Company Interviews

Interview with Marc Henderson, President & CEO of Laramide Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/laramide-resources-tsxlam-moving-assets-through-growth-phases-3813

Recording date: 27th February 2024

Uranium Developer Positioned to Supply Fuel for Nuclear Growth

With global electricity demand projected to rise 50% by 2050, nations face immense challenges reconciling surging consumption with climate change commitments under the Paris Agreement. This urgency has thrust nuclear power back into mainstream policy debates given reactors emit no greenhouse gases during operation. Against this backdrop, uranium mining firms with the potential to deliver new production offer investors direct leverage to benefit from nuclear’s resurgence.

Toronto-based Laramide Resources represents one prospect to capitalize on the compelling fundamentals taking shape. While not a household name, the company holds a portfolio of advanced uranium assets in the United States and Australia that could be contributing up to 10 million pounds per year of low-cost output by the end of this decade. Two core projects form the crux of this strategy - the permitted Church Rock ISR deposit in New Mexico capable of initial production in 12-18 months, and the potentially massive Westmoreland project in Queensland pending policy changes.

In the U.S., Laramide is set to provide domestic utilities much needed supply diversity through its flagship New Mexico asset containing 31 million pounds amenable to in-situ recovery methods. With permits essentially in place, Church Rock offers investors near-term exposure to higher uranium prices once $50 million of capital expenditure brings the mine online at a million pounds per year. Importantly, the modular design facilitates scalability to 3 million annual pounds utilizing existing infrastructure. Beyond Church Rock, the company owns a handful of other early-stage ISR projects that ultimately could contribute 5 million combined U.S. pounds annually.

However, Australia is where Laramide offers asymmetric upside potential through its Westmoreland deposit, one of the largest and highest grade undeveloped uranium resources held by a junior miner globally. With an initial 16 year mine life extracting 51 million pounds through conventional open pit methods, the capital outlay to deliver first production is comparatively modest circa $300 million. Pending a widely expected change in government leadership, Westmoreland appears poised to realize its world class potential. Exploration drilling underway aims to both expand the resource and delineate additional satellite zones that ultimately could support an operation generating over 5 million pounds per year.

Attractively, Laramide has constructed a multi-prong growth pipeline requiring less than $700 million peak financing to power both the U.S. and Australian assets toward a 10 million pound overall company production target. With nuclear energy finally gaining momentum after a lost decade post-Fukushima, uranium fundamentals exhibits increasing tightness as demand steadily outpaces languishing supply, heightening the sector’s appeal. As market conditions continue strengthening, Laramide offers investors quality leverage with sound projects located in favorable and stable jurisdictions.

The strategic roadmap appears clearly defined - bring Church Rock online to establish a track record, fund expansions from internal cash flow, and ultimately seek to develop Westmoreland into a cornerstone asset befitting its world class credentials. Execution comes with standard mining risks, but the measured approach provides exposures across the capital structure for investors betting on the global nuclear build-out accelerating.

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View Laramide Resources' company profile: https://www.cruxinvestor.com/companies/laramide-resources

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Interview with William Sheriff, Executive Chairman of enCore Energy (TSXV:EU)

Our previous interview: https://www.cruxinvestor.com/posts/encore-energy-eu-uranium-producer-with-usa-ambition-3162

Recording date: 26th of February 2024

Encore Energy Poised to Consolidate as Top U.S. Uranium Producer After Strategic Cash Infusion

enCore Energy recently sold a 30% stake in its flagship Alta Mesa uranium project to Australian uranium miner Boss Energy for $70 million. This influx of growth capital provides Encore funding to accelerate development of its portfolio of prospective in-situ recovery (ISR) uranium projects in the United States.

The company had been advancing its projects slowly in a sequential fashion due to capital constraints. Now with a strengthened balance sheet, Encore can progress multiple projects simultaneously to expedite its production growth timeline. The deal specifically enables fast-tracking satellite uranium production to feed the company's Rosita processing plant in Texas.

Encore is initially focused completely on uranium assets located in Texas, targeting an annual production rate of 3 million pounds within 3 years. Given Texas' favorable regulatory environment, Encore feels its assets there alone can support its rapid production scale-up plans.

However, the extra capital also allows the company to begin advancing complementary projects in other uranium-mining-friendly jurisdictions like Wyoming at the same time. This diversification provides greater confidence in achieving its production goals.

