Company Interviews

Interview with Brandon Munro, CEO/MD, and Gavin Chamberlain, COO of Bannerman Energy

Our previous interview: https://www.cruxinvestor.com/posts/bannerman-energy-otcqx-bnnlf-poised-for-monster-returns-in-uranium-bull-market-4804

Recording date: 8th February 2024

Bannerman Energy is advancing the large-scale Etango uranium project in Namibia, one of few new production stories brought online before the end of the decade.

With uranium prices already having doubled in the last 6 months, analysts forecast a deepening supply deficit that requires further upside to incent new mining. Bannerman finds itself perfectly positioned to capitalize.

Etango holds over 200M lbs of uranium resources, with Phase 1 production estimated at 3.5M lbs per year. Expansion potential is sizable. Located in stable and mining-friendly Namibia, Bannerman has systematically derisked Etango while retaining flexibility on funding and contracts – allowing shareholders to get full leverage to rising prices.

With a A$600M market cap but a funded balance sheet, a strong in-country team, and all required permits in hand, the company anticipates a streamlined 2-year construction timeline once project financing is secured.

The rare degree of construction readiness for a junior miner translates to reduced financing risk and confidence in expedited production schedule. Set against industry peers trading at steep premiums despite major project funding and execution obstacles, Bannerman offers a timely, leveraged, and de-risked exposure for uranium bulls.

With key lithium, copper, nickel, and uranium inputs all forecast to enter sustained deficits, the conditions are ripe for substantial mining valuations. As a pure play uranium vehicle modeled to come online just as the market flips into undersupply, Bannerman Energy deserves investor attention.

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View Bannerman Energy's company profile: https://www.cruxinvestor.com/companies/bannerman-energy

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Interview with Dušan Petković, Senior VP, Corporate Strategy of G Mining Ventures

Our previous interview: https://www.cruxinvestor.com/posts/g-mining-ventures-tsxvgmin-large-scale-gold-production-in-2024-3885

Recording date: 6th February 2024

G Mining Ventures is swiftly advancing one of Brazil's largest gold projects, with the first production imminent in 2024. The Tocantinzinho (TZ) mine will churn out 175,000 low-cost ounces annually for over a decade, funding both debt repayment and ambitious growth.

Success here has derisked G Mining's story, evidencing its construction expertise. The same skills now target consolidating additional assets to become a 500,000 ounce Americas producer. Attractive project metrics, capital structure and major shareholder backing give it a jump on rivals also aspiring towards mid-tier status.

Specifically, G Mining possesses several compelling attributes:

Gold prices recently breached $1,900/oz, extending this year's rally above 8%. Investor and central bank buying has regained momentum as inflation and recessionary fears escalate. Yet lack of exciting new projects leaves the supply pipeline quite constrained. G Mining can capitalize on this backdrop with its fully funded TZ mine set to deliver first gold pour in just over 12 months.

Extensive industry experience enables G Mining's management team to directly execute all technical and engineering aspects of building projects. This degree of control, continuity and productivity optimization is unique for a junior developer. It provides confidence in meeting budgets and timeliness.

TZ has adhered to the schedule despite volatile macro conditions, with completion already 76% and within 5% of costs. Comparatively few surprises minimizes financing and dilution risks as well.

Construction progress allows $430 million of TZ's $457 million capital budget to be committed already. Existing cash balances cover any residual expenditure. Additionally, in-the-money warrants if exercised could contribute extra liquidity nearing production start.

With capex fully funded and initial years generating 200,000+ ounces, G Mining expects to repay debt and internally finance its next chapter of acquisitive growth. Avoiding substantial dilution or project financings would be a major competitive advantage in bidding for quality assets.

Respected institutions like La Mancha, Eldorado Gold and Frankin Nevada own large stakes after conducting extensive due diligence. Their vote of confidence and guidance steers strategy. La Mancha additionally brings deep operational expertise and relationships as veterans in the gold mining space.

