Company Interviews

Interview with Francis MacDonald, Director & CEO of Li-FT Power Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/li-ft-power-cselift-technical-analysis-due-diligence-4278

Recording date: 5th December 2023

Rapid Resource Growth Positions Canadian Lithium Explorer for Coming Demand Wave

Li-Ft Power is aggressively exploring its Yellowknife lithium project in Canada's Northwest Territories, systematically drilling known pegmatites. Despite lithium prices falling 75% from recent highs, the company continues delineating resources, planning to announce an initial inferred resource estimate by August/September 2024.

CEO Francis McDonald says current conditions make this "a perfect time to be buying lithium stocks" ahead of inevitable future price resurgences, giving developers time to advance assets. Hit rates have been exceptional, with 80-90% of over 34,000 meters drilled intersecting mineralization so far. Another 25,000 meters are planned for early 2024.

The intention is demonstrating scale to showcase "a world-class resource" onsite. Infrastructure and location are crucial for lithium projects, with volumes making transport costs critical. Yellowknife offers key infrastructure advantages over remote sites. Systematic tight-spaced drilling efficiently defines resources before conducting metallurgical and geotechnical studies to support economic studies.

Steady news flow is expected over coming months. Further drilling and study results provide continual upside catalysts. Weak sentiment allows accumulating shares at discounted valuations in a company aggressively expanding known lithium mineralization.

While a buyout is possible, the focus is on independently advancing towards potential future development as market conditions improve in sync with rising long-term demand forecasts. Lithium use for electric vehicles is still early, with extreme price volatility expected. Positioning projects now ahead of supply deficits could allow capitalizing on coming upcycles.

Li-Ft Power's rapid execution contrasts with many explorers, as they purposefully "sow seeds" amidst the current downturn to cultivate sector-leading resources. As the storm passes, their slate of assets could emerge poised to help supply inevitable raw material shortfalls. Early mover advantage and scale could make the difference for investors positioning ahead of the pack.

—

View Li-FT's Power's company profile: https://www.cruxinvestor.com/companies/li-ft-power-ltd

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Philippe Cloutier, President & CEO of Cartier Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cartier-resources-tsxvecr-pitch-perfect-4022

Recording date: 5th December 2023

Cartier Resources offers leverage to a potentially emerging gold district centered around its flagship Chimo Mine property in mining-friendly Quebec. Recent strategic consolidation unified a land package hosting high-grade gold prospects spanning 15 kilometers east and west from this past-producing asset. With existing underground infrastructure and a positive preliminary economic assessment already demonstrating potential project viability, the company aims to systematically explore their holdings to outline new resources at satellite zones that could support centralized production.

According to CEO Philippe Cloutier, last year’s 25,000 meter drill program, updated resource estimate to over 800,000 ounces of gold, and maiden economic study were just first steps in realizing the property’s full potential. Compiling decades of fragmented historical drilling data across newly acquired lands revealed significant high-grade intercepts outside areas of previous modern exploration. Cartier sees strong evidence these new zones bear similarities to the multi-million ounce original Chimo deposit.

Cloutier notes that, unlike surrounding mines where production reached depths around 200 meters, Cartier has proven continuity down to 1500 meters. Applying this understanding to extensive prospective ground hosting shallow gold occurrences near surface could rapidly elevate the resource inventory.

With funding secured for further exploration and project enhancement, 2023 will see Cartier advance studies while testing the most promising new targets. Cloutier aims to provide steady news flow revaluing the company towards comparable peers in the region to reflect the growing resource base. But with unexplored strike length rivaling peer districts hosting 5 to 15 million ounces of gold resources, significant further gains are possible as the story becomes further de-risked.

—

View Cartier Resources' company profile: https://www.cruxinvestor.com/companies/cartier-resources-inc

Sign up for Crux Investor: https://cruxinvestor.com

Interview with James Withall, CEO of Rupert Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/rupert-resources-rup-mine-builders-attracted-to-large-gold-developer-3188

Recording date: 6th December 2023

Ikkari Shaping Up as a Potential Tier-One Gold Asset

Rupert Resources has continued to advance its 100% owned Ikkari discovery in Finland towards becoming a marquee gold project. A recently updated mineral resource estimate has outlined an initial 4 million ounces of indicated gold resources, achieving a key de-risking milestone.