Industry consolidation on the horizon also stands to benefit Encore as it looks to emerge as one of very few major U.S. uranium producers. Expert analysis suggests high asset development costs and permitting hurdles will overwhelm many juniors, leading to further consolidation.

Encore has positioned itself with the capability and capital to continue expanding rapidly in this consolidating producer landscape. As it accelerates production growth aligned with tightening uranium market fundamentals, Encore offers investors excellent leveraged exposure to rising uranium prices.

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Learn more: https://cruxinvestor.com/companies/encore-energy

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Interview with Grant Mourre, CEO of SPC Nickel Corp.

Our previous interview: https://www.cruxinvestor.com/posts/spc-nickel-spc-vale-deal-opens-up-low-risk-nickel-deposit-potential-2900

Recording date: 21st February 2024

SPC Nickel offers investors near-term leverage to a nickel price recovery through their unique West Graham project. Instead of traditional mine building, SPC plans to truck existing surface resources just 5-10km for toll milling at major producers' regional plants. Avoiding major capex and financing needs, first cash flow could arrive within 12-18 months.

Rather than construct standalone infrastructure, SPC will leverage extra capacity at nearby Vale and Glencore mills and smelters. This should facilitate quick ramp up for the project's 22-23 million ton maiden resource averaging 0.55-0.6% nickel and copper. Importantly, the initial 1-1.5 million ton "starter pit" requires only $5-10 million spend.

SPC believes ore sorting and existing roads may enable sub $5/ton operating costs for this first phase. And with mineralization starting at surface, no stripping or waste removal add costs. CEO Grant Moore called this starter pit "the immediate project to focus on," given robust economics even at current prices.

Expansions to 10 million tons then 20+ million tons could extend West Graham's productive life. But SPC can bootstrap the larger pits from starter pit cash flows without substantial dilution or debt. The plan allows investors to capitalize on recovering nickel prices.

Beyond toll milling's capex and opex advantages, SPC's seasoned mining team understands Sudbury's geology and infrastructure. Relationships with incumbent producers smooth the way. And SPC explores strategic partnerships on their earlier-stage Nunavut project. Quick cash generation unlocks value at West Graham.

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View SPC Nickel's company profile: https://www.cruxinvestor.com/companies/spc-nickel-corp

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Interview with Oliver Turner, Executive VP of Karora Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/karora-resources-tsxvkrr-continued-growth-ramping-up-gold-output-4459

Recording date: 22nd February 2024

Karora Resources is executing a clear growth strategy centered around expanding gold production from its Beta Hunt mine and Higginsville treatment facility in Western Australia. The company has set a goal of boosting output from over 160,000 ounces in 2022 to 200,000 ounces in 2025 through low-risk initiatives targeting improved mining rates, higher grades, and lower costs. Recent exploration results and planned plant enhancements provide additional upside potential.

In an recent interview, Karora EVP Oliver Turner highlighted new drilling results from the emerging high-grade Fletcher Shear Zone, stating "we're aiming to get that into an initial inferred resource by the update at the end of this year." With the ability to incorporate new mining zones like Fletcher into existing operations, Karora can continue expanding resources to extend current 2.7 million ounce reserve life. Relative valuation metrics currently price Karora at about $100 per reserve ounce, presenting significant upside as gold resources grow.

Beyond expanding ounces, Karora is implementing an operational enhancement strategy focused on pushing mining rates higher and costs lower. Turner explained that a recently signed power purchase agreement will meaningfully reduce electricity expenses, saying the "power cost savings are significant." These savings will directly improve profitability and can fund additional growth initiatives. Karora is also reviewing options to optimize nickel production, which Turner described as an "incredible capability with over $700 million at current valuations of nickel in resource today."

With major institutional shareholders like Invesco, Eric Sprott, and specialist natural resource funds on the register, Karora has quietly attracted some prominent capital. As Turner noted, "for the size that we are, we have a big allocation" with Invesco. This institutional vote of confidence signals that Karora represents a compelling value opportunity relative to intermediate producer peers.

As a fully-funded emerging senior gold producer exhibiting clear near and long-term production growth levers, Karora Resources offers investors a differentiated gold exposure. The company's commitment to cost discipline and resource expansion along with its discounted valuation should allow for significant value realization as the market recognizes Karora's potential as a sector standout.

