Company Interviews

Interview with Max Porterfield, President & CEO of Callinex Mines Inc.

Our previous interview: https://www.cruxinvestor.com/posts/callinex-mines-tsxvcnx-exciting-high-grade-vms-discoveries-in-northern-manitoba-3288

Recording date: 20th September 2023

Callinex Mines Inc. (TSX-V: CNX, OTCQX: CLLXF) is a Canadian mineral exploration company focused on discovering and developing high-grade copper, zinc, gold and silver deposits within the Flin Flon mining district in Manitoba. The company's main projects are the Pine Bay Project and the Nash Creek Project.

The Pine Bay Project contains the high-grade Rainbow Deposit, which has an indicated mineral resource of 3.44 million tonnes at 3.59% copper equivalent and an inferred mineral resource of 1.28 million tonnes at 2.95% copper equivalent. The project is located 16km from Flin Flon and its infrastructure.

The Nash Creek Project, located in the Bathurst mining district of New Brunswick, has an indicated mineral resource containing 963 million pounds of zinc equivalent and an inferred mineral resource containing 407 million pounds of zinc equivalent. A 2018 Preliminary Economic Assessment outlined a potential 10-year open pit mining operation for the project.

Callinex Mines is focused on expanding its high-grade copper, zinc, gold and silver discoveries in established Canadian mining districts. The locations provide access to infrastructure like roads, rail, power and processing facilities. 

The company's technical team has a strong track record of discovery and development success in these districts. Callinex has a tight capital structure and believes it is well positioned to deliver value through new discoveries and resource expansion.

View Cartier Resources' Company Profile: https://www.cruxinvestor.com/companies/callinex-mines

Interview with Peter Steenkamp, CEO of Harmony Gold Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/harmony-gold-hmy-diversification-and-organic-growth-focus-3079

Recording date: 19th September 2023

Harmony Gold Mining Company Limited (JSE: HAR, NYSE: HMY) is a South Africa-based gold mining company with assets in Papua New Guinea. Harmony operates 9 underground mines and 2 open-pit mines in South Africa, focused on optimised, high-grade and surface operations. The company also operates the Hidden Valley open-pit gold and silver mine in Papua New Guinea. In addition, Harmony has copper exposure through its proposed acquisition of the Eva Copper Project in Australia and its interest in the Wafi-Golpu copper-gold project in Papua New Guinea.

Harmony has gold mineral resources of 137.8 million ounces, including reserves of 39.3 million ounces with an average reserve grade of 6.2g/t. The company produced 1.47 million ounces of gold in FY2023 (to June 2023). Harmony is targeting annual production of 1.38-1.48 million ounces in FY2024. 

Key upcoming catalysts include advancing the Eva Copper and Wafi-Golpu projects, extending high-grade zones at Moab Khotsong in South Africa, and completing Phase 2 of its renewable energy program. 

Harmony maintains a strong balance sheet with net debt/EBITDA of 0.2x and available liquidity of $385 million to support its growth pipeline. 

The company is focused on improving margins and directing capital towards higher quality assets.

View Harmony Gold's Company Profile: https://www.cruxinvestor.com/companies/harmony-gold

Interview with Hayden Locke, President & CEO of Marimaca Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-mari-giant-mitsubishi-swoops-in-for-20m-stake-3253

Recording date: 19th September 2023

Marimaca Copper is a Chilean copper exploration and development company focused on its flagship Marimaca project located in the Antofagasta region. Marimaca represents a significant new copper oxide discovery and the only major find made in Chile over the past five years. With high-grade deposits situated close to surface, the project provides an opportunity for relatively low-risk, low-cost copper production in a prime location.

The proximity of the Marimaca project to existing infrastructure, power supply, and ports enables efficient development with modest capital requirements. The company sees potential for additional district-scale Marimaca-style discoveries by leveraging new geological insights to expand exploration frontiers.

