Interview with Frederick H. Earnest, President & CEO of Vista Gold

Our previous interview: https://www.cruxinvestor.com/posts/vista-gold-tsxvgz-smaller-scale-strategy-to-enhance-economics-5520

Recording date: 11th December 2024

Vista Gold Corp (NYSE-AMERICAN & TSX:VGZ) has unveiled plans to transform its flagship Mount Todd gold project in Australia's Northern Territory through a new, optimized development approach. The company is pivoting from its previous large-scale development plan to a more manageable and capital-efficient operation.

The new feasibility study, currently underway, will evaluate a 15,000 tonne per day operation, significantly scaled down from the original 50,000 tonne per day plan. This revised approach aims to reduce initial capital costs from over $1 billion to less than $400 million, representing a 60% reduction. Despite the smaller scale, the project is expected to maintain robust production of 150,000-200,000 ounces of gold annually over a mine life exceeding 30 years.

Vista Gold plans to enhance project economics by implementing a higher cut-off grade of 0.45-0.5 g/t gold, up from the previous 0.35 g/t. This adjustment is expected to lift the reserve grade closer to 1.0 g/t, though it will reduce the overall reserve to approximately 5-5.5 million ounces of gold. The company will also incorporate contract mining to optimize capital costs, though this will result in slightly higher all-in sustaining costs of $1,200-$1,250 per ounce.

Recent exploration success has added another dimension to the project's potential. Drilling at the new South Crossload area has revealed significant high-grade intercepts, including 2.1 meters at 13.0 g/t gold and 1.0 meter at approximately 26 g/t gold. This previously unknown style of mineralization suggests potential for future underground mining operations to supplement the main project.

A key advantage of Mount Todd is its advanced permitting status, with all major authorizations secured, including Federal Environmental Impact Statement approval and Northern Territory operating permits. This positions the project for rapid advancement once a construction decision is made.

The development strategy aligns with broader industry trends, as global gold producers face declining reserves and limited new discoveries. Vista Gold's CEO Frederick Earnest emphasizes that the industry cannot sustain current production levels of approximately 3,000 tons of gold annually without developing new projects and making major discoveries.

With the feasibility study expected to be completed in mid-2025, Vista Gold aims to demonstrate Mount Todd's potential as a significant new gold producer in a stable mining jurisdiction. 

View Vista Gold's company profile: https://www.cruxinvestor.com/companies/vista-gold-corporation

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

Interview with Bruce Lane, Executive Director of GTI Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-powering-up-lo-herma-isr-uranium-project-in-wyoming-6279

Recording date: 12th December 2024

GTI Energy has announced a significant milestone at its Luma ISR uranium project in Wyoming, with an updated resource of 8.57 million pounds U3O8, representing a 50% increase. Notably, 30% of the resource has been upgraded to the indicated category, strengthening the project's development potential.

The company believes this resource size is sufficient to support a central processing plant and satellite operation model, common in Wyoming's uranium sector. The project also holds additional exploration upside of 6-11 million pounds, while GTI's total Wyoming resource inventory exceeds 10 million pounds.

GTI is now advancing a scoping study, expected in the first half of 2025, to establish project economics and development options. The study will particularly examine the viability of a central processing plant and satellite facilities, following a model successfully employed by other operators in the region like Ur-Energy.

Wyoming's status as an established uranium mining jurisdiction, with seven permitted facilities and multiple advancing projects, provides GTI with significant advantages. The company's CEO Bruce Lane emphasizes that uranium projects are executable in Wyoming "as long as the price is there," noting current market conditions appear supportive.

The company occupies a strategic position in the uranium development lifecycle, more advanced than early-stage explorers but not yet at the level of fully permitted producers. This positioning offers investors exposure to uranium price upside while potentially carrying lower risk than pure exploration plays.

The broader uranium market context appears favorable, with growing supply deficits and increasing focus on domestic U.S. production. Recent geopolitical developments, particularly regarding Russian supply disruptions, have heightened the value of U.S.-based uranium projects. As Lane notes, "U.S. pounds are obviously looking more and more valuable as the U.S. tries to backfill that 50 million pound annual gap."

The investment case for GTI centers on several key factors: its meaningful resource base in an established mining jurisdiction, upcoming scoping study as a potential catalyst, exposure to uranium price upside, and the increasing attractiveness of U.S. projects to domestic utilities. The company currently trades at what it considers a discount to peers on a per-pound basis.

Looking ahead, the uranium industry faces a structural supply deficit as nuclear energy demand growth outpaces primary mine supply. This situation, combined with increasing focus on supply security and government support for domestic production, creates opportunities for projects in stable jurisdictions like the U.S. to advance and help fill the supply gap.