Unlike most gold deposits restricted to narrow veins, Ikkari contains exceptionally wide mineralized zones exceeding 200 meters. This extensive width enables substantially lower-cost bulk underground mining methods compared to conventional narrow vein development.

The reported global resources include a sizeable 2.65 million ounce open pit component at 2.2 g/t gold. Additional higher-grade underground resources contain another 1.4 million ounces. The consistent grades retained across a range of cut-off levels highlight the deposit's robust nature across mining scenarios.

Ongoing pre-feasibility level studies initiated earlier in 2023 are targeting completion by mid-2023. These evaluations will generate crucial technical and economic parameters for feasibility assessments and development decisions. Thanks to the deposit's favorable geometry, Ikkari appears capable of delivering attractive financial returns over a potentially extensive mine life.

While advancing Ikkari towards production, Rupert Resources is returning focus to the substantial regional exploration potential across its widespread land package. The Ikkari discovery resulted from the company's systematic exploration efforts across the emerging Central Lapland Greenstone Belt. Numerous early-stage discoveries have been identified along a highly prospective 12 kilometer mineralized corridor. Most of these targets, including areas surrounding Ikkari, have seen only minimal drill testing.

With over C$50 million in its treasury, Rupert Resources is fully funded to simultanously advance engineering studies at Ikkari while accelerating exploration programs across high-priority regional targets. Success in outlining additional near-surface mineralization could meaningfully augment Ikkari's production profile in future development scenarios.

In summary, recent technical de-risking has transformed Ikkari into a potentially tier-one gold project. Upcoming prefeasibility assessments will quantify the asset's formidable economic prospects. In parallel, resumed regional exploration provides investors with considerable additional upside potential as Rupert Resources seeks to outline Finland's next major gold mining district.
—

View Rupert Resources' company profile: https://www.cruxinvestor.com/companies/rupert-resources

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Todd Ross, MD & CEO of Nordic Nickel Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/nordic-nickel-nnl-new-entrant-to-european-battery-metals-sector-2752

Recording date: 29th November 2023

Nordic Nickel is an ASX-listed nickel sulfide explorer with two district-scale projects in northern Finland. Managing Director and CEO Todd Ross provided an update on the company's progress over the past year.

Since November 2021, Nordic Nickel has kicked off its maiden exploration program at its 240km2 Pulju project. This project already hosts a nickel resource of 278,530 tons. The company drilled 15,000 meters in 28 holes this year, continuing to build on that resource base. The drilling continued to intersect disseminated nickel mineralization and the company aims to update its resource estimate by end-2023.

While focused on expanding the existing resource, Nordic Nickel is also searching for high-grade massive sulfide deposits on the property. Drill results this year included grades up to 4.6% over narrow intervals, indicating the system is nickel-rich with potential for accumulations. Structural interpretation of the significant geological dataset is now underway to identify targets for the next drill campaign in early 2024. The company is planning another 4,500 meters, subject to further financing.

The company's exploration success and location in mining-friendly Finland have attracted early interest from major mining companies like BHP. Nordic Nickel is also in discussions with European automakers looking to secure nickel supply in coming years. The company is working to tap into strong investor appetite in Europe for battery metals projects that can feed the energy transition.

While Finland has an established mining workforce, competition for talent during the winter drilling season is intense. Nordic Nickel has bolstered its team with several key hires in-country to support exploration. The company may also consider a future listing in Frankfurt or London to broaden its investor base.

In just 18 months, Nordic Nickel has executed significant drilling, built an experienced leadership team, and captured the attention of major industry players. With two district-scale projects in a top-tier mining jurisdiction, the company is positioned to create value from Northern Europe's energy transition over the long term. Securing additional financing in the coming months will be key to advancing its high-grade exploration efforts.

—

View Nordic Nickel's company profile: https://www.cruxinvestor.com/companies/nordic-nickel

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Trent Mell, CEO of Electra Battery Materials Corp.

Our previous interview: https://www.cruxinvestor.com/posts/electra-battery-materials-elbm-cobalt-nickel-recycling-contracts-2121

Recording date: 30th November 2023

Electra Positioned to Capitalize on Tightening Cobalt Markets
Electra Battery Materials aims to become a major refined cobalt producer just as demand is set to outpace new mine supply. However, inflationary pressures have challenged the company’s construction timeline and budget this year. Additional funding and government support now sought could position Electra for near-term production to capitalize on rising cobalt prices once its North American refining facility is complete.