At only $115/oz in enterprise value per ounce of reserves, G Mining screens very reasonably priced at just 0.7x NPV ratios. Approaching catalysts could re-rate valuations closer to comparable single-asset producers trading above 1x NPV. Further de-risking TZ and adding acquisitions boosts upside from current levels. In turn, investors get positioning ahead of the next emerging mid-tier consolidator in the Americas.
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View G Mining Ventures' company profile: https://www.cruxinvestor.com/companies/g-mining-ventures

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Interview with Alan Carter, President & CEO of Cabral Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-targeting-first-revenues-within-15-months-4698

Recording date: 6th February 2024

Fast-Tracking Cash Flow to Unlock a New Gold District

Cabral Gold is advancing the high-grade Cuiú Cuiú gold project in northern Brazil with the aim of transforming into a profitable producer within 12-18 months. A focus on developing shallow high-grade saprolite (oxide) resources could generate early cash flows to support expanding into the larger underlying bedrock deposits. Recent drilling suggests growth potential well beyond the current 1.2M ounce resource, with at least 30 identified mineralized zones across the 20km long property. Trading at under $30/oz, Cabral offers upside leverage to higher gold prices with minimal risk.

Rapid Development of Enriched Near-Surface Zones

Extensive weathering at Cuiú Cuiú over millions of years has created thick blankets of saprolite extending up to 60m deep. Gold grades within this soft, free-digging material are comparable or often higher than the underlying unweathered bedrock. Significant metallurgical testwork demonstrates 80-95%+ gold recoveries using simple heap leach processing. With very low mining costs and cut-off grades, Cabral plans to rapidly advance Cuiú Cuiú’s saprolite resources to production.

A prefeasibility study examining a 5,000 tpd heap leach operation is on track for completion in Q2 2024. Based on positive economics, management anticipates making a construction decision in Q3 2024 once financing is arranged. The relatively low initial capex under $100M significantly derisks funding, allowing first gold production targeted by mid-2025. Investors are essentially funding a de-risked project with a very short timeline to cash flow.

Growing Resource Base Supports District Potential

While Cabral’s existing 1.2M ounce resource will form the basis for the initial Phase 1 saprolite mine, recent exploration success suggests strong potential for growth. Highlights include 30m at 2.6 g/t Au starting at surface at the new Machichi zone located just 500m from the proposed MG pit. Machichi has already been traced 900m and remains open along strike and at depth.

In fact, over 30 mineralized zones have been identified within Cabral’s 146 km2 property. Systematic exploration during Phase 1 saprolite operations would aim to continue expanding resources to underpin a significantly larger Phase 2 bedrock focused production profile. Currently trading under $30/oz in situ, investors gain upside exposure to the exploration potential for minimal risk.

Near-Term Share Price Catalysts

With construction targeted to start in 2024, Cabral offers multiple value-creating catalysts over the next 12 months:

• Prefeasibility study by Q2 2024 outlining robust phase 1 economics
• Financing arrangements to fund initial capex
• Ongoing exploration success expanding existing resources
• New discoveries proving up additional saprolite and bedrock mineralization
• Management’s track record of success includes involvement in developing the nearby 1Moz TZ project. As Cuiú Cuiú continues on the development fast-track, the company’s relative undervaluation should attract increasing investor attention.

Those investors with the patience to ride through the current challenging markets could be greatly rewarded.  Securing a position ahead of positive news flow leaves ample time for the next gold bull market to drive a potential re-rating towards fair value.

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View Cabral Gold's company profile: https://www.cruxinvestor.com/companies/cabral-gold

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Interview with Darren Bowden, CEO of Metals Exploration PLC

Recording date: 6th February 2024

Metals Exploration has undergone a dramatic turnaround under CEO Darren Bowden. When Bowden took over 4-5 years ago, the London AIM-listed gold mining company was nearly bankrupt. Its Philippines-based mine was achieving poor recoveries below 50%, costs were high, debt was mounting, and cash flow was negative.

Bowden methodically analysed the issues and overhauled operations. His team resolved processing plant bottlenecks, boosting recovery rates to 92-94% today. Higher throughput and optimized mining have doubled annual gold production from 48Koz to 85Koz. Lower costs and higher gold output have allowed Metals Exploration to generate $73M in free cash flow in 2021. This cash avalanche has gone straight to paying down debt, which has declined from $130M originally to around $15M currently.

With debt cleared and profits flowing, Bowden has positioned Metals Exploration for a new phase focused on strategic growth. Its core Runruno gold mine has approximately 4 years of remaining life. Bowden is hunting for assets to acquire, with an emphasis on high-grade, small-scale gold mines in the Philippines. The goal is to replace Runruno's production profile before mining concludes in 4 years.