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

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

Interview with Dan Blondal, CEO at Nano One Materials Corp.

Our previous interview: https://www.cruxinvestor.com/posts/nano-one-materials-tsxnano-patented-process-slashes-cost-accelerates-battery-production-5357

Recording date: 10th December 2024

Canadian technology company Nano One Materials is revolutionizing lithium-ion battery manufacturing with its innovative one-pot process for cathode materials production. The company's approach significantly reduces costs, complexity, and environmental impact by eliminating wastewater and combining multiple manufacturing steps into a single reaction.

Traditional cathode material production involves separate precursor (PCAM) and cathode active material (CAM) processes, often conducted in different countries. Nano One's patented technology streamlines this by mixing lithium and other metals together in one step, creating the final cathode powder more efficiently.

The company is initially focusing on lithium iron phosphate (LFP) cathodes, known for being the lowest cost, safest, and longest-lasting option in the lithium-ion battery family. While historically considered less energy-dense than alternatives, LFP has seen significant improvements and currently commands up to 70% market share in China.

To commercialize its technology, Nano One has partnered with global engineering firm Worley to develop standardized, modular plant designs. This partnership aims to create a licensing model where chemical, battery, or industrial companies can implement the technology with reduced engineering costs and faster deployment times. The business model includes upfront licensing fees and ongoing royalties based on plant output.

The company has gained significant government support, receiving US $12.9 million from the U.S. Department of Defense and CAD $18 million from the Quebec government. These investments support the expansion of Nano One's Quebec facility and demonstrate confidence in the company's potential to strengthen North American battery supply chains.

According to CEO Dan Blondal, the process delivers up to 30% reduction in operating costs, over 30% reduction in capital costs, and up to 80% energy reduction compared to traditional methods. The elimination of wastewater treatment infrastructure also simplifies plant permitting and operations.

Nano One's technology is chemistry-agnostic, meaning it can be adapted for various battery chemistries beyond LFP. This versatility, combined with growing demand for electric vehicles and energy storage solutions, positions the company to capitalize on the expanding battery market. Industry forecasts project the lithium-ion battery cathode materials market to reach $89 billion by 2030.

With battery gigafactories under construction across North America and Europe, Nano One's clean manufacturing process and modular plant strategy could play a crucial role in establishing localized, sustainable battery supply chains outside of Asia.

Learn more: https://www.cruxinvestor.com/companies/nano-one-materials

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

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-unlocking-value-in-sudburys-high-grade-copper-nickel-projects-5062

Recording date: 10th December 2024

Magna Mining is set to acquire the McCreedy West copper mine and other Sudbury assets from KGHM in a transformational $9.3 million deal expected to close in Q1 2025. The acquisition includes the producing McCreedy West mine, two mines on care and maintenance (Levack and Podolsky), and five exploration properties in the Sudbury Basin.

McCreedy West, currently producing 317,000 tonnes annually at 1.6% copper, will serve as the foundation for Magna's growth strategy. The underground mine features three distinct zones: a nickel-rich Main zone, copper-dominant 700 Complex, and PGM-rich PM zone. Magna plans to optimize and expand production from the current 900 tonnes per day to 1,500 tonnes per day by the end of 2025, potentially generating $20-40 million in free cash flow by 2026.

The company has outlined an ambitious development sequence, using McCreedy West's cash flow to fund the restart of the historic Levack mine in 2026. Levack contains a high-grade resource of 700,000 tonnes at 4% copper, 1% nickel, and 4-5 g/t PGMs. During its previous operation under FNX Mining, Levack consistently produced exceptional grades of 8-10% copper with significant precious metal credits.

Magna's growth strategy extends beyond these initial assets. The company plans to advance its 100%-owned Crean Hill project, with a pre-feasibility study scheduled for H2 2025 and potential production by 2027. By year-end 2027, Magna envisions operating three mines in commercial production, with Podolsky representing a fourth future opportunity.

The acquisition particularly resonates with Magna's management team, led by CEO Jason Jessup, who previously operated these assets at FNX Mining. Under their management, FNX transformed similar non-core INCO assets into a $1.5 billion company that was later acquired.

Beyond the production potential, Magna sees significant exploration upside, particularly in the 2-kilometer trend between McCreedy West and Levack. This underexplored footwall environment has historically yielded high-grade discoveries, and the company expects to announce a new discovery within two years.