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View Karora Resources' company profile: https://www.cruxinvestor.com/companies/karora-resources

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Interview with Frank Eagar, Managing Director, and Sapan Ghai, CCO of Sovereign Metals Ltd. (ASX:SVM), (AIM:SVML)

Our previous interview: https://www.cruxinvestor.com/posts/sovereign-metals-asxsvm-giant-clean-critical-minerals-mine-taking-shape-4518

Recording date: 21st February 2024

Sovereign Metals is uniquely positioned to capitalize on surging demand for both rutile and graphite from the unstoppable rise of electric vehicles. Powered by the immense Kasiya deposit in Malawi, the company holds claim to the world’s largest rutile resources and second-largest graphite reserves globally.

With electric vehicle makers seeking sustainable sources for lithium-ion battery components, Sovereign Metals will be the lowest-cost producer for these critical ingredients. At just US$178/tonne for graphite production, the company maintains a vast competitive edge over peers positioned at or above US$600/tonne. Exceptionally low operational emissions also enable Sovereign Metals to deliver substantial ESG benefits to customers like Tesla targeting dramatic reductions in supply chain carbon intensity.

Furthermore, the company’s additional 1.2 million tonne rutile resource diversifies cash flow resilience across diverse industries from aerospace alloys to paints. Positioned in the lowest industry cost quartile here as well, Sovereign Metals is funded to withstand any market volatility.

Recognition of this world-class opportunity is reflected in Rio Tinto’s US$40 million strategic investment to acquire 15% of the company alongside Malawi government support. With new CEO Frank Eagar bolstering management expertise, Sovereign Metals can now fast-track optimization and permitting activities to derisk its DFS due in 2024.

Successful rehabilitation trials and early financing discussions planned this year aim to reinforce execution confidence. Reaching targeted construction commencement in 2025 on the US$600 million project would activate substantial value creation for shareholders. Sovereign Metals’ circa US$250 million market capitalization today fails to appropriately reflect the sheer scale of what is the largest rutile deposit and a Tier 1 graphite asset globally. Progress delivering on the company’s ambitious long-term production plans in coming years promises to close this disconnect.

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View Sovereign Metals' company profile: https://www.cruxinvestor.com/companies/sovereign-metals

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Interview with Jon Bey, CEO of Standard Uranium Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/standard-uranium-stnd-world-nuclear-assoc-wna-fireside-chat-2448

Recording date: 20th February 2024

Standard Uranium has strategically positioned itself to unlock transformational value for investors in 2024 through extensive exploration across its portfolio of Athabasca Basin projects. Having shifted to a project generator model, the company leverages partnerships to fund simultaneous programs targeting high-grade uranium discoveries.

Standard Uranium is focused on the exploration and development of uranium projects in the prolific Athabasca Basin of Canada. The company has assembled an impressive portfolio spanning 11 drill-ready projects and partnered on 4 projects to accelerate exploration activity. Led by a veteran technical team, Standard has also established critical relationships with First Nations, drillers, and other partners to enable efficient project execution.

Recognizing the difficulties of raising continuous capital to explore a single project without discoveries, Standard Uranium strategically shifted to a project generator model. By bringing in partners to fund and advance select projects, the company can significantly expand exploration while advancing flagship assets independently. $31M+ has recently been raised to progress seven 2024 exploration campaigns in parallel across Standard’s portfolio.

A core tenet of Standard’s model is discovery through persistent drilling, applying continuous vectoring to hone in on targets. While previous efforts have thus far not resulted in major discoveries, each hole provides data to refine follow-on programs across projects. With recent partnerships amplifying funded drilling activity, Standard boosts the probability of exploration success. High-grade uranium discoveries can mean dramatic 10-20x valuation upside in the Athabasca Basin.

Standard Uranium focused early efforts on nurturing partnerships with First Nations communities and securing reliable drillers with specialized Basin experience, establishing reputational capital that enables smooth project execution. Validation comes from JV partner confidence and rapid permitting approvals. For investors, this execution capacity and endorsement provide confidence in the viability of fully funded and extensive 2024 exploration plans.

With Superior execution ability enabled by its relationships and over $31 million recently raised, Standard Uranium is set for a watershed 2024 exploration campaign across seven projects. Drilling starts imminently, continuing steadily well into late 2024 across flagship and partnered assets. Total 2024 expenditures exceed $9 million. The expanded drilling yields regular news flow and presents repeated discovery opportunities to substantially elevate valuation.