As major mines in Chile face depletion, Marimaca Copper aims to sustain the country's global leadership in copper production through innovative exploration and responsible mining practices. The company's technical team brings expertise in developing copper projects in the region using methods focused on safety, sustainability, and community engagement.

With copper in high demand for renewable energy and clean technologies, Marimaca represents a source to help meet growing needs. By pursuing a dual strategy of maximizing the value of its flagship asset and making new discoveries, Marimaca Copper seeks to create shareholder value through disciplined copper development.

View Marimaca Copper's Company Profile: https://www.cruxinvestor.com/companies/marimaca-copper

Interview with Sean Roosen, Founder & CEO of Osisko Development

Recording date: 19th September 2023

Osisko Development is pioneering sustainable gold mining in North America. With a focus on revitalizing past-producing properties in mining-friendly regions, Osisko aims to unlock the untapped potential of historic gold districts.

Led by a world-class team under Sean Roosen, Osisko has a proven track record of discovering, funding, and operating tier-1 mines, including Canada's largest gold operation.

Osisko Development is advancing flagship projects in British Columbia, Utah, and Sonora that offer substantial opportunities for continued exploration and resource growth. Supported by significant mining histories, Osisko Development's expansive land packages provide the foundations for district-scale development.

The company's flagship project, the Cariboo Gold project in British Columbia, is a significant asset. Spanning over 2,000 square kilometers, it represents a district-scale land package in a historically gold-rich region. The Cariboo Gold project boasts substantial gold reserves. detailed to be several million ounces of gold, emphasizing the potential of this asset to yield significant returns with the next significant milestone involving finalising the FS

Another noteworthy project in Osisko's portfolio is the Tintic project. Located in Utah, this project further underscores the company's commitment to exploring and developing gold-rich zones in North America. Like Cariboo, Tintic holds promise, with substantial exploration upside, with further drilling and exploration programs underway to better define the resource. 

One to watch in the months and years ahead!

View Osisko Development's Company Profile: https://www.cruxinvestor.com/companies/osisko-development

Interview with Paul Huet, Chairman & CEO & Oliver Turner, Executive VP of Karora Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/karora-resources-tsxkrr-record-gold-production-future-growth-plans-3296

Recording date: 18th September 2023

With a focus on sustainable growth, Karora Resources has set its sights on becoming the next mid-tier gold producer. Headquartered in Western Australia, Karora operates the integrated Beta Hunt mine and Higginsville Gold Operations. 

Karora aims to increase gold production to 170,000-195,000 ounces by 2024. The company achieved record annual production of 133,836 ounces in 2022 and has produced over 80,000 ounces in the first half of 2023. 

The company believes growing to 200,000 ounces per year production in a Tier 1 mining jurisdiction will re-rate its valuation to the next tier of gold producers. Karora is debt-free and well-positioned to self-fund its growth plan from operational cash flow.

To meet its production goals, Karora continues to expand its mineral resources through acquisition, exploration and development. The company's multi-asset portfolio provides diversity across several high-quality gold properties.

Processing capacity is a key enabler, with Karora operating two mills in Western Australia - Higginsville and Lakewood - with combined capacity of 2.5 million tonnes per annum. These mills are fed from Karora's flagship mines Beta Hunt and Higginsville, as the company executes its growth strategy with sustainable costs and production in mind.

Karora reached carbon neutrality in 2021 and 2022 and is committed to ESG leadership.

View Karora Resources' Company Profile: https://www.cruxinvestor.com/companies/karora-resources

Interview with Lon Shaver, Vice President of Silvercorp Metals (TSX/NYSE: SVM)

Our previous interview: https://youtu.be/fUKWQETAeE0. and https://youtu.be/P2JJ1eVnFTE

Recording date: 19th September 2023
 

Silvercorp Metals President Lon Shaver and Orecorp Managing Director Hank Diederichs provided an update on Silvercorp’s proposed acquisition of Orecorp and its Nyanzaga gold project in Tanzania. The deal was announced in August and will expand Silvercorp’s portfolio beyond its core assets in China.