The strategy aligns with growing copper demand driven by global electrification trends. S&P Global forecasts copper demand to double to 50 million metric tons by 2035, driven by electric vehicles, renewable energy infrastructure, and grid modernization. With established infrastructure in the tier-one Sudbury jurisdiction and access to multiple processing facilities, Magna is positioning itself to capitalize on these favorable market fundamentals while minimizing capital requirements through staged development of its asset portfolio.

View Magna Mining's company profile: https://www.cruxinvestor.com/companies/magna-mining

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

Interview with Tim Harrison, Managing Director of Ionic Rare Earths

Our previous interview: https://www.cruxinvestor.com/posts/ionic-rare-earths-asxixr-low-cost-high-margin-magnet-recycling-play-6278

Recording date: 10th December 2024

Australia-listed Ionic Rare Earths Limited (IRE) is making significant strides in its magnet and heavy rare earths recycling project in Belfast, Northern Ireland. The company expects to receive substantial support from the UK government in the form of grant funding in Q1 2025, following the successful completion of a feasibility study.

IRE's Belfast plant is set to provide the UK with sovereign capability for magnet rare earths, which are crucial components in the electric motors used in EVs and wind turbines. By securing a domestic source of these critical materials, the project aims to support the UK's automotive sector, which employs around one million people.

The UK government has recognized the strategic importance of the project and has already provided £5 million in grants and commitments to date. The upcoming grant allocation, part of the £850 million Automotive Transformation Fund, is expected to be a significant cornerstone commitment towards the £85 million capital expenditure required for the commercial plant.

IRE's strategy involves leveraging its intellectual property and process design expertise to partner with industry players and investors, minimizing its own capital requirements. The company has demonstrated its recycling technology at pilot scale and is in discussions with strategic investors and potential offtake partners.

To expand globally at a lower cost, IRE is pursuing a licensing model, partnering with local companies to establish joint venture facilities. The company has already formed a joint venture in Brazil called Viridion, which plans to build rare earths recycling capacity and a refinery to process mixed rare earth carbonate from its Colossus project.

One of the key advantages of IRE's magnet recycling business model is its potential for growth. As rare earth magnet production increases to meet the growing demand from EVs and wind power, the amount of scrap and waste material available for recycling will also increase, providing a steady feedstock for IRE's plants.

The outlook for magnet rare earths is strong, driven by the global shift towards electric vehicles and renewable energy. As countries and automakers set ambitious targets for EV adoption and the expansion of wind power, the demand for magnet rare earths is expected to soar. Recycling offers a sustainable and geopolitically secure alternative to traditional mining, and IRE is well-positioned to capitalize on this growing market opportunity.

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

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

Interview with Mark Chalmers, President & CEO of Energy Fuels

Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-nyseuuuu-base-resources-acquisition-approved-5897

Recording date: 6th of December, 2024

Energy Fuels (NYSE: UUUU), a leading U.S. uranium producer, has received significant news with the Madagascar government lifting a five-year suspension on its Toliara heavy mineral sands project. This development marks a major milestone in the company's strategy to build a critical minerals hub around its core uranium business.

The Toliara project, acquired through the purchase of Base Resources in October 2024, is described by CEO Mark Chalmers as a "world-class, low-cost, world-scale heavy mineral sand project with millions of tons of monazite." The company plans to begin a 14-month final investment decision process, with potential construction starting in early 2026 and production targeted for 2028.

While diversifying into critical minerals, Energy Fuels maintains its position as the largest uranium producer in the United States. The company operates multiple mines, including Pinyon Plain and La Sal, with plans to restart the Whirlwind mine in spring 2025. Its White Mesa Mill in Utah currently has approximately one million pounds of uranium in its processing pipeline.

The company's financial position remains strong, with $180 million in working capital and zero debt. Energy Fuels has already sold 450,000 pounds of uranium in 2024 at an average price of $84 per pound, with only 300,000 pounds committed for 2025, providing exposure to potential price increases.

In the broader uranium market, Chalmers notes that while current prices in the high $70s per pound are sufficient for existing projects with paid-off capital costs, the market needs to consider a "fully-loaded" price that accounts for finding, permitting, building, and operating new projects. This suggests potential upward pressure on uranium prices to incentivize new supply.

The company's strategic positioning aligns with increasing U.S. focus on domestic critical minerals production. While not currently relying on government funding, Energy Fuels is positioning itself for potential large-scale support, with Chalmers indicating future funding requests could be in the billions rather than millions of dollars.

The scale of the challenge in domestic uranium production is significant. With U.S. annual uranium consumption at 45 million pounds, Chalmers provides perspective on production targets: "To get up to about 5 million pounds of uranium is a big step for the sector in the United States. To get to 10 is a huge step... that's not going to happen anytime soon."

