant developments and investments in its portfolio. It spun out its project, Mucasani, as a separate entity, focusing on uranium mining. Additionally, American Lithium invested in search battery technology companies, demonstrating its commitment to innovation in the energy storage sector.

The company also discussed the positive developments in Peru, where a pro-mining stance has been adopted, providing a favorable environment for mining operations. This development is significant for American Lithium, as it operates in Peru and benefits from the supportive mining policies.

In terms of the EV industry, American Lithium acknowledged the government's efforts to incentivize and support the electric vehicle sector. However, there is a need for greater support for mining companies that supply the essential materials for EV batteries. The company emphasized the importance of aligning government support with the mining component of the electric vehicle revolution.

One of the key projects of American Lithium is Mucasani, a uranium project. The company expressed excitement about the project and expects production to commence in late 2026. The project's advanced stage and modular design offer potential for efficient and accelerated production, aligning with the increasing demand for uranium.

Overall, American Lithium is actively involved in the lithium and uranium sectors, making strategic investments and focusing on projects that align with the growing demand for electric vehicles and sustainable energy solutions.

What’s been happening

Prices are moving across all components of the nuclear fuel cycle: enrichment, conversion and, of course, uranium.  The U3O8 spot price has moved through $57/lb, chalking up a respectable 17% growth for calendar 2023.  

The sector’s largest ETF, URA, issued new units last week 

We discuss the factors behind this growth, the return of capitalisation of uranium sector ETFs and whether uranium equities are responding or lagging.

Winner of the week 

The major corporate news this week was American Lithium’s spin out of their Macusani Uranium Project in Peru.  After acquiring Plateau Energy Metals in May 2021, American Lithium has released the project to develop beyond the shadow of the company’s lithium assets.

The spin out is being effected via a reverse takeover/back door listing and the Winner of the week was awarded to the shareholders of the target.
What luck to have invested into a, ehem, listed dog shampoo company and receive market salvation via exposure to uranium – at a perfect time to ride the most prospective commodity play of recent times.

https://www.globenewswire.com/news-release/2023/06/07/2683853/0/en/Friday-s-Dog-Holdings-Announces-Plan-of-Arrangement-to-Become-Major-Uranium-Developer-as-American-Lithium-Spins-Out-Macusani-Uranium.html

Bungle of the week

We found a most deserving awardee of the Bungle of the Week – Carla Denyer on behalf of the UK Greens party.  Whilst the Greens continued science-denying opposition to nuclear power makes them a perennial short listee, Carla got her math horribly wrong when she told BBC that “Nuclear is between eight and eleven times more carbon intensive than renewable energy”. 

https://twitter.com/TheGreenParty/status/1666075811777003520?s=20

This is at odds with the UN Economic Commission for Europe’s comprehensive life cycle assessment of all electricity sources, published over a year ago, which found that nuclear power had the lowest carbon intensity of any energy source.  

See https://unece.org/sed/documents/2021/10/reports/life-cycle-assessment-electricity-generation-options

We discuss whether it’s bad math or bad faith – and where those ludicrous numbers could have come from.

Tweet of the week

This week’s tweet highlights the major moves afoot in how nuclear energy is perceived by the ethical investment industry, following a Morningstar article highlighting that sustainable funds powerhouse Parnassus Investments have removed nuclear energy from their restriction lists.
See https://www.morningstar.com/funds/sustainable-funds-powerhouse-parnassus-weighs-investing-nuclear-energy

Various tweets relayed the story to the delight of uranium investors. However, the actual Tweet of the Week gong is awarded to Nucleation Capital, who tweeted all the way back on May 26 after reading the primary source – ie a Parnassus news release.

https://twitter.com/nucleationvc/status/1661932889695744000

Question of the week

“I have read that the Namibian government have banned the export of critical minerals.  Although it doesn’t seem to include uranium, this can’t be good for the country.  How much truth is in the headlines?”

Moonshots & Fizzers

We have noticed a distinct increase in speculation about Kazakhstan being squeezed between Russia and China.
For instance, the Astana Times led that Kazakhstan was keen to make BRICS into BRICKS: https://astanatimes.com/2023/06/kazakhstan-seeks-to-join-brics-and-enhance-trade-and-economic-cooperation/  and https://www.seetao.com/details/210273.html

Oilprice.com ran the headline that “China And Russia Lock Horns Over Kazakhstan’s Uranium” 

https://finance.yahoo.com/news/china-russia-lock-horns-over-180000094.html

Whilst this type of media reporting is usually a guarantee of Fizzerdom, some speculators feel a Moonshot could be on the way if Kazakhstan is unable to maintain a Western-facing facet.

Interview with James Champion de Crespigny, MD & CEO of Catalyst Metals (ASX: CYL) and Chris Jordaan, President & CEO of Superior Gold Inc. (TSX-V:SGI).

Catalyst Metals Limited is a gold mining and development company listed on the Australian Securities Exchange (ASX code: CYL). Catalyst holds significant landholdings in three mineral belts with large gold endowment – Henty (Tasmania), Marymia (WA) and Four Eagles (Victoria).

Interview with Chris Reed, Managing Director & CEO of Neometals Ltd. (ASX: NMT)

Our previous interview: https://youtu.be/waLYRIdtBmk

Recording date: 9th June 2023

Neometals (NMT) is an ASX 300 company with a focus on battery recycling and green battery materials. They are actively participating in the Battery Gigafactories USA conference in Washington DC to explore opportunities in the rapidly expanding US market. Neometals aims to provide comprehensive solutions for battery recycling by constructing plants and offering cost-effective recycling services. With the US projected to surpass the EU in electric vehicle production, there is a pressing need for increased recycling capacity. Neometals recognizes the impending deficits in critical raw materials like lithium, nickel, and cobalt and advocates for more investment in mining and recycling initiatives.