The company broke ground in late 2021 on a $200 million cobalt refinery in Ontario, Canada. With the facility's existing assets, total replacement value tops $360 million. Initially on pace for 2023 operations, unexpected cost increases from steel, labor, freight and more forced Electra to slow construction in Q1 2022. Costs were re-baselined 50-100% higher across areas of the project.

Cash conservation became critical amid a tricky market backdrop. But leadership also continued procuring long-lead equipment, advancing battery recycling capabilities on-site, and lining up potential new funding partners. This flexible strategy could allow construction to resume quickly if financing comes through.

Crucially, Electra already has 60-80% of initial cobalt production spoken for through an offtake agreement with electric vehicle giant LG Energy Solutions. Set at fixed pricing periods, the 5-year deal provides cash flow visibility. Battery demand trends bode well for tighter cobalt markets mid-decade as supply requires long investment timelines.

Government Support Targeted
With broad policy initiatives like the US Inflation Reduction Act now prioritizing domestic battery metals, as the sole North American cobalt refiner not yet operational, Electra is vying for backing. Federal funding would allow construction to restart in a non-dilutive manner.

Assuming additional funds are secured as planned next quarter, Electra said it could ship refined cobalt before year-end 2023. Better margins appear achievable over Chinese refining, especially when factoring in ESG benefits of localized production. Lean operations around $2,500/tonne look possible long term.

The project's strong economics even attracted partnership interest from the Quebec government to build a second facility there. While not yet planned, this highlights Phase I's strategic advantages. Once up and running, adding battery recycling and nickel refining would further boost production, revenues and profitability.

Investor Considerations
With cobalt prices down 65% from last April's peak, restarting now allows maximum leverage for when deficits reappear as electric vehicle sales ramp up. Though the timing delay raises execution risks, management has realigned costs and timelines. The CEO believes construction itself now poses lower hurdles than the initial decision-making to launch a new mining project. De-risking factors also include fixed-pricing contracts and a fully permitted brownfield site.

While not without challenges, Electra Battery Materials advanced numerous initiatives in a down market and could quickly move to revenue generation with further backing. Its leadership has managed to keep a steady long-term focus through present industry complexities. Crucially, the company looks to be counter-cyclically creating vital supply infrastructure just ahead of widening North American EV metals shortages over the next five years. The time to fund production appears opportune.
—
View Electra Battery Materials' company profile: https://www.cruxinvestor.com/companies/electra-battery-metals

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Sébastian de Montessus, President & CEO of Endeavour Mining

Our previous interview: https://www.cruxinvestor.com/posts/endeavour-mining-edv-maintaining-high-return-on-capital-invested-3052

Recording date: 4th December 2023

West African Gold Outperformer Boasts Production Growth and Income
Endeavour Mining represents a compelling gold mining investment to capture share price upside tied to rising production profiles and higher gold prices. The West Africa-focused producer maintains low costs, funds growth organically, and sustains sector-leading shareholder payouts. These attributes differentiate Endeavour from struggling peers and position its stock to outperform.

Anchored by 4 cornerstone assets in Senegal, Burkina Faso and Côte d’Ivoire, the miner guides towards lifting gold production from over 1.1 million ounces in 2023 to 1.3-1.4 million by YE/24. The driver comes from 2 expansion projects tracking on time and on budget for completion in mid-2024. Exploration success also bolsters longer-term growth hopes, like at the major 4.5-million-ounce Tanda-Iguela discovery that could emerge as Endeavour’s next core-producing mine.

Sub-$950 all-in sustaining costs make Endeavour one of the lowest-cost gold miners, affording strong cash flow generation even if gold prices moderate. But with prices forecast higher in 2024, margins look poised to expand markedly. Endeavour stands unique for returning over 50% of cash flow back to shareholders, underpinning an approximate 5% dividend yield.

CEO Sébastien de Montessus brings immense industry experience and credibility to bear in allocating capital judiciously towards generating optimal risk-adjusted returns, not just higher volumes. This manifests in a focused regional strategy and selectivity on acquisitions. When competitors stumble operationally, Endeavour’s reliable delivery and West Africa expertise inspires confidence.

Exposure warrants consideration while valuations substantially lag peers. Endeavour offers investors growth, income and upside potential as gold equities re-rate.
—
View Endeavour Mining's company profile: https://www.cruxinvestor.com/companies/endeavour-mining

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Pascal Hamelin, President & CEO of Abcourt Mines Inc.