Energy Fuels' combination of operational uranium assets, critical minerals development, and strong balance sheet positions it as a key player in the U.S. strategic minerals sector, with multiple catalysts for growth ahead.

Learn more: https://www.cruxinvestor.com/companies/energy-fuels

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

Interview with Farhad Abasov, Director & Chairman of Millenial Potash

Recording date: 6th December 2024

Millennial Potash (TSX-V:MLP), a Canadian junior mining company, is quickly advancing its world-class Banio potash project in Gabon, West Africa. With a massive indicated and inferred resource of 1.7 billion tons from just two drill holes, the project boasts immense upside potential as it covers only 2% of the property's total area.

What sets Banio apart is its potential to become one of the world's lowest-cost potash producers. The preliminary economic assessment outlines impressive economics, with operating costs estimated at $61 per ton – significantly lower than the $90-100 per ton range of the largest producers in Canada and Russia. The project's thick, high-grade potash seams, proximity to coastal ports, and access to low-cost natural gas all contribute to its competitive cost structure.

Millennial Potash is fast-tracking Banio's development, aiming to complete a definitive feasibility study and secure environmental permitting by the end of 2025. To de-risk the project, the company is employing a dual-track approach: preparing for mine construction while simultaneously engaging potential strategic investors and acquirers. The near-term goal is to secure a significant strategic investment to fund the feasibility study, which could come from a private equity group, development finance institution, or off-taker.

The company is led by a highly experienced management team with a proven track record of successfully developing and monetizing potash and lithium assets. Chairman Farhad Abasov and the core team have worked together for 17 years, delivering impressive returns for shareholders. Their expertise in efficiently advancing projects, demonstrating value, and negotiating favorable exit transactions positions Millennial Potash for success.

Gabon's mining-friendly jurisdiction and geopolitical neutrality provide Millennial Potash with flexibility in choosing financial and strategic partners from both Western and Eastern countries. The government has shown strong support for the Banio project, with the President himself visiting the site.

As global food demand rises, driven by population growth and changing diets in developing countries, the long-term outlook for potash remains robust. Millennial Potash is well-positioned to capitalize on this opportunity with its large, low-cost asset in a stable jurisdiction. 

Learn more: https://www.cruxinvestor.com/companies/millennial-potash-corp

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

Interview with Gregory Martyr, Executive Chairman of Capital Metals PLC

Our previous interview: https://www.cruxinvestor.com/posts/capital-metals-aimcmet-high-grade-mineral-sands-projects-path-to-production-5632

Recording date: 5th December 2024

Capital Metals is making significant progress on its Eastern Minerals project in Sri Lanka, which stands out as one of the highest-grade undeveloped mineral sands projects globally. The project boasts an impressive resource of 17.2 million tons at 17.6% heavy minerals, significantly above industry averages.

The company has recently revised its development strategy to accelerate the path to production, implementing a reduced capital expenditure plan that targets first production in the first half of 2026. The initial Stage 1 development requires a modest capital investment of US$20.9 million, with construction expected to take just 9-12 months once the final investment decision is made in Q2 2025.

The project's economics are particularly attractive, with payback anticipated in less than one year of production. The processing method is straightforward, utilizing simple gravity separation and water, without the need for complex chemical processes. This simplicity contributes to the project's low operating costs, further enhanced by the near-surface nature of the mineralization and minimal strip ratios.

Financing discussions are progressing well, with the company pursuing offtake-linked arrangements. Capital Metals is targeting US$10 million in pre-payments from potential customers, representing less than half of the total required capital expenditure. Importantly, the company does not anticipate needing to issue equity to fund the initial development.

The project is fully permitted, with an approved Environmental Impact Assessment and two mining licenses in place. Recent political changes in Sri Lanka have created a more favorable operating environment, with a new pro-business, anti-corruption government taking office.

Significant upside potential exists beyond the current resource. The company believes it can at least double the resource size through upcoming drilling campaigns, with early exploration work indicating mineralization extends well below the water table. Additionally, lowering the cut-off grade from 5% to 2% could substantially increase the resource while maintaining attractive margins.

The current project valuation shows considerable upside, with an estimated NPV per share of 36 pence compared to the current share price of around 2 pence. Despite current cyclical weakness in mineral sands prices, the project's high-grade nature positions it in the lowest cost quartile of global producers, ensuring strong margins even in challenging market conditions. As the mineral sands market faces potential supply challenges in the coming years, Capital Metals appears well-positioned to help fill this gap with its high-grade, low-cost operation.