If Bowden pulls this off, he sees Metals Exploration evolving from a "~$200M company to a $2B company." There's still execution risk, but investors buying into the turnaround story at the current ~$100M valuation could see solid returns if his bold vision is achieved.

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Interview with Niël Pretorius, CEO of DRDGOLD Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/drdgold-drd-steady-south-african-gold-producer-leverage-to-au-price-3064

Recording date: 6th February 2024

DRDGOLD Ltd operates a unique gold production business model targeting the retreatment of mine waste tailings around Johannesburg, South Africa. This allows the company to produce gold in a sustainable manner from past mining environmental liabilities while remediating land. DRDGOLD extracts gold from processed mine dumps efficiently via specialized high-pressure water jet technology drawing in tailings as slurry.

Despite some recent transitional challenges, DRDGOLD retains compelling fundamentals. The company dealt with commissioning delays in 2022 bringing several new hydro-mining sites online to replace depleting ones. This forced greater reliance on higher cost mechanical lifting from legacy sites until issues were fully resolved in early 2024. While annual production consequently dropped 8%, DRDGOLD succeeded in minimizing impacts, preventing only a narrow earnings miss. With its crucial hydro-mining production funnel now restored, the company expects improved cost profiles moving forward.

Importantly, even facing these headwinds, DRDGOLD maintained its track record as a standout dividend payer globally. Over the past 5 years, the company has delivered the 2nd highest total dividend payout across South African firms. This demonstrates the cash generation strengths of DRDGOLD's specialized operating approach even through downcycles or transitional disruptions. Entering 2024, the company holds 2.5 billion rand on its balance sheet, providing financial flexibility for further dividend upside or growth projects.

Moreover, DRDGOLD invests significantly in cost control, including via a major 60MW solar plant and power storage facility currently nearing completion in October 2024. By securing renewable energy access, the company gains independence from South African power grid instability and rising electricity costs over the long-term. The solar plant can also sell excess power back to the grid for additional revenue. This further boosts profitability and environmental sustainability.

Looking ahead, DRDGOLD is strategically prioritizing existing asset optimization, aiming to enhance processing capacity and extend mine life through 2028. In parallel, management views international expansion potential by leveraging the company's specialized operating model and evaluating global gold tailings retreatment opportunities. Through integrating remediation goals with commercial viability, DRDGOLD can deliver solutions enabling sustainable mine site development globally. Any further progress expanding provides additional shareholder value catalysts.

With its differentiated production profile and niche expertise, DRDGOLD offers investors exposures both to rising gold prices and the company's unique capability transforming liabilities into assets. Despite recent challenges, DRDGOLD exits 2023 with fundamentals still strong based on costs, dividends, balance sheet health, and management's focus. As the miner consolidates operationally in the near-term while advancing potential higher growth avenues, the risk-reward proposition appears compelling at current valuations for a range of investor types.

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View DRDGOLD's company profile: https://www.cruxinvestor.com/companies/drdgold-limited

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Interview with Shaun Bunn, Managing Director of Empire Metals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/empire-metals-loneee-titanium-discovery-could-deliver-10x-returns-4641

Recording date: 6th February 2024

Junior explorer Empire Metals has made waves with its recent discovery of high-grade titanium mineralization at the Pitfield project in Western Australia. Initial drill results reveal extensive near-surface deposits that could be amenable to simple and low-cost processing methods.

As Empire Managing Director Shaun Bunn stated recently, “We’re not a low-grade sand mineral operation or a complex hard rock mine. I think we can define a fairly simple processing route now.”

This combination of scale, grade, and potential cost profile makes Pitfield a prime takeover target for titanium developers looking to secure supply. For investors, it also provides leveraged upside to rising titanium demand and prices.

Last December's 40-hole, 5,718m drill campaign intercepted broad mineralized zones. Significantly, Bunn notes, “every hole from top to bottom [was] in titanium mineral.”

High-grade intercepts begin at surface and extend beyond 400m depths. Three diamond holes encountered over 300m of continuous mineralization grading up to 26% titanium dioxide.

With the immense mineral system confirmed, Empire has moved to metallurgical testwork and flowsheet development under newly appointed Process Development Manager Naurel Marriott.

The goal is to devise a simple beneficiation process leveraging the high natural density of titanium minerals found. This may involve low-cost gravity and magnetic separation before final upgrading.