Orecorp shareholders will own approximately 18% of the combined company after the acquisition closes. Diederichs noted Orecorp has a strong shareholder base of retail, high net worth individuals, and institutions that are enthusiastic supporters of Nyanzaga.

Shaver highlighted Nyanzaga as a permitted, high quality gold project with robust economics and multi-decade mine life potential. The feasibility study outlined capital costs of $474 million, which Silvercorp believes can be optimized. The company intends to fund development through its existing $170 million cash balance plus a range of debt financing options.

Since the acquisition was announced, Silvercorp has already provided $28 million to Orecorp to advance early works focused on community relocation at Nyanzaga. The project could reach production in late 2025, with key upcoming derisking catalysts being completion of the acquisition, release of Silvercorp’s development plans, and securing project financing.

In China, Silvercorp continues exploration and phased expansions at its Ying mine complex to extend mine life. Shaver stated the Orecorp deal transforms Silvercorp into a precious metals producer with geographical diversity while still allowing organic growth from its cash flowing Chinese assets.

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Learn more: https://cruxinvestor.com

Interview with Kyle Floyd, CEO of Vox Royalty (TSX:VOXR)

Our previous interview: https://youtu.be/YWEibfLzbxs and https://youtu.be/QWYPralBVRw

Recording date: 19th September 2023

Vox Royalty CEO Kyle Floyd provided an update on the royalty company's performance and strategy in an interview at the Denver Gold Forum conference. Vox focuses on acquiring existing third-party royalties rather than originating streaming deals directly with operators.

In 2022, Vox is on track to generate $11-13 million in royalty revenue, up from $9.7 million in 2021. Floyd highlighted a recent royalty acquisition that is already yielding a 15x return on invested capital, demonstrating Vox's ability to source high-return royalties.

Vox leverages extensive databases and boots-on-the-ground deal teams to identify existing royalties globally, often from atypical owners like doctors, family trusts, and telecom companies. Since 2019, Vox has completed more third-party royalty acquisitions than any other company.

This unique sourcing provides durable competitive advantages. Vox can transact outside competitive bidding wars for typical royalty financings, allowing it to consistently find strong returns even amidst an increasingly competitive royalty sector.

Floyd stated the market is undervaluing Vox's existing portfolio and track record. The company will continue its disciplined strategy of deploying capital into overlooked royalty opportunities to compound portfolio returns over time.

With a core focus on maximizing returns on invested capital rather than competing on absolute deal rates, Floyd sees Vox's business model as differentiated. The company offers pure exposure to increasing cash flows from a diversified royalty portfolio assembled at high rates of return.
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Learn more: https://cruxinvestor.com

Interview with Ron Thiessen, CEO of Northern Dynasty Minerals (TSX/NYSE:NAK)

Recording date: 19th September 2023

Northern Dynasty Minerals CEO Ron Thiessen provided an overview of the company's giant Pebble copper-gold project in Alaska in an interview at the Denver Gold Forum conference. Thiessen stated over $1 billion has been spent on drilling, engineering studies, and environmental work to advance Pebble, one of the world’s largest undeveloped copper-gold-molybdenum deposits.

The Pebble deposit contains approximately 57 billion pounds of copper, 71 million ounces of gold, and significant molybdenum and silver. Initial mine plans outline a project producing 300-350 million pounds of copper and 300,000-350,000 ounces of gold annually over a 20-year mine life. The asset has strong economics with an estimated IRR of 16% and NPV of $2.3 billion at a 7% discount rate.

While positive economic studies and engineering de-risking are complete, Pebble was denied a key permit in late 2020. Thiessen stated political factors in an election year likely influenced what should have been a science-based decision. Northern Dynasty has subsequently filed an appeal and legal challenge.

A pending Supreme Court decision could help overturn an EPA determination against Pebble as soon as 2023. Thiessen sees several upcoming potential catalysts that could unlock permitting and development of one of the world’s premier undeveloped copper-gold resources.