Our previous interview: https://www.cruxinvestor.com/posts/abcourt-mines-abi-low-capex-start-up-options-at-historic-gold-mine-3226

Recording date: 29th November 2023

Reawakening High-Grade Giant: Abcourt Positioned to Unlock Quebec Gold Mine’s Potential

Abcourt Mines has spent 2022 quietly turning around its permitted Sleeping Giant gold mine complex. With infrastructure now prepared, new CEO Pascal Hamelin sees underground mining commencing imminently to generate profits funding expansions. The aim is to resuscitate the high-grade asset to become a cornerstone of growth.

Fully constructed mill circuits and existing underground access remove obstacles to near term production after years of instability. An extensive cleanup even recovered over $1 million of residual gold grading up to 60 grams per ton from the dormant equipment.

Hamelin estimates Sleeping Giant can achieve commercial scale of 750 tons per day within 18 months. But the initial phase starting now will ramp up cautiously from 1,000 tons a week. As mining progresses, cash flows will support cost-effective exploration of satellite deposits, extending mine life beyond the current 5-7 years.

This nimble “proof is in the pudding” approach relies on consistent execution, not bold projections. While Sleeping Giant lacks scale, its gold grades over 5 grams per ton insulate against inflation. By delivering within modest plans, Abcourt can organically augment resources and production to regain market confidence.

—

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

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Terry Lynch, CEO of Power Nickel

Our previous interview: https://www.cruxinvestor.com/posts/power-nickel-tsxvpnpn-high-grades-give-confidence-that-scale-will-come-3883

Recording date: 26th November 2023

Massive Deficits Forecast as Power Nickel Advances Quebec Asset into Looming Nickel Boom
Nickel has emerged as one of the most crucial commodities supporting the global energy transition and electric vehicle revolution. As demand forecasts call for 4 million tonne annual deficits within a decade, nickel projects with scale potential stand to thrive. Power Nickel presents a unique opportunity to position in a promising emerging developer just as the nickel price launches into a structural bull market.

According to CEO Terry Lynch, Power Nickel’s Nisk project in Quebec holds key similarities to the geological settings that yielded world-class nickel mines like Voisey’s Bay and Sudbury. Yet despite likely superior economics, Nisk carries a fraction of the valuation accorded to nickel peers at comparable stages.

The current resource spans just one million tonnes but initial analysis points to tremendous expansion potential both laterally and at depth. For context, major nickel sulfide mines often tap deposits stretching from 500m down to 2kms underground.

Supported by leading industry partners and Quebec’s generous incentives, Power Nickel recently raised capital to extend its exploration drilling campaign. The goal is proving up an initial 10 million tonne resource capable of supporting a multi-decade operation by the end of 2024.

Yet blue sky potential exists for significantly more. Having identified three additional mineralized pods nearby, Lynch sees scope for 30-50 million tonnes across the 75-square-kilometer land package—in line with the largest nickel mines globally.Such a sizable asset could produce over 10,000 tonnes of nickel annually plus substantial co-products.

At recent prices near $13 per pound, a 10,000-tonne per annum operation would generate almost US$300 million in nickel revenues alone. With copper nearing US$4 per pound and cobalt at $80, Nisk’s concentrate could fetch over US$1 billion annually.

These stellar economics explain strategic partner CM Group’s decision to invest alongside Power Nickel recently. The capital will complete feasibility studies maximizing future revenues.

Lynch expects feasibility to demonstrate Nisk’s robust economics even if nickel prices halve from current levels. With around US$300 million in pre-production capex anticipated, he sees costs getting repaid within 5 years. Attractive returns appear in reach before factoring Quebec incentives, which could fund nearly half the initial capital outlay.

As Power Nickel continues tackling short sellers it blames for depressing share values, strong operations execution aims to lay the groundwork for a dramatic rerating. The stock trades at steep discount to global nickel peers, signaling huge upside for investors positioning ahead of wider market recognition.
—
View Power Nickel's company profile: https://www.cruxinvestor.com/companies/power-nickel

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Jean-Paul Tsotsos, Interim CEO of Chesapeake Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chesapeake-gold-tsxckg-uncovering-a-shallow-oxide-gold-treasure-at-the-lucy-discovery-4174

Recording date: 30th November 2023

Chesapeake Gold Presents Attractive Investment Opportunity with Large Gold Deposit Supported by Proprietary Recovery Technology and Exciting New High-Grade Discovery

Led by newly appointed CEO Jean-Paul Tsotsos, Chesapeake Gold is advancing a dual-asset portfolio centred around its flagship 19 million ounce Metates gold-silver deposit and its high-potential new Lucy gold discovery, both located in mining-friendly Mexico.