Strategically shifting to a diversified generator model to enable significant exploration expansion, Standard Uranium is set to unlock transformational value in 2024. Fully funded drilling now underway spans a multiplicity of Athabasca Basin projects with tier-1 discovery potential that the uranium market tends to reward dramatically. Supported by long-cultivated partnerships, Standard’s 2024 campaign brings investors assignment discovery updates and positive news flow over the coming year. As uranium market fundamentals strengthen, focused uranium exploration vehicles levered to discovery success warrant consideration. Standard Uranium offers investors multiple such opportunities in 2024.

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View Standard Uranium's company profile: https://www.cruxinvestor.com/companies/standard-uranium

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Interview with Taso Arima, CEO/MD of IperionX Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/iperionx-ipx-key-2023-catalysts-ti-metal-contracts-permitting-at-titan-2958

Recording date: 19th February 2024

IperionX is strategically positioned to reshape and rebuild US domestic titanium production for the 21st century through advanced recycling technologies. This offers investors exposure to disrupting a over $6 billion global industry currently dominated by China and Russia.

The company has proven, patented technologies that can produce low-cost titanium metal powders, alloys and products using any titanium scrap as feedstock. Facilities under construction in Virginia will start commercial production at 2,000 tons per annum in 2025, providing cash flows. Output is projected to exponentially scale up to 100,000 tons in coming years.

IperionX initially aims to sell simple titanium billet and rod to compete in existing markets priced above $60,000 per ton. Further down the track, higher-margin opportunities await by leveraging technologies to manufacture more complex forged or 3D printed components for aerospace, defense, automotive and medical applications.

Unique production advantages create defensibility against potential competitors. The mechanical process cuts typical titanium emissions by 75% versus traditional methods, aligning with global sustainability trends.

Also vital is extensive backing by US Government policy programs prioritizing a rebuilt, resilient domestic titanium supply chain. This provides security of demand even during market downturns.

IperionX represents a compelling strategic play on reshored critical metals manufacturing and industrial self-reliance. The company commercializes proven innovations addressing current titanium pain points around costs, environmental issues and foreign dependency.

First titanium production from the new Virginia facility expected in 2023 will demonstrate commercial viability. Investors buying into this vision early could generate multiples on revenue growth in the world's largest titanium market. This opportunity sits at the intersection of favorable geographic, political and technological transformations for titanium independence.

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View IperionX company profile: https://www.cruxinvestor.com/companies/iperionx

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Interview with Andrew Benitz, CEO of Jersey Oil & Gas PLC

Recording date: 12th February 2024

Jersey Oil & Gas has firmly transitioned its Greater Buchan Area licenses into a funded and de-risked staged development. Having proven an optimal concept through engineering studies, the company has attracted capable partners to fund activities through to first oil. With full funding secured against only 20% equity, Jersey offers investors asymmetric risk-reward in realizing tremendous stranded value.

During 2021 and 2022, Jersey Oil & Gas attracted North Sea heavyweights Neo Energy and Serica Energy to participate in the Greater Buchan Area redevelopment. On matching terms, the partners will fund 100% of costs including Jersey’s 20% share in return for an 80% licence stake. Cash payments to Jersey total $38 million, providing a strong balance sheet into the funded phases ahead. Partners were selected based on financial strength, strategic alignment and operational capability.

The base case involves redeploying the Jadestone Energy operated Voyageur FPSO, requiring only minor modifications before being positioned over existing Buchan wells. First oil remains on target for late 2026 based on only modest facilities workscope. The development base case comprises five production wells and two water injectors, with pressure support from underlying aquifers expected to boost recovery above 50% of oil in place. Significantly enhancing economics, operating costs are forecast below $15/bbl.

Partners are fully funding a comprehensive FEED study currently underway, together with all activities through to FDP approval in 2024. Based on the approved development budget, Jersey’s 20% equity share will also be fully carried through the construction and commissioning phase. With no further funding required, Jersey shareholders are fully leveraged to benefit from significant value catalysts in the years ahead. Jersey’s market capitalisation stands at only 25% of its estimated post-tax core NAV.

Key upcoming catalysts centre around FDP approval, then demonstration of consistent progress through the funded development phase. First oil remains targeted for 2026, whereafter Jersey transforms into a cash generative oil producer. Event-driven rerating of Jersey’s valuation upside should occur as de-risking continues on the pathway to production. For investors, the risk-reward asymmetry in entering at the current valuation is uniquely compelling.