To lead these efforts, Empire has recruited two industry experts with over 72 years of cumulative experience specific to titanium. Initial lab and pilot testing over the next 6-12 months will pinpoint the optimal recovery process.

Rather than expend effort on a formal resource estimate at this stage, Bunn’s priority is to demonstrate commercial viability. Within 18-24 months, he hopes to have an on-site pilot plant operating.

As Bunn explains, “let’s not try and drill this thing out and have a JORC resource because that doesn't answer the fundamental question - how do we get the titanium out and what do you make once you understand that?"

With positive metallurgy results, the timeline from demonstration plant to development could be compressed. The recent $3 million financing provides a runway through these studies.

For investors, Pitfield represents a unique entry point to the titanium space, just as supply shortages are forecast. As the world moves aggressively toward decarbonization, titanium will be one of the metals most critically in demand across green energy and EV applications.

In Pitfield, Empire controls what may shape up as the most significant undeveloped titanium deposit globally. The next 6-12 months will go a long way in quantifying just how significant.

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View Empire Metals' company profile: https://www.cruxinvestor.com/companies/empire-metals

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Interview with David Baker, CFO of Elemental Altus Royalties Corp.

Our previous interview: https://www.cruxinvestor.com/posts/elemental-altus-royalties-tsxvele-15m-revenue-boost-from-new-mine-development-3915

Recording date: 5th February 2024

Precious Metal Royalties Provide Leveraged Commodities Exposure

Royalty and streaming companies have garnered increasing investor attention recently as an alternative avenue to gain exposure to the upside in commodity prices. By financing miners in exchange for royalty payments on production, these royalty vehicles avoid the substantial operating risks involved directly in mining. Instead, they benefit from the upside if projects prove successful.

Elemental Altus Royalties illustrates the potential of the royalty model. The company holds a portfolio of 90 royalties globally, delivering steady cash flow from core assets like the Cerro Dominador copper mine operated efficiently by Lundin Mining. Disciplined capital allocation allows Elemental Altus to fund additional royalty deals on quality development-stage assets that offer accretion potential over time. The company maintains a focus on gold but also holds royalties on copper mines.

Diversification reduces risk while concentrated positions in Tier 1 mines provide stability. Further consolidation makes strategic sense to management, who believe the subsector remains overly fragmented currently. Additional deals may offer opportunities to bolster upside. Organic growth also drives potential catalysts. Key royalty-linked assets operated by established miners like Allied Gold have near-term production expansion plans that could increase royalty revenues.

In summary, Elemental Altus Royalties offers investors interested in commodities a disciplined vehicle providing royalty exposure across precious and industrial metals. The diversified portfolio combines assets with near-term cash flow and developmental upside potential. Hence, the company may appeal to investors seeking leveraged yet risk-managed mining exposure.

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View Elemental Altus Royalties' company profile: https://www.cruxinvestor.com/companies/elemental-altus-royalties

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Interview with Siobhan Lancaster, CEO/MD of 92 Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/92-energy-asx92e-proposed-junior-merger-to-create-new-force-in-uranium-4699

Recording date: 5th February 2024

A three-way merger between uranium explorers 92 Energy, Atha Energy, and Latitude Uranium is progressing as planned. The deal will create scale, unlock value across a combined portfolio of high-potential uranium assets, and provide capital to accelerate exploration.

The market reaction has been positive with strong share price appreciation seen in all three companies since announcing the intention to merge. The enlarged entity, to be called Atha Energy post-completion, will control over 300,000 hectares focused in Canada's prolific Athabasca Basin.

In particular, 92 Energy’s CEO Shan Lancaster highlights the largely underexplored 14 km Gemini trend at the company’s flagship Gemini project as a "good probability" for additional high-grade uranium discoveries. Prior drilling has already delivered promising hits up to 8.5m at 6.88% U3O8 near the surface. This initial success points to the potential for a broader deposit cluster analogous to the nearby world-class Arrow-Triple R district.

The merger plans remain on track with the scheme booklet outlining details to go to 92 Energy shareholders by late February, ahead of a scheme meeting vote expected in the last week of March. Assuming approval, completion would occur around mid-April. Crucially, this provides good timing to launch extensive summer field programs across the expanded portfolio to build momentum into 2024.

Lancaster explains that behind the scenes uranium market tightness exceeds recent public spot price gains. Contract negotiations reveal meaningful lifts in floor pricing and ceilings for long-term deals. This foreshadows further marked upside in published benchmarks as current prices around $100 per pound remain below levels required to incentivize adequate new mine supply. Equities thus offer catch-up potential as underlying physical fundamentals strengthen.