The Metates project hosts a world-class resource base, but the mineralization is refractory, requiring innovative processing solutions to unlock the value. Chesapeake believes its proprietary pre-treatment oxidation technology can double gold and silver recoveries compared to standard methods for this type of challenging ore. Recent test work has already demonstrated significantly improved leach kinetics and recoveries. Ongoing optimization continues aimed at further enhancing project economics. Tsotsos sees Metates as a long-term production asset with over 16 years of initially projected mine life from just a quarter of the defined resources in the latest preliminary economic assessment.

However, while steady progress occurs on this large flagship, Chesapeake has also had early exploration success at its Lucy gold project where initial drilling has intersected exceptionally high near surface grades up to 25 meters of 6 g/t gold. Tsotsos highlights how rare it is to find such exceptional mineralization from surface, let alone in areas with established infrastructure like Durango. The oxide gold mineralogy also means simple, low-cost processing options without the complications of refractory ore. Several additional target areas remain untested along strike and at depth, providing considerable resource expansion potential as drilling continues to demonstrate scale and continuity.

With approximately $22 million in cash on hand, Chesapeake is fully financed to accelerate work programs at both Lucy exploration and Metates process optimization without any imminent need to raise additional capital. Tsotsos sees considerable blue sky potential to rapidly progress Lucy and achieve key project de-risking milestones by the end of 2024 to create and crystallize tangible value drivers for investors. Continued positive updates could drive speculative appeal and share price gains as the market recognizes Chesapeake’s success advancing dual high-quality gold opportunities in a tier-one mining jurisdiction like Mexico. The relative undervaluation compared to gold developer peers highlights a compelling risk/reward investment thesis. Tsotsos and his experienced executive team have the technical and financial background to successfully execute on planned growth strategies and elevate Chesapeake to the next stage of corporate development.
—
View Chesapeake Gold's company profile: https://www.cruxinvestor.com/companies/chesapeake-gold

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Victor Cantore, President & CEO of Amex Exploration Inc.

Our previous interview: https://www.cruxinvestor.com/posts/amex-exploration-tsxvamx-advancing-towards-maiden-resource-and-pea-3913

Recording date: 29th November 2023

Advancing a High-Grade Gold District in Quebec

Amex Exploration continues systematically developing their wholly-owned Perron gold project in Quebec, Canada. Located in the world-class Abitibi mining region, the 15 kilometer property lies along the prolific Perron Fault and related mineralized structures. Ongoing drilling by Amex has delineated multiple high-grade gold zones that will form the foundation of an initial resource estimate targeted for publication in Q1 2024.

President and CEO Victor Cantore stresses that “not all ounces are created the same” when highlighting Perron’s exceptional grades exceeding one ounce per tonne gold. These high values captured investor interest despite turbulent market conditions, allowing Amex to raise $50 million in early 2022 to accelerate exploration and development initiatives. The current cash position stands between $14-16 million, providing over a year of financial runway.

In tandem with drilling, Amex has commissioned mining studies to determine optimal development plans and economics. While open pit potential exists closer to surface, Cantore believes the remarkably high underground grades could support priority development via ramp access. An economic assessment will analyze various scenarios to determine which unlocks the most value. Permitting and local infrastructure already in place further strengthen Perron’s prospects as an achievable near-term production asset.

In addition to expanding known mineralization, most of the expansive Perron property remains untested and underexplored. Cantore states that of roughly 20 total kilometers with strong discovery potential, early work has only drilled approximately 4 kilometers. Several conceptual targets generated significant results but have yet to be followed up, presenting substantial upside even beyond the project’s existing scale.

Supported by an experienced technical team, Amex offers a unique exposure amongst junior gold developers. In Canada especially, easily capitalized high-grade projects with demonstrated potential for economic viability represent the optimum investment profile. As gold markets stabilize and risk appetite increases, Perron’s compelling fundamentals position Amex Exploration to deliver outsized returns.

—

View Amex Exploration's company profile: https://www.cruxinvestor.com/companies/amex-exploration

Sign up for Crux Investor: https://cruxinvestor.com