In summary, Jersey has positioned itself for funded success from a stranded North Sea discovery. Future newsflow offers shareholders multiple opportunities to benefit from substantial incremental value creation. The company represents a high confidence value opportunity underpinned by committed partners and a fully financed work program.

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View Jersey Oil & Gas company profile: https://www.cruxinvestor.com/companies/jersey-oil-and-gas-plc

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Interview with Tim Harrison, Managing Director of Ionic Rare Earths

Our previous interview: https://www.cruxinvestor.com/posts/ionic-rare-earths-asxixr-building-europes-rare-earths-supply-chain-4476

Recording date: 8th February 2024

Rare earth elements (REEs) form the hidden backbone energising the global transition to electric mobility and clean power. Their unique magnetic, catalytic, and photonics properties impart performance and efficiency gains that silicon and copper simply cannot match. Yet, even as rapid electrification escalates demand, these obscure metals face a brewing supply crisis that jeopardizes nations’ net zero emissions timetables absent concerted action to develop alternative sources.

Australian firm Ionic Rare Earths seeks to break China’s stranglehold on rare earths production through an innovative two-pronged strategy focused firstly on recycling magnets from electronic waste to recover vital rare earth oxides and secondly on developing its major Makuutu rare earths deposit in Uganda. Executing this plan can establish Ionic as the leading independent full-cycle rare earths operator as Western countries scramble to shore up their manufacturing and defence supply chains.

Importantly, Ionic brings credible technological expertise and industry partnerships that validate its capabilities. The company already operates a demonstration facility showcasing its recycling processes. Moreover, collaborations with Volkswagen-owned Hypromag and specialist manufacturer Less Common Metals position Ionic to rapidly commercialize operations. Attractive government incentives and policies driving rare earths recycling in Europe and abroad create strong tailwinds.

Nevertheless, successfully scaling production from primary deposits likely constitutes the bigger long-term economic opportunity. Ionic’s Makuutu project in Uganda offers district-scale resource potential plus inexpensive extraction from mineralization occurring near surface in soft clay. Once in full swing, Makuutu can deliver the bulk tonnages of neodymium, praseodymium, and dysprosium essential to energize mass EV adoption and wind power buildouts.

Shares of Ionic Rare Earths trade at just a fraction of projected net asset value, embedding intriguing upside as executes its growth roadmap in the years ahead. The window to capitalize on the impending rare earths shortage continues narrowing. Astute investors looking for leverage upon this critical secular trend in clean energy should take note.

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View Ionic Rare Earth's company profile: https://www.cruxinvestor.com/companies/ionic-rare-earths-ltd

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*Interview with Stephan G. Roman, President & CEO of Global Atomic Corp.

Our previous interview: https://www.cruxinvestor.com/posts/global-atomic-tsxglo-2025-production-with-compelling-economics-4747

Recording date: 7th February 2024

Global Atomic stands out as the most promising publicly-traded uranium mining company bringing large-scale new production online. With its Dasa project in Niger, the company offers a targeted way to capitalize on rising uranium prices amid supply shortfalls.

The uranium industry suffers from years of underinvestment, with existing mines cutting back and scarce talent. However, Global Atomic has a veteran team advancing Dasa efficiently. Underground development and exploration drilling are progressing well, with over 275 employees currently on site. Plant construction contracts are now being awarded.

With demand strengthening and supply tightening, the uranium market is entering a structural deficit just as Dasa nears production. Global Atomic has aligned contract prices and production plans to maximize exposure to rising uranium prices expected over the next several years.

According to CEO Steven Roman, Dasa will have nameplate capacity exceeding 4 million pounds per year. With shallow high-grade mineralization, the project promises low operating costs and elevated margins. The forthcoming feasibility study update should further improve Dasa's already robust economics.

Global Atomic has minimized equity dilution by lining up banks to finance 60% of Dasa’s capital costs. With long-term sales contracts providing cash flow visibility, debt financing reduces funding risk. The company expects to source its remaining capital needs through a combination of cash flows and prepayment contracts rather than excessive equity raises.

With new uranium mines scarce yet demand rising, Global Atomic presents a unique opportunity. Dasa's scale, grade and stage offers unmatched leverage among uranium developers as the supply/demand imbalance drives prices higher.

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View Global Atomic's company profile: https://www.cruxinvestor.com/companies/global-atomic-corp

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