Consolidated Uranium intends to aggressively explore its assets to capitalize on the next uranium bull run. Investors can gain leverage to an improving macro backdrop through exposure to this well-funded, technically strong athletic combination, crystallizing around promising uranium jurisdictions.

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View 92 Energy's company profile: https://www.cruxinvestor.com/companies/92-energy

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Interview with Dustin Perry, CEO of Kingfisher Metals Corp.

Our previous interview: https://www.cruxinvestor.com/posts/kingfisher-metals-tsxvkfr-3-million-raise-for-high-grade-gold-drilling-3387

Recording date: 31st January 2024

Full District Unlocked: Kingfisher Metals Closing in on Golden Triangle's Next Big Discovery

Kingfisher Metals are consolidating an entire porphyry copper-gold district on their Hank project in northwest BC's famous Golden Triangle.

Previous operators left behind a treasure trove of wide, high-grade drill hole intercepts across multiple zones like 20m at 12 g/t gold. Last year, Kingfisher began unlocking the deeper potential.

Drilling under cover, Kingfisher hit 438m at 0.43 g/t gold equivalent, proving a massive porphyry system underlies the Mary target. And assays along strike suggest further expansion potential.

Already 331 sq km in size, pending permits will unlock even more prospective ground. 2023 drilling will systematically test the best targets - both existing high-grade epithermal veins and the newest large-scale porphyry discovery.

Institutions like Commodity Capital (17%) and key individual investors (25%) control half the tight share structure. Their backing reduces financing risk and share dilution.

Key geologists with direct experience at nearby mega-projects like Seabridge's KSM improve the odds of exploration success.

Discovering just 1-2 million gold equivalent ounces could support a valuation 10x or higher than today's modest $10M market capitalization.

While not without risks, Kingfisher offers savvy resource investors world-class porphyry district-scale upside potential. Their experienced team and supportive long-term institutional backing make drilling success in 2024 a very realistic possibility.

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View Kingfisher Metals company profile: https://www.cruxinvestor.com/companies/kingfisher-metals

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Interview with Pascal Hamelin, President & CEO of Abcourt Mines

Our previous interview: https://www.cruxinvestor.com/posts/abcourt-mines-tsxvabi-can-abcourt-unlock-high-grade-gold-potential-4532

Recording date: 2nd February 2024

Quebec Junior Primed for Self-Funded Growth Spurt

Abcourt Mines provides investors a unique opportunity to capitalize on reviving a past-producing gold mine in Quebec while avoiding typical junior miner dilution from endless equity financings. The company has methodically updated infrastructure and modeled high-grade narrow vein deposits at its Sleeping Giant property over recent years. With the 750-900 ton per day on-site mill now set for production startup in Q1 2024, near-term cash flows unlock the potential for exponential resource expansion.

Initial processing will begin on 8,000 tons of stockpiled material grading 6-8 g/t gold generating potentially c.$500,000 per month net.. However, Abcourt has already identified nearly 100,000 additional ounces grading above 10 g/t accessible right near existing tunnels that is not encompassed in the current 500,000-ounce resource estimate. According to President and CEO Pascal Hamelin, first-hand knowledge of deposit structures has revealed considerable upside even compared to recently updated modelling. The company now has the properly mapped deposits to efficiently target drilling for rapid resource delineation after years spent playing catchup.

With the mill capable of driving upwards of $100 million in annual sales at reaching capacity, the ability to self-fund this growth is what sets Abcourt apart from peers. Hamelin estimates production can generate approximately $500,000 per month in free cash flows that can go directly towards exploration expenses. This prevents additional dilution to current shareholders while expanding gold reserves to extend the current 8-year mapped mine life. Beyond Sleeping Giant itself, Abcourt also controls over 13 distinct regional zones that can provide supplementary mill feed as resources grow across its wider land package.

The market continues underestimating just how substantial production upside and resource growth funded through internal cash flows can drive shares higher. Investors have an opportunity to position in Abcourt Mines while the stock flies under the radar before realizing upside from a fully-funded search for multi-million ounces of gold across Abitibi.

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View Abcourt Mines' company profile: https://www.cruxinvestor.com/companies/abcourt-mines-inc

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