In the interim, Northern Dynasty has $60 million from a recent royalty sale to fund critical path work. Thiessen noted Pebble remains a highly coveted asset that senior miners around the world would like to develop when permitting risks are resolved.

Learn more: https://cruxinvestor.com

Interview with John Lee, Executive chairman & CEO of Silver Elephant Mining

Our previous interview: https://www.cruxinvestor.com/posts/silver-elephant-mining-elef-the-waiting-game-timing-the-market-3101

Recording date: 14th September 2023

Silver Elephant Mining is focused on its flagship Pulacayo silver-lead-zinc project in Bolivia. The company recently announced a deal to truck and process near-surface oxides from Pulacayo at a third-party facility.

In an interview, Chairman and CEO John Lee outlined plans to use the modest cash flows from this agreement to advance Pulacayo's underground sulfide potential. However, formal studies have not been conducted and risks remain in recalibrating the project to feasible smaller-scale production.

Under the 5-year deal, Silver Elephant will provide around 800,000 tonnes of oxidized material grading approximately 230 g/t silver from its Paca deposit to partner Minera NDNM's processing plant. This is expected to generate $5 million in prepayments and cost reimbursements, phased over 18 months. While not linked to silver prices, NDNM will pay additional sums if silver rises above $28-32 per ounce.

Silver Elephant aims to direct these limited cash flows towards preliminary engineering and feasibility work on underground sulfide mining at Pulacayo. Historic bonanza-grade production occurred from high-grade veins within the larger resource. However, formal studies have not been conducted to verify feasible parameters and economics. Required permitting also presents risks.

With approximately 100 million ounces of silver in the ground, Pulacayo offers resource upside. However, advancing the project to construction amid challenging markets presents hurdles. While the deal provides non-dilutive funding through 2025, shareholders still face uncertainty regarding development timelines and ultimate economic viability.
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View Silver Elephants's Company Profile: https://www.cruxinvestor.com/companies/silver-elephant-mining-corp

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Interview with Nolan Peterson, CEO of Sandstorm Gold Royalties (TSX:SSL, NYSE:SAND)

Our previous interviews: https://youtu.be/EaxtScCYzx0. and  https://youtu.be/Ro4pOafAoi4

Recording date: 18th September 2023

Sandstorm Gold President and CEO Nolan Watson provided an update on the streaming company's strategy in an interview at the Denver Gold Forum conference. Watson noted Sandstorm plans to be "boring" over the next couple of years, focusing on paying down debt and waiting for four key assets to reach production.

Watson sees volatility declining in Sandstorm's share price with major shareholders who had been selling down now mostly cleared out. Going forward, trading should be more fundamentals-driven. Institutional investors remain bullish on gold given high interest rates and see an upside if rates start falling.

On the macro outlook, Watson believes central banks are supporting the institutional liquidation of gold, resulting in significant net buying. He sees gold emerging as a viable alternative reserve currency to the U.S. dollar over time as countries push for de-dollarization.

Sandstorm expects to produce around 95,000 gold equivalent ounces in 2022. With no additional acquisitions, four assets under construction are slated to drive production to around 125,000 ounces by 2027, representing over 30% growth. These include Equinox Gold's Greenstone mine in Canada, Ivanhoe's Platreef mine in South Africa, Barrick's Robertson mine at Cortez in Nevada, and Houndé in Burkina Faso.

Given high interest rates, Sandstorm plans no major acquisitions in the near term. The focus is on paying down debt taken on to fund recent deals. Watson may look to sell non-core assets to accelerate debt repayment. Once debt is reduced, Sandstorm has locked in an option to acquire a $225 million stream from Glencore's Mara project.

In summary, Sandstorm offers stable growing cash flow leverage to the gold price from a diversified portfolio of world-class mines. With no equity issuances needed, investors can position for pending production growth through a period of debt reduction and anticipated sector upside.
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Learn more: https://cruxinvestor.com