View Capital Metals' company profile: https://www.cruxinvestor.com/companies/capital-metals

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

Interview with Gavin Ferrar, CEO of Central Asia Metals PLC

Recording date: 4th December 2024

Central Asia Metals (LSE:CAML) offers investors a compelling opportunity in the base metals space. The company owns two low-cost, cash-generating assets: the Kounrad dump leach copper project in Kazakhstan and the Sasa lead-zinc mine in North Macedonia.

Kounrad is a unique operation that reprocesses old Soviet-era waste dumps to extract copper. This allows CAML to produce copper at industry-leading costs, with a remarkable 72% EBITDA margin. The asset is expected to continue producing 13,000-14,000 tonnes of copper cathode annually until 2034.

In 2017, CAML diversified its portfolio by acquiring the Sasa underground mine for $400 million. Sasa provides a steady stream of lead and zinc production, with the concentrates sold to nearby European smelters. This geographic advantage reduces logistics risks and costs compared to mines selling to Asian markets.

CAML's strong financial position is a key differentiator. The company has $56.3 million in cash, no debt, and generates free cash flow around $30 million for the first half of the year. This allows CAML to fund growth initiatives while returning cash to shareholders through a generous dividend policy. The current dividend yield stands at an attractive 12%.

Management is focused on growth through disciplined acquisitions. CEO Gavin Ferrar and his team are actively seeking opportunities to add assets that can contribute $50 million in EBITDA. While they have reviewed numerous projects, they remain selective to ensure any deal meets their strict investment criteria. CAML's technical expertise and strong industry relationships give them an edge in identifying and executing on the right growth opportunity. With a supportive shareholder base and ample financial firepower, the company is well-positioned to create value through accretive acquisitions.

Operationally, CAML is implementing initiatives to future-proof its assets and maintain its cost advantages. At Sasa, new mining methods and tailings management practices are being introduced to improve efficiency and reduce environmental risks. Kounrad continues to deliver steady, low-cost production.

The outlook for base metals, particularly copper and zinc, remains favorable. Copper is a critical component in the global transition to clean energy, while zinc benefits from steady demand in the steel and construction industries. CAML's portfolio provides direct exposure to these positive demand drivers.

In summary, Central Asia Metals presents a balanced investment proposition. The company's existing assets generate strong cash flows and industry-leading margins. Management's disciplined growth strategy and operational excellence initiatives offer additional upside potential. With an attractive dividend yield and exposure to key base metals, CAML is a compelling consideration for investors seeking both income and growth in the mining sector.

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

Our previous interview: https://www.cruxinvestor.com/posts/amex-exploration-tsxvamx-upcoming-mre-and-pea-for-high-grade-perron-gold-project-in-quebec-5492

Recording date: 5th December 2024

Amex Exploration (AMX) is advancing a standout high-grade gold project in the prolific Abitibi region of Quebec, Canada that boasts robust economics, significant exploration upside, and a clear path to production.

The recently published Preliminary Economic Assessment (PEA) highlights the project's potential to be a profitable standalone mine, with 594,100 of measured and indicated ounces of gold at 4.28 g/t and 1,049,650 of inferred ounces at 3.80 g/t. The unique combination of size and grade enables a low-capex, high-margin operation, with initial capex estimated at just $230 million and life-of-mine all-in sustaining costs (AISC) at $807 per ounce.

The PEA outlines robust project economics including an average annual production of 124,000 ounces of gold for years 1-5 of a 10 year life of mine. At $2,000 gold, the after-tax IRR is 40.2% with a quick 1.8 year payback. The project boasts a $133 million in average annual free cash flow, or $1.33 billion over the life of mine.

While the PEA is already attractive, Amex sees potential to further enhance economics through near-term exploration. The deposit remains open in all directions and Amex plans to ramp up drilling in 2025 to grow the resource, targeting areas within the current resource that have seen limited drilling to date. CEO Victor Cantore believes this offers the best return for shareholders, stating he "would love to put out a new PEA and resource in late 2025" and that he'd "rather spend $6-7 million finding new zones, finding another high grade zone" as that's "how you're enhancing value for shareholders."

In parallel, Amex is advancing permitting and environmental baseline work to further de-risk the project. The permitting process in Quebec typically takes 2-3 years, putting Amex on track for a production decision by late 2025.

With its high-grade resource, robust economics, exploration upside, and visibility to production, Amex stands out in a market where profitable ounces are increasingly scarce. The Abitibi region's world-class infrastructure, skilled labor, and low-cost renewable power further strengthen the investment case. As gold miners contend with rising costs and grades, Amex is well-positioned to attract investor interest and surface shareholder value.

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

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